1. Performance-experience gap in the case study of Coca-Cola’s Water Neutrality Initiative
Coca-Cola is one of the largest beverage country in the world, which has more than 300 number of bottling partners and operates in more than 200 countries. Recently it faced an issue with availability and quality of fresh water. This was a mutual concern for the company as well as for the stakeholders. It was the expectation of the customers that the company should provide the consumers a product, which is free of contamination. The company was accused to have harmful level of pesticide residues, which affected the business of the company (Coca-Cola Australia, 2018). Additionally, the business of the company was largely dependent upon water resources; they approximately used 80 billion gallons of water every year globally. Only two-fifth part of the water was used in finished beverages, and the other parts went into manufacturing process. This affected the expectation of the customers, who assumed that they would face a major water shortage if this continues (Alabau et al, 2015). It was observed that 1 billion people were facing shortage of safe drinking water. It was studied that, by 2025, the world will face extreme water shortage, which could lead to rise in food pricing and diseases (Austin & Gaither, 2016). It was brought to public attention that the company had depleted the groundwater supplies for the people who were living near the location where their bottling plants were located. This had obviously created a gap between the expectation of the stakeholders and the performance of the company.
If strategic screen radar model is applied to the Coca-Cola’s Water Neutrality Initiative, six out of the eight environment of the model apply to the case (Schulte & Morrison, 2014). The six environments are social environment, political environment, geophysical environment, legal environment and customer environment and technological environment. The reason for applying geophysical environment is because public are concerned about the contaminated products and depleted water resources. Social environment can be applied because the company is facing an issue with the way they are using the natural resources of the earth. Technological environment plays an important role, as there is a need to implement an appropriate technology that could save water. Political environment is another strategic radar screen model that can be applied in this study. Law and policies differs in various regional government, which affects the business process in different countries. It may be easier to do business in a country, while in another country it may seem to be difficult. The allegation that the product of Coca-Cola was contaminated had resulted into losing of its customers, which can be considered as a customer environment of the strategic screen radar model. The company faced some issues in its legal environment as some government had taken legal action against the company.
TCCC responded justifiably by turning this public concern as their concern. They decided to take into considerations the views of their internal and external stakeholders by referring to their decision while solving the particular issue (Gaither & Austin, 2016).. They used an approach which would return to the nature an amount of water comparing to what is has used. They decided to decrease their water utilization, reprocessing of water for re-use, and adding to water assurance wanders. I believe the TCCC showed commitment towards the environment, society and to their customers appropriately. The team has presented a feeling of obligation towards the present and future population. This shows that they have improved with their setting of goal in the year 2010 (Marengo, Corea & Di Vaio).
Tobacco is the most commonly used substances for addiction in the world. It is a plant from the genus Nicotiana, which is known as N. Tabacum, and are native to the America. The leaves of the plant is dried and processed for smoking as cigarettes, pipes and cigars. Tobacco industry is comprised with the persons who are engaged in growing, preparing, shipping, advertising and distributing tobacco related products. There are several negative impacts that tobacco cause to the health of the people and the environment. The main identified issues of using tobacco as an addictive substance is its effect on health like cancer, heart, lungs and coronary diseases, increased blood pressure, contribution to poverty, and damage to the environment. It also risks the health of the people who breathes in the smoke of other people. Media plays an important role in promoting as well as controlling tobacco uses. Whereas, it spreads awareness in the people of the effects of tobacco smoking and passive smoking, prohibits smoking in public place, it also helps in publicizing the products.
1. Context
Tobacco uses has several issues in the health, environment and society. It has more than 4000 chemicals in its smoke, out of which 250 chemicals are extremely harmful and known to cause cancer (World Health Organization, 2013). . Tobacco is responsible for causing disease and deaths of more than 7 million people a year. It causes almost 890000 premature deaths per year by second-hand smoking. Tobacco growing, manufacturing and smoking has fatal consequences for environment. Apart from the direct health issues from tobacco smoking, the chemicals and fertilizers used for cultivating tobacco causes harmful effect on the environment and on the health of the people (Maynard, Munafò, & Leonards, 2013). The short-term economic benefit for farmers can cause long-term health and environmental issues. Farming and processing of tobacco has an effect on society. The labour-practice in this industry includes several child and women labour. They are exposed to a risk of nicotine toxicity, which is caused by dealing with tobacco leaves during the harvesting and processing, without any protection. Minors are attracted sometimes towards addictive substances; they tend to get addicted to tobacco without proper supervision. The ends and waste of cigarette are non-biodegradable, which is a hazard to human health and environmental contaminant.
The primary stakeholders in the tobacco industry are the managers, employees, vendor and customers. The secondary stakeholders in the tobacco industry are the Government and the media. The primary stakeholders are influenced in favour of the product. The managers, employees, vendors and customers acts in support of the promotion of the industry. The Government and media oppose use of tobacco due to its health and environmental effects. Government and media plays a role to prohibit the consumption of tobacco by spreading awareness.
The hazardous effect of tobacco has caused death to several lives and different severe diseases. No one can support their family consuming tobacco and let them have a life that is exposed to risk of cancer and death. Youngsters are mostly attracted towards addiction; companies are taking this chance to promote their product. Tobacco not only causes disease but addiction to tobacco can result the economic status of the family of a person who is consuming tobacco (World Health Organization, 2015). . When it becomes addiction, people tends to spend a huge amount of money for this substance. My family is strongly against the practice of tobacco consumption. They suppose addiction for a bad thing is always dangerous and can ruin the life of a person. There may be initial pleasure but that will ultimately lead to slow and painful death. My family believes that there should be a ban on advertising of tobacco. They often influence people to quit smoking and promotes ban on smoking in the public place.
From my perspective, I strongly support the opinion of my family. There should be strict legislative control or regulation on the growth, use and promotion of tobacco industry. The awareness should be made in public of its effect on health, economy, culture and environment. Addiction to tobacco has cause a danger in lives of youth, who are actually the representative of the society.
As an official of a company relating to tobacco products, I work in favour of the company. It is my job to be involved in the upliftment of the company. As a manager of the company, I work for earning profit for the company and be faithful to my job role. Simultaneously, being concerned about the harmful effect of tobacco, I do not promote smoking. I believe people should be aware of the consequences and then engage into smoking. There are several step which can be taken for the development of the company as well as for making the people aware of the disadvantages of smoking, such as:
In Canada, smoking has caused numerous premature deaths. The smoking rate in Canada, in 2015, was found to be 13% (Huang, Chaloupka & Fong, 2013). It was found in a recent study that 21% of the deaths over the last decade are a result of smoking, out of which most of the death was because of lung malignancy. In a recent study it was found that 1 in 12 citizens of Canada, during his or her lifetime, will develop lung cancer. In 2016, 16.9% of Canadians, who are aged 12 and older, were found to be a daily or occasionally smoker (Fooks & Gilmore, 2013).. The diseases caused from tobacco use still do not have proper treatment.
Government has taken some steps and made some legislation restricting use, advertising of tobacco. Recently, The Tobacco and Vaping Products act was enacted to regulate the manufacturing of tobacco products, and imposed some restriction on selling, labelling and promoting tobacco products (Savell, Gilmore & Fooks, 2014). There is Non-smokers’ Health Act, which puts a restriction on smoking in workplaces and public places. The Government of Canada’s Federal Tobacco Control Strategy has helped in controlling tobacco products. The Tobacco Products Labelling Regulations (Cigarettes and Little Cigars) has helped in lowering the smoking rates in Canada, especially among the youth. It provides that tobacco products should be packaged by a health-warning message. The covering should be made enhanced with graphics and colours (World Health Organization, 2015). Under the Tobacco Reporting Regulation, the manufacturers and importers are imposed with an obligation to provide the date and information of their sales, manufacturing ingredients and promotional activities.
To promote and control tobacco use, media has always played an important role. Media has expanded to various channels like, newspaper, radio, magazines, television and internet, which influences and regulates tobacco industry. Industries use force to use media to promote their products (Gallopel-Morvan, 2013). They use media as a tool to introduce their products to grass root level. Advertisements of smoking cigarette results in promoting smoking as a desirable thing. It is therefore required that the media should be cautious about the consequences they may cause by promoting cigarette in the life of the people.
To control tobacco use, media has taken some important steps to make awareness among the people, and put restriction on consuming tobacco production. The National cancer Institute presented the Tobacco Control Monograph series, which provides information about emerging issues in smoking tobacco, which are available online (Jolls, 2013). The ban AD, appearing in three quarters or more, is broadcasted in movies, which shows the real life consequences of smoking. It helps in warning people about the disease and consequences they may face. Celebrity figures are nowadays being used by the media to aware people of the harmful effect of using tobacco. With the intervention of mass media campaign, the behaviour of youth towards tobacco use can be controlled (Kirst et al., 2015). Such strategies can reach a large population within little time. The regulation on using smoking scenes in movies has now come under the supervision, which has declined the number of smoking in movies over the time. The message regarding consequences of tobacco use is widespread to the youth via internet and social media (Lu, 2013). Newspaper also includes coverage as to the dangerous result of smoking, which has helped in spreading awareness among the public.
Conclusion
Tobacco business is growing at an irritating scale worldwide. It is affecting the success and potentiality of every individuals. A proper check should be implemented by the law making authority controlling the effects of smoking and tobacco. Tobacco products should be taxed in a way that it reaches out of the affordability of the general public. To decrease the utilisation of tobacco products, it should be made sure that it is not available to the children and minors. For the development of the nation, it is required that cost collection should be utilized intelligently. Every business should pay notice whether there production is harming the society and they should always focus on the individual success rather than on their benefits. In my view, there should be much awareness on the dangerous impact of tobacco. As the tobacco products contains photos of the bad consequences of its consumption, it is up to the individuals whether he should smoke or not. One of the method which could be adopted for shielding individuals from smoking it is required that they are conscious about the consequences so that they reconsider before they consume the product. Additionally, a primary education about the consequences of smoking should be given in the schools so that individuals do not attempt to smoke in future.
Ethics is the rules of action or behaviour of individuals that addresses the ethical choice of an individual (Weiss, 2014). It refers to the human quality which lights up his concern regarding moral good or bad doings. Moral can be understood as a branch of philosophy which deals with the thought of right or wrong headings of a person (Trevino, 2016). Business ethics is a form of professional ethics which examines the ethical principles to deal with in the business environment. It can be applied to all conducts in business industry and are relevant to the individuals and to the organisation itself. Business ethics is the usage or ethical or unethical practices in an organisation referring to their contemporary standards, set of norms or values, principles to govern the actions within the organisation (Melé, & Sánchez-Runde, 2013).. It is essential for the business to consider what is unlawful or unfaithful in the opinion of the general population (Wohlpart, 2017). A moral framework exists in our population upon which the society relies. It provides a moral tie which makes focal strolls and individuals considers whether it is valuable or not. They are free to decide whether they should be removed or gotten a handle on. We are influenced to administer our fundamental human affiliations by our morality.
Ethics is a basic quality in human beings, which can be discovered all over the world (Hoffman, Frederick, & Schwartz, 2014). In the famous case of Chiquita Brands International, the brand was a distributor of nutritious and remarkable sustenance things (Jaksch, 2017). A paramilitary get-together, The United Defense Forces of Columbia, later articulated by the Government of United States to be a psychological oppressor association, went up against the affiliation. Chiquita made a beeline to make parcels to protect their agents from the mercilessness against them. In my perspective, it hard to an incredible degree to provide a thorough course of ethics for business standards in a manner which will help a general authority with the required qualities, practices and models of his nation sufficiently. At the same time, it should be watchful to the different nations while executing business attempts.
Keeping in mind the great benchmark on the off chance which was identified in the Chiquita International Brands case, the advantages were exposed to danger if illicit bits were not made, which could have further provoked the relationship to break down (Restrepo Amariles, 2015). If the bits were proceeded with, it could encourage unlawful fines. The affiliation expected that it may have to continue paying which was not a response for the condition (Alejandra Gonzalez-Perez, 2013). In a situation including a business setting, where associations are assumed by unlawful activities or unforgiving clash, they get related from time to time with the corrupted exercises to secure their points of interests. If it is continued, there might arise more incidents like Chiquita. There was a money related defenselessness which encouraged to submit illegal acts or violation of law by combining them in the exchanges with the general fear based oppressor association (Krka?, 2013).. There is a belief that social differences can create comprehensive models unbelievable in light of the manner in which every country has voting culture and apparent reactions about what business practices are appealing and accepted in their nation (Ni & Van Wart, 2015). Earlier, several attempts were made to create a game-plan for a generally accepted model, which had caused the course of action of moral issues in general association regarding culture sharing of particular respects. As demonstrated by social belief, critical quality starts to change with every culture then onto the association. Business practices are represented as a moral right or wrong action by the particular culture where they deal in. The U.S law prohibits American relationship from tracking in occupation or a disconnection in different nations as every now and then as probable reinforced in respect of social attributes and models. It can be ascertained that, it is necessary to correspond in the wake of setting a universal set of ethics to be practiced in business models in a case, then the social changes cannot be simply ignored which creates comprehensive standards checks irrational in the cooperative situation.
Corporations actually have a responsibility to influence or encourage ethics in a country in which they operates. Business are rising internationally and globally and the corporate companies are entering into the countries resulting into creating more cross cultural issues in the businesses. It should be considered what is ethical and what is wrong in the business conduct. For this purpose a standard of ethics should be observed by the companies in which country they are likely to operate. In modern times, policymakers and key deviser in every multinational corporations are not considering the ethics of the country in which they are conducting business. It is required for the customer based undertaking to adopt the ethics of the countries, where it deals in, to become widely accessible and acceptable. Nowadays, companies are trying to attack the global market where culture and conventions differ, the acceptance of universal culture will help in growing the business of the company. A moral good or bad perspectives should be followed up in the business operation. It is perceived by a large number of population that they are proportionate and they should be able to meet the open gateway. The decision makers of the corporations may face an ethical dilemma and implement the principles in every levels and operations at workplace. It is however difficult to enforce a set of ethics globally. The main reason behind the inconsistency is the difference in culture. For example, it is considered to be offensive and unpleasant to eat while standing in the society of Hausa which may offend the host and demonstrates a lack of respect for the sustenance. It is considered as eating with a villain or conferring santi. In Chinese society, a man could be seen as an epicurean who takes the last sustenance from the bowl or a plate without offering it first to others present at the table, it is said that he is likely to offend the liberality of the host. In the scenario of a tobacco organisation it is well known and accepted that smoking could be dangerous for a man and his long wellbeing. On the other hand, in various nations, smoking is a thing which is considered to be worthy and recognised for giving notably wellbeing to economy as well. In a corporation, every employee and the management is putting immense effort to balance the ethical behaviour within the organisation with their business interest. Corporations should embrace and admire the culture of the different countries in which they are conducting their business. It is the corporate social liability of the business to adopt the behaviour of countries to work in the country and grow the business. It is one of the right and responsibility of the corporations to accept the ethical behaviour of the place of their operation and the culture differences, which will help the organisation to rise globally and help them continue the business practices of their organization, efficiently and effectively.
Corporate Social Responsibility can be demonstrated as the activities of a company which they adopt voluntarily to operate in a social, environmental and economic sustainable manner (Ali, 2014). To promote the Canadian values in the international stage, it is important to make investment and operate in a responsible manner. It is necessary to contribute to the sustainable development of the communities that they work in a responsible manner. It is required for gaining success and growth of a company that they operate in a social, environmental and economic sustainable manner, transparently. It is the corporate social responsibility of an organisation to encourage social values (Wang et al., 2016). Environmental and social risk factors should be mitigated and managed in such a way that it helps in achieving the business to be successful all over the world. It is important to deal with the factors for the costs of the companies of losing the social license, in terms of both the share price and bottom line. A company which has established a social responsibility program, can achieve the trust of the consumer and build long term employee, which helps in earning brand reputation and creates a sustainable business structure (Öberseder, Schlegelmilch, & Murphy, 2013). It helps in providing certain benefits to the business in respect of:
Customer relationship: the social responsible manner of a company makes in more popular to the customers. For example, a company which is involved in charity can catch the attention of more customers. The sustainable responsibilities of a company increase their reputation. Customers are eager to pay more for such brands.
Risk management: Companies are exposed to risk at every level. It is lot of efforts to earn reputation in the market for a company. It does not take long time to ruin the reputation it has earned. The responsibility of a company towards social issues, decreases the chances of negative social incidents which damage their status.
Innovative capacity: Innovation helps the company to grow in sustainable environment.
Cost saving: The investment in training and recruitment cost is reduced as well as the information and advertising campaigns.
Access to capital and new business opportunities: Being a sustainable and responsible business may help it in gaining attraction for the investors. A company may identify new business opportunities like developing new service or product by being socially, environmentally and economic responsible.
Retaining talented staff: By acting in a responsible and sustainable manner, a company may recruit new employee and retain the existing staff. To reduce the cost of recruitment and training, employees should be inspired to stay longer in the company.
It is known and accepted by everyone that businesses like Walmart, Target and other Retail Giants has an important part to play in the society. Their marketing strategy has an excellent power to influence the activity of the people through the marketing policy. Internal and external stakeholders are influenced by this issue.
Ethical policy of a company has always impacted the attention of the customer positively. For example Marks & Spencer has worked in collaboration with some factories to develop their process efficiency, through the sustainability framework and ethical model factories, so that they can reduce the working hours of the staffs and protect the quality of their product. As with globalisation not only has provided new challenges for the businesses, the social and environmental responsibility gives more access to promote brand value and safety of workers.
The responsibility of the external stakeholders is to reduce the use of plastic, limit the use of energy and remove the landfill waste. For example, Adnams invested in creating a new eco-efficient distributive centre to decrease the amount of energy use. Dow had invested $1 billion over past 10 year which has resulted in reducing their energy consumption and has saved almost $7 billion from the developed energy efficiency. The external stakeholders are:
Companies need to allocate a part of the profit to the benefit of the society. Doing this will help them to create a good reputation and image in the market.
By working in an effective and efficient way, Walmart, target and other big retail stores have achieved a great success in their fields. Competition is increasing in the market day by day, by the growing demand in the market. High competition results in uncertainty and instability in the economic growth of the company. It is required that companies make more commitments and work hard to overcome the economic uncertainty (Fleming, Roberts, & Garsten, 2013). Companies should receive encouragement from other corporations. Corporations can achieve economic stability by concentrating on the three parts that are, utility, justice and rights. These three method of ethical reasoning can be applied in Walmart and Target in the following way:
Utility: for the growth and success of any business, it is necessary to compare the cost and related benefits. The cost and its related benefit can be economic, social and humanitarian as it also compare the benefit of policy and decision making and the action taken for cost. Responsibility of measuring the cost and the related benefits is imposed on the internal stakeholders. The benefits should reflect in the financial gain of the company, such as profits, sales and wages paid as well as psychological satisfaction and morale of the employees. Managers of a company is responsible for the decision making of the company and the skills and competencies required to make ethical decision on a daily basis. As Walmart and Target are widely spread chain, it is difficult to precisely measure these factors. However, the corporation has shown good result according to the utility cost, they have successfully provided better benefit to their stakeholders. The focus of utilitarian reasoning is to consider the effect of the action taken by the managers. According to utilitarian reasoning, an action which is rational, ethical and suitable, should be taken into consideration for the benefit of the company.
Justice: Justice within the corporation is one of the ethical way of reasoning. Irrespective of employer, employee or customers, everyone in a company needs justice regarding their pay scale, the price and the tax deduction on the purchasing of a product. It can be said that justice has been provided if the benefits and burdens are distributed equally.
Rights: Another way of ethical reasoning is right. Right is the moral or legal entitlement of a person which he have obtained in a certain way. The basic rights of a person are the right to basic service, right to life and liberty, right to be heard, right to freedom and right to a sustainable livelihood. Managers may face challenges while deciding conflicting rights. However, they are responsible to take due care of the rights of the employees and the customers.
Globalisation has effectively helped in taking advantages for production relating to labour and capital. However, observing the three methods of reasoning, it looks like justice and rights suits most in the given situation.
Globalisation is responsible for taking business to a level where businesses has reached to global markets. One business practice may be considered as right in one country and wrong in another country. Simultaneously, corporate social responsibility needs that a firm should make products which are of high quality and available at a reasonable price (Cha, Yi, & Bagozzi, 2016). Walmart has been successful in providing products with high quality and reasonable price to the customers. This impacts the customers as they can enjoy clothes, groceries, household appliances, electronic products and pharmacy. Positive CSR evaluates the company for the customers. For the customers, companies that have positive CSR, has a better reputation than others.
Social responsibilities of a company earns benefit for it and for the society. Stakeholder or stakeholders are the members of the community who represents the community (Ditlev-Simonsen, 2013). Community, in other words, is a group that is affected by the action of an organisation. Community includes site community, employees and the communities associated through the cyber space. Businesses are obligated to meet the expectation of the community, and to abide by the laws. They are also responsible for assuring the quality of life and the future of the environment. It may incorporate financial advantages for instalment expenses. Walmart makes a contribution to the society through corporate social responsibility as:
There is an interdependency between corporations and society as the corporations needs the help of society to grow as it needs the manpower. Corporations are dependent upon society for marketing their products. The society needs the corporation as it helps in developing the society in many ways.
Every business organisation has a positive and negative effect on the society along with their partners. The corporate social responsibility analyses the role of the business in the community and implements and influences their positive results in the society. After globalisation, businesses are not only limited to one nation, rather than have reached international boundaries. Nowadays, companies run their business worldwide. To manage a business which acts internationally, they are required to observe strict rules and regulations. They need to make effective policies for improving their functions. Businesses, after being globalised, use rare and limited resources to produce goods and services to fulfil the needs of the customers, which directly or indirectly impacts the society (Brown, & Forster, 2013). Walmart, Target and other retail stores are being engaged into business with various counties. Due to the variety and differences in the legal, political and economic systems and cultures in every country, doing business may differ in one country from another country. They have to act in compliance with the socio-economic culture of various countries for their development. To make a business successful and make it eligible for the competition in the international market, businesses needs to follow some ethical and legal policies to overcome the negative effects of CSR that are:
To overcome these impacts, all the countries should follow the rules and regulations of the independent global bodies so that they can promote their business globally and sustain a socio-economic development, globally.
Clean cook stoves and its adoption in the developing nations could address certain global environmental concerns such as climate change, ozone depletion and declining water resource and biodiversity. In today’s world, clean cook stoves has been adopted in many household for use in developing nations, which has some short-term and long-term effects on the environment. The main attribute is that, cutting trees for the purpose of producing wood or charcoal could lead to deforestation, watershed degradation and loss of biodiversity (Bonjour et al., 2013). The use of animal dung and wood as a fuel for cooking creates black carbon or soot, which releases into the atmosphere exceeding the health hazards and is responsible for contributing to global warming. It is next to carbon di oxide which cause global warming. However, it gets washed out unlike carbon di oxide, within days or weeks. Nevertheless, it contributes to global warming, climate change and ozone depletion in a significant way.
There are many companies which are associating with Global Alliance for clean cook stoves by evolving certain alternatives to the open cook stove. Some of them have eliminated or reduced the environmental hazards in the nations. A stove was designed only to burn the charcoal, a fuel which was used by 30 percent of households in Ghana, as proficiently as in an open fire, which could reduce the impact in the environment (Lee et al., 2013). Another company has also experimented with the ways to harness the power of sun, which is a complete renewable, free and clean source of energy to be used for cooking purpose. It has the potential to eradicate some of the environmental impacts which are expressed above.
With the increasing improvements and innovative ideas in the technologies, the opportunities are also increasing for developing nations and companies to take a step towards innovation and tackle the hazards in the environment.
Suraj Wahab is the mastermind behind the innovative ideas of clean cook stove, who opened the company called Toyla Energy Ltd and started with the process of manufacture in the Western African countries of Ghana with an enormous labour force which provides employment. More than a number of 1 lakh stoves were sold within a year which helped the company in producing more than a quarter of their earnings which in turn helped in keeping the price low for their customers (Malla & Timilsina, 2014). . The wide adoption of clean cook stoves in the developing nation could also address the concerns of poverty and economic development such as, carbon neutrality, industrial ecology, technological innovation and world inequality (Martin, Hollingsworth, & Ramanathan, 2014). To address these concerns, the sustainable development would require technological cooperation through the long-term corporations between the companies in the developing and developed countries for transferring environmental technologies (Simon et al., 2014). The use technologies which have addressed to the environmental concerns are associated with many social benefits as well. In a society where more than 80 percent of the people lived on just only two dollars a day or even less, these technologies like increased fuel efficiency allowed the families to save almost ten dollars per month (Urmee, & Gyamfi, 2014). This is one of the significant movements which is required to eliminate world inequality in wealth in respect of income and livelihood.
As the companies are investing in the R&D into the clean technologies, it also has spilled over into effects that could result into the development of universally accepted clean technologies (Anenberg et al., 2013). This could revolutionize the producer and consumer behaviour in the developed nations also. This movements might help in paving the path for the industrial ecology which is being used by companies worldwide in various nations, regardless of any global status, and a widely appreciated goal of carbon neutrality in the business practices (Palit & Bhattacharyya, 2014).
Trust and respect is the core value of HP. They work in more than 170 countries following their main objective is to create a culture built on trust, equality and dignity for all. Sustainable development strategy of HP is to maintain their corporate objectives to meet the needs of the client, developing profitability and business stability by engaging their people. Their principle of implementing the development policies represents their commitment toward innovation. A responsible business management practice embodies their commitment to the environment, society and integrity. Through the policies they have adopted, the sustainable development and respect towards human rights can be ensured to the society at large. The CSR commitments of HP includes, but not just limited to, healthcare, education, energy and climate change, respect for human rights operating with sustainability and responsibility and acting with integration.
The three main external forces which influenced the shift of the company towards more environmentally or socially responsible business management practices are:
It is very important for a company to meet the demand of their customers and maintain a good image in their eyes. Their innovative spirit is evident in their service-based solutions, which helps the customer to save money and lowers their environmental impact. Keeping in mind the growing demand in the market, they invented solutions like Managed Print Services and Device-as-a-service to provide their customers with the latest technologies. The company makes sure that the resources are not wasted. The technology they had used in in MPS, reduces the printing related energy usage up to 40 percent (Fieseler & Fleck, 2013). The paper waste was reduced up to 20 percent in this technology. Similarly, they have invented HP Instant Ink, which ensures that the user never run out of ink at a wrong time.
Corporate social responsibility is a concept that the company applies in their business operation. By way of this, the company achieves a balance of social, environmental and economic imperatives (Kolk, 2016). HP has adopted and implemented a moral working standards. It has offered an initiative through which they provided technological solutions to the disadvantaged and isolated rural groups. It has received the awards of 2018 energy star partners for being energy efficient. The company has a recycling programme through which millions of recyclable waste like hardware and supplies was collected.
The company keeps a proper check on the work system of the company. They follows a strict rules for the scarcity of natural resources. They consider the bad impacts the working of the company can put on the environment like disposal of waste in water, emission of dangerous gas in the environment. Government has imposed several regulations to protect the environment. HP has a policy to comply with the laws of international standards and avoid complicity in the violation of human rights. They take prompt action when an allegation has been lodged. They have included in their standard of business conduct, the rules relating to dignity and respect of the employees, fair employment and equality at workplace, ethical behaviour and anti-corruption and standard safety and security.
The internal forces of a company has an impact on the initiative of the company to a sustainable development. The two important internal factors that are responsible for the developed business management practice of HP are:
Sustainable strategies can make its way up to success by the help and collaboration of the stakeholders that includes, the employees, employers, retailers, wholesalers, customers and others. The emerging trends, challenges and innovative solutions can be anticipated by the help of the stakeholders. The expertise, sphere of influence, willingness to collaborate provides a valuable insight for the improvement of the business. HP launched a national guidelines for energy management under the influence of the stakeholders.
To make the business practice of a company more environmentally or socially acceptable, the administration of the company plays a significant role. The administration needs to be proper and systematic in order to fight with the competition in the market. HP was the first company to publish a carbon and water footprint. They have set a goal for reducing GHG emission. The administration works in an integrated and fair way. The Executive Leadership team has the responsibility of sustainability for the business. There is a sustainable strategy, which is set by the Chief Sustainability and Social Impact Officer, Director of Privacy and Social Responsibility, Global Head of Product and Service Sustainability and Compliance that is driving progress throughout the company.
Sustainable development is way to balance the needs of the people while ensuring protection to the environment. The policies that the company has adopted for environmentally sustainable business management, has avoided 1.05 million tonnes of Carbon di-oxide emission since the year 2010. The company has received around 3 lakhs tonnes of hardware and supplies recyclable waste since 2016 (hp.com. 2018). . In 2017, 18 thousand tonnes of recycled plastic was used in HP products. The developed policy has increased the average supplier performance on sustainability scorecard in 2016. The company has maintained the zero deforestation policy by HP brand paper and has developed a plan on packaging supplier performance to drive progress. The operation strategy has also initiated renewable electricity use, which has reduced the electricity waste to almost 50% (Li, Yang, & Lam, 2013). The company has contributed to an environmentally responsible business practice by reducing material intensity in the personal system products and printers. HP Office Jet Pro X is known to be the most energy effective printer in the world. In 2015, suppliers has prevented 80 thousand tonnes of Carbon Di Oxide emission.
Technologies are not only important to support the business but also to power the business. Energy and resource efficiency helps to control and reduce the costs of the business and plans a sustainable growth (“Sustainable Impact Report”, 2018). HP has taken some initiatives in producing technologies that supports green environment. Some of the noteworthy initiatives are:
With the help of internet, HP has made a way to go paperless and it has managed to provide information to their customers over Emails and this way the company has reduced deforestation.
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