Question: Give an example of a company that has excelled both financially and sustainably (feel free to use one of the examples from the textbook, from the list of sources provided in this discussion forum, or from your own research). Is there really a conflict between delivering profit to shareholders and meeting the needs of other stakeholders?
Answer: As stated in our text, sustainability is associated with “economic (profit), environment (planet), and society (people), and “a truly sustainable business strategy should make social issues a priority” (Whitecotton et al., 2020, p. 177). Our text and readings frequently reference companies that have excelled in environmental sustainability, for example, Toyota and Starbucks. While environmental sustainability is a significant focus of companies across the world, and many of these companies see success as a result, it is important that the human aspect of sustainability is also focused on. By incorporating investments in “people” alongside continued investments in the environment, they can make a greater impact on sustainability and financial success.
There are many publicly traded companies that come to mind when thinking of sustainability and profitability, but a lesser-known, privately-held company that comes to mind is H-E-B, a privately owned grocery chain in Texas known for its philanthropic efforts in the local communities.
In a 2019 Retailer Preference Index, H-E-B has surpassed many larger known retailers such as Trader Joe’s, Walmart, Amazon, and Aldi, holding the number one spot (Dooley, 2020). Part of H-E-B’s financial success results from its focus on building relationships with the community and creating a sustainable environment for all. Through a multitude of community partnerships, since 2012, H-E-B has contributed “over $13 million to support over 500 environmental organizations in land and water conservation, habitat and coastal preservation, and community cleanups” (H-E-B Sustainability, n.d.).
Regarding the conflict between delivering profit to shareholders and meeting the needs of other stakeholders, if intelligent business decisions are made, and detailed attention is paid to the cost factors involved in a business’ sustainability efforts, one can succeed financially while remaining sustainable.
According to research, companies that have a high environmental and social focus “outperform the market in the medium (three to five years) and long (five to ten years) term” (Bonini & Swartz, 2014). Furthermore, with environmental sustainability becoming a global focus, companies must take advantage of this shift in the market to maintain relevancy and profitability.
What I need help on: Writing a 300 word lesson learned summary based on the Answer given to that question as well as what is overall learned from all the articles i’ve attached
– summarize what you learned from the readings that you didn’t know before
– summarize, compare and contrast the posts from other groups on that question (do not simply repeat what other groups said, but show how the discussion evolved)
– mention the key takeaways from that discussion forum (e.g., how did your thoughts change after this week discussing these topics? if applicable, what will you do differently as a manager related to this topic?)
Links/instructions:
Our textbook presents the theme of sustainability and Corporate Social Responsibility (CSR) in various chapters. This week in the course we will focus on this important topic to discuss innovative ways in which organizations are fulfilling their responsibilities to various stakeholders: not only shareholders, but also employees, customers, suppliers, regulators, competitors and society in general. The topics of Sustainability and Corporate Social Responsibility, together with Ethics, which is also addressed in several chapters of the textbook, form the three pillars of RESPONSIBLE MANAGEMENT.
To prepare for this discussion, use your group forum to decide who will read/ watch each resource below (each group member should be responsible for two resources so all resources are covered by at least one group member):
Boston College Center for Corporate Citizenship. (2010). How to read a corporate social responsibility report: A users guide. Harvard Kennedy School Initiative for Responsible Investment. https://iri.hks.harvard.edu/files/iri/files/how_to… Read chap. 5 carefully as it will help you answer question 3 about performance metrics related to sustainability/CSR.
Business Roundtable (2019). Statement on the purpose of a corporation. Business Roundtable. https://www.businessroundtable.org/business-roundt…
Fink, L. (2020). A fundamental reshaping of finance. BlackRock, Advisor Center. https://www.blackrock.com/us/financial-professiona…
Henderson, R. (2020, May 14). Reimagining capitalism. Harvard Business School. https://www.hbs.edu/about/video.aspx?v=1_hzrv6mqu
Rangan, K, Chase, L. & Karim, S. (2015). The truth about CSR. Harvard Business Review, 93 (1-2), 40-49. SEE LINK TO THIS ARTICLE IN E-RESERVES FROM LEFT NAVIGATION COLUMN IN SAKAI (or in the Files Directory link in Sakai left navigation column)
Sustainability Accounting Standards Board (2020). Perspectives & case studies. Sustainability Accounting Standards Board. https://www.sasb.org/company-use/corporate-perspec… CHOOSE ONE COMPANY FROM THIS PAGE TO READ THE CASE STUDY (e.g., Gap, Bloomberg, NRG, etc)
United Nations (2020). Sustainable development goals. United Nations Knowledge Platform. https://sustainabledevelopment.un.org/?menu=1300
World Economic Forum (2022). The Davos Agenda. World Economic Forum in Davos, Switzerland. WorldEconomicForumDavosAgenda SCROLL DOWN TO THE PICTURES AND LINKS FOLLOWING THE HEADING “EVENT HIGHLIGHTS” AND CHOOSE ONE TOPIC TO READ (e.g., about “3 ways to reinvent affordable housing” or “digital healthcare can be a catalyst for greater health equity”)
