Economic Sustainability of Janssen UK - Essay Example

? Sustainability By of 2349 Words Introduction In the economic or business sense, sustainability refers to a set or a specification of strategies, initiative or actions to be implemented by an organisation so that future business prospects are not diminished (Costanza, 2007). Explicitly, sustainability seeks to enable a business to enjoy a future level of consumption, wealth, utility and welfare similar to those enjoyed in the present situations. Therefore, sustainability and business overlap in the areas of business operations and social and ecological impacts. The multidimensional perspectives of a business should therefore encompass several environmental and ecological issues and factors. In other words, in any analysis of a business’ performance, the social, cultural, health-related and monetary/financial aspects of its operations must be integrated. Thus, the idea of sustainability surpasses sustained business yields of welfare, resources and profit and touches on social and communal effects (Farley & Daly, 2004). This paper explores the benefits that Janssen UK, a medium-sized leading transnational research-based pharmaceutical company with its headquarters in High Wycombe might enjoy from sustainability, the leadership initiatives by which the company may become a leader in sustainability and how the organisation’s leadership might effect the sustainability change. The Benefits of Sustainability The big question that many people, especially company managers and CEOs ask is whether sustainability really works. In other words, are there real benefits of sustainability? For Janssen UK, the general and simplest response to this question is yes. This answer is supported by the fact that other top-ranking small-, medium- and large-sized organisations in the world are either practicing or introducing sustainability to their operations and practices. In addition, more workers now choose organisations or employers based on their environmental credentials, friendliness and corporate citizenship (Hawken & Lovins, 1999). Nonetheless, owners, CEOs and managers continue to question the costs and financial benefits even as they enjoy the benefits of sustainability. It is however generally supported that businesses that seek to reduce the amount of resources or materials used in the production of the same amount of goods and services or that seek to reduce cases of sick leave while improving staff retention rates definitely enjoy the financial benefits of sustainability (Von Weizsacker, 1998). That sustainability has immense personal and professional benefits is evidenced by the reports of organisations that successfully implement sustainability programs. The benefits of sustainability for Janssen UK may be largely categorised as financial, brand and reputation, human resources and employee engagement and environmental benefits. Under the financial benefits, Janssen UK may enjoy reduced energy and water usage, hence reduced production costs (Daly & Cobb, 1999). In addition, Janssen UK could enjoy reduced paper, waste and associated costs as well as reduced use of production materials. In some cases, the company may receive grants due to its improved sustainability practices. The other likely financial benefit of sustainability to Janssen UK is visibility of business performance as a result of mandatory reporting. As mentioned earlier, businesses that implement sustainability programs have numerous human resources and employee engagement benefits. For Janssen UK, these benefits include but are not limited to improved working conditions, increase productivity, improved attraction and retention of labourers, increased staff loyalty and lowered costs associated with improved human resource outcomes (Jackson et al., 2008). The third category of the benefits of sustainability, the brand and reputation benefits include better corporate social responsibility performance, lowered liability and risk management, improved competitiveness and market positioning and increased marketability. The fourth category is the environmental, which encompasses reduction in carbon footprint, resource efficiency, reduced emissions and strong position to influence the supply chain (Goodall, 2007). From these and other benefits not mentioned, it is quite apparent from business-oriented benefits-of-sustainability studies that sustainability-focused companies really outperform their peers who do not have or implement sustainability programs. In fact, many studies on sustainability and global strategic management conclude with reports indicating that companies committed to corporate sustainability programs and practices record above average performance in the financial markets, even during the financial crisis such as that of 2008 (Kearney, 2012). Thus, as a consumer marketer organisations that intend to perform better, Janssen UK must promote sustainability. This promotional move should be supported by the numerous principles and benefits of sustainability. For instance, the fact that small, medium and large companies all benefit from sustainability in one way or the other should encourage the firm to pick up the practice (Kearney, 2012). The evidently improved company or brand image in businesses that implement sustainability programs should also show other consumer marketers that sustainability is actually good for the much needed cost savings, competitive advantage, improved employee satisfaction, morale or retention and product, service or market innovation benefits (Hak, 2007). In addition, sustainability leads to business model and process innovation besides acting as a new sources of revenue and an effective risk management tool. Good sustainability practices and programs also bring about enhanced stakeholder relations. It is important that Janssen UK‘s owners, CEOs and managers talk about the benefits of sustainability to its employees and other stakeholders such as the local communities. While communicating about sustainability and its benefits, the managers and the CEO of the company should meet their team at the workplace (Kearney, 2012). If such talks are focused on the financial benefits of sustainability, it would be advisable to talk about the cost savings and market growth aspects of sustainability. On the other hand, if the employees are concerned with their reputation, Janssen UK’s managers should talk on the risk management and the stakeholder engagement benefits of sustainability and their effectiveness. Becoming a Leader in Sustainability There are several strategies by which Janssen UK may not only implement sustainability but also become a leader in this area. First, sustainability should be considered a long-term concept that seeks to address employees’, owners, managers’ and local communities’ core concerns and values (Von Weizsacker, 1998). Thus, the organisation’s sustainability programs and practices ought to address its future by empowering the local communities and its employees to meet and deal with changes and develop processes that aim at benefitting the entire community (Von Weizsacker, 1998). Leaders in sustainability should also focus on citizen involvement. In this regard, the company must improve on its accountability and develop environmental-friendly visions for the future. It is also important to keep track of the sustainability achievements and progress made so far, assessing whether the programs implemented meet the minimum and the basic resource needs. As sustainability is generally viewed as a business’ systems’ ability and capacity to meet its goals using the appropriate and locally initiated strategies, visions and mission, the company should have locally predetermined governance of its system, which would see it continue realising its short-, medium- and long-term objective. To be a leader in sustainability, the one type of sustainability that Janssen UK must shine in is financial sustainability, which implies that sustainability of its catalysts such as structures and personnel. Its financial sustainability mission, vision, structures and programs should therefore preserve, perpetuate, maintain and keep its financial stability and sustainability alive and going (Von Weizsacker, 1998). To become a leader in sustainability, Janssen UK’s sustainability programs will have to undergo the four phases of growth namely; the initial catalyst phase, growth phase, crisis phase and the sustainable growth phase. The initial catalyst phase refers to the first two years during which the company may experience high intensity involvement of a few initiators (Soederbaum, 2008). This period is followed by the growth phase, characterised by creative expansion that runs between 2 and 3 years. The third phase, the crisis phase is often characterised by conflicts in decision making processes, which could result in program collapse or reorganisation. The last phase is that of sustainable growth, epitomized by steady growth that leads to the fulfillment of the vision of a business (Von Weizsacker, 1998). The organisation should therefore prepare for these phases and their occurrence should not be taken as indications of failures; rather, these phases would indicate that the programs are on track. There are several factors that Janssen UK, as a business intending to be sustainability a leader, must be on the look out for and adequately address it is to successfully implement its sustainability programs. These factors include the components of an organisation’s system such as the entire business, policies, management, leadership, financial factors, and interventions and phase out (Soederbaum, 2008). With regards to an organisation as a while, the components that should be appropriate for sustainability leadership include the organisation’s building, the developing of organisational values and the developing of self reliance (Soederbaum, 2008). In these regards, the strategies by which the company can become a sustainability leader is via the establishment of credible governance, appropriate legal frame work, institutional ethics and transparency in the running of organisational affairs. It will also pay if the company influences its competitors to become collaborators and to create goodwill from local communities. The policy-related factors that affect sustainability and should be addressed by businesses seeking to become sustainability leaders are need-related policies, resource-manageable strategies, stakeholder participation, national plan-congruent policies, valid mission and vision and transparency of policies and strategies (Soederbaum, 2008). With regards to the above mentioned factors, Janssen UK should implement participatory analysis of employee, consumer and community needs and resources, design and develop strategies via stakeholder participation. It should also incorporate all stakeholders in decision-making and consult national plans. The business should also have clear policies and plans and implement a pilot sustainability project prior to the commencement of the actual programme (Hasna, 2009). It is also of the essence to develop realistic, irrefutable and quantifiable definitions of strategic activities and to maintain the permanency of business vision and mission. The role of good management in the attainment of sustainability leadership cannot be overemphasised. There are several management factors that Janssen UK should address to become sustainability leaders. These include accountability, feasibility studies for strategies, efficient administrative systems, transparency, communication, personnel management systems, infrastructure, roles and responsibilities and appraisals (McMichael et al., 2007). Others are regular monitoring, participatory planning and consensual decision making. With respect to management, the company must implement certain strategies to become a sustainability leader. That is, it must practice career planning for its employees, steer clear of high employee turnover and promote staff training. Regarding leadership, the factors that affect sustainability that the company should address include transparency in communication, technical skills, approaches to leadership, motivation and supervisory ability (McMichael et al., 2007). The promotion of democratic leadership and the enhancement of motivation of personnel are some of the leadership strategies for becoming a sustainability leader that the company should practice. Other such strategies are enhancing the interests of stakeholders, decentralising operations and transferring responsibilities to marginalized workers such as disabled persons and women. Financially, the company should use resources optimally and promote and ensure cost effectiveness and cost-beneficial interventions (McMichael et al., 2007). It is also necessary to avail all the needed financial resources and fight for the available national governmental and non-governmental funding. Effecting Sustainability Change For Janssen UK to become a leader in sustainability, the need for change leadership is quite apparent. In other words, sustainability in the company will demand for change leadership (Fuad-Luke, 2006). Thus, to design and implement the sustainability initiatives and strategies outlined earlier, the business should drive these strategies in a manner similar to any other case of change implementation. In all the stages of sustainability implementation, organisations require certain capabilities and leadership competencies. One of the resources by which the company can effect sustainability change is technology (Huesemann & Huesemann, 2011). In fact, in the foreseeable future, the comparative sustainability ratings of products might be posted next to their price tags. These ratings and comparisons will target the environmental, health and social impacts of good and services. Thus, the core and guiding principle is for Janssen UK and its leadership is to be well informed, especially about the market, which is fast becoming increasingly transparent to environmentally-conscious consumers. In other terms, in the near future, it will no longer be the choice of an organisation to pursue sustainability; rather, the pursuit of sustainability will be a necessity for business survival. Thus, a business’ leadership should consider sustainability a license not only for operation but also to woo customers (Fuad-Luke, 2006). The other way Janssen UK can effect sustainability changes is to consider sustainability and corporate social responsibility as holistic (Visser et al., 2007). Hence, sustainability should be presented to employees, owners, consumers and communities in a manner that appeals to and impacts on them, especially with regards to the sharing of the benefits of the existing programs (Nemetz, 2003). It is also important for the company to fully engage the entire business team including senior management, employees, clients and competitors. It also pays to understand stakeholder expectations. That is, the stance of one’s customers, staff and suppliers on sustainability and corporate social responsibility issues. The company’s management and leadership should also align the business’ case and vision for sustainability with its strategies and objectives (Nemetz, 2003). This alignment would go a long way in showing the connection between products, innovation, and quality and customer service strategies among other business aspects. Conclusion Many CEOs, owners and managers of businesses do not understand the concept of sustainability, let alone implement it. In some cases, CEOs have an idea on the dynamics of sustainability and how they affect businesses. Regrettably, sustainability is often understood to be ultimately about an organisation but not the whole community. Consequently, many a manager stumbles while trying to transit their businesses to become leaders in sustainability. The main reasons are misconceptions on what it takes to implement sustainability and become a leader in this area. In fact, many people treat sustainability in a manner similar to their treatment of other big corporate initiatives. The fail to note that sustainability is rather different from these other initiatives. As a matter of fact, sustainability change requires different leadership skills. For instance, the implementation of a strategy that promotes or incorporates sustainability requires leaders and managers to recognize the uniqueness of such efforts and then understand the most effective and appropriate advances for each stage of the sustainability initiative. Conversance with the myriad benefits of sustainability such as financial, brand and reputation, human resources and employee engagement and environmental benefits is also instrumental in the successful implementation of sustainability programs and practices. References Costanza, R. (2007) An introduction to ecological economics. The International Society for Ecological Economics. Daly, H., and Cobb, J. 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