Global political instability, climate change, and generative AI are pushing businesses, policymakers, and individuals to respond. As planetary resources shrink, responses must be sustainable and regenerative.
Recurring crises have become characteristic of the 2020s, and crises often force change.
“Going forward, climate change and biodiversity loss may trigger further major disruptions. The stronger our skills and thinking are, the better prepared we are to face crises and deal within them,” says Associate Professor Hanna-Mari Husu from the Department of Social Sciences.
Organisational sustainability transitions gain momentum from societal change and vice versa. This reciprocal dynamic in Finland serves as an example to the international community.
“Systems change is sparked by tensions between different sectors of society. Civil activism, which is atypical for Finns, is on the rise, and at the same time, we have a very strong third sector. Systems transform through collaboration between private, public, and third-sector actors,” says Professor of Sustainable Business Pasi Heikkurinen from LUT Business School.
Good leadership rests on sustainability, low hierarchy, and using AI wisely
Companies and their leaders play a central role in driving societal change.
“In short, we need leaders who are in tune with the times: leaders who are internationally and politically connected, understand the importance of technological development, internalise sustainability, and maintain low-threshold decision-making processes. Overly bureaucratic organisations may struggle to keep up,” says Professor Tanja Leppäaho from LUT Business School.
According to Leppäaho, family businesses often have very agile decision-making structures – this is precisely what can make them key actors in society, helping them to shape national identity.
It is impossible to talk about resilience without mentioning AI. Leppäaho says AI influences all company functions and thus the entire operating logic of companies, but most strongly marketing, sales, recruitment, and accounting. AI also affects strategic decision-making, as it can build scenarios for alternative choices.
Using AI wisely saves significant resources.
“If companies fail to adopt AI early enough, they may lose substantial competitive ground. Market and customer analyses, surveys, tailored marketing, performance monitoring, and knowledge searching can all be easily integrated with AI. Organisations whose leaders try to do everything the old way may face major difficulties,” Leppäaho notes.
Reporting obligations imposed on large organisations are increasingly cascading down to small businesses.
“Small companies often operate as subcontractors to major corporations, which means they, too, must now comply with sustainability reporting requirements. At the same time, the growing emphasis on sustainability reporting has opened up new opportunities for consulting firms with strong expertise in sustainable development.”
Companies that influence decision-making can gain a real competitive edge
According to Tanja Leppäaho, organisations with strong political relations gain a competitive advantage in today’s geopolitical climate. Recent radical policy shifts and trade sanctions by the United States, Russia, and China can change the operating environment of international companies overnight.
“In such situations, strategic leaders may have to decide very quickly to close one market and strengthen or open another. These are extremely costly decisions,” Leppäaho says.
Organisations with political connections often hear about planned decisions in advance and may even influence them. Leppäaho adds that highly international organisations with broad networks also gain influence.
According to Pasi Heikkurinen, companies’ ability to influence systems depends not only on their size, strategy, and resources, but also on legislation. Any change in the political climate affects business operations.
“However, companies are not subordinate to politics – they can influence society if they wish. If a company advocates stricter regulation in an area where it is already a forerunner, it can gain a significant competitive advantage when the law comes into force. Companies can also defend democratic processes to prevent the private sector’s responsibilities from expanding excessively,” Heikkurinen explains.
Corporate activism and bold leadership don't drive customers away
Companies are led by people, and people always have values and political views.
“It is important to maintain a balanced division of responsibilities when discussing sustainability. We should highlight business successes but also be honest about areas needing improvement and acknowledge which responsibilities belong to public authorities,” Heikkurinen says.
According to research conducted at LUT Business School, not even bold public statements on societal issues drive customers away.
“Corporate activism carries risks but also opportunities. It has become a way for companies to influence public debates, but engaging in polarised discussions is never easy,” says Associate Professor Laura Olkkonen.
Corporate activism refers to activism initiated by companies themselves, such as public statements on the climate crisis or minority rights. Such activism often sparks debate among customers, and the CEO’s example is crucial.
“A statement alone rarely creates change. What matters even more is what happens after the statement or whether anything happens at all. That’s when a company’s commitment and the authenticity of the message are truly tested. If no one in the company is willing to stand behind the statement personally, one must ask whether it was genuine in the first place,” Olkkonen summarises.
LUT University is training the next generation to change the world
According to Hanna-Mari Husu, societal agency is defined by how much LUT graduates, for example, can change prevailing structures and practices.
“Education should support critical and reflective thinking as well as the internalisation of new ways of thinking. This is also about the sustainability of thinking as opposed to outsourcing thinking to AI,” Husu says.
She believes LUT has understood well that the most interesting developments often happen at the intersections of disciplines.
“By bringing together people with different expertise and exposing them to conflicting perspectives, something new can emerge. This could be encouraged even more intentionally.”
As individuals, we can influence our workplace by showing interest in the structures behind production and services and in their sustainability and ethics. Through our expertise, we can help organisations develop more socially and environmentally responsible practices.
Husu believes regulation and policy measures are effective ways to steer consumption in an ecological and socially sustainable direction. People often hold environmentally friendly attitudes but act differently in practice.
“Everyday life is routinised and largely happens without conscious thought. Consumers may buy products out of habit without considering the production chains, resource use, or social sustainability behind them. When many people act this way, unsustainable practices emerge,” Husu explains.
“Our actions also have unintended consequences. Understanding these aspects helps us create more sustainable practices.”
Husu says society should look beyond economic capital and have broader discussions about cultural and social capital and their value.
“This opens the door to new ways of living and consuming.”
More information:
Pasi Heikkurinen
Tanja Leppäaho
