BSS017-2 Sustainable Business Management Assignment Sample
Module code and Title: BSS017-2 Sustainable Business Management Assignment Sample
Introduction
Green lifestyles and consumerism are becoming more and more common worldwide, especially in developed nations, and they are quickly spreading to intermediate and more significant developing nations. Green consumerism refers to the intentional purchasing and usage of environmentally friendly items that are unlikely to cause harmful effects or endanger the balance of nature. It is motivated by the goal of improving the well-being of individuals while simultaneously preserving the environment for future generations.
A consumer trends poll discovered that most customers are willing to pay 10% extra for food that uses ecologically sustainable materials. In reality, COVID-19 has inspired customers to constantly pursue socially accountable items, give more consideration to their well-being and the environment, and work with companies that provide protracted sustainable economic solutions. In green consumerism, eco-friendly and sustainable commodities are emphasized as a crucial standard for high-quality goods and services (Tang and Demeritt, 2018).
Corporate leaders are employing new techniques to promote sustainability in their business activities globally and across industries. Sustainable business practices are now more critical, given the constantly changing nature of the climate challenge, than ever before. Economic, societal, and environmental development must all be provided by a firm in order for it to become viable. By preventing businesses from using more resource materials than they require, these policies ensure that the planet’s finite resources can support subsequent generations.
Even though they appear straightforward on paper, firms of all sizes have consistently faced difficulties putting corporate sustainability plans into practice. Definitional disputes may develop when determining what business success implies by sustainability. An engaging plan may emerge, however, by setting precise and achievable goals and designing a successful method to reach specific goals regarding the safekeeping of the environment.
Analysis
Today’s enterprises encounter several problems. Their operating environment’s constant change is one of the main challenges. Technology may evolve swiftly, economies can shift abruptly, and new rivals might appear at any moment. In order to be sustainable, businesses must be able to respond successfully and welcome change (Tang and Demeritt, 2018).
Although it is not always straightforward, the capacity for change and adaptation is crucial for companies that wish to remain competitive. Those that can do this will have a greater chance of surviving and thriving in today’s corporate environment. The majority of business entrepreneurs experience obstacles daily. The most frequent ones include poor communication, financial difficulties, and rules and compliance requirements (Ghadge, Wurtmann and Seuring, 2020).
Challenges faced by Businesses.
Due to companies’ dependence on natural resources, such as raw materials, maintaining a harmonious balance between factory production and the ecosystem is the corporate environment’s most significant problem. Due to the ongoing depletion of natural resources brought on by rising industrial output, people in business have been obliged to look into various new options for raw materials.
In words of Goldstein et al. (2019), the issue of societal expenses has been brought about by the country’s declining natural resources and aesthetics. Hence, it has evolved into a crucial task and duty of businesspeople or entrepreneurs to strike a balance between rapid industrialization and the ecosystem for the flourishing of human civilization (Todaro et al. 2021).
Compliance with federal regulations has become one of the biggest hurdle’s businesses face today. Given their complexity and constant change, businesses may need help to stay on top of these requirements. In addition to following local rules, businesses must also abide by national and worldwide requirements. In addition to being expensive, noncompliance can result in harsh fines for a corporation.
Legal difficulties are another typical source of difficulty for enterprises. Laws, including patent law, labour laws, and legal principles, must all be understood by businesses. Business blunders are common while traversing the legal system since they may be challenging and time-consuming (Seddon et al. 2021).
In actuality, entrepreneurs confront many difficulties and problems along the way. IRS audits, and noncompliance problems can occasionally result from shifting tax laws. They also experience a cash flow issue, which stops their entire company. These problems have an influence on profitability in addition to reducing production levels.
Additionally, modern organizations must adjust to whole new advertising channels. They must stay on top of emerging technology, including media platforms, online services, and web development (Ghadge, Wurtmann and Seuring, 2020). Furthermore, because electronic content is global in scope, businesses must contend with big brands. Internal activities may be halted due to these difficulties, which may cause numerous production processes and logistical problems.
A further issue that firms encounter is poor communication. This might happen due to a disruption in communication between employees, departments, or the company and its customers. When there is a communication breakdown, this can result in misinterpretations, irritation, and perhaps even confrontation. This might harm a company and cause a loss of income (Pandy and Rogerson, 2019).
The problem worsens since many business owners communicate in a bureaucratic manner. In order to prevent this, organizations must have distinct and unambiguous communication routes. Communications with all parties engaged in this issue should be transparent and upfront if this problem is to be solved (Pandy and Rogerson, 2019).
Future Challenges of Businesses
In previous years, healthcare and economic problems have been challenges for any worldwide firm trying to compete in the global market. These crises have sparked innovative collaborations, mergers, countless foreclosures, rearranging distribution networks, remote working over an unimaginable scale, and onboarding employee and consumer interaction procedures (Liu, Lee and Lee, 2020).
Many people active in global commerce are working to aid firms in becoming ready for the future. The first stage is to ensure one’s survival and resilience. This pertains to current societal upheaval, devastating climatic disasters, and newly triggered cybercrime, in addition to the effects of the continuing epidemic and their economic posture (Embry, Jones and York, 2019).
The majority of the paradigms that power modern businesses are failing. The indications are everywhere. Profitability is shrinking. There is less value for money with each iteration of disruptive innovations compared to the previous one. On-time delivery is becoming more challenging for suppliers to promise. It is becoming more difficult to overlook how the supply chain affects the developing ecological disaster.
The disparity between popular opinion and elite thought is more comprehensive than ever before, according to research on trustworthiness for numerous nations. Corporations are being informed by the communities in which they operate that they must uphold contemporary values and purposes (Liu, Lee and Lee, 2020). ESG and other formalities are insufficient. Workers, particularly the younger workforce, hold companies responsible for their morals and virtues (Haseeb et al. 2019).
Upheavals for multinational businesses operating in the global economy are coming from all directions, and three essential risk variables must be continuously monitored: social, technical, and geopolitical upheaval. In politics, businesses should be aware of the different economic stimulus dynamics and how they might be biased toward particular major industries and categories of enterprises, coupled with financing availability.
The corporate landscape is likewise being disrupted and accelerated by technological factors. The epidemic has spawned an unanticipated technological revolution for businesses of all sizes. As a result of fast digitization, community and personal connections have been revolutionized overnight. Virtual conferences, e-commerce, entertainment, and broadcasting have experienced remarkable growth rates (Amankwah-Amoah, Khan and Wood, 2021).
Rapid digitization has resulted in increasingly complex and perhaps less secure networking, which has also dramatically increased cyber risk. Additionally, as a result of societal factors, real constraints are being produced.
International business practices are being examined more closely, particularly in relation to regulatory, socioeconomic, and external factors of corporate performance, along with climate change. Investors, workers, and customers now demand more than ever that firms represent their values (Ghadge, Wurtmann and Seuring, 2020).
The biggest commercial problem we face today is climate change, and customers are calling for increased accountability in sustainability initiatives and more environmentally friendly services and solutions. Businesses might respond by taking a comprehensive look at their operational procedures and conducting a distribution network assessment.
In order to reduce emissions, they must also consider converting to renewable energy, adopting more environmentally friendly packaging, and enabling workplace flexibility when necessary (Miśkiewicz, 2019). Gaining consumer satisfaction and identifying improvements and savings that improve the business’s financial line are possible benefits of being more sustainable.
Conclusion
Corporate social responsibility refers to the actions a corporation takes to make sure its operations have beneficial social and environmental impacts. Businesses that directly participate in CSR initiatives evaluate the way they conduct business globally to include tackling societal and cultural challenges with the hope of gaining from each in the procedure.
The promotion of change and advancement around the globe, which frequently entails assisting others with little to no capabilities, may enhance the company and income in addition to fostering CSR.
CSR is distinguished from charity. It should have a beneficial impact on how a firm does business and become embedded in the principles and culture of the organisation when effectively applied. CSR must become embedded in an organisation in order to achieve its goals and messages, in addition to playing an important part in promotion and marketing.
Companies need to be mindful that advertising their CSR practice will only promote the firm if they are currently implementing their strategy. Otherwise, making misleading claims that helping people in distress can bring about societal transformation might generate negative press.
Reflective account
According to my perspective, corporate and social responsibility goes beyond just a passing fad or craze in commerce. I think businesses that embrace CSR will gain from doing so since it will help them stay connected to younger consumers and give back to the global community while also boosting their personal productivity, promoting social values and profitability.
I think company’s reputation and financial health will be at stake if it ignores corporate social responsibility. A company’s total profitability and performance can suffer significantly from having a poor image in the social and ecological spheres. Since customers today want to purchase goods and products, they can stand behind and do business with organisations that uphold their values along with managing social enterprises.
Reference List
Todaro, N.M., Testa, F., Daddi, T. and Iraldo, F., 2021. The influence of managers’ awareness of climate change, perceived climate risk exposure and risk tolerance on the adoption of corporate responses to climate change. Business Strategy and the Environment, 30(2), pp.1232-1248.
Seddon, N., Smith, A., Smith, P., Key, I., Chausson, A., Girardin, C., House, J., Srivastava, S. and Turner, B., 2021. Getting the message right on nature-based solutions to climate change. Global change biology, 27(8), pp.1518-1546.
Ghadge, A., Wurtmann, H. and Seuring, S., 2020. Managing climate change risks in global supply chains: a review and research agenda. International Journal of Production Research, 58(1), pp.44-64.
Pandy, W.R. and Rogerson, C.M., 2019. Urban tourism and climate change. Urbani izziv, 30, pp.225-243.
Embry, E., Jones, J. and York, J.G., 2019. Climate change and entrepreneurship. In Handbook of Inclusive Innovation (pp. 377-393). Edward Elgar Publishing.
Liu, Y., Lee, J.M. and Lee, C., 2020. The challenges and opportunities of a global health crisis: the management and business implications of COVID-19 from an Asian perspective. Asian Business & Management, 19(3), pp.277-297.
Amankwah-Amoah, J., Khan, Z. and Wood, G., 2021. COVID-19 and business failures: The paradoxes of experience, scale, and scope for theory and practice. European Management Journal, 39(2), pp.179-184.
Miśkiewicz, R., 2019. Challenges facing management practice in the light of Industry 4.0: The example of Poland. Virtual Economics, 2(2), pp.37-47.
Haseeb, M., Hussain, H.I., Kot, S., Androniceanu, A. and Jermsittiparsert, K., 2019. Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability, 11(14), p.3811.
Almeida, F., Santos, J.D. and Monteiro, J.A., 2020. The challenges and opportunities in the digitalization of companies in a post-COVID-19 World. IEEE Engineering Management Review, 48(3), pp.97-103.
Bruns, B., Macdonald, I.H. and Schneider, B.R., 2019. The politics of quality reforms and the challenges for SDGs in education. World Development, 118, pp.27-38.
Haseeb, M., Hussain, H.I., Ślusarczyk, B. and Jermsittiparsert, K., 2019. Industry 4.0: A solution towards technology challenges of sustainable business performance. Social Sciences, 8(5), p.154.
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