Explanation Sustainability: Sustainability refers the ability of business’s to operate in effective and efficient way to continue their operations indefinitely. Organizations should use the resources in such a way that they are not depleted or permanently damaged. Sustainability has three pillars: 1) environmental 2) social and 3) economic. Company will sustain its operations in the long run if all three factors will be considered while making business decisions. In the present scenario a company’s performance is not only determined by the economic profits which it has generated but also on the basis of the impact it has created on people and the planet. 1) Environmental: Organizations are introducing “green initiatives”. They are deviating from the traditional ways of doing business and coming up with the eco friendly ways which have fewer of negative consequences on the earth’s resources. Organizations are innovating new products and processes that use recycled materials to reduce the amount of waste going to landfills. 2) Social: Organizations have become more social responsible while conducting business. They think about the effects of their business on employees, consumers, citizens and on community. Many organizations conduct Corporate Social Responsibility (CSR) activities by supporting local schools, employee volunteerism and charities. Companies also issue CSR reports through which they communicate about the social and environmental impact which their organizations have created. 3) Economic: To sustain in the long run a business must earn profits. However, a business must earn profits by ensuring proper compliance and governance and with adequate risk management policies. Economic sustainability focuses on earning profits but it also ensures that the business operations do not create social and environmental issues which will harm business in the long run. Economic sustainability proposes the use of resources in an efficient and effective manner in order to reap long term benefits. a. Increase in the number of countries where reduced, low or no calorie product represent more than 20% of the local product line up. This will impact social factor . This reflect that the company is considering about the health benefits of its products to the consumers. b. Increased in water efficiency in manufacturing reflects that the company is reducing its water consumption for production purpose. It will impact the environmental factor . Water is a scarce resource and company is making responsible use of the scarce resource. It is considering the impact it will make on the environment. c. Coca Cola achieved 21% improvement in energy efficiency. This will impact the environmental factor . Company is innovating new process which helps in using energy efficiently. This will have lesser negative consequence on the environment. d. Company is generating profit for its shareholder. This will impact the economic factors...

5th Edition

ISBN: 9780134067254

Author: Braun

Publisher: PEARSON

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Chapter 1, Problem 1.24BE

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To identify: whether the initiative would impact environmental, social or economic factors.

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Chapter 1, Problem 1.23BE

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