A conversation about the future of business sustainability in Bulgaria and the pressing challenges faced by the highest levels of corporate management in our country was the main topic of the first edition of the business breakfast of the Bulgarian Network of the UN Global Compact on the topic "Corporate Sustainability and transformative management”.
The guest of the event was Antonio Hautle, Executive Director of the UN Global Compact in Switzerland and Liechtenstein, one of the leading Networks in Europe with over 350 member companies from over 30 industries. He introduced the concept of transformational governance – a principles-based approach whereby business operates in an ethical, inclusive and transparent manner, and adheres to due accountability. Unlike the usual corporate governance, where only existing regulations are followed, the transformative one is driven by the ethically correct, namely the integration of policies for the benefit not only of business and shareholders, but also of stakeholders and the societies in which companies operate.
“It's not just profits that are leading today, but ethical leadership and long-term sustainability. In the last 50 years, business has created enormous wealth, but today it has assumed the role of a balancer between ecosystems. While it sounds like a challenge, the real business opportunity for competitive advantage is to create new products and services because innovation leads to efficiency and effectiveness,” said Hautle.
Changing the debate
In the ensuing conversation, it became clear that preserving markets and shareholder profits requires changing the debate from business leaders, engaging stakeholders (including supply chains) and the public. At the core are the Sustainable Development Goals (SDGs), adopted by governments and businesses, which affect every single person.
In parallel, large companies should work through collective actions to support small and medium-sized businesses, which are the backbone of the Bulgarian economy, as well as to inform each individual about the benefits of the changes taking place.
According to Dimitar Tsotsorkov, chairman of the Bulgarian Network, responsibility and ethical values are leading in the management of companies. Vision, a sustainability strategy and responsible governance are needed to make real progress.
Only by building internal capacity and interrelationships between all stakeholders will companies be able to meet regulatory requirements, public expectations and maintain economic stability. The UN Global Compact and the Bulgarian Network are the connecting hub for this knowledge to move towards transformative governance.
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