Environmental Impact of Consumer Goods

This assignment requires students to critically examine the environmental impact of a company manufacturing consumer goods. The analysis should focus on air pollution caused by production processes and propose practical measures for mitigation. The discussion should also highlight the importance of environmental responsibility for sustainable business growth and its positive influence on stock prices.

By student name
Professor
University
Date: 26 January ,2017

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Contents
Question 1…………………………………………………………………………………….2
Question 2…………………………………………………………………………………….3
Question 3…………………………………………………………………………………….3
Question 4…………………………………………………………………………………….6
Question 5…………………………………………………………………………………….7
Refrences……………..…………………………………………………………................9
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1)Based on the case study, the five important stakeholders of the company are-
Shareholders are the people who invest in the company, and depends on the financial of the
company to take important decisions for their investments. The annual report of the company
provides a snapshot of the financial position of the company and helps the shareholders in
getting the required information (Belton, 2017)Customers are another important stakeholder
who depends on the overall functionality of the company to get the desired results. The
customers depend on the annual reports and other public information that is given out for the
company, the social media platforms, the overall advertising that the company does to get the
desired information needed.Employees are the primary members on whom the workings of the
company dependent. It is important that companies must treat their employees as assets and
provide them with fair working conditions. If the employee’s functions well, the company will
function well. The overall involvement of the employees has become very prominent and they
also have a say in the business decisions of the company (Visinescu, Jones, & Sidorova, 2017).
The employees can get their share of information from the financials of the company and the
website of the company.Many companies depend on strong business partners to help in
conducting their operations smoothly. Nowadays retailers look for strong supply partners that
can provide them with the required products at the cheapest price possible. These supply chain
partners often provide ancillary services like transportation and distribution.Environment is one
of the most important stakeholders for the companies are environment in which the company
operates. It is important that companies should understand their responsibilities in preserving
the nature and the environment and work in sync with the overall well-being of the same.
(Gartland, 2017).
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2. A balance scorecard is a performance metric that is used to evaluate and enhance the overall
performance metric of an organization based on the various internal and external factors associated
with the same. A balance scorecard analyzing one important metrics for the RTXM is given below-
Particulars Financials Customer Internal Business
Process
Learning and
Growth
Management of
the raw materials
The management
of the raw
materials is an
important
aspect. The
company should
go for such
suppliers that
provide them
with better
resources at
cheap prices. The
cost of the raw
materials is
included in the
income
statement of the
company and has
an effect on the
The cost of the
raw materials has
impact on the
price that the
customer needs
to pay. It is thus
necessary from
the aspect of
customer better
management of
the raw materials
and its growth
and
sustainability.
The company
should also
include the
environmental
impact of
The management
of the raw
materials is an
important
internal business
process. The
company needs
to appoint
experts who can
advise on the
same and help in
ensuring better
management.
The company
also needs to
have timely audit
to ensure
stability of its
The overall
learning and
growth of the
company is
associated with
the overall
management of
the each and
every
department of
the company
(Visinescu, Jones,
& Sidorova,
2017). Growth
comes from
overall
development of
the company and
its various
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overall profit that
the company
earns (Prasad &
Chand, 2017).
generation of
products on the
total effect that it
is having on the
customers
(Dichev, 2017).
internal control. aspects. Thus it is
important that
company should
focus not on one
aspect but
overall growth.
The company
should also focus
on providing
requsite training
to the employee
so that they can
also contribute in
the growth of the
company.
3. The company is having an option to select between two suppliers who supplies the required
raw material for the company. A fair comparison between the two suppliers based on the overall
cost and profit is given below-
Particulars Super Cheap Green Fashion
Cost This supplier can provide a
large range of products
required by the company at
This supplier can provide only
limited products within a given
time frame and the overall
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competitive prices within the
time frame required (Elimam,
2017).
prices are comparatively high.
Effect on environment It was found that this supplier
was using thousand liters of
water to produce a range of
clothes and all this water was
discharged in the local river,
and no further steps were
taken to solve this issue. This
caused a lot of water
pollution, and made the water
unfit for drinking. The
residents were also hampered
as they were not getting clean
water. In short, they caused a
lot of harm to the
environment and took no
proper steps to solve this
issue.
In case of Green Fashion, the
suppliers are very keen on
being environmentally
sustainable and same ideas
have been presented on their
website. They promote
products that are more
environment friendly and have
provided the same on their
websites.
Labor Conditions Super Cheap does not
promote fair conditions for its
workers, it indulges in a lot of
child labor and does not
Green fashion provides fair
working condition to its
employees and promote
healthy work life balance. It
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promote work life balance for
its employees. (Mayntz,
2017).
ethically sources all its labor,
and helps in sustainable
development and growth of its
employees (Chron, 2017).
Based on this comparison it can be said that the company should go for that supplier that
promotes healthy work life balance among its employees and take the necessary steps for the
conservation of the environment. The believes of the supplier are same as RTXM, and the same has
been displaced on their websites. (Explaining auditors’ propensity to issue going-concern opinions
in Australia after the global financial crisis, 2017).
4. The life cycle assessment is a technique that is associated with the different levels of a product
cycle. It helps in assessing the overall environmental impact of producing a product from the initial
stage to its final delivering. It helps designers in understanding the overall impact of developing a
product. In case of RTXM, the company is a garment manufacture and it produces mainly jeans and
T shirt (Cayon, Thorp, & Wu, 2017). The LCA of jeans is given below, along with its possible
environmental and social implicationProduction of Cotton,Production of Fabric,Manufacturing of the
garment,Transportation and distribution,Consumer care,End of Life and Recycling
These are various stage of Life Cycle Assessment of a jean, the four-possible social and
environmental impact of the first two stages of this LCA are-Production of cotton requires a lot of
manual labor, and it is important that proper working conditions must be provided, else the workers will
suffer.Production of Fabric requires a lot of water and it can lead to a lot of water pollution.Production
of fabric in factories is also associated with several work place diseases and therefore safety of the
workers must be ensured in such a condition (Kohtamäki, 2017).The production of jeans is also
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associated with the overall dying of the fabric and maintenance of the same. This requires the workmen
to work in harsh conditions and hampers their health (Belton, 2017).
The company may take necessary steps in reducing the hazards for the workers to ensure
proper working condition for them. The company must try to reduce the overall impact on the
environment and ensure proper steps must be taken to reduce the effect of the same.
Protection of the environment and maintain sustainability of the same is important for the
company and its overall growth and development (Vieira, O’Dwyer, & Schneider, 2017).
5. Stakeholders are the backbone of any industry and it is important that investor protection must be
provided. In case of an automobile industry, the company can improve the overall return to its
shareholder, by increasing the overall operations of the company. The company can improve the share
price of the company by improving its liquidity position in the market, this in turn will improve the share
price of the company and that will improve the position of the shareholders in the market. The main aim
of the company should be to increase the credibility of the company and that will in return help in
providing better return to the shareholders. The company can improve its performance in the financial
sector, by timely completing all the statutory requirements like paying of taxes, filing of return, and all
other compliance related work. This will help the company in making a name in the market and help in
increasing the overall prices of the share. The automobile industry is a manufacturing based company
and the major impact is on the consumers and the retailers. It is very important that cost management
of the company is optimum so that the end consumer who gets the product after passing through so
many middle men is not hampered (Dichev, 2017). The production of automobile, use of fuel and use of
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the same by the consumers causes a lot of air pollution which is very harmful, the companie should
install safety measures to make sure that it can be reduced considerably. Protection of environment and
maintaining the overall stability is one of the prime responsibility of the company and it must focus on
all round growth and development. This is turn will help in increasing the stock prices of the company
resulting in an increase in value of shares (Prasad & Chand, 2017).
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References
Belton, P. (2017). Competitive Strategy: Creating and Sustaining Superior Performance. London: Macat
International ltd.
Cayon, E., Thorp, S., & Wu, E. (2017). Immunity and infection: Emerging and developed market sovereign
spreads over the Global Financial Crisis. Emerging Markets Review.
Chron. (2017). five-common-features-internal-control-system-business. Retrieved december 07, 2017,
from http://smallbusiness.chron.com/five-common-features-internal-control-system-business-
430.html
Dichev, I., 2017. On the conceptual foundations of financial reporting. Accounting and Business
Research, 47(6), pp. 617-632.
Elimam, H. (2017). The Role of Small Businesses (Small Scale Economic Projects) in Alleviating the Acuity
of Unemployment. International Business Research, 10(3).
Explaining auditors’ propensity to issue going-concern opinions in Australia after the global financial
crisis. (2017). Accunting and Finance, Carson,E;Fargher,N;Zhang,Y;.
Gartland, D. (2017). The importance of audit planning. Journal Of Accountancy.
Kohtamäki, M. (2017). Real-time Strategy and Business Intelligence: Digitizing Practices and Systems.
Finland: Palgrave Macmillan.
Mayntz, R. (2017). Networked Governance. Springer.
Prasad, P. & Chand, P., 2017. The Changing Face of the Auditor's Report: Implications for Suppliers and
Users of Financial Statements. Australian Accounting Review
Vieira, R., O’Dwyer, B., & Schneider, R. (2017). Aligning Strategy and Performance Management Systems.
SAGE Journals, 30(1).
Visinescu, L., Jones, M., & Sidorova, A. (2017). Improving Decision Quality: The Role of Business
Intelligence. Journal of Computer Information Systems, 57(1), 58-66.
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