week 9- International business and sustainability

Nafisat again overlooks the importance of sustainability, a common but important topic within the business enterprise era. She looks at different theories that back the importance of it

WHAT IS SUSTAINABILITY ACCORDING TO THE UN?

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs

WHAT IS THE TRIPLE BOTTOM LINE ACCORDING TO ELKINGTON 1997?

·       Economic, social, environmental concerns

·       Economic 

o   Involves efficient/responsible use of resources to sustain operational profit. Economic wellbeing, decent work, and business profitability

·       Social

o   Good social well-being affecting the people and the society, social inclusion, poverty reduction, quality education, and equality

·       Environmental

o   Consuming natural resources at a sustainable rate

 

WHAT IS CSR?

A company’s responsibility to operate ethically and contribute positively to society and the environment, beyond making profits

WHAT IS CARROLL 1990’S CSR PYRAMID?

o   Economic (profit)

o   Legal (compliance)

o   Ethical (fair practice)

o   Philanthropic (voluntary contributions)

WHAT IS FREEMAN’S 1984 STAKEHOLDER THEORY?

“Firms must consider all stakeholders, not just shareholders”

WHAT IS PORTER AND KRAMER’S 2011 SHARED VALUE THEORY?

“Firms can create economic value by solving social/environmental problems”

WHAT IS DIMAGIO AND POWELL’S 1983 INSTITUTIONAL THEORY?

“sustainability practices shaped by coercive, normative, and mimetic pressure”

WHAT IS MOL AND SPAARAGREN’S ECOLOGICAL MODERNIZATION THEORY?

“Environmental protection can align with innovation and competitiveness”

WHAT ARE GLOBAL VALUE CHAINS ACCORDING TO GEREFFI 1994?

International networks where different stages of producing a product are spread across different countries, but controlled by powerful firms.

Simply put:

• A product is designed in one country

• Manufactured or assembled in others

• Marketed and sold globally

• Lead firms (usually multinational corporations) control and coordinate the whole process

WHAT IS THE DIFFERENCE BETWEEN EQUITY AND EQUALITY?

·       Equality: everyone gets the same resources

·       Equity: resources are adjusted so everyone reaches equal outcomes

WHAT IS THE ECOLOGICAL FOOTPRINT?

amount of biologically productive land needed to support consumption

WHAT IS BIOCAPACITY?

amount of productive land available per person

WHY DOES ENVIRONMENTAL SUSTAINABILITY MATTER?

·       Protects natural resources

·       Maintains ecosystems

·       Supports long-term economic and social stability

WHAT IS THE ECOLOGICAL RESERVE/DEFICIT MAP?

Shows countries living within or exceeding their ecological capacity

WHAT IS THE ECOLOGICAL FOOTPRINT CALCULATOR?

A tool that measures how much of Earth’s natural resources a person, company, or country uses

HOW CAN MULTINATIONAL ENTERPRISES TRANSITION TO SUSTAINABILITY?

Implementation Framework

• Renewable energy obligations

• CO₂ emissions regulations

• Policies like the Paris Agreement

Operational Greening

• Greener supply chains

• Efficient facilities

• Sustainable energy choices

• Green product design and delivery

Green Marketing

• Green products

• Green pricing

• Green logistics (“places”)

• Green promotion

Green Finance

• Investment in low-carbon projects

• Sustainable financial instruments

WHAT IS THE PARIS AGREEMENT AND CLIMATE ADAPTATION?

Countries commit to:

• Reducing emissions

• Reporting progress regularly

• Planning long-term climate adaptation strategies

HOW DO COUNTRIES ADAPT TO CLIMATE CHANGE?

• Coastal protection

• Renewable energy adoption

• Water resource management

• Climate-resilient agriculture