Engineering Business Environment docx

Running head: INDUSTRIAL ENGINEERING.
Engineering Business Environment
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Engineering Business Environment1
Since the beginning of the Industrial Revolution, the large-scale business
organizations have been responsible for much of the environmental exploitation that has
occurred through the 19th and 20th century, mainly for the sake of collecting revenues. On the
other hand, according to (McDonough and Braungart, 2017) this exploitation has led to the
uncontrolled pollution of the environment through the emission of harmful toxins and other
substances such as carbon dioxide, carbon monoxide, and much more. In order to cope with
this problem, the government of UK has designed a proposal called the ‘Clean Growth
Strategy’ that aims to reduce the emission of greenhouse gases across UK. According to
(Obschonka et al. 2018) Large scale industries have begun applying this strategy in many
innovative forms which would not harm the environment and yet bring in equivalent revenue.
Industries such as food, automobile and so on get affected most by the application of such
strategies. Therefore the concerned managers have to incorporate sustainable developmental
approaches in such cases. In this discussion, the theories of Triple Bottom Line (TBL), Five
Capitals, Natural Capitalism, Cradle to Cradle, The circular economy and the balanced
scorecard will be explained briefly. Afterwards, the theories of TBL, and five capitals will be
studied in respect to the company of Nestle, the largest food and drink processing
conglomerate, and how these theories can be incorporated in this organization to generate
sustainability towards the environment.
The triple bottom line or the TBL framework theory recommends companies to focus
on social and environmental concerns along with their profits. In the context of traditional
business accounting, the bottom line on a revenue and expense statement is usually denoted
by either the profit or the loss. The theory is underpinned by the consideration of
environmental risks and damages into account and providing a full record of he estimated

Engineering Business Environment2
final cost (Bakkensen and Mendelsohn, 2016.) Therefore, the TBL framework adds a couple
more bottom lines namely social and environmental concerns. The aspect of social benefit
caters to the provision of meaningful opportunities like employability and cost effectiveness
to the society, while the environmental aspect is more concerned with positively impacting
the environment in the process. Most private sector companies entail a policy of CSR
(Corporate Social Responsibility) which obligates the public reporting of the company’s
positive social and environmental impacts.
To develop a vision of sustainability into an organization, the Five Capitals model is
used for services and products the organization offers. The vision develops through
considering the needs of an organization in maximizing value of every capital (Munoz-
Pascual, Curado and Galende, 2019.) To manage the capital assets in the longer run in the
best way is to do by sustainable development. It happens to be a dynamic process where an
organization can achieve proper balance amongst social, economic and environmental
activities. The theory of five capital is divided into natural capital, human capital, social
capital, manufactured capital and financial capital.
The theory of Natural Capitalism interlinks the interests of business and environment
where better customer satisfaction can be guaranteed while at the same time maintaining
profits as well as solving environmental problems can be ensured. The theory refers to the
resources and services provided by nature as Natural Capitals. There are four principles
underlying the theory which are focused on increasing the productivity of natural resources,
using biologically inspired models and resources, shifting to a “Service – and – flow” model
and reinvestment in natural capitals. Alternately, the Cradle to Cradle (C2C) model suggests
that the industries must maintain a perfect balance between their production and outcome and
the nature’s biological metabolism process by enforcing a holistic framework of building
effective economic, industrial and social systems that are also waste free in essence.