Sustainable Management in the Chocolate Industry

This assignment examines the crucial role of sustainability in the chocolate industry. It outlines strategies for achieving economic sustainability through innovation and profitability, emphasizing social responsibility through ethical labor practices and fair trade initiatives. The importance of environmental sustainability is highlighted by promoting recyclable packaging, minimizing waste, and adhering to environmental regulations. The assignment also discusses risk management techniques and social impacts on communities.

Running head: SUSTAINABLE MANAGEMENT
Operation of Tourism and Hospitality Management
Name of the Student
Name of the University
Author Note

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SUSTAINABLE MANAGEMENT
Procedures to manage sustainability in the business
Economic
To manage economic sustainability in a chocolate business the organization should
focus more on earning profits (Schaltegger & Wagner, 2017). However, this can be done if
they can bring innovation, prosperity as well as productivity in their products.
Social
To manage social sustainability of the business tax payment is essential and holds
high benefits. This will help the business to save hundreds or thousands of dollars every year.
Tax pay can further help if the business is unable to make money then the losses can be
deducted from the income tax.
Environmental
Moreover, to manage environmental sustainability in chocolate business they can
100% recyclable products where no material will be wasted. From the wrappers and the
chocolate boxes everything should be made with 50% recycled materials and must be fully
recyclable (Epstein & Buhovac, 2014).
Code of ethics
For visitors
Here in the chocolate business the customers are the main visitors for whom there will
be no such code of ethics.
For employees
However, for the employees their code of ethics will represent the values of the
company through which a consistent customer services will be provided (Beeri et al., 2013).

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Customers must be treated like family, employees should always listen to the customers and
positive attitudes should be maintained.
Environmental Accreditation
In a chocolate business, the sole responsibility must be regarding their sustainable
farming whether the resources are sourcing locally or overseas. Among them, the most
appropriate will be UTZ certification (Kruschwitz, 2012). Through this, the farmers can get
more opportunities to adapt better methods of farming, improved work conditions as well as
take better understanding of their environment.
It can further have cocoa certification, which will enormously help the business to
enhance its brand name. On the other hand, it can also boost the supply chain and helps in
narrating a more trustworthy story around the emergence of the products.
Environmental standards of the business
Environmental management is an important part in any business in Australia.
However, there are several environmental laws, which can affect any business severely. State,
territory and local government together administer the environmental protection. Whatever
business one might run but it must diminish the impact on the environment and enhance their
bottom line. The basic environmental standard that this chocolate business must adhere to is
minimizing their carbon footprint, diminishing the wastes (Kizil et al., 2013). Thus,
becoming more sustainable can result in energy, water as well as saving of waste
management. Apart from these Australian businesses, have competitive, consumer, product
liability, environmental legislation as well as privacy laws, which every business must
adhere.

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Environmental risks
Environmental risks factor that can affect the chocolate business can be natural
disasters legal risk factors like insurance issues, resolving disputes, contractual violations,
liabilities and so on (Smith, 2013). Moreover, regulatory as well as governmental policy
changes also act as risks. Work health and safety risks including accidents caused by
materials or location of the business. There can be economic as well as financial risk factors
like shortage of the cash flow, rising costs or increase in interest rate.
Reducing techniques
A risk management plan is highly recommended along with a business impact
analysis so that the potential risk factors of the business are identified as well as minimized at
their roots and thus, the business can be saved from its negative impacts. This risk
management plan should detail the strategies to deal with the risky situations.
Social impacts
On the community and users of the land
The contemporary society is perceived to be a platform from where the health as well
as equity concerns are present among the people. Therefore, this Chocolate business should
also be connected with fair trade certification as well as with direct trade practices, which
mainly helps in enhancing the living conditions of the farmers or traders, connected with
whom the work of sustainability is carried forward (Raynolds, 2012). Moreover, the business
is very much committed towards promoting the principles of human as well as labour rights.
Therefore, this business will try to provide healthy products, as well as try to utilize the
labour of that very country where the business is situated. Along with it for this very
business, the raw materials are mainly preferred not to be exported from other countries.
Thus, the ingredients are mainly utilized from the home country.

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References
Beeri, I., Dayan, R., Vigoda-Gadot, E., & Werner, S. B. (2013). Advancing ethics in public
organizations: The impact of an ethics program on employees’ perceptions and
behaviors in a regional council. Journal of Business Ethics, 112(1), 59-78.
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in
managing and measuring corporate social, environmental, and economic impacts.
Berrett-Koehler Publishers.
Kizil, C., Eddy, V., Clary, L., & Crowell, K. (2013). Hershey's Entry to the Australian
Market with a New Brand: An Accounting and Marketing Perspective. Emerging
Markets Journal, 3(2), 97.
Kruschwitz, N. (2012). Why Kraft Foods cares about fair trade chocolate. MIT Sloan
Management Review, 54(1), 1.
Raynolds, L. T. (2012). Fair Trade: Social regulation in global food markets. Journal of
Rural Studies, 28(3), 276-287.
Schaltegger, S., & Wagner, M. (Eds.). (2017). Managing the business case for sustainability:
The integration of social, environmental and economic performance. Routledge.
Smith, K. (2013). Environmental hazards: assessing risk and reducing disaster. Routledge.