...The Need for a Sustainable Business Model Introduction Ten months may very well be a trend. A couple of years could be an aberration. Ten years however means it is time for a change. Since 2004 the manufacturing industry has seen some ups and downs, however more specifically to the firm, it has been a continuous down. The time is now to reverse that trend, and it starts with a new culture of sustainability. There is money to be made, and there is money to be saved. Under the circumstances of having little financial flexibility for investment and development, prioritizing the saving is paramount. Cutting down costs across the board, whether they are resources, expenses in travel, as well as energy, will serve to be prudent both short and long term alike. Furthermore, positioning the company as a leader in the market of sustainability, as an organization that is forward thinking, changes everything. Systemic and cultural changes will not only alter perception in the market place, but bottom line long-term concrete profitability. Companies worldwide have made this a focus, investing both time and money in strategies that address the competitive landscape shaped by resource scarcity, regulatory uncertainty and economic volatility. (MIT Sloan, 2012) No longer a buzzword, this is moving to the market norm. It is time to embrace it and begin to reap the reward. This is not only a strong strategic business case, it is imperative to compete. Hurdles The arguments...
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...Is Business Sustainable? by megan51773 | studymode.com Business is an artificial person and has responsibilities. While making money is an important result of a company’s existence, many people wrongly assume this is their sole responsibility. A business can be defined as a combination of the products and services they provide, the customers they serve, and its work force. A business of one person or thousands takes on the personality of those wihin. Its culture, morals, and ethics are defined by the actions of the people that execute its bidding; and as such can take on its own identity. Although a business is not made of living tissue, to those that work for it or consume their products and services, it is treated as a living entity; and can therefore take on a variety of real responsibilities. These real responsibilities are realized through a responsibility toward a business’s consumers, protection of the environment and the law. Considering the many differences between an individual and a business, it’s understandable that many people would be eager to accept the idea that as an artificial person, businesses have no responsibilities. Supporters of this view believe that business corporations have no responsibility to society beyond the law as they go about their operations. Their argument is that a business’s principal and overriding responsibility is to shareholders, and it is a responsibility to conduct the operations of the company in such a way as...
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...Benefits of being Sustainable Business? - Reputation Management (This management of reputation enhanced by social responsibility can lead to growth in both brand value and equity. ) - Financial Performance (social responsibility should be viewed as an investment in a strategic asset.) - Risk Management ( The investment community increasingly considers a strategic approach to social responsibility as a proxy indicator of good quality management.) - Employee Satisfaction ( People tend to work for good aims so they have better motivation.) - Innovation ( these business drivers need to be integrated into the strategy of an organization and develop to result in superior financial performance.) - Customer Loyalty ( Customer loyalty is built on trust, service and values. Highlighting an organization's commitment to responsible business practices can maximize the role of Cause Related Marketing to gain competitive advantage.) Disatvantages: - Converstion Expense (it can be costly for a corporation to go green initially. for example, the switch to solar power will create the need to install solar panels at business facilities.) - Costlier products ( in some cases, the switch to using green materials can lead to more expensive product for consumers.) - Lack of Support ( there can be an "entrenched bias" against companies that want to go green, as evidenced by some laws and regulations) - Going Paperled (If companies do not properly back up their computer files, a system...
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...Towards the Sustainable Corporation: Win-Win-Win Business Strategies for Sustainable Development John Elkington §§ I often wake up in the middle of the night," Pope John XXIII once said, "and start thinking about grave problems—and decide to talk about them with the Pope. Then I wake up completely and remember that I am the Pope." Western industrial societies have undergone a similar awakening over the last three decades as the scale of the environmental and natural resource problems they face has become increasingly clear. In doing so—and before they finally accept that the responsibility for tackling these problems is theirs, not something to be pushed onto future generations—they typically move through a number of stages. These have included: ignorance awakening denial guilt reduction, displacement behaviour, and tokenism conversion integration In the wake of the publication of Our Common Future, the 1987 report of the World Commission on Environment and Development,' and the UN Conference on Environment and Development (UNCED) held in Rio de Janeiro in June 1992, the concept of sustainable development—involving the integration of environmental thinking into every aspect of social, political, and economic activity—has become central to the environmental debate. This article considers some of the ways in which business is now developing new "win-win-win" strategies in this area to simultaneously benefit the company, its customers, and the environment. I Towards the...
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...International business, corporate social responsibility and sustainable development This article discusses the issue of corporate social responsibility (CSR) and the sustainable development which associate with international business (IB) and the multinational enterprises (MNEs) role in these matters. The social and environmental problems caused by international business have emerged for a period, however, they only being seen as an important issue under the pressure of global problems such as climate change, poverty, human rights violation and HIV. In this situation, MNEs have to play an appropriate role using their global activities and influences as these issues exist as both a problem and an opportunity for MNEs. In the modern globalization era, the landscape of international business is no longer like a decade ago or past few decades. Therefore, MNEs will need to adjust their internationalization strategy to better suit with today’s globalization challenges. CSR is now considered something to be taken into account in MNEs in order to compete better in market. CSR activities are gradually become important as they influence the core business of the firm and determine firm’s ability to grow, earn profit and sustain in the tough environment. Some firms are actually work hard with CSR in order to get the competitive advantages in managing international operation or earning a ‘pass’ to operate business in countries with different cultures and values or different institutional...
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...Ajzen, I. and Fishbein, M. (1980) Understanding attitudes and predicting behaviour, Englewood Cliffs: Prentice Hall. Anderson et al. (2007) Statistics for Business and Economics, London: Thomson. Bansal, P. (2002) ‘The Corporate Challenges of Sustainable Development’, The Academy of Management Executive, vol. 16, no. 2, pp. 122-131. Baum, T. (2006) Human resource management for tourism, hospitality and leisure: an international perspective, London: Thomson. Baumgartner, C. (2000) Nachhaltigkeit im Österreichischen Tourismus [Online], Available: http://www.seilbahn.net/thema/nachhaltigkeit.pdf [25 March 2011]. Berg, B.L. (2009) Qualitative Research Methods for Social Sciences, 7th edition, Boston: Pearson. Berry, S. and Ladkin, A. (1997) ‘Sustainable tourism: a regional perspective’, Tourism Management, vol. 18, no. 7, pp. 433-440. Blackburn, W.R. (2007) The sustainability handbook – The complete management guide to achieving social, economic and environmental sustainability, London: Earthscan. Black, T.R. (1993) Evaluating Social Science Research: An Introduction, London: Sage. Black, K. (2009) Business Statistics: Contemporary Decision Making, 6th edition, Jefferson City: John Wiley and Sons. Bmwfj (2011a) Die Organisation des Tourismus [Online] Available: http://www.bmwfj.gv.at/-Tourismus/TourismusInOesterreich/Documents/organisationshandbuch%20J%C3%A4nner%202011.pdf [10 Feb 2011]. Bmwfj (2011b) Tourismuspolitische Aktivitäten [Online], Available: http://www.bmwfj.gv.at/Tou...
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...Groupon : In its simplest form Groupon (derived from "group coupon") is a deal-of-the-day website that features discounted gift certificates usable at local or national companies Business Model: The company offers one "Groupon" per day in each of the markets it serves. The Groupon works as an assurance contract using ThePoint's platform: if a certain number of people sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, no one gets the deal that day. Groupon makes money by keeping approximately half the money the customer pays for the coupon. Its business model essentially consists of economies of scale and economies of networking. Sustainibility : According to an article published in Forbes titled “Is Groupon's Business Model Sustainable?” (http://www.forbes.com/sites/panosmourdoukoutas/2011/10/22/is-groupons-business-model-sustainable/) Groupon’s business model is not sustainable for two reasons : 1) it is selling other company’s offering who have the upper hand in deal negotiation and 2) they have considerable direct competition from companies with a broad user base like Google, Yahoo, Expedia and so on. The findings of an academic study of Rice University from 2010, from 150 Groupon businesses in 19 cities: (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1696327) • 66% profitable; 32% unprofitable. • Restaurants were the most unprofitable category...
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...1) Groupon doesn’t have sustainable business model: • Less Customer Loyalty • Easily Replicable • Huge Competition • Ponzi Scheme used to make payments to merchant 2) Groupon’s growth has been following exponential trend owing to following reasons: • 1st mover advantage • Large customer base • Continuous new acquisitions • Targeted deals to customers • Increase merchant base with no initial fee Groupon is appealing to customers: • Good Bargain • Customer Service • Local deals available • No membership fees • Huge number of daily deals • Attractive phrases 3) Groupon is a good option for Merchants: • Brings new customer • Helps to sell products which are in inventory from long time • Advertises the brand • Helps in increasing the sales during off peak hours • Builds Customer Merchant relationship • Increases revenue Merchants are excited with Groupon but there are merchants who are skeptical about it because • Can disrupt normal business • Long wait time for advertisements • Negative bargain • Can cause loss if more customer appear than expected • Long time to receive payment • It mostly attracts low end bargain seekers • Deals don’t generate repeat customers • Less customer loyalty 4) To calculate the profitability we need to assume the below mentioned points: a) number of coupons sold b) amount of purchase by returning customers c) kind of agreement(negotiation) between American apparels and Groupon Total 133000 coupons were sold ...
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...Course: CSR Trimester I Assessment: Oral Presentation Total Marks (15 marks) CLO Students should be able to integrate dimensions of social responsibility in managerial decision making (CLO2) |Aspect/ Performance Area |Exemplary |Satisfactory |Unsatisfactory |Score | | |(3) |(2) |(1) | | |Rational for sustainable |Clarity in describing the |Identifies the rational based |Has a vague idea of the rational | | |business/CSR |alignment between business |on a few pertinent facts |and does not have facts to support| | |(5 marks) |goals and social goals on the | |the same. | | | |basis of facts | | | | |Identifies CSR/Sustainability |Explains the logic of various |Determines some logic to |Is not sure about the logic of | | |Dimensions |CSR/ Sustainability dimensions|explain CSR dimension |various CSR dimensions | | |(5 marks) |incorporated by the company | |incorporated by the company ...
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...Three Steps Toward Making Business More Sustainable We live in troubled times. The practices, institutions, and systems which our culture has evolved during the two centuries since the dawn of the Industrial Revolution are everywhere reaching and exceeding the limits of their usefulness to humanity as a whole, and, in many cases, have actually become detrimental to the well-being of the planet and its inhabitants. They are increasingly recognized as being unsustainable over the long term. Yet, as the oft-cited Chinese proverb points out, every time of crisis is equally a time of opportunity. The challenge before us is nothing less than the complete redesign of virtually all human systems, such that they are transformed from their present unsustainable forms into ones which instead reflect and maintain the sanctity of life and the dignity of all beings. Although this will be an arduous process extending over many generations, the end goal, the vision of the future world which we have to inspire us and lead us forward, is one in which many of the highest aspirations of the great sages of the past are finally fulfilled: a world characterized by peace, equality, freedom of individual expression, and harmony between human society and the natural world. Our task is to begin the process of bringing this vision into being by clearly acknowledging and working with the situation which this particular historical moment presents us with, regardless of how unpleasant, discouraging, or frightening...
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...A Research Paper on Communicating the Challenges and Benefits of Sustainable Business Practices by MA. AISSA V. ARMENA BSBA Professor AMA Computer College Angeles City 2011-2012 Abstract This research presents ways on communicating sustainable business practices effectively. It also defines what sustainable business practice is showing certain challenges and measures in ensuring an effective communication to consumers. Introduction Businesses used to stand out simply by being environmentally sustainable, but that is changing. Today, companies of all sorts and all sizes are playing up their efforts to save energy, reduce carbon dioxide, use more sustainable materials and streamline their packaging. Thus, being green is not such a unique thing anymore. Marcus and Fremeth (2009) noted that this enthusiasm for what they called “green management” came from people’s expectations as to how managers and the organizations they lead should conduct their business to protect the environment. As Ambec and Lanoie (2008: 46) noted, “firms are facing growing pressure to become greener.” Sustainability is defined in part by an effort to conserve natural resources and avoid waste in operations. Conservation and the more efficient use of resources naturally lessens the burden of economic activity on the environment and helps to ensure that the activity can be sustained over time because the resources required will not be exhausted. Sustainability...
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...develop processes to promote sustainability throughout the corporation, measure performance on sustainability, and ultimately link this measurement to corporate financial performance. ▪ Corporate citizenship is an important driver for building trust, attracting and retaining employees, and obtaining a “license to operate” within a community. ▪ Corporate citizenship is much more than charitable donations and public relations—it’s the way the company integrates sustainability principles with everyday business operations and policies and then translates all of this into bottom-line results. ▪ For sustainability to be long lasting and useful, it must be representative of and integrated into day-to-day corporate activities and corporate performance. ▪ If sustainability is seen only as an attempt to provide effective public relations, it does not create long-term value and can even be a value destroyer. ▪ The key to success is integrating sustainability into business decisions, identifying, measuring, and reporting (both...
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...BANKING ON SUSTAINABLE BUSINESS Understanding the social and environmental performance of our business clients is now a core element of risk assessments at ANZ. How a client identifies and manages these issues is just as important as the more traditional concerns of credit risk, quality of management and business strategy. Over the past five years, we have established a framework to help us better understand how the clients we bank, and the projects we finance, impact society and the environment. This framework 24 ANZ CORPORATE RESPONSIBILITY REVIEW 2008 assists us in managing challenging issues and making better decisions about the transactions we should or should not be involved in. This year, we’ve seen specific examples of how this work can improve our decision-making processes and encourage real improvement in our clients’ practices. “Our approach is not all about declining clients or deals. Instead, we will measure our success in this area based on how many businesses we help to transform.” — CHRIS PAGE, CHIEF RISK OFFICER BUILDING STANDARDS AND CHANGING PRACTICES ANZ released four social and environmental management policies in 2008 which set out the standards that guide our decision-making on transactions involving clients in sensitive sectors. We will use the policies as a framework for working with clients to respond to the social and environmental issues facing their business. The policies also help us meet society’s expectations ...
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...different areas but we will discuss business sustainability. In 1987 the United Nations’ Bruntland Commission defined sustainable like this, “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” In a more practical business term it is the use of triple bottom line accounting which is a process by which companies manage their financial, social, and environmental risks, obligations, and opportunities. An even better definition is that business sustainability represents resiliency over time. This shows that businesses can survive shocks because they are intimately connected to healthy economic, social and environmental systems. Sustainability is also very complex because it borrows elements from four more established concepts of sustainable development, corporate social responsibility, stakeholder theory and corporate accountability theory. Another element of sustainability can also be explained with Michael Porter’s Shared Values approach. It is an approach to business where you not only create economic value but you also create value for society by addressing its needs and challenges. This is not social responsibility but a way of achieving economic success. This is at the core of what these companies do as a business not in the margins. When you look at sustainability though you must evaluate the history of it and where it fits into business practices today. The principle...
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...computer science. An ad by game developer Gameloft on Naukri.com led him to a job in their Hyderabad office, where he eventually became a game designer. In 2009, he founded Twist Mobile, with apps such as Age Effect. He tied up with VServ to use their app-wrapper technology for ads embedded in apps. Success stories included becoming the first Asian company with 10 million downloads on Noki’s Ovi store. “Today’s killer app is tomorrow’s delete,” says Khutal, who has now branched out into Android and iPhone apps. Sriram Subramanya grew up in Pondicherry and started work in the auto ancillary business, with postings in Chennai and Bangalore and training in Germany. He later moved into the desktop publishing business, migrating from print designs to digital content. Sriram’s wife had to sell her jewellery at one stage to fund the growth of the company, Integra. A tight focus on quality, precision and business culture helped grow the company into one of the world’s Top...
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