Good corporate governance and responsible business practice should be synonymous. Unfortunately, this is not always case. The truth is that Board attention often focuses too narrowly on financial controls and operational risks. Broader reputational issues relating to social and environmental aspects of the business remain low on the agenda – if they appear there at all.

So what needs to be done to help Board members understand and respond to the challenges and opportunities of sustainable development? In essence, there are three areas for action – individually these are unremarkable, in combination they are the hallmarks of a successful Board.

The first is the ability and willingness to think systemically. This means recognising that the company operates in a large, complex system and needs to interact in a web of relations with different stakeholder groups. This requires a delicate balance of dialogue and action with groups and individuals inside and outside the organisation. Business success and corporate reputation now depend on a company’s ability to balance competing demands and engage people in collective goals.

The second is getting access to the correct information. Too often systems for performance management, risk control and innovation are set in the current paradigm. They do not allow business leaders to explore “what if?” scenarios; what Donald Rumsfeld famously described as the “unknown unknowns”. Board members will only be fully informed when they are briefed to consider data on broader issues of societal expectations, environmental opportunities, employee motivations, long-term market trends and industry dynamics.

The third area for action is to ensure there is clear communications about sustainability across the company. Board directors need to be open and transparent about the strategic direction they want the company to take. They need to communicate clearly and simply on what they expect the business to achieve – both in terms of financial and non-financial goals. In particular, they need to engender a corporate culture that rewards actions that are consistent with the values of the company and the wider responsibilities of business.

Developing such an approach to corporate governance can be challenging. Placing sustainability at the heart of senior decision making does require new ways of thinking and operating. However, the evidence shows that the prize is worth the effort. Many of the companies we work with are led by Board directors who know that delivering increased profitability goes hand-in-hand with efforts to benefit society and the environment.