Dynamic Perspective on Sustainable Business - Critical Essay

This critical essay explores the impact of ethical and sustainable business practices on business objectives and its implications to stakeholders, along with the evaluation of sustainable business on the external environment. It also covers effective strategies for responsible leadership and evaluates contemporary methods of communication and working practices in the post-COVID business environment.

Critical Essay
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13
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INTRODUCTION
Sustainability is one of the most important issues faced by business forms in the current
environment. Industries across the globe are focused on improving business practices to facilitate
sustainable development (Kusyk, 2021). The focus of this essay is ethical and sustainable
business practices in the post COVID business environment. The selected organization for this
essay is Marks and Spencer. Currently the company is headquartered in and was founded in the
year. Marks and Spencer has international presence in markets and sells fashion, home care,
personal care and grocery products. This essay explains the impact of ethical considerations on
business objectives and its implications to stakeholders along with evaluation of sustainable
business on external environment. In addition to this, the ways in which leaders can maintain
competitive advantage through different concepts and models is described in this essay. The
essay also covers effective strategy for responsible leadership and evaluates contemporary
methods of communication and working practices in post COVID business environment.
MAIN BODY
In the current business environment efforts made by multinational organizations as well
as small business firms to conduct operations in an ethical manner has increased because off
better consumer awareness and impact of ethical business practice on consumer decision making.
Ethical nature of the company isn't important element of constructing business objectives and
strategies because high level of ethical business practices can provide organizations competitive
advantage (Talonen and et. al., 2021). The business objectives created by Marks and Spencer is
also affected by ethical business practices because providing consumers ethical products is your
priority in the current environment clear the concept of responsible shopping is rising. Corporate
social responsibility is one of the most common based off increasing ethical nature of a
company. Corporate social responsibility is defined as strategies implemented by business firms
as part of corporate governance which centered on ensuring that business operations of the
company provide ethical and beneficial results to the society.
The impact of ethical considerations on business objectives can be understood through
Carol’s corporate social responsibility pyramid. This concept divides corporate social
responsibility into four categories which are economic responsibility, legal responsibility, ethical
responsibility and philanthropic responsibility. At the bottom of the pyramid is economic
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responsibility which involves the practice of a company backing all of its financial decisions in
its commitment to improve ethical environmental and philanthropic areas. The meaning of
economical responsibility according to this concept is to maximize profitability while also
making positive impact on environment and society. This is the foundation upon which all other
ethical considerations of the company rest and it affects the business objectives of the company
(Nurunnabi, Alfakhri and Alfakhri, 2020). This is because the company has to ensure that
strategies developed to enhance profitability do not have any negative implications on social and
natural environment. In context of Marks and Spencer, the business objectives of the company
are affected because of this responsibility and our formulated to provide environmental and
social benefits.
The next level in carol’s CSR pyramid the legal responsibilities of the company are
mean highlight of corporate social responsibility. The primary legal responsibility of a business
firm is to ensure that every business operation is conducted in a lawful manner and every legal
procedure is followed correctly by all members of the company. in this way the second level of
carol’s CSR pyramid focuses on ethical considerations associated with the law. Abiding the law
increases ethical nature of a company because it helps ensure that every individual or entity
affected by business operations of the company had treated in a fair and lawful manner. in this
way the business objectives of the company are affected by ethical considerations of following
the rule of law. Business objectives are formed after looking at legislations and regulations
which need to be complied with and it is insured that business objectives do not infringe any
legal responsibilities of the company. In case of the British retail firm Marks and Spencer
obedience with the law is focus of constructing business objectives and corporate social
responsibility plans so that the company does not invite legal travel and maintains ethical
business practices all over the globe. The business objectives of Marks and Spencer are
formulated in a way in which it does not break international or any regional laws which supports
ethical trade of the company on a global scale.
The third level in Carol's CSR pyramid directly focuses on the ethical responsibilities of
the company (Alfakhri and et. al., 2020). This involves obligation to do what is right and just and
maintain fair business practices. This element of the corporate social responsibility model
directly addresses the ethical consideration and impact business objectives of an
organization. The business objectives of a company and affect by this level of
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CSR pyramid as The Company has to ensure that business objectives lead to fair and just
business activities of the company. In relation to Marks and Spencer, the business objectives of
the company are constructed so as to oversee that fair business practices are followed while
dealing with other business firms and suppliers and ethical trade is promoted all over the globe.
The final level of the pyramid focuses on the area of philanthropic responsibility which
revolves around the capacity of the company to return profits back to the society (Moran, Chavez
and Hubbard, 2019). This facet of responsibility holds an important place despite discrete nature
because it supports social growth. The philanthropic responsibility of the company covered in
this concept supports ethical business as it helps creation of a better society. This affects business
objectives of the company as organizations focus on creating business objectives which lead to
development of better society then before. Marks and Spencer is committed to completing its
philanthropic responsibilities effectively. The company has implemented various corporate social
responsibilities for the benefit of society such as collaboration of Marks and Spencer with
UNICEF. In this way business objectives of the company are affected by ethical considerations
the company has to take action to address philanthropic responsibilities but by including charities
and social benefit collaborations as a part of business strategy.
Stakeholders are defined as groups whose support is needed for existence of the company
(Freudenreich, Lüdeke-Freund and Schaltegger, 2020). Stakeholder management is essential to
growth of business because it ensures that every major stakeholder gain satisfaction from
business operations of the company. the impact of ethical considerations on business objectives
of an organization also has implications for the stakeholders of the company. these implications
can be understood with the help of stakeholders theory. The stakeholder theory emphasizes the
interconnected relationships between a business and its consumers, suppliers, employees,
investors communities and others who have a stake in the organization the theory states that a
firm should create value for all stakeholders not just shareholders.
The stakeholder theory can be applied to understand the implications of ethical
considerations on different stakeholders of the company. According to this theory it is important
to ensure that every stakeholder end value from business operations. This promotes ethical nature
of the company because various business operation are affecting different stakeholders including
suppliers and communities' positive manner. The implication of ethical considerations for
various stakeholders as per this theory is that different ethical responsibilities are completed
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while dealing with stakeholders with the aim of providing them value through business
activities. The responsibility is described in carol’s CSR pyramid have positive implications for
each stakeholder as these responsibilities facilitate ethical relationships with different
stakeholders and ensure that they are given valuable results by the company (Choi and Choi,
2021). Marks and Spencer ensures that every stakeholder gains value from business operations of
the company which is supported by the corporate social responsibilities followed at the
company.
The implications for investors in context of ethical considerations followed by Marks and
Spencer is that they are given maximum profitability while also making positive impact on
society and environment. The positive implication for consumers is that they are provided high
quality goods but also conducting ethical business practices and promoting ethical trade globally.
In case of suppliers of Marks and Spencer the positive implication is that ethical and legal
responsibilities of Marks and Spencer is completed effectively and timely which provides them
fair value for their relationship with the company. Social community also gains positive
implication from obedience of Marks and Spencer to corporate social responsibilities as the
philanthropic and environmental initiatives undertaken by Marks and Spencer provide value to
communities.
Businesses have adopted different sustainable business practices to reduce negative
environmental impact of the company and gene competitive advantage in the industry. the rise of
sustainable business impacts external environment and is used by leaders to improve competitive
position of organization (Birkel and Müller, 2021). Elkington’s triple bottom line Model can be
used to understand the positive impact of sustainable business on competitive position of a
company. The foundation of the triple bottom line model is that forms you need to be committed
towards measuring their social and environmental impact along with the financial
performance. This model states that instead of solely focusing on maximizing profitability
business firms also need to consider the social and environmental impacts of their operations to
enhance sustainability.
The triple bottom line provides three P’s which need to be the focus of business firms in
order to maintain high sustainability. The three P’s provided in this model are people and planet.
Following this model can support improvement in competitive advantage of business firms. in
case of Marks and Spencer the leaders can utilize this model to gain competitive advantage. The
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first element of this model is profit which is essential for success of a firm in a capitalist
economy. This element looks at the financial performance of the company and states that
business firms need to engage in strategic planning initiatives which are designed to maximize
profit while reducing costs and mitigating risk (Svensson and et. al., 2018) (Ahmad, Wong and
Rajoo, 2019). Marks and Spencer needs to follow this element of the triple bottom line model in
order to green success on a global scale. Leaders will be able to use this model to create
strategies and take decisions which enhance profitability by damaging risk factors associated
with various business endeavors.
The next element of the triple bottom line is people which highlights the social impact of
the company and commitment of the company towards people associated with its business
operations. This involves all stakeholders impacted by business decisions including consumer’s
employees, suppliers and community members. According to this element of the triple bottom
line the company needs to strive to generate value for every stakeholder associated with the
company instead of just focusing on benefits of shareholders and investors.
This supports improvement in sustainability of the company as every stakeholder gains fair value
from business operations which improves positive social impact of the company. Adoption of
this element of the triple bottom line helps leaders create strong relationship with community,
consumers and suppliers. This helps the company gain competitive advantage by increasing
consumer satisfaction, creating better public image and building strong and
diverse supplier relationships. Marks and Spencer needs to adopt this element of the triple
bottom line in order to secure competitive positioning, sentence supply gene and retain
consumers for longer time.
The final element of triple bottom line is planet which focuses on making a positive
impact on environment (Miemczyk and Luzzini, 2018). As for this element of the triple bottom
line large corporations need to restrict pollution and limit their contribution to climate change.
This element directly supports sustainable growth impact of business firms by highlighting the
responsibility of organizations to mitigate environmental damage. By adopting this element of
the triple bottom line business firms are able to gain competitive advantage by creating a
sustainable brand image, reducing costs and preparing for sustainable future. In this
way business firms are able to win competitive advantage by improving still ability of the
people. Marks and Spencer needs to adopt sustainable business practices in order to gain
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competitive advantage and success in future as the demand for sustainability will continue to
increase.
Usage of concepts such as triple bottom line to improve sustainability of business firm
impacts external environment. The impact of sustainable business on external environment can
be understood with the help of PESTEL analysis. This analytical tool covers all the primary
external forces related to specific business inhales understand the impact of business practices on
external environment (Pan, Chen and Zhan, 2019). The political impact of sustainable business
on external environment is that governments across the globe are investing in promoting
sustainable businesses and reducing environmental harm caused by corporations. This is
profitable for Marks and Spencer as the company will be able to gain government support
through sustainability. The economical impact of sustainable businesses is that it reduces
wastage and leads to economic growth. Marks Spencer will be able to facilitate collective
economic growth or society and retail industry by adopting sustainable business practices
They social impact of sustainable businesses is that it increases ethical trade all over the
globe. The respective company will be able to facilitate ethical trade all over the globe with the
help of sustainable business practices. The technological impact of sustainability and sustainable
business practices is that it increases the usage of artificial intelligence and other digital
technologies to reduce costs and improve sustainable aspects of the company. In this way
sustainable business practices also support technological growth and rapid adoption of
technology in the corporate environment. The environmental impact of sustainable businesses is
direct as sustainable business forms positively impact climate change minimization and support
corporate growth along with development of the natural environment. The final element of
analysis is legal factors (de la Rosa and et. al., 2019). Sustainable business firms’ impact legal
environment by following environmental legislations and other regulations related to protection
of environment. Marks and Spencer is dedicated to following environmental legislations and
regulations so that the global business operations of the company positively impact the
environment. In this way, sustainable businesses introduction of sustainable business models
such as the triple bottom line a positive impact on political, economical, social, technological,
environmental and legal environment.
It is important for business firms to engage in responsible leadership in order to deal with
issues arising after COVID-19 in the business environment. The most effective strategy for
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facility responsible leadership at Marks and Spencer which will support the company in
recruiting in the post COVID-19 environment can be determined with the help of VUCA
concept. This concept is based on different leadership theories and reflects on volatility
uncertainty complexity and ambiguity of general conditions and situations. This is the most
effective concept for developing leadership strategy in the current post COVID environment as
COVID-19 has drastically changed the external environment.
The first element of the VUCA model is volatility which refers to the nature and
dynamics of change and the nature and speed of change forces and change catalysts (Persis and
et. al., 2021). COVID-19 has introduced high level of volatility in the business environment
because depending on the level of COVID-19 spread in different countries, economies and
markets are reacting in a volatile manner with such drastic changes. Apart from this government
decisions to support economic growth such as furloughs and financial support I'm also increasing
short term volatility of the business environment. The business practice which can be adopted by
Marks and Spencer to face such volatile environment is to focus on critical skills instead of
critical roles. This involves initiating policies which help the employees develop skills needed to
drive the organization's competitive advantage and the workflows that fuel the advantage. The
positive impact of this business practice is that employees will be more satisfied violent negative
impact of this business practices that developing critical skills in employees can financially
burden the company in a time of economic downturn. This business practice will support
responsible leadership at Marks and Spencer as the company will be able to increase employee
safety and reduce mental health issues of employees in post COVID-19 environment.
The next element of VUCA model is uncertainty which focuses on the level of
unpredictability in business environment. In order to lead responsibly, it is important to
implement working practices which handle uncertainty of the business environment so that
effective leadership decisions can be taken (Kautish and et. al., 2021). COVID-19 has introduced
uncertain feature because supply chain and economies all over the globe are disrupted and
negatively affected by the pandemic. the working practice which can be adopted by Marks and
Spencer to handle unpredictability in the business environment is risk management. Marks and
Spencer needs to engage in risk management and implement various risk management policies
and techniques to move forward with business endeavors in an uncertain environment. The
positive impact of this working practice is that the company will be able to minimize damage
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caused by uncertain environment while the negative impact of this working practice is that
implementation of his management policies and strategies can be financially taxing for the
company.
Systematic failure discussed in this model is complexity which focuses on Multiplex of
forces lack of cause and effect change and confusion in the business environment which affects
decision making and leadership (Lubowiecki-Vikuk and Sousa, 2021). Handling complexity of
the business environment is an important part of responsible leadership as it supports effective
decision making and helps find the most beneficial solution for various issues. In context of
Marks and Spencer, the respective company needs to adopt suitable business practice for
handling complex business environment caused by the COVID-19 pandemic. the COVID-19
pandemic has increase the complexity of corporate world as is this government ducted and
various measures need to be taken to ensure safety of employees and consumers. The most
effective business practice which can help Marks and Spencer deal with complex environment in
the post COVID world is implementation of remote working and flexible working environment
through digital and advanced technology. this will help Marks and Spencer deal with complexity
of the business environment by ensuring safety of employees in consumers while also
maintaining smooth functioning of the company. Marks and Spencer will be able to maintain an
effective functioning supply chain and provide consumers quality products without risking
safety. The positive impact of this business practice is that it will increase employee satisfaction
well the negative impact is it cyber security risks as it will increase the usage of digital
technology at the company.
The last element of the model is ambiguity which centers around the capability of
miscommunication mixed meanings and conditions in the business environment which can
create confusion (Raghuramapatruni and Kosuri, 2017). The COVID-19 pandemic has increased
ambiguity of the business environment on a global scale as consumer decision making and
behavior is changing and shifting towards online purchase while supply chain movement is also
affected because of government restrictions and stop it of production during COVID-19
lockdowns. It is important for Marks and Spencer to adopt working practices which reduces
ambiguity of the business environment in order to lead responsibly. This is because leaders at the
company will be able to take quick action for eliminating barriers and facilitating responsible and
ethical function of the company. The working practice which can help Marks and Spencer deal
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with ambiguity is to increase usage of artificial intelligence for monitoring employees analyzing
data and supporting different business functions. artificial intelligence can help Marks and
Spencer improve future forecasting and reduce ambiguity of the business environment. This will
also support responsibility ship as the company will be able to take calculated decisions on the
basis of forecasts made by the artificial intelligence technology. The positive impact of this
working practice is that it can help the company make better decisions while the negative impact
is that artificial intelligence technology can also be subject to bias and reduce cyber protection at
the organization. In this way adoption of different working practices can help the firm deal with
volatility, uncertainty, complexity and ambiguity of the business environment and move forward
with responsibility for ship.
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CONCLUSION
From the above report it is concluded that adoption of sustainable business practices and
ethical considerations impact business firms and external environment. Concepts such as carol’s
CSR pyramid can be used to understand the importance of sustainability and ethical
considerations in providing business firms competitive advantage. Organizations are you able to
utilize the four levels of CSR pyramids to improve sustainability, ethical trade and gain
competitive advantage. The stakeholder theory can be used to understand the implications of
ethical considerations and sustainability on stakeholders. Ethical consideration
positively impact different stakeholders including consumer suppliers community and
employees. The triple mortem line is a sustainability business model which helps business firms
gain profitability while ensuring positive impact on environment and community. Sustainable
business firms positively impact external environment including political, economical, social,
technological, environmental and legal external environment. VUCA model is an effective
leadership model which can be used in times of high uncertainty and ambiguity as it supports the
company in identifying characteristics of organizational failures and implement effective
working practices to deal with such environment and facilitate responsible leadership.
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REFRENCES
Books and Journals
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de la Rosa and et. al., 2019. PESTEL analysis with neutrosophic cognitive maps to determine the
factors that affect rural sustainability. Case Study of the South-Eastern plain of the
province of Pinar del Río. Infinite Study.
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generation Z female students of tourism and hospitality. Journal of Hospitality, Leisure,
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Raghuramapatruni, R. and Kosuri, S., 2017. The straits of success in a VUCA world. IOSR
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Svensson and et. al., 2018. Framing the triple bottom line approach: direct and mediation effects
between economic, social and environmental elements. Journal of cleaner
production, 197. pp.972-991.
Talonen and et. al., 2021. Refining the Economic Dimension of Carroll's CSR Pyramid by
Taking Organization Form into Account. Electronic Journal of Business Ethics and
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