Part 2: The Full Assignment Essay Example
International Business Features
Sustainable International Business Futures
Most businesses operate on sustainability-centered administrations to perform their day-to-day activities. Sustainability being process by which companies achieve their fiscal, social and environmental risks, responsibilities and opportunities, positive business performances are indeed realized through consistent sustainability practices (Heinze, 2017). Also, proper sustainability plans keep a company in a better position to respond to financial, social, environmental, and regulatory changes as they occur.
Socially, companies require developing good relationships with all their stakeholders, including customers, shareholders, civil society, and employees so as to avoid increased misunderstanding and reduced shareholder’s cooperation. Many firms disregard good relation with their consumers which may risk short term gains and can also change the ability of the enterprise to operate on their planned budget and schedule. However, companies that ignore consumer needs and opinions should contemplate the effects of undesirable reporting about their activities or of falling foul of regulation (Tsalikis and Fritzsche, 2013 p.691). For instance, according to the study of the gold mining industry, regulatory policies, taxation, and land authorization can be automatically by shareholders’ relation. Therefore, this helps in determining the rights of shareholders to convert gold into shareholder equity. According to a research done by Anastasia (2017), it explains that investors greatly value the sustainable companies because of their positive financial performances.
Increased weak ethical considerations practiced by business firms who still expect to run long-term profitable companies has become the primary factor due to the fall of most commercial institutions. Good ethics assure consumers transparency in the quality of products produced and even the services offered. Through good values, the customers and the firms can work for hand
In hand to achieve innovations which in turn promote business performance? The cooperation creates sustainable trust between both parties.
Companies through efficient sustainability-related operations realize reduced production costs because of better management of natural resources such as water, energy and waste reduction. Therefore, such events lead to improved operational efficiency. According to Heinze (2017), products are remade to meet environmental standards and customers’ needs through firms’ sustainability operations to ensure that the users of the environment do not get harm. Instead business opportunities are created. Instead of managing risk, sustainability is also an innovation factor.
In such a case, for example, companies like Unilever, Mars, and Espresso have heavily invested in a scheme known as Rainforest Alliance certification to assist the farmer in reducing land degradation, dealing with climate changes and drought effects for ensuring an enduring supply of agricultural products. Therefore, Tsalikis and Fritzsche argue that (2013 p.698), firms are experiencing risk during manufacturing process due to depletion of resources as a result of global growth in population as a result of industrialization. Managing these threats, therefore, entail making current investment resolutions for longer-term capacity building and creating adaptive policies.
Particularly when willingness to pay is concerned, organizations are always undecided about consumer interests in sustainable commodities. Additionally, apart from being doubtful about buying sustainable products, consumers identify an advanced level of product presentation. Considerably, information on product sustainability creates a positive influence on consumer’s evaluation of company accomplishments transforming into consumer commitment.
Users are currently advocating for honesty, transparency in production and tangible global impact through competitive prices, the quality of products, and sustainability portfolio. In most companies, consumer purchasing decisions are considerably valued regarding price and choices aiming their safety and social impact (Anastatia, 2017). Responsibility practices by the corporate increase overall sales revenue. Environmental and social responsibilities are the aspects that affect is the significant factor that that affects one’s individual assessment of firm a high ad capability to purchase. Transparency and honesty of a business firm enable consumers to way options and even evaluate choices.
Sustainability-based initiatives within companies tend to build a sense of culture and engagement among the employees encouraging them to focus more on purpose and organization’s mission boosting their loyalty, efficiency and productivity and they also aid proving value to the society. Heinze states (2017), motivation and treatment of employees as critical stakeholders in the companies translate to reduced absenteeism and increased productivity among the employees. Business stability is also improved by continued worker’s loyalty. Total yield and recruitment of employees are significantly influenced by co-operating responsibility performance and sustainability programs created by the business firms. ESG performance has considerably improved Human Resource statistics based on morale, retention, and recruitment of the workforce (Tsalikis and Fritzsche, 2013 p.671). The rate of confidence was found to be 55% in companies with robust sustainability programs as employee loyalty was approximately 38% better.
In conclusion, sustainability-based programs in business firms have acted as better strategies applied by the companies to improve on their performances. Taking good ethnicity practices into account enhances the relation between the enterprises and the consumers which result to actual reporting of the company’s activities by the users which attract more customers. Attempts to redesign products to suit customers’ needs and to meet environmental standards bring about innovation through recycling of waste products which on the hand may create employment opportunities to the society. ESG ensure quality goods and services delivery and also reduces the risk of natural resource depletion which may adversely affect both the companies and the community living within the environment. Sustainable development is an important technique employed by businesses and small local enterprises for future trade market growth. Also, firms with excellent environmental performance experience low cost of debts attracting investors’ attention towards capitalizing on that particular company. On the other hand, ESGs help in informing investors on their investment decisions.
Anastatia 2017. " Social Responsibility & Ethics in Marketing" Cleverism. [Online]. https://www.cleverism.com/social-responsibility- ethics marketing/, accessed 4/23/2017
Heinze, L 2017, ‘Fast fashion, slow cotton’, Sustainability with Style. [Online]. http://www.lisaheinze.com, accessed 4/23/2017
Tsalikis, J and Fritzsche, DJ 2013, ‘ Business ethics: A literature review with a focus on marketing ethics’ Journal of Business Ethics, vol.8, no.9, pp.695-743.
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