Sustainability
Corporate sustainability is an issue that continues to garner increased attention and importance for
shareholders, consumers, and companies alike. Since 2004, Corporate Knights, a Canadian media firm,
has published a list of the top 100 sustainable companies in the world. The efforts and profits among
those highest on the list demonstrate that companies are increasingly able to adopt strategies that are
socially and environmentally responsible and financially lucrative. Consider Umicore, the top company on
Corporate Knight�s 2013 Global 100 list.
Umicore is a Belgian-based materials technology firm recognized for its treatment of their employees, the
products it produces, its profitability, and its efficiency. According to Doug Marrow, Corporate Knight�s
vice president of research, �Relative to its global peers in the materials industry group, the company
squeezes more revenue out of each resource input (including energy and water), while generating less
externalities (greenhouse gas emissions and waste)� (Smith, 2011). However, Umicore�s efforts
extend beyond its own sustainability strategies. According to Morrow, �They generate over half of their
revenue by selling products that help other firms improve their sustainability performance, such as energy
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efficiency� (Smith, 2011). The company has, in effect, created a comprehensive business model based
on sustainability.
To prepare, consider the implications of expanding the definition of sustainability to include economic and
social elements. Think about how implementing a strategy for improving sustainability can benefit the
organization you chose for your SSP.
How much of an impact do mitigating factors like pricing impact the ability of a company
to successfully implement a sustainability program?
P&G, in its business model, seeks to impact the lives of people positively. Its main
source of resources and biggest market for its products and services is in developing countries
where pricing is a major factor in determining the success of failure. For consumers in
developing countries, the price of a product has a direct impact on its consumption. Given the
importance of suppliers to the existence of P&G, when implementating a sustainability program
like the “scorecard”, the long term objective of P&G will be to assist them meet the
sustainability requirements (Procter & Gamble Sustainability Report, 2010).
What could you contribute to the transition to more sustainable living?
When humanity decides to live today like there will be a tomorrow, then tomorrow will
be worth looking forward to. Unfortunately, humanity has chosen to exercise the right to
consume today with total disregard for tomorrow. It has in its race to survival, chosen to
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maximize its present returns at the expense of future generations. To start appreciating the
importance of tomorrow, humanity has to start living a sustainable life – on that supports itself in
the present, while putting in place measures for a better future. Businesses must realize that
sustainable living decisions though costly in the short-medium term, are generously beneficial in
the long term. It is those businesses that chose to make the tough sustainability decisions today
that will guarantee their long-term survival and maximize returns for their stakeholders.
What ethical argument could persuade society to assume an obligation to preservation of
the world for future generations?
Over the past few billions of years, many living species have had the privilege of making
this world home. This entire living species have survived because the environment has been
conducive for their survival. The same factors that influence the decision to live in such a way
as to ensure survival of the species – sustainably, still have the same if not stronger pull. If
society is to ensure its survival, it has to embrace sustainable living otherwise; the universe will
evolve new beings to rein supreme in this world. Additionally, choosing to preserve the world
for future generations, society will by default, be ensuring its present generation live a
comfortable life (Social Responsibility, n.d.).
In regards to IBM and Apple partnership, the questions come to mind. Is it a negative or
positive decision? What is the positive and negative effect to the internal resources? What
will the profit show? In addition, in regards to the guidelines above, any suggestion for
IBM?
Whether the IBM and Apple partnership is positive or negative will depend on how one
views the emerging organizations vis-à-vis the industries they operate in. To IBM, if the
partnership will help address some of the identified weakest links – operations and Human
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Resource, then the partnership will indeed be positive. For Apple, it is positive since industry
specific applications will lock down Apples iOS market share in the enterprise. To the business
user and for whom this partnership looks to address, it is a positive decision. The risks each
organization is taking exhibit that each has a firm focus on its sustainability that they are willing
to work with rival companies (Stacey, 2011).
The internal resources will experience both positive and negative effects. The
consolidation could have a positive effect on human resource at IBM. By getting Apples cool
factor, IBM gets credibility in the mobile market and this could only mean better things to come
for its employees.
There could be some negative effects as both parties look to work things out. At the end of the
day, these are two organizations with identity and instant brand recognition coming together and
not all things work the same.
To both Apple and IBM, there should be a positive change in the profits. The synergies
emerging from this partnership make for improved sales of both product and service in addition
to superior customer experiences by both organizations. This should assist them consolidate
their market share and give the necessary momentum to try and wrestle some the same from its
competitors.
IBM should take the advantage the partnership offers it to launch a serious assault at the
mobile enterprise market. This should address the security management issues while being
innovative in its product and service offerings. This will have actualized IBM’s plan to identify
and define problems in real time, while at the same time reducing energy and maintenance costs
while improving the data and workplace environment (Gungor & Liu, 2009)
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References
Gungor, A., & Gupta, S. M. (1999). Issues in environmentally conscious manufacturing and
product recovery: a survey. Computers & Industrial Engineering, 36(4), 811-853.
