Assessing Alibaba Group's Sustainability Practices Essay

This essay provides a comprehensive analysis of Alibaba Group's sustainability initiatives, examining its role as a multinational corporation in retail, technology, e-commerce, and internet marketplaces. It explores Alibaba's commitment to the UN Sustainable Development Goals (SDGs) and it...Read More

Running Head: ALIBABA 0
Alibaba Group
Sustainability
Student Name:
Student University:

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In China, Alibaba Group is a multinational corporation working in retail, technology,
e-commerce and internet in the marketplaces for sellers and buyers established by Jack Ma.
The company is hosting Aibaba.com as B2B, Tmall as B2C and Taobao as C2C across the
globe. Alibaba Group works with over 24,000 employees from above 240 counties among
36.7 million users approximately. Moreover, the company provides around 5,900 product
categories in online business also aiming to be the biggest IPO (D'onfro, 2014). The mission
of the company is making business easy to do at any place by providing necessary tools
globally to the customers and helping them to find products. Also, the company wants
suppliers to work efficiently and quickly for maintaining position in the market. Alibaba
integrates sustainability continuously through managing and improving processes to add
value and pursue growth instead of only focusing on reputation of the company.
Sustainability is concerned about employee’s motivation and retention, saving energy, and
green products development helping the company to capture return on capital and growth
value (Wright, 2014). Sustainable Development Goals (SDGs) implemented by UN for
achieving better and more sustainable future by 2030 addressing global challenges. In this
essay, the discussion over characteristics of sustainable corporation in relation to Alibaba
Group considering United Nations (UN) Sustainability Goals.
Further, companies and society face the challenges linked to environmental
degradation, poverty, peace and justice, climate change, and inequality. Among all the 17
goals, Alibaba works on 16 of them that are inter-connected as well. The UN member states
adopted this agenda to provide prosperity and peace for individuals and the planet (Biermann,
Kanie, & Kim, 2017). In sustainability, the issues are related to climate, water, urbanization,
energy, science and technology, oceans, and transport. The commitment is done by Alibaba
to its stakeholders performing activities to fulfil their interests for outcomes in the company
and better operational performance. In Alibaba Group, these goals affect the results and
require development to balance environmental, social and economic sustainability. Thus,
achievement of such goals needs company to aim targets through financial resources,
creativity, technology and knowledge from overall society (Costanza, Fioramonti, &
Kubiszewski, 2016). Other than reputation, the company concentrates on reducing energy use
in and waste from operations, corporate reputation and capturing trends portfolio
management for an in sustainability, regulatory response to opportunities or constraints,
emission from operations reduction, and R&D resources commitment to products
sustainability. Also, leverage to existing products sustainability for reaching new markets or

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customers, impact management of products all through the value chain, employee motivation
and retention improvement linked to activities of sustainability, greater market share or
higher prices achievement from sustainable products, and operational risk mitigation linked
to change in climate (Cramer, Park, Olson, & Best, 2018).
According to the ESG Report of Alibaba, the issues considers business model and
culture based on sustainability that are related to human capital, environmental impact, data
protection, corporate governance, social impact, cyber-security, and intellectual property
rights protection. The characteristics of sustainable corporation are a new social contact,
focusing on human and ecological sustainability, value-based and purposive action, business
models reinvention, and building strategy into culture (ESG Report, 2018). Here, new social
contract will bring new relationships and demands for the company in relation to
environmental resources and sustainability issues. It requires making changes, and delivering
opportunities and responsibilities linked to representation of sustainable business practices.
Alibaba’s business model tries to captures, creates and delivers the value online that needs to
be successful commercially and ready for the future while being the part of the future in
various ways (Chen, You, & Lv, 2019). It is essential to attract with the society and making
sure about environmental responsibilities for the company to follow recognizing long-term
impacts on environment and society with its risks management and strategic planning
processes. The company requires maintaining the transparency for better sustainable
performance with effectiveness and long-term prosperity. Moreover, taking care of
stakeholders’’ interests for leading change in a successful way is also essential while making
economic, financial, and environmental performance better in terms of sustainability. In
sustainability, it is vital for keeping everyone safe, happy and healthy while appreciating,
enhancing and protecting environment by minimising damage through business (Mcintire,
2015). Further, sustainability generates employment opportunities in the economy while
rewarding working and improved lives.
In society, the creation of sustainability involves enhancement and protection of the
environment by using water, energy and other natural resources with care and efficiently.
Also, it involves minimising waste while reusing or recovering it with composting, recycling
or energy recovery. In case of environment, restricting pollution so for not damaging natural
systems is also important with protecting and valuing nature’s diversity. Moreover, social
factors consists of enhancing and creating buildings and places for making it work well with
protecting and valuing diversity strengthening cultural identity and local community

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(Haanaes, 2016). It also involves protecting human health with emphasizing on preventing
action to cure health service while making sure about individuals accessing housing, food,
fuel and water at nominal cost. Even, society requires to be empowered for participating in
making decision and considering their aspects of decisions as well. In case of economic
factor, sustainable corporation like Alibaba creates an economy vibrant locally giving access
to reward and satisfy work without damaging the environment nationally, locally or globally.
It is essential for the society and organisation to value unpaid work with encouraging goods,
services, facilities and other individual access necessarily while making less use of the
vehicles and minimising influences on the environment (Broad, 2014). Lastly, making
availability of opportunities for culture requires recreation readily overall.
Sustainability helps the company in extending its productive life and maintaining high
levels of performance in relation to corporation. It also maintains the welfare levels for the
generations of present and future decently with enhancing the ability of society while
maintaining to solve major issues. Also involves enhancing the ability of planet renewing and
maintaining the protection and biosphere of living species all over (Benn, Edwards, &
Williams, 2018). The occurrence of zero emissions at the time of reduction in polluting or
carbon emissions without any net adding possible can harm the climate or environment
through emitting source. Moreover, the concern of the social justice is more about creating
just and equitable universe. In relation to Alibaba Group, the company focuses on talented
employees working with them for serving the society containing passion and core values
using technology to solve problems. The impact socially can be on human capital while
operating in a high competitive market for long-term success in business. Alibaba not only
provide compensation to employees but also career development opportunities for solving the
problems globally based on the scale of “Alibaba Digital Economy” (Alibaba Group, 2018).
The values of the company are its commitment, priority to customers, maintaining teamwork,
embracing change, working with passion, and high standards while delivering integrity.
Alibaba continues to retaining and recruiting best talent, embracing diverse
workforce, and maintaining transparency in the workplace. Also, providing training to the
workforce while focusing on the social impact with minimising the issues of job creation,
consumer trust, women empowerment, and enabling small business. The initiative of
“Alibaba Poverty Relief Fund” is for Alibaba Group to be committed for poverty-stricken
communities and families improvement as an achievement of goal while focusing on
environmental sustainability, education, healthcare, women empowerment, and advancement

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of rural commerce. In China, the growing issue of climate change making governments to
work on imposing environmentally friendly regulations while the company promoting
sustainability practices through the initiative of “Blue Sky and Blue Map for Environmental
Protection” (Nisha, 2018). Alibaba Group is preparing for its greener and bigger online
business to contribute in the society while achieving the goal of supporting lifestyle up-
gradation and consumption demand stimulation through new products and brands in China. It
is possible by enabling merchants to grow businesses through data-driven consumer insights
and product innovation also with leveraging content-driven and technology engagement
recommending for delighting consumers. Alibaba’s green mission is to minimize the impact
of environment and embarked to “go green” through the platform of Cainiao network and
rewarding “green energy” through the initiative of Ant Forest (Your Story, 2019). It is
possible by utilising technology of energy-saving such as liquid-cooled servers.
Alibaba is a sustainable corporation as per the company’s reputation and performance
of operations in the market. The economic, environment and social factors in sustainability
needs investment in planet, profit and people based on its competitive edge. According to the
company’s ability for meeting the needs without compromising the sustainability of future
generates the advantage with the help of business movements, acquisition of talent and
engagement of community for the purpose of goals delivery. It consists of sustainable
growth, shareholder value and efficiency while gaining the benefits of public goodwill and
better reputation (Wulf, Zapp, Schreiber, Marx, & Schlör, 2017). The improvisation is needed
to fulfil the commitment by organising diverse efforts with an opportunity of operational
performance for gaining public credit. Alibaba ensures to make balanced and equitable
decisions in relation to achieving outcomes where it is the responsibility of management to
make decisions and take actions also enhancing the interests of stakeholders for the welfare
of the society and company. In China, the objective of Alibaba Group is to achieve growth
considering triple bottom line depending on the regulations (Brooks, Longhurst, Kossmann,
& Odeh, 2018). Further, there is unaccounted costs while fulfilling the needs of the
consumers with encouraging the growth promoting distribution system and more such
concerns.
Alibaba Group also faced the challenges linked to behaviour of employees, impact of
offline retail, infrastructure of distribution and manufacturing, rural to urban inequality,
protecting “Intellectual Property Protection Platform”, corporate governance compliance with
no clarity of laws and regulations in China, and international focus on one-way trade, cost

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implications and no improvisation in unproven benefits as well. The company is committed
to social causes to respond to the issues fairly with the interests of stakeholders’ evaluating
and empowering within Alibaba’s operational efficiency. Hence, it can be possible to solve
through financing, training and technology (Davidson, Ding, & Marshall, 2017). To
conclude, the characteristics of sustaining corporation define Alibaba Group clearly stating
economic, environmental and social factors implied to offer communicating methods and
opinion information consistently related to the issues currently faced by the company. The
company can use sustainable development and CSR (Corporate Social Responsibility)
practices taking care of the stakeholders’ interests as well for the success in future by
maintaining relationships and commitment within the market. In sustainability, the relation is
with innovation and technology while proper management and developing investment
continuously. Alibaba Group is a sustaining corporation as the company has taken several
initiatives for maintaining sustainability concerning economic, environmental and social
factors.

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References
Alibaba Group. (2018). Social. Retrieved from Alibaba Group Holding Limited:
file:///C:/Users/SystemJP/Downloads/902748760_Alibaba-ESG-Report-2018-
Social.pdf
Benn, S., Edwards, M., & Williams, T. (2018). Organizational Change for Corporate
Sustainability. New York: Routledge.
Biermann, F., Kanie, N., & Kim, R. (2017). Global governance by goal-setting: the novel
approach of the UN Sustainable Development Goals. Current Opinion in
Environmental Sustainability, 26, 26-31.
Broad, M. (2014, September 14). Alibaba: What exactly does it do? Retrieved from BBC:
https://www.bbc.com/news/business-29077495
Brooks, I., Longhurst, J., Kossmann, M., & Odeh, M. (2018). Implementing the United
Nations sustainable development goals for the systems engineering of multinational
corporations. INCOSE International Symposium, 28(1), 1399-1411.
Chen, D., You, N., & Lv, F. (2019). Study on Sharing Characteristics and Sustainable
Development Performance: Mediating Role of the Ecosystem Strategy. Sustainability,
11(23), 6847.
Costanza, R., Fioramonti, L., & Kubiszewski, I. (2016). The UN Sustainable Development
Goals and the dynamics of well-being. Frontiers in Ecology and the Environment,
14(2), 59.
Cramer, A., Park, J., Olson, E., & Best, E. (2018, August 21). The Future of Sustainable
Business. Retrieved from BSR: https://www.bsr.org/en/our-insights/report-view/the-
future-of-sustainable-business
Davidson, S., Ding, W., & Marshall, A. (2017). How Chinese executives view economic
challenges and global opportunities. Strategy & Leadership, 45(3), 30-37.
D'onfro, J. (2014, April 16). 22 Astounding Facts About Alibaba, The Giant Chinese E-
Commerce Company Yahoo Depends Upon. Retrieved from Business Insider:
https://www.businessinsider.in/tech/22-astounding-facts-about-alibaba-the-giant-
chinese-e-commerce-company-yahoo-depends-upon/articleshow/33831522.cms

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ESG Report. (2018). Foundations for Sustainable Growth. Retrieved from Alibaba Group:
https://esg.alibabagroup.com/ui/pdfs/Alibaba-ESG-Report-2018.pdf
Haanaes, K. (2016, November). Why all businesses should embrace sustainability. Retrieved
from IMD: https://www.imd.org/research-knowledge/articles/why-all-businesses-
should-embrace-sustainability/
Mcintire, L. (2015, March 27). Ten Characteristics of the World's Best Corporate
Sustainability Programs. Retrieved from CSRwire:
https://www.csrwire.com/blog/posts/1543-ten-characteristics-of-the-world-s-best-
corporate-sustainability-programs
Nisha. (2018, September 5). Overview of Alibaba Group’s Corporate Social Responsibility
Efforts. Retrieved from ITVoice: https://www.itvoice.in/overview-of-alibaba-groups-
corporate-social-responsibility-efforts
Wright, C. (2014, September 16). So What Exactly Is Alibaba? Retrieved from Forbes:
https://www.forbes.com/sites/chriswright/2014/09/16/so-what-exactly-is-alibaba/
#226cfcb19433
Wulf, C., Zapp, P., Schreiber, A., Marx, J., & Schlör, H. (2017). Lessons learned from a life
cycle sustainability assessment of rare earth permanent magnets. Journal of Industrial
Ecology, 21(6), 1578-1590.
Your Story. (2019, October 22). Alibaba goes bigger and greener with 11.11 online shopping
festival, focus on new biz. Retrieved from Dailyhunt:
https://m.dailyhunt.in/news/india/english/yourstory-epaper-yourstory/
alibaba+goes+bigger+and+greener+with+11+11+online+shopping+festival+focus+on
+new+biz-newsid-143296060

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Appendices
Exhibit-A
Sustaining
Organisation
Characteristics
How does it apply to the
Alibaba Group?
What United Nations
Sustainability Goals
are relevant and why?
1. A new social contract Alibaba maintains relationship
with its stakeholders
It promotes gender
equality and education
achievement across the
globe
2. Focus on human
sustainability
Human capital is influenced and
company keeps on recruiting and
retaining talented workforce to
work efficiently
Alibaba makes sure
about job opportunities
creation and
availability. Also takes
care of employees
health and safety for
better balance and living
standards between work
and personal life
3. Focus on ecological
sustainability
Focused on carbon emissions and
wastes reduction
Production and
consumption patterns
generates sustainability
while taking urgent
actions in relation to
climate changes and its
influence on natural
resources
4. Reinventing business
models
Make sure about the vision,
mission and goals achievement
taking help from corporate
governance and business model
sustainability
Using resources to
restore, promote and
protect for avoiding
waste
5. Purposive, value- Actions are taken by the company It helps in strengthen

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based action to fulfil the purpose of sustaining
corporation that Alibaba is as per
its reputation in the market with
completing the needs of
customers
the revitalisation and
implementation reason
of global partnership for
sustainable development
6. Building strategy into
the culture
The strategy of the company is
building the culture respectively
to integrate sustainability along
with ESG factors and interests of
stakeholders
The peace and
prosperity company
prepares to promote for
building accountable
and effective
corporation