The world is accelerating toward 10 billion inhabitants, and the planet is facing ever-growing resource challenges. Educated business executives see today’s socio and environmental problems such as the UN Sustainable Development Goals (SDGs) as well as the Global Economic Forum’s annually released report on its impact report–not just as risks that need to be controlled and controlled but also as potential strategic opportunities that need to take advantage of. They are breaking new ground while seeking the perfect “win-win” solutions. But what happens to other issues?

From stakeholder to shareholder

With regulators, investors, employees, and consumers seeking to know more about the businesses are doing to incorporate sustainability, social, and governance (ESG) methods within their businesses, The most pressing question today is, how? How can companies shift from a focus for decades on profits in the short term and shareholders’ worth (shareholder capitalism) in favour of a long-term “shared” value model (stakeholder capitalism) and the potential it holds for prosperous and inclusive growth?

The answer is in educating future leaders on the importance of a comprehensive, system-focused stakeholder-based business approach. This is a unified management system driven by a defined goal. Strategy and procedures are considered through the lens of sustainability, and organizational culture is designed to be inclusive and engaging. At the same time, ethical and genuine behaviour is encouraged and recognized. The organization’s performance is not only measured based on profit and loss. However, it is also measured by the impact on society and the environment. Simple to state, difficult to implement.

The solution lies in teaching the next generation of leaders an integrated system-thinking, stakeholder-oriented strategy for business.

Read more: Sustainable Business Leadership Starts With Education.

Managers have grasped the benefits of business of taking care of environmental issues, like cutting carbon emissions, using less water and pursuing alternative energy sources. Still, it has been harder to grasp the “S” and “G” of the ESG framework. Yet each is essential for achieving real sustainability and building their brand’s value. In a world where reputations are built and erased in just a few minutes, is the quest to reduce labour costs ever more effectively leading to labour and human rights violations? Is the water used in supply chains robbing communities of their water supply? What can an administrator do to find out? Once they know, how can they be able to correct it?

Sustainability is a key component of the process of learning.

Since its inception, Hult has been committed to the transformational impact of business on the world; Hult builds on our approach to learning through experiential methods and unique perspectives to assist executives worldwide in understanding this crucial issue. Our newly launched Master’s in Sustainability with EY challenges students to consider the multidimensional sustainability factors–economic, political, environmental, and social–and the interconnectedness of multiple stakeholders as they strive to create value. Students are taught to incorporate ecological and social considerations in their decision-making process and complex supply chains. By doing this, it reduces the chance of unintentional negative consequences and the risk to reputation while increasing their innovation capacity and discovering new opportunities in the market and ultimately gaining competitive advantages. The key frameworks are discussed, for example, those of the UN Global Compact and ESG indicators, in addition to innovative business models like design thinking and circular economies, which require executives to reconsider the way they conduct themselves, how the products are developed and utilized and the best way to quantify the value of their products in a meaningful way

Students are taught to incorporate the environmental and social aspects into their decision-making strategies and intricate supply chain.

Employing Hult’s signature method of learning through doing teaches students to focus on the Sustainable Development Goals – which were set at the UN in 2015, to create more equitable economies. They then apply the skills they’ve learned to identify potential for strategic growth. It could be developing a nutritious, low-cost yogurt that addresses the issue of malnutrition in children, training women from rural communities to become the most trusted channel for sales, or setting up coding classes in the developing world to transform people who are largely untrained into the next technology workforce. They will be inspired to think differently when seeking a competitive advantage and value.

Capitalism reinvented

It’s business ingenuity that is at its finest, generating novel products and innovative methods of working that change people’s lives and their livelihoods, as well as producing revenue and reducing risks associated with changing the demographics of our society and the environmental issues.

Through a holistic approach and understanding the interconnectedness of the rest of it, those who complete a Hult EY Master’s Degree in Sustainability program will have the ability to create an integrated and purpose-driven organization that is aligned. These companies draw young people, build loyalty among customers, and give investors a chance to earn a profit — all crucial to sustaining growth. The degree will provide learners with a true career advantage, placing them among the leaders embracing this purposeful, forward-looking, and inclusive model for creating long-term value for all stakeholders–capitalism reinvented for the 21st Century.