Organizational Sustainability and Ethics - Literature review Example

Organizational Sustainability and Ethics Name Course Tutor Date Organizational Sustainability and Ethics Introduction The idea of sustainability emerged back in the early 1970s as stated by Edwards (2005). Currently, a number of groups and entities who have since embraced the motto are incredibly broad, including universities, non-profit making organizations, local communities and even industrial firms. Edwards (2005) claims that in general, businesses or institutions which claim they work towards sustainability normally intend to combine values of environmental responsibility, economic viability and social equity. Since sustainability continues into a mainstream, the majorly amorphous idea bent into numerous dissimilar shapes. The form of descriptions it takes in itself shows the paradox nature of sustainability. Therefore, this essay discusses the claim that sustainability is a paradox. To put this essay into perspective, the paper will define the term sustainability. As stated before, the term ‘sustainability’ holds numerous meanings. According to Ramirez (2012, p.59), it normally means the capability of a business to maintain its fundamental nature for a long time by means of its own endeavors. Sustainability is said to be paradox because it is both good and at the same time bad for an organization and society as a whole. In this essay sustainability means sustaining growth and competitive advantages of an organization over time. Sustainability builds and upholds the circumstances where organization and human can survive in a productive way, that enable satisfying the economic, social and other factor of current and future generations (Ramirez, 2012, p.59). Economic growth is paradoxical in nature of economic and sustainability, to some extent, a planetary effort to resolve the paradox of attempting to balance the encouraging impacts of economic expansion on employment, quality of life and poverty with the detrimental impacts that economic growth can have on environment and the direct social needs according to Smith & Sharicz (2011, p.73). Ramirez (2012, p.64) state that the paradox opinion is anchored in the notion that in each single component of certainty, there exist contrasting factors whose disagreement turns into a particular and new aspect that will then turn new divergent factors and, preserving some of the attributes of the initial circumstances, will show path-dependent characteristics. Paradoxes are always present all over in organizations and management; are specific and concrete, and used in the stock management in balancing costs of purchasing and holding stocks (Smith & Sharicz 2011, p.76). Even though sustainability is important to remain relevant and popular among customers, sometimes it defies ethics and moral principles which drive the society. Major reports have been documented to analyze and give opinions concerning sustainability. One of such report is Bruntland Report of 1987. The report holds that sustainable development within the company should be one which satisfies the present needs of the society, but not compromising the capability of the coming generations to satisfy their needs and wants as argued by Ramirez (2012, p.59). This report emphasized the plight of poor, and the environmental constraints to offer for current and potential needs. The report also focused the global issues over the outcomes of limited accessibility of natural resources so as to satisfy the world’s population needs which keeps on increasing as the years unfolds (Ramirez, 2012, p.59). According to Dimitrov & Davey (2011, p.87), proponents of sustainability claim that the concept is required to attract attention to reality that the development’s blueprint in the Western Countries from the industrial revolution years have resulted to severe environmental concerns and has strongly damaged the natural resources of the earth. In the past, there have been two major factors to pro-sustainability claims consisting of the limited nature of resources and pollution. The natural resources were the key issue in a seminal report of 1972 which talked about The Club of Rome, entitled “The Limits to Growth” (Dimitrov & Davey, 2011, p.86). In the recent past, climate change has been caused by human activities which has turned out to be a major points in such arguments. Advocates of sustainability argue of the three key pillars on the premise of supporting social equality, promoting the economy which they operate in and which benefits everyone, and safeguarding the environment (Ramirez, 2012, p.61). This holistic and rich strategy is certainly relevant with regard to discussions concerning the developing countries; several people who prefer sustainability contends that equity and social justice must be at the center of their top agendas, holding equal measures as the environmental issues. Jeffer, Bosse & Phillips (2010, p.59) contend that the claims are that developing countries cannot just follow the Western state of developments because they need to put up with scarce resources such as peak minerals, peak oil and inadequate fresh water and climate change. Some experts posit that developing nations are able to leapfrog pollution by using efficient and effective technologies as stated by Brian, Singhal & Subramanian (2010, p.431). Such initiative can offer a great contribution towards the concept of sustainability within the company and even its image. For instance, Toyota Motor Company has since adopted production of fuel efficient and environmentally-friendly by use of technology. Toyota is the leading company in environmentally-friendly automobile technology, most outstandingly RAV4 EV which it used to make between 1997 and 2003, and Toyota Prius which was introduced in 1997 and still continues to make as argued by JCNN (2005). In 2012, the company launched second generation of RAV4 EV and Prius. To improve its image and sustain its achievement and operations, in 2005, Toyota Company adopted a program dubbed Fourth Environmental Action Plan which revolves around four themes entailing the environmental research and development, design, manufacture and marketing (JCNN, 2005). The five-year program was directed towards creating a rejuvenated recycling-oriented society. Sustainability has also been practiced by usage of corporate social responsibility. A research conducted by David & Ramus (2007), indicates that 90 percent of the 500 firm involves themselves in CSR programs. CRS is aligned in the three pillars of sustainability, including supporting social equality, promoting the economy which they operate in and which benefits everyone, and safeguarding the environment (Baruch, Petrovits & Radhakrishnan, 2010). Some companies promote social activities to social equality among people within the society. Even though some perceive its corporate actions as marketing, the company has been supporting community development through sports. One of such cases was in 1984, when Nike inc. facilitated signing of a basketball legend Michael Jordan in 1984 which boosted the images and sales of Nike tremendously as stated by Mason (2014). Such form of CRS is proof that Nike is not only in making profit, but also concerned with the social issues affecting societal welfare. Nike has also participated in activities which promote environmental protection. The management understands that to sustain their operation within the environment, they need to preserve and embrace for the next generation. According to Mason (2014), a new environmental Non-governmental organization called Clean Air-Cool Planet based in the UK ranked Nike amongst the top three corporations (out of 56) which promote environmental conservation in a study. Others assert that sustainability encompasses an aspect of intergenerational fairness which is weighted up in favor of less fortunate and next generation. However, there are also numerous opinions opposing sustainability and think the word is broadly used and hold no much purpose. Actually, it is the individuals who are in favor of sustainability who still criticizes that word is much used on paper than the real actions. They pine that governments and companies can claim of being sustainable, but continuing with status quo (Ramirez, 2012, p.64). Today, in several instances the company growth has been criticized for neglect of ethics and corporate responsibilities. People claimed that companies have allowed fiscal imperatives to triumph over company’s and societal value of ethical behavior and social responsibility as the company strives to reduce costs of operation and uncertainty according to David & Ramus (2007). For instance, mining companies continues with extraction of minerals claiming they do that to be able to continue offering products such as oil or gas to their customers. To them, that can appear as sustainability, but in the real sense, they pose environmental threat by destroying water sources and increasing greenhouse gases into the atmosphere. For instance, Coca-Cola Company has been accused of excess water wastage without proper mechanism for conservation. In 2004, locals of Kerala blocked the operation of a $16 million Coca-Cola plant stating that it led to a severe decline of water to farmers (Stecklow, 2005). The critics also affirm that it is difficult to measure how sustainability can be realized. According to Smith & Sharicz (2011, p.78), some advocates of sustainability think that trade-offs needed among the three key pillars hold major challenge. Therefore, some prefer ‘strong sustainability’ where trade-offs are not permitted. Nevertheless, one of the outstanding and unflattering disapprovals of sustainability is its failure to improve the challenges the developing countries are facing and to make matters worse, it leads the developing countries further to a subsistence existence, poverty and inequality (Edwards, 2005). The concept of apt technology is considered as one of such cases– individuals coming from developing nations are urged to employ technologies like the hand water pump, donkey plough and hand wheel generator as opposed to modern technologies. Ramirez (2012, p.71) claims Sustainability’s opponents also identify the way it provokes negative opinions of fast developing nations like India and China. This is through condemning them for the environmental concerns, and results in arguments that individuals in some parts of the globe should not desire what individuals poses in the developed countries. Most of the investors from the developed countries currently target developing countries which are still rich in natural resources. From such, they know they can sustain their operations and expand their markets. As they extract minerals, they pose a threat to the environment and human. Similarly, companies have been criticized for pretending to involve themselves in CSR while their real intention is to market their products and improve their already tainted image as argued by Jeffer, Bosse & Phillips (2010, p.64). On idealistic opinion, the very idea of sustainability may be considered as talking of the present issues that is repugnant to people who want to transform issues for the poor individuals in the world. Conclusion The essay has found out that sustainability has been widely used by companies, government agencies and other institutions. Even though the sustainability is good for business for gaining competitive advantage and also to be able to serve and meet customers’ needs over time, some hide behind it exploit developing countries. As such, the term has remained just a paradox for a long time. As the world continues to improve in terms of knowledge and information, it becomes difficult to lie with the term sustainability. Therefore, it will not be a surprise when societies will rise up against companies who have the intention to exploit their minerals and even pose environmental threats. References Brian, J.W., Singhal, V.R & Subramanian, R 2010, An empirical investigation of environmental performance and the market value of the firm, Journal of Operations Management, Vol. 28, p. 430-441. Baruch, L., Petrovits, C & Radhakrishnan, S 2010, Is doing good for you? How corporate charitable contributions enhance revenue growth, Strategic Management Journal, vol. 3, p. 182-200. David, M. B & Ramus, C.A 2007, Including Corporate Social Responsibility, Environmental Sustainability, and Ethics in Calibrating MBA Job Preferences, Stanford Graduate School of Business, Research Paper No. 1981. Dimitrov, D.K & Davey, H 2011, Sustainable development: what it means to CFOs of New Zealand. Asian Review of Accounting, vol. 19, no. 1, p. 86‐108. Edwards, A.R 2005, The Sustainability Revolution, New Society Publishers, Gabriola Island. Japan Corporate News Network (JCNN) 2005, Toyota Outlines Fourth Toyota Environmental Action Plan, Retrieved September 5 2014, from http://www.japancorp.net/Article.Asp?Art_ID=10041 Jeffer, H.S., Bosse, D.A & Phillips, R. A 2010, Managing for stakeholders, stakeholder utility functions, and competitive advantage, Strategic Management Journal, vol. 31, p. 58- 74. Mason, W 2014, Nike's latest CSR report examines drop in emissions, labor challenges, South Florida Business Journal, p. 34-67. Ramirez. G.A 2012, Sustainable development: paradoxes, misunderstandings and learning Organizations, The Learning Organization, vol. 19, no. 1, p. 58-76 Smith, P.A & Sharicz, C 2011, The shift needed for sustainability, The Learning Organization, Vol. 18, no. 1, p. 73-86. Stecklow, S 2005, How a Global Web of Activists Gives Coke Problems in India, The Wall Street Journal, Retrieved September 5 2014, from http://www.indiaresource.org/news/2005/1062.html Read More