Analyzing CBI's Sustainable Business Strategy: A Detailed Report

This report provides an in-depth analysis of the Confederation of British Industry's (CBI) sustainable business strategy. It begins with an introduction to sustainable development and its importance, followed by an examination of the global sustainability agenda, including Agenda 21 and its key areas such as social and economic dimensions, trade, and financial support for developing nations. The report then analyzes current forces impacting the sustainable environment of businesses, including stakeholder analysis, sustainable development policies, implementation plans, corporate culture, and performance measurement. It also discusses the impact of sustainability issues on business organizations, such as metrics for measuring sustainability, government policies, customer behavior, and the integration of sustainability into business strategies. Finally, the report explores the extended boundaries of sustainable business organizations, emphasizing the importance of considering stakeholders like customers, suppliers, regulatory authorities, and the community. The report highlights the CBI's role in promoting sustainable practices and ensuring ethical operations across the business spectrum.

Sustainable Business Strategy

Table of content
Introduction......................................................................................................................................3
Task 1 ..............................................................................................................................................3
Analysis of global sustainability agenda.....................................................................................3
Current forces for the alteration in sustainable environment of business....................................4
Impact of current sustainability issues on business organization................................................7
Task 2 ..............................................................................................................................................8
Extended boundaries of the sustainable business organization...................................................8
Impact of structure and objectives on sustainability aspects of business....................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
Sustainable development can be termed as development strategy formed to satisfy present
demand without affecting environmental factors. In simple terms, sustainable development
means such a development which fulfills present needs and requirements of people or business
organizations without compromising with the abilities to meet demand of future generation
(Ghosal, 2015). There are two key things involved in sustainable development namely, the
concept of needs and the idea of limitations. In this report, Confederation of British Industry is
selected in order to provide secondment in order to bring sustainable development in the
economy by compromising with number of issues and generating new ideas in the firm for better
utilization of resources.
Task 1
Analysis of global sustainability agenda
For the sustainability development of 21st century global action plan has been prepared by
regulatory authorities. This plan is known as Agenda 21. Main objective of this action plan is to
satisfy demand of present economy without hampering the ability of fulfillment of needs and
expectation of future generation (Teece, 2010).
There are number of chapters included in the agenda which helps to resolve the issues of
various social entities. For this aspect, support is provided by both government and non-
government authorities. However, as a matter of fact, in every area, activities performed by
human resources of business firm impacts the environment to much deeper extent. Some of the
key areas have been described with their basis for actions, objectives and means of
implementation. They are explained below:
Section first: Social and economic dimensions Promotion of sustainable development through trading activities
o Approach of this action: - In this section, consistent trading system which are
open and equitable, secure and non-discriminatory system with the main objective
of sustainable development results in growth of optimal distribution of global
production on the basis of competitive advantage (Boons,2013). However, this
approach needs commitment for the feasible implementation of economic policies
for effective management. On the other hand, there are several developments

which have provided new opportunities and threats that could had a great impact
over international trading environment.
o Objectives: - The main objective of such a sustainable development is to attain
accessibility of market of developing countries for the exports activities.
o Means of implementation: - Financing and cost evaluation terms which includes
non-concessional, depends on the specific strategies and programmes
governments decides on the implementation. To develop mutual support of trading activities and environmental factors
o Approach of this action: - According to this chapter, there should be coordination
between trade policies and environmental factors (Boons, 2013). Furthermore, an
open and multilateral trading system results in more effective as well as efficient
allocation and utilization of resources. Simultaneously, it leads to increased
production by minimizing demands on the environment.
o Objectives: - Major objective of this chapter is to develop proper support between
trading activities and environmental factors for the promotion of approach of
sustainable development.
o Means of implementation: - In this situation as well, the means of
implementation of such a sustainable development is financing and cost
evaluation. To provide appropriate monetary funds to the developing nations for the sustainability
development
o Approach of this action: - For the economic development, growth and welfare of
developing nations huge financial sources are required. With these monetary
funds, investment will be made be regulatory authorities in development policies
(Christersson and Rothe, 2012). Not only that but needs and requirements of the
developing population can also be fulfilled with appropriate investment amount.
o Activities: - Meeting international targets of official growth assistance funding
and addressing the debt issue.
o Means of implementation: - Financing and cost evaluation.

Current forces for the alteration in sustainable environment of business
Description of current forces for the alteration in sustainable environment of business is
enumerated below:
 Stakeholders: - Stakeholders analysis is very crucial for identifying all the factors either
directly or indirectly affects operations and procedures of Confederation of British
Industry. Stakeholder analysis helps to define issues, concerns and information needs of
stakeholders regarding cited firm’s organizational sustainable development activities. In
this context, examining the parties that have vested huge sum of interest in the cited
industry. This is the major aspect of concept of sustainable development (Fowler, 2007).
This aspect also enhances corporate accountability of organization.
Furthermore, it is considered as one of the key difference between sustainable and
conservative management practice. On certain occasions, stakeholder analysis may result
in conflicting expectation. For instance, in rare cases, customer’s demands for new and
environment safety products and services but from the industry point of view they will
consider profitability and growth perspective. Confederation of British Industry speaks
for 190,000 businesses, made up of around 1,500 direct and 188,500 indirect members.
Due to this aspect, they are required to balance customer expectations and growth factors. Sustainable development policies and objectives: - Such objectives are considered on the
basis of core values which are expected by the workers of company with respect to
sustainable development. With this aspect, target are set in order to ensure standard
operating performance. In this regard, senior management of should take responsibility to
initiate policies and objectives for the members part of it regarding its sustainable
development (Melville, 2010). Most of the economics are of the view that a policy on
environmental responsibility is a very crucial as well as advantageous action to attain the
objective of sustainable development. However, there are various advantages of
compulsion policy of sustainable development. It is because; policies and objectives on
sustainable development is defined by the CBI and it will be mandatory to be complied
by the members. Implementation plan: - Designing and executing an implementation plan is very crucial
for the management system changes that are needed in order to attain sustainable
development objectives (Teece, 2010). Planning objectives through meetings and

discussion is not well enough but implementing those plan and policies in the business
organization affects the entire firm as it changes the operations of the firm. Sustainable
development plans and policies designed by the CBI should be communicated with all
the members in a formal meeting before implementing them into action. It is necessary
because without concerning with stakeholders, chances of disputes mat arise and it
becomes even difficult for the firm to implement changes. Sometimes, it is observed that
various businesses resist changes if they feel it inappropriate so it can be said that it is
very crucial to communicate with the members before implementing changes (Welford,
2013). Supportive corporate culture: - An appropriate corporate culture is very essential for
successful implementation of plans and policies for sustainable development.
Implementation of approach of sustainable development is not easy because most of the
business organizations tend to experience a kind of renewal in the organization. In this
aspect, CBI can declare benefits for the implementation of sustainability in business
entity. This approach had assisted not only in generating innovative ideas but it also helps
the firm in generating enthusiasm in the decision making program itself. Most of the
organization as management is committed to operate commercial activities in socially
responsible manner (Kronlid and Öhman, 2013). However, this may be attained only
after retiring. In some organizations, manager finds it difficult to change their role and
perceptions while developing sustainability with the workplace. In multinational
companies, managers do not like to change their attitudes toward work but try to
implement changes in pre-defined manner.
 Development of standard measures for the assessment of performance: - The
implementation of sustainable development will be assisted by preparation of reports by
monitoring performance of member businesses (Williams and Schaefer, 2013).
Performance needs to be measured on continual basis in order to identify the
effectiveness of implemented actions. If the sustainability development objectives do not
work well, it can be identified with through measuring them. But in many of the cases,
most of the organizations are well ahead of government in establishing sustainable
development. Though government make lot of efforts in designing sustainable
development in each and every business firm but in some cases, organizations do not take

enough interest and in other cases, firms establishes sustainable development initiatives
even better than the regulatory authorities (Ghosal, 2015).
Impact of current sustainability issues on business organization
Some of the issues which create huge impact on sustainable development of CBI are
enumerated as below: Metrics for the measurement of sustainability: - It is very difficult to tackle with issues
and goals without obvious metrics. However, it is often very difficult to measure
sustainability initiatives as they affect businesses as well as market at macro level.
Moreover, there regulatory implications are also unclear as well (Bocken, 2014). Impact
of this metrics cannot be immediately identified as it is directly affected by the aspect that
who had implemented this policy and at what level. Government policies are required to be developed by considering its integration with
the objective of sustainable development: - In this regard, the regulatory authorities have
number of tools at their disposal such as taxes, rules and regulations, markets for the
implementation of steward environmental resources in the businesses. Customers do not consistently factor sustainability into their purchase decisions: -
customers are likely to behave differently at the time of purchasing products and services
from the firm. However, it is necessary for the CBI to understand how consumer’s values
sustainability in the context of other product attributes. This aspect will assist CBI in
developing services that meet their needs. Implementation of sustainability in business strategies : - In most of the business firms,
managers find it difficult to fit sustainability in their firm. The main reason behind it is
differences in the nature of business as uniform guidelines is difficulty to form by
considering viewpoints of all the members.
 Other factors: In most of the cases, business organizations find it difficult to identify the
crucial threats and opportunities for business (Slack, 2015). Organizations in some cases
have trouble in communicating their good practices credibly and keep away themselves
from being perceived as greenwashing. Better guidelines are required in order to engage
major stakeholders of the business. There are no common set of rules for sourcing
sustainability.

Task 2
Extended boundaries of the sustainable business organization
There has been a great impact of business organizations on broad range of stakeholders
either directly or indirectly in their course of actions. It is because; the Confederation of British
Industry has a responsibility towards all the members business. By considering this aspect, CBI
is required to assure that sustainable policies are beneficial for businesses as well as
environment. In addition to this, CBI should ensure that member organizations are operating in
fair manner by considering all ethical aspects. (Maas and Reniers, 2014). Moreover, owner of the
businesses should receive excellent return on investment on sustainability and along with that,
they should properly disclose relevant information and their suggestions during the decision
making programs should be respected by all the members.
Sustainability principles must extend across the boundaries of the business in order to
involve its customers, suppliers, regulatory authorities, competitors and society or community
within which the firm operates its procedures. In the extended boundaries of sustainability,
customers should be given appropriate services. They should be treated fairly and with dignity
(Ortiz‐de‐Mandojana and Bansal, 2015). Their cultures and traditions should be respected by the
member organizations for the purpose of retaining the for long term objectives. Along with that,
proper health and safety measures should be considered and they should be provided the highest
quality of services.
Dealings about services by CBI should be transparent and truthful so that the firm can
gain trust or faith towards their members and environment. Moreover, relationships with
members should be based on long-terms objectives and should also be truthful without any
biasness (Klettner, Clarke and Boersma, 2014). Involvement of members in decision making
procedures is also important for getting valuable suggestion from them for welfare of entire
industry. However, CBI should be very careful at the time of while selecting policies and
simultaneously should ensure that members follow good employment and environmental
practices. Furthermore, competition should be fair and respectful in the industry. There should
not be involvement of any kind of biasness or unlawful activity practiced by the firm in order to
gain competitive advantage. The society within which the company is operating its business
should be supported by the firm and along with that, the cited firm should contribute to uplift the
living standard of people existing in the society (Gamble and Thompson Jr, 2014).

Impact of structure and objectives on sustainability aspects of business
Number of changes is required to be made by CBI in order to make its operations and
procedures even more sustainable. Basically, these changes can be initiated with change in
leadership approach of the industry. The main reason behind that is, more “pro-sustainability”
vision and culture can be developed with effective leadership management. However, alterations
in industry policies should be done in accordance with the supply chain and valuable additions.
Guidelines should be developed for members for sustainable development.
However, in most of the case, a distinct tam is developed by the CBI in order to measure
and analyze social as well as environmental impact of the industry. Moreover, technological
changes are required to be implemented and made more eco-efficient technology needs to be
chosen by industry. In the short term, sustainable processes require essentially more expenditure.
As a result, profitability decreases and stakeholders are disappointed as well. In long term aspect,
sustainable business operations can be bring significant advantages such as enhanced operational
efficiency, reduction in cost, positive publicity and conservation of the environment. Improved
stakeholder’s relationships, development of better and advanced products, competitive advantage
and reduced risk of lawsuits or obsolete technology.
Conclusion
In accordance with the present study, conclusion can be drawn that sustainability
development is very crucial for economic growth. CBI can developed effective policies by
considering norms of the members. This aspect should be supported by value addition of
businesses along with the environmental welfare.

References
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