In chapter four of the book The Business Student’s Guide to sustainable Management by Petra Molthan-Hill, we come to understand “Integrating the three pillars of sustainability: social, environmental and economic.” This chapters talks on the first bases of the combination of these three aspects of social, environmental, and economic in sustainability that come into affecting and engage with the business framework. On this chapter is also talked about the link between this three elements that affect and are important for the business. When talking about sustainability in the business we encounter Hitchcock and Willard; it is like a framework they said, do to the fact that when using a framework, you have the advantage of foreseeing change and take action. If you want to be able to understand and know how to act on situation, it is to necessary that business that want to be sustainable to see the relationship between the three elements that are social, environment, and economic. From over the years and my opinion and in agreement to the book there has been an increase in the popularity of having a business that is sustainable. People outside see the business differently because they are acknowledging more than just the fact to make a profit but how can they impact and how it will affect them in the future as a hold.
Triple bottom line and sustainability is super important to understand. First, let’s understand that triple bottom line (TBL) was first introduce in 1997 by Elkington in Cannibals with Forks.Here Elkington want us to understand that environmental is the only aspect that should be taken into consideration. But, to further open your mind to see that “triple bottom line, involving not only economic prosperity and environmental quality, but also social justice.”(Hill, 2017) we found it really amazing to break the concept and to start the conversation of how is my company affecting in a social level. Is important to understand that Elkington talks about or wants business to understand that all is not just profit base, but that they need to look further into understanding not only shareholders interest but as well take in consideration stakeholders wants and needs. At the end everything comes to affect and influence your business. Not only the legislated or economic side but in addition the community around your business and does that watch closely how your business is working to be more environmental friendly. Opinion of those that surround your business is very important and when you become a business that understands and knows how to deal with the triple bottom lines, you become more efficient and capable to do more and be recognized even in a higher standard. In addition, the research done by Accenture commissioned by the United Nations Global Compact(UNGC) allows us to see that the majority of CEOs interview in 2013 answer on the importance of sustainability strategy saying that is the way to be more competitive advantage in their industries. Later, on 2016 the same research was made and the majority again of the CEOs agreed on the fact that being sustainable is a commitment that translate into affecting their industries with real consequences. Moreover, in the chapter we are reminded to be aware of corruption and how it impacts the triple bottom line and the results slowed-down development and loss investment. Corruption affects all type of business, it does not regard if it’s a developed or developing nation, it is a real problem that affects the economy, the communities, and social standards.
Taking in consideration the research by Accenture, it comes to show how companies had taken into consideration their corporate responsibility that often shows shareholders values but, it also comes to show that companies are understanding that they do have a role in the society and environment that has a real impact. Many companies have taken in as a task to do the Corporate Responsibility report to show how sustainable they are to others and it has become a very desire position to have that positive impact in others. Moreover, is important that business learn how to integrate the three pillars of sustainability that are society, economy, and environment as one in direct contact of the business and that they merge together with the business to reach being sustainable. There will be challenges to the integration of being sustainable but as stated by MIT Sloan Management Review in 2016, come to prove that even thru recession the investment made to sustainable investment survived the recession. Sustainable investment are often long term and the results are not tangible rewards but they do still add value and credibility to the company.
In 2015 the United Nation introduce the “17 Sustainable Development Goal”. It shows how business somehow or someway they do affect and have a role to play in being sustainable. Small changes or even big in there production and consumption can make a big differences. Not only that but the chapter talks about the important role that plays the ecosystem services that is already here and that business can use. Water and air are obviously there but in the case of farmer the work or services that some insects provide to help the crops and farms is really undervalue, when they help save so much all along the supply chain. This chapter wants to allow us to think further ahead beyond are on selfish needs to just destroyed and use more and more with thinking of the role that we all have in this the only earth that we have. We need to adapt to nature and together grow and develop instead of taking and never giving back or thinking back on the consequences that affect the future generations and our everyday lives.
The chapter also goes over the differences between socio-efficiency and socio-effectiveness and the important role that they both play in companies relationships within the community they are in by creating jobs or by the overall way that a companies achieve to impact in a positive ways. Finally, it all comes down to the actions the businesses take to make a differences and help those that are around them. By making sure the stakeholders are also working in a good environment where as a hold we can all grow and take the right measurements to stay aware of problems that may come up and to fix it as a sustainable business that cares and values their stakeholders, maintain a profitable business that has a sustainable framework.
In the article, “Why Sustainability is Now the Key Driver of Innovation”(Nidumolu et al, 2009) Even though many companies believed that “the more environment-friendly they become, the more the effort will erode their competitiveness”, lowing cost and creating better products are the final goals to make profit, and the core is innovation. Sustainability is a long-term goal, and it will always be a part of development. Companies who have the sustainable innovation will have a competitive advantage from rivals. There are five stages of change as follow:
1. Viewing compliance as opportunity
Rules and policies are the guidelines for companies to develop, because the government will force companies to comply rules in the future, and at that time, companies which didn’t follow the rules and already had their production line may face to change the mature production line again. Companies need to cooperate with other companies and learn from others’ technologies and create new innovations.
2. Making value chains sustainable
Manufacturing facilities should improve the efficiency of the production, including using “eco-friendly raw materials and components and reduce waste”. (P. 4) Firms offer incentives and lay down the law to make effort on supply chains and result in high energy efficiency on operations. Employees can work at home to reduce the energy use and time from transportation. Products’ return also can save the cost and reduce waste. Through this stage, firms should use sustainable materials and control the waste and pollution and recycle materials and products.
3. Designing sustainable products and services
At this stage, companies start knowing consumers prefer eco-friendly products and paying more attention on recognizing unfriendly products and services from the manufacturing and materials. Companies need to focus on long-term profit and environment, which will help them to seize the market.
4. Developing new business models
New business models “include novel ways of capturing revenues and delivering services in tandem with other companies”. (p.8) FedEx and Kinko worked together to create a new deliver way by using electrical transformation[TA1] , which saved time and cost. Companies need to come up with new ways to meet customers’ different needs. And cooperation can combine the competitive advantages from different companies, then creates more value and better products and services.
5. Creating next-practice platform
Companies will ask questions about lacked resources and try to innovate and solve the problems. Once a company starts thinking how to use sustainability to create new products, it is on the next-practice platforms. When companies focus on solving sustainable problems and hire the right managers, these companies are becoming sustainable. Companies innovate new things and other companies also can take advantage from them and achieve the sustainable goals together.
In conclusion, if companies want to keep the market and last for long, they need to use sustainability to guide the way, find their opportunities, use renewable and eco-friendly materials, innovate new products and services for customers to reduce the harm to the environment, and always think about how to achieve sustainable goals. All the cores are about using sustainability to innovate, so sustainability is the key of innovation.
In the chapter 11, on Crowdsourcing and Sustainable Solution from the book The Business Student’s Guide to sustainable Management by Petra Molthan-Hill, we examines some of the powerful ways in which open innovation and crowdsourcing are applied to solving environmental, social and economic sustainability challenges. It outlines the strategic context and need from a business perspective. The definition of innovation in a business context is that how an idea or invention is utilized in a new product or solution to create a desired impact. Henry Chesbrough introduced the concept of open innovation in his 2003 book, Open Innovation: The New Imperative for Creating and Profiting from Technology. Later, he defined open innovation as a “more participatory and decentralized approach to innovation which uses purposive inflows and outflows of knowledge to accelerate internal innovation, and expands the markets for external use of innovation.” There are six types of crowdsourcing. They are (1) crowd labour, (2) crowdfunding, (3) crowd creativity, (4) crowd innovation, (5) crowd wisdom and (6) crowd governance. Innovation and crowdsourcing are powerful approaches for business that have many advantages. (1) They can improve delivery and development of new technologies, approaches and creative solutions. (2) They can accelerate time-to-market and opportunities for first-to-market advantages. (3) They can hit higher rate of new product development, reduces the risk of innovation and enables faster abandonment or greater learning from failed ideas. (4) They can reduce cost and fees. (5) Participation and engagement will increase the likelihood of behavior change. (6) Open innovation stimulates more transformative solutions and business models. Nowadays, business, governments, NGOs and academic institutions tap into innovation and crowdsourcing to environmental, sustainability and social justice-related challenges. In the end, this chapter summarizes some inspirational examples of crowdsourcing applied to advancing business sustainability and social innovation as well as the implications of open innovation for organizational leadership.
The video “The Circular Economy” by Ellen MacArthur, starts by a men talking about the time that Ellen MacArthur had spent on the sea from point a to b, she spent 71 days. She opens the video by giving the audiences some key facts and important information that is necessary if you want to break the record of going around the world in a boat. Ellen said how it is key to make sure everything last until that last day but at the same time to make the boat go faster you need to carry the least that you can and get rid of the unnecessary. After breaking the record and stepping out the boat the thought on the world she lives in and that all of us are in and if there is any different with the life at sea. She gave up her dreams and goals at the sea because she saw a need to focus on a greater meaning and goal. Background information is given on the basic framework life on earth has develop and evolve. In addition, she adds that everything work in the essences “all life was made to be made again”( MacArthur, 2010). At least 100 years ago we human start to use fossil fuel to create and to move in the “industrial era” (MacArthur, 2010), thanks to all the energy provide by the fossil fuel , it made easier, better life. Moreover, thanks to all the energy being produced now people could have more food, school, cars, and bigger cities. It was shocking to learn that a city by the short in around 50 years became a “Mega City” but is the reality of the present. Something that might have taken more than 100 years is made in half and half of the time because of the fast pace. But, is true what she said, “for how long can this go” is crazy how much us human just consume and consume. Is fact we spent so much in taking things out of the ground, producing, them to be consume, and after be thrown away.(MacArthur, 2010) Again, in the video she points out the true that even if we recycle and throw away a little less and change a few products for less consuming and more efficient, really where it will take us? She said that we surely can do better, when we look at what is already there as the living systems to teach us how to “rethink the future”. “We try to impose a linear system on a circular world”( MacArthur, 2010) We can learn from what has been here for millions of years as the living systems. She stated that we should implement “Towards a Circular Economy”( MacArthur, 2010) Company and countries as China that are aspiring to get to a system that works long term. Looking into sources that last as renewable energy as wind, water, and solar energy. By resourcing from different energy sources as mention in the video as “Strength in Diversity”(MacArthur, 2010). In that way we don’t exploit and over use one source to survive, produce, and move. Moreover, “Waste Equals Food” is mention in the way how nature apply is that nothing goes to waste but is necessary to bring something else further. By closing the loop is important when some product is in no need anymore it goes back and redesign to fit the new purpose, in a way where the “valuable materials are maintain”(MacArthur, 2010). Them, it come the part where she explain how we put into practice the concept of rethinking our future, in the example she use in the video we take the car and make it electric being able to run faster in way less lost of energy as the regular car. Moreover, we use different material to make our cars as polymet plastic that is made to be use again as she said by eliminating waste. In addition, we make charging stations and car companies are the owner of the batteries that will result in cheaper solutions. We can avoid so much when we use renewable energy. It is so empowering the way she said “a future that can actually build capitals and not eat things up”(MacArthur, 2010), it is truly powerful the way she simply connects the dots and makes us the audience to be aware because all can be possible when we learn from what is there and apply it by rethinking and redesigning our future with the technology that is here and that is being created. Truly an amazing video to wake up everybody on the fact that if don’t find a way to redesign now there will be no tomorrow.
From the book, The Business Student’s Guide to sustainable Management by Petra Molthan-Hill, in chapter 13. In general terms, supply chain management can be defined as ‘the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole’(Christopher 2011:3). Nowadays, trends in supply chain management have seen a rapid growth in outsourcing, off-shoring and global sourcing.
This chapter deals with two broad aspects- social and environmental sustainability within the supply chain. Social sustainability relates to international labor standards such as securing workers the minimum wage, reasonable working hours and overtime payment, the right to collective bargaining, freedom of association, and health and safety at supplier factories. The emerging term modern slavery, is defined as ‘the exploitation of a person who is deprived of individual liberty anywhere along the supply chain, from raw materials extraction to final customer for the purpose of service provision or production’(Gold et al. 2015: 5). In the supply chain, it includes child trafficking and child labor, debt bondage and forced labor.
Environmental codes include managing product stewardship, production and logistics throughout the supply and harmful substance, while reducing emissions and wastes. It is also defined by Srivastava (2007: 54-55) as green supply chain management (GSGM). The reverse supply chain is a growing phenomenon in sustainable supply, which means collecting and moving goods from their normal end-of-life for the purpose of capturing value from waste, reuse or refurbishment, or managing their disposal.
There may exists difficulties and challenges inherent in sustainable supply chain management. Often there are trade-offs between commercial and social considerations. The example of Western retailers illustrates that implementing ‘global’ ethical guidelines of companies in ‘local context’ is not so easy. Besides, making sure the traceability and transparency and tracking corruption are also important in the context of supply chain sustainability. This chapter also tells us supply chain management education is integral to achieving six principles of PRME. It relates supply chain management to the ten principles of the Global Compact and proving examples, tools and techniques as well as the 17 United Nations
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