BUSINESS SUSTAINABILITY AND SOCIETY REPORT 11
Running head: BUSINESS SUSTAINABILITY AND SOCIETY REPORT 1
BUSINESS SUSTAINABILITY AND SOCIETY REPORT
Name
University Name
Date
Introduction
Business sustainability is also called corporate sustainability and entails the principles of management that are used by managers to attain long-term survival of the business. Business sustainability ensures that all the stakeholders are actively involved when making critical decisions in a business enterprise. Environmental factors that are considered include social, technological, economic, environmental, and ecological. Management plays an essential role in ensuring that business sustainability is achieved. Triple Bottom Line is a tool that that is adopted by the managers to drive the tenets of corporate sustainability. BTL is used to measure three aspects of business success: social, ecological and economic which can be rephrased as “people, planet, and profit” (Slaper & Hall, 2011). There are various aspects of corporate sustainability that can be analyzed through BTL model; customer care, corporate governance, supply chain management, and public relations are some of the elements that TBL measures (Hubbard, 2009). Environmental sustainability is one area that has been focused by many scholars in BTL application.
I work in a Human resource department in an oil drilling Company (CMC-Drillers) in the Eastern Province Kingdom of Saudi Arabia. The company is facing a lot of complaints from the environmentalists’ groups regarding Greenhouse Gases (GHG) emissions. Consequently, the company is in the process of improving the corporate social responsibility in line with the social obligations to the local communities. In line with this policy, my department has a strategic plan which is aimed at minimizing GHG emissions by looking and alternative sources of energy. All the stakeholders are involved in this strategic plan. Therefore, this paper will investigate how the concept of BTL can be applied in synthesizing the workers on the need to reduce reliance on fossil fuels. In addressing, the idea of CSR investigator will use a 5 dimensional model of triple bottom line sustainability as discussed in this report.
There is a new paradigm shift in the concept of TBL from the traditional 3TBL sustainability model of 3Ps to the current 5- dimensional model of triple bottom line sustainability that incorporates the following elements:
Green transformation leadership
Employee engagement
Organizational culture
Corporate social responsibility
Learning organization
Green transformation leadership
As an oil drilling company, there is a need to focus on environmental sustainability in the country. Green transformation leadership is an element of BTL that will be used by my company to address its future sustainability. Green transformative leaders are defined as managers who motivate followers to achieve the aspired environmental goals. My company is led by transformative leaders who are determined to attain green performance. Leaders play an important role in attaining the strategic plan for any company. Consequently, having transformative leaders in green performance will help my company in reducing greenhouse gases emissions.
Our company is guided by the Sustainable Development Goals (SDGs) which entails that companies and governments across the world should undertake measures the reduction of carbon emissions (Holden, Linnerud, Banister, Schwanitz, & Wierling, 2017). One of the measures that my company has adopted is the use of renewable sources of energy where solar-power is seen is a long-term solution to GHG emissions. In line with this initiative, my company has adopted green transformation leadership in its business model as highlighted in its 2016 CSR Report. Although the company is predominantly in the oil drilling process, the company has set aside a considerable amount that goes for corporate social initiatives such, employment to the local communities and supporting health and education programs. Moreover, the company’s supply chain management is built on a green procurement policy (green suppliers, green raw materials). In its automotive sector, the company has introduced the use of solar based batteries for motor vehicles to supplement fossil fueled batteries.
Employee engagement
Engaging employee is one way in which a leader can ensure that the proposed projects are met. Some activities in the firm such as supply chain management are very crucial that all the stakeholders must be involved in the decision-making process (Xanthopoulou, Bakker, Demerouti, & Schaufeli, 2009). In my department, we strive to engage the employees through their elected representatives in remuneration, staff welfare, and job progression. The company also ensures that managers in different departments work as a team for the attainment of the company’s goals. When carrying out an organizational change, it is paramount to engage the employees as it helps in reducing resistance among the workforce.
The success of our companies is attributed to the company’s ability to attract a highly qualified workforce as well as the provision of the motivational environment to the workers by the management. The company has a structure through which the employees’ grievances are addressed. The company does not discriminate its staff regarding gender or race when placing employees and during the internal promotion. The management values the workers as the primary investment in the company as spelled in the 2017 CSR report. However, CMS needs to improve its support for women leadership as the report found that only 15% of the females were in leadership positions.
Organizational culture
Hogan and Coote (2014) defined corporate culture as the unique way of doing things that differentiate one organization from the others in the same business environment. The organizational culture that is adopted by my company is that of innovation and technology absorption. The company is ranked among the best in the region regarding innovation diffusion. Indeed, the organizational culture of the company is based on the strong philosophy of 3Ps (people, planet, and profit). Key among the principles of the company is the need “to ensure green economy” through reduction of carbon emission. The company has a clean culture towards “zero tolerance” to corruption self-discipline, integrity, and professionalism. The management strictly adheres to the relevant laws and regulations such as labor laws, patent, and protection of the environment.
Corporate social responsibility
The concept of CSR goes beyond the literal meaning of “giving back to the community.” The modern aspect of CSR is to ensure that the company meets the social obligations to the local community for the environmental dangers its operations pose to the local society (Dahlsrud, 2008). Among the key CSR policies that my company has adopted is giving employment opportunities to the locals. Records at the HR department show that over 74% of the employees are from the Eastern province of KSA. The company has joined other initiatives such one person, one desk initiative that is aimed at reducing poverty among the locals. The company is also focusing on the alternative sources of energy such as solar and wind to minimize reliance on fossil fuels. Moreover, the company sponsors vital sectors such as education, health, and transport.
Learning Organization
Transformative leaders are known to inculcate the culture of learning (organization leadership culture) to improve service delivery. Consequently, my organization values the importance of learning among its employees. For instance, job placement is based on merit, problem-solving skills, and innovation. The company has an in-service training program for its employees to increase efficiency in service delivery. Besides, my company endeavors to develop talent and innovations among its employees by recognizing unique talents among employees as innovation, sports and leadership skills. Promotion is done internally and based on merit. Moreover, the company has a coaching program that is aimed at improving service delivery by newly employed staff. Finally, the company offers spiritual health to the workforce who are suffering from work-rated stresses and other psychological health issues to maintain health and productivity balance among the employees.
Key Stakeholders in the corporate sustainability program:
Community
As an oil drilling company, the community is the first stakeholder that the company has to consider. The community benefits from the operations of the firm in various ways. Firstly, the community obtains a constant supply of power from the firm. Secondly, the local community gets employed by the firm. Moreover, the company has sponsored various projects in health, education, and transport which are beneficial to society. However, the operations of the company impact negatively on the local community mainly through greenhouse gases emissions. Community land is also taken by the drilling company which leads to the eviction of people from their ancestral lands.
The Management:
The management of any organization is the engine that determines the success or the failure of the business sustainability program. The company is run by transformative leaders who are driven by favorable changes in the firm. The management and the shareholders are guided by the agency-principal model. Senior management ensures that various departments; production, supply chain management, risk management, HRM, customer care, among other sections meet the objectives of the company. Shareholders, on the other hand, are the owners of capital and entrust their funds the agents (managers). Moreover, employees are evaluated regularly by their line managers to ensure they (employees) have met their targets.
Shareholders
The shareholders are the principals and the owners of the firm. The government of the KSA is also a shareholder in the company. The shareholders have entrusted the management of the firm to the agents. They support the business sustainability plan by passing the budget through the executive board shared by the Chief Executive Officer. Environmental groups and government regulators are also key stakeholders in policy formulation that may directly or indirectly affect the long-term success of the firm.
The Employees
The company values its employees and uses the policy of “people-centered” in addressing human resource needs. Through the HR manager, the staff is actively involved in most of the decision-making process in the company. The staff is frequently trained through in-service training and coaching lessons to improve service delivery. Promotion of employees and remuneration structure are key to the success of the company’s objectives.
Key Performance Indicators (KPIs)
The following are the KPIs that are used to gauge the success of workers about CSR policy against the 5 dimensional model of triple bottom line elements listed above:
Green transformation leadership
Ensure that the company’s operations adhere to the SDGs regarding reducing carbon emission by 20% within the company’s production in 3 years.
Reduce reliance on fossil fuel by 20% by the year 2025.
Improve effectiveness in energy cost.
Eliminate the use of non-biodegradable materials by 2020
Reduction of energy-related risks
Employee Engagement
Promotion and recognition of excellent performance by the end of the year
Encourage effective communication and prompt feedback
Staff motivation through training
Motivate employees through family days, teambuilding sessions, and bonuses
Recognition and rewarding top performance
Organizational Culture
Encouraging teamwork and collaboration among the workers
Creation of an enabling atmosphere for employees
Encourage innovation, problem solving and creativity among the employees
People-oriented culture
Promotion of women leadership
Corporate Social Responsibility
Minimizing the emission of GHGs 20% by 2025
Meeting all the CSR programs at the end of the trading period
Increase the funding in community-based programs
Adherence to the company’s CSR budgetary allocation
Learning organization
Identification and rewarding top performance in the company
Continued use of supervisor-employee appraisals
Obtaining staff rating from the customers
Offering in-service training and coaching sessions to employees
Recommendations
In this section, the report will focus on the recommendations on each of the above elements of 5 dimensional model of TBL as given below:
Green transformation leadership
The community should be synthesized on the need to conserve the environment. The community should be advised on the need to source for alternative sources of energy such as solar and wind. Leaders should also benchmark with other Persian Gulf countries that do not fully rely on fossil fuels such as Bahrain
Employee Engagement
Employees should elect their leaders who will be airing the grievances on their behalf. Customer care and service delivery should also be improved by the employees to get a higher rating from the clients. Line managers are accused of favoritism during appraisals. As such the management should engage workers frequently to address the grievances raised.
Organizational Culture
The company should continue with the culture of rewarding performance and creativity among the workers. In-service training and coaching programs should also continue as it improves service delivery and productivity. Organizing frequent family days and team building events is one way in which a company can teach organizational culture within its employees.
Corporate social responsibility
Employees should not be forced by the management to take part or to contribute towards the CSR programs. The company should use the budget as per the financial report to funding the numerous corporate social responsibility programs. Society should be educated on the concept of CSR to create awareness of the difference between donations, grants, and healthy living.
Learning organization
Involving all the stakeholders through the diffusion theory is one of how organizational leadership culture can be enshrined in the business sustainability plan. Also, effective communication should be encouraged within the organization. Promotion process should be based on merit and not setting scores among employees and line managers. Targets set during appraisal should be attainable.
References
Dahlsrud, A. (2008). How corporate social responsibility is defined: an analysis of 37 definitions. Corporate social responsibility and environmental management, 15(1), 1-13.
Hogan, S. J., & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test of Schein’s model. Journal of Business Research, 67(8), 1609-1621.
Holden, E., Linnerud, K., Banister, D., Schwanitz, V. J., & Wierling, A. (2017). The Imperatives of Sustainable Development: Needs, Justice, Limits. Routledge.
Hubbard, G. (2009). Measuring organizational performance: beyond the triple bottom line. Business strategy and the environment, 18(3), 177-191.
Slaper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it and how does it work. Indiana business review, 86(1), 4-8.
Xanthopoulou, D., Bakker, A. B., Demerouti, E., & Schaufeli, W. B. (2009). Work engagement and financial returns: A diary study on the role of job and personal resources. Journal of occupational and organizational psychology, 82(1), 183-200.