Sustainability refers to the ability to meet the current needs of the people without jeopardizing the ability of future generations to meet their needs. The principle of sustainability can be looked at in three perspectives of the economic, environmental and social aspects. With the increase in the consumption of natural resources in the modern world due to rapid industrialization, future generation risks not being able to meet their needs because of depletion and pollution. With the rapid change in global climate, there are calls for countries and companies to be more sustainable by embracing good practices and making policies that will allow for more conservation of the environment. Companies can do this by focusing more on the zero waste packing, reduce the emission of greenhouse gases, cut on carbon footprint, lessen the amount of energy they use and buy products and raw materials from people or companies that adhere to the principle of sustainability. This report will focus on the concept of sustainability and provide a piece of advice to a sceptical manager on the reasons why it is important to embrace sustainability.

2.0 Literature Review

2.1 Sustainability

Vos (2007) and Baumgartner and Ebner (2010) investigated the concept of sustainability. Vos noted that this concept focuses on the usage of the resources that are available in the world economically by conserving them so that they will be available for the posterity. Vos notes that the countries in the world need to have a commitment to sustainability where they have a vision of improving the quality of life while respecting the need to conserve the environment for posterity. Vos states that future generations should be able to enjoy what the present generation is enjoying. According to this research, the concept of sustainability will be achieved if the current generation will be able to conserve the available resources without compromising the quality of life for the generations to come. Baumgartner and Ebner (2010) noticed that the objective of sustainability is to be able to fight poverty that affects millions of people and being able to conserve the environment at the macro level. Baumgartner and Ebner remarked that for suitability to be achieved whether by countries or by organizations, there is a need for a vision and a comprehensive strategy that will aid in the realization of the goal.

2.2 Need for Sustainability

Vos (2007) and Baumgartner and Ebner (2010) have stated that the primary objective of sustainability is the ability to use the resources that are available in the world without risking the ability of the future generations to satisfy their needs. Furthermore, they also emphasize that sustainability is aimed at striking an equilibrium between the three pillars of sustainability of economic, environmental and social-political sustainability. Sustainability is also aimed at influencing the consumption patterns of the people in the world such that they can consume less so that the future generations will have enough to meet their needs. Furthermore, it also aims to bequeath the current resources or improved ones that the world is endowed with to the future generation. Wilhelm, Yankov and Magee (2011) noted that sustainability aims at developing an environmental handrail aimed to guide the development in the society such that it is not achieved at the expense of the environment. Therefore, sustainability targets the development that will be sustainable into the future.

2.3 Good Sustainability Initiatives and Companies That Use Them

Wilhelm, Yankov and Magee (2011) observed that there are different initiatives for sustainability at the corporate level, such as providing instruction that the users of the products can use to dispose of the waste product. For example, in the mobile industry in companies such as Verizon and T-Mobil, they have included a note that helps the users of the product to disposal the e-waste. Baumgartner and Ebner (2010) remarked that another strategy that has been implemented to promote suitability is the ability to recycle some of the parts of the products such as the battery and boxes. Some countries such as the EU obligates that companies use uniform chargers of mobile phones such that there is limited waste from the electronic products (European Parliament, 2020). Moreover, companies are adopting measures that allow the customers to return the waste from the product to the companies. Also, companies are taking part in Corporate Social Responsibilities (CSR) in projects aimed at conserving the environment, such as the planting of trees. Other companies are focusing on suitability from the source where they purchase products from producers who have produced their commodities sustainably. Langert (2019) noted that McDonald’s aims to buy products that have been produced without degrading the environment. These measures are vital in certifying that the environment is conserved.

2.4 Benefits of Adopting sustainability

Leopold and Paspala (2007) and Kohleriter and Crawley (2016) observed that there are several benefits that a company gets by adopting sustainability as one of its objectives. Leopold and associate noted that a company can enhance its brand image and also to improve its competitive advantage by adopting sustainability. The contemporary customers consider the impact of the company on the environment to determine whether to purchase from the company or not. Kohleriter and Crawley (2016) noted that sustainability also helps companies to improve productivity and lower costs through energy conservation measures as well as enhancing efficiency in business processes. Moreover, sustainability increases the propensity of companies to comply with government regulations and be able to attract employees and investors. Companies that adopt sustainability are likely to have better relationships with shareholders and also helps in reducing waste.

2.5 Implication of Not Adopting Sustainability

Willard (2015) observed that there are companies that perceive the adoption of sustainability as being costly, which outweighs the benefits that can be realized from pursuing the objectives. One of the pitfalls is the lack of customer loyalty. Most of the customers are now sensitive about the environment, and they want to buy products from companies that have initiatives to conserve the environment. Willard (2011) also notes that a company will lose its competitive advantage if it loses the market share to the competitors. The declining turnover due to failure to adopt sustainability measures means that the company is likely to experience a higher turnover because of the scarcity of resources to compensate employees adequately. The brand image of such companies is likely not to appeal to customers, and this risks the foreclosure of such companies because it will also be difficult to comply with the government regulations.

3.0 Organization and Products

3.1 Associated British Foods

Associated British foods is one of the British multinationals food processing and retailing companies that is headquartered in London. It produces ingredient, and this line of production is the second-largest in the world (Associated British Foods, 2019). The company also produces other products such as emulsifiers, baker’s yeast, sugar, lactose and enzymes as well as animal feeds. The company had revenue amounting to 15.85 GBP as of 2019, and the number of employees was at 138,000. It has other subsidiaries such as Primark and Twining Crosfield.

3.2 Sustainability Initiative

3.2.1 Conservation of Forest to Avert Climate Change

One of the key initiatives that Associated British Foods PLC needs to implement is environmental conservation. The company relies heavily on raw materials that are produced in more than 52 countries across the world. Additionally, there are concerns that in the production process of the raw materials, there is environmental pollution that occurs due to the use of chemicals and clearing the natural vegetation to create room for farming. This may impact negatively on the future production of the inputs, and the existence of the firm in future may be at risk due to inadequacy of inputs.

British Associated Foods can implement this initiative by buying products from farmers who have produced them sustainably to mitigate climate change. Additionally, the firm can also promote environmental suitability by engaging the stakeholders. Some stakeholders are vital for this initiative to succeed, such as the communities, consumers, employees, government and other associations that are concerned with environmental conservation. The firm can guarantee sustainability at the source by educating the framer on the need to produce their products sustainably without destroying the environment. This is the most basic place to start implementing the sustainability efforts for the firm. The company then needs to move ahead to certify that the waste product is effectively recycled to avoid further pollution. This should be in line with government regulations regarding how companies need to dispose of their waste products (Associated British Foods, 2019). The firm can move a step further by instituting Corporate Social Responsibility (CSR) projects that focus on conserving the environment, such as supporting the planting of trees in different parts of the world. These initiatives will be fundamental in guaranteeing the continuous production of the raw materials and the continued existence of the firm.

3.3 Benefits

One of the most significant advantages that Associated British Foods can get for being environmentally sustainable is guaranteeing continuity into the future. By guaranteeing sustainability at the source of the product, the company will be guaranteed of having a continuous supply of raw materials, and this will be instrumental for its continued existence. The future existence of most companies is at risk because of the environmental changes which are likely to disrupt their supply chain. Another vital benefit Associated British Foods will get by being sustainable is customer loyalty. Contemporary customers are willing to buy products from companies that are sensitive about the environment. Some of them are willing to pay a premium price for the product as long as it has been produced sustainably. Additionally, by focusing on sustainability, the company will strengthen its brand image, and this will be useful for promoting the turnover of the company. This will mean that the company will be more profitable, which is good for the shareholder. By incorporating stakeholders such as communities in the conservation process, there will be improved relations, and this promotes the goodwill for the company. The company will have to meet the cost of educating the communities and supporting farmers such that they will produce their products sustainably.

4.0 Looking to The Future

In future, waste management will evolve significantly. Probably most of the products will be made from recycled materials. The number of companies that are recycling products is increasing, and this is useful in protecting the environment. The trade on recycled materials will augment as more communities embrace the need to be more sustainable. Additionally, the planet will benefit significantly from recycled products such as the generation of electricity and the use of waste products for farming (Baumgartner and Ebner (2010). Therefore, the largest proportion of trade in the world will be for recycled material. Recycling of product is likely to be high in developing countries where they need raw materials for their industries, and therefore they will make the largest proportion of the buyers. The recycling of product will also be supported by the government regulations as countries continue to be more conscious about the conservation of the environment.

5.0 Conclusion

Sustainability refers to the ability to use the resources available in the world to meet the current needs without risking the ability of future generations to meet their needs. Companies need to focus on sustainability to promote their brand image, enhance customer loyalty, increase turnover, enhance the relationship with communities and shareholders and guaranteeing steady supply chain. These aspects will be vital for the continued existed of the companies in future. Associated British Foods will benefit significantly by focusing on the conservation of the environment to ensure a steady supply of raw material. It will also benefit from having quality raw materials as the impact of the environmental change from the production process will be negligible.

6.0 References

Associated British Foods (2019) Living our values. Available at: http://www.abf.co.uk/file.axd?pointerID=87c2437d380546e295d210a9b5c618ab (Accessed: July 11, 2020).

Baumgartner, R.J. and Ebner, D., 2010. Corporate sustainability strategies: sustainability profiles and maturity levels. Sustainable Development, 18(2), pp.76-89. http://www.pmir.it/fileCaricati/1/Baumgartner%20and%20Ebner%20(2010).pdf

European Parliament (2020) A EUROPE FIT FOR THE DIGITAL AGE, LEGISLATIVE TRAIN SCHEDULE. Available at: https://www.europarl.europa.eu/legislative-train/theme-a-europe-fit-for-the-digital-age/file-common-chargers-for-mobile-phones (Accessed: July 11, 2020).

Kohleriter, K. and Crawley, M. N. (2016) 9 Unexpected Benefits of Integrating Sustainability into Your Company’s Core Strategy, Quest Assessors. Available at: https://www.questforum.org/wp-content/uploads/2016/10/9-unexpected-benefits-of-sustainability.pdf (Accessed: July 11, 2020).

Langert, B., 2019. The Battle To Do Good: Inside McDonald’s Sustainability Journey. Emerald Group Publishing. https://books.emeraldinsight.com/resources/pdfs/chapters/9781787568167-TYPE23-NR2.pdf

Leopold, A. and Paspala, P., 2007. “Green and competitive” The Advantage of Environmental Sustainability. https://www.researchgate.net/publication/259931878_Green_and_competitive_The_Advantage_of_Environmental_Sustainability

Vos, R.O., 2007. Defining sustainability: a conceptual orientation. Journal of Chemical Technology & Biotechnology: International Research in Process, Environmental & Clean Technology, 82(4), pp.334-339. https://uwosh.edu/sirt/wp-content/uploads/sites/86/2017/08/Definitions-of-Sustainability.pdf

Wilhelm, W., Yankov, A. and Magee, P., 2011. Mobile phone consumption behaviour and the need for sustainability innovations. Journal of Strategic Innovation and Sustainability, 7(2), pp.20-40. http://www.na-businesspress.com/JSIS/WilhelmWWeb7_2_.pdf

Willard, B. (2011) 5 Reputational Risks to Revenue without Sustainability Strategies, Sustainability Advantage. Bob Willard https://sustainabilityadvantage.com/wp-content/uploads/2018/11/SustAdvLogoblue-fullsize-300×138.png. Available at https://sustainabilityadvantage.com/2011/10/18/5-reputational-risks-to-revenue-without-sustainability-strategies/ (Accessed: July 11, 2020).

Willard, B. (2015) 7 Risks to Revenue without Sustainability Strategies, Sustainability Advantage. Bob Willard https://sustainabilityadvantage.com/wp-content/uploads/2018/11/SustAdvLogoblue-fullsize-300×138.png. Available at https://sustainabilityadvantage.com/2011/10/04/7-risks-to-revenue-without-sustainability-strategies/ (Accessed: July 11, 2020).

Operation Management

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1.0 Introduction