Premium Essay

Sustainable Business and Ethics

In: Business and Management

Submitted By 2440447
Words 12220
Pages 49
Chapter 1: A new framework for implementing corporate sustainability

Key points:

▪ Sustainability performance is the effect of corporate activity on the social, environmental, and economic fabric of society.

▪ A balance between economic progress, social responsibility, and environmental protection, sometimes referred to as the triple bottom line, can lead to competitive advantage.

▪ The evaluation of social, economic, and environmental impacts of organizational actions is necessary to make effective operational and capital investment decisions that positively impact organizational objectives and satisfy the objectives of multiple stakeholders.

▪ The financial payoff of a proactive sustainability strategy can be substantial.

▪ To become a leader in sustainability, one needs to articulate what sustainability is, develop processes to promote sustainability throughout the corporation, measure performance on sustainability, and ultimately link this measurement to corporate financial performance.

▪ Corporate citizenship is an important driver for building trust, attracting and retaining employees, and obtaining a “license to operate” within a community.

▪ Corporate citizenship is much more than charitable donations and public relations—it’s the way the company integrates sustainability principles with everyday business operations and policies and then translates all of this into bottom-line results.

▪ For sustainability to be long lasting and useful, it must be representative of and integrated into day-to-day corporate activities and corporate performance.

▪ If sustainability is seen only as an attempt to provide effective public relations, it does not create long-term value and can even be a value destroyer.

▪ The key to success is integrating sustainability into business decisions, identifying, measuring, and reporting (both…...

Similar Documents

Premium Essay

Benefits of Sustainable Business

...Benefits of being Sustainable Business? - Reputation Management (This management of reputation enhanced by social responsibility can lead to growth in both brand value and equity. ) - Financial Performance (social responsibility should be viewed as an investment in a strategic asset.) - Risk Management ( The investment community increasingly considers a strategic approach to social responsibility as a proxy indicator of good quality management.) - Employee Satisfaction ( People tend to work for good aims so they have better motivation.) - Innovation ( these business drivers need to be integrated into the strategy of an organization and develop to result in superior financial performance.) - Customer Loyalty ( Customer loyalty is built on trust, service and values. Highlighting an organization's commitment to responsible business practices can maximize the role of Cause Related Marketing to gain competitive advantage.) Disatvantages: - Converstion Expense (it can be costly for a corporation to go green initially. for example, the switch to solar power will create the need to install solar panels at business facilities.) - Costlier products ( in some cases, the switch to using green materials can lead to more expensive product for consumers.) - Lack of Support ( there can be an "entrenched bias" against companies that want to go green, as evidenced by some laws and regulations) - Going Paperled (If companies do not properly back up their computer files, a system...

Words: 399 - Pages: 2

Premium Essay

Sustainable Business

...Sustainable Business Tammy T. Maden BA 317 International Management 21 April 2013 Instructor Lee Abstract Sustainability combines the principles of economic growth, environmental stewardship, governance, and social accountability. This Compare and Contrast analysis will introduce Managing Partner, David Blood's views on The Case of Sustainable Business. This review will include a brief description of what an International Manager may face in the business world and the duties of a successful International Manager. You will gain the knowledge of David's view, the International Manager, and how they relate. While corporate sustainability is not new, companies still fail to apply sustainability principals at the heart of the business. It should become part of the company's fabric and later an essential support for growth. David Blood, Managing Partner of Generation Investment Management, believes that putting together fundamental equity analysis and sustainability research throughout the process is a reasonable way to invest and provide superior returns to clients (Gresham College Lecture, 2008). He defines sustainability in both investing and business. I chose this video because it is about our future and how businesses could save the quality of life; this is what matters right now. It is very important in today's world because according to the United States Census Bureau, the population of the world as of this second is 7,080,247,340, in which one birth takes place...

Words: 2004 - Pages: 9

Premium Essay

Business Ethics

...Business Ethics One of the ethical challenges facing businesses today is hiring employees that are likely to support the company's ethics. A company can interview, review applications, resumes, references and work history to determine if a potential employee is qualified for a certain position. However, it is difficult to determine if the potential employee's business ethics are comparable with the company's ethics until the employee is actually hired. (Mayhew, 2013) Another ethical challenge facing businesses today is corporate governance. This is basically making sure that high level executives do not engage in unethical business practices. High level executives have a responsibility to run the business in an extremely ethical way. High level executives symbolize the organization and it's ethics. They are responsible for developing the behavior and practices for the organization's management and staff to follow. (Mayhew, 2013) Social Responsibility One of the social responsibility challenges facing businesses today is consumer skepticism. Consumers are unconvinced that organizations are simply acting in the best interest of the environment and the community when they attempt a socially responsible undertaking. Most consumers believe that it is a marketing ploy. (Toolkit, 2013) Another social responsibility challenge is making sure that projects are sustainable. An organization will take on a project when the financial conditions are good. However, when the...

Words: 272 - Pages: 2

Premium Essay

Examples of Possible Exam Questions Sustainable Business and Ethics Course

...Florverde certification set up in 1996 enables the thousands of workers involved in the production of export flowers to live and work in acceptable conditions. The certification secures the main USA market and maintain best sustainable practices through annual audits. The main areas for standards include: basic labor regulations, personnel management, work and social welfare, water and irrigation, intergrated pest and disease management, traceability and records. Applicable countries: Colombia Applicable trade region(s): CAN (Andean community) Application to the chosen product: 1. Describe in a much details possible the specifications (e.g technical or environmental) for each standard you have found and to whom they apply (e.g workers, machinery,..) example 1 for working hours, staff must not work than 48 hours per week and must be aged above 18 years. example 2 Website address(es): Possible market consequences for the supply chain: USA is the main market for Colombian flower exporters. The certification enables them to keep up with the ever increasing sustainable related import legislations. The association of exporters of flower have worked together to benefit all and create a sustainable platform for quality products and ethic production. The certification acts as a unique selling proposition and can allow at the same time for a diversification to other product lines or market countries. The certification is working with the other partners in......

Words: 456 - Pages: 2

Premium Essay

Business Ethics

... Every business has a first and primary goal to gain profit. To remain in business and grow the firm must take into account social responsibility and ethics. When an organization demonstrates that it is more interested in financial gain than in how it treats the environment, employees, and stakeholders it will lose financially. In order to balance the social responsibility and the desires of its shareholder for profit an organization needs to develop a strategic plan that thoroughly explains its ethical and social responsibilities to the stakeholders (Wheelan and Hunger, 2010). Senior executives, business owners, managers and leaders must understand social responsibility and ethics. By doing so they will understand the impacts these factors have on the success of the business. In today’s society firms must understand the concerns of all stakeholders on the organizations environmental impact as well as sustainability. Business ethics are the principals and standards that make up the acceptable behaviors of an organization. The acceptability of these behaviors are made up by the customers, government regulations, competitors, and society in general. Social responsibility and ethics are often used interchangeably but they do not mean the same thing (Crane & Matten, 2010). Ethics are based on the firm’s or person’s decisions that are defined as right or wrong by society’s standards. Social responsibility concerns the impact of the business’s activities on society. To fully......

Words: 1035 - Pages: 5

Premium Essay

Business Ethics

...|BUSINESS ETHICS | |Individual assignment | | | | | |Topic 1: The factors influencing corporate culture | |LECTURER: |Trangdtt | |STUDENT: |Nguyen Thuy Anh | |ID NO. |FB00163 | |CLASS: |BA0601.2 | I. NATURE AND BACKGROUND OF FIRM: The Coca-Cola Company is the world's largest beverage company and is the leading producer and marketer of......

Words: 984 - Pages: 4

Premium Essay

Sustainable International Business- Dutch

...different areas but we will discuss business sustainability. In 1987 the United Nations’ Bruntland Commission defined sustainable like this, “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” In a more practical business term it is the use of triple bottom line accounting which is a process by which companies manage their financial, social, and environmental risks, obligations, and opportunities. An even better definition is that business sustainability represents resiliency over time. This shows that businesses can survive shocks because they are intimately connected to healthy economic, social and environmental systems. Sustainability is also very complex because it borrows elements from four more established concepts of sustainable development, corporate social responsibility, stakeholder theory and corporate accountability theory. Another element of sustainability can also be explained with Michael Porter’s Shared Values approach. It is an approach to business where you not only create economic value but you also create value for society by addressing its needs and challenges. This is not social responsibility but a way of achieving economic success. This is at the core of what these companies do as a business not in the margins. When you look at sustainability though you must evaluate the history of it and where it fits into business practices today. The......

Words: 1285 - Pages: 6

Premium Essay

Business Ethics

...University BUSI620-D03 10/23/14 5. According to Milton Friedman, "Business has only one social responsibility – to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." Explain why you agree or disagree with such a statement. I disagree with this statement because individuals in the business world are giving different responsibilities on a daily bases and are challenged to sufficiently handle those responsibilities and economic gain or profits should not be their only social responsibility. As a leader (CEO, Manager, etc.) of a company one must be very responsible in the ethics and values of their business practices for the greater good of their employees, clients, community, and the environment. To have success in business being socially responsible a company must respond adequately to rising customer expectations, evolving employee goals and ambitions, tighter government legislation and pressure, investor interest in social criteria, media scrutiny, and changing business procurement practices (Kotler & Keller, 2012). Many corporations try to improve the long-term impact of their actions on communities and the environment by being sustainable, in which is their ability to meet humanity’s needs without......

Words: 810 - Pages: 4

Premium Essay

Business Ethics

... Name University Course Tutor Date Business Ethics Business Ethics Ethics can be defined as moral guidelines which govern good behavior. Therefore, business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It is increasingly being applied in businesses to guide their operations. It captures different aspects norms and values that govern the behavior of a business. For instance, it has codes of practices that are increasingly becoming popular. These cover different areas such as corporate social responsibility, environmental policy and actions, rules for personal and corporate integrity, dealings with customers and the supply chain. Business ethics guide how businesses and people should behave in the world of business or commerce. Ethical Theories There are several ethical theories that explain how people and business entities should behave in the society so that their behavior may be considered to be morally good. Some of these theories are briefly explained below in relation to business behavior. Utilitarianism This theory holds that an act can be judged as morally good or bad, right or wrong when it produces amount of pleasure or lack of pain for the greatest number of people (Sadler 9). Business ethics operates under greatest happiness principle. This implies that businesses and their managers need to maximize positive outcomes for the largest number of......

Words: 2968 - Pages: 12

Free Essay

Business Ethics

...Business ethics 1. Assignment 1: Questions 1) Analyzing the ethical frameworks needed in decision making, which ones best align to the eight ethical principles of the Global Business Standards of Codex.  Without doubt, there always exists a dilemma when company decisions are being made. It is for this reason that ethical frameworks are utilized to ensure that appropriate decisions are made in the organization. Ethics.ubc argues that ethical frameworks act like “snake detectors.” They are there to ensure that “snakes” in the organization are easily recognized before they bite. In layman’s language, they offer guidance when making decisions. Some of the ethical frameworks put forward include: * The utilitarian approach * Rights approach * Fairness approach * Common good approach * Virtue approach Utilitarian approach This approach basically focuses on the consequences of a particular action ( For example, it considers whether an action will eventually lead to greater good than other related actions. Therefore, the most ethical decision to be made will be that which will offer maximum benefits. Rights approach In this approach, the most ethical decision to be made will have utmost respect and protection for human rights ( In this case, people have the right to make their own decisions and everyone ought to be respected in the decisions they make. Fairness approach Just as the name suggests, fairness...

Words: 2984 - Pages: 12

Premium Essay

Sustainable Business Model

...The Need for a Sustainable Business Model Introduction Ten months may very well be a trend. A couple of years could be an aberration. Ten years however means it is time for a change. Since 2004 the manufacturing industry has seen some ups and downs, however more specifically to the firm, it has been a continuous down. The time is now to reverse that trend, and it starts with a new culture of sustainability. There is money to be made, and there is money to be saved. Under the circumstances of having little financial flexibility for investment and development, prioritizing the saving is paramount. Cutting down costs across the board, whether they are resources, expenses in travel, as well as energy, will serve to be prudent both short and long term alike. Furthermore, positioning the company as a leader in the market of sustainability, as an organization that is forward thinking, changes everything. Systemic and cultural changes will not only alter perception in the market place, but bottom line long-term concrete profitability. Companies worldwide have made this a focus, investing both time and money in strategies that address the competitive landscape shaped by resource scarcity, regulatory uncertainty and economic volatility. (MIT Sloan, 2012) No longer a buzzword, this is moving to the market norm. It is time to embrace it and begin to reap the reward. This is not only a strong strategic business case, it is imperative to compete. Hurdles The......

Words: 1117 - Pages: 5

Premium Essay

Business Ethics

...BUSINESS ETHICS Student’s Name: Ce Wang Student’s ID: 1226656 Instructor’s Name: Peter Goalby Course Name: New Advances In Business University Of Bedfordshire Date Assignment is due: 20/03/2015 Abstract Business ethics looks at whether the company is heading in the right course by adhering to the various factors such as integrity, fairness and reliability. The ethics set up by the organization plays a vital role in the hiring process and the business management practices. Running an ethical organization is vital in financial matters and in creating the morale and loyalty of the personnel. Ethics are also relevant to the business as it ensures that there is ethical behavior among the workers in the organization. Ethics are also relevant to the business as it aids in creation of an ethical organizational culture. Most of the organizations when posed this question believe that it is the employees who are chiefly responsible for ensuring that their work meet the ethical considerations. However, the employees are not the only ones responsible for business ethics, the employees need support from the management or from the employer. This paper has a look at the ethical issues surrounding the steel manufacturing industry and the Healthcare industry. It also looks at the relevance that ethics have on business, sustainability and corporate responsibility. The paper also looks critically at the connection of business ethics to the organizational culture. Lastly, it...

Words: 5432 - Pages: 22

Premium Essay

Banking and Sustainable Business

...BANKING ON SUSTAINABLE BUSINESS Understanding the social and environmental performance of our business clients is now a core element of risk assessments at ANZ. How a client identifies and manages these issues is just as important as the more traditional concerns of credit risk, quality of management and business strategy. Over the past five years, we have established a framework to help us better understand how the clients we bank, and the projects we finance, impact society and the environment. This framework 24 ANZ CORPORATE RESPONSIBILITY REVIEW 2008 assists us in managing challenging issues and making better decisions about the transactions we should or should not be involved in. This year, we’ve seen specific examples of how this work can improve our decision-making processes and encourage real improvement in our clients’ practices. “Our approach is not all about declining clients or deals. Instead, we will measure our success in this area based on how many businesses we help to transform.” — CHRIS PAGE, CHIEF RISK OFFICER BUILDING STANDARDS AND CHANGING PRACTICES ANZ released four social and environmental management policies in 2008 which set out the standards that guide our decision-making on transactions involving clients in sensitive sectors. We will use the policies as a framework for working with clients to respond to the social and environmental issues facing their business. The policies also help us meet society’s......

Words: 1918 - Pages: 8

Premium Essay

Is Business Sustainable?

...Is Business Sustainable? by megan51773 | Business is an artificial person and has responsibilities. While making money is an important result of a company’s existence, many people wrongly assume this is their sole responsibility. A business can be defined as a combination of the products and services they provide, the customers they serve, and its work force. A business of one person or thousands takes on the personality of those wihin. Its culture, morals, and ethics are defined by the actions of the people that execute its bidding; and as such can take on its own identity. Although a business is not made of living tissue, to those that work for it or consume their products and services, it is treated as a living entity; and can therefore take on a variety of real responsibilities. These real responsibilities are realized through a responsibility toward a business’s consumers, protection of the environment and the law. Considering the many differences between an individual and a business, it’s understandable that many people would be eager to accept the idea that as an artificial person, businesses have no responsibilities. Supporters of this view believe that business corporations have no responsibility to society beyond the law as they go about their operations. Their argument is that a business’s principal and overriding responsibility is to shareholders, and it is a responsibility to conduct the operations of the company in such a way......

Words: 1306 - Pages: 6

Premium Essay

Sustainable Business Practice

...A Research Paper on Communicating the Challenges and Benefits of Sustainable Business Practices by MA. AISSA V. ARMENA BSBA Professor AMA Computer College Angeles City 2011-2012 Abstract This research presents ways on communicating sustainable business practices effectively. It also defines what sustainable business practice is showing certain challenges and measures in ensuring an effective communication to consumers. Introduction Businesses used to stand out simply by being environmentally sustainable, but that is changing. Today, companies of all sorts and all sizes are playing up their efforts to save energy, reduce carbon dioxide, use more sustainable materials and streamline their packaging. Thus, being green is not such a unique thing anymore. Marcus and Fremeth (2009) noted that this enthusiasm for what they called “green management” came from people’s expectations as to how managers and the organizations they lead should conduct their business to protect the environment. As Ambec and Lanoie (2008: 46) noted, “firms are facing growing pressure to become greener.” Sustainability is defined in part by an effort to conserve natural resources and avoid waste in operations. Conservation and the more efficient use of resources naturally lessens the burden of economic activity on the environment and helps to ensure that the activity can be sustained over time because the resources required will not be exhausted. ......

Words: 2846 - Pages: 12