Why Managers Must Create a Culture of Sustainability - Coursework Example

SUSTAINABLE LOGISTICS AND SUPPLY CHAIN MANAGEMENT Name Institution Professor Course Date Introduction Business sustainability is an objective for all businesses. Conventionally, businesses uphold a powerful focus of aspects that hold direct and apparent impact on the economic performance of the businesses. Firms assess the economic performance via assessment of financial measures that include profit margins, costs of material and sales. In the contemporary world, businesses take wider view and consider their relationship with the society and environment. Through effective relationships with the environment and the wider society, firms are in a position to assess fully the actual and potential effects on their businesses. Based on the context of the triple bottom line of economic, environmental and social sustainability, this essay provides an understanding of sustainability, and, why modern managers should establish a culture of sustainability in organisations. The essay contends that a culture of sustainability is very useful in all areas of business operations, particularly in sustainable development and finance. Defining Sustainability People have recognised that profitability is one component of the long-term success of businesses. While the profitability of a firm is essential for its sustainability, the future of the planet and humans also accounts in the sustainability of a business (Longoni 2014). The triple bottom line entails the interrelationships of economic, environmental and social development. For a business to be sustainable, it must integrate economic, social and environmental goals. The triple bottom line expands the definition of sustainability to include not only profits but also the plant and people. Therefore, the triple line bottom line of profit, people and plant takes into account environmental and social effects of a business in search of profits. This implies that sustainability entails the improvement of human wellbeing besides ensuring social equity for future and present generations while protecting the life-supporting ecosystems of the planet. Based on the triple bottom line, , sustainability for business implies attaining economic prosperity without damaging society. A business cannot attain sustainability without the consideration of people, planet and profit. Therefore, sustainability is attainable through effective balancing of social, economic and environmental sustainability elements. Laasch and Conaway (2014) assert that sustainability of a business is measured through assessing the impact of the business on environment, society and economy. Pillars of Sustainability Sustainability holds three pillars that include economic, social and environmental considerations. According to Longoni (2014), the economic aspect of sustainability is described as having the capacity to generate adequate cash flow to ensure liquidity and offer a importunate long-term return that include achievement of the economic requirements of a firm and its stakeholders. Economic sustainability entails the direct economic impacts, long-term competitiveness and success of a business triggered by the quantity of sales, profits and market share. Besides shareholder profits and wealth, businesses need to consider long-term benefits of a firm to attain economic sustainability. With respect to environmental sustainability, Longoni (2014) asserts environmental sustainability in a business is attainable when a business uses natural resources at a rate below their natural regeneration or utilises substitutes. A firm attains environmental sustainability through limiting emissions of green houses gases or through involvement in activities that do not degrade the ecosystem. With respect to the triple bottom line, firms attain environmental sustainability through lowering the impact on their processes and product to the environment. The processes entail all the stages in the supply chain that include purchasing, production and delivery of products. Environmental sustainability touches on key areas of a business that include purchasing policies and supplier partnership, eco-design and product innovation, pollution prevention and logistics processes. Social sustainability, on the other hand, is linked to a firm’s effect on its employees and the surrounding communities. It entails the management of social resources and enriching people in organisations and within the wide community and supply chain. In addition, social responsibility focuses on the effects of a firm’s processes or products on human welfare and safety, community protection and development. The major elements of social sustainability include labour practices, health and safety, training and education, employment, and diversity and opportunity. Longoni (2014) asserts that social sustainability is attained when structures, systems and processes within a firm actively support the development and preservation of skills for both the present and future generations. Socially sustainable companies promote health and support democratic and equal treatment of all that permits high quality life (Wilson 2015). Social sustainability is attained when everyone is taken into consideration through consideration of safe work conditions, prospects for development and education, and health care. Why Managers Must Create A Culture of Sustainability The emergence of considerably big firms prompts their negative impact upon the environment and society. Negative influences principally the outbreak of the crisis facing the contemporary world that is mirrored through global warming, discrimination and neglect of human rights requires novel business thought-ways of managers within the business setting. The triple bottom line establishes a novel way of understanding the role of businesses in the society and environment (Boljevic 2005). Society, environment besides profits have become the major drivers of business success in the modern world. Establishing a socially, environmentally and economically sustainable culture better positions businesses in the eye of diverse stakeholders, lower costs of operations, enhance profitability and facilitates procurement of a more qualitative labour force. Creating a culture of sustainability also promotes the sustainability of a firm’s supply chain. Ulrich (2010) asserts that business managers must embedded their economic considerations in a superordinate societal and environmental blueprint in order to attain sustainable development. Creating a culture of sustainability is beneficial to firms as it augments productivity and lowers costs, enhances investment and financial prospects; promote energy efficiency for a better environment and augments employee recruitment and retention. A culture of sustainability promotes engagement of employees and increases market prospects. According to Guziana and Dobers (2012), organisations are under tremendous pressure to assess and report on more than just their financial performance. The increasing rate of sustainability reporting is aimed at attracting investors and winning a competitive advantage. Therefore, creating a culture of sustainability is a source of competitive advantage. According to Gekonge (2011), the strength of a firm’s culture is one of the most essential competitive advantages. A firm must create a culture of social and environmental sustainability where workers passionately pursue the organisation’s mission and cause. Establishing a culture of sustainability generates value and promotes the image of a company. A culture of sustainability attracts investors. Gekonge (2011) asserts that although sustainability activities generate immediate business advantages in terms of cost savings and improved relations with stakeholders and the communities, many of the benefits linked to a culture of sustainability are more long-term. A culture of sustainability increases the growth of revenue, lower operating costs, improve productivity and efficiency through reduction in resource utilisations, increases access to capital and improves the value of a company’s products. Galpin, Whitttington and Bell (2015) claim that a culture of sustainability embedded into a business core values influences the attitudes and behaviours of employees. People are more likely to be proud of working in organisations that take their responsibilities to the society into consideration. More so, people relate well with firms that show environmental responsibility as well as firms that are doing well economically. Galpin et al. (2015) maintain that a culture of sustainability promotes recruitment and retention of resourceful employee. However, deploying productive sustainable operations policies is complicated and calls for effective skills of managers. One of the principal intricacies linked to deployment of sustainable policies is the consideration of all the three elements of sustainability. Initially, sustainability priorities in operations management principally linked to environmental sustainability. According to Longoni (2014), modern businesses must embrace sustainability in a manner that puts into consideration social, economic and environmental priorities .To ensure effective establishment of a culture of sustainability in their firms, managers must reconsider their business models and strategies in order to integrate sustainable value drivers as a portion of their business objectives. Conclusion Sustainability according to the triple bottom line entails integration of environmental integrity, social contribution and economic prosperity. The triple bottom stresses on the importance of social considerations, environmental considerations and economical considerations in a business. In the contemporary world, there is a developing global awareness of social and environmental impacts of business activities. The negative effects of a business practices to the environment and society negatively affect their profitability and performance. To address these concerns, modern managers must create a culture of sustainability. A culture of sustainability proves very useful in all spheres of business operations particularly in sustainable development and finance. Success of a business requires both a structured program to promote performance and a sustainability philosophy. However, firms require a systematic approach to creating and promoting a culture of sustainability. (Word Count 1439) References Boljevic, A 2009, ‘ Social responsibility of management as part of the company development policy’, Economic Themes, vol.47, no.4, pp.187-199. Galpin T, Whitttington JL & Bell G 2015,'Is your sustainability strategy sustainable? Creating a culture of sustainability', Corporate Governance: The International Journal of Business in Society, vol. 15 no. 1, pp. 1-17. Gekonge, C 2013, Emerging business opportunities in Africa: Market entry, competitive strategy, and the promotion of foreign direct investments, UK, IGI Global. Guziana, B, Dobers, P 2012, ‘ How sustainability leaders communicate corporate of sustainable development’, Journal of Corporate Social Responsibility and Environmental Management, vol.20, no.20, pp.193-204. Laasch, O & Conaway, R 2014, Principles of responsible management: Global sustainability, responsibility and ethics, UK, Cengage Learning. Longoni, A 2014, Sustainable operations strategies: The impact of human resource management and organisational practices on the triple bottom line, UK, Springer. Ulrich, P 2010, ‘ Civilising the market economy: The approach of integrative economic ethics sustainable development’, Economics, Management & Financial Markets, vol.5, no.1, pp.99-112. Wilson, JP 2015, 'The triple bottom line: Undertaking an economic, social, and environmental retail sustainability strategy', International Journal of Retail and Distribution Management, vol. 43 no. 4/5, pp. 432-447. Read More