Managing People and Organisations: Sustainability at Brambles - Case Study Example

Managing People and Organisations: Sustainability at Brambles Introduction This essay is about the issue of sustainability at Brambles. Brambles is a company that provides supply chain and logistics solutions for corporate clients globally. In general, the essay examines the extent to which Brambles has embraced sustainable business practices. To address this issue, the essay evaluates the practices, strategies and policies of the company by using the sustainability phase model. Also, the essay identifies the various ways in which Brambles uses innovation to drive sustainable innovation practices. Lastly, the essay examines the overall performance of the organisation as regards the issue of sustainability and offers a few recommendations on what the management of the company needs to do to make the organisation a sustaining corporation. Brambles’ Commitment to Sustainability The extent to which Brambles is committed to becoming a sustainable organisation can be determined by analysing the policies, strategies and activities of the company using the sustainability phase model. Benn, Dunphy and Griffiths (2014, p. 13) propose the sustainability phase model as a useful tool that can be used to assess level of commitment towards sustainability that any organisation shows. The essence of this model is that an organisation typically moves through various stages during its journey of becoming a fully sustainable organisation (Benn et al., 2014, p. 14). The six stages or phases of sustainability that organisations go through, according to this model, are as follows: rejection, non-responsiveness, compliance, efficiency, strategic proactivity and the sustaining corporation (Benn et al., 2014, p. 14). All these phases are characterised by specific attitudes that companies have towards the issue of sustainability in general. Companies that are in the rejection phase of the model regard their human and environmental resources as mere sources of financial profit for the company (Benn, Dunphy & Griffiths, 2014, p. 15). Thus, such companies merely exploit their employees and the physical environment for financial gain. Companies that fall under the non-responsive phase of sustainability are focused on the business side of the corporation at the expense of concern for employees and the environment (Gallagher, 2012, p. 872). Such organisations are not considerate of their employees or the environment in which they operate because they are not aware of the need for companies to adopt sustainable practices (Gallagher, 2012, p. 872). The compliance phase is characterised by organisations taking specific sustainability-related measures to avoid sanctions from authorities (Benn et al., 2014, p. 16). Companies that realise the importance of suitability and only adopt sustainable human resource and environmental policies as a way of reducing their costs of operations are in the efficiency phase of the sustainability model (Benn et al., 2014, p. 16). For the fifth phase of sustainability, firms adopt sustainable business practices as a strategy of appealing to their various stakeholders (Benn et al., 2014, p. 17). The ultimate phase of sustainability for companies is the sustaining organisation (Gallagher, 2012, p. 873). The sustaining organisation is characterised by various beliefs, strategies and practices. Therefore, the beliefs, practices and strategies that are associated with a sustaining corporation can be used to assess the extent to which any company is committed to sustainability. In this case, Brambles exhibits several characteristics that show that the company is committed to the process of becoming a sustaining corporation. An important characteristic of sustaining organisations is that their value systems are based on the need for the companies to become sustainable (Benn et al., 2014, p. 17). Brambles, in its values, indicates that it is committed to sustainability. One of the values of the company is that it is committed to its people, teamwork, safety and diversity (Brambles, 2017). Safety, teamwork and diversity are important things that underscore the way a company treats its employees, customers and other stakeholders. In this regard, the management of Brambles acknowledges the importance of embracing diversity and teamwork and treating people well. Thus, this value of the company shows that Brambles is committed to becoming a sustaining organisation because it treats its people well. Another important value of the organisation is its devotion to respecting the community and environment in which it operates (Brambles, 2016, p. 3). Respect for the community means that the company realises the need to address the pressing problems of the community on the one hand and the importance of using natural resources well on the other. In practice, Brambles, through its operations, seeks to conserve the physical environment. For example, the company uses its technological knowhow to reduce the amount of waste that its customers generate during packaging and transporting goods (Brambles, 2016, p. 9). Also, the company actively seeks to reduce the amount of greenhouse gases that are emitted by optimising the supply chain and logistics operations of its client organisations (Brambles, 2016, p. 4). Therefore, Brambles is on the path to becoming a fully sustaining corporation because it values the physical environment in which it operates and actively pursues measures to conserve it. Another important feature that shows that an organisation is on the path to becoming a sustaining corporation is that the firm should clearly identify its role as a promoter of sustainability within the industry (Benn et al., 2014, p. 18). Essentially, sustaining corporations actively collaborate with all their stakeholders in the industry to achieve specific objectives of sustainability (Benn et al., 2014, p. 17). Thus, such an organisation plays the role of a leader in its industry as regards sustainability. In the case of Brambles, there is clear evidence that the company has positioned itself as a leader in the industry in matters related to sustainability. A clear example is how the company has prioritised sustainability in its business model. Brambles seeks to make value by making the logistics and supply chain activities of its customers sustainable (Brambles, 2017). Thus, at the heart of the operations of the company is the need to reduce waste, reduce pollution of the environment and make the entire environment more sustainable than it is. Therefore, there is evidence that Brambles is working towards becoming a sustaining corporation. How Brambles Uses Innovation to Drive its Sustainability Practices Sustainable business practices refer to the way organisations utilise resources with the intention of meeting the requirements of the triple bottom line concept (Crane & Matten, 2010, p. 548). By using the triple bottom line concept, companies can meet their financial objectives, care for the physical environment, and address the social issues in the societies in which they operate (Zadek, 2010, p. 131). Thus, the triple bottom line approach to business helps companies to be sustainable in that it enables them to use resources in such a way that does not undermine the capacity of future generations to use the resources. Brambles has several sustainability goals that is seeks to achieve by the year 2020 (Brambles, 2016, p. 2). All the goals of the company cover the three areas of the society, the physical environment and the economics of the company. To achieve all the sustainability goals that fall under these three categories, the company uses several innovative practices and technologies. For example, Brambles intends to achieve zero levels of deforestation, emissions and waste production (Brambles, 2016, p. 2). These goals form the primary concern of the company as regards the physical environment. Also, the company intends to improve the supply chains of the companies that it works with, increase the level of collaboration with all its stakeholders and establish itself as a good place for its employees (Brambles, 2016, p. 2). These goals are related to the business aspect of sustainability in that they are enable the company to deliver value through its products and services. In addition to these goals, the firm intends to address the following issues that relate to the society in which it operates: education, food security and the overall environment. The company uses a process called upcycling to achieve its goals related to conserving the physical environment by reducing waste and emissions (Brambles, 2016, p. 4). Upcycling enables the company to implement its environment-related sustainability practices. Also, Brambles uses innovative information and communication technologies to achieve its business-related sustainability goals (Brambles, 2016, p. 8). The use of emerging Internet-enabled technologies through BXB Digital enables the company to collaborate well with its stakeholders and deliver value. Overall Performance of the Organisation and Recommendations for Improvement Analysis of the overall performance of Brambles can be based on the following key issues: the culture and diversity of the company, the extent to which the company is ethical, the design of the organisation and the decision-making processes that are in use. Organisational design refers to the way an organisation uses structures and processes to help it achieve its vision (Schermerhorn et al., 2014, p. 271). Companies seek to use organisational designs that help them to respond effectively to contingencies and fulfil their missions (Schermerhorn et al., 2014, p. 272). Thus, a good design takes into consideration various contingency factors such as employees, strategy, the need for control and the external environment. Brambles is organised into three business units: the pallets unit that offers reusable pallets for the customers of the company, the reusable plastic containers unit which provides reusable plastic crates for businesses and the containers business unit that provides intermediate bulk containers for large companies in the manufacturing sector (Brambles, 2016, p. 1). The bureaucratic design of the company takes into consideration the need to network with the various stakeholders of the company (Brambles, 2017). For example, the design of the company allows employees to collaborate with the clients of the company and make better business decisions because they operate in a well-structured environment. Moreover, the design of the company allows the company to be flexible and respond to changes in its external environment fast and appropriately. This level of flexibility and balance between the need for independence of the employees and control by the management of the company is depicted in the circular business model that the company uses. Therefore, because the company has aligned its structures and processes to possible contingencies in its area of operation, there is no need for the company to change its design. Regarding innovation and decision-making practices, there several areas that the company needs to address to remain competitive and achieve its objectives. For example, the company considers innovation as the core aspect of its circular business model (Brambles, 2016, p. 10). Innovation is integral to the success of the circular business model because it enables the company to successfully implement its policies of reusing and recycling packaging products as a way of creating value (Brambles, 2016, p. 10). Moreover, the company relies on innovative technologies to create packaging and logistical solutions for its clients. The most prominent technology that the company uses is upcycling. Through upcycling, the various business units of Brambles successfully reduce the carbon emission of the company’s products and processes by completely recycling plastic packaging materials that are used by its clients (Brambles, 2017). Regarding innovation, the company has established a unit called BXB to take advantage of the growing use of Internet technologies to leverage its activities (Brambles, 2017). However, given the size of the company and the complexity of its operations, it is imperative that the company prioritizes how it can use information and communication technologies in general to optimise its various operations and enhance the quality of its relationships with stakeholders. Culture and diversity are important aspects of organisations that reveal the extent to which organisations are sustainable. In general, corporate culture refers to the beliefs, practices, artefacts and stories that determine how employees of an organisation behave (Eccles, Ioannou & Serafeim, 2012, p. 3). Given that culture influences the behaviour of individuals, it is an important indicator of the extent to which individuals in any given organisation can embrace sustainable practices. On the other hand, diversity refers to the way the workforce of an organisation includes people of both genders, from different socio-cultural backgrounds and of different ages (Schermerhorn et al., 2014, p. 10). An inclusive organisation is made up of individuals from all social and cultural backgrounds because its culture enables the organisation to hire, train and promote people from all backgrounds (Mor Barak, 2013, p. 4). Brambles has successfully initiated many programmes to increase the level of diversity among its workforce and turn the company into a truly multicultural organisation (Brambles, 2017). So far, the company has successfully addressed the issue of gender representation in management as well as pay disparities between the genders (Brambles, 2016, p. 14). Moreover, the company successfully runs programmes to enhance the level of employee engagement for all its employees. However, there are other issues that the company needs to address to become a truly multicultural organisation. It is generally recommended that the company addresses the issues of high rates of employee turnover in its business units and seeks to increase the percentage of employees from minority groups in its global business units. Although the company operates in different countries, it does not provide figures to show that it has put in place measures to promote the inclusion of individuals from minority groups in its global workforce. There are various things about the extent to which the company is ethical that should be noted. In theory, a company is considered ethical if it is committed to addressing the needs of its stakeholders (Schermerhorn et al., 2014, p. 122). In general, ethics within the context of corporations is considered a subset of corporate social responsibility. A company that is socially responsible is accountable for its actions and ensures that it factors into its decision-making processes the needs of all its stakeholders (Schermerhorn et al., 2014, p. 122). Companies adopt social responsibility practices because they seek to not only address environmental concerns, for example, but also enhance their public image (Gupta, 2009, p. 34). In this case, Brambles is committed to addressing various environment-related problems. For example, the company is committed to reducing the amount of carbon emissions through its highly-advanced logistics solutions (Brambles, 2016, p. 15). Moreover, the company is committed to helping reduce the amount of waste from packaging materials that is dumped by recycling all its packaging materials and helping companies avoid dumping waste from used packaging materials (Brambles, 2017). In other words, the concept of environmental sustainability forms the core of the business model of Brambles. Moreover, because the company seeks to make the planet a better place through its various products and services, it can be considered highly ethical. It follows that the company only should retain its commitment to corporate social responsibility by addressing the needs of its various stakeholders including the physical environment, employees and partners as outlined in its sustainability goals. Conclusion In conclusion, Brambles is on the path to becoming a fully sustaining corporation. To a big extent, the company shows the characteristics that are associated with fully sustaining corporations. It is committed to treating its people, the society and the environment well. Moreover, the company has prioritised the issue of sustainability in its values as well as operational model. Brambles has positioned itself as a leader of efforts at making organisations sustainable in the industry. Moreover, the company effectively collaborates with its stakeholders to ensure that it achieves all its sustainability goals. Therefore, the firm should maintain these policies and strategies. However, Brambles needs to address the issue of workplace diversity. It is not yet clear how diverse and inclusive the workforce of the company is, apart from the favourable male and female ratios that the firm has achieved. References Benn, S., Dunphy, D., & Griffiths, A. (2014). Organisational change for corporate sustainability. New York: Routledge. Brambles. (2016). 2016 Sustainability review. Brambles. (2017). About Brambles. Retrieved from http://brambles.com/about-brambles#section-span-classlevel-1span6span-sustainability-span--4244 Crane, A. & Matten, D. (2010). Business ethics: Managing corporate citizenship and sustainability in the age of globalisation. Oxford: OUP. Eccles, R. G., Ioannou, I., & Serafeim, G. (2012). The impact of corporate culture of sustainability on corporate behaviour and performance. Harvard Business School Working Paper, 12-035. Retrieved from http://trippel.sdg.no/wp-content/uploads/2014/09/Eccles-HBR_The-Impact-of-a-Corporate-Culture-of-Sustainability1.pdf Gallagher, D. R. (2012). Environmental leadership. London: SAGE. Gupta, A. D. (2009). Corporate citizenship: Perspectives in the new century. London: Cambridge Scholars Publishing. Mor Barak, M. E. (2013). Managing diversity: Toward a globally inclusive workplace. London: Sage. Schermerhorn, J. R., Davidson, P., Poole, D., Simon, A., Woods, P., & Chau, S. L. (2014). Management (5th Asia-Pacific Edition ed.). Milton, Australia: John Wiley & Sons. Zadek, S. (2010). The civil corporation. Earthscan. Read More