Exploring Sustainability-related Issues And Themes Intersecting With Business

Sustainability using triple bottom line in business organisations

Hunt et al. (2015) define sustainability as the fashion of exploitation of resources, direction of investments, directions of technological development and role of the stakeholders are in a way to meet present and future human needs. The authors also point out that the sustainable operations are also aimed to ensure benefit of world economy and the bio systems simultaneously. However, it has been pointed out in several publications like international dailies that the present rate of utilisation of resources by the mankind and its colossal amount of wastes which human operate generates would ultimately prove fatal for the future human. The destruction of natural environments would also spell destruction upon the commercial activities and cause loss worth billions (theguardian.com, 2018). These warnings have made the business organisations realise the value necessity of embracing sustainable measures to achieve sustainability. The researcher would explore the three concepts namely, triple bottom line, six forms of business capital and six sustainability approach to achieve sustainability.

Sarkis and Dhavale (2015)  refer to triple bottom line as an approach in which accounting of business organisations should take accord for social and environmental impacts besides taking account their financial implications. Governments and several international organisations like the United Nations have expressed concerns about the ecological devastations which the actions of the business organisations bring about due to their inconsiderate exploitation of natural resources, all aimed to earn high profits. These bodies have mandated the business companies to operate responsibly and comply with environmental laws, breach of which would attract severe government actions. According to the United Nations, the business organisations should expand the concept of triple bottom line to their product strategies in order to make their products more environmental friendly.

I can point out that business organisations on their part have realised the importance of applying the triple bottom line and are taking actions towards applying it in their all areas of operations (Epstein, 2018). I can also point out that this implementation of the triple bottom line takes place under stringent guidance of the apex management. Laszlo and Zhexembayeva (2017) in this regard point out that this implementation of triple bottom is backed by their responsibility towards stakeholders like the society and the customers. I can point out that implementation of the triple bottom line has helped the business organisations to strengthen their corporate citizen which has in turned boosted their market goodwill. I can point out that this strengthening of market goodwill has helped the business organisations strengthen their market position in the long run and earn more revenue.

Six forms of capital business organisations use

The following are the six types of capital business organisations use in the course of operations:

The internal economic capital of business organisations consists of the financial resources and non-financial resources which enables them to conduct business operations. The financial resources consist of capital of the owners, debt and other sources of financial capital which contribute to the capital base of the firm. The non-financial capital of business organisations consist of their brand value and goodwill which they hold in the market. I can point out on analysing these two categories of internal capital that they are dependent on one another. This is because stronger market goodwill enables the business organisations attract more financial capital. A strong capital base on the other hand boosts the operations in the business organisations which in turn strengthens its goodwill (Qadri & Mamoon, 2016).

The external economic capital consists of financial and non-financial resources which business organisations use to carry on their businesses. The external financial capital consist of capital of the investors. I can analyse and point out that non-financial economic capital consist of subsidiary firms business organisations acquire to strengthen operations.

I can point out that natural capital of business organisations consist of ecosystems and climate which business companies use in their day to day businesses. An analysis of the natural capital would point out that among business organisations in comparison to the aforementioned capital have minimum control over nature capital.

I can reflect and point out that human capital consist of the employees which organisations employ to operate. Guerci et al.(2015) bring into light that human resource management plays an important in management of human capital. This is because management bodies form strategies which the lower level employees execute, ultimately attributing the organisations which their high market performances. I can finally point out that business organisation today align their human capital with the triple bottom line strategy in order to gain higher levels of sustainability.

Farooq, Rupp & Farooq (2017) mention in their work that the relationship which organisations share with employees both professional and beyond work contribute towards social and relationship capital. I can reflect upon analysis that this capital forms the base of a healthy organisational culture and high organisational performance.

The constructed capital in business organisations consists of material objects and systems which business companies use to operate on daily basis (Slack, Corlett & Morris, 2015). I can point out upon analysis that human capital uses constructed capital which renders organisations their smooth operations.

The six phases of business approaches to sustainability

The first phase of sustainability is rejection when the resources are exploited for economic gain. I can point out upon analysis that at this stage, the concern for the society is illegitimate. The rejection phase is supported by the next phase non-responsiveness. The community lacks awareness about sustainability which encourages exploitation of resources in form of improper disposal of wastes and wastage of resources available to the community (Dunphy & Griffiths, Benn, 2003). The business organisations in the third stage compliance tend to follow environmental policies in order to avoid government actions. Efficiency, is the fourth phase of sustainability where the awareness grows ultimately contributing to the next phase strategic proactivity. The management at this stage integrates sustainability with the core business policies (qls.com.au, 2018). The business organisations in the last stage, sustainable follow ethical ways of operations and exhibit higher level of stakeholder responsibility.

Multinational companies like Unilever, Toyota, Honda and Procter & Gamble are some of the companies which engage in sustainable operations. These companies have integrated sustainability as a part of their core strategies which functions under the stewardship of the apex management.

Conclusion:

I can conclude from the discussion that business organisations should adopt triple bottom line in a more proactive manner. They must involve employees of all designations and categories in execution of the sustainable business practices.

References:

Dunphy, G., & Griffiths, A. Benn,(2003), organizational Change for Corporate Sustainability, a guide for leaders and change agents of the future.

Emmott, S. (2018). Humans – the real threat to life on Earth. Retrieved from https://www.theguardian.com/environment/2013/jun/30/stephen-emmott-ten-billion

Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.

Farooq, O., Rupp, D. E., & Farooq, M. (2017). The multiple pathways through which internal and external corporate social responsibility influence organizational identification and multifoci outcomes: The moderating role of cultural and social orientations. Academy of Management Journal, 60(3), 954-985.

Guerci, M., Radaelli, G., Siletti, E., Cirella, S., & Shani, A. R. (2015). The impact of human resource management practices and corporate sustainability on organizational ethical climates: An employee perspective. Journal of Business Ethics, 126(2), 325-342.

Hunt, A. J., Matharu, A. S., King, A. H., & Clark, J. H. (2015). The importance of elemental sustainability and critical element recovery. Green Chemistry, 17(4), 1949-1950.

Laszlo, C., & Zhexembayeva, N. (2017). Embedded sustainability. In Embedded Sustainability (pp. 116-140). Routledge.

Life Cycle Management – A Business Guide to Sustainability. (2018). Retrieved from https://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=845&menu=1515

Proctor July 2013 — Queensland Law Society. (2018). Retrieved from https://www.qls.com.au/About_QLS/News_media/News/Headlines/Proctor_July_2013

Qadri, M. M., & Mamoon, D. (2016). Understanding ‘Shared Valued’and Social Capital Link to Pave the Path of next Generation of Innovation. Journal of Economics Library, 3(4), 587-602.

Sarkis, J., & Dhavale, D. G. (2015). Supplier selection for sustainable operations: A triple-bottom-line approach using a Bayesian framework. International Journal of Production Economics, 166, 177-191.

Slack, R. E., Corlett, S., & Morris, R. (2015). Exploring employee engagement with (corporate) social responsibility: A social exchange perspective on organisational participation. Journal of Business Ethics, 127(3), 537-548..