...Challenge of embedding Sustainability in Organizations: The role of HRM and Leadership INTRODUCTION In the last decade, the importance of sustainability in any part of business in any industry has increased. Sustainability needs to move from being an add-on to a way of life at the firm such that companies can balance their social, financial and environmental risks and obligations. While companies have begun identifying the need to ingrain sustainability into the organisation, most business leaders still do not have a clear idea on how to go about doing so. THE CULTURE OF SUSTAINABILITY When talking about sustainability in business we mean managing the ‘triple bottom line’ such that decision making takes into account not only profits but also people and the planet along with social and environmental risks and obligations. In this sense, corporate reporting takes into account the environmental and social impact of the firms operations. But a culture of sustainability is more than just the corporate report and the face value of the initiative. It is one in which all the members of the organization share the spirit and the passion for the cause of balancing profitability with environmental accountability and social well being. Such a culture constantly strives to improve the lives of stakeholders while successfully carrying out its operations over the long term. WHAT DIFFERENTIATES SUSTAINABILITY FROM OTHER INITIATIVES? Most organizational change initiatives are largely...
Words: 4769 - Pages: 20
...Without question, "sustainability" is the latest buzzword in many sectors, public and private, for-profit and nonprofit. Is it just the latest fad? This paper, the first phase of a larger research project, agues that sustainability is "creating permanent shift in the very nature of business." Sustainability integrates three spheres--profits, the planet, and people--often viewed as competing or contradictory. How can management integrate them to boost the "triple bottom line?" This study identifies the leadership challenges through a literature analysis and emphasizes that measurement tools often miss the point: the pursuit of an organization's particular brand of success is a journey, not a destination. [ILLUSTRATION OMITTED] Introduction "Sustainability" has come to have many different meanings. It's the latest buzzword among business, government, and nonprofit entities. Business leaders must be wondering if it's just the latest management fad of a concept that will fundamentally change how businesses are managed and measured. This paper is based on the notion that sustainability is more than a fad, but rather is creating a permanent shift in the very nature of business. Since the advent of the paradigm of sustainable development in the 1980s, the private sector has been shifting from a narrow economic conception of responsibility toward a comprehensive approach that attempts to balance economic objectives with environmental pressures and changing societal expectations...
Words: 4015 - Pages: 17
...Name: Tutor: Course: Date: Sustainability and financial performance 1. What is the difference between local and corporate decision-making, and what is the significance of the difference for sustainability? The top management in firms is normally keened on the need for corporate sustainability, but they have difficulties executing it to success. The difficulty they face is on how to execute sustainability in operations and decision making regarding capital investments and seeing it to success especially for large and profit maximizing firms. Impacts from sustainability are often regarded as local and so, decisions concerning this are hardly made by the executives. Mainly middle level management is involved with such kind of decision making, and by so doing, there arises a tradeoff between impacts of finance and those of sustainability. In essence, the heads of sustainability in firms demand better sustainability performance from top managers while the top managers request for good financial performance. Models have been developed to enhance the sustainability processes, which managers can use in their day-to-day firm operations. One such model was developed by Epstein who stipulates that for this to be workable managers should focus on certain drivers included in different inputs and processes. 2. Study the Corporate Sustainability Model in Figure 1. Based on this study, do you think sustainability should be managed by means of a cost center, profit center, the balanced...
Words: 704 - Pages: 3
...repository. Authors requiring further information regarding Elsevier’s archiving and manuscript policies are encouraged to visit: http://www.elsevier.com/copyright Author's personal copy Organizational Dynamics (2010) 39, 353—356 a v a i l a b l e a t w w w. s c i e n c e d i r e c t . c o m journal homepage: www.elsevier.com/locate/orgdyn Why Nike kicks butt in sustainability Marc J. Epstein, Adriana Rejc Buhovac, Kristi Yuthas Nike Inc. has a unique combination of capabilities and competencies that position the company as a leader in sustainability. Nike is among the world’s most prominent sustainable corporations, and is regularly recognized by organizations that rank sustainable performance. For example, Nike has been named one of 100 most sustainable corporations in the world by Innovest, ranked third in Corporate Responsibility Officers 100 Best Corporate Citizens list, and named one of the World’s Top Sustainable Stocks by Sustainable Business. Nike possesses a unique combination of strengths and capabilities that enable the company to make rapid advancements in sustainability that are ahead of other firms in its industry, and that increasingly contribute to the financial performance of the company. Nike believes that we are at the beginning of a shift from a service- or...
Words: 3022 - Pages: 13
...Addressing the Sustainability Challenge and its Effect on Managers of Modern Organizations Addressing the Sustainability Challenge Modern society is affected daily by technological advances, the fluidity of the economic system, the legitimacy of products, and the constant change in the environment. Likewise, modern organizations face the same challenges. As Daft (2012) mentions, all organizations exist for a purpose. The challenge for managers is to be able to understand these challenges as well as be able to project how they will affect their organization. The manager then must be able to apply organizational changes that will exploit these challenges in order to promote growth. Otherwise, the existing purpose of the organization would deteriorate. This issue is known as organizational sustainability; just as society must adapt to the constant change of the environment, organizations must adapt to constant change in order to maintain their purpose. Further, corporate sustainability is being able to identify the social, environmental, and economic impact that leaders must address for the success of their organization. It is critical for managers to consider sustainability because in order to keep an organization’s product or service relevant to the market, they must be able to adapt their strategy to the constant change of environment. Organizational sustainability encompasses the personnel that make up the organization, the products and services that the organization...
Words: 1126 - Pages: 5
...Company Name: Darden Restaurants Inc. Website: http://darden.com/ Industry: Restaurant Background and History: Darden Restaurants Inc. was founded in 1938 by Bill Darden. At the time, Bill was just nineteen years old and opened his first restaurant called the Green Frog. It was a small restaurant, a twenty-five seat luncheonette, in Waycross, Georgia. It promised to give “service with a hop.” Thirty years later after the success of the Green Frog, Bill Darden and Charley Woodsby opened the first Red Lobster in Lakeland, Florida. A few years later in 1975, Bill Darden mentored his good friend Joe R. Lee who became the first president of Red Lobster. Twenty years later Joe R. Lee was named the first Chairman and CEO of Darden Restaurants. Today, Red Lobster is the largest full service seafood dining company in the world serving nearly three million people a week. In 1982, George McKerrow opened the first Longhorn Steakhouse in Atlanta, Georgia. The restaurant became famous when it remained opened during a very severe and infamous snowstorm offering $1.00 beers and food specials. Travelers who unfortunately got stuck and couldn’t make it home sought refuge in Longhorn. They were won over by great steaks, and hospitality leading Longhorn to become a huge success. By 2007, Darden celebrated the addition of the Longhorn Steakhouse brand to the company. Also in 1982, the first Olive Garden opened in Orlando, Florida. It was originally part of the General Mills Company...
Words: 1737 - Pages: 7
...Business Ethics and Social Responsibility Apparently, the concept of social responsibility refers to the means of achieving full sustainability through the adoption of the Triple-Bottom-Line (TBL) concept. Any viable organisation will enhance and facilitate long-term viability and success through the critical adoption of fundamental social responsibility principles such as transparency and accountability (Benn & Bolton, 2011). For instance, in the year 2010, the international organisation for standardisation gave out an international standard, which could help other organisations in addressing and accessing their social responsibility. Further, it is through critical and careful attention to impacts on the environment and the entire society that various organisations are able to achieve their sustainability. Through such scenario frequencies, any organisation can spur growth and development within the shortest time possible. Embracing the culture of transparency and positive ethics enhances and facilitates an approach that helps in the protection of the long-term success of both the environment and organisational success (Benn & Bolton, 2011). Social responsibility Social responsibility on a personal or corporate level means having a passionate commitment to act in an ethical and sensitive manner to alleviate poverty from society without destroying the cultural values and environmental settings of the community, and ensuring economic benefits to the organisation that...
Words: 2225 - Pages: 9
...In this study the multi-dimensional processes of organizational learning and change towards sustainability, the Global Organization Learning and Development Network (GOLDEN) research program will focus on the key functional aspects that characterize the activities of the firm, both line functions and staff functions, thus moving beyond the specialized functions often created to deal with sustainability and Corporate Social Responsibility (CSR) issues. One of the key conceptual contributions of the proposed program, therefore, consists of the development and testing of new theory and managerial wisdom about the development of new types of dynamic capabilities aimed at the adaptation of strategies, processes and culture to meet sustainability requirements. The key departure from the standard way of analyzing stakeholder engagement in prior research consists in viewing the role of stakeholders as primary facilitators of internal change processes aimed at sustainability, rather than solely as counterparts of externally oriented social development initiatives. At the finer level of detail, GOLDEN intent to tackle the problem of identifying the most effective ways to enact specific change initiatives, given contextual, organizational and individual/group level conditions The case conversation in this issue consists of eight cases that there are some different approaches to sustainability integrity. Ma’ria and Devuyst examine the challenges of prioritizing stakeholder interests in...
Words: 1358 - Pages: 6
...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 arguments against sustainability exist. One of the main arguments or hurdles is measurement. There are too many metrics that claim to measure sustainability, and in reality, they may confuse, be too macro, or have unclear implications. (Laughland, Bansal, 2011). How does one read...
Words: 1117 - Pages: 5
...EPG SHRM Foundation’s Effective Practice Guidelines Series HRM’s Role in Corporate Social and Environmental Sustainability Produced in partnership with the World Federation of People Management Associations (WFPMA) and the North American Human Resource Management Association (NAHRMA) HRM’s Role in Corporate Social and Environmental Sustainability This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Neither the publisher nor the author is engaged in rendering legal or other professional service. If legal advice or other expert assistance is required, the services of a competent, licensed professional should be sought. Any federal and state laws discussed in this book are subject to frequent revision and interpretation by amendments or judicial revisions that may significantly affect employer or employee rights and obligations. Readers are encouraged to seek legal counsel regarding specific policies and practices in their organizations. This book is published by the SHRM Foundation, an affiliate of the Society for Human Resource Management (SHRM®). The interpretations, conclusions and recommendations in this book are those of the author and do not necessarily represent those of the SHRM Foundation. ©2012 SHRM Foundation. All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system or transmitted in whole or in part...
Words: 25781 - Pages: 104
...which competitive strategies Riordan could use to improve innovation and sustainability of business operations both in the United States and in the global market. Research will explain why those competitive strategies were chosen and estimate how they may affect sustainability of long-term organizational performance. The examination will also explain how the global market would affect the business strategy of Riordan. Riordan Organization McDonald’s and Burger King The McDonald’s Corporation and the Riordan Manufacturing Company are both main industry leaders in their own field. One major competitive advantage that each company has in common is differentiating their products. Each company has a variety of items that meets the need of their consumers. The three companies sell both nationally and internationally. Burger King, Riordan, and McDonald’s increase their sales by offering price discounts, and sale promotions to ensure that their prices are affordable to everyone in need. All three companies use cost leadership, focus, and differentiation tactics to gain a competitive advantage over their competition. Another commonality between the three companies is that they use some type of reward and incentives program to ensure that they are recognizing their employees for operational excellence. Riordan Innovation Strategies Innovation Riordan could increase innovation and sustainability for the business operations in the United States of America and globally...
Words: 1122 - Pages: 5
...they are not infinite; it is the responsibility of every one: individual, governments, and businesses to conserve, protect and sustain those resources. This report will highlight how a small company participates in protecting the environment and conserving world resources; the leadership quality required; the benefits to gain from a sustainable world, and the legal and regulatory requirement to follow the principles for maintaining sustainability. American Indian's Lament http://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1920&bih=891&q=native+american+love+the+environment&oq=native+american+love+the+environment&gs The featured business is a small health care company, Fellowship Senior Services, that provides health care services to 104 senior citizen and young disable adults in three locations. Fellowship Senior Services operates two Adult/ Senior Day Program that serve 80 to 90 people a day ( six to eight hours a day), and it runs an Assisted Living facility that serve 24 residents, 24 hours a day. To protect the environment and conserving g world resources, the company engages in a recycling and waste management program. It takes leadership effort by the owner to keep the program going. Though the company effort to protect the environment and conserve world resources is small in lieu of what other big companies can do, the planet benefit and so does the company. Environmental Considerations and Recommendation ...
Words: 1964 - Pages: 8
...Mon Feb 6: NGO profile 3: Competitive Advantage 1. Who are its competitors and partners? a. Competitors: SustainAbility (Think Tank and Consulting group), Niche Consulting Groups (on CSR and ESG), b. Partners: David Gardiner & Associates (consulting service), Angela Bonarrigo Co Cen (consulting services), UNEP, 2. How does it differentiate itself? c. Leader in corporate environmental sustainability in the early 1990s. Founded on what is known as the “Ceres Core Principles” (a 10 point code on corporate environmental conduct), Ceres worked side-by-side with companies to implement these principles into every day operations. In 1993, Sunoco, a Fortune 500 Company, first adopted the principles. Ceres offered constructive dialogue, people not associated with our business and explaining where they are coming from was extortionately beneficial to us? d. Roundtable - Social and Business problem at the center of the table and creative way to involve all stakeholders to come up with the solution e. Embraced identity as leader as environmental reporting f. Catalysts for change! 1997 – launched Global Reporting Initiative (GRI) with UNEP and Tellus Institute offering first standardized platform for corporate reporting in the world!! g. Also pushes companies to improve!! E&S performance h. FIRST IN CSR AND ESG!!! i. Nonprofit that translate environmental problems into the language of the financial markets (bottom line...
Words: 455 - Pages: 2
...In Spillane’s book Distributive Leadership (2006), he describe how distributed leadership leads to school sustainability of practices. He explains the different type of leadership activities that might be shared in an organization; collaborative, collective or coordinated distribution. These three different types of leadership activities can also be used to help describe the functioning of PLC groups and the relationship of PLC groups to each other and the collective leadership of the school. Particular attention will be given to informal leaders and the PLC groups and how they may have functioned in these three...
Words: 870 - Pages: 4
...Afgan, et al 2005. Multi- Criteria Assessment of New and Renewable Energy 27 (739-755). Bell, et al 2010. Nonprofit Sustainability: Making Strategic Decisions. Villiers Publication. London (114). Blackwood, et al 2011. The Nonprofit Sector in Brief: Public Charities, Giving, and Volunteering. Washington D.C Urban Institute (53-65). Bowman, et al 2011. Financial Capacity and Sustainability of Ordinary Nonprofits. Management and Leadership 3rd Ed. Oxford University Press (37-51). Brandlow,K. 2007.The Role of Government in Community Development in Aotearoa New Zealand. Victoria University o Wellington (13-42). Bray, Llona 2010. Effective Fundraising for Nonprofits: Real-World Strategies that Work 2ndEd. Macmillan Press Limited (71-90). Bridger, et at 2004. Building the Sustainable Community. University of Texas Press, USA (462-92). Cavallaro, F. 2005. Integrated Multi-Criteria System to Assess Sustainable Energy Option.Oxford University Press (140-154). Chile, L. 2006. Good Development Practice: An Instrument for Building Community SocietyNew York. Orbis Books (400-412). Costanza, R. et al 2007. An Introduction to Ecological Economics. St. Lucie Press, Boca Raton, Florida (4-93). Dorothy, A. Johnson 2005. Center for Philanthropy and Leadership 4th Ed. Villiers Publication. London (77-98). Hackler, et al 2007. The Strategic Use of Information Technology by Nonprofit...
Words: 317 - Pages: 2