Question 1: How should corporations address shareholder challenges to sustainability practices that might reduce current profitability?...

Question 1: How should corporations address shareholder challenges to sustainability practices that might reduce current profitability?

Question 2: Is it “appropriate” to include sustainability goals and objectives in to operational and financial business strategic plans?

Question 3: How can businesses respond to consumer demands for more sustainable business operations and management practices and remain competitive in their product markets?

Expert Solution

1.

Corporations should address shareholder challenges to sustainability practices by conveying the following to the shareholders:

Companies that hamper the environment in any way can no longer hide or save themselves from the litigations that ensue. With stringent regulations and accountability, a company cannot save itself after damaging the environment.

Sustainability is a mega-trend and drives business strategy. It is also becoming a competitive advantage for several businesses. There are certain companies that are having comprehensive commitments to sustainability.

2.

Yes, it is appropriate to include sustainability goals in the company’s operational and economic strategy. Integrating sustainability goals with operational and financial objectives aids the business to achieve success in the long run. An example of such a strategic sustainability goal is:

Converting traditional business projects to green plants of bio-based products.

Operational plan: installation of green refinery of capacity of 500 kilo ton until end of 2021

Financial plan: Investments from 2018-21 equal to approximately USD 300 million

3.

Businesses can establish a formal environment protection plan and set specific, measurable, time-specific goals.
Businesses can reduce emission of hazardous substances into the environment as far as the technology allows.
Businesses can make 3Rs – Reduce, Reuse, Recycle the guiding principles.
They can integrate environmental regulations in business planning including R&D, new product development.

keosha answered 10 months ago

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