Chinese-Multinational Company Alibaba Group

Alibaba Group
Managing People and Organizations
Sustainability
Student Name:
Student University:
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Contents
Introduction................................................................................................................................2
Sustainability..............................................................................................................................2
Sustainability Characteristics.....................................................................................................3
Environmental Sustainability.................................................................................................4
Social Sustainability...............................................................................................................5
Economic Sustainability.........................................................................................................6
Sustaining Corporation...............................................................................................................6
Conclusion..................................................................................................................................8
References..................................................................................................................................9
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Introduction
In the E-commerce industry, the specialized Chinese-Multinational Company Alibaba
Group is running a business of internet technology or retail. In 1999, the organisation was
established with its “US$231 billion” current market value (Straits Times, 2014). The
company offers B2B, C2C, and B2C through web portals where its best feature is social
sustainability on the suiting while creating values on the Alibaba Group for SMEs. Also, job
opportunities are provided to the society by the company (ESG Report, 2018). Alibaba is
running various projects related to environmental protection, education, and medication.
Moreover, fulfils the responsibility of society as the part of company’s business model.
Alibaba’s mission is to operate, improve and sell the competencies while business
transformation providing marketing reach and technology structure to help dealers, brands
and new technology up-gradation for its operations and customers (Udara Willhelm
Abeydeera, Wadu Mesthrige, & Samarasinghalage, 2019). In this essay, the discussion is on
sustainability characteristics applied to the company as per suggested by the Benn, Edwards
and Williams and the UN (United Nation) including environmental, economic and social as
well. Also, analysing the relatable sustainability approaches undertaken by an organisation.
Sustainability
In this world, it is essential to have social knowledge from environment to business to
social learning and technology. Further, discovering future, technology development and
reduction of carbon emissions is sustainability. Also, social, political and economic factors to
provide awareness are related to options for growth by new legislation and job opportunities.
It consists of maintaining the planet balance, sources related to renewable sources and
environment protection considering innovation with human health as well. Moreover,
sustainability helps while improvisation in urban and rural areas changing technologically
and economically for competing protection and needs (Jordaan, et al., 2017). There are many
programs related to sustainability the company can pursue with the mission and core values.
It requires maintaining a charitable system with driving technology established to benefits
extension of effective technological capabilities.
Benn, Edwards and Williams agreed with sustainability being a primary part in
relation to the factor of contribution and competitive advantage in the decisions that are
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impacted made while making investment (Benn, Edwards, & Williams, 2018). The
characteristic of environmental sustainability is applied to the company as working of the
company while helping in executing the ecological business programs for sustainability with
the enterprises. It is differently divided in terms of cloud computing and manufacturing retail
factor for the corporation as scandals significantly in sustainability that is increasing
commonly. Sustainability is becoming trendy in the corporation nowadays among the brands
and businesses (Yang & Huang, 2015). Sustainability helps in evaluating the strength and
opportunities in the emerging change in the environment.
Alibaba Group uses the strategy of integrated sustainability as its core business
strategy where it consists of brand value and cost reduction. It develops the company’s
business environmentally and social with utilizing resources effectively and waste reduction.
In today’s time, struggling of companies includes corporate and sustainability business
strategy into their processes of business (Alibaba Group, 2020). To achieve goals is vital for
sustainable development that helps the company to work towards gender quality, universal
poverty reduction, and economic growth with several job opportunities, better education and
health, strong economy, living standard improvisation, handling climate change, and helping
planet as a whole. Thus, sustainability is solving problems universally with the help of
management and consumption of the environment (Tieto, 2019).
Alibaba attains it by implementing and providing charity projects while focusing on
technology to achieve goals such as removing trade problems in future contributing in
economic and social development with providing benefits and positive environmental
practices. Moreover, the company faced challenges with impacting conduct of employees,
offline retail influences, urban and rural inequalities, manufacturing and distribution
infrastructure, unclear laws with governance compliance under China, “Alibaba Intellectual
Property Protection Platform” safety, and one-trade focused (Brennan, 2019). However, the
key objective of the company is growth achievement with sustainability by providing access
to online marketplace, investment for social responsibility and distribution system expansion
describing the company’s overall profit (UNCTAD, 2017).
Sustainability Characteristics
Corporate Sustainability’s characteristics help and organisation to sustain brand image
and goodwill while improving the focus, and reducing and managing risks among the
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stakeholders in the business. It is essential to focus on positive public development and
relations, business goals for issues reduction for increase in better performance and
workforce maintenance and equity funds reduction. The becoming trend of sustainability in
the company applies the characteristics of environmental, economic and social in the recent
years of electronics industry within the Alibaba Group (Beesley, 2016).
Environmental Sustainability
Environment sustainability in the company focuses on carbon footprints, carbon
emissions, and packaging products reduction while product delivery. Further, the suggestion
from “60% of global consumers” was need of product packaging to be sustainable while
“50% prefer that to be carbon-neutral” (Tambjerg, 2019). The characteristic of environmental
sustainability applied to the company Alibaba Group working with the enterprises helped to
execute the programs related to the business being ecologically sustainable with the
possibility of divisions differently such as manufacturing retail and cloud computing. Cloud
computing in the business is majorly about the sustainability in environment as computer
hardware reduction. The ideas were developed in relation to effective sustainability such as
innovative cooling system launch useful in reducing energy costs in the company with the use
of lake water (Goodall, 2017).
In Alibaba Group, environmental sustainability is applied due to the company’s
partnership with “Cainiao Network” and other major Chinese companies taking a step
towards green logistics through “Cainiao Green Alliance” that consists of “Green Packaging”
utilized package recycle bins, degradable courier bags and tape-free boxes by the company.
Also, the fulfilment of environmentally sustainability by the company is done with installing
solar panels and green warehouses. So, Alibaba Group used the algorithm of packaging
optimization that the “packaging material by 15%” decreases (Chou, 2018). The company
developed relationship with the consumers, government, and other stakeholders of high
standard. Moreover, the feedback is taken from employees within the company based on
environmental sustainability helping to achieve sustainable goals.
The Alibaba Group’s sustainability is focused on creating long-term value for
sustainable profits also creating 100 million jobs and serving to the 2 billion consumers.
According to the company’s management, the company is suggested with the motive to drive
the mission of achieving sustainability. In 2016, the company donated US$47 to the
environmental fund for environmental pollution reduction and spending 0.3% of their annual
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turnover of US$15.7 billion (Business Wire, 2017). Further, the steps taken by Alibaba
Group for understanding environmental sustainability are that in North China, Alibaba
planted 55M trees of the Ant Forest program as portion. Another is using 100% renewable
energy in Hebei and company’s data center in Zhangbei is running the water and solar power
with effective technology in Northern China (Gray, 2018). The motive of Cainiao network is
to make 50% packaging material within the company as substitute with 100% biodegradable
products. Lastly, Alibaba Group’s Cainiao network reduced the packaging by 15% and
applied this technology to 250 million courier or delivery boxes in 2018 financial year
(Progress Report, 2019).
Social Sustainability
Social sustainability in the terms of the company applied to Alibaba Group is devoted
to the society strongly. The poverty relief fund of the company is to implement of removing
the families and communities that are poverty-stricken as a motive that needed to be achieved
as a goal of social sustainability. The company on the poverty-relief fund in 2017 spend 10
billion while focusing on women empowerment, rural development and commerce
advancement. Also, organisations focus on social and health sustainability as well. Alibaba
Group entered in partnership with various foundations for promoting social security to other
individuals. In China, the company is supporting rural development and giving opportunities
to the individuals as well for living standards improvisation (Hsu, 2017). Also, helps in
selling agricultural for residents growing to urban consumers accessing high-quality products
efficiently.
Moreover, the company’s execution of “reunion platform” is for providing safety to
the China’s children and so the company considers a crucial part to make sure about the
social sustainability. Alibaba found 2,777 missing children and reflection rate with the help
of law enforcement authorities. Thus, the innovative ways was evaluated to fulfil the
company’s social responsibility where one of the initiatives for the children by providing
education coming under BPL (below poverty line). It is possible by charging no fee in
colleges and donating books where the company also focuses on environment and society
with the environment of technological advancement and climate change, giving all of them
more preference than profits to earn as well (Tao, 2018). In the corporation, sustainability in
the business viewed in terms of social, economic and environmental factors of e-commerce
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adopted by the company while helping in strength and opportunities evaluation in the
emerging change in the environment.
Economic Sustainability
Economic Sustainability for the company is to give economic growth for long-term
without any destruction affecting community’s cultural and social aspects. In the business,
sustainability consists of brand value and cost reduction while developing the company
environmentally and socially. Alibaba’s economic sustainability is maintaining the sector of
non-profit by investing with the help of the “University of Mary Washington (UMW)
Foundation”. The comparison shows equal importance of environmental and social with the
help of resources utilization effectively and waste reduction. There are many service
providers company in engaged with creating an opportunity of substantial employment
(World Bank, 2019). Further, the company’s local operations, logistics, and marketing have
open opportunities.
Alibaba’s reason for its applied economic sustainability is its Ali-research center in
the marketplaces of retail delivering to the residents indirect and direct with over 36 million
job opportunity. Moreover, resources conservation is covered in economic sustainability and
its integrated part for the value of sustainability where company use it for long-term in
stabilizing (UN, 2017). Thus, sustainability’s natural resources conservation for long-term is
an economy’s part. In the fiscal year of 2018, the company’s innovative technology helped in
nurturing growth inclusively in the economy. China’s retail marketplaces provide women
further employment opportunity as compared to male workers. The management of Alibaba
makes sure about not creating any sort of environmental or social issues due to economic
environment (Dautovic, 2019). Moreover, it not only consists of earning profit but using of
resources efficiently by the company.
Sustaining Corporation
The sustainable corporation structure was redesigned according to Benn, Edwards and
Williams by observing the Tokyo Electric Power co. and British petroleum corporate
scandals. The vision of the company consists of sustainability also including bottom line’s
integral line as Alibaba Group’s initiatives helps in maintaining its corporation sustainability.
Sustainable Corporation’s one of the characteristics is “waste reduction” evaluating the
method used by the company for reducing waste in the production (Diermeier, 2012). Also,
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the significant feature of engaging employees and sustainable corporation is employee
engagement as company’s successful initiative. The recycling program by the Alibaba Group
in the community or management program involves direct compromising for employees
while focusing on sustainability initiatives.
According to Benn, Edwards and Williams, the new approach of sustainability is
traditional economics including natural and social capital in the social and ecological
environment. Natural and social capital describes the world’s stock of ecological resources
preserving and natural assets. Moreover, Alibaba’s case shows the entering of its partnership
with the organisation of environmental protection for water resources preservation in a
country. The environmental and social capital helps in gas emissions and pollution reduction
in the environment. The essential readings in UN suggests the goals of sustainable
development that the UN member states are directly indicated to use for maintaining the
environmental and economic sustainability in the next 15 years (Brandon, 2017). Thus,
sustainability is crucial for success in business with products and services being sustainable.
The sustainable issues considered in the essential readings of UN due to carbon-
emissions, climate change and water shortage. In today’s time, companies are focusing on
sustainability largely because of polluted environment. In order, Alibaba to cut the pollution
and the gas emissions execute the gas logistics in which there will be degradable green bags
production. The suggestion by UN in today’s businesses is to focus and transform the
sustainability business solving the problem of environmental degradation (Johnson, 2019).
Also, suggested sustainable characteristics that are system corporate strategies, enterprise
integration, and market transformation. The company needs to focus on technology
advancements as stated by enterprise integration for sustainability and introduce a model for
operational efficiency improvisation.
In technology advancements, Alibaba’s sustainability goes for deployment
performance of block chain applications also with commercial value sustainability. In the
business, sustainability according to the UN consists of brand value and cost reduction
developing the company environmentally and socially. Moreover, companies are struggling
with corporate business strategy and sustainability while processing in their business where in
Alibaba, system corporate strategies and market transformation is directed towards the CSR
(corporate social responsibility) helping in different ways and contributing to environmental
attributes as well (Sutton, 2019). Alibaba’s sustainability integrated strategies into business
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structures and operations concluding increased use of carbon neutral. Also, adopting carbon
negative where the company requires using resources in efficient and effective manner.
Conclusion
To conclude, operating globally is the success of Alibaba Group being a sustainable
corporation with company having more opportunities for sustainable improvement through
models of sustainability and supply chain. Currently, businesses are focusing on
environmental sustainability with the change in emerging environment as natural resources
consumption level and growing population reflects a negative influence on the environment.
The non-conventional energy resources used by the companies help in achieving sustainable
development and promote natural resources conservation. Also, taking step towards the same
that requires execution with planning. The integration principles of sustainability helps in
every business’s decision, making sure about the environment principles in the company’s
operations, and supply of environmentally products and services. Alibaba is defines as
sustainable corporation because of following the sustainability principles by executing the
Cainiao sustainability network supplying such as Heat Resistant Tumble Cups, environmental
outdoor water filter, and LED solar outdoor campaign lantern. Thus, the company segmented
its structure of business into 25 operations for making sure about the Alibaba’s sustainability.
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