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Sustainable Production
Utilizing sustainability policies within a Corporate Social Responsibility framework allows companies to be socially responsible and respond to the concerns of third parties whilst still maintaining economic control and maximizing their profits (Dauvergne & Lister, 2013). The majority of the sustainability practices big brands are integrating focus on enhancing the eco-efficiency of production, in order to improve their bottom line (Dauvergne & Lister, 2013). The primary focus of sustainable production practices is to find ways to continue to make products, but with less resources, energy and waste. Looking for solutions to improve production efficiencies allows businesses to coast through financial downturns that cause
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Products and packaging should be safe and eco-friendly, waste should be minimized and energy and minerals should be conserved at the highest level possible. Furthermore, sustainable production should be safe and healthy for workers and their communities and encourage their long-term economic security and development (Lowell Centre for Sustainable Production, 2016).
Sustainable production also broadly includes the effective management of supply chains. Supply chains have the capacity to be altered by the desires of both corporations and consumers. Through their sustainability policies, business and help to create more transparency and accountability within global supply chains. By better tracking the flow of their respective supply chains, businesses can create more efficient and durable supply structures and show resource quality, security and productivity (Dauvergne & Lister,
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Big businesses have always used sustainability as a tool to protect their own private interests. It is clear that economic and business related issues are the main drivers for the adoption of sustainable business plans (Dornfield, 2012). Big businesses have a huge amount of power globally, and often have influence over governments and not-for-profit organizations. This creates conflict, as this power often allows them to influence state regulations, as well as international codes and standards (Dauvergne & Lister, 2013).
Opinions are varied on the benefits of eco-business strategies. Some argue that it is little more than an economic tool, while others stress that the rise of a sustainability focus in business is an important factor that will encourage the “mainstreaming and scaling up” of the issue that is required in order to make global change. Dauvergne and Lister (2013) express concern that corporations use the term sustainability in their policies to ‘confuse and falsely reassure’ governments and consumers that they are taking effective action to reduce consumption and waste. Natanski and Baglione (2014) express concern that the private sector has a habit of narrowly interpreting the concept of sustainability as ‘environmental stewardship’ instead of viewing it as an effective way to improve ‘alignment with its stakeholders’ (pp.1). Sustainability
With sustainable business the retailer is forced to look at the full production chain of the product and analyze how best they can address socio-economic and environmental issues associated with their
The English retailer Marks and Spencer aims to be the most sustainable major global retailer in the world. To expedite this process, they have configured sustainability as one of their core strategies. Marks and Spencer have made a clear commitment: Plan A will measure milestones, timelines and employee accountabilities. The sustainability strategy that is being integrated into every business function and strategic business unit; will involve suppliers, employees and more increasingly customers. (Richardson, Page 98, 2015)
An increasing large number of firms are developing mission statements that also attempt to define the social and ethical boundaries of their strategic domain. Some firms are actively pursuing social programs they believe to be intertwined with their economic objectives, while others simply seek to manage their businesses according to the principles of sustainability – meeting humanity’s needs without harming future generations. For example, Unilever has launched a variety of programs to help developing nations wrestle with poverty, water scarcity, and the effects of climate change. The firm’s motives are at least as much economic as moral. As environmental regulations grow stricter around the world, the firm must invest in green technologies or its leadership
Another practice Primark has recently incorporated as part of their sustainable development, includes the Effluent Treatment Plants’ (ETP), which are used to treat the waste water from their operational factories (Primark, 2016e). This shows a step towards the environmental factor of sustainable development and taking responsibility for their actions. However, business environmentalism can be seen as not as a business investment for the company but a cost which endorses competiveness within the market (Payne and Raiborn,
Sustainability could be defined in many ways. It could be defined as the process to sustain a process or develop new technologies to reduce environment pollution. It also means a measurement how badly the environment is being polluted by other factors. I have to admit that sustainability is a great idea related to many fields such as healthy, economy, food, social, and etc. However, I still remember the first day of “Sustainable Business” class, Professor Laverty showed to my class an example of sustainable product with the idea of “produce more with less waste”. This example narrows me down to one idea of “Sustainable Business”, which is producing the product and services in an efficient and sustainable way without causing harms to environment. In this essay, I want to emphasize into impacts of businesses on environments, profitability of sustainable business, and responsibility of business.
Increasing public interest for the natural world is driving business organizations to give careful consideration to their ecological footprint, not only in the commodities and services they offer, but also in the supply chain that conveys them. What initially began as a corporate image improvement strategy has developed into a business imperative and, in the most advanced organizations, a competitive advantage. In today’s global market, the expectations for business companies about greening supply chain are very great particularly the consumer electronics industries, thus, international business outfits are putting in lots of effort to ensure their supply chains are operating in a socially and ecologically responsible manner in order to remain competitive. A Company’s obligations toward environmental sustainability define its corporate image and relationships with clients, stakeholders, community groups, also influencing its profits in the long run. It is therefore of a great importance for ABC Inc. which has just stepped out of a major growth phase to green its operations and be more proactive in implementing extended producer responsibility (EPR) initiatives into order reduce its ecological footprint and at same time saving money.
According to Christensen et al. (14+), sustainability on a global front leads to a reduction in cost. For instance, many companies invest heavily in commercials and other forms of advertisements. However, when a product is manufactured under favorable conditions, a strategic advertisement capturing environmental concern becomes far reaching and woes more customers to make purchase of the product. This reduces advertisement cost, which leads to an overall reduction in associated costs. A huge amount of research has shown that cost reduction by application of sustainable strategy is achievable.
...and sustainable supply chain are the steps taken by the small and medium enterprises of the country as this leads to the effectiveness of the process. Looking and comparing the past data with the current we can reach to the conclusion that though the pace of implementing green strategies in manufacturing and supply chain is slow in developing countries but we have achieved certain mile stones in this. We need to take proper steps so as to decrease the cost and make the sustainable practices more effective.
For example, Woolworth Pty Ltd set a Sustainability Strategy in 2007 (Woolworthslimited.com.au, 2012), which set a range of goals for the business to improve its sustainability and reduce its impact on the environment. A couple of key issues the strategy put in place were to reduce their water usage by 200 million liters per year and to develop and implement policies for ethical sourcing including animal welfare and the use of palm oil which lawfully, they should be doing already as globally and domestically, governments have responded to the challenge of global food markets and decreased safety interpretations of consumers by suggesting new legislation and regulations which should ensure safe and animal-friendly production and save resources (Poetz, Haas, and Balzarova, 2012). To organize the tasks, people, and other resources in order to make these goals happen Woolworths Pty Limited, assured their farmers, producers and facilities were using water as sustainably as possible through improved fittings, equipment, and infrastructure. Woolworths Pty Limited led by example to influence their employees and suppliers, to work hard in order to maintain these ethical practices and finally they controlled these ethical goals by monitoring the progress of these goals using a third party factory audit program (Anon,
For instance, a company that manufactures soap can develop a product that has less volume, needs less packaging, and uses natural ingredients instead of chemicals. This product innovation costs the business a considerable amount of money to acquire. It will only make the investment if the business believes that customers will value the product and make a buying decision based on its changed features. Sustainable marketing at the production level is intended to bring these new eco-friendly characteristics to the consumer's attention. At the public relations stage, the company can communicate to its shareholders and consumers that it is an accountable corporate citizen that it cares about sustainable product innovation for the betterment of future generations.
Stuart Hart, in a business article, discusses the tough task for companies to make a sustainable global ec...
The sustainability of ecosystems on which the global economy depends must be guaranteed. And the economic partners must be satisfied that the basis of exchange is equitable” (World). This quote demonstrates the complexities of sustainability. Another thing corporations should focus on when trying to be sustainable is their environmental impact. Annie Leonard in her book The Story of Stuff says that companies can significantly reduce their toll on the environment by changing their design. The design determines “the amount of energy used in making and using the product,” “the length of the product’s life span” and “its ability to be recycled” (Leonard). All these things determine the amount of resources a company must use, so simply changing a product’s design is one way a company can have a large impact on the sustainability of the environment in which it operates. One example of this is that “Wal-Mart attributed more that $100 million of its 2009 revenue to a decision to switch to a recyclable variety of cardboard in shipments” which it sells to a recycler instead of paying to send it to a landfill
Societal needs of designing and delivering products and services that can better serve a more sustainable environment.
Without doubt the XXI century has changed our priorities, especially when it comes to the way we do business. Popular sustainable business models, as advertised in the media, have evolved into much more than a moral obligation or an external requirement to generate money. Essentially, are forcing companies to reinvent the systems and approaches with which they generate value and profitability to the company.
In this environment conscious world, there is a growing argument about the ways in which a business should run its activities that should not have any negative impact on the environment overall. Raderbauer, M. (2011) A research done at the University of Exeter indicated that Industry has been the perpetrator behind ruining the environment for fulfilling its short-term profits instead of long-term environment consequences. Many businesses have understood the importance of preserving the environment and thus it is in the betterment of its own business, keeping in mind the long-term profits they can have while making environment responsible decisions. Business are more affected by environment because they run with the help of all the raw materials