Environmental Sustainability of Oil Palm †MyAssignmenthelp.com

Question: Discuss about the Environmental Sustainability of Oil Palm. Answer: Introduction PepsiCo, Inc. is an American multinational corporation engaged in production and distribution of beverages and fast food items. Company was formed in 1965 with the merger with Pepsi-Cola Company and Frito-Lay Inc. Since then, PepsiCo is expanding its business and market share across the globe and Tropicana is one of the biggest acquisitions made by company in 1998 and Quaker Oats in 2001. It has been observed that companys every brand is contributing to enhance overall revenues of the organization. Approximately $1 billion revenue is contributed by every brand of PepsiCo since 2012. Company is operating in various parts of the globe along with approximately 3 lacs employees in all global locations (PepsiCo, 2018). Nestle is a Swiss transnational beverage and food manufacturing and distributing company. Since 2014, company is known as the largest company in terms of revenues across the globe. It is headquartered in Vevey, Vaud, Switzerland. Company has been ranked on 64th and on 33rd position by Fortune Global 500 in 2017 and by Forbes Global 2000 list of largest public enterprises in 2016 apiece. Majorly Nestle deals in baby products, tea coffee, bottled water, medical food, confectionary ice cream, snacks, etc. Nestle was formed in 1905 with the merger of Anglo-Swiss Milk Company and Farine Lactee Henri Nestle (Lpez Monfort, 2017). With regards to both these companies, their overall sustainable strategies will be discussed under this report. Corporate sustainability is an approach which leads to showcase long-term survival of the organization to its stakeholders with the help of an effective business strategy. The business strategy implemented within the workplace should consider every aspect in which business operates such as economic, social, environmental, cultural, and in ethical spheres. Adaptation of sustainable strategies is an important concept and it should be done with the view to enhance organizational reliability amongst its target and potential demographics. Apart from this, sustainable strategies are also effective sources for long term survival in the competitive and dynamic business environment. Sustainable Strategies of PepsiCo PepsiCo believes in strong sustainability governance which is the foundation for delivering on our Performance with Purpose (PwP) vision in order to provide long term top-tier financial performance by assimilating the sustainability into business strategies. Apart from this, PepsiCo has accepted sustainability as a part of business practices and in this regard, company also value its shareholders and other stakeholders (PepsiCo, 2018). In order to enhance the effectiveness of their sustainability strategies, PepsiCo has taken an initiative to make a healthier environment around the organization and for this; they are working for creating healthier future for people and for the whole planet. Their Performance with Purpose 2025 agenda is designed to deliver needed change across the company, industry, value chain and the world (Cohen Muoz, 2017). PepsiCo cultivates sustainability from its employee culture. PepsiCo is using its human resource department to integrate the concept of sustainability in firms culture. In order to integrate the concept of sustainability in organization, management hires employees, train them and by providing employee welfare packages to them. PepsiCo hire only educated and talented employees so that they could be trained with sustainable business practices (Sehrawat, 2017). With the help of this, a sense of belonging develops which further leads to an employee welfare package. As a result, companys employees are always motivated which generate positive results for the organization like producing high qualitative products. Along with these practices, PepsiCo is also engaged in ecological manufacturing practices such as diversion of waste from landfills, organic packaging and reduction in greenhouse gas (GHG). These figures describes that PepsiCos each and every manufacturing site is being monitored as well as measured whether it is a outsourced firm or it is a part of internal manufacturing unit. Management of organization tracks on water withdrawals on monthly basis. This is done to enhance the opportunities of sustainable development for organization along with coping up with the sustainability metrics platform. PepsiCos internal self-assessment program to measure water, sanitation and hygiene has been implemented so as to enhance the sustainability in the competitive business environment. Sustainable strategies of Nestle Main motive of Nestle is to provide quality food products to the target and potential customers along with sustainable development. In terms of Nestle, definition of sustainable development is that it is a process through which worlds access could be increased towards higher quality food along with contributing towards long term economic and social development by preserving the natural resources and environment for future generations (Sroufe Joseph, 2017). Company made its corporate business principles in 1998 and then updated in 2002. The updated version of corporate business principles of the organization includes all nine principles of the UN Secretary-Generals Global Compact, regarding labour standards, the environment and human rights (Acquaye, Feng, Oppon, Salhi, Ibn-Mohammed, Genovese Hubacek, 2017). Some of the basic principles and value of Nestle are: Concerned towards long term development instead of short term profits Long term relationships with the stakeholders and commitments Integrated towards diversified cultures Adequate code of conducts and ethical values which helps in proper management of employees (Svensson, Ferro, Hogevold, Padin Sosa Varela, 2018). Providing adequate and all necessary information to the consumers regarding companys products. Comparison of sustainable strategies of PepsiCo and Nestle Both the companies are part of Food and Drink Federation (FDF). This group has developed a series for new sustainability commitments. This series of sustainable commitment is a part of Ambition 2025 document and includes goals related to climate change, packaging, food waste, water, supply chain, transport (Paloviita, 2017). Along with this, this agenda also includes some best practices which need to be followed by every company engaged in this industry with the motive of long term survival in the dynamic and competitive business environment. FDF has created certain new goals which are as follows: Climate Change: Absolute reduction in carbon dioxide emission by 55% till 2025. Food Waste: Reduction in the whole food supply chain from farm to fork. Packaging: Innovation in packaging technology so that packaging could be recycled (He, Ghobadian, Ramanathan Gallear, 2018). Water: Supply of water across the food manufacturing industry will be limited and to reduce the waste of water, appropriate actions will be taken to ensure sustainable water management and reduce the water waste by 20% till 2020 against the wastage of water in 2007 (Appendix 3). Triple Bottom Line Impact Triple Bottom Line is an accounting framework which relates to three aspects such as social (people), environmental (planet) and economical or financial (profit). People concept can be described as per three dimensions i.e. organizational needs, community issues and individual needs. Profit concept describes enhancing sales and revenues so that profitability could be increased. In this concern, focus should be paid over improvisation of customer service along with attracting new customers so as to enhance customer base of the organization. While planet concept can be divided into multitude of subdivisions which are reuse, reduce and recycle. Various organizations use this framework to evaluate its performance in terms of broader perceptive in relation with creating greater business value. Traditionally, frameworks of business were used to evaluate the profit and loss with the help of revenues and expenses statement. Since last 50 years, social justice advocates and environmentalists are struggling to bring a broader concept of bottom line into public consciousness with the help of full cost accounting. For example: if a companys financial statements are showing monetary profits but the raw materials and machineries used by the organization is causing thousands of deaths. Generation of waste is very high in the organization and due to disposition of waste in water, air and land; all natural resources are getting polluted (Gouchev, Knowles, Sharp, Psaltakis Lauro, 2017). Though, organization pays huge taxes to the government which could be utilised for social benefits and for the development purposes. But the bottom line will be how we call it as a full societal benefit analysis. The triple bottom line concept also adds two more bottom lines i.e. social and environmental benefit (Gallego-lvarez Ortas, 2017). Whereas an organization seeking for triple bottom line who is a social enterprise and running business as non-profit organization and engaged in providing opportunities to the handicapped people who are labelled as unemployed so that they could earn a living. With these types of activities, organization is earning a small amount of profit. In this regard, social benefit is a meaningful employment through which societys welfare, environmental protection and corporate social responsibility (Rodger George, 2017). While evaluating PepsiCo and Nestle in triple bottom line concept, it could be evaluated that both these companies fulfils all the three requirements of this framework. Financially, both companies are strong enough, both the companies are doing well towards society and the last factor which is most essential because if natural resources will not be saved today, human life cannot be imagined in future (lvarez, Brcena Gonzlez, 2017). Concept of triple bottom line concept is com mitted towards corporate social responsibility with the help of following: Top-level management (CEO, Board of directors) Programs Policy investment Principles (UN Global Compact-Ceres Principles) Decision Analysis With regards to the sustainability strategies and their requirements, both the companies i.e. PepsiCo and Nestle has fulfilled all basic requirements which have helped them to become a part of Triple Bottom Line framework. This framework helps the companies to analyse their position in terms of financially, socially as well as on the basis of ecologically. Today, motive of the business is more than just earning profits. Every company has to fulfil its responsibilities regarding society. With this view, organization could make a reliable position in the market along with the attainment of their desired goals and objectives (Bals Tate, 2017). Apart from this, corporate success depends upon sustainability strategies practiced by one enterprise that could be able to extend all aspects of the business which includes employees, customers, supplier, and all other stakeholders. Following are the key components of a successful strategy: Sustainability amongst the workplace should be uplifted considering the environmental and social issues. Apart from this, organizational objectives must be designed so that it could be able to fulfil its employees objectives as well. This will lead to attain sustainability goals. Feedback should be taken from companys key stakeholders in relevance with sustainability challenges and towards sustainability practices adopted by the organization. This will help the organization to make its strategies as per the external factors in order to enhance organizational performance (Wei, Alsaadi, Hayat Alsaedi, 2017). Open reporting on sustainability strategies, goals and accomplishments (Della Porta, Jackson, Alessandrino, Rossi, Bacigalupo, van Lint Santini, 2017). Conclusion From the aforesaid evaluation of both the companys sustainability strategies, it has been found that these practices plays significant role in enhancing organizational performance in the competitive and dynamic business environment. With this objective, PepsiCo have started sustainable development campaign since 2006. With regards to the sustainable strategies, both companies ethical and corporate social responsibilities have been discussed in this report. Along with this, triple bottom line concept has been applied within the workplace with the objective of enhancing organizational reliability amongst its target audience. Nestle is committed towards using fresh water resources to produce good quality food products in order to provide customers value for money as well as to build an effective image amongst them. However, PepsiCo is concerned towards creating a healthier future for planet and people around. PepsiCo develops its strategies so that they could grow along with its stakeho lders. They value for their stakeholders but Nestle believes in uplifting organizational performance which will ultimately help stakeholders to get higher returns. References Acquaye, A., Feng, K., Oppon, E., Salhi, S., Ibn-Mohammed, T., Genovese, A., Hubacek, K. (2017). Measuring the environmental sustainability performance of global supply chains: A multi-regional input-output analysis for carbon, sulphur oxide and water footprints.Journal of environmental management,187, 571-585. lvarez, M. E. P., Brcena, M. M., Gonzlez, F. A. (2017). On the sustainability of machining processes. Proposal for a unified framework through the triple bottom-line from an understanding review.Journal of Cleaner Production,142, 3890-3904. Bals, L., Tate, W. (Eds.). (2017).Implementing Triple Bottom Line Sustainability Into Global Supply Chains. Routledge. Cohen, B., Muoz, P. (2017). Entering Conscious Consumer Markets: Toward a New Generation of Sustainability Strategies.California Management Review,59(4), 23-48. Della Porta, M. G., Jackson, C. H., Alessandrino, E. P., Rossi, M., Bacigalupo, A., van Lint, M. T., Santini, V. (2017). Decision analysis of allogeneic hematopoietic stem cell transplantation for patients with myelodysplastic syndrome stratified according to the revised International Prognostic Scoring System.Leukemia,31(11), 2449. Eleftheriadou, M., Pyrgiotakis, G., Demokritou, P. (2017). Nanotechnology to the rescue: using nano-enabled approaches in microbiological food safety and quality.Current opinion in biotechnology,44, 87-93. Gallego-lvarez, I., Ortas, E. (2017). Corporate environmental sustainability reporting in the context of national cultures: A quantile regression approach.International Business Review,26(2), 337-353. Gouchev, V., Knowles, P., Sharp, R., Psaltakis, E., Lauro, T. (2017). Streamlined Multi Facility Residuals and Biosolids Master Planning with Triple Bottom Line Optimization.Proceedings of the Water Environment Federation,2017(14), 1121-1132. He, Q., Ghobadian, A., Ramanathan, R., Gallear, D. (2018). Managing knowledge in supply chains: a catalyst to triple bottom line sustainability.Production Planning and Control. Kim, Y. (2017). Consumer responses to the food industrys proactive and passive environmental CSR, factoring in price as CSR tradeoff.Journal of business ethics,140(2), 307-321. Lpez, B., Monfort, A. (2017). Creating Shared Value in the Context of Sustainability: The Communication Strategy of MNCs. InCorporate Governance and Strategic Decision Making. InTech. Paloviita, A. (2017). Food Security Is None Of Your Business?: Food Supply Chain Management In Support Of A Sustainable Food System.Operations and Supply Chain Management,10. PepsiCo. (2018). Sustainability Report 2016. Accessed on 7th April 2018 from https://www.pepsico.com/docs/album/sustainability-reporting/pep_csr16_091317.pdf PepsiCo. (2018). Sustainability Reporting. Accessed on 7th April 2018 from https://www.pepsico.com/sustainability/sustainability-reporting Rodger, J. A., George, J. A. (2017). Triple bottom line accounting for optimizing natural gas sustainability: A statistical linear programming fuzzy ILOWA optimized sustainment model approach to reducing supply chain global cybersecurity vulnerability through information and communications technology.Journal of cleaner production,142, 1931-1949. Rodrigues, S. M., Demokritou, P., Dokoozlian, N., Hendren, C. O., Karn, B., Mauter, M. S., Welle, P. (2017). Nanotechnology for sustainable food production: promising opportunities and scientific challenges.Environmental Science: Nano,4(4), 767-781. Sehrawat, S. (2017). Pepsicos Sustainable Strategies. IRACST International Journal of Commerce, Business and Management (IJCBM). Vol. 6. Pp. 142-143. Silalertruksa, T., Gheewala, S. H., Pongpat, P., Kaenchan, P., Permpool, N., Lecksiwilai, N., Mungkung, R. (2017). Environmental sustainability of oil palm cultivation in different regions of Thailand: Greenhouse gases and water use impact.Journal of Cleaner Production,167, 1009-1019. Sroufe, R., Joseph, S. (Eds.). (2017).Strategic sustainability: the state of the art in corporate environmental management systems. Routledge. Svensson, G., Ferro, C., Hogevold, N., Padin, C., Sosa Varela, J. C. (2018). Developing a theory of focal company business sustainability efforts in connection with supply chain stakeholders.Supply Chain Management: An International Journal,23(1), 16-32. Tischner, U., St, E., Kjrnes, U., Tukker, A. (Eds.). (2017).System Innovation for Sustainability 3: Case Studies in Sustainable Consumption and ProductionFood and Agriculture. Routledge. Wei, G., Alsaadi, F. E., Hayat, T., Alsaedi, A. (2017). A linear assignment method for multiple criteria decision analysis with hesitant fuzzy sets based on fuzzy measure.International Journal of Fuzzy Systems,19(3), 607-614.