010 - Sustainability Flashcards
(21 cards)
Define sustainable management and its dimensions.
Sustainable management is the practice of managing organisations in a way that balances economic performance with social responsibility and environmental care. It includes:
* Responsibility (creating stakeholder value)
* Ethics (moral excellence)
* Sustainability (meeting present needs without compromising the future)
The concept is often referred to as the Triple Bottom Line.
What are the strategic requirements of sustainable management?
Three main requirements:
* Stakeholder Support
* Efficiency
* Market Edge
Each requirement aims to align sustainability with strategic and performance goals.
What does Stakeholder Support entail?
Building loyalty and trust with:
* Shareholders
* Debt-holders
* Employees
* Suppliers
* Customers
* Regulators
Examples include training programs for employees and eco-friendly products for customers.
What does Efficiency refer to in sustainable management?
Practices that reduce waste and cut costs while improving environmental outcomes, including:
* Waste and energy reduction
* Water use minimisation
* Workforce training
* Life-cycle analysis
These practices aim to internalise environmental costs.
How can sustainability drive innovation?
Sustainability can lead to:
* R&D and eco-innovation
* Improved brand reputation
* Supply chain improvements that attract eco-conscious consumers
This can open new markets and enhance competitiveness.
Describe the effectiveness of sustainability practices.
Sustainability practices should be:
* Strategically congruent with business goals
* Deep and genuine
* Mature and leading-edge
* Integrated into everyday operations
This ensures better results and alignment with stakeholder expectations.
What are the four levels of responsibility and ethics in business?
Four levels:
* Emerging Responsible
* Advanced Responsible
* Responsible and Ethical
* Irresponsible
These levels reflect varying degrees of commitment to sustainability and ethics.
Explain the three Ps of the triple bottom line.
The Triple Bottom Line consists of:
* People (Social Responsibility)
* Planet (Environmental Responsibility)
* Profit (Financial Performance)
This framework measures organisational performance across social, environmental, and financial dimensions.
What does the ‘People’ dimension of the TBL evaluate?
Evaluates how the organisation treats:
* Employees
* Suppliers
* Community
Focus areas include:
* Fair labour practices
* Workforce diversity
* Community contributions
It emphasizes social responsibility.
What does the ‘Planet’ dimension of the TBL measure?
Measures the organisation’s environmental impact, focusing on:
* Reducing pollution and emissions
* Minimising waste
* Resource efficiency
Long-term environmental stewardship is a key aspect.
What does the ‘Profit’ dimension of the TBL assess?
Assesses financial viability, focusing on:
* Revenue generation
* Cost management
* Economic value creation
This ensures a balanced approach to managing financial goals alongside social and environmental outcomes.
Describe the obstructionist strategy in Corporate Social Responsibility.
Focuses only on economic gain, disregarding legal, ethical, and discretionary responsibilities. May involve:
* Breaking the law
* Hiding unethical actions
Example: Westpac Bank’s violations of laws.
What characterizes a defensive strategy in Corporate Social Responsibility?
Meets economic and legal responsibilities but ignores ethical concerns. Acts only within minimum legal standards.
Example: Companies like ExxonMobil Australia minimizing tax legally despite large revenues.
What does an accommodative strategy in Corporate Social Responsibility involve?
Meets economic, legal, and ethical standards. Responds to stakeholder concerns and adjusts practices accordingly.
Example: Nike improving factory conditions after criticism.
Define a proactive strategy in Corporate Social Responsibility.
Exceeds economic, legal, and ethical duties by engaging in voluntary actions to improve society and the environment.
Example: Veja’s commitment to fair trade and sustainable sourcing.
What is the difference between a linear economy and a circular economy?
Linear Economy:
* Follows a ‘take, make, dispose’ model
* Results in waste and resource depletion
Circular Economy:
* Based on a closed-loop system
* Keeps resources in use as long as possible
Examples include practices like recycling and product-as-a-service models.
Identify the types of innovation involved in the innovation process.
Types of innovation:
* Product Innovation
* Process (Technology) Innovation
* Incremental Innovation
* Radical Innovation
* Competency-Enhancing Innovation
* Competency-Destroying Innovation
Each type represents different approaches to improving products, services, or processes.
Define sustainable HRM.
Sustainable HRM is the management of people that contributes to:
* Responsible business performance
* Triple bottom line value
* Moral excellence and stakeholder inclusion
It focuses on long-term impacts on employees, society, and the environment.
What are the four key areas of sustainable HRM?
Key areas include:
* Developing long-term resources
* Supporting organisational survival
* Building trustful relationships
* Sustaining social legitimacy
These areas aim to enhance sustainability through HR practices.
What processes are involved in the sustainable HRM Process?
Processes include:
* Recruitment
* Training and Development
* Performance Management
* Compensation and Benefits
* Employee Relations and Communications
These processes emphasize ethical practices and responsible business performance.
What role do HR leaders play in Sustainable HRM?
HR leaders should:
* Consider societal and environmental impacts
* Support business leadership in understanding HR risks
* Act as role models for ethical conduct
Their leadership is essential for integrating sustainability into HR practices.
