...Making sustainability profitable Haanaes, K., D. Michael, J. Jurgens, S. Rangan. March 2013. Harvard Business Review. Vol. 91, Issue 3, Page 110—114 “We are moving to a world of scarce resources, in which companies will increasingly need to consider their total return not just on assets and equity, but on resources” ¹. Sustainability leads to innovation and effectiveness. It is hard for companies to believe that a sustainable production manner can be less expensive than a ‘quick-lowering-cost’ manner. Companies follow different approaches to make their environmental efforts pay back financially. Firstly, the ‘long-view’ in which they see that investment eventually leads to lower costs and higher yields. “Secondly, a bootstrap approach to conservation. Companies start with small changes that generate costs savings, which they can use to fund advanced technologies that make production more efficient. The last approach is spreading the sustainability efforts to the operations of their customers and suppliers, in the process devising new business models that competitors find hard to emulate”². Companies have to recognize the fact that initial investments made in more-costly materials and methods will lead to greater savings on the long term. Also, “the pursue of sustainability can be a powerful path to reinvention for all business facing limits on their resources and their customers’ buying power”³. Besides the impressive cost efficiencies, the growth that companies have gained...
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...Dell Computer Corporation Performance Metrics Every component of a corporate sustainability model should be associated with performance indicators such as inputs, processes, outputs, and outcomes. By determining the appropriate performance measures needed for each component of the sustainability model, companies can evaluate the performance and financial benefits of the sustainability initiatives. Dell Computer Corporation knew that balance is especially important in performance measurement and wanted to make a change to improve their reputation and also their consumer sales. The performance metrics that are most valuable to Dell from the inputs are mostly from the business context performance measures which include number and size of competition, diversity from competition, market size, and their competitive position within the industry should be the most important to them since they have so much competition in the industry (Epstein, 2008, p. 169). One way that I found through research that Dell has come up with to stay unique and making them competitive with their competition was by creating “the Dell Precision T5500 and T7500 which deliver up to 90 percent better multi-threaded digital content creation application performance versus previous generation systems” (Bolen, 2009). “The new systems are purpose-engineered for professionals in engineering, media, entertainment, biosciences, exploration, economic modeling and risk analysis” (Bolen, 2009). Dell feels that this will...
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...communicate with employees, coworkers, and upper management to build successful relationships. On the other hand I say decisional because when it comes to the category of "decisional" in my workplace that comes to our sales manager being a disturbance handler, resource allocator and a good negotiator. Four Functions of Management I disagree with the critics who question the functions of management and down below is why. In the text book it states, “The four functions of management include planning (defining goals, establishing strategies, and developing plans), organizing (arranging and structuring work), leading (working with and through people), and controlling (monitoring, comparing, and correcting work performance).” Management involves making hefty decisions and they oversee any activities being done to promote the brand of the business and its company’s mission along with their employee’s well-being. To...
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...HRM plays in sustainability, as defined in this article? HRM plays a very important role in helping organizations to maintain sustainability by: Partnering: HRM plays a very significant role in articulating the organizations social mission. It helps alignment behind this mission at the executive leadership level by bringing in the perspectives of stakeholders and employee interests. Engaging: HRM helps in engaging both internal and external stakeholders to identify ways in which the social and environmental actions of the company are affecting the people associated with it. Engaging can include external partnership with non-profit organizations. Employee attraction and selection: Another important aspect of HRM is proper selection of candidates who believe in company’s vision of sustainability. For example when an employee can connect with the eco-value of an organization he is more likely to stay with the firm which helps in reducing overall expense on recruitment. Employee training and development: Regular training may be required for employees who don’t align with the sustainability mission of the company or for employees who need to understand new ways of sustainable working. HRM plays a very important role by scheduling these training and development sessions for its employees. Creating a sustainable organizational climate: It is very important to create an environment which encourages employees to pursue sustainability. More often...
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...successful company. Ethics are moral principles that guide the direction a business behaves. Behaving in an ethical demeanor encompasses deciding what is right from wrong and making the “right” decision. Ethics written into a companies mission statement assists in clarifying a company’s goals and intentions. In this case, Matt Dyson is the founder and president of an ethical bank primarily focusing on environmental sustainability. Matt is faced with the difficult decision between profitable business ventures or ethical ones. Matt began the Silver Lake Green Bank with an assembled board of directors out of concern for his hometown environment of Colorado. The image promoted was environmental stewardship. To solidify their image, a famous architect was commissioned to build an office that reflected environmental values. Solar-powered windows and a set of wind turbines are examples to showcase their environmental take. Articles and TV segments were marketing techniques used to gather support from local depositors and borrowers. The ethical bank became successful in attracting clients who have grown tired of global banks, but to succeed financially, the bank needed clients that will take out big loans. Two big companies answered the bank’s calling but with a price. The bank’s opportunity to reap profitable returns came in the form of a gun manufacturing company and an engineering company specializing in hydraulic fracturing. As Silver Lake is an ethical bank, these two loan applications...
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...20% above their competitors. Inside the company, Patagonia's employees showed high satisfaction and fidelity, which led to much lower turnover comparing to other rivals. Finally, the firm differentiates itself from other major competitors by focusing on customers who are knowledgeable about their sports and outdoor activities (niche market of dirtbags) and willing to pay additional amount for superior quality. It is true that Patagonia's environmental position contributed to company's competitive advantage in positive ways, such as strengthen the company's uniqueness against rivals. Also we could believe that business and sustainability seems to be compatible when we se how the positive and improved image of Patagonia helped it to gain legitimacy with stakeholders; or when its competitors are making some changes based on shared broad sustainability practices initiated by Patagonia. But balancing commitment to business with commitment to environment is a much more complicated issue for Patagonia, because the idea of running a for-profit business implies operating at the lowest cost, growing as rapidly as financially feasible, and maximizing returns to financial stockholders. Whereas a...
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...Sustainable Microentrepreneurship: The Roles of Microfinance, Entrepreneurship and Sustainability in Reducing Poverty in Developing Countries GUY VINCENT CONTENTS 1. INTRODUCTION 2. THE RELATIONASHIPS BETWEEN MICROFINANCE, ENTREPRENEURSHIP AND SUSTAINABILITY IN REDUCING POVERTY IN LDCS 2.1. THE ROLE OF MICROFINANCE IN REDUCING POVERTY IN LDCS 2.2. THE ROLE OF ENTREPRENEURSHIP IN REDUCING POVERTY IN LDCS 2.3. THE ROLE OF SUSTAINABILITY IN REDUCING POVERTY IN LDCS 3. SUCCESSFUL CASE STUDIES OF MICROFINANCE, ENTREPRENEURSHIP AND MICROFINANCE IN REDUCING POVERTY IN LDCS 4. EFFECTS OF SUSTAINABLE MICROENTREPRENUERSHIP ON LDCS 5. CONCLUSION 6. REFERENCES 1. INTRODUCTION About 90 percent of the people in developing countries lack access to financial services from institutions, either for credit or savings1, which further fuels the “Vicious Cycle of Poverty” (refer to Fig. 1). If the people of LDCs have a limited capacity to invest in capital, productivity is restricted, incomes are inhibited, domestic savings remain low, and again, any increases in productivity are prevented. A lack of access to financial institutions also hinders the ability for entrepreneurs in LDCs to engage in new business ventures, inhibiting economic growth, and often, the sources and consequences of entrepreneurial activities are neither financially nor environmentally sustainable (existing for continuing future use). Microfinance serves as a means to empower the poor, and provides a...
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...Among all stakeholders, recognition is focusing increasingly on the need for sustainable corporate practices, given pressing economic, social, and environmental problems on a global scale. By conducting business in ways that promote ecological health and human welfare, corporations increase value over the long term for consumers, shareholders and others for both current and future generations. Business students need to be familiar with, and committed to, principles and practices of corporate sustainability. This short essay outlines several sources in the literature on corporate sustainability provided by the following organizations: International Organization for Standardization (ISO); Price Waterhouse Coopers (PWC); Federal Reserve Bank of St. Louis; International Federation of Accountants (IFAC); Ernst & Young; and Association of Certified Public Accountants (AICPA). An annotated bibliography follows the discussion, highlighting articles of interest in corporate sustainability literature. Finally, figures provided in an appendix illustrate key concepts from the discussion. ISO 26000:2010 International Organization for Standardization * Headquartered in Geneva, Switzerland. A global consortium of experts in multiple aspects of quality-related standardization representing industry, nonprofits, government, healthcare, and academia. * Formulated by technical committees, standards are released after extensive review and a minimum 75% favorable vote by...
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...Sustainability Paper Sustainability Paper PepsiCo is an excellent case in point of demonstrating how sustainability is used to build business longevity. Team-A will assess PepsiCo sustainability initiatives, identify stakeholders, affect of fiscal policies on stakeholders, sustainability achievements, and sustainability breakdowns. PepsiCo sustainability initiatives will be evaluated to industry sustainability standards. Team-A will identify PepsiCo stakeholder relationships and how sustainability policies are applied. Sustainability Defined Sustainability refers to upholding, supporting, or preservation of a particular role or function. Additionally in sustainability most companies commit themselves to the protection of supplies and reserves by keeping people and the environment free of harm. Sustainability defined by Merriam-Webster (2010), “of, relating or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged” (p. 1). As part of the company’s human sustainability PepsiCo produces products safe for human consumption by using ingredients wholesome and promote healthy living. The company values healthy lifestyles and focuses on increasing healthy choices and quality products in its brands. PepsiCo is a large company with a vast resources and an extensive global footprint and has a responsibility to the public and planet that supports them to remain socially and environmentally conscious. Corporate sustainability...
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...Investing in Ford MGT/521 August 18, 2011 Abstract Choosing the right company to invest, where our money is not only safe, but also multiplies, is one of the toughest challenges for an investor. The potential benefits should outweigh the risks involved. The following is an attempt to put the pros and cons in perspective on why “Ford” is a good choice for a discerning investor. Investing in Ford Ford is an American multinational auto company head quartered in Dearborn, Michigan, that was founded in 1903. Fortune favors the brave. Fortune 500 has placed Ford in the tenth position in the list of the largest American corporations (CNN Money, 2011). A net income of $383 million was reported in the second quarter of 2011, with a pre-tax income of $604 million. (Ford Media, July). But the numbers themselves do not mean much unless there is a comparison with the size of the company. To understand the progress made by Ford, we need to examine the stock price – Today, Ford closed at $11.11 (Yahoo! Finance, August). This figure may not look competitive, when seen in isolation. But when compared to how things were four years back, the progress in phenomenal. In 2008, the shares were as low as $1.01. When placed in this perspective, this is a giant leap for this automobile empire. These statistics show that there has been significant revamping done. In 2010, the company posted its highest net income in more than ten years, the full year net income being $6.6 billion, or $1...
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...Organizational Changes in Ford Motor Company Organizational Changes in Ford Motor Company In today’s business world, one of the questions organizations are inquired about is “What can be done in order for our organization survive and expand?” Today’s society is evolving into something too challenging to easily foresee, with a numerous opportunities and drawbacks continuously passing. Economic modifications continue to change the very fundamental nature of how an organization is conduct performs. A company must be able to acknowledge the course they face and be able to poise themselves to meet head-on any difficulties in order to accomplish the goals they settle on. In order to meet these demands is through systematic competent management and resilient leadership. Ford Motor Company is an organization that has endures this and has created outcomes that exemplify the power of operative management and precise leadership. The company’s ability to employ qualified managers and leaders has permitted the company to climb from previous low points to be primed for an optimistic economic future. Ford Motor Company, as an American manufacturer and distributor of vehicles and automotive parts and accessories, has confronted many challenges since its integration that required resolute management and qualified leadership. To better associate with the challenges the company faces an understanding of the explanation of management and leadership are required...
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...The Importance of Sustainability for Present and Future Generations Sara Goldstein Southern Connecticut State University Sustainability as an ecological idea has been around for quite a while. It hasn’t been until recently, however, that it has been applied to other areas as well. The concept does not just refer to how the environment stays productive and healthy, but also how our economic and social systems should as well. But what exactly is sustainability? Perry and Eweje (2011) explain in their book, Business and Sustainability: Concepts, Strategies and Changes, “Sustainability consists of actions that extend the socially useful life of organizations, enhance the planet’s ability to maintain and renew the biosphere and protect all living species, enhance society’s ability to solve its major problems, and maintain a decent level of welfare and personal freedom for, present and future generations of humanity” (p. 9). This is a very loaded definition of the word, but to put it simply, sustainability refers to the actions that humans can take that will ensure the health and wellness of our economic, social, and environmental communities. At such a tumultuous time in human history, achieving sustainability has never been more difficult, or more necessary. Our carbon emissions are destroying the planet, many people around the world live and work in unjust environments, and economic troubles have affected billions of people. There are ways to fix these problems, however....
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...only use naturally raised meat and organic ingredients that meet their guidelines. Chipotle has grown exponentially since their founding, and that is a part of the problem. Even though Chipotle has had massive success, they are starting to run into some trouble with their sustainable model. The chain has become so big, it is hard for them to essentially sustain sustainability. Their organic ingredients and naturally raised meat are at the root of the dilemma. They are expensive and it is hard to maintain the flow and volume of organics and naturally raised meat that Chipotle constantly craves (4). It seems as though they have become too big for sustainability and it is very worrisome. Chipotle might just be the test subject to see if substantial sustainability is possible on a large scale. Chipotle needs to buy their own farms so they can streamline the process. If they vertically integrate the company so they can run their farms in a manner that is compatible with their mission statement. They would also be able to save more money this way. They would be even more sustainable than before while making more money. Statement of the Problem Chipotle’s...
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...Sustainable Profitability: Myth or Reality? ‘To all the children, yet unborn’ (Hart, 2010, p. v) this sentence shows the audience for whom not only the book by Hart but sustainability issues as a whole are meant. Commercials about acid rain, pollution, etcetera often grab our attention and all of them have one common message: if we do not act now, our children will bear the costs. On the other hand most people today grew up in a world that glorifies capitalism, profitability and shareholder value. This raises the question on whether or not it is possible to combine these two. Can one actually combine being a profit-driven company whilst being sustainable? In order to investigate this issue the sustainable value framework as developed by Hart (2010, p. 88) which will tackle pollution prevention, product stewardship, clean technologies and lastly the Bottom of the Pyramid (hereafter, BoP). This essay will argue that it is possible for profit-driven companies to pursue a sustainability strategy. Firstly, pollution prevention will lead to cost reductions. Within the US alone, programs stimulating this issue have already saved ‘hundreds of millions of dollars over the past decade’ (Hart, 2010, p.99). Well publicized campaigns by world leadings firms such as DuPont, 3M and the like have served as examples of how pollution prevention has led to increasing cost saving ranging up to 500 million dollars (Hart, 2010, p. 89). Russo and Fouts (1997, p. 538) argue and empirically validate...
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...Technical aspect Digital Literacy * Low Cost Low Power (LCLP) Chips to provide cheap and robust computing power. * Investment in communication technologies which can be used to provide connectivity in rural areas. The plight of farmers is an issue that matters. Only by making their work more efficient, more profitable, and more sustainable can we meet the much needed available and affordable food. As demonstrated in the project in Odisha, eAgriculture provides a cheap and fully sustainable way to help farmers. The impact on farmers’ lives is potentially immense, as they are able to lower the costs of their production, improve productivity, and thereby increasing the incomes. The impact on society is equally powerful, as countries can achieve food security, while creating jobs and strengthening long-term economic growth. * Creating Ecosystem Standards in order to maintain quality in end products manufactured and sold. Sustainability at Intel Corp. has grown from a concept driven to a shared priority that influences each parameter of the company—from its employees and buildings to its products and communities. Intel’s efforts in the area of sustainability have been publicly recognized for the quality maintenance. * Creating Local Language Application in order to make it easy for local population to access them. * Supporting Local Language Content Creators in order to create engagement with Local Population. Gender Diversity in the Workforce ...
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