Business Ethics and CSR

This article discusses sustainable development and how Interface, Inc. has adopted policies related to sustainability development. It covers the external and internal factors that influenced the company to move towards sustainable operations. The article also talks about the global impacts of sustainable development initiatives and how technology is being harnessed for sustainable development. Finally, it discusses how Interface is reacting to stakeholder influences.

Interface, Inc.
Running Head: Business Ethics and CSR
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Business Ethics and CSR 1
Contents
Introduction......................................................................................................................................2
Influences.........................................................................................................................................2
External Factors/Forces 3
Customers.................................................................................................................................3
Suppliers...................................................................................................................................4
Government Authorities...........................................................................................................4
Internal Factors/Forces 5
Employees................................................................................................................................5
Investors...................................................................................................................................6
Global impacts of sustainable development initiatives...................................................................6
Harnessing technology for sustainable development:.....................................................................7
Reaction to stakeholder influences..................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Business Ethics and CSR 2
Introduction
Sustainable development is a process where companies adopt a business practices which are
beneficial to it is every stakeholder including the environment. Literal meaning of sustainable is
to maintain a level (R, 2018). In the emerging era of economy, where many of the companies are
incorporating globally on daily basis, it becomes necessary for the existing companies to protect
the human and nature resources. Sustainable development in business is an approach where
companies, manage it is every factors such as profits, human resources and environment
(Sustainable Development Commission, 2018). Here this is important to now that sustainable
development is not a one-time activity but the same is an ongoing process. It is generally adopted
that an organization which works for the betterment of stakeholders along with for it is own
profit; earn more in comparison to other employees.
Human and natural resources are limited on this planet, so it is advisable to a company to protect
them in the course of their business. These days many of the companies are following the
practice of sustainability development (Kirby, 2018). Interface, Inc. (herein after referred as
“Interface”) is one out of such companies. This company is world’s largest carpet manufacture
and the same has taken great steps in order to comply with sustainability development. Policies
prepared by this company has included plans for betterment of society as well as environment as
the same had believe that these factors has important aspects in the development process of
business

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Influences
Influences in the regard to this subject, are the factor which motivates an organization to lead
towards sustainable development. These factors are majorly of two types one is external and
another one is internal. External factors are those who are not part of the organization but an
organization affect and get affected by two of such factors. In every organization, many of the
stakeholders are involved. These can be the living as well as non-living factors. But stakeholders
are those, who have some interest in organization’s business, in it is work culture and it is plans
and policies (Landau, 2017). Interface has also been influenced by some of these kinds of factors
while thinking about sustainable operations, which are discussed in detail as follow:
External Factors/Forces
Customers
Interface has number of customers. Customers are the main resource of revenue of a company.
Customers effect an organization in many of the ways and manner (Drucker, 2018). For a
company like Interface it was very necessary to maintain a level of it is customer satisfaction. As
Interface is the largest manufacturer of carpet for business and residential purpose all over globe,
it has a reputation and a moral obligation to provide a product of good quality. Customers these
days becoming aware towards their nation and want to rely for their requirements only on those
organizations, which do care of society and environment as well (Kokemuller, 2018). In case of
Interface, there were other markets competitors and to provide better customer satisfaction it
become necessary for interface to show it is product different from the other suppliers. This was
the influence which customers of the Interface has put on it is policies due to which Interface has
changes it is policies and include agenda of sustainable development in the same. As Interface is
a manufacturing company, it is customers are traders and not the end uses mostly. So such

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business traders wanted this company to be work in a manner which is seems to be profitable for
society as well. So that they can further easily sell out it is products. After the aforesaid study it
may state that customers have influenced policies of Interface in a very strong manner and this
was the reason why Interface has moved towards the sustainable operations.
Suppliers
As Interface is a manufacturing company, along with customers it has to deal with suppliers also.
Suppliers are the person who provide raw material to manufactures for preparation of final
material (Accounting tools, 2017). Suppliers these day are seem to be interested to deal with
such organization which think about society and environment in the performance of their
business. According to some government policies, it is require for suppliers to supply their
product to only those manufacturers which works according to sustainable development
approach. In the case of Interface, being the world’s largest manufacturer of carpets, it was
suspected to use raw material in a wrongful manner. In the process of manufacturing, wastage is
the main issue. Many of the tomes it has come to now that manufactures only focus on their
customers and do not consider interest of suppliers. If a manufacturer waste so many resources
during the manufacturing of final product, it create problems to suppliers also as they need to
change their policies and production according to the manufacturer’s requirement (Martin,
2018). In this way, it may state that Suppliers were one of the main forces for establishment of
sustainable operation by Interface.
Government Authorities
Government authorities works as the main factor in policy making of a company. When a
company does well, these authorities become more aware about the working cultures and
policies of the company (Faris, 2018). Interface is the largest manufacturer of carpet in the

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world; government has very quantitative interest in the same. For a leading organization like
Interface, it was necessary to plan something which is in interest of the society and environment.
As many of the people are dependent for many purposes to this company, there was a force of
government authorities and legislations to Interface which motivated the same to develop a
policy accordingly. Government authorities can never let an organization work, which does not
behave ethically. In case of Interface, government was expecting the same to work in the best
mode and in the best interest of the society, environment and it is all stakeholders. Further,
government authorities and orders thereof are the factors for a company which the same cannot
ignore. It may conclude that Interface has faced forces from government authorities and
department for the implication of sustainable development policy (Vitols and Kluge, 2011). This
was an external factor which adheres and influenced this company to adopt the sustainability
operations.
Internal Factors/Forces
Employees
Employee is that person, whose interest is directly attached to an organization. These days’
people want to get associated with those organizations which work in a responsible manner
(Enisa, 2018). No person wants to be in an organization having a bad reputation. It cannot expect
from an organization to have a sound reputation while misusing the environment. In interface,
thousands of employees are employed who are dependent on Interface for their livelihood. In
such scenario they wanted a surety from the company to run in a long term. This was one of the
reasons for interface to prepare the policies containing sustainable development and related
activities.

Business Ethics and CSR 6
Further, stake of employees in the company enhance when they have company’s shares or stock
options. As Interface is the largest carpet manufacturer of the world, it is employees are
dependent so much on this company. Salary is not only factor for the employees of a company
like Interface. In addition to this many of other factors such as career development and Job
security also matters (Lewis, 2018). In Interface, it was necessary to retain old employees as they
had their impact on the business processes, so interface has chosen to update itself by thinking
about society and environment as the same understand the expectations and insecurity of
employees.
Investors
A company depends on investors for the purpose of capital introduction. Investors have their
great interest in the working, policies and decisions of a company. According to the performance
of a company, investors decide their investment level in the same (Sun, 2018). When an investor,
invest his/her money in a company, he/she wants a handsome amount as return. But, the same
can only be possible when the company in which they have invested their money work well. If a
question arises like that which company does well? The answer is simple as that a company
which believes in overall and continuous development can only do well in long-term (Stoval,
2017). As Interface is a public company, many of the investors have invested their money into
shares of this company. They expect the company to work for betterment of the society as well
as they understand that that these two factors can affect company’s working. Further, although
Interface is the largest carpet manufacturer of the world and doing well, yet the same is
dependent on it is investor’s role of society and environment in or the working capital and related
funds requirement. So, in this situation it may presume that investors were one of the lead forces

Business Ethics and CSR 7
for Interface, who motivates the same to follow the practices of sustainable development and
environment protection.
Global impacts of sustainable development initiatives
Interface in order to maintain development at sustainable level has adopted the zero wastage
policy. Being a manufacture company, waste was accruing in lot of quantity in this company.
Such waste material was likely to be harmful for the environment. The most significant impact of
this policy on global level is saving of nature resources. As Interface is world’s largest producer
of carpets, it has to use natural resources such as water, land and air in huge quantity. By
recycling the same, it has save the said resources at a good level. Further, this company has also
motivating the other companies to follow the same practices. As Interface is not limited to a
nation, instead it is the largest manufacturer of it is field; policies of the same affect the whole
globe. (Jessan, 2018).
Mission of Zero wastage policy of Interface is to bring the level of wastage from it is producing
activities to Zero level by year 2020. Company has saved $433 million due to adoption of waste
elimination program till year 2010 (Roos, 2010). This Company is working as an idol for rest of
the companies across the globe as they can observe the benefits of ethical uses of resources by
looking at Interface.
Harnessing technology for sustainable development:
Internet is a way to connect people globally. As Interface has it is business in more than one
nation, it is not possible for this to update it is stakeholders with policies related to sustainable

Business Ethics and CSR 8
development without internet. Further, as discussed earlier, interface also has some external
stakeholders in addition to internal one. In this situation, without internet it was not possible for
this company to imply sustainable development policies. Business data are not static, they
change on daily basis. Cost of raw material, price of the product of competitors and changes
needed in the policies can only be observed through internet. In addition to this Interface also got
new technology ad updations via internet and implied in it is business process.
It has been noted that internet and technology play very crucial role in the implication of
sustainable development (Brown, 2017). With the help of internet and technology, Interface has
come to know about the government policies, changes thereon and expectations of the same from
this company. Further, this company is using technologies to check the effectiveness level of
zero wastage policy. Interface uses the internet and other technologies such as web portal, e-
mails, and various software in order to know it is stakeholder’s expectations. Without
technology, this company cannot continue it is sustainable business operations.
Reaction to stakeholder influences
After the required study of influences and external-internal forces of Interface, it is also
necessary to know that what are the ways in which Interface is reacting to it is a stakeholder.
Interface has not ignored the interest and expectations of it are stakeholders and implied
sustainable business practices. Here this is to include that Interface has prepared zero wastage
policy in which it is expected to have zero wastage after a manufacturing cycle. Further, vision
of it is founder Mr. Ray Anderson was that they would stop using virgin nylon yarn in the
process of stitching the carpets (Fishman, 2018). In the implication of this policy, Interface has
adopted internet and other technologies such as systems and software, upgraded machinery and

Business Ethics and CSR 9
internet. The studies internal and external forces influence Interface and cause if this this
company moved towards sustainable business operations. The policies framed and decisions
taken by Interface is effecting it is stakeholders. Whether the same is government austerities or
investors or any other stakeholder, they are seems to be satisfied with the working culture of this
company.
Conclusion
To conclude the topic stipulated in aforesaid discussion it may state that sustainable development
is becoming a requirement of every company these days. If a company wants to do well in long
term and want to retain it is reputation and faith in public, the same has to ensure about social
and environmental development. Interface is the largest producer of carpet for residential and
commercial purpose across the global and the same has prepared and developed policies related
to sustainability development. There were some external and internal factors which forced this
company to move towards sustainable operations. To ensure the development at a sustainable
level, this company has adopted a policy named “Zero Wastage”.
This policy has contained the possibilities and manner to re-use natural resources, which has
once used in manufacturing process an also ensures to bring the wastage level of resources in a
production process to zero level by the year 2020. By this way waste cost of this company has
reduced by 40 percent till year 2010. Further, actions taken by the company in order to assure
sustainable development has influences it is stakeholders in a positive manner. It has been noted
that many of the analyst has issued their reports mentioning positive aspects of Interface. It has
put an affirmative impact in the views of it is stakeholders

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Business Ethics and CSR 11
References
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Brown, K. (2017) The Internet: An Opportunity for Sustainable Development. [online]
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Kirby, A. (2018) Human Consumption of Earth's Natural Resources Has Tripled in 40 Years.
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