It is important to promote sustainable consumption along with production for any organization for the purpose of achieving long term economic growth consistent to the social and environmental needs (Erdelyi, 2013). Majority of the policies framed by the government emphasizes on minimizing the effects of unsustainable practices indulged into by the organization for production through imposing regulation sanctions and taxes. Ethics involve the moral judgments of individuals in relation to what is right and what is wrong. Decisions which are taken in relation to an organization are by its members who are individuals or groups. The culture of the organization influences whoever takes such decisions on behalf of the organizations. It is not a secret that in order to be successful a business must have the flexibility to change and adapt with the demands of the market. All businesses who are aware of the present market condition are aware of the fact that staff, investors and customers are becoming increasingly interested in sustainability and the impact of the business on environment. Companies are taking support of innovative processes to address the ethical and eco-sustainable issues as well as analyzing the impact of their activities on the environment and future (Hackney & Butler, 2017). Adopting such strategies for the purpose of sustainable development and analyzing their own activities does not only convert the businesses in a modern venture but also will tune with the customers along with saving long term cost and enhancing business reputation. There are a lot of concepts behind the concept of ethical use and eco-sustainability provided by different authors. It is difficult for the businesses to understand the real definition of sustainability to derive the various benefits out of it (Savoia, Stefanovic & Fragassa, 2016).
The environment is degrading at a very rapid rate and global warming and climate change is posing serious threat to the environment. These issues have become so prominent now that almost all humans are aware about it. The risk which is posed to the environment by global warming and climate change is predicted to have a fatal effect on the planet in the future through the rise of sea levels and hostile climate conditions (Rose, 2014). The issue demands rapid action especially from the organizations whose activities are a major contributors to environment degradation (Yang, Newman & Forlizzi, 2014). In the light awareness being spread about sustainability the consumers and investors have also become aware of such issues and want to be associated with organizations who are taking reasonable steps to address the situation. Therefore to adopt with the changing market conditions the organizations are striving to incorporate sustainable practices into their activities (Popa & Popa, 2017).
The purpose of this paper is to identify and analyze strategies which organizations in New Zealand implement to address ethical and eco-sustainable issues. The paper deals with specific organizations of the country and reviews their practices with respect to ethical and eco-sustainable issue and compares such strategies to the best practices related to the areas in order to analyze them. The paper also provided recommendation for the organizations with respect to strategies for addressing ethical and eco-sustainable issues.
The concept of eco-sustainability in NZ is being recognized increasingly as good practices. The government has made a few goals to address sustainability. According to Chkanikova & Lehner (2015) sustainable development is the process of synchronizing principles for the purpose of meeting human needs along with ensuring the capability of the ecosystem to provide ecosystem services and natural resources upon which the society and economy depend. The goal of this process is to initiate a state of society where the requirements of humans are met along with not compromising with the stability and integrity of the eco-system. Mostly the concept of related to sustainable development is derived from the Brundtland Report 1998. However ideas about sustainable forest management also add up to the concept. Through the development of the concept its focus shifted to social and economic development along with the protection of environment for future generations.
The United Nations in the year 2015 provided for up to 17 sustainable development goals along with 169 targets. These goals and targets provide for a sustainable development universal agenda globally which are called agenda 2030. New Zealand took the initiative to contribute to the achievement of goals through combination of international leadership and domestic action on global policy issues. For the purpose of achieving such goals the government initiated a cross-governmental effort (Starik & Kanashiro, 2013). The goals were reviewed with respect to the existing priorities of the government. The government have identified specific issues such as growing the economy, improving the living standard, health and education, creating jobs, increasing affordable housing supplies, encouraging women leadership and most importantly protecting the environment (Brookshire, 2015). As the government recognized the importance of sustainable development within the country the organization had been imposed with a lot of regulations and targets they needed to fulfill in relation eco-sustainability. Mostly all organizations across the country have adopted polices and strategies related to addressing ethical and eco-sustainability issues (Mason, 2015).
As provided by Touboulic & Walker (2015) green economy is a mix of six primary sectors namely, green buildings, renewable energy, sustainable transport, waste management, land management and water management. In NZ organizations have initiated strategies to target such areas of economy which are specifically associated with their operations (Hansen & Wethal, 2015).
Air New Zealand is the flag national career of New Zealand and one of the biggest organizations in the country. The organization states that it is aware that its success is linked to the success of the country as it operates in a large scale. The company for the purpose of addressing the ethical and eco-sustainable issue has set up an sustainability advisory panel. The panel consists of internationally renowned group of external subject matter experts meeting on half yearly basis to provide advice to the company on sustainable development. The CEO of the company is also a part of such advisory panel. The organization is very serious with respect to the issue had had published it first sustainability report in the year 2015. However specific reporting standards have not been adopted by the organization although it claims that it has abided by international reporting structure. The company is committed helping customers minimize the effect of air travel on the environment. The company has adopted a carbon offset program. Through this program the organization provides an opportunity to the service users to offset carbon emission in relation to the organization. The organization is very serious in relation to carbon emission offsetting. In the aviation industry carbon emission is generated from the use of fuel for the purpose of airline operations. Offsetting of carbon involves the use of carbon credits to ensure that individuals and business provide compensation for the businesses associated with travel in order to meet the carbon reduction goals of the company along with the move to a low carbon economy. The strategy comes into the context as soon as service users book a ticket online. The cost of offsetting carbon emission cased by the individual customer is automatically calculated and projected. In case the customers want to offset the carbon emission caused by them the cost of it is deducted along with the booking the total amount for the flight. The organization purchases offset units on behalf of the customers by using such contributions. The company does not provide refund for the offsets purchased by them for any reason. For the purpose of calculating carbon emission by the customers the organization takes into account two key factors. These factors are the Air NZ specific CO2 emission factors and the distance travelled by the service users. The emission factors are derived from the information collected in relation to the previous financial year of the actual used fuel across various fleet types and weight of cargo and number of passengers carried. The factor also takes into account the way in which the passenger is travelling which is in business premier class, economic class or pure economic class as the space and weight allocated to the customers is altered by it. The organization reviews the factors on an annual basis.
With respect to the NZ Emission Trading Scheme the organization has a duty to offset emission related to domestic flights. Presently the organization is imposed with a 67% obligation and organization has met it entirely, that to by not imposing a separate charge on customers. The company through the emission calculator enables the customers to participate in additional and voluntary carbon offsetting beyond the ETS obligation satisfied by the company. The cost of purchased offset unities reflects the price the organization paid in relation to the carbon emission offset program. The costs of emission vary overtime with respect to the units. The online calculator initiated by the organization adjusts in accordance to the variations in carbon market price. No administrative or any kind of fee is charged by the organization and all the money including the net taxes contribute towards the purchase of emission units.
Through the policies which have been initiated by the organization in relation to addressing eco-sustainability and ethical issues it can be made derived that the organization is serious with respect to the particular areas. The best thing the organization has done in order to address these issues is to set realistic targets (Sustainability – About Air New Zealand | Air New Zealand., 2017).
For the purpose of ensuring ethics the organizations take the help of a code of conduct. The code of conduct sets out specific actions which the employees of the organization have to undertake while dealing with each other and with the customers and suppliers of the company. Mostly all large organizations in NZ have a well-established code of conduct in order set out standard of dealings for their employees.
The scenery and environment are the primary strengths for the country in relation to the international visitors. The need for eco-sustainability and ethics in relation to the tourism industry is mandatory. There are various organizations which are associated with the industry. One of the steps which have been taken by the tourism organizations in NZ is the Green Globe program which is also promoted by an international organization have the objective of sustainable travel and tourism. The program includes a worldwide certification an benchmarking system for tourism and travel organizations in relation to a triple bottom line of social, environmental and economic management. The participant in this program comes in all sizes and shapes form some of the most significant hotel brands in the industry to small track operators. The Green Globe Program is underpinned by the Green Globe standards which forms the fundamental to standardize an operations social and environmental performance. Every participant of the program is bench marked against particular sector indicators of benchmarking must suitable for their operations. Through the selection of this strategy the certified and bench marked participants and travelers are directed towards the support of those companies which have showcased a strong desire and commitment towards sustainable practices.
Another strategy adopted in this sector is the Environmentally Sustainable Tourism Project. This program is operated with a helping hand from the NZ government. The project is built upon on a successful pilot program in Northland. The program includes the enhancement of performance related to environment with respect to the participating tourism operators. It also includes determining methods of enhancing capability of businesses round sustainable practice, increasing number of operators who adopt sustainability, providing support to the 100% Pure NZ brand and becoming regional experts with respect to sustainable business practices.
The industry has its very own code of ethics setting out conducts which the organizations are expected to follow in relation to the consumers, the employees, the society and the environment. Ahipara luxury travel which is one of the major players in the NZ tourism industry provide through its code of ethics and itineraries that they are more committed towards taking actions rather than only talking about it which is a very good example of the use of leadership and motivation theories. The company states that its commitment towards ethics and the environment is not only limited to planting trees and donating for worthy causes but also taking the overall responsibility towards the planet, their staff, suppliers and the society as whole as appropriately as they do in relation to the clients. The company also boasts of addressing such responsibility in the right way by filling all the actions with correct sprit and continuing it personally. Theories of sustainability tries to integrate and prioritize social response to cultural and environmental problems. On the other hand economic theories strive to protect financial and natural capital. An ecological model strives to enhance ecological integrity and biological diversity. However to ensure best possible results for businesses a compact theory is required to address it profit making requirements along with fulfilling the corporate social responsibility.
The renewable energy sector in NZ is primarily associated with electricity production. The sector mainly relies on the use of renewable energy for production in form of wind energy, hydropower and geothermal power. This makes the country one of the lowest emitters of Carbon Dioxide in the world. The sector heavily relies on renewable energy and has not shown any losses in relation to profits during the last decade. However it has increased the cost of production and operates against the theory of consumerism which provides for the support and protection of consumer needs. However as the modern day consumer have shown increased interest towards green economy the use of renewable energy is very less likely to cause any financial problems to any organization.
The green building market in the NZ is developing gradually and becoming a major part of the construction industry. The industry is playing a major role since its inception in changing practices across the building sector. The New Zealand Green Building Council (NZGBC) has introduced rating tools such as green star for the purpose of bringing major changes to the construction sector in NZ. The NZGBC has provided popular tools within the industry which have changed the language of professionals working in it. After the global financial crises which shifted the focus of organizations from sustainability to productivity the construction industry was majorly focused on productivity. However there has been a shift towards the importance of sustainability through the strategies imposed by the NZGBC. The main strategy which has been introduced by the council is a rating tool. As provided by Van & Slawinski (2015) assessing a strategy at regular intervals makes its implementation more effective. Partnerships and stakeholder engagement as stated by Hull et al., (2016) very effective measure for the proper implementation of a plan as increased partnership and engagement provides more support to the initiative. The NZGBC in relation to this has acknowledged establishing a strong relationship with the suppliers of the sector in order to see better relation between the clients and the tenants.
The transport sector one of the most carbon emitting sector where the use of fossil fuel is very high. Eco-Sustainability in the transport sector is very much required towards the establishment of a green economy. One of the companies in NZ Mainfreight Ltd sees climate change as a major issue surrounding businesses, governments and the planet as a whole. The organization accepts that the operations of it are associated with generating carbon emissions. Therefore the company has strategies in place to reduce the emissions while maintaining its competitiveness and providing the best quality services to the customers. The company does it through measuring carbon emission generated by it across the country and finding best alternatives for such emissions. It strives to move domestic freights through rail as 4.6 times more emission is caused by trucks. According to the theory of capitalism the main motive of a business is to make profit, the company not only reduces it cost by transporting freights through train but also ensuring less emission and environmental sustainability (Sustainability | Mainfreight NZ., 2017).
According to Ferrell, Hirt, Ferrell (2016) most organizations operating in NZ have incorporated these principles in some way or the other into their operating strategies. About 60% of the overall energy supply of NZ comes from fossil fuels like gas, coal and oil out of which 40% of the energy in imported by the country mostly in form of oil. The country aims at achieving 90% of its electricity production from renewable sources however there is a proportionate decline in the energy derived from renewable resources in the country. In 1975 90% of the electric production resulted out of renewable energy whereas in the number declined to 74% by the year 2015. One of the largest increase in emission is seen in the electric sector since the year 1990. However in spite of the decline no new hydrogenation plants have been produced in the country. The organizations working in NZ have indentified and initiated strategies in relation to a few areas such as emissions, transport energy efficiency, housing energy efficiency, land use, environmental monitoring and biodiversity. As provided by Gibson (2007) the real risk which is faced by the country as it comes out of the period of recession is that the country is going back to the mediocre economic performance which has been identified in much of the recent past, the country has to do much better than just muddling through.
One of the major trends which have been identified in the country with respect to eco-sustainability is that the organizations are spending huge capital towards establishing an infrastructure for green economy. As provided by OECD economic growth in the recent years has been much faster in NZ than any other OECD country. This is a significant proof that the strategies which have are been adopted by the organization towards eco sustainability are turning out to be a success for the country.
The companies are taking measures to reduce the intensity of the carbon fuel usage and adopt the use of Hydrogen, Bio fuels, CNG and electricity. According to Knapp (2007) the strategy provides energy security through diversification, reduction of oil dependence and undue oil price exposure however it also initiates technological spillover such as battery technology for consumer electronics. The strategy ensures health benefits to the society through reduction of urban air pollution by the use of CNG and Bio fuels, however its net effect is not clear. The use of hydrogen and electricity reduces mist pollutants however the shift to diesel increases pollution potentially. The strategies by organizations also induce road safety and enhance health via noise reduction. As provided by Monin (1999) leadership is one of the main elements to ensure the best possible implementation of policies and strategies takes place. Without leadership even the best polices for addressing an issue fails. According to the transactional leadership theories the behaviors of the leaders have a strong impact on the followers. Therefore the better the leaders in the organizations the better would be the implementation of policies and procedures by it. The leaders must therefore be able to find a way to punish or rewards its followers to ensure the best possible outcome.
Organization ethics are guidelines, standards and principles through which businesses operate. Ethics are demonstrated best through an act of integrity, honor, compassion fairness and responsibilities (Martínez et al., 2015). Ethics in an organization have to be observed in relation to both the internal and external environment. When an organization acts in accordance to ethical standards they are successfully able to comply with the legal requirements and therefore they can emphasis on core activities rather than fearing noncompliance and penalties. Ensuring ethics within an organization is not easy as the major purpose of a business organization is to maximize profit (Sah, 2015). However in the present market the awareness in relation to ethics has increased and mostly all organizations have incorporated strategies to address ethical issues within and outside it. Mostly organizations ensure ethics by complying with the legal provisions and raising awareness. This includes restraint from anti-competitive activities and complying with corporate social responsibilities for the organizations (Michaelson et al., 2014).
There are daily reports in the media in relation to public deception and financial misconduct on the part of the organizations. These include the concept of insider trading, outlandish executive pay and fraudulent accounting which are scaring the business landscape. However the crisis of organization is way more spiritual than it is financial. There would be a no better time to save the corporate soul. Batstone (2003) have provided with eight principles for the purpose of creating and preserving profitability and integrity without suffering losses.
As provided by Allan (2013), there is no consideration of ethics in the modern world which is full of the concept of capitalism and the major focus of the organizations in only to make profit. The principles of sustainability and ethics are also involved so that the organizations can adopt to the changing need and awareness of the consumers related to ethics and sustainability. However as such issues have been identified by the modern businesses they have implemented various strategies to incorporate ethics and integrity into their operations. Subsequently the aim of an organization is to make profit and studies have provided that organizations who depict themselves as good corporate citizens by abiding with the principles of corporate social responsibility make more profits as compared to those organizations who don’t (Trevino & Nelson, 2016).
One of the majorly used strategies for ensuring ethics into an organization is through the use of feedback. According to Corey et al. (2014), feedback is a strong force which helps not only to access a particular situation, operation or culture but also provide ways in order to enhance them. Most of the organizations in NZ have a some sort of a feedback system within them which along with the other components of the organization also measures how ethically the organization is working (Cohen et al., 2015). For the purpose of being effective the feedback within an organization has to not only be limited to the members and employees of the organization but also to the creditors, supplies and the other stakeholders such as the society (Armstrong et al., 2015). The strategy related to the feedback also show the seriousness of an organization in relation to ethics and integrity to the society and the overall value of the organization is therefore enhanced (Dierksmeie et al., 2016).
The organizations in NZ have already been imposed with several regulations by law to be transparent with respect to their operations and make periodic disclosures as and when required. The mere compliance with the system ensures that the organizations are transparent (Ciulla, 2014). However various cases are show by the media concerning the breach of ethical and legal responsibilities by the organizations. There are various theories which exists in relation to ethics but when it comes to organizations theories which are specifically associated to business decision making are appropriate to be relied upon. One of such ethical theory is that of virtue ethics. This is an ancient ethical theory which is based upon the fact that a person must embody specific virtues such as honesty and diligence while staying away from its counterparts (Ferrell & Fraedrich, 2015). No ethical theory can be sufficient in the real business world for all situations. One of the best ways therefore is to analyze specific situation in the light of the ethical theories available so that the best results can be obtained (Warren, Gaspar & Laufer, 2014). For example while making a business decision a decision maker may ask himself various questions in relation to the decision such as is it in the best interest of the company, the stakeholders, the creditors , the society and the shareholders, the impact of such decision on the community, the environment or the employees. If such considerations are appropriately made by the decision maker it is likely that the decision taken by him would be an ethical decision (Kangas et al., 2016). There are various ethical problem solving models which are available to the business organizations working in NZ and all such models are mostly based on evaluation of the consequences of one decision over another to choose the most appropriate course of action. Another consideration which is required by the organizations in relation to the ethical strategies is related to compassion (Beeri et al., 2013). It has been provided by Pullen & Rhodes (2015) that compassion relied upon solely by the business will never result in financial gains. However the element cannot be ignored totally while making an ethical decision and has to be considered along with the other elements to extract an appropriate decision. According to a study carries out by Anderson (2016) for the purpose of assessing the situation of business ethics in NZ organizations in relation to lower and middle level managers it was clearly indicated by the survey that very little priority is given by the organizations in NZ to ethics along with other elements of corporate culture. An unethical environment is created because of pressure from top along added up with ruthless completion and organization climate. The study also depicted that during the past decade ethical standards in NZ have declined (Wieland, 2014).
Conclusion
Ethics and eco-sustainability are a significant part of the modern day business. According to the theory of consumerism the businesses must strive to protect the interest and meet the needs of the consumers (Lozano, Carpenter & Huisingh, 2015). As discussed in the paper several studies have showed that the modern day consumer is significantly concerned about the environment and the part an organization plays towards the society. This is because in the highly competitive market were all organizations provided similar goods and similar prices, ethics and eco-sustainability strategies have become a criteria for preference. While designing such strategies the organizations need to refer to the relevant theories and guidance which have been provided by various researchers. In NZ the organizations reputation with respect to the incorporation of ethics within its system is not great. However in the recent year the regulations which have been enacted by the government are being imposed in a strict manner. These measures from the government added up with the changed patter of consumerism have forced the organizations to adopt and incorporate the principles of corporate social responsibility within their operations. The organizations in NZ as discussed above are taking several measures such as carbon emission reduction, use of renewable energy, using eco-friendly transport which is not only protecting the environment but also ensuring long term profits for the organizations. However the strategies would only be useful if implemented appropriately.
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