Sustainable Business Practices in the Tea Industry in Sri Lanka

SUSTAINABLE BUSINESS PRACTICES 1
Sustainable business practices
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SUSTAINABLE BUSINESS PRACTICES 2
The tea industry in Sri Lanka contributes about 30 % of the country’s exports which translates to
foreign exchange. Despite the development, the sector faces numerous environmental and social
issues where labor issues are also included. The tea industry has been adversely affected by
changes in weather conditions in the region. A tea plantation requires constant weather
conditions so as to have quality tea which will boost the sales of the involved company. Extreme
rainfall which is experienced in the area affects the growth of tea as the plants require sufficient
sunshine for photosynthesis processes (Gunathilaka, et al.2017, p.581). Such weather conditions
hinder the production of quality tea and crop production. Minimum crop production results in
reduced exports and foreign revenue associated with the exports.
Persistent drought in the tea growing areas has affected the crop production and quality of the
produced tea. The change in weather conditions due to various factors such as global warming
has affected tea yields in the country. The adverse weather conditions affect the commercial
viability of the tea as this may result in poor quality tea which fetches low prices in the
international markets. The social issues affecting the tea industry in Sri Lanka is labor issues
because the sector is very labor intensive (Kelegama, 2014, p.135). This means that a lot of
revenues are spent on paying the workers as they have joined trade unions which are very
powerful in the country. The buyers also pay attention to whether the tea plantation company’s
practices environmental sustainability and socially responsible business practices. Failure to
follow such practices leads to low demand and low prices for the tea.
Paradise plantation ltd has employed various mechanisms to address the environmental and
social challenges affecting the tea industry. The strategies put in place to address adverse
weather conditions include; reduction of greenhouse emissions which is one of the major
contributors of global warming which leads to changes in weather condition patterns. Protection

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of biodiversity and water sources has also been employed by the company to counter
environmental issues in the tea sector (Esham, and Garforth, 2013, p.72). The company has also
embraced tree planting programs in the tea plantations so as to neutralize carbon which is the
major cause of global warming. The company has also resulted in environmentally friendly
practices which have ensured environmental sustainability in the tea sector. Labor issues in the
tea sector according to the company can be addressed by mechanizing harvesting of the tea and
ensuring there are effective management controls in the tea estates. The company also maintains
a continuous dialog with the workforce and this ensures that grievances are sorted out before
they escalate and lead to strikes and workforce go-slows in the company (Wickramaratne,et
al.2014, p.50). Workplace inclusivity can also be used to address labor-related issues in the
organization.
Socio-political and economic context of the company has affected management, accounting, and
assurance process of the company in various ways. Buyers pay close attention to whether the tea
plantation companies adhere to environmentally friendly practices and socially responsible
practices aimed at maintaining the environmental sustainability. Such interest from buyers has
forced management to ensure that the company follows all rules and regulations pertaining to
environmental conservation as the failure to stick to the set regulations will lead to low demand
for the tea and also low prices (Beddewela, and Herzig, 2013, p.142). The management has
embarked on improving the well-being of the workers by improving the living environments of
the workers and promoting living health of the workers. It is the duty of the management to
ensure that workers have a conducive working environment and also that they live comfortably
as they reside inside the tea plantation estates.