The state of business sustainability in New York

Leonard Shostak is an active member of the New York Corporate Social Responsibility Group. He acts as Partner and Business Development Consultant with Box of Rain LLC, a business development consulting firm in Brooklyn, New York. We discussed the meanings and aspects of sustainable business as they are understood, practiced and debated in the US, particularly in New York City.

LC: What does Box of Rain do?

LS: We help high-risk, high-tech businesses start up their operations. We coach them starting up, from developing a feasible concept to bringing their service to market. We help them identify appropriate partners that can help these businesses grow through effective long-term relationships.

LC: Do your clients strive to become socially and environmentally sustainable?

LS: Unfortunately, social responsibility is not high on many businesses agendas. Where our clients care about something other than their bottom line, it is the environment and not the community. Businesses’ commitment to their communities is rather rare nowadays. I remember back in my childhood Brooklyn was much more community-oriented. Local restaurants used to sponsor sports clubs and get involved in various community events. I believe local businesses have great potential to engage in their communities by supporting public education programs and sports clubs. They could opt for green offices, buying produce grown locally and power from a green source. I’d encourage businesses to explore this potential in depth. Businesses need to interact with their communities on a more physical level, especially now that it's something customers want.

LC: When did you personally realize the importance and difference associated with being a sustainable business?

LS: I first realized how different a sustainable company in 1995, when I started working for Caithness, a green power company. This is when I realized that being responsible to your employees and to the community around you is what makes a company special. By treating their people well, they have loyal employees, satisfied customers and steady revenues.

LC: What does it mean to be a sustainable business in New York?

LS: It means, first of all, doing many basic things, such as making sure the office lights and computers are turned off at night, waste is properly disposed of, public transit or environmentally-friendly cars are used, and employees are treated decently.

LC: What are the incentives of being a responsible business in New York?

LS: There are various tax incentives to encourage businesses to go green and many more will emerge in the coming years. One important incentive - reported by many businesses - has to do with higher staff retention. Sustainable companies benefit greatly from the loyalty and dedication of their staff.

There are few business education programs on this topic, so businesses are largely unaware of the benefits of incorporating sustainable practices. I hope this will change in the near future.

LC: What are the barriers to becoming a sustainable business in New York?

LS: Personal mindset. People just don’t want to be bothered. Americans are overconsuming energy by leaving their lights on during the day, running air-conditioning at freezing temperatures, or keeping their computers on for days. Another important barrier is the cost factor that can be associated with retrofitting equipment or changing procedures.

LC: Can you think of an industry in New York that could really use some improvements in their business practices from the sustainability perspective?

LS: The first which comes to mind is the entertainment industry. As consumer, I think bars and clubs could recycle more and significantly reduce their energy consumption. Outside heating for people that wait to get inside is plain outrageous.

LC: Thank you!