MGNT2SM ASSIGNMENT QUESTIONS

Sustainability is a concept centred on creating a way of life that meets the

needs of the current generation while also ensuring that future

generations can meet their own without compromising their ability to do

so. Sustainability management is the practice of managing resources in a

way that ensures long-term environmental, economic, and social

sustainability. This paper will be addressing the principles of sustainability

management (Conaway, 2016).

I. For a timespan that nears a decade the sustainable development goals also

popularly known as the SDG’s have been the main runners in the relay race of

human development, their forerunners being the Millennium Development Goals,

contrasting the SDGs seventeen the MDGs totalled a number of eight goals or

priorities geared towards the development of developing countries by addressing

issues like gender inequality, poverty, issues relating to the environment, etc.

After the many shortfalls surrounding this strategy, e.g., lacking a framework for

global application, stakeholders not keeping to their promises, etc, by 2012 it was

clear that this strategy had run its course which called for the world and its leaders

to develop a more enhanced model for development hence the emergence of the

SDGs (Sachs, 2012).

Emanating from the Roi+20 summit in 2012 and declared by the UN in 2015 the

SDG’s are more than stones throw away from the MDGs with their priorities
 tallying seventeen, broad application and their core theme of sustainable

development, defined as “development that balances resources for the future”.

The SDGs are said to have their application within a triune bottom line which

features the Economic, the social and the environment, their existence is an

inspirational call to ensure sustainability globally amidst the turmoil eating away

at our world today (Fukuda-Parr, 2016).

II. Lists the Sustainable Development Goals (SDGs)

a) No Hunger

b) good Education

c) Gender Equality

d) Clean Water and Sanitation

e) Cheap and Clean Energy

f) Civilised Work and Economic Growth

g) Industry, Innovation, and Infrastructure

h) Reduced Inequality

i) Sustainable Cities and Communities

j) Responsible Consumption and Production

k) Climate Action

l) Peace and Justice Strong Institutions

m) Good Well-being Health

III. Explains the people‐planet‐profit model.

The people-planet-profit model also known as the triple bottom line is a structure businesses

use that promotes corporate social responsibility and

sustainable development. It promotes that a company’s success should be

determined not just by its profits but also by how well it treats its

customers and the environment. The people or the social aspect reflects

the need for applications to be fair and advantageous to labour, human

capital, and society, (ARSLAN, 2017) . Businesses that follow this model take

precautions to guarantee that their workers are treated fairly and with

respect. They foster diversity and inclusivity in the workplace, offer fair

salaries and benefits and create opportunity for growth and development.

When employees are satisfied, productivity increases and satisfied

customers are loyal which both benefits the business. Therefore, we can

conclude that a socially responsible business considers the well-

being of the communities in which it operates, promotes diversity and

inclusion, and invests in employee training and development. The planet aspect of the model

represents the environmental impact of the business. Additionally, it is about businesses

prioritizing the use of renewable energy and environmentally friendly materials, support

programs to achieve carbon neutrality, and advance biodiversity.. This environmental

sustainability also includes reducing carbon dioxide, wastes and pollutions. Being

environmentally responsible helps businesses improve their brand reputation which can

create new business opportunities. According to this model, profit is not the only measure of

success. Focusing on profits only can lead the business to neglecting the responsibility it has

on the environment and the society but businesses that take a long-term view and pursue an
ethical and sustainable approach to business can contribute to social and environmental

progress while remaining profitable. This aspect acknowledges the need of being

financially stable to remain operational and generate income for shareholders but also

balancing profitability with the responsibility it has on the environment and society.

According to (ARSLAN, 2017, p. 27) , a profitable business benefits society greatly by

offering more affordable, higher-quality goods and services. Businesses can benefit from the

people-planet-profit concept in a number of ways. First of all, it creates a good

reputation for the business which improves customer loyalty. Audiences

are more likely to favour companies that stress social and environmental

responsibility.

Describes the changes in the people‐planet‐profit model because of climate

change

Climate change is a problem that is rapidly affecting everyone on the planet with extreme

weather, rising sea levels, and the displacement of many people. Communities and society

where businesses operate are impacted by climate change. The livelihoods, health, and safety

of people are impacted by extreme weather patterns like floods, droughts, and storms. A lot

of people in these communities get displaced because of climate change which causes a

number of social concerns such as conflicts, discrimination, and health problems. Businesses

must take the lead in this regard and support such communities, primarily by investing in

social responsibility programs. Since climate change also affect employees, productivity

decreases. Climate change is forcing the government and the public to change regulations and

policies as they recognize the gravity and urgency of the situation. This means that
companies must adapt to new environmental laws, taxes, and incentives in order to minimize

their environmental impact. It forces businesses to operate in a way that is going to sustain

the environment. Climate change can affect infrastructure which can affect business

operations and could mean that they need to invest in it. Climate change causes changes in

consumer preferences which affects the profit of the business. Climate change is causing

businesses to consider new ways of operating and investing, as well as developing new

products and services to meet the new challenges posed by climate change. Businesses will

also have to invest its profit to CRS and infrastructure which will decrease their financial

gain.

V. Explains what responsible business is.

Businesses are conscious that managing their operations in a way that

boost economic growth and competitiveness while maintaining

environmental protection and fostering social responsibility, including

consumer interest, can help them contribute to sustainable development,

(Fontaine, 2013) . Responsible business, also referred to as corporate social

responsibility, refers to organizations that have committed to and carried

out initiatives to achieve the objective of sustainable business. In this

context, responsibility refers to a dedication to reaching the status of a

sustainable business and the ultimate goal of sustainable development,

(Conaway, 2017) . This basically means businesses must consider the social,

environmental, and economic effects of their decisions while aiming for

profitability. Responsible business involves not only making a profit but

also contributing to the well-being of society and the environment. The

idea behind corporate social responsibility is that businesses should

consider the needs and welfare of other stakeholders, such as employees,

customers, suppliers, the community, and the environment, in addition to

their shareholders' interests and profit maximization goals. The Carroll-developed CSR

pyramid is a well-known structure for describing CSR (1991). Economic, legal, ethical, and

philanthropic/discretionary responsibilities are the levels of responsibility that the pyramid

suggests should be taken in order, (Conaway, 2017) .Economic responsibilities include the

expectation that the business will increase profits, make investments in research and

development, and provide jobs for workers. Although making a profit is a company’s primary

goal, doing so shouldn’t come at the price of society as a whole. Businesses have a duty to

spend money on fresh, cutting-edge goods and services that will eventually help society.

When it comes to legal responsibilities, businesses do what is required by law, (Conaway,

2017) .Businesses have a responsibility to abide by national, regional, and international laws

and regulations, including those pertaining to the environment, labour, and human rights.

This means that companies need to make sure that their operations don’t hurt the environment

and that their goods adhere to regulatory and safety standards. This means that businesses

should conduct their operations in a socially responsible manner. This includes respecting the

rights of individuals and communities affected by its operations, avoiding child labour, or

forced labour, providing safety and healthy working conditions, and so on.
VI. Outlines importance and value of responsible and sustainable

management practices.

The climate disasters remain one of the most pressing issues of our day.

Sustainability is now more important than ever in the fight against climate change

and its effects. Sustainability, though, goes beyond environmentalism. Sustainable

development strategies aid in a country’s ability to adjust its growth to the

problems posed by climate change, thereby protecting vital natural

resources for current and future generations. The challenge of sustainable

development is to advance in such a way that each one of these individuals can

experience a high standard of living without depleting our natural resources. A

firm is sustainable from a larger standpoint if its goals and practices are based on

considerations for the economy, the environment, and society. Businesses strive to

be good corporate citizens by emphasizing energy efficiency and providing

environmentally friendly products. Nowadays, a lot of companies

have started to embrace sustainability and see it as a more essential part of their

overall company plan. The unsuitable sewage system put in place by the

responsible municipality results in significant pollution of the Msunduzi river.

Water quality that has "E. coli contamination greater than 50000/100m" is

considered serious contamination and might make one in three people ill,

according to Duzi Umgeni Conservation Trust (Duct) (Duzi Umngeni

Conservation Trust, 2018). The Duzi River is currently "more than four times

more contaminated than this level" (Duzi Umngeni Conservation Trust, 2018).

Following this, it was revealed that the contamination has occurred as a result of

the sewage system that has not been modified to operate properly during high
 rainfall (eNCA, 2019). Due to a lack of information and abilities applied to this

project, it demonstrates a poorly managed project. Sewage waste pours into the

Duzi river at times of heavy rain, poisoning the water.The aquatic life has

decreased since some species cannot survive in the poisoned water.

2019 (Warnie). Also, the water's levels, which can seriously harm anyone who

comes into contact with the water, have been lowered. Those who get sick

frequently won't be able to work, which results in a loss of money for households

(Gemmel & Schmidt, 2013). Recreation will also be impacted by the pollution as

more individuals would want to Avoid the river water at all costs. The oil spillage

from the containment tanks of the nearby Willow town oil manufacturing business

is the other significant source of pollution in the Duzi river. The proper steps were

not implemented to carefully examine the containment of the oils so that an oil

leak does not occur due to inadequate supervision from the company and its lack

of employee accountability. Farmers use the river as a water source for livestock

and irrigation (Gemmel & Schmidt)

VII.

The Regional Risks Report ranked "extreme weather events," "failure of climate change
adaptation," and "natural disasters" among the top ten risks for business leaders in East Asia
and the Pacific, and North America. Environmental risks are the top business concerns in
East Asia and the Pacific, with "natural disasters" and "extreme weather events" ranking first
and fifth, respectively. Natural disasters were ranked first in Japan and New Zealand, while
they were third in Indonesia and the Philippines.

These findings are not surprising given that the Asia Pacific region experienced 50% of the
world's natural disasters in 2018. These disasters claimed over 80% of all natural disaster
deaths worldwide, affected over 50 million people, and cost the region $56.8 billion. The top
ten business risks of highest concern globally:
  Fiscal crises
 Cyberattack
 Unemployment or Underemployment
 Energy price shock
 Failure of national governance
 Profound social instability
 Data Fraud or Theft
 Interstate conflict
 Failure of critical infrastructure
 Asset bubble
Asia Pacific not only suffers the most in terms of loss of life, but its large and highly
vulnerable population makes the region especially vulnerable to economic losses when an
extreme weather event occurs. Industrialization and unplanned urbanization have weakened
the region's natural disaster defences. For example, the environmental damage (the electrical
waste in Ghana), political influence (oil companies in Nigeria), working conditions in
sweatshops, etc.

VIII. Using the information presented in the case and additional reading,

explain the concept and practice of corporate social responsibility (CSR)

Corporate social responsibility (CSR) as a concept has gained numerous attention

from the academia in the past few years given its origin in the 1950s, through

inculcation more and more businesses have engrafted themselves in the practice,

seeking to be better citizens of society (Dr. Muhammad Tariq Khan, 2012),

(Rahman, 2011).

What is CSR?

Means “ holding the responsibility to develop the society by envisioning future

plans for socio-economic justice and be conscious about their responsibility for
the welfare of society around them” (Dr. Muhammad Tariq Khan, 2012)in other

words it’s a departure from a selfish business profit motive to a consideration of

the social value the company brings and this must be done on a voluntary basis

(Abagail McWilliams, 2006).

From the Conceptual to the practical CSR is executed through several behaviours

which are:

Treating employees benevolently and with fairness,

Emphasis on the Vitality of ethics,

Investment into the arts heralded by the community (Dr. Muhammad Tariq Khan,

2012).

Build infrastructure for community benefit and invest in educational programmes

(Conaway, 2016).

IX. Illustrates your understanding by discussing the socially responsible

practices businesses should adopt to reduce the negative impact of climate
change.
Picture A

PICTURE C PICTURE D
 Climate change with its broad myriad of effects over the past few years has
shrewdly established itself as a thorn in the flesh of most business roundtables
when it comes to risk, coming in the form of physical, brand and risks concerning
adherence to law (2008). Businesses have been left with no choice but to approach
this phenomenon more strategically (Azlan Amran, 2015). This strategic approach
has led to a global change in business practice causing businesses to implement
systems of mitigation and adaptability to curb the effects of the scourge (Jonatan
Pinkse, 2012).

Mitigation practices
Mitigation- A man made reduction and stabilizing model in Greenhouses gas
emissions and their effect on climate (Jonatan Pinkse, 2012). Practices instituted
by business:
Investing in renewable energy
The use of fossil fuels in the business industry has been a large contributor when it
comes to climate change due to the emission of GHGs when fossils are utilized
and the use of renewable energy like Hydro, wind and solar energy has had
opposite effects and led to a greener environment (A.G. Olabi, 2022), (Jonatan
Pinkse, 2012).

Investing in energy efficient technologies

The concept of efficient technologies refers to the hardware needed to facilitate
the use of different renewable energy sources that protect the environment and
mitigate climate change, like the ones mentioned above thus leading to a greener
economy (Jonatan Pinkse, 2012)

Picture A illustrates that the business or the company operating in the area must be
responsible they must keep the environment sustained in order to conserve it for the
future generation.

Picture C the company must make sure they must keep the environment in a good state not polluted.
They must not only be focussed on the profit, but they must focus also on using eco-friendly material
as illustrated on picture D the use of windmills to produce electricity instead of using coal of which it
is not eco friendly
X. State the alternative people‐planet‐profit trade-offs that this reduction
requires.

Upon investigation of the responsible business engaging in socially responsible

business practices and production of actions that bring priority to the triple bottom
line, these conservative actions seem to manifest themselves as double edged
sword posing positives and negatives in the reduction of climate change for the
business.
From an economic point of view as stated above a responsible business stands
obtain brand loyalty and a plethora of benefits but one key factor that demeans
this is that the financial burden for most responsible acts of business relating to
climate change is too great especially when it comes to renewable energy, e.g., the
capital costs in the installation of hydro-plants, (G.A. Aggidis, 2010), (Anna-
Kaisa Kosenius, 2013). From an environmental standpoint we also see trade-offs
in the use of strategies like hydro and wind-power whereby they can surely
mitigate climate change while a degree of environmental degradations occurs. A
careful study of Hydropower will show that it can negatively affect local
dams( which also affects the social setting) and cause damage in the context a
whole power production being located within a river, wind-power may cause
damage to the bird population and so forth. which means that businesses must
prepare themselves thoroughly in assessing the trade-offs so that they don’t shoot
themselves in the foot on the journey of curbing climate change (Anna-Kaisa
Kosenius, 2013).