RTX Clothing Company Case Study | Sustainability Practices

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RTXM clothing company Case
study
Q1. RTXM clothing company stakeholders
The following are RTXM company stakeholders;
Employees: These include the company’s employees and employees in the supply chain.
Employees will benefit from sustainability practices of the company in several ways. First,
employees will be paid according avoiding underpay either in the company or in the supply
chain of the company. Secondly, employees’ health and safety will be guaranteed while working
in the company. Lastly employees with have more opportunities and promotion as result training
from the company.
Shareholders: Sustainability in the company will impact shareholder negatively in the
short term and positively in the long term. In the short term, sustainability practices will require
resources to implement and also increase the cost of clothing in the company. This will reduce
short term dividends of the shareholders. In the long run, shareholders will get high sustainable
returns to their investment as a result of increased company reputation and environmental and
social sustainability.
Local communities: These include the local community living near the company and it
suppliers in the supply chain. The local community will benefit from clean environment, safe and
healthy neighborhood and abolishment of child labour. Therefore, the local communities will
benefit from low environmental and social impacts.
Customers: Sustainability in RTXM Company will increase the price of clothing to its
customers. This will deny customers low price clothing. On the other side, customers will benefit
from high quality clothing from the company. The customers will also benefit from positive
projects to the environment that will be undertaken by the company.
Suppliers: Sustainability in the company will increase the reliability of payments and
long term contract with it suppliers. Suppliers will be able to get payment on time and enter in

long term contacts that will enable the success of suppliers in the business. Suppliers will also
get support on their products from the company in the process of implementing sustainable
supply chain.
Q2. RTXM Balanced Scorecard
Financial
Indicator:
Ability to meet all financial obligation
Increase revenues
Maximization of profits
Customers
Quality Clothing
Timely delivery
Business Process
Indicators;
Reduce carbon emission to the environment
Proper waste management
Safe and healthy working environment
Innovation & Learning
Indicators;
Training of employees
New designs
The above balanced scorecard outlines performance key indicator in RTXM Company to
measure success in sustainability practices. The Balanced Scorecard gives a overall performance
of the company in different perspective. Theses perspectives are Financial, Customers, Business
Process, and innovation and learning in the company. Finance performance indicators will be the
ability of the company to meet its obligations, increase sales revenue, and maximize profit. The
important metric in this perspective performance will be dividends to the shareholders. Increase
in dividend to shareholders shows that the company is maximizing profiting through increased
sales revenue. Customer’s perspective performance indicators are quality clothing and delivery
time. The important metric to measure this perspective performance is number of complaints
received in every department. A reduction in number of complaints will indicate that customers
are getting high quality products form the company and delivery is made on time. Business
process performance indicators will be a reduction in carbon gas emission to the environment,
proper waste management, and safe and health workplace. This perspective performance metric