Introduction
This case study critically examines Nike, the case organisations journey towards sustainability over a period of 15 years after facing intense criticism in 1998 for unsafe working conditions, excessive overtime, restrictions on organising and environmental impact. The meaning of sustainability, its motivation and application to the case organisation has been explored further. The authenticity of these initiatives has been assessed through the lenses of stakeholder theory. The implications of the initiatives undertaken by the case organisation on the three pillars of sustainability positive and negative have been discussed further to understand the level of balance and drift specially impacting the economic and societal cause.
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(Colbert and Kurucz 2007). As for the case organisation, the reason for the sustainability awakening was strong criticism from NGO’s for their business practises and media attention i.e. non-market factors. These non-market factors resulted in dropping sales and reputation for an organisation of their size. The case organisation undertook several approached and initiatives along the course of its sustainability journey, it is important to note that when formulating a “business case” for sustainability, it is more important on how the sustainability management is organised rather than focussing on the number of initiatives (Schalttegger 2010).
Initiatives taken:
• Initial focus was on engagement with the critics, formulating a body to help improve workers conditions and monitoring as a means of creating awareness.
• Publicising corporate responsibility reports added the dimension of transparency.
• Further steps included moving the corporate responsibility team in corporate decision making and formulating indexes to rate its sustainability practices.
• Focus on utilising environmental friendly raw materials and minimising waste.
ARGUMENTS
Authenticity of what drove the sustainability for the case organisation over the 15 years is arguable given that the drivers of success have changed from time to time.
When talking about sustainability numerous people associate it with just protecting the environment. Sustainability is far more than going green, but it is a principle that many companies have adopted and have worked persistently to improve over the last several years. Sustainability is defined as the ability to continue a behavior indeterminately, but it also includes improving human life overall. Sustainable development is broken down into three pillars: economic, social, and environmental (Harich & Bangerter, 2014). Economics is the study of how people use resources, which correlates to the goal of sustainable development by using resources to their full potential (Laszlo, C., & Zhexembayeva, N., 2011, p. 60). Economic sustainable development allows companies to give their customers what they want without overusing mutual resources. Social development combines the social world with the physical realm to provide a good quality of life (Benoit, 2010, p. 7). Social sustainability focuses on the well-being of people and their communities. Environmental development, the most recognizable, includes protecting the environment by reducing pollution, recycling, switching of electronic devices when not in use, etc. All three of these pillars make up what is known as sustainable development. In this paper, I researched a company and their involvement in sustainability and how it applies to the
Three key issues contributed to the disappointing sales. First, internal organizational challenges prohibited the growth of the line. Rigid
In order to be sustainable over the long term, Woolworths has made sure that their success doesn’t come at the expense of the society, economy and environment as they are a part of it (ICAA, 2011). They believe it not only involves responsibility to understand and manage their impacts, but also gives them an opportunity to achieve lasting and beneficial change that extends beyond their operations (ICAA, 2011).
Nike has a very sophisticated sustainability strategy. The strategy is based on company’s prospects for future, to ensure that the company remains profitable and reputable, taking into consideration the social responsibility of the company (NIKE 2013). For instance, the strategy is supposed to ensure that the company gains a stable supply for the raw materials for the product manufacturing that will ensure stable supply of the products in the market at favorable prices. The strategy also targets make the company responsive to environmental concerns, aiming at reducing environmental pollution through emissions to the atmosphere (Charter, 2001). The strategy outlines the company
Sustainability from a strategic business perspective is the potential for the long-term well-being of the natural environment, including all biological entities, as mutually beneficial interactions among nature and individuals, organizations, and business strategies. (O.C Ferrell, Fraedrich, Ferrell, 2015). Business sustainably is often defined as managing the triple bottom line – a process by which companies manage their financial, social and environmental risks, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. (Business sustainability definition from financial times lexicon, no date). This essay will discuss the idea of sustainability being an important element within a businesses and its core strategies and the importance of it within different businesses. Secondly, this study will look at how different stakeholders are affected and influenced by sustainability as this could be seen as a catalyst to improving the environment as a whole and. Then this study will look at how businesses not focusing
Bertrand Piccard quotes, “In the 21st century, the heroes will be the people who will improve the quality of life, fight poverty and introduce more sustainability. This is a powerful message, it sums up the concepts discussed throughout the course. Additionally, the case studies such as the New Belgium Brewery, SC Johnson and The Kimberly Clarke organization have been proven to practice this philosophy. As society progresses in its efforts to provide a more sustainable future, there is a fundamental foundation of principles that must be followed to ensure success. Sustainable business development takes into account the application of business operations as it relates to the three pillars of sustainability, which is a dynamic yet integrative place to begin this journey. DesJardins, (2006) calls for a re-imagination of the future to create a vibrant sustainable model; which forms similar beliefs to Piccard. In addition, organizations are more inclined to create sustainable practices based on consumer demand and the willingness of leadership to participate in sustainability programs.
The course of action that both Shaw and Middleburg surmise is that they would need to develop internal practices and services that envelop a strategy in which the firm could be held accountable to the stakeholders in meeting organizational financial objectives, and being socially and environmentally responsible. The background and history of these individuals ripped a page out of the AIESEC doctrine that leaned strongly towards being socially responsible practicing sustainability that led to” meeting the needs of the present generation without compromising the ability of the future generations to meet their needs” was a far departure from the common practices of large global organizations but targeted to be the desired state of PwC (Jick & Peiperl, p. 465). With the support from Keith Bell, the duo’s manager, together their zeal and tenacity about spreading the gospel of the “NewCo Values” garnered them an audience with Ian Brindle which led to starting the
Schaltegger, S., & Burritt, R. (2015). Business cases and corporate engagement with sustainability: Differentiating ethical motivations. Journal of Business 147(2), 241-259. https://doi.org/10.1007/s10551-015-2938-0
Governments, environmental agencies, and corporations alike have utilized the term “sustainability” in order to convey their respective agendas for general sustainability in environmental, social, and economic realms. In spite of their initiatives, there has yet to be a generally agreed upon, uniform definition for “sustainability.” This lack of semantic clarity has promoted skepticism among some parties, skepticism primarily focused in the legitimacy of sustainability agendas, as well as the idea of sustainability in itself (Context & Development, 1992). This essay seeks to inspect the concepts of sustainability generated by two
Another argument often used against sustainable entrepreneurship is the price increase of products. Opponents claim that customers will choose for a low price instead of for a more expensive, though sustainable and green product or service. And of course this assumption may apply to some products; on the other hand, opponents seem to completely ignore the increasing awareness of new values of the modern educated customer. It is not enough any more for a product or service to just meet traditional business criteria, such as functionality, quality, fashion and price. Nowadays, people who can afford it in the developed world expect at least a basic level of sustainability of the products they buy as well as of their manufacturers. Research shows that almost 75 percent of the customers indicate that there is too little background information about products and services (Lageweg et al., par.5). Providing reliable and clear information about sustainability maywill benefit for the competitiveness of many organizations. I believe tThe market for sustainable products and services will continue to grow and someoon customers will simply refuse to purchase things ifof which the origin is not known as education increases across the world.
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The greatest challenge faced by many organizations today and especially the labour intensive industries is ensuring there is a sustainable
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Clearly shown within this paper there are many factors that determine the sustainability of an organization through public relations however, this point will seek to outline how credibility within PR can reflect an organization. Public relations emphasizes its importance through credibility which can be displayed through the management of relationships and reputation. Credibility can be established through a variety of methods within an organization, one method is through Corporate Social Responsibility. This can be identified as “business practices involving initiatives that benefit society” (Carney & Lymer, 2015). Corporate Social Responsibility can may have to do with an organization being aware of the environment, therefore going
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