FYS002 Contemporary Society in a Global World

What are global businesses are doing to create a greener profile?

Sustainability is no longer a murmured word. The popularity of going green has become popular. Both business organisations and consumers are interested in finding the way through which they can reduce the adverse impact on the environment and make a better world for tomorrow. Going green is a sound investment for plenty of reasons. Regulatory and macro-environment are going to change soon due to environmental issues. Energy-efficient business organisations will be in a better position to navigate those regulatory changes (Ortiz‐de‐Mandojana and Bansal 2016). Environment-sensitive customers are flocking to green products, that are safe and non-toxic.

Contemporary business organisations are interested in creating a greener profile. There are plenty of reasons for which a business organisation can transform itself into an environment-friendly business organisation. It can be fruitful for the firm to reduce the carbon footprint and adverse impact of the business operation on the environment. The greener profile of a business organisation can be useful for the firm to create a positive brand image in the market place (Parletta 2019). The greener profile of the firm can be useful for the firm to get tax credits, incentives, cost savings, a positive and healthy workplace, and organisational and operational efficiency.

Sustainability of Adidas:

Contemporary business organisations have started taking initiatives to create a green profile. These organisations make green thinking a part of the organisational culture. In order to create a greener profile, business organisations need to create environment-friendly goals, make it fun. According to the management of Adidas, a renowned Germany-based business organisation that operates across the world, sustainability is the ability to maintain and grow its profit generation ability and the ability to maintain the business operation efficiently to reduce the operation cost and adverse impact on the environment (Adidas-group.com 2021). In order to create a greener profile, the management of this business organisation has decided to develop sixty per cent of its products with sustainable materials that include sustainable cotton, recycled polyesters (Adidas-group.com 2021). This multinational corporation has started using new fabrics that are made from recycled ocean plastic (Adidas-group.com 2021). The environmental approach of this multinational corporation is to look after the environment to create a better world for today and the upcoming generation.  

Greener Profile of IKEA:

IKEA, a Swedish multinational conglomerate, aspires to become a leading example for sustainable business operation. The management of this organisation is interested in creating a better everyday life for its customer (Ikea.com 2021). The business model, followed by this organisation, prioritise sustainable business practice and tries to fulfil its responsibility towards the planet and customers. The 2020 sustainability strategy of IKEA has prioritised 'People & Planet Positive' (Ikea.com 2021). This company aspires to source a hundred per cent of its wood, cardboard, and paper from sustainable sources. By using more sustainable cotton, this organisation has started producing ninety per cent of its products, which are more sustainable with substantiated environmental improvements. This organisation has started using renewable energy sources for its operation. In the UK, this Swedish multinational conglomerate sends zero-waste-to-landfill. This organisation generates 41 per cent of the energy from renewable sources (Ikea.com 2021). The objective of this company is to become energy independent.

Procedure to Create a Greener Profile:

The way contemporary business organisations can create a greener profile in order to gain sustainable competitive advantages must be discussed. It will be beneficial for SMEs and leading business organisations to understand the way they can create a greener profile. In order to become greener, a business organisation can follow the following steps. By using LED lighting, a business organisation can reduce the consumption of electricity (Kumar 2020). It can be useful for the organisation to reduce operation cost. Compared to incandescent and fluorescent lights, LED lights consume far less energy and do not contain toxic gases and mercury. The management of a business organisation needs to eliminate the use of plastic bottles. In 2011, there was 32 million tons of plastic waste was generated in the USA. Plastic bottles create an adverse impact on the environment and water. Business organisations have to follow the sustainable business practice (Leonidou et al. 2017). They need to work with green suppliers and vendors. For example, the Sands Vegas Corporation has selected suppliers like HP and General Electronic because these two organisations follow aggressive sustainable policy. In order to make a greener profile, the management of a business organisation has to focus on recycling and reuse. Having an appropriate waste management policy can be useful for the organisation to create a greener profile. The management of a business organisation has to organise a recycling program and assist the community members to accomplish the sustainability objectives (Aghelie 2017). In order to create a positive brand image in the market place, the business organisation has to follow sustainable business practices. The business organisation has to use renewable energy sources for production. The excessive consumption of non-renewable energy sources has created a scarcity of non-renewable energy. In order to make a better world for the upcoming generation, the management of a business organisation has to eliminate the consumption of non-renewable energy. The rising popularity of green packaging and green supply chain must be addressed by leading business organisations. By using environment-friendly material, business organisations have to package their products (Hao et al. 2019). It will reduce the adverse impact of business operation. The green supply chain can allow a business organisation to improve environmental sustainability with green practices that include green distribution, green transportation, green purchasing, green manufacturing procedure, and others (Tseng et al. 2019)

Consumers are interested in purchasing responsible green products. Customers reject a business organisation, which practices unsustainable practices. Consumers in the 21st century aspire to get clear information about product packaging, recycling, and composting. Business organisations in the 21st century need to address consumer demand for eco-friendly product and services. More than eighty per cent of consumers prefer and respect business organisations that practice environment-friendly business operation.

References:

Adidas-group.com, (2021). SUSTAINABILITY MATERIALS. [online] Adidas Group. Available at: <https://www.adidas-group.com/en/sustainability/products/materials/#/recyceltes-nylon/> [Accessed 5 March 2021].

Aghelie, A., (2017). Exploring drivers and barriers to sustainability green business practices within small medium sized enterprises: primary findings. International Journal of Business and Economic Development (IJBED), 5(1).

Hao, Y., Liu, H., Chen, H., Sha, Y., Ji, H. and Fan, J., (2019). What affect consumers’ willingness to pay for green packaging? Evidence from China. Resources, Conservation and Recycling, 141, pp.21-29.

Ikea.com, (2021). people & planet - Waste. [online] Ikea.com. Available at: <https://www.ikea.com/in/en/people-and-planet/make-more-of-waste-pub88ce8f40> [Accessed 5 March 2021].

Kumar, V., (2020). Organizational sustainability and green business practices–The way forward. Materials Today: Proceedings.

Leonidou, L.C., Christodoulides, P., Kyrgidou, L.P. and Palihawadana, D., (2017). Internal drivers and performance consequences of small firm green business strategy: The moderating role of external forces. Journal of business ethics, 140(3), pp.585-606.

Ortiz‐de‐Mandojana, N. and Bansal, P., (2016). The long‐term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), pp.1615-1631.

Parletta, N., (2019). Going Green - What's Good For The Planet Is Good For Business. [online] Forbes. Available at: <https://www.forbes.com/sites/natalieparletta/2019/05/14/going-green-whats-good-for-the-planet-is-good-for-business/?sh=146b0d253201> [Accessed 5 March 2021].

Tseng, M.L., Islam, M.S., Karia, N., Fauzi, F.A. and Afrin, S., (2019). A literature review on green supply chain management: Trends and future challenges. Resources, Conservation and Recycling, 141, pp.145-162.