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MGMT20134 Business Ethcis And Sustainability

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MGMT20134 Business Ethcis And Sustainability

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Course Code: MGMT20134
University: Central Queensland University

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Country: Australia


This assignment will address the following main topics:
You need to answer the questions below by researching an organization in an industry of your choice.
1: Change Management Practices and Sustainability Strategies
Your business should be one that has not focused on sustainability to date, for example their company website has no reference to sustainability initiatives.  Therefore, there is a good opportunity for you to apply your chosen sustainability management system to your chosen business.
2: Corporate Governance/Leadership and Sustainability
You need to provide an in-depth evaluation of the role of corporate governance/leadership and change management practices to achieve sustainability outcomes in your chosen business from question 1


Sustainability is one of the major issues being originated in the recent time. This is due to the reason that current trend of rapid exploitation of natural resources is rapidly depleting the chances for future consumption. Thus, it is important to have effective sustainability management system to enhance the sustainability in the business process (Strezov, Evans & Evans, 2017). There are different types of sustainability management systems are available and they are having different utilities. In the following sections, implementation of sustainability management system will be discussed on Kreem café. It is a small size café in New Zealand and thus they do not have initiated any sustainability management systems.
Sustainability management system
Sustainability management system is being initiated by the business organizations in order to have sustainable business process in the long term. In addition, initiation of the sustainability management system also helps the business organizations in reducing the cost of operation by having more savings and less wastage (Johnson, 2015). It is recommended that Kreem café should initiate The Natural Step in their business process. This is due to the reason that this model has given an overall view about what should be done by the organizations in order to be sustainable. Kreem café will find it easier to align their u requirements according to the model.
The natural Step is having major four elements. The firsts step states that Kreem café should not exploit natural resources especially the non-renewable natural resources. It is recommended that Kreem café should use more renewable sources for their energy purposes (Seuring & Gold, 2013). The next step states that Kreem café should also follow sustainability in their production process by producing according to the market need. Thus, they should not have more surplus and wastes in their production process. The next step states that the natural resources to be used should be used in more sustainable manner. This includes using the non-renewable sources of energy and resources such as non-vegetarian products in more sustainable manner. The last step states that Kreem café should also concentrate on their organizational efficiency and technological development that will help them in extracting the maximum benefits from the available resources (Johnson & Schaltegger, 2016).
Thus, it can be concluded that the major advantage to be gained by Kreem café from implementing The Natural Step model is effectively aligning their business requirement with that of the sustainability. This is due to the reason that The Natural Step has given an overview rather being specific (Helbing, 2013). This will help Kreem café to modify according to their requirements. In addition, this model will also help Kreem café in considering all the relevant aspects such as resources and organizational capability. Thus, Kreem café will be sustainable from different aspects. Kreem café will have holistic sustainability with the help of this model.
Possible Impacts of The Natural Step
There will be number of impacts of this model on five pillars of sustainability. For instance, The Natural Step will have somewhat negative economic impact in the short term and positive impact in long term. This is due to the reason that initiation of sustainable practices will cause added cost for Kreem café while in the long term, it will save fund for them by reducing surplus and wastages (Barnett & Morse, 2013). In terms of environment, the impact will be positive due to the reason that exploitation of the resources will get reduced by having more sustainable practices. In terms of political, the impact will be positive due to the reason that Kreem café will face fewer regulations by having more sustainable practices. In terms of cultural, the impact may be negative due to the reason that initiation of the sustainable practices may generate resistance from the side of the involved stakeholders. In terms of social factors, impact will be positive due to the reason that society will be benefited from the conservation of the natural resources.
Implementation of the change process 
According to the Kotter’s change model, there are majorly 8 steps that should be considered in initiating change process. Thus, in order to implement sustainability practices in the business process, Kotter model states that Kreem café should create the requirement and urgency among the employees (Pollack & Pollack, 2015). They should be made aware about the importance of adopting sustainable process over their existing process. In addition, it is stated that Kreem café should also create a vision or target for their involved stakeholders that will be followed in the entire change process. Employees should also be communicated about the advantages to be gained from the initiation of the change process of adopting sustainable business practices. This will reduce the probability of resistance from the side of the employees. Lastly, it is also important for Kreem café to evaluate the effectiveness of the change process in the long term.
On the other hand, Kubler-Ross model of change states that employees go through mainly five stages in accepting the change. Thus it is important for Kreem café to determine these stages of the employees (Smaldone & Uzzo, 2013). It should also be noted by the management of Kreem café that change process should be implemented based on these mental stages of the employees. This will ensure that change process will be sound and effective.
Merits and demerits of change management process 
Both the Kotter and Kubler-Ross model stated specific stages that will help Kreem café to break down the entire process in fewer parts. Steps stated on both the change process are easy and simple to implement. Thus Kreem café will be more effective in implementing these steps. Both these models have considered the mental state of the stakeholders and thus the probability of emergence of resistance is less for Kreem café. On the other hand, the major disadvantage is mismatch between theoretical and practical situations. Thus, Kreem café will find it difficult to match the theories stated with their actual situation.
Ways to overcome resistance to the change from the employees
Implementation of the change is a very important factor for the café as it will help them to become more sustainable. However, there will be many resistances to the change from the employees of the organisation. This is because a sudden change in the organisation can be very challenging and scary for the people who work there (Battilana & Casciaro, 2013). Change would mean that the employees would have to bring change in their habits as well. There might be many people who might not hold the attitude to accept the change and might give negative behaviour if the change is implemented. The manager would have to make the employees accept the change before it is implemented in the organisation, as the acceptance would make the change successful and productive. The employees would have to get out of their comfort zone and change their view about the change for them to accept it and work with it. Therefore, the manger would have to follows certain strategies so that they are able to overcome the resistance and the negative attitude of the employees towards the change. Firstly, the manager would have to communicate with the staff regarding the importance and the benefits of the change (Lozano, 2013). If the employees do not know the advantages of the change, then it will be difficult for them to accept it. The right reasons for the change have to be communicated with the staff so that they understand the importance for their participation and acceptance of the change. Secondly, the manger would have to make sure that the employees understand their own benefits through the change and not just of the café. If the staffs know that the change will benefit them as well, then they might give positive reaction towards the implementation of the sustainable change. Lastly, the manager could provide data to the employees which will show them the profit that the café might get if the sustainable change is implemented. Even though resistance is an emotional factor, some logical explanation of the change will help the students to see the advantages of the change towards the sustainability of the system (McKay, Kuntz & Näswall, 2013). Even though there are many other ways that the resistance can be overcome, communication is the most important factor which can change the views of the staff.        
Importance of corporate governance/leadership of Kreem Cafe to The Natural Step
Corporate governance is important for the sustainability of any organisation not only for the prosperity of the company but also for the responsibility that the company has towards the people of the organisation and the shareholders. With the development of the market there are various practices which has come into light which makes it necessary for every organisation to focus on the sustainable management systems along with the integration of corporate governance (Crane & Matten, 2016). Similarly corporate governance and leadership of Kreem Cafe is important to the sustainability management system, the natural step. This is due to the following reasons. Firstly, corporate governance will help the café to increase their productivity through the sustainable measure of the management system. The proper focus of corporate governance on the café will help them to produce more products and also give them the ability to sustain the needs of the customers. Secondly, corporate governance along with the sustainability management system will be able to make cost effective changes within the café (Mason & Simmons, 2014). Thirdly, corporate governance and leadership will help in the proper management of the sustainable management and thereby provide economic benefits to the café and provide to its development. Lastly, the sustainability management system if aligned with corporate governance of Kreeme Café will help them to manage their environmental strategies and adopt environmental practices for the business (Baumgartner, 2014).  
Sustainability-Stakeholder challenge barrier of Kreem Café
Stakeholders are the most important part of any organisation. They are the people who are directly or indirectly affected by the operations, objectives and policies of an organisation. They hold a portion of an organisation and have monetary participation in the organisation. Stakeholders are of two types such as internal and external (Lawrence & Weber, 2014). The three main stakeholders of Kreem Café are the customers, suppliers and the owners. These three groups of people are the ones who will be the most affected in case any issues arise within the café or even if something good happens to it. There can be many challenges or barriers that the café can face during the implantation of their sustainability management system. However, one of the challenges that could become a barrier in the implementation of the sustainable management system is the lack of cost effectiveness. This challenge could be a big hindrance for the three stakeholders of Kreem Café and hence could create issues during the implementation of the system. For the customers the new change or implementation system could be an issue as it might increase the cost of the products that they are purchasing. Due to the changes that would occur in the café, the management might have to raise the price of the products that they are selling which will create and impact on the customers and this might create dissatisfaction among them (Epstein, 2018). The suppliers would also be impacted due to the change and might be a barrier for them, as the management might try to purchase the raw materials for lower cost due to the rise in their internal cost because of the change. If the management is not able to convince the existing suppliers to lower their cost, then they will search for other suppliers who can give them the materials at their desired cost. The owners are the ones who are the most affected due to the barrier of the change as they have to bear the cost of the change if they are not able to incur it from the other aspects of the business. The sustainability management system, if implemented in a proper way will require a huge expense on the part of the café for it to be effective in the later stages (Heinrichs, 2013). Every system requires a maintenance after the implementation stage and the process would require a moderate budget in the initial stage. Therefore, even though the system would be a sustainable process, it could become a challenge during its implementation.
Ways to resolve sustainability-stakeholder challenge barrier
The challenge has to be overcome by the management of the café since the effect of the challenge on the stakeholders of the café could create issues for them. There could be two ways to overcome the challenge of the high cost that would be required for the sustainable change. The two ways are sustainable sponsorship and crowd funding. Sustainable sponsorship means the different opportunities that would be determined by the café to sponsor their sustainable management system (Li, Wu & Ding, 2013). This sponsorship can be derived from different organisations who would be interested in funding the café regarding the change that they wish to implement. The sponsor would only invest if they see any benefit on their part. Therefore, the café owners would have to explain to the sponsors about the benefits that they might gain from the investment. The second way to overcome this challenge is crowd funding which means to gather the fund through the organisation of events where important people or delegates will be invited and they will give funds for the change (Belleflamme, Lambert & Schwienbacher, 2014). The café would have to organize events for a cause which will attract the attention of the delegates and they will be willing to pay for the change. These two types of solutions would be helpful in overcoming the challenge as the stakeholders would not be impacted if the change is implemented within the café.
Barnett, H. J., & Morse, C. (2013). Scarcity and growth: The economics of natural resource availability. RFF Press.
Battilana, J., & Casciaro, T. (2013). Overcoming resistance to organizational change: Strong ties and affective cooptation. Management Science, 59(4), 819-836.
Baumgartner, R. J. (2014). Managing corporate sustainability and CSR: A conceptual framework combining values, strategies and instruments contributing to sustainable development. Corporate Social Responsibility and Environmental Management, 21(5), 258-271.
Belleflamme, P., Lambert, T., & Schwienbacher, A. (2014). Crowdfunding: Tapping the right crowd. Journal of business venturing, 29(5), 585-609.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
Heinrichs, H. (2013). Sharing economy: a potential new pathway to sustainability. GAIA-Ecological Perspectives for Science and Society, 22(4), 228-231.
Helbing, D. (2013). Economics 2.0: The natural step towards a self-regulating, participatory market society. Evolutionary and Institutional Economics Review, 10(1), 3-41.
Johnson, M. P. (2015). Sustainability management and small and medium?sized enterprises: Managers’ awareness and implementation of innovative tools. Corporate Social Responsibility and Environmental Management, 22(5), 271-285.
Johnson, M. P., & Schaltegger, S. (2016). Two decades of sustainability management tools for SMEs: how far have we come?. Journal of Small Business Management, 54(2), 481-505.
Lawrence, A. T., & Weber, J. (2014). Business and society: Stakeholders, ethics, public policy. Tata McGraw-Hill Education.
Lii, Y. S., Wu, K. W., & Ding, M. C. (2013). Doing good does good? Sustainable marketing of CSR and consumer evaluations. Corporate social responsibility and environmental management, 20(1), 15-28.
Lozano, R. (2013). Are companies planning their organisational changes for corporate sustainability? An analysis of three case studies on resistance to change and their strategies to overcome it. Corporate Social Responsibility and Environmental Management, 20(5), 275-295.
Mason, C., & Simmons, J. (2014). Embedding corporate social responsibility in corporate governance: A stakeholder systems approach. Journal of Business Ethics, 119(1), 77-86.
McKay, K., Kuntz, J. R., & Näswall, K. (2013). The effect of affective commitment, communication and participation on resistance to change: The role of change readiness. New Zealand Journal of Psychology (Online), 42(2), 29.
Pollack, J., & Pollack, R. (2015). Using Kotter’s eight stage process to manage an organisational change program: Presentation and practice. Systemic Practice and Action Research, 28(1), 51-66.
Seuring, S., & Gold, S. (2013). Sustainability management beyond corporate boundaries: from stakeholders to performance. Journal of Cleaner Production, 56, 1-6.
Smaldone, M. C., & Uzzo, R. G. (2013). The Kubler-Ross model, physician distress, and performance reporting. Nature Reviews Urology, 10(7), 425.
Strezov, V., Evans, A., & Evans, T. J. (2017). Assessment of the economic, social and environmental dimensions of the indicators for sustainable development. Sustainable Development, 25(3), 242-253.

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