This website uses cookies to ensure you have the best experience. Learn more

Corporate Sustainability Essay

5201 words - 21 pages

CORPORATE

SUSTAINABILITY

&

HENKEL’S

APPROACH

There is a growing trend for big companies to use sustainable concepts as core business drivers
For decades, many companies have typically responded to sustainability challenges by pursuing incremental operational improvements. But we are beginning to see an interesting new trend – businesses using sustainability as a tactic for long-term offense, rather than just short-term defence.
Despite the uncertain economic outlook, leading international companies across diverse sectors are investing heavily in sustainable products and services. Others are making cross-industry partnerships to develop next generation products such as ...view middle of the document...

) heighten the importance of sustainability practices that increase organisational resilience and ensure companies’ long-term competitiveness.
Adoption of Corporate Sustainability
 
Adoption of corporate sustainability varies significantly by industry. A new study by MIT Sloan Management Review (Knut Balagopal et al, “The Second Annual Sustainability & Innovation Survey”, Winter 2011) reports the highest levels of commitment to sustainability in heavily regulated industries (e.g., chemicals), brand-sensitive industries (consumer products), and resource-intensive manufacturing industries (commodities, industrial products).
 
Adoption rates are lower in service industries (finance, media/entertainment) where energy consumption, environmental protection, and related factors are less salient. But even in late-adopting industries, organisational commitment to sustainability is steadily rising, signaling widening acceptance of sustainability as a standard part of the repertoire of international corporate management.
 
Surveys of global executives also show important regional variations. European corporate managers report a greater commitment to sustainability than their U.S. counterparts, an unsurprising finding given stronger regulatory pressures in the European Union and the prevalence of “shareholder” models of corporate governance in continental Europe over American-style stakeholder capitalism.
 
The factors driving adoption of corporate sustainability also differ by region. Corporate executives in North America are less motivated by advisory boards, advocacy organisations, and NGOs than managers in Europe, Asia-Pacific, Australia/New Zealand, Africa/Middle East, and Latin America. But North American managers face increasing pressure to converge toward rest-of-world standards on sustainability, as weak growth in the domestic market induces U.S. companies to expand their global operations.
 
Recent survey research provides interesting findings on the role of ownership structure in corporate sustainability. A study by McKinsey Quarterly reported 74 percent of respondents from publicly owned companies were systematically integrating environmental and social factors in corporate decision making, against 63 percent of privately owned firms. (“McKinsey Global Survey Results: Valuing Corporate Social Responsibility”, 2009). The high rate of adoption by listed companies illustrates the increased sensitivity of managers to shareholder concerns over the impact of corporate conduct on equity values and corporate earnings.
 
Managers of private enterprises are not beholden to shareholder interests, and their adoption of sustainability practices eventually depends on the personal commitment of the founders/owners. But private companies are not wholly immune from external pressures to adopt sustainability programmes, particularly enterprises in global industries where environmental protection and brand equity are critical issues. In response to...

Other Essays Like Corporate Sustainability

Woolies Financial Report

3756 words - 16 pages retail businesses and logistics who manage process changes to embed sustainable business practices, as well as share ideas across divisions and facilitate the Eco Ambassador program. This group together with the Eco Ambassadors are charged with making sustainable business practices live on the shop floor. Expert advice Woolworths has also set up a Corporate Responsibility Panel of external experts in sustainability, ethics and other relevant

Johnson & Johnson: A Case Study On Sustainability Reporting

749 words - 3 pages JOHNSON & JOHNSON: A CASE STUDY ON SUSTAINABILITY REPORTING When compiling data for its sustainability reports, Johnson and Johnson does not request direct input from its managerial accounting staff. What should be the role of management accountants in collecting and reporting sustainability data? Could Johnson & Johnson’s sustainability reporting be improved with input from managerial accountants? Why or why not? The role of

Host Europe

816 words - 4 pages eco-efficient data centre and company nursery school, switching to renewable energy supplies and making a commitment to the community through its philanthropic activities (Hahn, 2010). 2) DESCRIPTION The case deals with issues of corporate social responsibility (CSR) and sustainability in the specific setting of a medium-sized enterprise (Host Europe) in the IT industry. Host Europe is the third largest web hosting company in German-speaking

Sustainable Management

1109 words - 5 pages Sustainability is defined as being, “Capable of being continued with minimal long-term effect on the environment” (The free dictionary). This idea of longevity is broken into three aspects: environment, society, and the economy. These three aspects are used in harmony to help define sustainability, which is referred to as the triple bottom line (TBL). Demands for corporate sustainability stem from stiff laws and regulations, fear of loss of

Sustainability

1353 words - 6 pages this growing corporate consciousness. Of course for a business as a whole to be environmentally sustainable, it needs to do more than tenant a ‘green’ building, or use sustainable waste disposal practices. It needs to create a culture in which attitudes towards ecological sustainability change from a view of compliance to a companywide attitude shift toward sustainability being a social responsibility. The human resources component of the

Sustainbale Media Journal

1997 words - 8 pages attached great importance to the role of innovation and natural capitalism in building value. Many incentives push companies to respond proactively to calls for compliance in pursuit of sustainability. The public have changed expectations of corporate behavior, focusing more on corporation’s action on environment protection. More regulations and policies have enforced companies to perform sustainable. The Chinese government announced in

Current Developments of Sustainability Reporting

882 words - 4 pages Sustainability Reporting Framework. It is recommended to be used as basis for all organizations’ reports. And it is updated by a lot of researches, for the purpose of better assessing corporate performance by continuous providing newer and more accurate indicators. Moreover, it consummates reporting principals and guidelines---offering report contents, report quality define criteria and report boundary. Relevant implementation issue As OT is still using

Environmental Sustainability

2910 words - 12 pages Executive summary This report seeks to define Environmental sustainability and examine its importance in the contemporary world of corporate dominance in the world arena. Business activities are regularly having an increasing contribution to environmental problems and threatening sustainability. Phenomena like climate change and extreme weather events have evidenced the effects of relentless use and overuse of natural resources. The need for

Disney Sustainable Practices

1281 words - 6 pages , and its Marvel Entertainment is a film producer and top comic book publisher. In addition, Walt Disney Parks and Resorts operate the company's popular theme parks including Walt Disney World and Disneyland. The primary environmental challenges that Disney faces as they strive towards improving their corporate sustainability practices are as follows: 1) The theme parks and movie studios create a great deal of waste. 2) The affiliate

New Belguim Brewery

1582 words - 7 pages environmental footprint of their operations and products by looking at transportation, packaging, waste, energy, toxic substances, water, and CO2 emissions. * Create a high-involvement corporate culture which values and rewards everyone’s contributions. * Have a management system which demonstrates environmental commitment by setting goals and regular reporting. * Are working with others to improve the sustainability of their industry

A Csr Do Collection

1259 words - 6 pages A simple guide to understanding how the business benefits of corporate responsibility can be realised.  Benefits explored include: • Reputation management • Risk management • Employee satisfaction • Innovation and learning • Access to capital • Financial performance ----------------------------------------------------------------------------------------------------------------------- |Strategic Corporate

Related Papers

Will Sustainability Reshape The Corporate Environment?

2232 words - 9 pages Globalisation and technology have reshaped the corporate environment over the past decades. Will sustainability have a similar effect and what implications does this have for business? In this essay argues that technological development, globalisation and sustainability are integral parts of the life cycle of technological change. However we have in the recent past witnessed n environmental sustainability issue of significance never

Commonalities Between Sustainability Companies And Business Leadership

1459 words - 6 pages Commonalities between Sustainability Companies and Business Leadership Name Institution  The globe has shifted its focus to corporate sustainability over the past few years. The public are no longer contented with companies that emphasis maximization of short term profits, instead they are interested in companies that are concerned with human needs as a whole. Research indicate that many companies are taking these shifts seriously and have

Acc 310 Sustainability Report

2598 words - 11 pages company’s report from the GRI webpage (globalreporting.org) or from the company’s corporate webpage. Sustainability reporting is not required Even though more and more companies are providing sustainability reports there is no requirement to report or any required standards like GAAP. The Global Reporting Initiative (GRI) currently provides a framework, with over 3,500 companies filing under the GRI framework. However, given that there is no

Sustainability Paper

2555 words - 11 pages global footprint and has a responsibility to the public and planet that supports them to remain socially and environmentally conscious. Corporate sustainability was set into motion with the National Environmental Policy Act of 1969, stating; “ to foster and promote the general welfare, to create and maintain conditions under which man and nature can exist in productive harmony and fulfill the social, economic and other requirements of present and