198 Questions
What is the widely accepted definition of sustainability?
Meeting our own needs without compromising the ability of future generations to meet their own needs
Who was asked to launch the new World Commission on Environment and Development?
The Norwegian Prime Minister
What are the three pillars that come together when entering into any business relationship?
Environmental, social, and economic factors
When did the concept of sustainability develop?
During the latter part of the 20th century
What was the aim of the Brundtland Commission?
To investigate why economic development in many countries had not had a positive impact on levels of poverty and suggest solutions
What is the ultimate goal of sustainability?
Leaving a kind of future for the next generation and beyond that balances environmental, social, and economic factors
What is a key reason companies are using sustainability?
To differentiate themselves from competitors
Which industry has companies like Nestle and Coca-Cola leading sustainable practices?
Fast-moving consumer goods
What percentage of lemon does Coca-Cola aim to source sustainably by 2020?
54%
What gives consumer companies significant influence over their suppliers' practices?
Global purchasing power
Which organization collaborates with the automotive industry to provide technical assistance?
The United Nations Industrial Development Organization
What are small and medium enterprises and NGOs expected to embrace?
Sustainability
What are the three pillars of sustainability?
Environmental, economic, and social
Which company exemplifies sustainability through its commitment to environmental causes and initiatives?
Patagonia
What does the triple bottom line (TBL) measure?
Financial, social, and environmental factors
What does economic sustainability seek to achieve?
Satisfy human needs while preserving natural resources and the environment for future generations
What does supply chain sustainability emphasize?
Reducing energy consumption and waste elimination
What is the manifestation of sustainability as a value in organizations and individuals?
Policies and day-to-day activities aligned with sustainability
What does Total Cost of Ownership (TCO) include?
Purchase price, depreciation, fuel costs, insurance, financing, repairs, licensing fees and taxes, maintenance, and downtime
When did sustainable procurement emerge?
Mid-1990s
What is the basis for sustainable procurement in the private sector?
Socially responsible products and services are good for the environment
What did a report by Accenture highlight regarding a beverage company's sustainability effort?
Significant cost savings and reduced CO2 emissions
What do consumers increasingly expect from organizations?
Use sustainable business practices and demonstrate stewardship of the environment
What are private sector organizations aiming to achieve when procuring products?
Reducing costs, promoting reuse and recycling, and minimizing packaging and transportation
Which of the following companies has been recognized for Triple Bottom Line (TBL) initiatives?
DHL
What is the main focus of the United Nations' sustainable development goals based on the 2030 agenda?
Social and environmental progress
What is the UN Global Compact's multi-year strategy aimed at achieving?
Driving business awareness and action in support of sustainable development goals
What is the concept of shared value in the context of business sustainability?
Consumers demand businesses to show care for their impact on people and the planet
Which of the following is included in the UN Global Compact's ten principles?
Labor rights
What does sustainable procurement involve considering alongside financial and economic factors?
Both social and environmental factors
What is the purpose of ISO 20400?
To help organizations reduce their impact on the environment, tackle human rights issues, and manage supplier relations
What aspects does ISO 20400 take into account when judging sustainable purchasing?
Environmental, social, and economic sustainability
Who is encouraged to integrate sustainability into their procurement processes according to ISO 20400?
Organizations
What do many individual organizations such as universities, corporate companies, and NGOs publish?
Their own sustainable procurement guidelines
What does ISO 20400 aim to improve among all stakeholders?
Communications
What is the focus of the guidance provided by ISO 20400?
Integrating sustainability into procurement processes
What do the references at the back of the book provide information about?
Other organizations that publish general guidelines and standards
What is the purpose of rating sustainability factors for importance in the procurement process?
To establish how critical they are and how they will influence the decision of which supplier to award a contract to
What is a key consideration during negotiation and contracting with a supplier?
Verifying the supplier's commitment to sustainability policies
What is the main focus of supplier management and monitoring in the procurement process?
Actively monitor results against agreed measurements
What does Linde Group emphasize in its sustainability management?
Long-term business success with ecological and social responsibility
What is the World Bank's proposed important element for inclusion in selection criteria for suppliers?
Sustainable procurement policy and system in place
What is the critical factor that must be confirmed before contracting with a potential supplier?
Continuity of supply
What is the main emphasis of the United Nations' sustainable development goals based on the 2030 agenda?
Social, environmental, and economic sustainability
What is the primary aim of the Corporate Responsibility Report 2017 of Linde Group?
To constantly analyze the impact of business operations on people and the environment
What is a key factor in establishing the criticality of sustainability factors in the procurement process?
The direct link between the goods or services being procured and sustainability goals
What are the main challenges organizations face in implementing sustainable procurement initiatives?
Justifying sustainable procurement to management and lack of training and reliable information
At which step of the procurement process is sustainability a major focus?
Step 3
What does Step 2 of the procurement process entail?
Planning the quantity, quality, timing, location, and identifying potential suppliers
What is the difficulty in changing procurement behavior in both suppliers and employees attributed to?
Lack of training and reliable information
What is the perceived barrier to achieving sustainable procurement processes?
Higher costs and time consumption
What is Step 1 of the procurement process focused on?
Assessing the necessity and suitability of the item
What is Step 3 of the procurement process focused on?
Developing detailed specifications for the product or service with consideration of economic, environmental, and social sustainability goals
What is the purpose of using pre-qualification questionnaires (PQQ) in the procurement process?
To establish whether a supplier has the necessary credentials to proceed in the bidding process
What is the focus of the Waste Electrical or Electronic Equipment (WEEE) Directive?
Maximize separate collection and environmentally friendly processing of electrical items
What are the key factors used to assess bids during the evaluation stage?
Transparency, value for money, and integrity
What does the UN Global Compact present an opportunity for organizations to further?
Economic, social, and environmental development
What is the potential impact of including the organization's sustainability policy and questionnaire in the tender document?
Increase awareness of sustainability among bidders
What is the aim of specifying sustainability requirements in tenders and quotations?
To assess technical and operational components during bid evaluation
What is the potential consequence for potential suppliers that cannot comply with relevant laws and regulations?
Exclusion during the evaluation process
What is the main goal of corporate social responsibility (CSR)?
Achieving a balance of economic, environmental, and social objectives
Which term is often used interchangeably with corporate social responsibility (CSR)?
Corporate citizenship
What are the broad groupings of topics that corporate social responsibility (CSR) can address?
Economic, environmental, and social performance
What is the relationship between corporate social responsibility (CSR) and sustainability?
CSR is a narrower concept compared to sustainability
What is the primary focus of corporate social responsibility (CSR) with regard to stakeholders?
Satisfying the needs of all interested parties
What is the ultimate goal of corporate social responsibility (CSR)?
Achieving a balance of social, environmental, and economic objectives
What are some potential consequences of poor stakeholder management?
Project delays, substandard solutions, and difficulties in delivering expected results
What is a focus area of social performance issues in the context of CSR?
Working conditions, health and safety, and human rights
What did the US-based Fair Labour Association find in its wage survey?
Minimum wages in some countries were at or below the poverty line
What is a key aspect of Ford's approach to stakeholder prioritization?
Customers having the highest priority
What is one of the ways Marks & Spencer is engaging with line workers in their factories and those of their suppliers?
Experimenting with real-time, mobile survey tools
What is a focus of the induction training programme on CSR for new employees at Mitsubishi?
Corporate Social Responsibility
What is the primary focus of Corporate Social Responsibility (CSR) according to the text?
Balancing self-interest and societal needs
Which stakeholder group is NOT mentioned as a part of CSR engagement?
Competitors
What role does the United Nations play in promoting Corporate Social Responsibility (CSR)?
It encourages universal acceptance of CSR
What is a key challenge for companies with CSR programs in relation to stakeholders?
Balancing stakeholder expectations
What is the emphasis of the European Commission regarding CSR?
Benefiting the economy and society
What is the main purpose of stakeholder engagement in the context of CSR?
To understand and address stakeholder concerns
What percentage of L'Oreal's strategic suppliers were expected to participate in its sustainability program by 2020?
100%
Which organization identified 120 companies on its A list for leadership in climate change and reducing carbon emissions?
Carbon Disclosure Project (CDP)
What percentage of global industrial greenhouse gases since 1988 are linked to 100 active fossil fuel producers according to the Carbon Majors database?
71%
What is the focus of L'Oreal's Climate Action and Sustainability Efforts?
Reducing industrial site emissions
Which company partners with Rainforest Alliance to source tea from certified farms?
Unilever
What do beverage manufacturers focus on in the context of water challenges in the developing world?
Improving water use efficiency and replenishing water resources
What is the primary focus of workplace diversity according to the text?
Promoting gender pay equality
Which country has a target of increasing women in leadership positions to 30% by 2020?
Japan
Which industry has seen a rise in the percentage of women in management over the past decade?
Automotive
Which company has invested in forests and wind farms to become more sustainable?
Ikea
What is L'Oreal recognized for in the context of sustainability?
Fighting climate change
What is a major emphasis for companies in the fast-moving consumer goods sector according to the text?
Environmental impact and sustainability
What is the primary focus of diversity initiatives in Japanese companies?
Increasing women in leadership positions
Which industry has visible initiatives to support diversity in Japan?
Automotive
What has Ikea invested in to become more sustainable?
Forests and wind farms
Which area is crucial for ecosystem services contributing to human wellbeing?
Biodiversity
What is L'Oreal recognized for in the context of sustainability?
Fighting climate change
In which country is there a target to increase women in leadership positions to 30% by 2020?
Japan
What is the historical view of businesses according to Milton Friedman?
Businesses should exist solely for making a profit
What is the system by which companies are directed and controlled called?
Corporate governance
What is one of the responsibilities of directors appointed by shareholders?
Upholding the highest standards of governance
What is the alternative and current view regarding market and social causes?
Not everything can be left to the market
What is Microsoft known for in the context of corporate social responsibility (CSR)?
Commitment to promoting ethics, fairness, transparency, and accountability
What did Milton Friedman suggest about the social responsibility of businesses?
The only social responsibility is to increase profits within the rules of the game
What is the definition of 'greenwashing'?
When a company creates a false perception that its products are environmentally friendly
In the context of sustainability, what is the focus of the induction training programme for new employees at Mitsubishi?
Corporate social responsibility (CSR)
What is the emphasis of the European Commission regarding Corporate Social Responsibility (CSR)?
Promoting responsible business conduct
What is the primary goal of corporate social responsibility (CSR) according to the text?
Balancing social, environmental, and economic responsibilities
What is the main focus of diversity initiatives in Japanese companies?
Increasing women in leadership positions
What is the purpose of rating sustainability factors for importance in the procurement process?
To guide decision-making and risk assessment
What is the primary focus of sustainability reporting?
Informing stakeholders about CSR concerns and strategic decision-making processes
What is the main emphasis of the LEAD Project run by BHP Billiton in Mozambique?
Benefiting local farmers
Which company has been recognized for its CSR in the Dow Jones Sustainability Index?
Barrick Gold Corporation
What is the consequence of Barrick Gold Corporation's $2 million investment in education in Tanzania?
75% increase in primary school enrollment and doubling high school enrollment in the last decade
What is the focus of CSR in the mining sector?
Improving living conditions of local communities affected by mining operations and worker influx
What is a key aspect of Amazon's CSR initiatives?
Environmentally friendly packaging
What is the percentage of global consumers willing to pay more for products from a company that demonstrates corporate social good, according to Nielsen?
66%
What did Starbucks do in response to US President Donald Trump's executive order in January 2017, showcasing political CSR?
Hired 10,000 refugees worldwide
Which company was named the world's most responsible company in 2017?
Lego
What did the CDP's Global Supply Chain Report 2018 reveal about suppliers' identification of climate change risks?
Over three-quarters of suppliers have identified climate change risks
How many consecutive years has Unilever been ranked as a food industry leader in sustainability indexes?
11 consecutive years
What is a crucial factor influencing consumers' buying decisions, according to the text?
Company's CSR credentials and responsible corporate behavior
Which organization publishes annual research on sustainability reporting trends in the USA and Canada?
The Centre for Sustainability and Excellence (CSE)
In which sectors did companies with the highest rankings on CSRHub have better financial performance?
Energy and financial services
What is the primary aim of sustainable procurement?
Integrating environmental and social considerations
What is the main focus of successful CSR initiatives?
Ethical values and respect for people, communities, and the environment
Which organization provides sustainability reporting guidance in addition to the Global Reporting Initiative (GRI)?
The Organisation for Economic Co-operation and Development (OECD)
What does sustainability as a holistic approach consider in business relationships?
Social, environmental, and economic factors together
What is one of the effects of globalisation mentioned in the text?
Increased demand for more goods
What has led to a need for more agricultural land and natural resources?
Increased consumer awareness
What has globalisation driven organizations to strive for?
New and cheaper sources of supply
What has the expansion of world trade caused an increase in?
Consumption of products
What is the impact of the expansion of world trade on distribution channels?
Expansion
What is the primary cause of the need for more agricultural land and natural resources?
Increased consumer demand
What has enabled companies to expand into new markets?
Advances in technology and new channels of communication
What has globalisation allowed for the freer flow of?
Capital and labour
What has the impact of globalisation led to an increase in?
Demand for additional services
What has caused concern due to some of the effects of globalisation?
Many effects of globalisation
What has the development and expansion of the global economy had a mostly positive effect on?
World trade
What has the impact of globalisation increased awareness of among governments and nonprofit organizations?
The environment
What is the primary focus of a circular economy?
To minimize waste, emissions, and energy leakage by slowing down and closing the energy and material loop
What does the United Nations Intergovernmental Panel on Climate Change (IPCC) attribute as the cause of global warming?
Greenhouse gases (GHG) emissions
What is the difference between 2°C and 1.5°C of global warming according to a recent study?
Significant local yield reductions in tropical regions and increased desertification around the Mediterranean
What is Levi Strauss working to establish by 2020?
An infrastructure that supports closed-loop products
What is the biggest issue in the physical environment right now?
Climate change
What do some scientists from the world of physics, mathematics, and biology disagree on regarding climate change?
The cause of global warming
What is the general consensus on climate change according to the text?
Climate change is occurring
What is the focus of the circular economy vision according to Levi Strauss?
To repurpose or recycle old clothes and establish closed-loop products
What is the emphasis of the circular economy vision according to Levi Strauss?
To establish an infrastructure that supports closed-loop products
What is the primary goal of a circular economy?
To minimize waste and emissions by promoting a closed-loop system
What is the primary focus of the climate change debate?
The cause of global warming
What is the primary concern regarding the difference between 2°C and 1.5°C of global warming according to a recent study?
Significant local yield reductions in tropical regions and increased desertification around the Mediterranean
What are some man-made sources of air pollution mentioned in the text?
Emissions from vehicles and industry
What are activists opposed to in the context of Heathrow's expansion plans?
Expansion plans for a third runway
What are environmentalists warning about in relation to Heathrow's expansion?
Disastrous long-term impact on air pollution and climate change
What is a significant issue for the public according to the text?
Releases of greenhouse gases from manufacturing processes and vehicles
According to the United States Environmental Protection Agency (EPA), what are some outdoor air pollution challenges facing the USA today?
Emissions from vehicles and industrial activities
What is a key factor in reducing emissions that contribute to poor air quality?
Collaborative effort and long-term commitment by businesses and government authorities
What is a significant source of air pollution and can affect human and wildlife health?
Polyvinyl chloride (PVC) plastic
What is the primary source of marine pollution, damaging biodiversity and posing risks to aquatic life and humans?
Human activities on land
What does the EPA collaborate with various entities to reduce under the Clean Air Act?
Air pollution and its associated damage
What does the public express concern about in terms of environmental issues?
Marine pollution and its impact on biodiversity
What is a major concern in the safe handling of solid waste?
The disposal of hazardous waste from residential premises
What does the Food and Drug Administration in the USA monitor to protect public health?
Chemical contaminants and potential dietary intake in foods
What is the percentage improvement in water efficiency as a result of Nestle's water conservation efforts?
20%
Which company is mentioned for developing 3D software for industrial processes?
Dassault Systemes
What is the most acutely toxic class of pesticides?
Organophosphate pesticides
What is the recommended approach by WWF for forest use in Borneo?
Sustainable forest use, avoiding logging in high conservation value forests
Which country is the second largest manufacturer of pesticides in Asia?
India
What are the external stakeholders mentioned to influence companies' environmental performance?
Environmental groups, customers, and regulators
What is the primary reason for the ongoing public exposure to hazardous chemicals from pesticides?
Inadequate washing of food
What is one of the potential impacts of proactive environmental initiatives by companies?
Improved economic performance and reduced waste and energy consumption
Which sector faces the highest risk due to direct exposure to pesticides?
Agricultural farm workers
What is the focus of Nestle engineers' developed processes in water conservation efforts?
Water treatment, reuse, and recycling
What is the estimated number of people with no access to water protected from outside contamination?
748 million
What is the main cause of stress on water resources according to the text?
Population growth
What is the primary focus of the Clean Ocean Foundation in Australia?
Stopping ocean pollution and restoring ocean health
What is the main aim of Honda's research into hydrogen fuel cell-powered vehicles?
To gain a competitive advantage in the US
What is the role of multi-national companies in spreading best environmental practices across borders?
Influencing subsidiaries in host countries
How do responsible businesses aim to attract environmentally conscious customers?
By excluding toxic raw materials from their products
What can local communities do to influence company decisions and practices?
Pressure companies through elections and environmental activism
How can media coverage influence companies' environmental practices?
By impacting their reputation
What is one of the primary reasons for the failure of many agreements on environmental issues?
Governments prioritize trade and economic agreements over environmental concerns
Which factor contributes to the susceptibility of poor countries to powerful corporations ignoring environmental laws and agreements?
Lack of resources to enforce environmental regulations
What is a significant challenge related to global environmental governance, as per the International Institute for Sustainable Development?
Proliferation of UN organizations with varying autonomy and overlapping mandates
What is a particular industry mentioned as a significant problem in ignoring environmental laws and agreements?
Oil and gas sector
What is a common occurrence after countries sign agreements at international conferences?
Quietly failing to ratify or pass them into domestic law
What is the primary purpose of chlorofluorocarbons (CFCs) as mentioned in the text?
Manufacture of aerosol sprays and packaging materials
What is the focus of the Kyoto Protocol mentioned in the text?
Reduction of greenhouse gas emissions
What is the primary reason for companies to implement policies and processes that they would otherwise not have adopted?
Penalties for non-compliance
What is a significant challenge related to global environmental governance, as per the International Institute for Sustainable Development?
Proliferation of UN organizations with varying autonomy and overlapping mandates
What is the main focus of the US Environmental Protection Agency (EPA) in setting GHG emissions standards for vehicles?
To improve fuel efficiency and reduce carbon pollution
What has been the focus of Thailand's pollution department and other agencies in addressing air pollution?
Shifting to lower-emissions vehicles and improving public transportation
What has contributed to high levels of air pollution in Thailand, particularly in Bangkok?
Vehicles and factories
What is the estimated increase in deaths attributable to air pollution in Thailand from 1990 to the present?
From 31,000 to more than 50,000
What is the main aim of the US Environmental Protection Agency (EPA) in enforcing regulations on GHG emissions standards for vehicles?
To reduce the impacts of climate change
What is the primary focus of Thailand's standards in addressing air pollution?
Shifting to lower-emissions vehicles
What has caused dumping issues related to hazardous substances in Thailand?
Increasing generation of hazardous substances by industrial activities
What is the main goal of the US Environmental Protection Agency (EPA) in setting GHG emissions standards for vehicles up to 2027?
To improve fuel efficiency and cut carbon pollution
What is the focus of Thailand's pollution department and other agencies in addressing air pollution?
Shifting to lower-emissions vehicles and improving public transportation
Study Notes
Sustainability and Corporate Social Responsibility in Business
- Patagonia has quadrupled its profits and revenues since 2014, focusing on social and environmental impact
- Other companies recognized for Triple Bottom Line (TBL) initiatives are DHL, Novo Nordisk, and Nike
- The United Nations (UN) is an influential leader in sustainability, initiating the sustainable development goals based on the 2030 agenda
- The sustainable development goals consist of 17 broad interrelated goals, each with its own targets for countries to achieve
- The UN Global Compact is a multi-year strategy to drive business awareness and action in support of achieving the sustainable development goals by 2030
- Shared value is the idea that a profit-only approach is not sustainable in the long term, with consumers demanding businesses to show care for their impact on people and the planet
- The UN Global Compact has ten principles, including human rights, labor, environment, and anti-corruption
- Companies' entire supply chain can significantly impact human rights, fair labor practices, environmental progress, and anti-corruption policies
- WorleyParsons, a multinational construction and engineering company, has a comprehensive sustainability statement and policies
- Sustainable procurement is the process of making procurement decisions that benefit both the organization and society as a whole, while minimizing impact on the environment
- Sustainable procurement involves considering social and environmental factors alongside financial and economic factors, as well as looking at the whole life cost and associated risks
- Total Cost of Ownership (TCO) considers the full financial cost of procurement options, ensuring informed decisions based on best overall value
Sustainability and Corporate Social Responsibility (CSR) in Procurement
- Stage 4 of the procurement process involves managing the sourcing or tender process, where sustainability considerations are included in the tender documents.
- The pre-qualification of suppliers is crucial to ensure that they meet the organization's sustainability requirements.
- BP, a leading oil and gas company, emphasizes the importance of selecting suppliers based on merit and their commitment to compliance and ethics.
- The use of pre-qualification questionnaires (PQQ) helps in establishing whether a supplier has the necessary credentials to proceed in the bidding process.
- The supplier sustainability questionnaire, as shown in Table 1.3, includes questions on sustainability policies, environmental management systems, and fair employment practices.
- The Waste Electrical or Electronic Equipment (WEEE) Directive requires countries to maximize separate collection and environmentally friendly processing of electrical items, as demonstrated by E.on's subscription to the directive.
- Step 5 involves the evaluation of bids, where previously agreed criteria and weightings are used to assess bids based on transparency, value for money, and integrity.
- Sustainability requirements specified in tenders and quotations are usually assessed as part of the technical and operational components during bid evaluation.
- The UN Global Compact, with its three themes, presents an opportunity for organizations to further their economic, social, and environmental development.
- Including the organization's sustainability policy and questionnaire in the tender document can increase awareness of sustainability among bidders.
- The document also outlines the organization's preference for local sourcing, minimum requirements for health and safety, and packaging requirements to minimize waste.
- Potential suppliers that cannot comply with relevant laws and regulations could be excluded during the evaluation process.
Promoting Workplace Diversity and Sustainability
- Companies can drive sustainable growth by respecting employees’ individualities and leveraging diversity
- Major areas of focus for diversity include gender, race/ethnicity, culture, ability, sexual orientation, age/generation, and socioeconomic status
- Gender is the most prevalent diversity issue, with companies focusing on gender pay equality and increasing women in management
- Japan is making progress in workplace gender diversity, with a target of increasing women in leadership positions to 30% by 2020
- Japanese companies are required to disclose the number of women in management and set targets to increase those numbers
- Private sector in Japan has seen a rise in the percentage of women in management over the past decade
- Japanese motor companies like Yamaha, Hitachi, Toyota, and Mitsubishi have visible initiatives to support diversity
- Companies, especially in food and pharmaceutical industries, are encouraged to strengthen stewardship efforts and increase transparency
- Ikea has invested in forests and wind farms to become more sustainable and is now investing in a plastic recycling plant
- Many companies are focusing on environmental impact and sustainability, particularly in the fast-moving consumer goods sector
- Biodiversity is crucial for ecosystem services contributing to human wellbeing, and its integration into CSR programs is taking time
- L'Oreal is recognized for fighting climate change and has set tangible commitments to achieve sustainable production by 2020
Sustainability Reporting and Corporate Social Responsibility
- The use of specific guidelines for reporting adds value, integrity, transparency, and reliability to sustainability reports.
- Most companies use the Global Reporting Initiative (GRI) guidelines for reporting and can access a template and guidance on the GRI website.
- The suggested outline of a sustainability report includes sections on introduction, management structure, health and safety performance, environmental performance, business continuity, and disaster recovery, among others.
- The Centre for Sustainability and Excellence (CSE) publishes annual research on sustainability reporting trends in the USA and Canada.
- Companies with the highest rankings on CSRHub had better financial performance than those with lower rankings, especially in sectors such as energy, financial services, food and beverage, and mining.
- Carbon footprint reduction has become a priority for companies with the highest sustainability rankings, with well-stated and measurable goals and targets in their reports.
- Other providers of sustainability reporting guidance include the Organisation for Economic Co-operation and Development (OECD), the United Nations Global Compact, and the International Organization for Standardization (ISO 26000).
- Sustainability is a holistic approach that considers social, environmental, and economic factors together in business relationships.
- Sustainable procurement aims to integrate environmental and social considerations into the procurement process, reducing adverse impacts and benefiting the community.
- Successful CSR initiatives go beyond legislation compliance, emphasizing ethical values and respect for people, communities, and the environment.
- When sourcing products, factors such as price, quality, technical competence, and social factors are considered.
- Environmental issues that could be considered in a CSR project include identifying and addressing sustainability concerns in supply chain processes.
Environmental Impact and Business Stakeholders
- Lean manufacturing processes aim to reduce wasted time and materials to enhance efficiency, and companies are pressured to adopt and commit to firmer environmental policies.
- Environmental failures not only pose economic problems but also affect health, safety, and require significant compensation and clean-up costs.
- External stakeholders such as customers, shareholders, and regulators positively influence companies to improve their environmental performance.
- Environmental pressure groups, including charities, NGOs, and government agencies, exert influence on businesses at international, regional, and country-specific levels.
- The World Wide Fund for Nature (WWF) is the largest conservation organization, active in over 100 countries and supporting numerous environmental projects.
- The Clean Ocean Foundation in Australia focuses on stopping ocean pollution and restoring ocean health by retaining waste on land for proper monitoring.
- Customer demand, from both commercial and end consumers, drives business leaders to align with positive environmental missions to gain economic benefits.
- Multi-national companies play a key role in spreading best environmental practices across borders and influencing subsidiaries in host countries.
- Responsible businesses aim to minimize environmental impact and attract environmentally conscious customers by excluding toxic raw materials from their products.
- Honda has invested in producing fuel-efficient vehicles and is researching hydrogen fuel cell-powered vehicles, gaining a competitive advantage in the US.
- Local communities can pressure companies through elections, environmental activism, and civil lawsuits, influencing company decisions and practices.
- Media coverage can also influence companies' environmental practices and impact their reputation.
Test your knowledge of sustainability and corporate social responsibility in business with this quiz. Explore topics such as sustainable development goals, UN Global Compact, shared value, sustainable procurement, and more. Learn about companies leading in Triple Bottom Line (TBL) initiatives and the impact of supply chain on human rights, labor practices, and the environment.
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