Closing the intention-action gap in corporate sustainability

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How organisations address climate and other governance risks (Environmental, Social, and Governance (ESG)) is now viewed as critical to the long-term sustainability and growth of any public or private sector business. Organisations often talk about intentions and actions, and the gaps between them, but what does this really mean?

Intention generally refers to the strategic goals, plans and visions that an organisation aims to achieve. It encompasses a CEOs aspiration, mission statements, and planned initiatives. Action involves the tangible steps, behaviours and operations undertaken to realise these intentions. 

Behavioural science research points to the fact that humans are naturally inclined toward immediate gratification, which can lead us to prioritise short-term rewards, regardless of our underlying attitudes, beliefs and values. This is what they believe has led to the Intention-Action Gap phenomenon.

The intention-action gap occurs when a person's or organisation's intentions, values or attitudes don't match their actions. This gap can occur in many areas, including sustainability, corporate social responsibility (CSR), and employee engagement. The intention-action gap can and does have negative consequences for businesses. 

If the gap is not narrowed, the consequences can lead to misalignment. Organisations who fail to narrow this gap may be taking the easy way out. They could be avoiding the effort, lowering the goal, making claims that they are on their journey to achieve the goal, but they don’t provide proof, produce reasons why the goal does not apply to them, or falsely claim goal achievement. 

The impact to organisations is vast when this happens, an organisation may suffer reduced competitive advantage, missed opportunities, and financial underperformance.  Employees may be cynical, which can impact higher turnovers due to demotivated employees. Customers may also suffer due to an organisation’s failure to meet service commitments, which can lead to lost business and damaged brand loyalty.   

The simplest and probably most effective approach to narrow this gap is to make sustainable behaviour the default option. 

A CEO’s role in closing the intention-action gap is to commit to the goal, and don’t give in to easy ways out. If there is a gap, accept it, but commit to closing that gap:

• CEOs require a compelling vision that connects the goal to a purpose. It is important to continually communicate the vision of the desired outcome and its impact on their sustainability goals. They must visualise the connection between the vision and the work done by their people and create a sense of accountability.
• A CEO needs to lead by example, invest in employee education/re-education and training, encourage innovation and creativity, and ensure sustainability are key considerations in all decision-making processes. This is where Pilotlight can help upskill staff to better understand the plight of environmental organisations and develop employees so they’re ready to take on the challenge of closing the action-intention gap and making their business more sustainable. Learn more about our offer here.
• The final thing a CEO can do to close the gap is to keep driving real progress towards the goal and motivate the organisation to follow through. Celebrate successes, encourage the organisation when times are tough, and push when goal complacency kicks in.  Reflection is also key, continually ask yourself whether you are focused on achieving your sustainability goals or on reducing the discomfort of not achieving your goals.

The problem with implementing the changes necessary to successfully transition organisations over the long term requires an abundance of short-term focus, agility and vision. 

This can lead CEOs seeing the appeal in greenwashing, as the bottom line may seem more important than enacting the sustainability practices they claim to support. 

Greenwashing can prevent sustainable practices from being embedded in corporate culture by creating a false impression that a company is already doing enough to protect the environment, which can discourage them from investing in more sustainable practices. Changing Markets Foundation found that nearly 60% of green claims made by 12 major brands were unsubstantiated or misleading. This makes it difficult for consumers, how can they distinguish between who is authentic and who isn’t? This in turn can erode trust in sustainability claims altogether made by businesses. 

The stakes around communicating an organisation’s sustainability track record could not be higher. 

Customers, investors and other key stakeholders are eager to engage and know more, and competitive pressure is high. There is a fine line, however, communicate too much, or in an unsubstantiated way, and reputational damage could be even higher - not to mention the risk of falling foul of regulators and the law.  Businesses need to understand how to tread that thin line, by understanding key sustainability principles, the legal definition of greenwashing and bluewashing, and practical examples of good and risky practices.

Sustainability needs to be ingrained in the culture of an organisation, from mission statement to values, business descriptions to job descriptions.  I would suggest that:

• CEOs and leaders review every challenge and opportunity with a sustainable mindset. You can make a positive impact on your employees, your customers, the supply chain or the environment itself by doing this.
• CEOs should also effectively communicate the importance of sustainability to all stakeholders, including customers, investors and employees. Doing so can create a shared vision for a more sustainable future and inspire action towards that goal.  Therefore, it is imperative that CEOs develop a comprehensive strategy, data-driven decision-making, collaboration with other stakeholders, and strong leadership to drive change.

Leaders who prioritise sustainability and inspire change can not only improve the bottom line but also make a positive impact on society and the environment.  By closing the intention-action gap, companies can enhance employee morale, customer satisfaction, market reputation, and overall business performance. CEO’s need to aim to provide actionable advice that their leaders and managers can implement to enhance their strategic execution. 

And if Pilotlight can upskill your staff and develop employees so they’re ready to take on closing the action-intention gap, making their business more sustainable reach out to us.