What is Sustainability - Essay Example

? It is increasingly well-established in the literature that most business reporting on sustainability and much business representative activity around sustainability actually have little, if anything to do with sustainability.” Table of Contents What is sustainability? 4 Description of 3M 4 Discussion 5 3M’s Sustainability Report 5 Compliance with GRI guidelines 6 GRI principles 6 G3 guidelines 7 3M and GRI 3 principles 8 Sustainability report and academic literature 9 Analysis 10 Assurance of the sustainability report of 3M 10 Definition of Assurance and its importance 10 Values of assurance of GRI 11 Findings 11 Conclusion 12 Recommendation 12 References 13 Introduction In this age of globalization and economic downturn, sustainability is the most essential desire of each and every organization, irrespective of segments. This is because if an organization fails to retain its sustainability then it may not prosper or enhance its dominancy in this competitive market among other rival players. Keeping this fact in mind, most of the organizations desire to retain its experienced and talented human resources. As they act as the prime resource of an organization (3M) thereby assisting it in the development of varied types of inventive eco-friendly products and services so as to satisfy the changing needs and requirements of the customers. By doing so, the brand image and profitability of the organization might get enhanced thereby amplifying the competitiveness and reliability in the market among others and such a strategy might also act positively thereby amplifying the chances of success and prosperity in the long run among other rivals. Thus, it might be clearly stated that sustainability is the prime criterion of an organization and it might get fulfilled by presenting environmental friendly products and services thereby satisfying the needs and requirements of the customers. This report is divided into five phases. The first phase describes the importance and effectiveness of sustainability along with this it also includes a brief description of the policies and principles of GRI. The report also highlights the relationship of the sustainability report of 3M with the academic literature so as to evaluate its effectiveness over society, products and services and customers. It also specifies the importance of assurance and its standards along with conclusion and recommendations. What is sustainability? Sustainability is described as the socio-ecological procedure that helps in fulfilment of changing needs and desires of the customers. It is done by presenting eco-friendly products at a competitive price thereby retaining the eminence of the environment. It is done only to retain the quantity of the non-renewable resources of the environment so that it might be used for the future purposes as well. Along with this, development of eco-friendly products also helps in reducing the level of pollution thereby maintaining the uniqueness of the environment. Hence, it might be depicted that sustainability helps in enhancing the economic, environmental and social impacts by developing various inventive products or services to amplify customer base. Description of 3M 3M is one of the most renowned and branded American multinational conglomerate, established in the year 1902. 3M is regarded as Minnesota Mining and Manufacturing Company, headquartered in the regions of St. Paul, Minnesota, U.S. After starting its operations in the continent of United States, very soon it expanded to the entire globe. So, it enhanced its total assets and revenues by $ 31.6 billion and $ 29.6 billion by the end of the year 2012. Along with this, the operating income also increased by $ 6.1 billion thereby amplifying its reputation and brand image in the market among other rival players. It is mainly due to the development of adhesives, laminates, passive fire protection, dental products, abrasives, electronic materials, medical products, car-care products, and wax and car shampoo. Other than this, it also presents products for the treatment for the exterior, interior parts of the vehicles in an effective way. Therefore, due to the presence of wide variety of products, its total sale enhanced to $30 billion as compared to many other rival players. Discussion 3M’s Sustainability Report In order to enhance the level of competitiveness and sustainability in this age of intense rivalry varied strategies and policies are implemented by various organization. One such organizations that implemented a wide set of policies and guidelines to retain its sustainability in future is 3M. It is done to retain its prosperity in developing varied types of inventive and eco-friendly products and services so as to meet the changing needs and demands of the customers of this age. Along with this, presentation of eco-friendly products might also reduce the impacts of pollution to a certain extent as compared to other rival players. As a result, the level of loyalty and reliability of the brand within the minds of the customers might get enhanced thereby amplifying its corporate social responsibility. However, this is possible only due to the presence of three strategic policies or guidelines as mentioned below: Economic success - It is one of the prime pillars of success of 3M. This is because; presentation of distinguished, realistic, and ingenious solutions and products might enhance the level of relationship with the customers. This helps in enhancement of the level of sustainability and reliability in the market among other rival players. Environmental stewardship - In order to address the environmental challenges, varied types of realistic solutions and products are offered to the customers. This might help the organization in enhancing the demand and total sale of the products thereby amplifying the profitability and productivity of the organization among others. It is extremely essential for an organization to retain its prosperity in the market among other rivals. Moreover, it might also reduce the threat of new entrants thereby enhancing the power of supremacy in the market. Social responsibility - The management of 3M desire to offer eco-friendly products and services to our customers so as to reduce the carbon footprints and enhance sustainability of the organization in the market among others. Therefore, due to the implementation of such types of strategies and policies, the level of sustainability might get improved along with brand value and equity. Compliance with GRI guidelines GRI principles General reporting initiative (GRI) mainly desires to offer a set of principles and guidelines for the organization so as to maintain pollution and contamination free environment. Along with this, it also tries to safeguard the primary and secondary needs of the labours so as to improve their living standard and life style. By doing so, the level of poverty and distress might get reduced to a significant extent as compared to others. Along with this, GRI principles also desire to maintain economic stability of a country or nation by presenting varied types of inventive products and services so as to increase the range of customers and this might also improve the financial state of the organization thereby amplifying the gross domestic and gross national product of the country. As a result, the economic condition of the state or a country might get enhanced as compared to other neighbouring states in the entire globe. Apart from this, GRI principles also desire to present eco-friendly products or services to its customers so as to reduce the impacts of pollution over the environment. The ill effects of green house gases might also get reduced with the utilisation of renewable resources and fuels. It might enhance the rate of greenery and bio-diversity in varied regions of the entire globe thereby reducing the rate of deaths and improving the birth rates. Therefore, keeping these facts in mind, GRI designed varied types of safe and secured principles that might amplify the level of sustainability. G3 guidelines G3 guidelines are mainly composed of two parts, reporting principles and standard disclosure. This means, the ways by which the reporting principles offers impacts over the elements of the environment (economic, environment and social). According to the principles of G3, each and every organization needs to enhance their level of sustainability in the market among others. It might be done by developing varied types of inventive products and services so as to cope up with the changing needs and desires of the customers. However, the products developed by the organization need to be entirely eco-friendly in nature so that it may not hinder the social well-being of a nation so that rate of deaths gets reduced to a significant extent as compared to others. The development of eco-friendly products might reduce the level of green house gases within the atmosphere thereby declining the intensity of pollution in the entire globe. As a result of which, the level of global warming as well as depletion of the ozone layer might get reduced thereby enhancing the rate bio-diversity. This is extremely essential for a nation to enhance the living style and scope of the citizens thereby reducing the negative impacts of contaminated gases (Visser & et. al., 2010, pp. 445-456). Apart from this, the management of the organization might also try to present an extremely safe and secured working environment and modern equipments for its workers. This might help in safeguarding the democratic rights of the humans that acts as the cornerstone for the growth of the organization in the entire globe among others. Moreover, due to the presentation of safe and trendy machines, the inner morale and confidence of the employees or labours might get enhanced thereby amplifying their level of performance and productivity as well. As a result of which, the output and profitability of the organization might get enhanced thereby improving the demand of the products or services. Along with this, with the increase in the demand of the products, the total strength of the customers might also get enhanced thereby amplifying the rate of sustainability. So, it might be depicted that creativity and intelligence is extremely essential in this age. As it, might help in development of varied types of inventive but eco-friendly products thereby enhancing the sustainability and image of the organization in the market. Along with this, development of such type of products might surely amplify the loyalty and consistency of the brand in the market among others. Moreover, due to the enhancement of loyalty, the level of reputation and profitability of the organization might also get improved to a considerable extent among other contenders. 3M and GRI 3 principles In order to retain the level of dependability and sustainability, 3M decided to balance the rate of productions with demands or requirements of the customers. It might be possible only if the organization of 3M desires to recruit extremely talented and experienced work forces of diverse cultures and creeds so as to develop value-added products. The presentation of varied types of qualitative and value-added products might prove effective in gratifying the changing needs and demands of the customers thereby amplifying the reputation and brand equity of the organization. As a result, the level of loyalty and trust of the customers might get enhanced thereby reducing the rate of switchovers. This might surely offer positive impacts over the brand image and sustainability ratio. Such a strategy is extremely beneficial for an organization operating in an extremely competitive market and so extremely highlighted within the principles of GRI 3, which means sustainability entirely rests over innovation or creativity. However, creative or inventive products need to be entirely free from pollution causing gases and disease causing germs. Only then, the living condition and economic well-being of the society might get enhanced resulting in amplification of the entire standard of the nation among others (Mallin, 2009, pp. 345-456). Apart from this, the organization of 3M also desires to present inventive products with the help of modern techniques and equipments so as to reduce the impacts of wastes and contaminated particles. Along with this, if the rate of green house gases might get reduced then the quality of air might also get enhanced thereby reducing the hazards of climatic changes. Such type of strategy might enhance the corporate social responsibility of the organization of 3M as per the guidelines of GRI 3. So implementation of such of strategies might not only improve the perspective of the customers towards the brand but also enhance its distinctiveness in the market among others. Hence it might be stated that, to maintain distinctiveness, needs and requirements of the society might be balanced by presenting eco-friendly products thereby declining environmental impacts. Similarly, the organizational management of 3M desires to present a very safe and secured working environment by introducing modern machineries. As per GRI 3 principles, the organization might also invest on the employees so as enhance their inner talents and skills. This might prove effective for the organization of 3M to enhance its level of productivity and performance in the market among others (Mamic, 2004, pp. 456-567). Hence, it might be clearly depicted that the organization of 3M entirely follows the rules and guidelines of GRI 3 and so its level of image and sustainability is also extremely high in this aggressive market and so in spite of economic downturn, the organization of 3M might retain its stability and portfolio for long run (Global Reporting Organization, n. d.). Sustainability report and academic literature According to academic literature of Gray (2010), sustainability acts as catalyst that helps in further growth and development of an organization among other rivals. Although, it sounds like a buzzword it is extremely difficult to attain and retain for a long time. This is because in order to attain and retain sustainability of an organization, numerous alterations take place within the mindset and attitudes of the managers or leaders. So that sustainability might be attained, by presenting value-added products to the customers thereby enhancing the level of relationships among them and not by hindering their interest and trust over the brand or organization. Therefore, it might be stated, as per academic literature that sustainability rest on the following points mentioned below: Environment - The products presented by the organization need to be entirely eco-friendly so that it might meet the needs of the society by declining the environmental impacts. Society - The products might be developed in such a way so that it might be used freely by individual of all living standards and classes and it not offer any sort of distress (depletion of the ozone layer, death of green plants and trees, varied types of diseases and many others) over the community or society. CSR and ethics - The organization might try to offer safe and secured working standards along with equal wage structure so as to enhance the inner morale of the employees. Along with this, proper training program might also be implemented for all so as to maintain an ethical and unique environment within the organization. Therefore if all these above mentioned points and strategies are followed by an organization in this competitive age, then sustainability might surely be attained within a very small time frame and may be retained for long period of time (Gray, 2010, pp. 47-62). Analysis Assurance of the sustainability report of 3M Definition of Assurance and its importance Assurance is described as the trust or confidence or guarantee that the customers or stakeholder or shareholders comprise over the features of a specific product or services. Therefore, in order to maintain such type of assurance over the brand or product, the organization need to implement varied types of inventive but qualitative raw materials. So that it might surely enhance the health or well-being of the individual without offering any negative impact over the society or environment. Therefore, if such a belief or trust might be retained, then the product or the brand might surely attain sustainability in long run and as a result of it, the profit margin and revenues of the organization might get enhanced to a significant extent among others. So, it is extremely essential to maintain and retain assurance and trust over the brand within the minds of the customers (GRI, 2006, p. 48). Values of assurance of GRI As per the principles of GRI, an organization might undergo varied types of testing methods such as quality control procedures, testing in each and every step, so as to maintain quality and assurance. Only then the customer might remain loyal to the brand and its products thereby amplifying its reputation and brand value in the market among others. Along with this, the distinctiveness and equity of the brand might also get enhanced in the market among other rival players. So assurance acts the bottom-line of any organization or product to retain its sustainability in long run (Visser & et. al., 2010, pp. 345-456). Findings After analysing and evaluating the above mentioned points, it might be depicted that, sustainability is the most essential requirement of 3M. However, it might be attained only by developing varied types of inventive but eco-friendly products so as to fulfil the demands and requirements of the customers in an effective way. Apart from this, the products might be developed in such a way that, it does not present any sort of harm to the society or environment. Only then, the level of assurance or trust over the products or brand might be retained within the minds of the customers for longer period of time as compared to other rival players in this market (Christensen, 2003, pp. 345-456). Conclusion Conclusively, it might be depicted that sustainability acts as the cornerstone of an organization. However, it is a concept that might be attained only by maintaining a balance with the needs and requirements of the customers thereby declining the impacts of the environment. Moreover, in order to develop qualitative products, modern and effective machineries need to be implemented along with varied types of quality testing procedures. Only then, the product developed by the organization might surely attain assured results and trust within the minds of the customers for longer period of time. And as a result, the position and dominance of the organization might get enhanced thereby amplifying its value in the market among others. Thus, sustainability mainly rests on technology and human resource of the organization. Recommendation In order to attain a sustainable image in the market, an organization (3M) need to offer high concentration over the implementation of modern machines. Along with this, high end training programs also need to be implemented within the employees so as to enhance the inner skills and talents. Such type of training programs might also improve the level of performance and productivity of the organization and employees as well. Only then the relationship or bonding of the employees and the higher authority might get enhanced resulting in amplification of the uniqueness and reputation in the market among other rival players. So, development of inventive eco-friendly products is extremely essential for an organization to enhance its sustainability for long run. References Christensen, C. (2003). The Innovator’s Solution, Creating and Sustaining Successful Growth. Boston: Harvard Business School Press. Gray, R. (2010). Is accounting for sustainability actually accounting for sustainability…and how would we know? An exploration of narratives of organisations and the planet, accounting, Organizations and Society, 35,1, pp. 47-62. Global Reporting Organization (No. Date). G3.1 Guidelines. [Online]. Available at: https://www.globalreporting.org/reporting/G3andG3-1/g3-1-guidelines/Pages/default.aspx [Accessed on 12th December, 2013]. GRI. (2006). Sustainability Reporting Guidelines [G3]. Amsterdam: Global Reporting Initiative(GRI). Mallin, C, A. (2009). Corporate Social Responsibility: A Case Study Approach - Page 141. New York: Springer. Mamic, I. (2004). Implementing Codes of Conduct: How Businesses Manage Social environment. London: Sage. Visser, W. & et. al. (2010). The A to Z of Corporate Social Responsibility. Germany: JohnWiley & Sons. Read More