Business and Society: Strategies for Eco-Sustainability in New Zealand

This report provides an in-depth analysis of how New Zealand organizations address ethical and eco-sustainability issues. It examines the importance of sustainable consumption and production for long-term economic growth, considering environmental and social needs. The report explores the strategies of key organizations like Air New Zealand and those within the tourism industry, evaluating their approaches to carbon offsetting, ethical codes of conduct, and participation in programs like Green Globe. It highlights the significance of government regulations and the increasing awareness of consumers and investors regarding sustainable practices. The paper also discusses the concept of a green economy and the specific sectors it encompasses. The report concludes with recommendations for organizations on improving their strategies for addressing ethical and eco-sustainable issues. It emphasizes the need for businesses to adapt to changing market conditions and incorporate sustainable practices to enhance their reputation and ensure long-term viability.

Running head: BUSINESS AND SOCIETY
Business and society
Name of the student
Name of the university
Author note

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Table of Contents
1. Introduction...........................................................................................................................2
2. Eco-sustainability and organization.........................................................................................3
3. Air New Zealand strategies for ethics and Eco-sustainability.................................................5
4. Tourism industry strategies for ethics and eco-sustainability..................................................7
5. Analysis of Eco-sustainability Strategies in NZ.....................................................................10
6. Ethics and organizations.........................................................................................................12
7. Eight principles for preserving profitability and integrity......................................................12
8. Analysis of strategies used by organizations to address ethical issues in NZ........................14
9. Conclusion..............................................................................................................................16
References......................................................................................................................................19

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1. Introduction
It is important to promote sustainable consumption along with production for any
organization for the purpose of achieving long term economic growth consistent to the social and
environmental needs (Erdelyi, 2013). Majority of the policies framed by the government
emphasizes on minimizing the effects of unsustainable practices indulged into by the
organization for production through imposing regulation sanctions and taxes. Ethics involve the
moral judgments of individuals in relation to what is right and what is wrong. Decisions which
are taken in relation to an organization are by its members who are individuals or groups. The
culture of the organization influences whoever takes such decisions on behalf of the
organizations. It is not a secret that in order to be successful a business must have the flexibility
to change and adapt with the demands of the market. All businesses who are aware of the present
market condition are aware of the fact that staff, investors and customers are becoming
increasingly interested in sustainability and the impact of the business on environment.
Companies are taking support of innovative processes to address the ethical and eco-sustainable
issues as well as analyzing the impact of their activities on the environment and future (Hackney
& Butler, 2017). Adopting such strategies for the purpose of sustainable development and
analyzing their own activities does not only convert the businesses in a modern venture but also
will tune with the customers along with saving long term cost and enhancing business reputation.
There are a lot of concepts behind the concept of ethical use and eco-sustainability provided by
different authors. It is difficult for the businesses to understand the real definition of
sustainability to derive the various benefits out of it (Savoia, Stefanovic & Fragassa, 2016).
The environment is degrading at a very rapid rate and global warming and climate change
is posing serious threat to the environment. These issues have become so prominent now that

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almost all humans are aware about it. The risk which is posed to the environment by global
warming and climate change is predicted to have a fatal effect on the planet in the future through
the rise of sea levels and hostile climate conditions (Rose, 2014). The issue demands rapid action
especially from the organizations whose activities are a major contributors to environment
degradation (Yang, Newman & Forlizzi, 2014). In the light awareness being spread about
sustainability the consumers and investors have also become aware of such issues and want to be
associated with organizations who are taking reasonable steps to address the situation. Therefore
to adopt with the changing market conditions the organizations are striving to incorporate
sustainable practices into their activities (Popa & Popa, 2017).
The purpose of this paper is to identify and analyze strategies which organizations in
New Zealand implement to address ethical and eco-sustainable issues. The paper deals with
specific organizations of the country and reviews their practices with respect to ethical and eco-
sustainable issue and compares such strategies to the best practices related to the areas in order to
analyze them. The paper also provided recommendation for the organizations with respect to
strategies for addressing ethical and eco-sustainable issues.
2. Eco-sustainability and organization
The concept of eco-sustainability in NZ is being recognized increasingly as good
practices. The government has made a few goals to address sustainability. According to
Chkanikova & Lehner (2015) sustainable development is the process of synchronizing principles
for the purpose of meeting human needs along with ensuring the capability of the ecosystem to
provide ecosystem services and natural resources upon which the society and economy depend.
The goal of this process is to initiate a state of society where the requirements of humans are met
along with not compromising with the stability and integrity of the eco-system. Mostly the

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concept of related to sustainable development is derived from the Brundtland Report 1998.
However ideas about sustainable forest management also add up to the concept. Through the
development of the concept its focus shifted to social and economic development along with the
protection of environment for future generations.
The United Nations in the year 2015 provided for up to 17 sustainable development goals
along with 169 targets. These goals and targets provide for a sustainable development universal
agenda globally which are called agenda 2030. New Zealand took the initiative to contribute to
the achievement of goals through combination of international leadership and domestic action on
global policy issues. For the purpose of achieving such goals the government initiated a cross-
governmental effort (Starik & Kanashiro, 2013). The goals were reviewed with respect to the
existing priorities of the government. The government have identified specific issues such as
growing the economy, improving the living standard, health and education, creating jobs,
increasing affordable housing supplies, encouraging women leadership and most importantly
protecting the environment (Brookshire, 2015). As the government recognized the importance of
sustainable development within the country the organization had been imposed with a lot of
regulations and targets they needed to fulfill in relation eco-sustainability. Mostly all
organizations across the country have adopted polices and strategies related to addressing ethical
and eco-sustainability issues (Mason, 2015).
As provided by Touboulic & Walker (2015) green economy is a mix of six primary sectors
namely, green buildings, renewable energy, sustainable transport, waste management, land
management and water management. In NZ organizations have initiated strategies to target such
areas of economy which are specifically associated with their operations (Hansen & Wethal,
2015).

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3. Air New Zealand strategies for ethics and Eco-sustainability
Air New Zealand is the flag national career of New Zealand and one of the biggest
organizations in the country. The organization states that it is aware that its success is linked to
the success of the country as it operates in a large scale. The company for the purpose of
addressing the ethical and eco-sustainable issue has set up an sustainability advisory panel. The
panel consists of internationally renowned group of external subject matter experts meeting on
half yearly basis to provide advice to the company on sustainable development. The CEO of the
company is also a part of such advisory panel. The organization is very serious with respect to
the issue had had published it first sustainability report in the year 2015. However specific
reporting standards have not been adopted by the organization although it claims that it has
abided by international reporting structure. The company is committed helping customers
minimize the effect of air travel on the environment. The company has adopted a carbon offset
program. Through this program the organization provides an opportunity to the service users to
offset carbon emission in relation to the organization. The organization is very serious in relation
to carbon emission offsetting. In the aviation industry carbon emission is generated from the use
of fuel for the purpose of airline operations. Offsetting of carbon involves the use of carbon
credits to ensure that individuals and business provide compensation for the businesses
associated with travel in order to meet the carbon reduction goals of the company along with the
move to a low carbon economy. The strategy comes into the context as soon as service users
book a ticket online. The cost of offsetting carbon emission cased by the individual customer is
automatically calculated and projected. In case the customers want to offset the carbon emission
caused by them the cost of it is deducted along with the booking the total amount for the flight.
The organization purchases offset units on behalf of the customers by using such contributions.
The company does not provide refund for the offsets purchased by them for any reason. For the

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purpose of calculating carbon emission by the customers the organization takes into account two
key factors. These factors are the Air NZ specific CO2 emission factors and the distance travelled
by the service users. The emission factors are derived from the information collected in relation
to the previous financial year of the actual used fuel across various fleet types and weight of
cargo and number of passengers carried. The factor also takes into account the way in which the
passenger is travelling which is in business premier class, economic class or pure economic class
as the space and weight allocated to the customers is altered by it. The organization reviews the
factors on an annual basis.
With respect to the NZ Emission Trading Scheme the organization has a duty to offset
emission related to domestic flights. Presently the organization is imposed with a 67% obligation
and organization has met it entirely, that to by not imposing a separate charge on customers. The
company through the emission calculator enables the customers to participate in additional and
voluntary carbon offsetting beyond the ETS obligation satisfied by the company. The cost of
purchased offset unities reflects the price the organization paid in relation to the carbon emission
offset program. The costs of emission vary overtime with respect to the units. The online
calculator initiated by the organization adjusts in accordance to the variations in carbon market
price. No administrative or any kind of fee is charged by the organization and all the money
including the net taxes contribute towards the purchase of emission units.
Through the policies which have been initiated by the organization in relation to
addressing eco-sustainability and ethical issues it can be made derived that the organization is
serious with respect to the particular areas. The best thing the organization has done in order to
address these issues is to set realistic targets (Sustainability - About Air New Zealand | Air New
Zealand., 2017).

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For the purpose of ensuring ethics the organizations take the help of a code of conduct.
The code of conduct sets out specific actions which the employees of the organization have to
undertake while dealing with each other and with the customers and suppliers of the company.
Mostly all large organizations in NZ have a well-established code of conduct in order set out
standard of dealings for their employees.
4. Tourism industry strategies for ethics and eco-sustainability
The scenery and environment are the primary strengths for the country in relation to the
international visitors. The need for eco-sustainability and ethics in relation to the tourism
industry is mandatory. There are various organizations which are associated with the industry.
One of the steps which have been taken by the tourism organizations in NZ is the Green Globe
program which is also promoted by an international organization have the objective of
sustainable travel and tourism. The program includes a worldwide certification an benchmarking
system for tourism and travel organizations in relation to a triple bottom line of social,
environmental and economic management. The participant in this program comes in all sizes and
shapes form some of the most significant hotel brands in the industry to small track operators.
The Green Globe Program is underpinned by the Green Globe standards which forms the
fundamental to standardize an operations social and environmental performance. Every
participant of the program is bench marked against particular sector indicators of benchmarking
must suitable for their operations. Through the selection of this strategy the certified and bench
marked participants and travelers are directed towards the support of those companies which
have showcased a strong desire and commitment towards sustainable practices.
Another strategy adopted in this sector is the Environmentally Sustainable Tourism
Project. This program is operated with a helping hand from the NZ government. The project is

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built upon on a successful pilot program in Northland. The program includes the enhancement of
performance related to environment with respect to the participating tourism operators. It also
includes determining methods of enhancing capability of businesses round sustainable practice,
increasing number of operators who adopt sustainability, providing support to the 100% Pure NZ
brand and becoming regional experts with respect to sustainable business practices.
The industry has its very own code of ethics setting out conducts which the organizations
are expected to follow in relation to the consumers, the employees, the society and the
environment. Ahipara luxury travel which is one of the major players in the NZ tourism industry
provide through its code of ethics and itineraries that they are more committed towards taking
actions rather than only talking about it which is a very good example of the use of leadership
and motivation theories. The company states that its commitment towards ethics and the
environment is not only limited to planting trees and donating for worthy causes but also taking
the overall responsibility towards the planet, their staff, suppliers and the society as whole as
appropriately as they do in relation to the clients. The company also boasts of addressing such
responsibility in the right way by filling all the actions with correct sprit and continuing it
personally. Theories of sustainability tries to integrate and prioritize social response to cultural
and environmental problems. On the other hand economic theories strive to protect financial and
natural capital. An ecological model strives to enhance ecological integrity and biological
diversity. However to ensure best possible results for businesses a compact theory is required to
address it profit making requirements along with fulfilling the corporate social responsibility.
The renewable energy sector in NZ is primarily associated with electricity production.
The sector mainly relies on the use of renewable energy for production in form of wind energy,
hydropower and geothermal power. This makes the country one of the lowest emitters of Carbon

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Dioxide in the world. The sector heavily relies on renewable energy and has not shown any
losses in relation to profits during the last decade. However it has increased the cost of
production and operates against the theory of consumerism which provides for the support and
protection of consumer needs. However as the modern day consumer have shown increased
interest towards green economy the use of renewable energy is very less likely to cause any
financial problems to any organization.
The green building market in the NZ is developing gradually and becoming a major part
of the construction industry. The industry is playing a major role since its inception in changing
practices across the building sector. The New Zealand Green Building Council (NZGBC) has
introduced rating tools such as green star for the purpose of bringing major changes to the
construction sector in NZ. The NZGBC has provided popular tools within the industry which
have changed the language of professionals working in it. After the global financial crises which
shifted the focus of organizations from sustainability to productivity the construction industry
was majorly focused on productivity. However there has been a shift towards the importance of
sustainability through the strategies imposed by the NZGBC. The main strategy which has been
introduced by the council is a rating tool. As provided by Van & Slawinski (2015) assessing a
strategy at regular intervals makes its implementation more effective. Partnerships and
stakeholder engagement as stated by Hull et al., (2016) very effective measure for the proper
implementation of a plan as increased partnership and engagement provides more support to the
initiative. The NZGBC in relation to this has acknowledged establishing a strong relationship
with the suppliers of the sector in order to see better relation between the clients and the tenants.
The transport sector one of the most carbon emitting sector where the use of fossil fuel is
very high. Eco-Sustainability in the transport sector is very much required towards the

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establishment of a green economy. One of the companies in NZ Mainfreight Ltd sees climate
change as a major issue surrounding businesses, governments and the planet as a whole. The
organization accepts that the operations of it are associated with generating carbon emissions.
Therefore the company has strategies in place to reduce the emissions while maintaining its
competitiveness and providing the best quality services to the customers. The company does it
through measuring carbon emission generated by it across the country and finding best
alternatives for such emissions. It strives to move domestic freights through rail as 4.6 times
more emission is caused by trucks. According to the theory of capitalism the main motive of a
business is to make profit, the company not only reduces it cost by transporting freights through
train but also ensuring less emission and environmental sustainability (Sustainability |
Mainfreight NZ., 2017).
5. Analysis of Eco-sustainability Strategies in NZ
According to Ferrell, Hirt, Ferrell (2016) most organizations operating in NZ have
incorporated these principles in some way or the other into their operating strategies. About 60%
of the overall energy supply of NZ comes from fossil fuels like gas, coal and oil out of which
40% of the energy in imported by the country mostly in form of oil. The country aims at
achieving 90% of its electricity production from renewable sources however there is a
proportionate decline in the energy derived from renewable resources in the country. In 1975
90% of the electric production resulted out of renewable energy whereas in the number declined
to 74% by the year 2015. One of the largest increase in emission is seen in the electric sector
since the year 1990. However in spite of the decline no new hydrogenation plants have been
produced in the country. The organizations working in NZ have indentified and initiated
strategies in relation to a few areas such as emissions, transport energy efficiency, housing

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energy efficiency, land use, environmental monitoring and biodiversity. As provided by Gibson
(2007) the real risk which is faced by the country as it comes out of the period of recession is that
the country is going back to the mediocre economic performance which has been identified in
much of the recent past, the country has to do much better than just muddling through.
One of the major trends which have been identified in the country with respect to eco-
sustainability is that the organizations are spending huge capital towards establishing an
infrastructure for green economy. As provided by OECD economic growth in the recent years
has been much faster in NZ than any other OECD country. This is a significant proof that the
strategies which have are been adopted by the organization towards eco sustainability are turning
out to be a success for the country.
The companies are taking measures to reduce the intensity of the carbon fuel usage and
adopt the use of Hydrogen, Bio fuels, CNG and electricity. According to Knapp (2007) the
strategy provides energy security through diversification, reduction of oil dependence and undue
oil price exposure however it also initiates technological spillover such as battery technology for
consumer electronics. The strategy ensures health benefits to the society through reduction of
urban air pollution by the use of CNG and Bio fuels, however its net effect is not clear. The use
of hydrogen and electricity reduces mist pollutants however the shift to diesel increases pollution
potentially. The strategies by organizations also induce road safety and enhance health via noise
reduction. As provided by Monin (1999) leadership is one of the main elements to ensure the
best possible implementation of policies and strategies takes place. Without leadership even the
best polices for addressing an issue fails. According to the transactional leadership theories the
behaviors of the leaders have a strong impact on the followers. Therefore the better the leaders in
the organizations the better would be the implementation of policies and procedures by it. The