Social and Environmental Sustainability

Social and Environmental Sustainability

Case 1: Enviroshake® and Microcredit

Social and economic sustainability remains a significant determinant in improving business practices and fostering human rights. The increasing pressure on businesses to adopt practices that are consistent with environmental sustainability and human-rights have seen numerous organizations apply the triple bottom line framework is their strategies. Many businesses are currently motivated by not only maximizing their profits but also promoting social equity among all their stakeholders (people) and maintaining a sustainable ecological footprint (planet) (Ohmer, 2019). Research on Enviroshake® and Microcredit reveals the efforts that some companies and individuals are making to implement the triple-bottom-line framework.

Features that Make Enviroshake® and Microcredit Sustainable

Enviroshake, a company found in 1998, focuses on creating advanced products for the composite roofing industry (Enviroshake, 2017). The company focuses on making a superior blend of durable and attractive roofing materials. The main feature that makes Enviroshake sustainable is its eco-friendly products. Its products, such as Enviroshake and Enviroshingle, are made from 95% recycled materials, making them appeal to the environment and the need to establish a sustainable planet. Besides, authentic, durable, and attractive, making them socially sustainable (Enviroshake, 2017).

Microcredit, pioneered by Muhhamad Yunus, is a finance concept which focuses on providing loans to poor entrepreneurs who cannot qualify for the loans offered by the conventional financial institutions. In 2006, Yunus received the Nobel Peace Prize for “creating economic and economic development from below” (The Nobel Prize, n.d.). The main feature that makes the microcredit concept sustainable is its focus on human value. Yunus believed that the best response to poverty is to lend micro finances to the poor in amounts that suit them, teach them some financial principles, and allow them to grow on their own (The Nobel Prize, n.d.). The foundation of credit finance makes it a pragmatic approach to fostering human sustainability.

Contribution of Enviroshake® and Microcredit to the Sustainable Development of Natural Environment and Human Society

EnviroShake contributes to the sustainable development of a natural environment by using recycled materials, such as postindustrial plastics, rubber, fibre, and tiles, to make eco-friendly cedar shake roofing products (Enviroshake, 2017). The strategy minimizes environmental degradation by reducing pollution resulting in improved sustainability of the natural environment. It also makes cedar shake roofing by using real cedar shingles obtained from well-managed forests. On the other hand, Microcredit primarily contributes to the sustainability of human society. Unlike conventional banks that aim at offering large loans at high interests, microcredits concentrate on providing small amounts of loans to the economically deprived. It gives equal opportunities to the poor to access loans and foster their development. The ability to access loans is both a human right and a tool that drives people out of poverty.

Contribution of Enviroshake® and Microcredit to the Bottom Line of Organizations

Triple bottom line framework emphasizes the need for businesses to invest in environmental sustainability (planet) and establish a sustainable human society (people) as a means to promote their organizational bottom line (profits). Enviroshake is achieving this by producing ecologically sustainable products that are generally durable, authentic, and attractive generating appeal to their customers (people). Through such focus, the company has been in a position to generate a stream of income from its environmentally-consciously customers. Microcredit also fosters human society by recognizing the poor as human beings with a right to access loans in their capacities.

Case 2: Sustainable Operational Activities

As emphases on social and environmental sustainability continue to intensify, various organizations are redesigning their business models to ensure that their internal and external business operations are in line with this paradigm shift. With more people realigning their preferences towards ecologically sustainable products, businesses have no option but to adjust accordingly. The adjustment is critical in not only conforming with emerging social and environmental needs but also engendering the organizational bottom line. To exemplify this, this section reflects on the internal and external operations of Marks and Spencer (M&S) and Lafarge.

M&S, a leading British retailer, is applying various environmental and social initiatives in its internal and external operations. First, the company recognizes that food wastage is a serious concern in the UK and is committed to working with various stakeholders to ensure that the food that it vends does no go to waste (Marks & Spencer, 2020). The company has initiatives to help its customers cut wastage by ensuring that they do not buy more than they need. It also works closely with its suppliers to cut on food wastage and donates surpluses to charity. In response to the problems associated with plastics, the company has adopted a circular economy approach where it recycles the plastics it uses and removes the ones that cannot be recycled (Marks & Spencer, 2020). It collected and removed 1000 tones of plastic packaging in 2019. It is also implementing customers’ take-back scheme, which encourages the customers to return hard-to-recycle plastics to the stores (Marks & Spencer, 2020). Besides, the company is carbon neutral. And has a very low carbon footprint and practice carbon offsetting through reforestation and contributing to green programs.

Lafarge, one of the leading companies in building materials in Canada and across the globe, is also implementing various initiatives in its internal and external operations to foster social and environmental sustainability. First, the company collaborates with a body known as the Cornerstone Standards Council that primarily focuses on promoting social and ecological sustainability (Lafarge, 2020). Made up of a diversified Board of Directors, the non-profit organization aims at establishing a mutual collaboration industrial stakeholders, environment, and community stakeholders to promote public engagement, social rehabilitation, and environmental protection. Secondly, the company is collaborating with MIT Concrete Sustainability Hub to foster research on sustainable cement production and use (Lafarge, 2020). The breakthroughs of the research as supposed to amount to the establishment of buildings that are environmentally sustainable and are more resilient. Besides, the company is committed to providing sustainable construction solutions that would foster the safety of cites, communities, and individuals.

The sustainability initiatives have exhibited a significant impact on the companies’ financial performances. Many people are getting attracted to products that are environmentally sustainable and supports sustainability efforts. As such, it is expected that involvement in sustainability initiatives would act as a magnet in attracting environmentally-conscious customers. Other activities, such as recycling and a lean supply chain system that reduces wastage, leads to a reduction in the production costs, thereby increasing profit margins. They also ensure the effective utilization of limited financial resources in maximizing corporate value. Lafarge is convinced that a sustainable business is a central component of a successful strategy (Lafarge, 2020). The company has been registering an increasing net income for the last three years, with $1.417 billion in 2017 and $2.072 billion in 2019 (Lafarge, 2020). The growing returns can be linked to the company’s increasing efforts on social and environmental sustainability.  M&S has also exhibited increasing incomes. It had £66.8 million in 2018 and £84.6 million in 2019. The increases point to the financial benefits of sustainability (Marks & Spencer, 2020).

References (Case 1)

Enviroshake. (2017, December 14). Sustainable & eco-friendly roofing – A green breakthrough. https://www.enviroshake.com/architects-builders/eco-friendly-roof/

Ohmer, M. L. (2019). Operationalizing and measuring social, economic, and environmental sustainability. Social Work and Sustainability in Asia, 46-60. https://doi.org/10.4324/9781315514970-4

The Nobel Prize. (n.d.). Muhammad Yunus Facts. NobelPrize.org. Retrieved March 31, 2020, from https://www.nobelprize.org/prizes/peace/2006/yunus/facts/

References (Case 2)

Lafarge. (2020, February 27). Annual and interim reports. LafargeHolcim.com. https://www.lafargeholcim.com/annual-interim-reports

Lafarge. (2020, January 30). Sustainability. Lafarge Canada. https://www.lafarge.ca/en/sustainability

Marks & Spencer. (2020). Investors’ key facts. Marks and Spencer. https://corporate.marksandspencer.com/investors/key-facts

Marks & Spencer. (2020). Welcome to Marks and Spencer. https://www.marksandspencer.com/