Chapter 4, Problem 1CTQ

Summary Introduction

Case Summary: Company UL, founded by person WL was a global entity and with the excellence administration of his successors, the company grew to be one of the globally dominating with one third of the population using their product in a day.

Company UL follows a Sustainability Living Plan based on the three principle which are follows them. One is to improve the health and well-being of the people and second is cutting their environmental footprints in half and last is to improve the life of their stakeholders either directly or indirectly. The company works towards achieving many goals relating to sustainability. Some of them are reducing deforestation, helping farming, assisting better sanitation to people, increasing job opportunities for women and improve its operation in a sustainable way.

Apart from the pressure of producing better results for every quarter, the company is well focused on its mission of creating a sustainable living. With an eye on its goal, the company also march towards improving its shareholders and stakeholder value. Being one of the highest spenders on advertisements globally, the company is aimed to create a clean digital supply and challenges company like company G, Company F to remove unidentified parties in the internet.

There two main challenges that are in front of the company. First is that the company has thin profit margin in terms of its consumer goods and Second is that the company is under high pressure to meet its quarter targets and retain its shareholders. With the existing challenge, the company is still focused on created a sustainable living plan and at present the company successfully operates in 34 countries around the world.

To determine: Whether it is a mistake by the company to adhere to its sustainability goals having taken that not all consumers care for social and environmental cause and explain your reason.

Explanation of Solution

The answer is No, it is not a mistake from the company’s part to adhere to its goals of sustainability. The company has its vision clear and it is heading towards it.

A company without a vision and proper execution to attain its mission will be viewed as unreliable by its shareholders and stakeholders and it long run eventually it will lose it attraction from its customers. Though few consumers are not attracted towards social and environmental cause, there are lots of population who will be attracted towards the company’s goal.