Sustainability Is More Than Corporate Social Responsibility

1874 WordsOct 27, 20148 Pages
1. Sustainability a) Business Challenges related to Sustainability: Sustainability is more than corporate social responsibility. It is a challenge to companies, how they grow and make more profit without harming the environment, society and efficiencies of the employees. When it comes to sustainability issues then Stakeholders are centre of discussion. Businesses face challenges in terms of political environment, ethical, cultural, economic issues. Companies have to design their long term business strategies keeping in mind the best interest of the stakeholders such as customers, employees, government, suppliers, etc. and still with the motives to make profits. Sousa (2012) emphasizes that a customer before making an online transaction, has a high likelihood of approaching a competitor site for better service and options. One of the major business challenge is ‘customer retention’. Customers in the E-Commerce are more tech savvy than the traditional ones. Poor service quality can cause disastrous effects in the online industry, leading to shut down or being acquired. Ex: Wesabe(e-finance) shut down due to mint.com in 10 months(NY Times 2011). These challenges are indirectly linked to the HR philosophy. b) HR implications sustainability challenges: Businesses with traditional presence often face problems in tailoring its HRM strategy to accommodate its online presence. Blount et al. (2005) compared online presence of Australian retail bankers, Lawson and AUB, and studied
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