What is sustainable development?
Examine a corporation or other organization that is transforming to more sustainable operations. Analyse ways the organization is reacting to stakeholder influences and how the policies and initiatives of this organization, as well as technologies that they employ, are affecting stakeholders internally, externally, and globally.
Sustainable development is a process where companies adopt a business practices which are beneficial to it is every stakeholder including the environment. Literal meaning of sustainable is to maintain a level (R, 2018). In the emerging era of economy, where many of the companies are incorporating globally on daily basis, it becomes necessary for the existing companies to protect the human and nature resources. Sustainable development in business is an approach where companies, manage it is every factors such as profits, human resources and environment (Sustainable Development Commission, 2018). Here this is important to now that sustainable development is not a one-time activity but the same is an ongoing process. It is generally adopted that an organization which works for the betterment of stakeholders along with for it is own profit; earn more in comparison to other employees.
Human and natural resources are limited on this planet, so it is advisable to a company to protect them in the course of their business. These days many of the companies are following the practice of sustainability development (Kirby, 2018). Interface, Inc. (herein after referred as “Interface”) is one out of such companies. This company is world’s largest carpet manufacture and the same has taken great steps in order to comply with sustainability development. Policies prepared by this company has included plans for betterment of society as well as environment as the same had believe that these factors has important aspects in the development process of business
Influences in the regard to this subject, are the factor which motivates an organization to lead towards sustainable development. These factors are majorly of two types one is external and another one is internal. External factors are those who are not part of the organization but an organization affect and get affected by two of such factors. In every organization, many of the stakeholders are involved. These can be the living as well as non-living factors. But stakeholders are those, who have some interest in organization’s business, in it is work culture and it is plans and policies (Landau, 2017). Interface has also been influenced by some of these kinds of factors while thinking about sustainable operations, which are discussed in detail as follow:
Sustainable Development in Business
Customers
Interface has number of customers. Customers are the main resource of revenue of a company. Customers effect an organization in many of the ways and manner (Drucker, 2018). For a company like Interface it was very necessary to maintain a level of it is customer satisfaction. As Interface is the largest manufacturer of carpet for business and residential purpose all over globe, it has a reputation and a moral obligation to provide a product of good quality. Customers these days becoming aware towards their nation and want to rely for their requirements only on those organizations, which do care of society and environment as well (Kokemuller, 2018). In case of Interface, there were other markets competitors and to provide better customer satisfaction it become necessary for interface to show it is product different from the other suppliers. This was the influence which customers of the Interface has put on it is policies due to which Interface has changes it is policies and include agenda of sustainable development in the same. As Interface is a manufacturing company, it is customers are traders and not the end uses mostly. So such business traders wanted this company to be work in a manner which is seems to be profitable for society as well. So that they can further easily sell out it is products. After the aforesaid study it may state that customers have influenced policies of Interface in a very strong manner and this was the reason why Interface has moved towards the sustainable operations.
Suppliers
As Interface is a manufacturing company, along with customers it has to deal with suppliers also. Suppliers are the person who provide raw material to manufactures for preparation of final material (Accounting tools, 2017). Suppliers these day are seem to be interested to deal with such organization which think about society and environment in the performance of their business. According to some government policies, it is require for suppliers to supply their product to only those manufacturers which works according to sustainable development approach. In the case of Interface, being the world’s largest manufacturer of carpets, it was suspected to use raw material in a wrongful manner. In the process of manufacturing, wastage is the main issue. Many of the tomes it has come to now that manufactures only focus on their customers and do not consider interest of suppliers. If a manufacturer waste so many resources during the manufacturing of final product, it create problems to suppliers also as they need to change their policies and production according to the manufacturer’s requirement (Martin, 2018). In this way, it may state that Suppliers were one of the main forces for establishment of sustainable operation by Interface.
Influence of External Factors on Sustainable Development Policies of Interface
Government Authorities
Government authorities works as the main factor in policy making of a company. When a company does well, these authorities become more aware about the working cultures and policies of the company (Faris, 2018). Interface is the largest manufacturer of carpet in the world; government has very quantitative interest in the same. For a leading organization like Interface, it was necessary to plan something which is in interest of the society and environment. As many of the people are dependent for many purposes to this company, there was a force of government authorities and legislations to Interface which motivated the same to develop a policy accordingly. Government authorities can never let an organization work, which does not behave ethically. In case of Interface, government was expecting the same to work in the best mode and in the best interest of the society, environment and it is all stakeholders. Further, government authorities and orders thereof are the factors for a company which the same cannot ignore. It may conclude that Interface has faced forces from government authorities and department for the implication of sustainable development policy (Vitols and Kluge, 2011). This was an external factor which adheres and influenced this company to adopt the sustainability operations.
Employees
Employee is that person, whose interest is directly attached to an organization. These days’ people want to get associated with those organizations which work in a responsible manner (Enisa, 2018). No person wants to be in an organization having a bad reputation. It cannot expect from an organization to have a sound reputation while misusing the environment. In interface, thousands of employees are employed who are dependent on Interface for their livelihood. In such scenario they wanted a surety from the company to run in a long term. This was one of the reasons for interface to prepare the policies containing sustainable development and related activities.
Further, stake of employees in the company enhance when they have company’s shares or stock options. As Interface is the largest carpet manufacturer of the world, it is employees are dependent so much on this company. Salary is not only factor for the employees of a company like Interface. In addition to this many of other factors such as career development and Job security also matters (Lewis, 2018). In Interface, it was necessary to retain old employees as they had their impact on the business processes, so interface has chosen to update itself by thinking about society and environment as the same understand the expectations and insecurity of employees.
Customers
Investors
A company depends on investors for the purpose of capital introduction. Investors have their great interest in the working, policies and decisions of a company. According to the performance of a company, investors decide their investment level in the same (Sun, 2018). When an investor, invest his/her money in a company, he/she wants a handsome amount as return. But, the same can only be possible when the company in which they have invested their money work well. If a question arises like that which company does well? The answer is simple as that a company which believes in overall and continuous development can only do well in long-term (Stoval, 2017). As Interface is a public company, many of the investors have invested their money into shares of this company. They expect the company to work for betterment of the society as well as they understand that that these two factors can affect company’s working. Further, although Interface is the largest carpet manufacturer of the world and doing well, yet the same is dependent on it is investor’s role of society and environment in or the working capital and related funds requirement. So, in this situation it may presume that investors were one of the lead forces for Interface, who motivates the same to follow the practices of sustainable development and environment protection.
Interface in order to maintain development at sustainable level has adopted the zero wastage policy. Being a manufacture company, waste was accruing in lot of quantity in this company. Such waste material was likely to be harmful for the environment. The most significant impact of this policy on global level is saving of nature resources. As Interface is world’s largest producer of carpets, it has to use natural resources such as water, land and air in huge quantity. By recycling the same, it has save the said resources at a good level. Further, this company has also motivating the other companies to follow the same practices. As Interface is not limited to a nation, instead it is the largest manufacturer of it is field; policies of the same affect the whole globe. (Jessan, 2018).
Mission of Zero wastage policy of Interface is to bring the level of wastage from it is producing activities to Zero level by year 2020. Company has saved $433 million due to adoption of waste elimination program till year 2010 (Roos, 2010). This Company is working as an idol for rest of the companies across the globe as they can observe the benefits of ethical uses of resources by looking at Interface.
Suppliers
Internet is a way to connect people globally. As Interface has it is business in more than one nation, it is not possible for this to update it is stakeholders with policies related to sustainable development without internet. Further, as discussed earlier, interface also has some external stakeholders in addition to internal one. In this situation, without internet it was not possible for this company to imply sustainable development policies. Business data are not static, they change on daily basis. Cost of raw material, price of the product of competitors and changes needed in the policies can only be observed through internet. In addition to this Interface also got new technology ad updations via internet and implied in it is business process.
It has been noted that internet and technology play very crucial role in the implication of sustainable development (Brown, 2017). With the help of internet and technology, Interface has come to know about the government policies, changes thereon and expectations of the same from this company. Further, this company is using technologies to check the effectiveness level of zero wastage policy. Interface uses the internet and other technologies such as web portal, e-mails, and various software in order to know it is stakeholder’s expectations. Without technology, this company cannot continue it is sustainable business operations.
After the required study of influences and external-internal forces of Interface, it is also necessary to know that what are the ways in which Interface is reacting to it is a stakeholder. Interface has not ignored the interest and expectations of it are stakeholders and implied sustainable business practices. Here this is to include that Interface has prepared zero wastage policy in which it is expected to have zero wastage after a manufacturing cycle. Further, vision of it is founder Mr. Ray Anderson was that they would stop using virgin nylon yarn in the process of stitching the carpets (Fishman, 2018). In the implication of this policy, Interface has adopted internet and other technologies such as systems and software, upgraded machinery and internet. The studies internal and external forces influence Interface and cause if this this company moved towards sustainable business operations. The policies framed and decisions taken by Interface is effecting it is stakeholders. Whether the same is government austerities or investors or any other stakeholder, they are seems to be satisfied with the working culture of this company.
Conclusion
To conclude the topic stipulated in aforesaid discussion it may state that sustainable development is becoming a requirement of every company these days. If a company wants to do well in long term and want to retain it is reputation and faith in public, the same has to ensure about social and environmental development. Interface is the largest producer of carpet for residential and commercial purpose across the global and the same has prepared and developed policies related to sustainability development. There were some external and internal factors which forced this company to move towards sustainable operations. To ensure the development at a sustainable level, this company has adopted a policy named “Zero Wastage”.
This policy has contained the possibilities and manner to re-use natural resources, which has once used in manufacturing process an also ensures to bring the wastage level of resources in a production process to zero level by the year 2020. By this way waste cost of this company has reduced by 40 percent till year 2010. Further, actions taken by the company in order to assure sustainable development has influences it is stakeholders in a positive manner. It has been noted that many of the analyst has issued their reports mentioning positive aspects of Interface. It has put an affirmative impact in the views of it is stakeholders
References
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