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Corporate Sustainability Group Report
Lecturer: Miriam Sarrafan
3CSU2016 – Filmer, Muncey, Thorne

Word Count (excluding references and appendices): 3200

Table of Contents


Overview
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4
Diminishing Resources/Unsustainable Production and Consumption
...

Challenge Two
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6
Challenge 3
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Social Inequity
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11
Recommendation 1
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12
Critical evaluation of Flux concept
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14


Overview
This report critically looks at the sustainability challenges modern businesses face in regards to
specific key areas
...

“The earth cannot sustain the current rates of resource use…” (Blowfield, 2013)
...
Unsustainable
production, and extraction of resources, has been underpinned by the example of oil giant Saudi
Aramco through analysis of their business practices
...
As
greenhouse emissions continue to increase, predominantly carbon levels, it has resulted in vast
changes of weather patterns such as increase in sea levels, temperature rise, melting ice caps, glacial
retreat and ocean acidification (NASA, 2016)
...

Social inequity is the existence of unequal opportunities for different social statuses referring to
people of different genders ages and ethnicities
...
Challenge 3 will look at social inequity as a theory,
providing a business example of poor practice, evaluating the associated impact and outcome
...
According to Pinderhughes
(2004) the stages of product creation are arranged chronologically as; extraction, production,
distribution, consumption and disposal
...
“The faster things
wore out and the sooner they could be thrown away, the faster the economy would grow…” (Brown
2001, 123-124
...
Blowfield explains that after World War II GDP has
“grown faster than at any time in the past…through falling commodity prices, coupled with greater
resource usage…” (Blowfield, 2013
...
These elements have contributed towards higher
consumption, and therefore, higher disposal
...
Electronics organisations release
improved models of equipment frequently that, ultimately, carries out the same function
...
Instead, organisations such as Apple release new laptops and mobile phones once
or twice per year
...
This fuels unnecessary overconsumption of goods and subsequently increases their premature disposal through perceived
obsolescence
...
Less than one % of this material is recycled, due to
low recycling rates for mobile phones
...

In terms of unsustainable production and the exploitation of the earth’s diminishing resources,
industries that operate using fossil fuels are contributing towards a linear system of production on a
planet with finite resources; this system cannot operate indefinitely
...
”
(Leonard, 2010) Leonard continues to explain that to cater for the current level of consumption, it

would require between four and five planets worth of resources
...

An example of an organisation that diminishes the earth’s natural resources at an unsustainable rate
is Saudi Aramco, the world’s largest oil company
...



“…the oil sector accounts for roughly 87% of Saudi Arabia’s revenues… as it pays 93% tax” (CNN
Money, 2016)
...
It is, therefore, in the interest of Saudi Aramco to continue its exploitive operations rather
than move to less profitable, renewable energies
...
However, being government owned demonstrates the stance Saudi
Arabia has as a nation on monetary incentives connected to drilling oil
...
This vast overproduction with the intent
to diminish the earth’s resources purely to create reserves for use in the future arguably displays a
singular approach to the triple bottom line, operating solely around the pursuit of profit to fund the
government through taxes
...
34) according
to the United Nations secretary as the on-going issue of greenhouse gas emissions continue to
increase
...
S
...
7% from 2000-2020 as global energy demand and growth of countries contribute
towards the problem (U
...
Climate Action Report, 2002)
...
The article continues to mention that the majority of these companies
operate in the oil and coal industry where Russia, China and Poland are the largest contributing
nations
...
She continues to mention how groups of scientists studied severe
weather occurrences in 2014 and how that they have been linked to climate change (Matthews,
2015)
...
9%
...
The EPA continues
to explain that the main fossil fuel being burned is coal which creates more carbon emissions than
natural gas or oil
...
Arch Coal is the second largest coal producer in the U
...
famous for owning its mountain top
ranges for harvesting coal
...

Arch Coal had been recommended to find ways to reduce their emissions by creating cleaner
production methods and extraction of coal, however even with pressure created by the government
they did not consider coal being a main cause of climate change (Pinkse, Kolk, 2009)
...

The significance of what Arch Coal deliver is that as well as producing high emissions from their coal
extraction and burning they also pollute nearby wildlife with the leftover sludge from the process
which causes illnesses to wildlife and damage to the enviroment
...
The sire
itself contained 1
...
With this proposed project it was expected it would create more pollution than it
would with goods, however unfortunately for Arch Coal the proposed plan was denied
...
E&E legal announced Arch Coal is not a
cause of high pollution after inspection which had created controversy, it was later found out they
were being paid an undisclosed fee by Arch Coal (Calitri, 2016)
...
From this, significant amounts of pressure were placed on Arch Coal where
eventually they declared bankruptcy as they could not find methods of cleaner production
(EcoWatch, 2016)
...
There is
increasing pressure, from governmental and industry standard regulation and from consumers for a
business to be conscious of social equity and conduct themselves in an appropriate manner
...
In context of business, social audits are used to measure the level of social
equity resulting from a company’s actions
...
A
...
PG
...
‘Sinar Mas group’ will be looked at as an example of a company that has exercised social
inequity through its production of palm oil
...

Global demand for palm oil is increasing at fast rates, currently fifty million tonnes are produced
annually for vegetable oil and an array of house hold products, 85% is exported from Indonesia and
Malaysia, although this is commonly done unsustainably (Palm oil, 2016)
...
According to
the world wild life fund, deforestation is occurring at the equivalent rate of three-hundred football
pitches per day
...
The lack of Corporate social responsibility exercised is apparent when looking at
wider associated areas, the Sumatran Orangutan, Sumatran Elephant, Bornean Pygmy Elephant,
Sumatran Tiger and Rhino are all critically endangered as a direct result of palm oil production in
Indonesia and Malaysia (World wild life, 2016)
...
The burning of timber emitting large quantities of smoke into the atmosphere is
negatively impacting the health of local populations
...



(World resources institute, 2014)
In terms of direct social impact, whilst many argue palm oil production has created an economic
boom in Indonesia, the high rate of rainforest destruction is causing land scarcity, raising land prices
and restricting plantation development limiting job opportunities (Obidzinski, K
...
2012)
...
‘Rep risk’ produced a report investigating Sinar Mas on its poor
business practices such as use of endangered timber species, impacts on protected areas and high
conservation value forests, illegal logging and the effects of its activities on indigenous communities,
contributing to climate change and the endangerment of animal species (Redprisk, 2012)
...
Further evidence can be found to support this when
looking at its involvement with the ‘Roundtable on sustainable palm oil’
...
Sinar Mas
has been accused of using green wash techniques and not following agreed-upon practices, thus
exercising social inequity
...

A report into ‘Illegal Forest Clearance and RSPO greenwash’ found Sinar mas was ‘making

commitments to enviromental and social standards which it then fails to adhere to (Sulistanto, G
...
Sinar Mas can be seen as an example that is concerned about having an ethical company
image, whilst not wishing to actually wishing to engage in ethical practices at the expense of short
term profits
...
Due, subsequently, to consumer pressure and concerns that affiliation with Sinar mas would
negatively impact business profits
...
It is a facility in Denmark designed to convert the ocean’s kinetic
energy from waves into electricity
...
The advantage of this method of energy
production is that it is constant, not diminishing resources of the earth, and due to being in the
ocean, is not unsightly or taking up land space
...
Otherwise, as
previously explained, the resources of the Earth will eventually run out and force the hand of
businesses into a transformational change which may be too late
...
He
explains that a way of addressing product demand, and therefore, potential overproduction and
overconsumption is to reverse the way in which demand is calculated
...
In this example, instead of
over-producing oil and having reserves that are seemingly for monetary value than for true demand,
the production of oil is, instead, based on what percentage that is truly sustainable
...









Recommendation 2


Actively invest into sustainable development practices
...
By
becoming an activist to social equity, you would not only pre-empt any potential problems with
future compliance but also portray a positive image to consumers; which will have a positive knock
on effect to business
...

Whilst the production of Palm oil does come with sustainability issues, it is not a lost cause
...
Boots are also working
to introduce products made with ‘Certified Sustainable Palm Oil’ (http://www
...
com/corporate_social_responsibility/marketplace/sustainable-supply-chains
...


They

also

apply their own social audits across the board to ensure they are maintaining high standards
...
Whilst it is in a
company’s interest to actively contribute to these factors for business and moral reasons, if they
chose not too, implementing stronger legislation all palm oil producers will have to comply with is an
option
...
K
...
2014)
...
Through the use of tax and financial incentives,
governments can make it in a company’s financial interest to act in a globally conscious manner
ensuring ethical production occurs and increasing social equity
...
By being seen as an industry leader the
company scope can be used to introduce positive changes, not abuse its position and try to exploit
more vulnerable countries heavily reliant on investment from transnational co-operations
...
As a group, we came up with the idea of a carbon capture system designed to utilise and
reduce pollution of the pre-existing air conditioning unit
...
The carbon collected was designed to be stored and used
in a multipurpose format to be converted into heating and electricity to reduce pollution, and overall
business costs simultaneously
...
Technology which has already been created allows for our idea to build on top of the item,
the “carbon converter” which is currently used in the industrial industry
...

Instantly, health advantages arise from breathing air without carbon, major illnesses have been
linked with the air pollution such as “…cancer, asthma, stroke and heart disease, diabetes, obesity,
changes linked to dementia
...
With such alarming conditions that can be
caused by carbon in the air it is important companies try to improve their carbon footprint
...

A potential disadvantage that arises from the Carbon Converter is the product’s initial outlay
...
The benefit of the cost reduction will come into account
in the long term as costs on heating and electricity will be saved, whilst also providing an intangible
and social benefit of giving the image of a company that takes note and pride in their environmental
activities, thus utilising the notion of the triple bottom line
...
Dunphy, D & Griffiths, A
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Organizational Change for Corporate Sustainability
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London: Routledge
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(2013)
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Oxford: Oxford University Press
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Some People Are Like the Old Prospector's Mule
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CareWithoutCarbon
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Breathe more easily – air pollution and health
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org/air-pollution-and-health/
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(2010)
...
www
...
com
...
theguardian
...
[Accessed 12/05/16]
Clark, D
...
Which fossil fuel companies are most responsible for climate change? –
interactive
...
theguardian
...
[Accessed 10/05/16]
EcoWatch
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Bankruptcy Filing Shows Arch Coal Funded Climate Denial Group
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com/2016/03/03/arch-coal-fund-climate-denial/
...
(2002)
...
S
...
Washington: Government Printing Office
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(2016)
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Available:
https://www3
...
gov/climatechange/ghgemissions/gases/co2
...
[Accessed 14/05/16]
Goldenberg, S
...
Just 90 companies caused two-thirds of man-made global warming
emissions
...
theguardian
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[Accessed 10/05/16]
House of Commons (2008)
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London: Stationary Office
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(2016)
...
Available:
http://www
...
com/2016/02/arch-coal-accused-of-funding-leading-climate-denial-litigator/#
...
(2015) World resources institute Top 10 Emitters
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wri
...
(2016)
...
Available: http://www
...
org/usa/arch-coals-otter-

creek-mine-proposal-is-officially-dead-keeping-over-2-billion-tons-of-carbon-pollution-in-the-ground/
...
(2014) Electric car grant extended to 2017 thanks to new funding (Available from;
http://www
...
co
...
(2016)
...
nasa
...
[Accessed
14/05/16]
Palm oil (2016) Say no to palm oil (Available from;
http://www
...
com/Whats_the_issue
...
(2016)
...
CNNMoney
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Available:
http://money
...
com/2016/05/10/news/companies/saudi-arabia-aramco-oil-ipo/
...
(2004)
...
USA: Rowman & Littlefield Publishers, Inc
...
(2009)
...
London: Routledge
...
& Warhurst, M
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Consumption? Our use of the world's natural resources
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foe
...
uk: https://www
...
co
...
pdf
...
(2009) “Illegal forest clearance and RSPO Greenwash” (Available from;
http://www
...
org
...
pdf)
Vidal, J
...
Air pollution rising at an 'alarming rate' in world's cities
...
theguardian
...
[Accessed 14/05/16]
World Wild Life Fund (2016) Endangered species threatened by unsustainable palm oil production
(Available from; https://www
...
org/stories/endangered-species-threatened-byunsustainable-palm-oil-production) [Accessed 11/05/16]





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