Sustainability is a revolution for the service sector. The more you spread sustainability, the greater the chance of ending up with a sustainable world.

1. Sustainability of Service Sector
Organizations
Dr. Sreenivas Rajan

2. Why Service Sector
• Service sector organizations such as Walmart have shown
sustainable heart. The organization has to increase the absorptive
capacity and use sustainable trends to increase the profitability of
the service sector(Zahra and George,2002; Bansal and Roth 2000).
• Sustainable cities will harness the next wave of entrepreneurship
to start sustainable service sector organizations that will grow the
sustainable economy(Campbell, 1996).
• The true value of natural services is in trillions of dollars (Hart and
Donell, 2011).
• I argue that the best way for sustainable service sector
organizations to get there is to raise cognitive resources, strategies
that enable differentiation through sustainable value creation and
cost leadership strategies that reduce total cost including cost to
nature and the development of competencies in the sustainable
economy

3. Nature Sensitive Governance
• E governance will reduce costs and increase the
number of services but natural governance will
increase the strength and quality of government.
Sustainable governments such as California can impose
their sustainable policy by dictate but service sector
organizations out of self interest can become the
sustainable stars of the sustainable economy
(Shrivastava, 1995).
• While nature consists of fragile eco systems, nature is
also big and consists of stars and galaxies that are far
bigger than anything the humans will make. No military
force can protect us from disease, floods, earthquakes
or corrosion

4. Sustainability in Real Estate
• The real estate industry is worth trillions of
dollars.
• The market consists of residential and
commercial property.
• The land that we have been allotted rises in price,
as we become more productive.
• Since nature affects us through our genes and
weather, our productivity is dependent on
nature. Ultimately, the price of the land is
determined by what we get from nature.

5. Sustainability in Real Estate
• Social capital is increased due to land which bring together people of the
same neighborhood and region and this regional social capital is crucial for
the success of the green economy.
• Institutions do work on increasing the potential of the land and by
developing sustainable enterprise.
• For example, Centre for global sustainable enterprise at Cornell University
contributes to the sustainability of the planet using cutting edge methods
such as innovation and sustainability in emerging markets. This leads us to
the following hypothesis,
• Hypothesis 1: The greater the power of nature is harnessed through solar
energy and conservation, the greater is the value of the land and greater
the performance of sustainable real estate companies

6. Sustainable Cities
• Sustainable cities will be more profitable for
companies. By harnessing the synergy with nature,
customers will be richer and more able to afford the
products of companies. Green cities will harness the
next wave of entrepreneurship to start sustainable
companies that will grow the green
economy(Campbell, 1996).
• The explosive growth of China should be channeled
along sustainable lines and environmental discipline
should be instilled early on in China. By 2020, many of
us in the planet will live in cities and there will be
thousands of cities.

7. Sustainable Cities
• Clean technologies that underlie green cities have received
support from institutions such as Japan’s Research Institute
for Innovative Technology for the Earth (Hoffman, 2005).
Long term planning is required to lift the environmental
standards of sustainable cities.
• China is investing billions of dollars in environmental
technologies and such investment are played for job
creating opportunities. Chinese officials are rewarded on
their ability to conserve nature. This leads us to following
hypothesis
• Hypothesis 2 : The greater the spread of sustainable cities,
the greater will be the rise of sustainable companies

8. Sustainability in the Energy Industry
• Solar energy transferred to a country measures in trillions of dollars.
This is free energy that subsidizes natural and agricultural
resources.
• Dr Rajendra Pachauri, Nobel prize winner, has emphasize that the
global family is a single family and the family cant avoid that some
of it members would be affected by global warming. Dr Pachauri
has argued that climate change is for real and the sooner we take
steps the better.
• Stewardship of this energy is important and since accounting
systems don't capture the value of this energy, capitalism might fail
without the benign support of nature. Many governments give
subsidies on oil, instead subsidies should be given to solar energy
and bio fuels. In India, the oil subsidy bill comes to billions of
dollars, money that should be allocated for green energy and
stimulation of green companies.

9. Sustainability in Energy Industry
• Companies such as Nanosolar are pushing the limits on
efficiency, low cost and longevity of solar cells by using a
printing technology rather than a film deposition process.
Nanosolar’s solar cells are guaranteed to last for 25 years
and are a good sell for bottom of the pyramid markets.
• Solar energy is also about persuasion of customer of fossil
fuels to switch to green fuels. The green marketing efforts
should emphasize the dual benefits to the customer of a
good product and product good for the planet (Hoffman
and Bazerman, 2007). This leads us to the following
hypothesis,
• Hypothesis 3: The greater the capability to harness solar
energy, the greater is the performance of sustainable
companies.

10. Sustainability in Finance Industry
• Currency used to based on gold standard. Capital accumulated from gold
worth more than 1 trillion dollars was used to finance the industrial
revolution which led to the founding of banking. Most of the assets that
corporate own is land and that substantiates the stock market wealth. By
debasing the currency of nature, we are risking the natural assets that
underpin the financial economy. On one side by debasing nature, we
increase the risk to economy through global warming and tsunamis that
destroy human and natural basis of the economy.
• On the other by conserving land and natural resources, we increase the
value of assets that underlie the stockmarket and provide stability to the
financial world (Costanza, 1997). Shareholder activism has increased and
the true return on capital allocating for green risk should be calculated in
order to convince shareholders of corporate ethics and quality of
governance. According to the World Economic Forum, the greatest issue
that companies face is climate change and it is high time that Wall Street
paid notice to green stocks.

11. Sustainability in Finance Industry
• Return on capital doesn’t include the cost of nature and there is a
natural subsidy of financial markets. Nature affects the economy
through monsoon, weather and solar energy and the performance
of the economy The idea of a triple bottom line that reflects
environmental risk and returns should be supported to give a true
account of environmental aspect of finance.
• Trust and social capital are required to face risk and increase the
returns of green companies (Adler and Kwon, 2002). The price of
the land is to be influenced not only in this generation but also for
coming generations. By only long term tending of the natural asset,
can we increase the price of the asset in coming generations. This
leads us to the following hypothesis
• Hypothesis 4: The greater the conservation of land assets and
avoidance of natural risks, the better is the performance of
sustainable companies on the stock market

12. Sustainability as a Brand
• IT Brands such as Sun and Apple are derived from natural brands
that have a great economic value. The goodwill for nature is a huge
resource which underpins the goodwill for technologies and man
made constructs. The genuine concern of people for natural
resources such as rivers and lakes reflects the goodwill of nature.
• Nature has a much longer time perspective in billions of years. Our
corporates have merely lasted hundreds of years and it is required
to be more sustainable in the coming years. The goodwill of
companies needs to be sustainable and that is enabled by a
connection to nature (Mayer, Davis and Schoorhaven, 1996).
• The companies should emphasis the connection that they have to
environment and support environmental causes. The closer the
companies are to environment, the greater the likelihood of
natural upside to their brand values.

13. Sustainability as a brand
• The social concerns of Sustainable companies should
be addressed and green companies should address the
varying talent of different socioeconomic groups and
promote social relations to develop social capital to
address the green issues (Fukyama, 1995).
• By addressing sustainable issues in this social manner,
the company also develops the brand of the company.
This leads us to the following hypothesis
• Hypothesis 5: The greater the connect to nature, the
greater will be the value of natural brands such as Tiger
brand and Lion brand

14. Sustainability in Health Industry
• Nature is seen as a benefactor and it is man that exploits nature.
But through disease, nature controls human population and is a
threat to humans. The AIDS virus originated among monkeys in
Africa. The absence of sunlight affects mental health.
• Nature also provides remedies to the diseases. Traditional medicine
systems such as Ayurveda acknowledge the vast contribution of
nature to medicine.
• Life expectancy has increased and older age patients prefer to live
in sunnier states such as Arizona in the West as they expect better
health in such states.
• More than 50 diseases such as Hanta Virus, West Nile and the
plague came from animals in the nature. Environmental effects such
as deforestation and climate change have contribute to the spread
of diseases from animals.

15. Sustainability in Health Industry
• In order to fight these diseases, healthcare companies have to make
networks with traditional medicine communities and discover new
herbs and formulations that can fight these diseases.
• Health companies not only have to take care of the health of their
current patients but also the children of these patients. By using
natural knowledge, it is possible to take care of the health of future
generations in a holistic way.
• Many Hazardous substances cause health effects on customers. By
preventing waste and management of hazardous substances,
companies can take care of the health of customers. This leads us to
following hypothesis.
• Hypothesis 6: The greater the connect to nature, the greater is the
discovery of natural medicines and greater is the profitability of
health care industry

16. Sustainability and Cognition
• Cognitive aspects such as memory, attention and schema
should be used to raise cognitive resources on the green
economy. The memory devoted to nature is significant.
Memories of nature dominate the collective unconscious of
the people. The more the memory allocated to such issues
as climate change and global warming, the greater the
sensitivity of companies to these issues ( Walsh and
Ungson, 1991).
• Memory will stimulate the affection of people to green
products and increase the profitability of green companies.
The organization has to increase the absorptive capacity
and use green trends to increase the profitability of the
companies(Zahra and George,2002).

17. Sustainability and Cognition
• Many of the memories of the use and application of nature are in
our traditions and are overlooked in the scientific approach to
problems. Memories of the degradation of nature are overlooked
and cut off from the main stream. By 2020, oil might run out or the
climate could degrade substantially (Grey and Walters, 1993).
• Companies have selective memory of their impact on environment
and the overall image of the company. If a true account is called and
the memories of local people included, a more balanced view of
the success of the company in the context of capitalism arises.
• Few companies remember the huge damage to forests and rivers.
Companies choose to remember the quality of their products and
not the total cost of their products This leads us to following
hypothesis
• Hypothesis 7: The greater the devotion of memory to sustainable
issues, the greater is the performance of sustainable companies

18. Sustainability and Attention
• Attention is required to what is the bottom of the
pyramid and their facts which are centered around
survival. It is difficult to understand population growth
among the underprivileged and deforestation leads to
draining of the poor peoples way of living.
• The environmental limits and tradeoffs that dominate
the poor people require much more attention and
resources so that they are tackled before they become
a major problem in nature
• The Chinese bureaucracy gives importance to harmony
with nature and companies in China should increase
attention to green issues by 2020.

19. Sustainability and Attention
• Attention to green companies increases as their
centrality in the network increases. As their
performance increase, their centrality increase in the
network.
• The network is a good way of directing attention and
learning about sustainable competencies (Argyris,
1991). Top management should pay attention to green
issues and many green issues are diffused through ties
between boards. This leads us to following hypothesis
• Hypothesis 8: The greater the attention to sustainable
issues, the greater is the performance of sustainable
companies

20. Sustainability and Schema
• In the future, there will be a great demand for cars in
countries such as China and India. By diffusing the
schema of green cars, the load on the environment can
be reduced. The schema for green cars is probably
currently formed in developed countries but has to be
diffused to developing countries.
• These schema have to adopted to demands of local
countries for example in China, green schema should
be argued on the basis of harmony with nature. The
fight for nature should be done using karate and local
martial arts. There is a lot of investment in emerging
markets but the need for knowledge and schema is
more important than the transfer of money.

21. Sustainability and Schema
• Similarly indigenous schema that use ancient patterns of
living and yoga to improve sustainability should be diffused
in the western world. The legitimacy of green schema
should be increased by improving the performance of the
companies using sustainable technology.
• The ties to nature should be increased and that would
legitimize the green schema in companies. The companies
should benchmark and audit their schema to get the latest
schema about green services. This leads us to following
hypothesis.
• Hypothesis 9: The greater the generation of sustainable
schemas, the greater the performance of sustainable
companies

22. Sustainability and Differentiation
• Companies can differentiate their product by using
ecologically friendly parts or innovating to reduce the
environmental footprint of their products (Hart, 1997).
Companies like General Electric have started an
ecoimagination initiative to provide their products the
benefit of green imagination.
• Key polluters such as aircraft engines and locomotives are
being upgraded to environmental standards. Chinese
government body National Development and Reform
Commission actively encourage companies to use green
inspiration in their products. Companies have to create
value not only for their customers but also the children of
these customers. The value must be sustainable for
generations.

23. Sustainability and Differentiation
• The service sector should develop products such as
microfinance for the poor and encourage the poor to use
these loans in an environmentally friendly way. Service that
address social justice and environmental concerns will be in
demand by 2020.
• Green companies can follow a strategy of differentiation
that will use the natural benefits to differentiate their
products and company position in an increasingly crowded
competitive environment. This leads us to the following
hypothesis:
• Hypothesis 10: The greater the differentiation along the
green dimension, the greater is the performance of the
green companies

24. Conclusion
• This is the knowledge economy, and companies should
raise their cognitive resources such as memory,
attention and schema to the green issues.
• The era of green manufacturing has transitioned to
service companies such as Walmart which are at the
forefront of green revolution. Service sector industries
such as real estate, finance, marketing and health
benefit from the connect to nature, the incoming of
natural resources, green brands and land assets that
underlie the stock market.

25. Conclusion
• Service sector companies can differentiate
their products along green lines and reduce
total costs including cost to nature. At the
same time service sector companies should
develop sustainable competencies by 2020.
• Thus a lot can be expected from eco conscious
green companies by 2020 which will lead to
the growth of the sustainable economy