Our History - The Ecos Odyssey
Ecos Corporation began in a living
room in Sydney, Australia, in the mid-1990s. Today
it's a global leader in a rare field for consultants:
'business strategy' for large corporations seeking
to integrate sustainability into everything they do.
Our team is a virtual company working extensively
in North America, has global expansion plans and stays
connected in a blaze of email traffic, cross-planetary
conference calls and frequent flyer points.
The Story Begins
The Early Days
Challenging
Times
The Balancing
Act
Get Growing or
Get Out
The Pace Picks Up
Arriving in
America
The Vision Grows
The Odyssey Gains
Focus
Where to from Here?
The Story Begins
'Activist in a suit' was the headline waiting to
be written when Paul Gilding became a corporate consultant.
The young Australian's personal reinvention followed
back-to-back stints running Greenpeace in Australia
and then internationally as Amsterdam-based Executive
Director. Gilding had wanted to engage more with the
business world to enlist its help in driving a global
environmental rescue. Others in the hierarchy of Greenpeace
- the planet's number one activist group - were not
so ready to embrace the corporation to drive change.
Gilding was ousted. He had something to prove.
Days after being forced out at Greenpeace, Gilding
addressed a conference of business leaders in Zurich.
He spoke as a long-time social change campaigner -
but one no longer shackled by Greenpeace correctness
circa 1994. His optimistic topic was 'The Role of
Enterprise in Creating a Just and Sustainable Society'.
"Business faces the exciting opportunity to redesign
itself into being a positive force for society, leading
the way forward from the social and ecological crises
we presently face," he concluded. "It is an opportunity
to release the enormous positive human energy we need
if we are going to turn the situation around.
" The student radical turned global activist had become
enchanted with the potential for business to save the
world, highlighting its power, its adaptability and
its positive culture. The big question, then and still,
was whether business was ready to take up the challenge?
After taking stock of his life, Gilding and his partner
Michelle Grosvenor established the firm that is now
Ecos Corporation, initially in partnership with a
British-based consultancy group, Paras. Their first
office was their new living room in the Sydney suburb
of Birchgrove, half a world away from Amsterdam. It
was 1995. The Internet was just starting to attract
serious attention beyond the cloistered worlds of
academics and computer nerds. The 'new economy' was
still in gestation. The United Nations climate change
summit in Japan's ancient city of Kyoto was still
two years off. Around the developed world the environment
had slipped down the political priority list after
the fervour of the late 1980s and culminated in the
Earth Summit in Rio de Janeiro, Brazil, in 1992.
In Australia, as Gilding hung out his new shingle,
business was lagging well behind North America and
Europe in terms of environmental awareness and commitment
to eco-efficiency. As for global warming, Australian
industry appeared to be in fully-fledged denial. Sustainability
- and the notion that corporations should focus on
the community's social and environmental values, as
well as hard-nosed financial value - was nigh on invisible
on the national corporate agenda. While there was
talk about post-Rio commitments to ecologically sustainable
development, ESD, everyone had their own ideas about
what this meant. Environmentalists stressed the 'E'
for ecological sustainability, while corporations
pushed the 'D' for sustainable development.
Few companies, if any, were prepared to walk the
talk. In this climate, Paul Gilding was trying to
make the leap from being commodore of the protest
boat fleet to boardroom insider. Who would hire him?
Would anyone? And what would he deliver?
The Early Days
For the first few years the fledgling business often
struggled to sell the sustainability message. Post-living
room, the headquarters became a former church in an
inner city suburb, with a big snooker table in the
back room. Staff came and some went, with key figures
including expatriate Americans Graeme Mawer and Robin
Roy, and South African ex-banker Mark Lyster, who
became a pioneer of Ecos' ongoing quest to build the
business value case for sustainability. The new company's
own balance sheet ebbed and flowed.
There were a number of significant clients, though
rarely enough, and some notable successes. Ecos helped
Western Mining Corporation to produce the Australian
mining industry's first major environment report,
and also guided Placer Dome Asia Pacific's emergence
as a sustainability leader in gold mining. It conceived
the idea of making the Athletes' Village for the Sydney
2000 Olympics - called the Green Games - into the
world's largest solar suburb. It also created the
blueprint for an historic forest peace deal in Queensland,
involving the cooperation of industry, government
and environmental groups to move logging out of old
growth forests and into plantations by 2025.
During 1997 Paul Gilding looked overseas and began
to foster his most significant and most enduring client
relationship - with the DuPont Corporation in America.
In DuPont he saw the potential to work towards a truly
sustainable corporation in the 21st century,
creating an 'icon of achievement' that would guide
and encourage other corporations to change as well.
For Gilding, DuPont's 'miracles of science' corporate
slogan and its vast scientific resources make it a
company that can create solutions for problems, rather
than just create problems. He bonded closely with
Dr Paul Tebo, DuPont's safety, health and environment
supremo, who has spearheaded its goal of zero waste,
zero toxic emissions and zero workplace safety incidents.
The 'hero of zero', as Tebo has been dubbed, is a
leading global figure in sustainability circles.
Gilding's own international profile was growing too.
One of the keys to the Ecos modus operandi
is his personal ability as a communicator. Being heard
and being noticed were two of the great challenges
that confronted the fledgling consultancy. But Gilding
found a voice that resonates with business leaders
in North America, Europe and Australia. He built trust
that despite his radical origins, he could both maintain
high-level confidentiality and give the advice corporations
need to hear, as opposed to what they liked to hear.
His advocacy for sustainability is couched in language
that business can relate to and his prescriptions
for action can engage even business leaders. In the
frontline of the battle to convert business to sustainability,
that ability to translate is crucial. It means converting
ideas into words, words into action and passion into
pragmatic progress.
Two years after he founded Ecos Corporation, Gilding
was awarded Tomorrow magazine's Environmental
Leadership Award. The small, but influential global
environment business publication applauded a dynamic
young newcomer to the consultancy business, having
found him to be 'both convincing and an easy man to
like'. "You can't deny business its roots," explained
Gilding to the magazine. "It has to have growth and
profit to succeed against its competition in society.
If you want to make it do something different, then
make it more profitable for business to do good things
or less profitable to do bad things."
Challenging Times
As his profile with business grew, Gilding had to
contend with tensions in the world of activism that
he had left behind. The former head of Greenpeace
International working with a company like DuPont -
once a contender for the title of 'world's biggest
polluter' - was always going to be a provocative image,
regardless of the progress DuPont was making towards
embracing sustainability issues. And working with
other clients like mining companies and the Queensland
timber industry inevitably raised questions about
Ecos Corporation's credibility. Gilding admits to
times of doubt. "Our first crisis was in 1997," he
says. "There was a lot of financial pressure and morale
was challenged by people leaving. There was a sense
that it just was not going to work. There was little
or no respect for us with the NGOs. We had lost friends
and we came from that community."
Then, at the start of 1998, the mood changed as a
new recruit came on board. Alan Tate, Australia's
most respected environmental journalist, left his
high profile job with the national television broadcaster
to join Ecos Corporation. "Both NGOs and business
thought it was important that Alan had joined. He
was a climate change expert and a highly credible
figure. From a business and morale point of view it
was a very powerful and significant point for us in
our development."
When Tate wanted to leave journalism to engage directly
in the battle for sustainability, he found that his
options were very limited. "At that time Ecos Corporation
was really one of the few places in the world to go,"
he says. Tate had covered the Rio Earth Summit in
1992 and then watched the international enthusiasm
evaporate. At the report-back on Rio+5 in New York
in 1997, he witnessed world leaders admit that environmental
problems had escalated in the face of international
inaction and then fail to agree on a better way forward.
"I decided that governments would not lead us towards
the solutions," says Tate. "That it was too much to
expect that governments alone would create the fix.
At the same time, there were clear signs that business
was seeing opportunity at long last in solving environmental
problems. Ultimately, business does have more self-interest
in the solutions than governments might," he says.
"And business can take a long-term view. Becoming
a global brand like a Nike or a McDonald's is fraught
with danger. But becoming a global brand in partnership
with the global community provides both strength and
security." There are dangers, however, and leadership
requires courage. "We frequently advise companies
that if you seek leadership in this area that you
have to do extraordinary stuff," says Tate. "That
frequently requires you to do new things - set precedents,
create icons and do things that are memorable. That
also requires bravery."
Understanding the challenges and
opportunities arising out of the transition
from the old, polluting industrial economy
to a new, cleaner knowledge economy is
a core area of Ecos Corporation's client
work. This is taking the firm further
and further away from its environmental
origins, and deeper into a broad role
advising on business strategy to integrate
social, environmental and economic priorities.
Ecos Corporation has identified six drivers
of the new economy:
Globalisation: The globalisation of the
economy, the values and expectations of
which have already led to a far more competitive
and fast moving economy, will in the future
lead to even more dramatic shifts.
Sustainability: The recognition of the
economic, security and human threats posed
by ecological change and social inequality,
along with recognition that the changes
needed to address them are as daunting
as they are crucial to our future health
and prosperity.
Connectedness: The way individuals are
connected and communities are created
through new technologies, economic forces
and the media, and the implications for
how change occurs and how risk is created
and managed.
Retreat of Government: The changing and
decreasing role of government in a globalised,
fast moving, connected economy, and the
way it will adapt to the challenges posed
by globalisation and the rising power
of transnational corporations.
Victory of the Market: The way liberal,
market-based democracy has become the
dominant way to organise society, with
all its implications for the role of the
market, the power of corporations and
the societal expectations of corporate
performance.
Rise of Civil Society: Coupled with the
victory of the market, civil society is
evolving into a connected yet distributed,
powerful and market-making/breaking force.
As such, it can hold corporations globally
accountable, especially via activist NGOs.
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The Balancing Act
Operating between the often opposing worlds of business
and NGO-style activism can be like walking a tightrope.
But it's a balancing act that Ecos Corporation has
maintained in its push to drive change through corporations
by helping them convert society's values into business
value. To this end, Ecos Corporation has always needed
to work with both business people and NGOs, often
bringing them together to seek constructive ways forward.
The clients, however, rarely become any less challenging
in terms of their industries' traditional impacts
on society and the environment. Among Ecos' clients
was Pacific Power, a major electricity generator.
In their 1998 strategic research, Mark Lyster and
another Ecos Corporation recruit, Gabby Greyem, led
the company into working on sustainability issues
with Australian cotton growers, one of the world's
most controversial crops.
Ecos Corporation also began working with a joint
venture between Canadian oil and gas producer, Suncor,
and Australia's South Pacific Petroleum (SPP). Suncor/SPP
wanted to mine vast shale deposits on the Queensland
coast, opposite the World Heritage-listed Great Barrier
Reef, to produce oil. This project became a major
target for Greenpeace, based on its projected impact
on global warming, and came to pose the most serious
challenge of all to Ecos' relationships in the world
of activism. (The Ecos Corporation contract with Suncor/SPP
was ended by mutual agreement in 2000. A year later
Suncor withdrew from the joint venture, paying a $7
million exit penalty and leaving a large question
mark hanging over the project's future viability.)
Towards the end of 1998 Ecos Corporation made another
key appointment, and one that was likely to ignite
new doubts in parts of the activist world. Ben Woodhouse
wanted a second life and a second career when he retired
from Dow Chemical after 33 years, so he relocated
himself from America to Australia. A toxicologist
by training, and a businessman by inclination, he'd
risen to the position of Vice President for Global
Issues and Crisis Management at Dow.
Sustainability was a theme that Woodhouse learned
- and in a real sense helped to pioneer - as he, the
renowned David Buzzelli and others steered Dow back
towards a degree of community acceptance. Beyond Dow,
he helped to start US President Bill Clinton's Council
on Sustainability, and the World Business Council
for Sustainable Development, making him a genuine
leader in the field. In their former lives, Paul Gilding
and Ben Woodhouse were more likely to be on opposite
sides of a stoush. Gilding had led a Greenpeace that
excelled at inflicting 'significant emotional experiences'
on recalcitrant companies - or exploiting self-inflicted
ones - while Woodhouse had to manage the fallout in
such circumstances and avoid any repeats. At Ecos
Corporation, a belief in sustainability and the potential
for the market to be mobilised towards it brought
them together.
Get Growing or Get Out
Expanding and prospering is a constant issue for
Ecos Corporation as well as its clients. In spite
of its significant early achievements, in 1999 Ecos
Corporation had to question its own future. Success
was coming as strategising for sustainability entered
the business mainstream, especially in the US. But
the challenge of the Ecos Corporation mission to change
whole companies and industry sectors demanded new
skills, new people and even greater commitment. The
choice was to grow or get out and Ecos Corporation
voted for growth. The old church was left behind as
Gilding, Tate and Woodhouse moved to the Sydney CBD,
with views of the city's spectacular harbour. They
farewelled Mark Lyster, who moved on to head up PricewaterhouseCoopers'
emerging sustainability practice in Australia, and
welcomed Cath Bremner, the quintessential 'bright
young thing' from McKinsey and Co.
Bremner was looking for "something" and over time
found herself being transformed into an activist -
though one with a sharp sense of what business demands
from its advisers. Her transformation from McKinsey
to Ecos Corporation happened as she rubbed shoulders
and intellects with former activists, tackled burning
issues like genetically modified organisms in food
crops and products, went into the streets of Seattle
during the landmark riots that shut down the World
Trade Organisation meeting at the end of 1999 and
launched a series of angry anti-globalisation and
anti-corporate protests that are still running.
In the second half of 1999 Ecos Corporation underwent
a growth spurt. Other recruits included Rick Humphries
and Sheena Boughen, who both knew Paul Gilding well
from their days together in Greenpeace, and Murray
Hogarth, a former environment editor at the Sydney
Morning Herald and a journalist with 21 years experience
in television and print. The challenging client list
grew too, with resources giant BHP retaining Ecos
Corporation to help it engage the environmental and
social NGO community over its disastrous mining experience
at the Ok Tedi gold mine in Papua New Guinea. The
main problem was the contamination of rivers caused
by tailings from the mine. The job was a classic example
of stakeholder engagement, aiming to turn a crisis
situation into a constructive dialogue on how BHP
could withdraw from the mine project while also making
provisions to compensate villagers and restore the
environment, and ensure that the same mistakes would
not be made again at future mine projects.
The Ecos balancing act was proceeding apace, especially
with Rick Humphries joining the company after more
than a decade filling high-level strategy roles with
Australian and international green groups. For years
he had been entertaining a "sneaking suspicion" that
traditional activist tactics were running off-track,
so finally he declared himself ready to try working
with corporations instead of against them. "Unless
we try something radically new we are buggered," says
Humphries, with characteristic bluntness. "Clearly
governments and the Left wing view of the world have
failed. Our economic behaviour is what got us in trouble.
Unless we change that and make corporations a force
for doing good things, then there is no hope." He
says he is "beyond ideology now", explaining: "I am
a social ecologist, I suppose."
Humphries' passion is a palpable force, especially
in a room full of business client representatives
who have always lived their lives shielded from 'greenie
activists', only to now be confronted by a born-again
believer in the power of free enterprise. (Admittedly,
even corporations frustrate Humphries for being too
slow to act decisively.) He mixes passion with sharp
strategic thinking. His focus is turning overwhelmingly
towards the five-sixths of the world's population
who don't share the wealth and lifestyle of the high-consuming,
heavy-polluting one-sixth who live in the First World
countries, and Ecos shares this focus as a key direction
for the years ahead.
"The 'five-sixths' is a huge thing that is emerging
for the corporates," says Humphries, who sees this
marketplace as being critical to the survival of capitalism.
"We have to be more aggressive and up front and say
to companies, 'You guys all rely on a stable growth-oriented
system. You have to invest in elevating the five-sixths'.
Governments cannot do it alone, and nor can NGOs.
Business has to change its culture. They have to keep
pace with what is happening in the real world. The
trick is to combine society's values with the vision
to create value."
Sheena Boughen expertise lies in cultural change
and organisational development. She's a teacher by
early profession and by instinct, though her classes
now are business professionals. Boughen's background
is as a dairy farmer on a quiet stretch of Australia's
eastern coast, and later a driving force in Udder
Choices, a community action group formed by women
in the dairy industry to oppose a government-backed
deregulation plan that has closed many farms. Since
joining Ecos, she commutes between the farm and Sydney,
and Sydney and the world to pursue her work on driving
change towards sustainability.
Many people assume, says Boughen, that achieving
change around an issue is about "getting the content
right". She believes that designing the content -
or the strategy - is the easy part. "The hardest part
is shifting people, their attitude and behaviour,"
says Boughen. "It's 20 percent content, and 80 percent
'what does it mean for how we act'. At Ecos we believe
in the strategy and we guide you. We give people the
tools, the motivation and the content so that they
can do it themselves. If you no longer need us, then
you are succeeding at change." Her key focus is on
"action learning". Every lesson is based on a real
project, whether small, medium or large. The old maxim
that 'seeing is believing' holds true in business
as much as anywhere else. "If you have a community
of learners in the workplace, you have people who
are confident to ask questions and to change," says
Boughen.
The Pace Picks Up
Amid the millennium parties of 2000, the pace of
growth and change within Ecos picked up. On the Ecos
board, Paul Gilding's brother Tony - a veteran of
the business world rather than the activist one -
had been taking an increasingly active role in helping
to grow the company. They agreed it was time for a
Managing Director for the company.
Michael Ward had spent the past several years riding
the rise of the Internet, as Vice President for corporate
relations with Australia's biggest homegrown Internet
service provider, OzEmail. In that job, which included
responsibility for investor relations, Ward helped
OzEmail to grow from about 100 staff to more than
800, to survive the NASDAQ crash in the US, and to
be sold - at a windfall profit to early investors
- to the MCI WorldCom company, UUNET. The challenge
that he took on at Ecos was to achieve the growth
and internal business discipline that the company
needed, without losing the activist character it cherished.
Once again, growth also coincided with departures
of much loved members of the Ecos team. Kim Grosvenor
and Ben Woodhouse both left Ecos in the latter half
of 2000. But others were joining the frontline consultants
corps, and the backroom research and support teams,
including a number of longstanding part-time Ecos
employees who became full-timers. The new team members
included Justin Sherrard, an Australian returning
home after a stint in London with big global environmental
consultancy group ERM, another Greenpeace veteran
Blair Palese, researcher and environmental engineer
Simon Cornell, knowledge manager and website whiz
Sandra Davey and several others.
At the same time, Ward and Gilding were preparing
the company for the development of a US-based team.
At a company retreat the Australian team had agreed
on a dynamic five-year growth strategy, one that relied
heavily on working with American companies. The starting
points were Ecos' expanding relationship with DuPont
and a major new client, the Ford Motor Company, which
was being driven to embrace the sustainability challenge
by its new chairman Bill Ford jr., the great-grandson
of the iconic American industrialist, Henry Ford.
As well as recruiting employees, Ward began looking
for alliances with other organisations, ones that
share Ecos' values and commitment to change, as a
way to extend its reach quickly. When major expansion
into the US was first contemplated, a central office
was envisaged with Washington, DC a possible location.
But Ecos wanted the best, most committed people -
and most of them are committed to living where they
want to live. "I came strongly to the belief that
having a central US office is not conducive to having
the best people," says Ward.
So in America the people of Ecos live in Boston,
Wilmington and Washington. In Australia they are spread
out as well, meaning the Sydney office is becoming
the hub for people dotted across two continents.
Arriving in America
The Ecos American build-up began quietly, early in
2000, with Gilding hiring MBA graduate Erik Simanis
as a part-time assistant to develop Ecos' intellectual
property. Simanis, an outstanding student under sustainability
guru Professor Stu Hart at the University of North
Carolina, had focused his studies on sustainable enterprise.
At Ecos, he was assigned to making a case for sustainability
that the world of business will both understand and
accept.
Then in late 2000 and early 2001 there was an explosion
of personnel growth in the US, as well as more recruiting
in Australia. It was clear that those joining would
bring a rich diversity of new experience to Ecos,
while sharing the company's passion for driving change.
Those signing up with Ecos in full- or part-time capacities
included:
Sam Weiss was appointed as a new member of the Ecos
Board of Directors in May 2001.
Having invested in people, Ecos was now ready to
pursue more clients.
The Vision Grows
Today Paul Gilding still wears the memories of his
activist days on Ecos's corporate sleeve. A life ring
from the Rainbow Warrior, the protest vessel sunk
in New Zealand in 1985 by French spies at the height
of an anti-nuclear testing campaign in the South Pacific,
hangs on the wall of the Ecos head office as a memento
of his Greenpeace days. But he's learned a lot in
the years since, especially about how business operates
and how an activist-at-heart can deliver value for
clients while staying true to his own values.
Gilding's passionate belief that business can lead
the world to sustainable solutions has proved to be
infectious. His own vision has grown. Like-motivated
and similarly minded individuals have gathered around
him, forging a team drawn from the ranks of high-level
environmental and social activism, industry, finance,
the corporate advisory world, information technology,
environmental consulting and journalism. Other bright,
talented people with a commitment to sustainability
look to Ecos as one of the few places in the world
where they could combine their passion with a career.
For its people, Ecos has become both an adventure
and a deep responsibility.
The company is hardly alone among small businesses
in having its ups and downs, at times struggling to
survive in a difficult marketplace, then bouncing
back to prove that selling sustainability strategies
to corporations can be done. For its true believers,
there's no room for failure. "We are, like it or not,
a very important symbol to many people who care about
sustainability," says Gilding. "It is very important
that we run this business well. We have an obligation
to the world to show that you can get this right."
In April 2001 some 20 Ecos employees and close affiliates
gathered in Sydney for the company's first 'Odyssey'.
They came from the US, Europe and from up and down
the east coast of Australia. Many of them were meeting
for the first time and for some it was their formal
induction into Ecos. During the group's meeting, strong
consensus emerged around a combination of Ecos values
and value, with the theme of driving change being
paramount:
- Who Are We? We are Ecos, people motivated
by our values and our mission to drive change towards
sustainability. We are optimistic and having fun,
but in a hurry.
- What Do We Do About It? We focus on value
as the most powerful way to initiate change in business,
and on mobilising people's passion - driven by their
desire to lead meaningful lives - as the way to
accelerate that change.
- Who Will We Work With? There are no ideological
constraints. But there are a whole lot of judgments
that need to be made and we will only keep working
with clients who show genuine commitment to the
change we seek.
- What Do We Believe? That the human species
is facing its greatest ever challenge - potential
demise or the transition to sustainable economic
and cultural growth. And that human thoughts and
actions are constrained by artificial borders: between
business and the community; between values and value;
between humans and their environment; between the
economy and the eco-system.
On the third day of the Odyssey, Gilding had a business
revelation that harkened back to his activist origins.
"We really are a campaigning organisation," he said.
"We exist to drive change. The reason why activism
works is because you say 'whatever it takes to get
it done, we will go and do it'. We need to help our
clients to change. That is our campaign." The concept
immediately captured the mood of the room.
It's a powerful idea. But there's no doubting the
size of the task involved in translating that campaigning
spirit into successful client relationships, and into
business success for Ecos itself. Activism is scary
enough for corporations when it's on the outside,
so on the inside it can be terrifying. One former
client told Gilding that letting his ideas loose inside
a corporation was like unleashing a virus. But others
have been more than willing to embrace Ecos and its
mission of inciting corporate activism, allowing Gilding
and his growing team to test their thinking, to apply
their skills and to let their passion run. "I think
the campaign virus has been unleashed by the last
few days," Gilding noted in the closing minutes of
the Odyssey.
The Odyssey Gains Focus
In the world at large, much has changed since Paul
Gilding began his Ecos odyssey back in 1995. Public
concern for the environment and social justice is
again on the rise around the planet, although action
by governments, corporations and people everywhere
still lags far behind what is needed to make real
progress towards sustainability. Activism also is
on the rise, some of it angry, even anarchic. In mainstream
business circles the terms 'corporate governance',
'corporate responsibility', 'corporate citizenship'
and 'corporate sustainability' are all being used
widely, even in Australia, though it still lags behind
Europe and North America at the big end of town. Ecos
has played a modest role in promoting the change that
has already occurred, but hungers to do far more.
"We talk value and we talk business," says Gilding,
identifying why he believes Ecos has achieved what
it has. "Our reputation is that we understand value.
That is the most powerful thing that we have ever
done. We are also a client-focused company. That is
what we exist for; to generate value for our clients
and through that drive change." In many ways, his
faith that business, not government, will be the crucial
force that will drive sustainability in the 21st century
is being borne out. Many in the activist world that
rejected Gilding and his ideas eight years ago are
now focusing their campaign efforts on corporations,
rather than governments, precisely because they now
believe that this is the fastest way to drive change.
Sometimes they punish and sometimes they engage constructively,
but it is now the corporations, their brands and their
markets that are the main game.
After the Odyssey, Ecos, like many companies with
the majority of their business in the US, were impacted
by events post-September 11, 2001. Our client work
continues there but, as expected, businesses have
been cautious about spending and Gilding and the Ecos
team had to be realistic about how long it will take
to return to a time when sustainability would be back
on the corporate agenda.
In order to protect the business and plan for the
future, Gilding and the Ecos Board made the difficult
decision to cut back on full-time staff and overheads
and focus on growth in 2002. A number of Ecos staff
members have become contract associates working on
specific Ecos projects in the US, Australia and internationally.
Others, including Michael Ward, have left the company.
In a combination of a number of roles, David Truran
has joined Ecos as its General Manager and Chief Financial
Officer. A second Odyssey with remaining Ecos full-time
staff took place in Sydney in late 2001 with a plan
for growth and a strengthening of the company's focus.
Alan Tate and Justin Sherard have formed their own
Australian-based consultancy - Cambiar - and work
with Ecos as associates. And in a strange twist of
fates, Mark Lyster, who left Ecos to work for PwC
in Sydney, has returned to Ecos as an associate. Additional
associate relationships are being developed in the
US as well. The associates structure allows Ecos to
continue to work with some of the best sustainability
experts internationally but allows the company some
financial and time-commitment flexibility that will
help it move forward in the current economic climate.
Where to from Here?
In the final synopsis, the Ecos approach is defined
by the phrase 'values to value'. Gilding's focus on
value doesn't repudiate the need for corporations
to provide benefits for society, as well as their
shareholders. He simply argues that all actions taken
in the name of sustainability should ultimately translate
into shareholder value, and that this can be measured
in traditional areas like margin improvement, risk
reduction, capital efficiency and growth enhancement.
If societal value is not being created as well, then
the business model won't be robust enough to survive
in the longer term, and value will cease to flow to
shareholders. At that point a corporation is in danger
of losing its capacity to change anything, its own
fate included.
"Sustainability strategies will not be successful
or sustainable unless they deliver shareholder value,"
says Gilding. While this may seem obvious, it is often
a focus missing from debates around strategy in this
area. We argue it should be front and centre - that
the potential to generate shareholder value or not
should be the key criteria in making decisions on
the right strategies to follow in the pursuit of sustainable
growth. This is campaigning. We're here not just to
come up with ideas. The world doesn't need any more
ideas on sustainability. We need to provoke a debate
in which they get adopted and acted on!"