Many things are debatable in the world of business. From how we meet our customers’ needs to how we improve the bottom line, there’s likely more than one route to get there. However, I believe all leaders can agree that an organization must have a solid foundation that provides resilience and stability in the face of the challenges all businesses confront. Sustainable business practices are the heart of this foundation. Yet, this concept and approach to business has been put under a microscope in the recent past.

Look beyond terminology

ESG (environmental, social, and governance) has become a polarized term—so much so that many businesses have stopped using the acronym for fear of alienating certain stakeholders. For example, research shows that in Q4 2023 earnings calls, S&P 500 companies used the term ESG significantly less than they had in Q2 2019. But regardless of what we call it—ESG, sustainability, stakeholder capitalism, or corporate responsibility—running a business responsibly and ethically for the long run is a good approach.

In fact, if we look at it through a pragmatic lens, sustainability reflects how a company does what it does, with a focus on customers, employees, broader stakeholders, and the planet. Sustainability is not an extreme concept, nor should it be controversial or polarizing. Simply put, it’s good for everyone involved.

Think for the long term: How sustainability helps fulfill our purpose

It’s important for companies to set attainable, long-term sustainability goals not only to establish a solid foundation, but to create a clear and well-defined path for a company’s future. The impact of sustainability goes far beyond the product or service a company provides; it ultimately helps to improve and maintain a company’s overall long-term success in several ways.

• Operating ethically: Companies should operate with responsible and ethical business practices, ultimately being guided by the company’s core values and mission.
• Empowering people: Employees are some of our most precious resources. Establishing a culture where everyone feels respected, valued, represented, and involved gets people to buy in to the larger purpose and bring everything they have to work every day.
• Taking care of the planet: We only have one, so let’s take care of it for future generations. Companies must commit to reducing their environmental footprint not only to help maintain important natural resources but also because we are so reliant on them and need them to operate in the future.

At Lilly, sustainability has been a vital part of our nearly 150-year history and overall purpose to unite caring with discovery to create medicines that make life better. It’s a miracle we’re able to create new medicines, but it’s a tragedy if we’re not able to get them in the hands of those who need them most.

What some may view as controversial, we view as the way we must operate in order to make medicines: Take care of the planet, create an environment for our employees to bring their best, work to get our medicines to patients, operate ethically, and be a positive member of the communities in which we operate. We view these sustainability topics as obvious, necessary, and nonnegotiable. No matter what name you put on it, sustainability allows us to do what we do—now and for generations to come.

Jim Greffet is the head of sustainability strategy at Eli Lilly and Co.