In the September issue of Harvard Business Review, authors Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami provide a framework for adopting sustainable practices to bring about technological and organizational innovations that will ultimately yield top-line and bottom-line returns, providing a competitive advantage when the recession ends. They feel that sustainable companies will emerge from the recession ahead of their competitors, who will face difficulties trying to catch up.

The authors argue that sustainability is not the drag on the bottom line that many executives perceive it to be, and that it can actually lower costs, and increase revenues. This is an indicator that business leaders will have to rethink business models, processes, technologies, and products.

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A couple of years after former Sierra Club President Adam Werbach founded  ActNow, a sustainable business consultancy, he signed up Walmart as a client. This brought Werbach considerable notoriety in eco-activist circles. Walmart’s record of environmental responsibility had previously been spotty, to put it mildly. Werbach retorted to his critics that Walmart, with almost two million employees and 127 million customer visits per week, had the potential to do far more to save the world than the Sierra Club ever had.

I had the opportunity to visit Werbach’s company (now named Saatchi S) in San Francisco and attend a staff meeting. The participants sat on the floor and passed around a plate of organic banana bread. Yet despite the trappings of informality, the conversation had a focus, drive and ingenuity about it that I had rarely experienced in the non-profit world.  The Saatchi staff certainly looked like the young, idealistic types whom I knew from environmental NGOs. But dropping a profit incentive into the motivational mix seemed to release a different level of creative zing.

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