Sustainability Strategy Analysis - Doc

Running head: SUSTAINABILITY STRATEGY ANALYSIS 1
Sustainability Strategy Analysis
Author’s Name
College
Author Note

SUSTAINABILITY STRATEGY ANALYSIS 2
Executive summary
This report focuses on Westpac New Zealand, a leading bank with a customer base of over 1.5
million people. In a bid to ensure business growth, the report explores ways in which the bank
can benefit from an environmental sustainability strategy. The report inquires how the strategy
can be introduced to the bank and how change management resulting from the introduction can
be handled. Lastly, the report reveals the ways corporate governance can help in infusing the
strategy at Westpac NZ and how to handle the stakeholder-sustainability dilemma.

SUSTAINABILITY STRATEGY ANALYSIS 3
Table of Contents
Organization Change Management Practices and Sustainability Strategies...................................4
Introduction......................................................................................................................................4
The Environmental Sustainability Strategy.................................................................................4
Why Environmental Sustainability Strategy is important to Westpac NZ..................................5
Critical analysis of possible impacts on the five pillars of sustainability....................................8
A change management process to introduce at Westpac NZ....................................................13
Advantages of Kotters’ Change Process....................................................................................15
Disadvantages of Kotters’ Change Process...............................................................................15
How to implement the change management process in Westpac NZ.......................................15
Dealing with employee behavior, negative attitude and resistance to change...........................17
Corporate Governance and Sustainability.....................................................................................19
Introduction....................................................................................................................................19
How Westpac will deal with the sustainability-stakeholder dilemma.......................................22
Conclusion.....................................................................................................................................25
References......................................................................................................................................26

SUSTAINABILITY STRATEGY ANALYSIS 4
Organization Change Management Practices and Sustainability Strategies
Introduction
This paper explores the effectiveness of a sustainability strategy and change management
initiatives on a financial institution in New Zealand. The financial institution chosen is Westpac
New Zealand, a leading bank with over 197 branches in the country. Westpac New Zealand
operates under three major brands and serves over 1.5 million customers. Their range of services
includes retail banking, loan services, mortgage services, investment services and asset
management among others. The Bank is headed by a Chief Executive Officer with 8 senior
managers reporting directly to him (Wilson, Rose & Pinford, 2011).
Westpac NZ has a robust corporate social responsibility strategy. This has not only
helped to assist many people in New Zealand but also has enabled the bank to build a strong
reputation for a sustainable business (Singleton & Verhof, 2010). In essence, this partly explains
why the bank has been operating in New Zealand for the last 157 years. This report however
critically looks at how the environmental sustainability strategy and how it impacts the bank. In
addition, the report interrogates the change management process in order to infuse the
environmental sustainability strategy. Finally, the report will inquire the impacts of the change
management process at Westpac NZ including the resulting effects on the employees.
The Environmental Sustainability Strategy
Within Corporate Social Responsibility, the environmental sustainability strategy cannot
be understated. Westpac NZ has a variety of mechanisms in place to ensure that they conduct
their business while caring for the environment. The company, for instance, is involved in

SUSTAINABILITY STRATEGY ANALYSIS 5
regular environmental conservation like regular tree planting to combat desertification. Westpac
also spearheads green energy sources for its operations with a focus on solar energy. To reduce
environmental resource utilization, Westpac NZ has embarked on minimal paper usage by
orienting their operations towards paperless technologies such as information technology
(Melville, 2010).
The company has also continuously contributed financial resources to pro-environment
charities such as Non-governmental organizations advocating for wildlife conservation, green
energy, waste management and climate change. Moreover, Westpac NZ is at the forefront in
encouraging the use of environmentally friendly house construction materials. To this end, the
company has subsidized house investment plans using prefabricated materials (Sinha & Akoone,
2010).
Why Environmental Sustainability Strategy is important to Westpac NZ
To begin with, environmental strategy enables Westpac to comply with government
regulations in New Zealand. The Government abides by the international environmental policies
such as United Nations Framework on Climate Change, the Kyoto protocol on greenhouses gas
emissions and other international treaties. Likewise, it has enacted local laws like the
Environmental reporting act of 2015 and the climate change response act of 2002 to ensure
environmental protection (Chapin et al., 2010).
Companies that do not abide by the government regulations are disadvantaged in business
through high taxation, government quotas, and outright business limitations. To safeguard its
reputation and commitment to sustainability Westpac took early measures to ensure compliance
hence increasing its competitive advantage (Porter & Kramer, 2011).

SUSTAINABILITY STRATEGY ANALYSIS 6
Environmental Strategy is important to Westpac NZ in the attraction of Customers. This
is because customers are more than ever before conscious of the companies that take an initiative
in environmental conservation and shun those that disregard environmental sustainability.
Furthermore, customers want to be associated with companies that care for the environment and
Westpac NZ capitalizes on this trend (Crews, 2010).
The strategy has helped Westpac NZ to make strategic alliances with global companies
that employ similar environmental strategies. To this end, Westpac has partnered with other
banks that have adopted environmental standards such as Barclay's Bank, the Allied Irish Bank,
Bank of America and BNP Paribas to increase business transactions and offer their customers
flexibility. This improves their reputation and commitment to environmental sustainability by
associating with like-minded businesses (Lennox, Proctar & Russel, 2011).
Westpac has also benefited from the Environmental Strategy by attracting high qualified
employees. This enables the bank to come up with solutions that are difficult to imitate by
competitors which act as a barrier to entry to competitors. The employees are attracted to work
for Westpac because of their commitment to environmental sustainability which also improves
on social welfare of New Zealand citizens (Singleton & Verhof, 2010).
The environmental sustainability strategy is also important to Westpac NZ because it has
enabled the company to reduce the operating costs. Just like many companies that have adopted a
paperless technology, the bank reaps the advantages of fewer space requirements for storage
which equates to a reduced cost of operating the business (Williams, 2013). Similarly, Westpac
has reduced cost by using energy efficient equipment through a partnership with pro-
environment suppliers.

SUSTAINABILITY STRATEGY ANALYSIS 7
Westpac NZ has encouraged innovation by employing environmental sustainability
strategies. The bank, for instance, has benefited from increased mortgage by using low funding
low cost environmentally friendly prefabricated houses. Just like employees of organizations that
have similar strategies, Westpac employees and suppliers are forced to think of innovative ways
to implement the strategy by coming up with innovative solutions such as electronic banking that
eliminate paper usage and promote customer satisfaction at the same time (Chiaroni, Chiesa &
Frattini, 2011).
By adopting environmental sustainability, Westpac also realizes the benefits accrued
from reduced operational risks. These could stem from association with environmentally
insensitive companies or from noncompliance with environmental regulations which could spiral
antitrust suits and other legal cases. This ostensibly implies that the bank is able to benefit from
lower business risks, legal suits, and the associated costs (Kolk, 2008).
The Bank has realized improved productivity by sticking to the environmental
sustainability strategy. Firstly, Westpac realizes that by encouraging environmentally friendly
technology such as mobile banking and electronic transactions, customers are able to make and
receive payments faster while at the same time reducing the labour required to attend to the
customers at the banking halls (Brooks & Cubero, 2009).

SUSTAINABILITY STRATEGY ANALYSIS 8
Critical analysis of possible impacts on the five pillars of sustainability
Economic Pillar
The economic pillar is traditionally tied to the purpose of firms. In the economic sense,
all firms exist primarily to maximize shareholder wealth. There are other reasons why firms
exist. These include maximizing of employee emoluments, meeting societal financial stability
among others. From the foregoing, the economic pillar features dominantly on the role of the
firms (Lapeley, 2017).
That notwithstanding, it has become quite clear that the pillar cannot be self-sustaining
without the duty of care for the environment. For this reason, many firms such as Westpac NZ
have to abide by the environmental strategy to guarantee economic sustainability. The strategy
impacts the economic pillar in many ways (Moldan, Janouskova & Har, 2012).
On a positive note, the environmental strategy adopted by Westpac NZ especially with
regard to energy-saving technologies, green energy, and zero carbon emission will lead to low
cost of production hence increase the company profitability. This means that it will be a going
concern capable of operating sustainably for the foreseeable future (Chapin et al., 2010).
In retrospect, the environmental sustainability strategy as adopted by Westpac with a
focus on prefabricated houses offering low interest will lead to increased demand from
customers leading to high debts. This is one of the reasons that led to the global economic crises
as banks lend money to people mostly to buy homes. Eventually, the debts could not be paid
leading to wanton foreclosures (Wilson et al., 2011).

SUSTAINABILITY STRATEGY ANALYSIS 9
The environmental strategy is also a byword for compliance with government
regulations. As Westpac has adopted clean energy, which by extension means minimal carbon
emissions, the government responds by reducing taxes and offering other subsidies. The net
effect will lead to reduced government revenue collection (Seghezzo, 2009).
The adoption of efficient paperless electronic banking will lead to a reduction of labour at
Westpac which in effect will increase unemployment and disposable incomes for a sizeable
workforce (Chamberlain & Menclova, 2014). Similarly, the adoption of green energy and
energy-saving strategies such as the use of LED lights will lead to two outcomes. Firstly, it will
lead to low revenue collection by the power company and secondly, it will result in less demand
for labour in the power companies leading to job cuts and ultimately low purchasing parity of
people (Grant, 2008).
The environmental pillar
The environmental pillar is one of the most adopted by companies to enhance their
sustainability (Butler, 2011). Many companies including Westpac have come to realize that by
sustainably utilizing the environmental resources, they not only make savings but also resonate
with customers thereby ensuring the success of their business. The strategy adopted has various
potential impacts on the environment pillar.
Firstly, the environmental sustainability strategy on energy saving technologies and green
energy will lead to fewer carbon emissions. This will lead to lower parts per million in carbon
emissions leading to a reduction in greenhouse gas effects such as global warming and
eventually climate change (Kleine, 2010).

SUSTAINABILITY STRATEGY ANALYSIS 10
Secondly, using paperless technologies such as electronic transactions and mobile cash
transfers implies that there will be less waste of paper, cutting of trees and inefficient mining.
This will, in turn, lead to meeting both national and international environmental conservation
initiatives such as protection of rare and endangered species, combating desertification among
other environmental concerns (Sharma & Khanna, 2014).
According to Sinha and Akoone (2010), Westpac has been a pivotal partner to New
Zealand citizens by organizing tree planting events. Already the company has in conjunction
with the citizens has planted thousands of trees. The net effect of such environmental endeavors
will be the sustainability of the country's water towers.
The strategy also aims at forming sustainable relationships with suppliers (Anderson &
Noblet, 2012). This means that the suppliers have to meet environmental obligations such as the
supply of equipment and material with low carbon emissions and employing material life cycle
processes in their production. This will lead to better air quality and reduction in waste during
production.
The strategy also encourages the acquisition of equipment and material that is recyclable.
It requires the employees to lead by example through proper disposal of the electronic waste to
allow for eventual recycling thereby reducing exploitation of environmental resources (Garard &
Kowarsch, 2017).
Lastly, the strategy may impact negatively on the environment by encouraging new forms
of energy and electronic technologies that lead to new cases of environmental pollution. For
instance, lithium-ion phosphate required in the manufacture of batteries used for wind and solar
energy leads to more pollution eventually than using fossil fuels (Crews, 2010).

SUSTAINABILITY STRATEGY ANALYSIS 11
Impacts on political/justice pillar
The environmental strategy will lead to conformance with human rights regulations due
to the fact that environmental sustainability and human rights are in many ways intertwined. It
may also lead to civil unrest due to unemployment resulting from less need for labour as eco-
friendly technology is less labour intensive. For this reason, unemployment could be a growing
concern in the country as companies focus on green technologies (Chamberlain & Menclova,
2014).
On the political pillar, the environmental strategy will lead to efficient use of resources
and eventually Lowe cases of legal redress. Research has shown that there is an inverse
relationship between the number of legal cases filed and a company's pro-environment strategies.
This implies that the political risk of conducting business will drop significantly as companies
focus more on environmental sustainability (Lepeley, 2017).
The environmental strategies will lead to fewer regulations that in the end stifle
companies from achieving their full potential. With lower carbon emissions, prudent
environmental management, and sustainable resource utilization, there will be less need for
political oversight, and punitive laws for nonconformance with environmental sustainability
(Fabian, 2015).
The environmental strategies may in retrospect, lead to new forms of regulations and
policies on new green technologies such as in the use of wind energy, solar energy and hybrid
energy technology (Jamali & Rabbath, 2008).

SUSTAINABILITY STRATEGY ANALYSIS 12
Cultural pillar
According to Michelon, Boessso, and Kumar (2012), the cultural pillar focuses on the
way of life for the population. This in many ways touches on religion, the way of expression by
the population, the diet, tourism and the artifacts held sacred by the population.
Since the environmental strategy promotes environmental conservation by advocating for
methods that do not exploit the resources unsustainably, the culture of the people will be
preserved (Tobias & Blakely, 2009).
The strategy will also promote tourism since environmental conservation will lead to
protection of wildlife and cultural amenities. This will, in turn, benefit the communities
economically and lead to more cultural preservation (Tobias & Blakely, 2009).
The cultural expression, religion, and diet for indigenous minorities will also be upheld
since environmental degradation is one of the major causes for cultural erosion. The strategy will
lead to less exploitation of environmental resources which interfere with the cultural regime
(Seghezzo, 2009).
Social Pillar
The environmental strategy will lead to less equity in the social sphere. This is because if
labour intensive technologies are ditched in favor of green efficient technology, many people
will lose their jobs and this may lead to inequality in the society (Michelon et al., 2012).
The strategy will impact the social pillar positively by encouraging social diversity. This
is because, for the strategy to be effective, it has to encourage the inclusion and participation of
all stakeholders in the society (Moldan et al., 2012).

SUSTAINABILITY STRATEGY ANALYSIS 13
The environmental sustainability strategy will also impact positively on the quality of
life. This is because, with environmental conservation, people can be able to access quality
environmental services such as clean air, clean water and green energy (Peloza & Shang, 2010).
Lastly, it may lead to improved democracy as well as governance in the society as there
will be fewer conflicts occasioned by the scramble for environmental resources. In the end,
people will have a better governance structure (Grant, 2008).
A change management process to introduce at Westpac NZ
This report will focus on Kotter's 8 step change model (Kotter, 2008). The change
management process will augur quite well with the Westpac NZ since the introduction of the
environmental strategy is a new concept that requires transitioning. Fortunately, the best agents,
who often are the management as per Kotter's model, recognize the importance of change for
sustainability of the organization.
Kotter's change model involves eight steps. The first step is creating the urgency for
change. For change to be successful at least over three-quarters of the management have to buy
into the change. The management, in this case, must inform the employees why it is necessary to
adopt change. When the employees understand the need for change they will be champions of
the change (Goksoy, 2015).
The second step involves coming up with a team that will oversee change. This includes
identifying people in the organization with influential or leadership skills necessary to catalyze
the change process. These people are less likely to face resistance and will be the pillar of the
change process (Kotter, 2008).

SUSTAINABILITY STRATEGY ANALYSIS 14
The third process is to create a vision for change. This involves summarizing the most
important things necessary for the change to happen. Afterward, a strategy must be devised to
ensure that the team identifies the reasons for change (Orgland, 2014).
After the team internalizes the vision, the next step is communicating the need for the
environmental strategy. This is important because the employees may forget it due to other
communication processes within the company. It should be done frequently while at the same
time addressing employees’ concerns, anxiety, and fear (Entrekin, 2014).
The fifth step is empowering the staff to commit to the change. This can be achieved by
ensuring that the team already identified has the powers to drive the change strategy while at the
same time assisting in addressing any obstacles in their way (Reiss, 2012).
The sixth step is to come up with short-term goals to initiate the change process. This
involves creating milestones and targets that can be achieved within a specified duration.
Rewarding the achievement of the targets builds momentum and motivates the employees to
move proceed with the change (Samson & Bevington, 2012).
Many change initiatives fail because of inconsistency. To ensure that the change process
is successful it is important to be persistent and keep on improving on the change process. It is
important, therefore, to analyze what works and what does not and continuously improve on
weak areas (Kotter, 2008).
Finally, it is necessary to ensure that the change management is permanently adopted by
the company. This can be done by incorporating the changes achieved into the organizational
culture. This ensures that the change becomes part of the organizational functions (Orgland,
2014).

SUSTAINABILITY STRATEGY ANALYSIS 15
Advantages of Kotters’ Change Process
The first advantage of Kotter change management process is that it uses sequential steps
that are easy to adopt while transitioning into a change. This allows the employees to adapt well
to change (Pieterse, Caniels & Homan, 2012).
Secondly, the process focuses on the preparation of the change. The primary focus on
management and the team to undertake change management ensures that everyone in the
organization is part of the change (Kotter, 2008).
The transition into the change in this process is much easier than other processes such as
the Lewin and McKinsey change processes. This is because it allows the change process to be
smoother (Pieterse et al., 2012).
Disadvantages of Kotters’ Change Process
One disadvantage of the model is that it is a very long process that requires massive
investment in time and managerial resources. Consequently, many employees may forget the
process (Goksay, 2015).
Secondly, the steps taken in Kotter's model cannot be replaced or overlooked. This means
that they have to be wholly undertaken. Any skip of the step results in failure within the whole
model (Reiss, 2012).
How to implement the change management process in Westpac NZ
The first step is to evaluate the need for change and incorporate the same within the goals
of Westpac NZ. To make the change effective, an evaluation to identify the resources required to

SUSTAINABILITY STRATEGY ANALYSIS 16
implement the change is necessary. The change can then be gauged to ensure that it will move
Westpac NZ in the direction envisaged (Orgland, 2014).
The second step in the implementation of the change at Westpac NZ will be to identify
the impact of the proposed change in every department. This will enable early identification of
the most affected individuals and how to introduce the change (Reiss, 2012).
Thirdly, it is important to come up with a communication strategy at Westpac NZ which
will highlight the key areas of the change and the persons or team of people to communicate the
change to the employees. The strategy will also identify the methods to communicate change
such as meetings, and departmental group discussion and how to respond to employee anxiety
(Entrekin, 2014).
The fourth step is to train the employees on the most effective skills required to
implement the change. This will boost their morale and confidence in readiness to take on the
change (Agboola & Salawu, 2010).
The next step is to ensure that there are rigid support mechanisms to assist the employees
to move through the change at Westpac NZ. This is because any change will come with many
requirements such as work restructure, doing away with some jobs and introducing new jobs.
The support mechanisms will enable the employees to adapt to the change smoothly (Goksay,
2015).
Lastly, once the change has been initiated, the final step is to measure the change with
regard to the anticipated results. This will help to establish where the change was successful and
where it was not. Alternative methods can be employed to improve on the failed areas (Entrekin,
2014).

SUSTAINABILITY STRATEGY ANALYSIS 17
Dealing with employee behavior, negative attitude and, resistance to change
The first step in dealing with employee behavior and anxieties is ensuring proper
communication is undertaken to enable them to realize the importance of the change. This can be
done by discussing and demonstrating the change process in their areas of work (Pieterse et al.,
2012).
The employees can also be involved directly in the change processes. This can be done
by encouraging their participation in the change process and incorporating their views early
enough. It is also important to listen to their views and reassuring them of job security (Entrekin,
2014).
Ensuring teamwork or esprit de corps. Teamwork in the design and introduction of the
sustainability strategy will make the employees feel part of the change process instead of
spectators or bystanders in the process (Orgland, 2014).
Coming up with super-ordinate goals. A super-ordinate goal can be realized by
identifying a common denominator among the employees. One such goal is ensuring
organization survival. The goal can be designed alongside the sustainability strategy such that
employees work for the common good of the organization (Kotter, 2008).
Creating an effective support structure. The support structure identifies who in the
workplace is most affected and comes up with mechanisms to alleviate negative impacts. The
support structure could take the form of job restructuring or review which is then communicated
to the employee (Reiss, 2012).

SUSTAINABILITY STRATEGY ANALYSIS 18
Employee motivation. This can be introduced in the form of short goals or targets which
when achieved will lead to rewards. This builds the employee confidence in the change process
and alleviates the resistance to change (Samson & Bevington, 2012).
Training the employees. This will give the employees the confidence to work on the new
roles advanced by the change process. It will also improve their skill set to implement the job
professionally (Entrekin, 2014).
Involving the team leaders or people with influence. Employees tend to listen to their
team leaders such as union heads. By incorporating these leaders into the strategy, resistance to
change can be overcome (Kotter, 2008).
Lastly, the threat of firing or negative motivation can be necessary where employees are
inherently against the change despite addressing all their concerns. This can be done as the last
resort (Fugate, Prussia & Kinicki, 2010).

SUSTAINABILITY STRATEGY ANALYSIS 19
Corporate Governance and Sustainability
Introduction
This section deals with corporate governance and sustainability. The section explores
why corporate governance is important to the environmental sustainability strategy. Moreover,
the section delves into the impacts a dilemma in implementing the environmental strategy can
impact on the stakeholders. The section finalizes by discussing ways of resolving the dilemma
with the stakeholders.
Reasons why corporate governance of Westpac NZ is important to the environmental
sustainability strategy
Firstly, corporate governance ensures accountability within Westpac NZ. This is because
one of the principles of corporate governance clearly stipulates the role of the shareholders, the
responsibilities that accompany the board of directors at Westpac NZ and lastly the role of the
stakeholders within Westpac NZ. For this reason, everyone in Westpac knows their
responsibility. This enables the environmental strategy to be swiftly implemented by the
responsible parties within the organization. Decisions are made and implemented seamlessly
(Hamson, Bosse & Philips, 2010).
Should there be a problem with the implementation of the environmental strategy, it is
very easy to identify the responsible party. As a result of prudent accountability, the board can be
held responsible if there is a problem in execution of the strategy by the management because
they appoint them. Similarly, the management is accountable in case there is a strategy execution
problem with the employees because they hire the employees. It is the responsibility of the board

SUSTAINABILITY STRATEGY ANALYSIS 20
to invite the shareholders to the annual general meeting to get the progress of Westpac NZ. The
Stakeholders such as customers have to be respected (Lee, 2014).
Secondly, corporate governance ensures transparency within Westpac NZ. This is
achieved by the disclosure of the roles and responsibilities of all parties working for Westpac
NZ. The implementation of the environmental strategy can then be transparent to all parties
interested in the organization (Jamali & Rabbath, 2008).
An important aspect of transparency is the availing of information about the company
management for shareholders to scrutinize and disclosure of all information concerning Westpac
NZ investment decisions. This ensures that the environmental strategy is executed and all
information communicated to the stakeholders (Lennox et al., 2011)
Thirdly, corporate governance is important in the reduction of business risks at Westpac
NZ. By the fact that everyone’s actions are accounted for, implementation of the environmental
sustainability strategy can be actualized without any cases of banking malpractices or fraud. In
case of any fraud, the responsible party can be identified and held to account without failing the
entire Westpac NZ Bank. The Bank also has a self-regulatory policy that can bring persons
accountable to strategic malpractices to book internally (Bebchuk, Cohen & Ferrel, 2008).
Lastly, corporate governance exemplifies Westpac NZ public relations and public image.
This enables the implementation of the environmental sustainability strategy with help from the
local communities. As a result of the unconditional disclosure of the company information to
stakeholders, Westpac is widely trusted and enjoys support from the public. The roles and
responsibility principle that ensures accountability helps Westpac to maintain a good public

SUSTAINABILITY STRATEGY ANALYSIS 21
image and conduct its business ethically because the stakeholders have access to information on
the Bank operations (Anderson & Noblet, 2012).
How one dilemma at Westpac regarding the implementation of environmental sustainability
strategy might affect 3 stakeholders
Different stakeholders have different environmental expectations from Westpac NZ. The
dilemma here is choosing an environmental sustainability strategy that is accepted by all the
stakeholders. Similarly, there is the dilemma of environmental sustainability versus financial
performance within the organization. In order to maintain its public image, Westpac may fail to
disclose the environmental strategy information. While on one hand, the corporate governance
principle stipulates the full disclosure of information to stakeholders, on the other hand, the
management in Westpac NZ may be inclined towards financial performance. Non-disclosure of
the information couldn't have potential repercussions to the stakeholders (Bebchuk et al., 2008).
The government
The government has stringent rules and regulations to safeguard the environment. Failure
to report the on environmental obligations may pass unnoticed in the short-term. The government
will fail to achieve its responsibility for safeguarding the environmental standards for the citizens
of New Zealand. In its international obligations, the government will also report wrong
information on its environmental targets to the international community. In the long-term, the
government may undertake an environmental audit and realize the discrepancy which may lead
to legal suits including the closure of Westpac NZ (Peloza & Shang, 2010).

SUSTAINABILITY STRATEGY ANALYSIS 22
The shareholders
The shareholders have entrusted the business to the management with the expectation that
due diligence is followed in the disclosure of information. Failure to disclose environmental
information during the implementation of the strategy may result in loss of assets to the
shareholders in case of Westpac is shut down by the government. Once the shareholders learn of
the violation from other sources other than Westpac they may lose their trust with the board and
the management. Consequently, they may force out the board or withdraw their shares (Bhagat &
Bolton, 2008).
The employees
The failure to disclose environmental information to the employees may lead to loss of
employees who were attracted by the company’s commitment to the environment. It may also
result in cases of dishonesty amongst the employees. Lastly, they may also lose their jobs, in the
long run, should the violation be exposed and the company shut by the government (Harrison et
al., 2010)
How Westpac will deal with the sustainability-stakeholder dilemma
Stakeholder collaboration
To ensure that Westpac and the stakeholders resolve the sustainability versus the
profitability dilemma, collaboration in the sustainability strategy would help to maintain a good
working relationship. Collaboration could take the effect of projects like tree planting, creating
environmental awareness and waste recycling (Lennox et al., 2011).

SUSTAINABILITY STRATEGY ANALYSIS 23
Process innovation
To resolve the environmental sustainability strategy versus profitability dilemma,
Westpac NZ could start new innovative processes to solve environmental problems. For instance,
Westpac NZ has started funding house construction using prefabricated materials instead of
resource-intensive traditional mortal and timber houses. This has the potential to endear the
company to the customers while making profits (Lee, 2014).
Creating Shared Value (CSV)
In this approach, Westpac could identify an environmental problem that they can resolve
by creating a profitable business while at the same time solving the environmental problem. This
leads to environmental conservation and profits for the company at the same time (Porter &
Kramer, 2011).
Benchmarking
There are many cases where sustainability-profitability dilemma cases have been
resolved amicably in other parts of the world. Nestlé, for instance, resolved their water problems
in North America by involving local communities. Westpac can adopt measures used elsewhere
to resolve the dilemma (Crews, 2010).
Communication
Communication is quite an effective method when it comes to resolving the dilemma.
The stakeholders will understand if Westpac is open to dialogue to resolve the dilemma (Garrard
& Kowarsch, 2017).

SUSTAINABILITY STRATEGY ANALYSIS 24
Compromise
Westpac NZ can compromise on some of their profitability ventures and give the
environmental sustainability strategy efforts an upper hand. This will gain them customers and
they can recoup their investment by capitalizing on more sales (Harrison et al., 2010).

SUSTAINABILITY STRATEGY ANALYSIS 25
Conclusion
In conclusion, this paper has identified a suitable environmental sustainability strategy which can
be explored by Westpac NZ to enhance their business. The paper has shown the ways that the
bank stands to benefit from the strategy. Moreover, the paper has revealed how the strategy can
be introduced in the bank, and how change management from the introduction can be handled.
Further, the paper has discussed corporate governance and how it can help to streamline the
strategy within its operations. Finally, the paper has discussed the stakeholder-sustainability
dilemma and how it can be resolved.

SUSTAINABILITY STRATEGY ANALYSIS 26
References
Agboola, A., & Salawu, R. (2010). Managing Deviant Behavior and Resistance to Change.
International Journal Of Business And Management, 6(1), 45-48.
Anderson, M., & Noblet, C. (2012). Giving voice to the future of sustainability: Retrospective
assessment to learn prospective stakeholder engagement. Ecological Economics, 84, 1-6.
Bebchuk, L., Cohen, A., & Ferrell, A. (2008). What Matters in Corporate Governance?. SSRN
Electronic Journal, 22(2), 785-792.
Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal Of
Corporate Finance, 14(3), 257-265.
Brooks, R., & Cubero, R. (2009). New Zealand bank vulnerabilities in international
perspective(pp. 30-46). Washington, D.C: IMF.
Butler, T. (2011). Compliance with institutional imperatives on environmental sustainability:
Building theory on the role of Green IS. The Journal Of Strategic Information
Systems, 20(1), 6-9.
Chamberlain, D., & Menclova, A. (2014). The effects of unemployment rate fluctuations on
private health insurance coverage in New Zealand. New Zealand Economic
Papers, 49(2), 157-167.
Chapin, F., Carpenter, S., Kofinas, G., Folke, C., Abel, N., & Clark, W. (2010). Ecosystem
stewardship: sustainability strategies for a rapidly changing planet. Trends In Ecology &
Evolution, 25(4), 241-249.

SUSTAINABILITY STRATEGY ANALYSIS 27
Chiaroni, D., Chiesa, V., & Frattini, F. (2011). The Open Innovation Journey: How firms
dynamically implement the emerging innovation management
paradigm. Technovation, 31(1), 34-43.
Crews, D. (2010). Strategies for Implementing Sustainability: Five Leadership Challenges. SAM
Advanced Management Journal, 75(2), 15-20.
Entrekin, L. (2014). Human resource management and change: a practicing manager's guide(1st
ed., pp. 42-45). London and New York: Routledge.
Fabian, L. (2015). Strategic information systems management for environmental
sustainability(6th ed., pp. 104-108). Berlin: Druck Publishers.
Fugate, M., Prussia, G., & Kinicki, A. (2010). Managing Employee Withdrawal During
Organizational Change. Journal Of Management, 38(3), 890-900.
Garard, J., & Kowarsch, M. (2017). Objectives for Stakeholder Engagement in Global
Environmental Assessments. Sustainability, 9(9), 1571.
Grant, S. (2008). Contextualising social enterprise in New Zealand. Social Enterprise
Journal, 4(1), 9-23.
Goksoy, A. (2015). Organizational change management strategies in modern business (pp. 143-
150). Bulgaria: IGI Global.
Harrison, J., Bosse, D., & Phillips, R. (2010). Managing for stakeholders, stakeholder utility
functions, and competitive advantage. Strategic Management Journal, 31(1), 58-74.

SUSTAINABILITY STRATEGY ANALYSIS 28
Jamali, D., & Rabbath, M. (2008). Corporate Governance and Corporate Social Responsibility
Synergies and Interrelationships. Corporate Governance: An International Review, 16(5),
443-459.
Kleine, A. (2010). Sustainability-driven implementation of corporate social responsibility:
application of the integrative sustainability triangle. Strategic Direction, 26(5), 517-533.
Kolk, A. (2008). Sustainability, accountability and corporate governance: exploring
multinationals' reporting practices. Business Strategy And The Environment, 17(1), 1-15.
Kotter, J. (2008). Force for Change: How Leadership Differs from Management (7th ed., pp. 35-
60). New York: Free Press.
Lee, E. (2014). Corporate Governance and Firm Performance: Empirical Analysis Using CGS
Corporate Governance Scores. Productivity Review, 28(1), 385-392.
Lennox, J., Proctor, W., & Russell, S. (2011). Structuring stakeholder participation in New
Zealand's water resource governance. Ecological Economics, 70(7), 1381-1389.
Lepeley, M. (2017). Five Pillars of Organizational Quality and Global Sustainability (pp. 32-
36). [S.l.]: Greenleaf Publishing.
Melville, N. (2010). Information Systems Innovation for Environmental Sustainability. MIS
Quarterly,34(1), 1-6.
Michelon, G., Boesso, G., & Kumar, K. (2012). Examining the Link between Strategic Corporate
Social Responsibility and Company Performance: An Analysis of the Best Corporate
Citizens. Corporate Social Responsibility And Environmental Management, 20(2), 81-94.

SUSTAINABILITY STRATEGY ANALYSIS 29
Moldan, B., Janouskova, S., & Hak, T. (2012). How to understand and measure environmental
sustainability: Indicators and targets. Ecological Indicators, 17, 4-8.
Orgland, M. (2014). Initiating, managing and sustaining strategic change (pp. 30-35). London:
Palgrave Macmillan.
Peloza, J., & Shang, J. (2010). How can corporate social responsibility activities create value for
stakeholders? A systematic review. Journal Of The Academy Of Marketing
Science, 39(1), 117-135.
Pieterse, J., Caniels, M., & Homan, T. (2012). Professional discourses and resistance to
change.Journal Of Organizational Change Management, 25(6), 798-818.
Porter, M., & Kramer, M. (2011). Strategy & Society: The Link between Competitive Advantage
and Corporate Social Responsibility (pp. 1-6). Boston: Havard Business Review.
Reiss, M. (2012). Change Management: A Balanced and Blended Approach (pp. 93-99).
Norderstedt: Books on Demand.
Samson, D., & Bevington, T. (2012). Implementing Strategic Change (1st ed., pp. 16-24).
London: Kogan Page.
Seghezzo, L. (2009). The five dimensions of sustainability. Environmental Politics, 18(4), 539-
545.
Sharma, J., & Khanna, S. (2014). Corporate Social Responsibility, Corporate Governance and,
Sustainability: Synergies and Inter-relationships. Indian Journal Of Corporate
Governance,7(1), 14-38.

SUSTAINABILITY STRATEGY ANALYSIS 30
Singleton, J., & Verhoef, G. (2010). Regulation, deregulation, and internationalization in South
African and New Zealand Banking. Business History, 52(4), 540-553.
Sinha, P., & Akoorie, M. (2010). Sustainable Environmental Practices in the New Zealand Wine
Industry: An Analysis of Perceived Institutional Pressures and the Role of
Exports. Journal Of Asia-Pacific Business, 11(1), 50-74.
Tobias, M., & Blakely, T. (2009). Changing trends in indigenous inequalities in mortality:
lessons from New Zealand. International Journal Of Epidemiology, 38(6), 1711-1715.
Williams, C. (2013). Principles of management (pp. 20-28). Boston: South-Western Cengage
Learning.
Wilson, W., Rose, L., & Pinfold, J. (2011). Moderating risk in New Zealand retail banks:
Disclosure as an alternative regulatory regime. Journal Of Banking Regulation, 13(1), 4-
23.