Sustainable Business And Ethical Business(chapter 1)

Hi,Steemit Uses today I want to talk about"Sustainable Business And Ethical Business"

Sometimes CSR is used interchangeable with the term "sustainable business".This may not be entirely accurate, as in many cases,CSR activities has the tendency to have a short timeframe. In sustainable business, the organisation will take a holisitic approach towards its impact on the environment, community and long-term profitability.

Some businesses may focus on their ethical credentials, and by doing so claim to be an"Ethical Business". These organisations hightlights the importance of their Code of Conduct, where they strive to have ethical behavior in the areas of:

• Sourcing of product and services
• Business conduct
• Quality and service standards

Some consumer-led organisations adopt an Ethical Business plan in order to demonstrate and reassure customer of their ethical credentials. It is equally important that businesses also assess and report on all areas of their business activity, including social, economic and environmental impacts. Some of these organisations are recognised each year by the Ethisphere Institure, an Arizona-based organisation that aims to define and advance the standards of ethical business practices. Notable companies that have been recognised as being ethical business includes Coca-Cola, Google, L'Oreal and many others.

Ethical businesses aim to minimise any harm done to people and the planet as a result of their work.This is commonly reflected in manufacturing companies that emphasises the principle of Reduce, Re-use and Recycle. For example, Carlsberg Malaysia Bhd announced in its 2013 CSR report that by investing in a new carbon dioxide recovery plant, it had managed to recover 3,957 metric tonnes of carbon dioxide from its fermentation processes, an improvement over the 2012 recovery of 3,095 metric tonnes.

Sustainable Business essentially means being able to continue, or operating in a way that is conducive to ongoing trading. Sustainable Business recognises the importance of businesses continuity, particularly in respect of providing jobs and custom for suppliers. Recently, Sustainable Business has expanded to become a more holistic view of business activity- reporting on impact to people, the planet and profit. This is normally reported using an accounting methodology known as the Triple Bottom Line.

The terms Triple Bottom line (people, planet, profit), EES (economic, environmental and social) and ESG (environmental, social and governance) are not clearly differentiated and often used interchangeably. EES is commonly considered the 3 broad pillars of sustainability. ESG is a term used extensively, particularly by the investment community, and describes the environmental, social and governance matters that investor consider in the context of corporate behaviour. Triple bottom line (or otherwise noted as"TBL" or "3BL") is an accounting framework with three parts: social, environmental (or ecological) and financial. Many organisations internationally have adopted the TBL framework to evaluate their performance in a broader perspective to create greater business value. A guide to use the social return on investment ("SROI") approach is provided in chapter 6 in this book.

An example of an effective sustainability advocations is one set by the Roundtable on Sustainable Palm Oil (RSPO) for palm oil producers. Most palm oil exporter that are listed n Bursa Malaysia have been members since the early 2000s. Effective 04 April 2016, IOI Corporation was suspended by RSPO after it was accused of illegally cutting down rainforests and clearing peat land for plantation in Indonesia. It only regained its certification on 08 August 2016 after fulfilling the RSPO's demands to improve its environmental performance. When the suspension was announced, several international buyers cut back on purchase from IOI corporation. This includes companies such as Unilever, Mars and Kellogg's that removed IOI Group as an approved supplier as a response to the suspension by RSPO. Unilever has not reinstated IOI Group as an approved supplies until it can demonstrate that it adheres to the Unilever Sustainable Palm OIl Policy.

Author: NICHOLAS

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