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MMH733 Ethics For Managers
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MMH733 Ethics For Managers
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Course Code: MMH733
University: Deakin Business School
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Country: Australia
Questions:
Part A: Sustainability analysis of an FMCG company
Identify a Fast-Moving Consumer Goods (FMCG) company of your own choice and add it to the Assignment 2 Company Selection area on Cloud Deakin (note that your choice must be different to those already listed). You may wish to consider Part B of the assignment in making your selection in order to maximise the future potential of your work.
Collect information about the positive and negative impact of this company from publicly available documents (e.g.: sustainability reports, company reports, ASX or ABS reports, media coverage, and any other credible source). Identify the Sustainable Development Goals (SDGs) that are relevant to this company. You may consider using the following as a resource:
Your report should address the following:
The major challenges, relating to the implementation of SDGs, facing the company. You are expected to focus briefly on the following issues:
What are the current sustainability foci of the company?
Explain what factors are driving the company to manage sustainable development more effectively.
Are SDGs currently being used by the company (implicitly or explicitly) in planning and reporting?
What three (3) SDGs are most relevant to the company and why?
Propose and justify innovative, viable strategies for this company in order to meaningfully contribute toward the three (3) SDGs. What would be appropriate targets and/or indicators to evaluate these strategies?
Part B: SDG Work Integrated Learning (WIL) Placement Application
You have decided to apply for a role as an SDG consultant as part of your Work Integrated Learning (WIL) placement. You are to prepare an application letter, outlining your knowledge of and capacity to manage in a sustainable, socially responsible and ethical manner.
Use the FMCG company you researched in Part A of this assessment, as your potential employer.
In your application letter, you will need to explicitly articulate your knowledge and capacity to manage in a sustainable, socially responsible, and ethical manner, as the key selection criteria for the WIL Placement.
Explain how you believe a WIL opportunity as an SDG consultant in the company will further develop your capacity to manage ethically.
Answers:
Introduction
The sustainable development goals are also called the global goals. Such goals were set primarily by the United Nations with the aim of protecting the planet, an end to poverty and thus ensure there are peace and joy to all the individuals globally. There are about seventeen sustainable goals which were set. However, most of the goals are interconnected since they seek to focus on the success of one will. This report aims at providing information on the three relevant sustainability development goals of Bajaj Hindusta Ltd towards the common goals of the United Nations Development Program. The key relevant goals are economic growth, industrial development, and energy.
Background Information of the Company
Bajaj Hindustan limited
Bajaj Hindustan Ltd is a sugar-based company located in Mumbai, India. It forms part and parcel of the Baja Group. According to the statistics recently released, it is the leading ethanol and sugar manufacturing company. There are about fourteen sugar plants in the company, and they are located in the northern part of India, and each of the plants has a crushing capacity of 136000 tonnes crushed per day. The company is also considered to be the key founder of fuel ethanol program, and this has, therefore, enabled it to produce a million litres of ethanol per annum. The company has set certain sustainable development goals which are aimed at eradicating poverty and hence ensure that all the individuals enjoy prosperity and peace.
The key sustainable goals of the company primarily entail economic growth, environmental protection, energy and industrial development. The main reason for the establishment of the sustainable development goals by the company is to offer a holistic framework to address some of the critical challenges affecting India. The stakeholders of Bajaj Hindustan Ltd are all expected to address the environmental, social and economic dimensions of the sustainable development, and this is done in a balanced way. Some of the sustainable development goals of Bajaj Hindusta include even though they are not very relevant to the company.
1; Environmental Protection
The goal aims to address all the primary techniques of environmental protection and conservation to help protect the wildlife and the existing plants. The company also calls for research aimed at environmental conservation and protection.
2: Economic Growth
The economic growth sustainable development aims to ensure that the real output has increased over time and this is done over the future generations. Such a goal will be achieved by the provision of a variety of factors of production which stimulates economic growth. Such factors of production include capital, labor, land and natural resources.
3: Energy
The energy goal aims at ensuring that access to energy is affordable, sustainable and reliable for all the citizens of India. Such a goal will open new opportunities for the youth, men, women, and children for better healthcare and education.
4: Industrial Development
The industrial development sustainable development goal will be achieved through the industrialization of the nation through the creation of government revenue, employment, manufacturing output and industries. The company is also focusing on the execution of control mechanisms and environmental regulations to help in the attainment of the industrialization process.
Challenges in Implementing the Sustainable Development Goals
There are a variety of challenges which the company faces in its quest to execute the sustainable development goals. The critical challenges include;
Competing Interests
The three goals each are competing to be achieved by the company, and this has resulted in the creation of a conflict of interest among the sustainable development goals (Schmidt, Gostin, and Emanuel, 2015 p. 930). Also, the various stakeholders allied to the goals have varying interests which they want to be achieved. For instance, the stakeholders under the environmental protection have resorted to certain measures aimed at conserving the environment while those of the economic growth are seeking for the establishment of industries some of which emit poisonous gases to create employment opportunities.
Measuring of Progress
According to Schmidt et al. (2015 p. 930), there are no available data which are accurate and reliable to measure the progress made towards the attainment of the objectives. Additionally, there has been the interference by the government through control, and this has also affected the ensuring of progress.
Defining Indicators
In the reports which were released by the company on sustainable development, it showed that there are no relevant indicators to aid in measuring of the outcomes of the goals and this has been attributed to non-quality of educated and skilled specialists in the company (Gupta, and Vegelin, 2016 p. 440). The absence of defining indicators for determining the outcomes of the set goals has therefore affected the execution of actions to achieve the goals.
Ownership and Monitoring
Ownership and monitoring play a significant challenge towards the attainment of the sustainable development goals, and this is due to the inadequate team to coordinate and control the rolled out plans for this project. It, therefore, means that all the employees in the organization will focus on the goals instead of the key objectives resulting in conflicts of interests.
Financing of the Sustainable Development Goals
It has been estimated that the cost of enforcement of the sustainable development goals will cost about $6 billion. However, based on the current financial reports of the company, there is likely to be a financial gap (Gupta, and Vegelin, 2016 p. 440). Despite a huge economic growth within the nation, there are still chances that the funding will not be sufficient. Also, the revenues and other means of raising capital when consolidated, it is still not enough leaving the company with financial constraints to aid in attaining the sustainable development goals.
Factors Driving the Company in Management of Sustainable Development Goals
There are a variety of essential factors which have aided in the management of sustainable development goals effectively. Some of the factors entail the following as is discussed below;
Internal Factors
The strategies aimed at attaining a sustainable development goal often needs a supportive environment, and such an environment has been created by the company. For instance, the supportive environment entails supportive internal infrastructures, policies, and available resources to aid in applying actions towards the achievement of the sustainable development goals (Vezzoli et al.2015 p. 10). The policies of the organization are such that they have given a clear direction and commitments to the goals.
External Factors
The key external factors such as favorable laws and regulations and the market trends form the essential drivers of the effective efforts towards the sustainable development goals. For instance, Bajaj Hindusta Ltd produces sugar and ethanol which have in the past been meeting the various needs and demands of the market in India and even globally (Griggs et al.2014 p. 4). The various market and cost factors form the key elements of sustainable product development by the company and such have improved the consumers’ view and the marketability of the company’s product. Such a perception by the customers has increased the efforts towards the attainment of the sustainable development goals.
Management Attitudes
Day (2016 p. 100), argues that the attitude of the management is a contributing factor towards the success of the implementation of the sustainable development goals. The leaders of the company have a well set of guiding principles including shared values which are the motivating factors of the junior employees towards the attainment of the sustainable development goals set. Further, the perceptions by the management of corporate social sustainability have been positive, and this has resulted in big efforts towards the attainment of the goals.
Risk Management System
The company has established a risk management system which is typically used in the identification of a variety of risks including the techniques for managing them. Generally, there are certain risks which will is likely to occur during the monitoring and implementation process of the sustainable development goals (Acharya et al.2017 p. 2). Such risks may entail, financial risks among others. The existence of a risk management system has aided in the management and hence the proper implementation of the sustainable development goals set by the firm.
Use of Sustainable Development Goals Explicitly by the Company
Bajaj Hindusta Ltd uses the sustainable development goals explicitly in the planning and reporting of every financial year. For instance, at the beginning of the financial years, the sustainable development goals are also included among the key objectives for that financial year. The estimate budgets set aside for the execution of the goals are specifically stated and money set aside for them (Hajer et al.2015 p. 1660). Also, at the end of the year, there is usually an assessment of whether the set goals of the sustainable development goals have been met as was planned. A report is provided outlining the steps which have been reached so far. It can, therefore, be concluded that the company typically uses the sustainable development goals explicitly in the planning and reporting and this is done at every particular financial year.
Relevant Sustainable Development Goals to the Company
There are a variety of sustainable goals which are relevant to Bajaj Hindusta, and they include, energy, industrial development, and economic growth. They are as explained below;
Energy
The energy goal aims at ensuring that access to energy is affordable, sustainable and reliable for all the citizens of India (Waage et al.2015 p. 252). Such a goal will open new opportunities for the youth, men, women, and children for better healthcare and education.
Industrial Development
According to Lu et al. (2015 p. 433), the industrial development sustainable development goal will be achieved through the industrialization of the nation through the creation of government revenue, employment, manufacturing output, and industries. The company is also focusing on the execution of control mechanisms and environmental regulations to help in the attainment of the industrialization process.
Economic Growth
The economic growth sustainable development aims to ensure that the real output has increased over time and this is done over the future generations (Osborn, Cutter, and Ullah, 2015 p. 10). Such a goal will be achieved by the provision of a variety of factors of production which stimulates economic growth. Such factors of production include capital, labor, land and natural resources.
Why the Sustainable Goals are Relevant to the Company
The goal of energy, for instance, is of significance to the company since it aims at promoting energy efficiency. Such an energy efficiency will help to ensure that access to energy is sustainable, affordable and reliable for all the individuals in the nation including the people around the globe (Liu et al.2016 p. 3030). Additionally, the goal of industrial development is also relevant to the company since such a goal will help in the development of a quality, resilient, reliable and sustainable infrastructure and industries. With the developed industries, a variety of benefits will be generated such as employment creation and rise in economic growth among others. There has been a lot of scientific research by the company with aims at improving the existing industries (Hák, Janoušková, and Moldan, 2016 p. 570). On the other hand, the economic growth sustainable development goal is relevant to Bajaj Hindusta since it aims at attaining the highest levels of productivity through technological innovation. It also has the target of attaining productive and full employment and hence provide decent work for all that is both men and women. The other relevance of the goal is that it will enable the company to achieve the objective of ensuring that there are inclusivity and sustainable economic growth in the nation.
Proposed Strategies towards the Sustainable Development Goals
Avail More Resources
According to the statistics which was released recently, it indicated that India as a nation is still lagging behind in terms of infrastructure development and this has therefore contributed widely to low industrial development. Also, the basic infrastructure needs should be considered since they affect a variety of basic services for the public (Vanolo, 2014 p. 890). Such services entail healthcare and educational attainment. Bajaj Hindusta Ltd should, therefore, avail more of its financial resources towards the sustainable goal of industrial development. The resources should be on a large scale since it is estimated that about $2 trillion will be required to achieve such a goal.
Shift to Manufacturing Industry
The company should also shift its focus to the manufacturing sector, and this is because it will help create opportunities for both the productive and formal work for the youths in the country. Additionally, the shift will lead to a structural transformation in the country, and this will stimulate economic growth and industrial development (Waas et al.2014 p. 5520). Further, the shift from the agricultural sector to the manufacturing sector will have various implications of employment elasticity of the economic growth. This will create employment directly and indirectly through linkages. The impact of the strategy on the economy is as shown in the diagram below;
Switch to Cleaner Fuels
According to Nilsson, Griggs, and Visbeck (2016 p. 320), Bajaj Hindusta should also switch to cleaner fuels such as natural gas instead of the ethanol which resulted in the low production of energy. The shift to cleaner fuels will help the company to achieve its sustainable development goal of energy. The goal aims at access to energy which is reliable, resilient and affordable to all citizens. The use of natural gas will enable the company to produce enough energy which is reliable to all the other Asian nations.
Employment of more Experts
The recruitment of more experts to aid in the implementation of the goals is another key strategy. The various experts will aid in monitoring, reviewing and enforcement of the sustainable development goals (Nilsson et al.2016 p. 320). Also, the experts will be in charge of the establishing the key indicators to exhibit the outcomes of its efforts towards the goals.
Availing the Indicators
In the recent study, it was displayed that there are no indicators for determining the outcomes of the set goals has therefore affected the execution of actions to achieve the goals. The company must, therefore, use indicators to aid in estimating the outcomes of the efforts they will put in place to attain each of the set sustainable development goals (Keesstra et al.2016 p. 120).
Setting up a Committee to Deal with the Goals
Le Blanc (2015 p. 180), argues that Bajaj Hindusta should also set up a committee of experts and specialists who will be concerned with certain activities aimed at attaining the goals. Such activities will entail the formulation of sustainable development goals based policies, plan, implement and monitor the efforts set towards the goals.
Appropriate Targets and Indicators for Evaluation
According to Hák, Janoušková, and Moldan (2016 p. 570), the key targets for the economic growth goal is attain high levels of economic productivity, and this will be achieved through innovation, technological upgrading and more focus on the labor intensive sectors. The other target is to focus on sustaining the per capita economic growth, and this will be based on the prevailing national situation that is a percent gross domestic product. The key indicators of the set target will entail an increased growth rate of the real GDP on every employed person yearly. The other indicator is the rise in the real GDP per capita income annually. Another target on the sustainable goals will be to promote sustainable industrialization, and this will be aimed at increasing the industrial share of GDP and employment (Fukuda-Parr, Yamin and Greenstein, 2014 p. 117). The key indicators for the above target will be the manufacturing employment based on the number of total individuals employed. The other indicator will be a manufacturing value which is to be added to the percentage of the per capita and GDP. Lastly, it, it, it targets at enhancing the scientific research and thus upgrades the technological capabilities of the industry sector across the nation.
Part B: SDG Work Integrated Learning Placement Application
RE: Application for Position of SDG Consultant.
Hello, I would like to like for the position of SDG consultant in the company. I believe I have the knowledge and the capacity that will help in the management of the SDG in a sustainable, socially responsible and ethical manner. For instance, on the goal of energy, I will manage it sustainably by typically placing my contributions to various conferences on renewable energy and developing topics during the workshops on the global energy. I will also support the value driven actions, and this will entail the provision of the capacity to train the small and medium enterprises, particularly in the country (Tai and Chuang, 2014 p. 117). The training will primarily focus on the various universal sustainability standards, and this will, therefore, enable the key elements to be comprehended easily. Such value oriented enterprises will eventually result in long-term sustainable positioning of the company in the market. Additionally, it will lead to the creation of decent jobs and better working conditions in the country.
In regards to the goal on industrial development, I will manage it ethically by support to the innovation, research and domestic technology in the company including the nation as a whole and this will entail the provision of a favorable environment for the value addition and industrial diversification. In the past, I have been involved in the community based programs which entail support of innovation to help develop industries had this has given me the experience. Further, I will be responsible for facilitating the resilient and sustainable infrastructure development within the company (Adomßent et al.2014 p. 5). As the SDG consultant, I will establish and execute some of the tools which will be used in monitoring the sustainable development impacts for sustainable energy and the industrial developments within the country.
Further, to ethically manage the SDG, I will provide support to the company to help in strengthening their technological and scientific capacities to create a variety of sustainable patterns of production of energy and sugar in an ethical manner (Kolk, 2016 p. 30). As the SDG consultant in the company, I will promote and thus implement laws and policies which are non-discriminatory to help in attaining sustainable development goals set in the company. Such a step will create a sense of transparency and accountability. As a socially responsible consultant, I will respond to those sustainable development goals and then implement those which can be enforced for common good and a positive impact on the company. The main focus for the departure of the SDGs will be on the local communities around the company.
Moreover, I will establish a ten-year social investment framework which will focus on a variety of areas which will map out the various sustainable development goals set by the company (Carroll and Buchholtz, 2014 p.34). Additionally, an evaluation and monitoring framework to monitor and thus report the different outcomes including the impacts that such goals will have delivered. The above frameworks will aid in the management of the SDGs in a socially responsible manner by the company (Baumgartner, 2014 p. 260). Lastly, I will take into account the various expectations of the stakeholders during the implementation of the SDGs to ensure that there is accountability.
Conclusion
In summary, the sustainable development goals set by the company are primarily three that is the goal on energy, industrial development and economic growth. The above goals have their set targets and indicators. For instance the target for economic growth is to attain a high levels of economic productivity and this will be achieved through innovation, technological upgrading and more focus on the labor intensive sectors. The indicators for the target are an increased growth rate of the real GDP on every employed person yearly and the rise in the real GDP per capita income annually and they are set to be attained in a period of five years.
References
Acharya, B., Maru, D., Schwarz, R., Citrin, D., Tenpa, J., Hirachan, S., Basnet, M., Thapa, P.,Swar, S., Halliday, S. and Kohrt, B., 2017. Partnerships in mental health care service delivery in low-resource settings: developing an innovative network in rural Nepal. Globalization and health, 13(1), p.2.
Adomßent, M., Fischer, D., Godemann, J., Herzig, C., Otte, I., Rieckmann, M. and Timm, J.,2014. Emerging areas in research on higher education for sustainable development–management education, sustainable consumption and perspectives from Central and Eastern Europe. Journal of Cleaner Production, 62, pp.1-7.
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), pp.258-271.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.
Day, K.A., 2016. China’s environment and the challenge of sustainable development. Routledge.
Fukuda-Parr, S., Yamin, A.E. and Greenstein, J., 2014. The power of numbers: a critical review of millennium development goal targets for human development and human rights. Journal of Human Development and Capabilities, 15(2-3), pp.105-117.
Griggs, D., Smith, M.S., Rockström, J., Öhman, M.C., Gaffney, O., Glaser, G., Kanie, N., Noble, I., Steffen, W. and Shyamsundar, P., 2014. An integrated framework for sustainable development goals. Ecology and Society, 19(4).
Gupta, J. and Vegelin, C., 2016. Sustainable development goals and inclusive development. International environmental agreements: Politics, law and economics, 16(3), pp.433-448.
Hajer, M., Nilsson, M., Raworth, K., Bakker, P., Berkhout, F., de Boer, Y., Rockström, J., Ludwig, K. and Kok, M., 2015. Beyond cockpit-ism: Four insights to enhance the transformative potential of the sustainable development goals. Sustainability, 7(2), pp.1651-1660.
Hák, T., Janoušková, S. and Moldan, B., 2016. Sustainable Development Goals: A need for relevant indicators. Ecological Indicators, 60, pp.565-573.
Hák, T., Janoušková, S. and Moldan, B., 2016. Sustainable Development Goals: A need for relevant indicators. Ecological Indicators, 60, pp.565-573.
Keesstra, S.D., Bouma, J., Wallinga, J., Tittonell, P., Smith, P., Cerdà, A., Montanarella, L., Quinton, J.N., Pachepsky, Y., van der Putten, W.H. and Bardgett, R.D., 2016. The significance of soils and soil science towards realization of the United Nations Sustainable Development Goals. Soil, 2(2), pp.111-128.
Kolk, A., 2016. The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business, 51(1), pp.23-34.
Le Blanc, D., 2015. Towards integration at last? The sustainable development goals as a network of targets. Sustainable Development, 23(3), pp.176-187.
Liu, L., Oza, S., Hogan, D., Chu, Y., Perin, J., Zhu, J., Lawn, J.E., Cousens, S., Mathers, C. and Black, R.E., 2016. Global, regional, and national causes of under-5 mortality in 2000–15: an updated systematic analysis with implications for the Sustainable Development Goals. The Lancet, 388(10063), pp.3027-3035.
Lu, Y., Nakicenovic, N., Visbeck, M. and Stevance, A.S., 2015. Five priorities for the UN sustainable development goals. Nature, 520(7548), pp.432-433.
Nilsson, M., Griggs, D. and Visbeck, M., 2016. Map the interactions between sustainable
development goals: Mans Nilsson, Dave Griggs and Martin Visbeck present a simple way of rating relationships between the targets to highlight priorities for integrated policy. Nature, 534(7607), pp.320-323.
Osborn, D., Cutter, A. and Ullah, F., 2015, May. Universal Sustainable Development Goals: Understanding the transformational challenge for developed countries. In Report of a study by stakeholder forum (pp. 5-20).
Schmidt, H., Gostin, L.O. and Emanuel, E.J., 2015. Public health, universal health coverage, and Sustainable Development Goals: can they coexist?. The Lancet, 386(9996), pp.928-930.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.
Vanolo, A., 2014. Smartmentality: The smart city as disciplinary strategy. Urban Studies, 51(5), pp.883-898.
Vezzoli, C., Ceschin, F., Diehl, J.C. and Kohtala, C., 2015. New design challenges to widely implement ‘Sustainable Product–Service Systems’. Journal of Cleaner Production, 97, pp.1-12.
Waage, J., Yap, C., Bell, S., Levy, C., Mace, G., Pegram, T., Unterhalter, E., Dasandi, N., Hudson, D., Kock, R. and Mayhew, S., 2015. Governing the UN Sustainable Development Goals: interactions, infrastructures, and institutions. The Lancet Global Health, 3(5), pp.e251-e252.
Waas, T., Hugé, J., Block, T., Wright, T., Benitez-Capistros, F. and Verbruggen, A., 2014. Sustainability assessment and indicators: Tools in a decision-making strategy for sustainable development. Sustainability, 6(9), pp.5512-5534.
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