Question

The LG Electronics is classified as one of the most sustainable companies in the world. Two leading research organizations in the world stated so: The Canadian Corporate Knights Magazine, mentioned in its 2015 annual list of the 100 most sustainable companies in the world; and the Swiss Agency RobecoSAM, in its annual sustainability report of 2015. The Canadian Corporate Knights Magazine lists the sustainability companies according to a set of sustainability criteria in specific industrial sectors, by focusing on the gold standard in corporate sustainability analysis and assessment. Accordingly, LG was chosen and awarded as the best company within home stuff and products category. So LG based on this list was able to reach a good rating of 51 for the year 2015, after being ranked 82 in the year 2014. The Canadian Corporate Knights Magazine selected the companies according to 12 quantitative indicators of performance and sustainability, including energy and water consumption in the companies’ operations, innovation, operational excellence, product leadership, employee, tax strategies, etc. With regards to the Swiss Agency RobecoSAM sustainability report of 2015, LG has been honored for its golden awards of the personal and electronic entertainment class. The Swiss Agency RobecoSAM working in collaboration with S&P index (Dow Jones) classified LG as one of the few companies that are leaders in sustainability and introduce changes in the field of sustainability in 2015. In addition, the Swiss Agency RobecoSAM uses the evaluation criteria for best sustainable companies that include financial aspects, innovation, supply-chain management, reduction of pollution, energy-efficient products, recycling, as well as interaction and engagement with stakeholders. The Executive Vice President of LG Electronics commented on this issue by saying: “We in LG believe that companies with the ability to think about the future and be proactive, adapt positively. We also believe that LG has the absolute need to provide a positive impression in preserving the environment as much as possible in continuation of our work to develop our products for our consumers and communities. We are proud of our praise and appreciation. " Questions: 1. Describe the main areas of sustainability for LG for both environmental, social and economic sustainability. 2. Give examples of the three sustainability areas for LG. 3. Explain how LG supports sustainability in these three areas. 4. Describe the main considerations related to the sustainability areas LG relied upon.

Answer 1

1 Ans:- The main areas of sustainability for LG are:-

a). Environmental sustainability through take back, recycling and green supply chain management. LG is also involved in hazardous substance management to avoid any environmental degradation.

b). Social sustainabiliy at LG is achieved by providing community services, providing educational services to less priviledge children, shelter to homeless people etc.

c). Economic sustainability at LG is achieved by following global labour policy, supplier code of conduct and producing green products.

2 Ans:- The three sustainability areas for LG are environmental, social and economical.

3 Ans:- LG supports sustainability in these 3 areas through its wide network, product development, commitment towards environment, commitment towards society and ability to follow green technology.

4 Ans:- LG relied mainly on following sustainablity areas:-

a) Environmental sustainability

b) Social sustainability

c) Economic sustainability

d) Customer sustainability

e) partner sustainability

f) Employee sustainability

So overall the company plans to achieve holistic sustainability in every aspect of business so that it can contribute to its growth and benefit to consumers.