Performance Metrics: Dell Computer Corporation

Businesses who participate in environmentally friendly practices will become more profitable. There are difficulties and costs that a business will face and profit takes time but is proven to positively impact a business. “The reluctance to address the forces that are polluting the planet always comes down to money (Smith, “6 Reasons Nations Don't Go Green.”). Implementing environmentally friendly practices within a company “will win them customers, and increase profits” (McDonald, “Why Do (or Don’t) Companies Go Green?”). Many global companies today carry out environmental management tools to adapt to environmentally friendly practices, which helps gain customers, and in turn becomes more profitable. In this paper, I will go into further detail explaining why businesses should be more environmentally friendly, the benefits to be gained, costs that come with being environmentally friendly, and management ways that help a company become environmentally friendly.

Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of

Preston (2001) cited early on of HP’s recognition of the need to combine environmental sustainable practices into its core business strategy and its commitment to becoming an ecological leader in the 21st century. The company’s leading sustainable efforts are illustrated through its installation of an EcoPOD next-generation data centre in Georgia, USA earlier this year which is ‘currently the most efficient data centre in existence and can decrease energy consumption by 95% in contrast to traditional services’ (Interbrand, 2012). Furthermore, according to the Hewlett Packard company website, the enterprise has also delivered on its environmental goals which included reducing the energy use of HP products and associated greenhouse gas emissions to 40% below 2005 levels by the end of 2011- the company reduced it to 50% and accomplished it nine months

As technology increases through massive changes it becomes apparent that the individual user must also make changes that are environmentally safe. Green IT, also known as Green Computing, is the movement towards a more environmentally friendly and cost-effective use of power and production in technology. The crux of Green IT is to double or triple the bottom line investment costs by converting existing structures and systems to this more conservative mode of operation in green computing (eweek.com, 2012). The greening of information technology (IT) offers numerous ways for companies to

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Companies today are heavily influenced by the demands of customers and stakeholders. Corporate social responsibility (CSR) refers to the social and environmental responsibility policies and practices developed by an organization to increase its positive influence and reduce its negative activity towards society (Parks, 2008). The business approach and corporate philosophy of an organization is easily altered due to economic pressures, technological improvement and stakeholder needs and demands. "Going green" or being eco-friendly is one such demand. Environmental and sustainability concerns originate most often from governments, consumer activists, and the general public (Schlosser, 2008). Thus, organizations must implement sustainability into daily practices. In addition, sustainability alters the nature of competition and drives companies to think differently about products, processes, and technologies (Parks, 2008).

It covers the corporate sustainability performance of Costco Wholesale Corporation’s U.S. and Canadian operations for September 2007 through August 2008. Our environmental reporting is still evolving. We recognize the need to report more environmental metrics information in future reports. Charts and graphs and greenhouse gas emission reports in this report refer to calendar 2007 data for Costco’s U.S. and Canadian Operations, as we will publish this information on a calendar-year basis. Inside you will find many examples of Costco’s move toward becoming a sustainable business. We are taking actions across our entire business operations to improve our global stewardship. We are focused on the areas where we have the most impact, including energy efficiencies, environmentally friendly packaging, disposal of waste from our business operations and sustainable products. We are committed to using innovation and sensible environmental steps to grow our business and minimize our impact on the environment.

Today, there is much emphasis given towards sustainability in the corporate world. According to its IR, NAB is said to be using much less energy in its data centers giving priority to infrastructure which is energy efficient, with some of its hubs receiving certifications too (p.14). NAB is also spending a significant amount on energy efficiency initiatives with $15 million of costs avoided and 81,000 tonnes of greenhouse gas emissions being eliminated (p.26). Further the use of solar reflective roof paints and renewable energy (p.26) is an assurance that NAB is committed towards creating a sustainable environment with minimal impacts and preserving the environment for future generations.

In today’s business world, sustainability can make all the difference in the world. According to Tomson (2015), “sustainability has become an economic and strategic imperative with the potential to create opportunities and risks for businesses by creating new customer relationships, and inspiring new products and business models that drive growth. Consequently, companies that are, or aspire to be, leaders in sustainability are often challenged by rising public expectations, increasing technological innovation, continuous quality improvement, effective governance measures, high standards of ethics and integrity, and heightened social and environmental challenges” (p.1).

In other words, these socially responsible companies will evaluate not only the short and long term economic outcomes of their present decisions but also the long-term environmental and societal outcomes of their current actions. This thus leads to the triple bottom line approach of reporting environmental, social, and economic performance. In addition, Wilson from the Ivey Business Journal argues about corporate social responsibility or the CSR. The CSR has been around longer than the term and implication of “sustainable development” but has similar guidelines. From about 1953 the on, the main debate was whether corporate managers had an ethical responsibility to consider the needs of society and by 1980, it was generally and consensually accepted that corporate managers should and did have this moral responsibility. So by incorporating sustainability plans or even creating a separate branch dedicated to doing so, the company’s reputation often is increased, which over the long term, will contribute to accentuate customer loyalty, market share, and brand value and awareness. (Wilson, 2003) This case study done on Johnson & Johnson published by the IMA Educational Case Journal analyzes the impact that implementations of these sustainability

In the last portion of the paper, various complexity analysis tools are examined in relation to Dell and the computer/technology industry. The industry was examined in terms for the Fitness Landscape, Boid Analysis, Industry Evolution Modeling, and Life Cycle Analysis. Examining Dell in the context of multiple frameworks granted insights into key factors such as material inputs, resource depletion, byproducts, waste and disposal options and stakeholder versus societal obligations and responsibilities. An analysis of the Sustainable Value Framework, including a detailed analysis of the sustainable value of Dell and its products and services rounds out the research.

It has long been known that developed countries and their appetite for technology and personal devices are in part contributing to some of the issues related to climate change. As consumers and users, we are now encouraged to make responsible decisions when purchasing and using personal technology that can affect the environment. A certain level of responsibility is expected not only from users of technology, but also from manufacturers that feed our appetites for such technology devices.

“To get a sense of what is possible and perhaps even advisable in the sustainability realm requires benchmarking against a set of companies that have taken a leadership position on environmental or social issues—or against an established set of sustainability best practices.” (Esty & Simmons, 2011) Because the LEED certification is the most popular certification amongst IAVM members including convention center facilities, benchmarking and actively working to be certified using these standards has been the San Diego Convention Center’s strategic approach to sustainability. This method provides a foundation for the San Diego Convention Center to understand what is being done by competitors and what the key performance indicators are of sustainability.

Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.

As an increasing number of people become more conscious of what they consume health wise and increase their awareness of their impact on the environment, they begin to actively decide who to purchase from. Companies must become more aware of their consumer’s transforming habits and values. ‘Companies today are bigger than many economies…little republics…if companies don’t do [responsible] things, who is going to?’ (Deresky, 2014, PC4-9). It’s hard enough developing a competitive edge to beat out the competition, but to do so while still holding true to the acts of shrinking one’s environmental footprint and giving back to local communities seems realistically unattainable. For all intents and purposes, can performance with purpose work for the performance aspect effectively? (Deresky, 2014)