The main aim of this report is to critically assess the sustainability choice that is available to a business, and also to evaluate the sustainability performance as well as actions of the firm through application of suitable scholarly frameworks. The entire report is divided into five parts, where all the objectives will be critically assessed and interpreted. Apart from it a set of recommendation has also been developed at the end of this report towards the chosen organization.
With the changing business scenarios, organizations around the globe are facing multi facet challenges, both internally and externally. Jones and Jones (2010) in his book ‘Handbook of organizations’ have asserted on this growing challenges, and according to him the business sectors are becoming complex through the course of time, and this complexity is acting as both challenge as well as the opportunity for the organizations currently.
In the assignment one, one of the main challenge asserted was on the employee-skills. March (2013) also supports the notion put forth by Jones and Jones (2010); that the challenges within the business sector is significantly increasing, especially the technological, structural and also environmental challenges. In order for the company to overcome, it is important for the workforce as well as the management to equip the skills and ability required, in order to adapt with the change itself. On the other side empowering the employees and the management would not only makes the entire organization capable of facing and overcoming the scenario, but also would help the firm to acquire competitive edge and market leadership as well.
Another important address made in the assignment one was on the growing demand for the quality and the productivity. According to Goetsch and Davis (2014), quality is the degree in which the customers believe that a particular product has met and sometimes even exceed their expectation. For example, today when a customer purchases an Apple smart phone or an Iphone, there are few expectations adhered in the customers, and the future sales and success of that smart phone has a larger dependency on the rate in which the customers are satisfied. At the same time, it is also important for the organization to meet the demand through productivity once the demand and sales go high with the respective product through sustainable means. Although quality and the productivity factors are indeed posed as challenges for an organization, nevertheless these factors would also pose as opportunity that boosts the organization in its many aspects, including the brand equity.
Third and the final challenge asserted in the assignment one was on the management of diverse workforce. The term diverse encompasses a wide variety of category, and this includes ethnicity, race, homosexual, elderly, physically challenged and sometimes even community based. According to Harvey and Allard (2015) managing the diverse population or the diversity management is a persisting challenge within an organization. Although there are various scholarly as well as business frameworks developed for the effective management of the diverse population within an organization, accommodating the diverse workforce by acknowledging their difference in their lifestyle, family requirements and work style is still an ongoing challenge for the companies. However, a company’s objective of recruiting diverse population has always been primary due to the potential it brings forth.
2. Strategies to Address the Challenge:
Every organization has either a collective or individual strategies to address the issues or the challenges ahead. McNie (2012) defines strategy as an action plan structured to acquire a long-term objective or sometimes to overcome an obstacle.
Although most of the companies are indulging in off the job training and coaching sections, it proves to be insufficient, says McNie (2012). This is mainly because the awareness and exposure that the employees are getting during off the job top training are not effective as the on the job, where the employee could comprehend learn through trial and error.
According to Daley (2012) there are three main strategies for improving or developing the employee skills, and they are mentoring, networking and nurturing.
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| Source: Daley, 2012 |
- As per Daley (2012) mentoring is the process of advising and guiding the employee through the work procedure. During a recent interview with the Coca Cola Manager Brandon M. Buchanan, he asserted that the on the job training has more potency than the off the job training (Maya, 2017). As a part he profoundly believes that the act of mentoring is most effective and efficient one. Through mentoring strategy Daley (2012) asserts that the manager or the employer could guide the workforce suitably through real life scenarios and with this it is not only the knowledge that is expanding for the employees, but awareness as well. He also affirms that the employee knowledge and awareness in the environmental aspect of the company and the industry will be strengthened through this strategy.
- Through the strategy of networking, the employees are able to forge themselves with the organizational culture as per Daley (2012). In a recent article from the popular Virgin Groups, the Chairman and the Founder of the company Sir Richard Branson have emphasized the importance of employee networking. Through this method he have affirmed that the employee confidence level in many areas have increased significantly.
- Another main strategy proposed by Daley (2012) is through nurturing, and by the term ‘nurturing he meant to provide the right experience to the employees, and make them evolve within it. It is important for the employees to gain knowledge and experience in multiple areas in order to become efficient, and the area includes technological, structural and environmental. For this, nurturing would enable the management to develop the skills in these areas says Daley (2012).
According to Griffin (2012) it is important for every organization to improve its products’ quality as well as productivity, since this would contribute to the increase of the customers as well as satisfaction of the employees. With the traditional approach of process mapping, cost-benefit analysis and benchmarking, an organization could acquire the improvement in the workflow, however, in the current context it is also important for the companies to be aware of environmental issues as well while strategizing quality and productivity improvement. Therefore the productivity could decrease the percentage of defects, delay, cost as well as the other environmental issues as per Griffin (2012).
Source: Griffin, 2012 - Assessing the Process: Through standardization of the policies and procedure in order to improve efficiency.
- Effective Alignment: The business process should be aligned with the industry standard, especially of the environment and workplace health and safety.
- Developing Performance Scale: With the use of key performance indicators as well as the environmental standards, the organization should be able to forecast the future outcomes.
- Efficient Quality Testing: The product should comply with the industrial as well as environmental policies, and at the same time should decrease the defect by a greater percentage.
Diversity management is not only a strategic requirement for the organization today, but also ethical as well. As Labelle et al (2010, p. 341) stated, “Although the traditional notion of diversity management as an ethical necessity has surpassed, still most of the organizations consider it as an essential ethical element.” However, in the current context, the major importance is given on its potentiality rather than the ethical aspect. As Labelle et al (2010) pointed out; the amalgamation of various cultures contributes to enhancement of creative ideas and experiences. There are mainly three strategies that could pave path to the effective management of the diverse workforce, and they are;
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| Source: Labelle et al, 2010 |
- The recruitment process: An effective recruitment process by providing equal employment opportunity guidelines.
- Training: Providing effective training and education in order to nurture the skills of the diverse workforce
- Reviewing the Policy: Ensuring equal treatment to all the workforces.
2.4. How Organizations can become Responsible for the production of Sustainable Products:
Over the past two decades, the significance of sustainability has increased tremendously. Various researches conducted around the world are pointing out the benefits a company could acquire by turning themselves into a responsible organization by producing more sustainable products. Srirangan et al (2012) asserts that by the production of sustainable products, the organization could become responsible mainly in two crucial areas.
- Reduction of Waste: One of the important aspects to adapt to the production of sustainable products is to reduce the waste.
- Decrease the Risk of Environmental catastrophe: With the emergence of issues such as climate change and global warming, the environmentalists as well as scientists around the globe are asserting to cut down the level of usage unsustainable products. Hence by the production of sustainable commodities, the organization could contribute to environment and its sustainability.
3. Impact of adapting responsible approach over the customers:
The quality of an organization is pivotal in the current business context. As all the business required being responsible towards the society as well as towards the environment they thrive upon.
According to Maxwell and Van der Vorst (2009) it is the quality of the organization that determines its ability to thrive and survive during the economic fluctuations, and one of the main qualities is always acquired through being a responsible company. By the term ‘responsible company’ the authors asserts on a company that projects quality in all its aspects, especially by giving primary importance to the society and environment; in the second context is also important to have elements such as efficient and effective employees, improved quality and productivity, and also effective as well as efficient diversity management system in order for a company acquire quality.
According to a recent study, it has been found that companies that produce more sustainable products with quality, and also has an efficient workforce would contribute to the increase of the overall profit and would also boost the brand equity of the company (Allwood et al, 2012). It is also an evident factor that in the current business context, customers are willing to pay more on the sustainable products.
Today more and more companies are adapting to sustainable and responsible practices, and this is mainly because of the understanding that these two factors have turned into crucial strategies for the business to acquire market leadership and competitive edge. As Allwood et al (2012) stated, today the business organizations around the world could expect a lump-sum return on their investment through practices that are environmentally and socially sustainable. For example, today the consumers in UK and Australia are willing to an extra $3 for a bottle whine that is produced through sustainable practices (Aschemann-Witzel, 2015). It is important to note at this point that these consumers are willing to pay for the products that made through sustainable practices; in fact the figures actualize the fact that they are already buying the products, which was certified as ‘sustainable.’
In another study conducted by the Solar City Group over the ’Consumer Trend and Sustainability’, it has been found that 72% of the customers wanted know about the sustainability initiatives adapted by the organization; 75% customers are most likely to buy products from a company that is responsible and are initiating enough effort on the sustainable practices; 82% of the customers are most likely to buy products from the companies that projects Corporate social responsibility than those companies which projects less; and 93% of the customers are aware of consuming the energy and protection of the environment (Solarcity.com, 2017).
During a 2013 industry-environmental study conducted in the United States by Gibbs and Goel (2013), asserted that 75% of the people affirmed that they buy products from the companies that adopts sustainable practices, 60% of the people said that they read news on companies that are going green; while 72% of the people showed interest in learning on the sustainable practices that the companies are practicing.
Understanding these perspectives of the customers, it becomes clear that majority of the customers around the world are becoming more aware of the sustainable practices and the importance they give to those companies that are practicing it. And through sustainable practices and by becoming a responsible company there are mainly two advantages or the benefits that it would achieve in the business perspective, an enhanced brand awareness and a competitive advantage (Maxwell and Van der Vorst, 2003).
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| Source: Maxwell and Van der Vorst, 2003 |
Maxwell and Van der Vorst (2003) states that, by improving brand awareness, the company projects that they are ‘doing good’ for the environment as well as for the society, since this becomes one of the major pillar not only for the company’s sustainability within the industry but also for its growth as well. Many companies are today integrating their sustainable practices and corporate social responsibility with their marketing campaign. For example, the 2017 TV commercials of Pepsi and Colgate in UK, on the water conservation and the employee welfare respectively caught attention from the viewers. It has been reported that there has been 9.3% increase in the sales after that advertisement is aired in UK (Solarcity.com, 2017).
4. Conclusion:
As discussed in the report, there are tremendous challenges that a company has to face today, and among them adapting to sustainable practice and also being a responsible company is the most difficult one. Although there are various challenges when it comes to adaptation of the sustainable practices by various companies, there are few that are considered crucial and require immediate attention. One of the main issues is the lack of employee skill and knowledge, the other is the improvement of quality and productivity through sustainable practices and third is to effectively manage the diverse workforce. The first two are considered as a direct contributor and the third, an indirect contributor. It is also important to understand that all these challenges pose as a business opportunity in another aspect, hence by finding resolution for each of these issues with suitable strategy, would opens up the opportunity abided in each. The report also discussed impacts a responsible organization would make on its relationship with the customers, mainly through emphasizing growing customer awareness and knowledge on the organizational company practices.
5. Recommendations:
It has affirmed that the adapting to sustainable practice and being a responsible company would not only bring forth company sustainability, but growth as well. Comprehending its significance and its role in enhancing the business opportunity, few recommendations are synthesized for the company.
- It has been understood through the study that it is important in the current context to improve the skills and knowledge not only on the business and industrial aspect, but also on the environment and sustainable practice as well. For this reason it is recommended that the organizations should equip their employees with adequate knowledge on the importance of environment and on the related sustainable practices that the company is operating on.
- Improving the quality and productivity of the organization is another challenge that a company could turn into an opportunity. The study has also affirmed that more and more customers are now buying products, which are made through sustainable ways. For this reason it is recommended for the organizations to develop effective and efficient plan to improve the quality of the product and also productivity of the organization through sustainable ways. Integrating quality with suitable ways of production would help the organization in its growth in the long run, this includes enhancement of brand awareness and increasing competitive advantage.
References:
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