Principles for internalising systems resilience into business management and value creation

Abstract

This article introduces principles for internalising the concept of social ecological systems resilience into business management and value creation. It is no longer enough for businesses to simply reduce their impact on the environment. Businesses need to refocus their strategies and management within the limits of their social ecological system, such that they not only create value for their immediate stakeholders, but also create value that enables systems resilience to be built and maintained. Resilience thinking shifts sustainability towards business operating within the limits of the social ecological system in which they exist so that business is able withstand disturbances and uncertainty in the light of global change. The intention of the principles is to improve the ability of integrated thinking and management within businesses; such that businesses expand the scope of the system for which value is created, beyond the organisation itself, to the broader social ecological system in which they operate. In light of global change, and the increasing complexity of risks with which businesses are faced, addressing the broader system is crucial in order for businesses to improve their adaptive capacity, and therefore to ensure their own long term sustainability. The principles include a systems principle, risk and adaptation principle, decoupling principle, restoration principle, well-being principle, collaborative governance principle, and innovation and foresight principle. Managers are encouraged to build these principles in their business strategies, governance, performance and integrated reporting. The principles are being developed into a maturity tool for easy application by managers.