Alibaba Group's Corporate Sustainability: A Comprehensive Evaluation

This report provides a comprehensive analysis of Alibaba Group's corporate sustainability practices, evaluating its performance against the UN Sustainable Development Goals (SDGs). It examines Alibaba's approach to managing stakeholders, emphasizing the importance of engaging with the local communities and aligning with the UN's responsible consumption and production goal. The report delves into Alibaba's focus on human sustainability, highlighting its efforts in promoting equality, talent management, and job creation, as well as its commitment to ecological sustainability through initiatives like energy efficiency and reduced carbon emissions. Furthermore, the analysis assesses Alibaba's business model, emphasizing its adaptability and focus on cybersecurity and intellectual property protection. Finally, the report explores Alibaba's value-based actions, focusing on its ethical considerations and the importance of building strong relationships with partners and customers to generate brand value and ensure long-term sustainability. The report concludes that Alibaba Group is working to incorporate sustainable practices into its organizational culture, which is vital for its ongoing expansion in the global market. The report is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Managing the stakeholders..........................................................................................................3
Focus on human sustainability.....................................................................................................4
Ecological sustainability..............................................................................................................6
Refurbishing the business models...............................................................................................7
Value based actions.....................................................................................................................8
Incorporating into the organisational culture...............................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

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Introduction
Corporate sustainability is considered to be one of the major concern for the current
business enterprises in order to ensure their business in the global market. In this regard, this
discussion is trying to project keen focus on Alibaba Group and evaluating the sustainability
measures that the company follows are adequate and pragmatic. The reason behind choosing
Alibaba Group as the case study organisation is that the company is strategically expanded its
business all over the world with a robust annual consumer growth in not only in the Chinese
market but also within the South East Asian market and in Australia as well. This rapid
expansion of business certainly creates question about the sustainability framework of the
organisation. Therefore, this research is choosing the UN sustainable development goals as the
core principle of corporate sustainability and carries out a rational argument over the
sustainability framework of Alibaba Group with the help of empirical evidences.
Discussion
In course of discussing, the corporate sustainability framework of Alibaba Group, it is
essential to relied on the prescribing goals of United Nations that will foster a guideline for
evaluating the process. As per the UNSDG 2019, it can be stated that there are 17 goals that have
to be follow in order to ensure a better place to live with sustainable approach. The goals are
associated with no poverty, zero hunger, good health and wellbeing, quality education, gender
equality, clean water and sanitation, affordable and clean energy, economic growth, innovation
and infrastructure development, reduction of inequalities, sustainable cities and communities,
consumption and production, climate action, marine ecology, life on land, peace and justice and

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the partnership to achieve the goals (unglobalcompact.org, 2019). Based on this understanding, it
can be stated that the sustainable development goals of United Nations are highly important to
make a better world to live. The business organisations are playing a crucial role in this regard
that will facilitate a better environment for all the stakeholders.
In addition to this, Benn, Edwards and Williams (2018) mentioned that there are six
phase that every corporate enterprise must follow in order to build up an effective and proper
sustainable development measure. It comprises a link with the potential stakeholders, focusing
on the community, ecological sustainability, fostering a business model which is associated with
sustainable development, initiating value based action and building strategy to continue the
sustainable development process. This steps are definitely provide a clear insights into the
sustainability process that all the business organisation should follow. As a matter of fact, those
steps follow the UNSDG measures for establishing an international standards of corporate
sustainability.
Managing the stakeholders
Managing stakeholders and informing them about the importance of sustainability is
considered to be the most pertinent aspect that the business corporates are possessed as the first
step towards establishing sustainable organisational development. According to Lozano (2015)
the sustainability practice within organisation requires policy and procedures to be addressed to
the stakeholders so that they will get a clear insights into the importance and significance of the
sustainability practice. Engaging the stakeholders paves the way for bolstering the decision
making of the organisation with the support from its stakeholders. The stakeholders’ engagement
will boost up the sustainability practice. Henceforth, the companies are looking forward to
engage the stakeholders into the sustainability development process.

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Based on this understanding, Alibaba Group also tries to engage its stakeholders to a
great extent. As a matter of fact, the sustainability approaches are bestows in the mission and
vision of the organisation. As per the company details it can be derived that the mission
statement of Alibaba Group is to make an optimistic environment to do business anywhere.
Therefore, Alibaba Group is willing to engage the local communities and societies within its
business activities by creating value for customers. As per the UN report Goal 12 is comprised
with responsible consumption and production (Unstats.un.org, 2019). Therefore, Alibaba also
takes great care of its services and makes it effective enough to attract new customers. The
services that Alibaba Group provides to its customers are included customer solutions, building
trusts and earn respect from the customers and facilitating a hospitable measure for the small
business enterprises by creating opportunities and creating jobs. Moreover, keeping a good
relationship with the partner companies it becomes important for Alibaba Group to plan a charter
where the policies and interests of the company will be resonated transparently. The partner
companies are also incorporated into the social responsibility practices of Alibaba Group through
long term investment and personal contribution of time and financial assistance. As a result of
that an equal treatment is always practiced within the organisation where both the partners and
customers feel satisfied.
Focus on human sustainability
The notion of human sustainability is associated with the paradigm of equality in respect
of gender or any other discrimination. Hahn et al. (2015) opined that the human sustainability is
focused on the impact of business organisations over the development of human wellbeing. It
means the business companies are responsible to ensure safety and wellbeing of the local
communities as a part of the sustainable organisational practice. This same perception is also

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followed by the United Nations report where the Goal 3 referred to good health and wellbeing.
Apart from that Goal 5 is linked with the Gender equality and goal 10 focuses on inequalities.
Bansal and Song (2017) advocated that the human sustainability is considered to be one of the
essential part of the corporate sustainability measures where the business companies are
following unique and pragmatic approaches to safeguard the wellbeing and interests of the local
communities.
The same practice is also followed by Alibaba Group in order to set an effective
corporate sustainability practice both internally and externally. The human sustainability
measures in Alibaba Group is very strong due to its emphasis on not only the employees but the
society as well. In the internal measure Alibaba focuses on meritocracy or talent management
practice. As a result of that derogatory practices like gender biasness and other kind of workplace
discriminations can be mitigated swiftly. Embracing the talent management practice Alibaba is
willing to follow optimism, change and idealism as the core of securing the interests of its
employees. This strong value influences the organisation to empower equality and promoting
transparency into the organisational activity so that the employees can understand the importance
of organisational sustainability. On the other hand, putting emphasis on the external part, it can
be argued that Alibaba tries to take care of the society by creating job opportunities and
programs like reunion system for the missing children. The sustainability report of the company
stated that by 2017 Alibaba Group created almost 36 million jobs through its retail ecosystem
(esg.alibabagroup.com, 2018). Moreover, empowering women and children is also considered to
be a benevolent step that the organisation takes in order to establish a better human sustainability
framework.

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Ecological sustainability
The corporate sustainability is highly influenced by the eco-friendly practices. There are
list of sustainable development goals that the UN report suggests that are highly related with the
ecological sustainability. For instance, goal 6 and 7 are defined sustainability in the light of clean
water and energy consumption. Moreover, there are also climate action goals illustrated in goal
13. Therefore, it can be stated that environmental sustainability is considered to be one of the
important aspect that the business organisations should follow as a part of the corporate
sustainability framework. Based on the research of Engert, Rauter and Baumgartner (2016) the
recent degradation in environment is a result of the maladministration and malpractices of the
business enterprises. Henceforth, it is important for the business companies to take
responsibilities in terms of planning and executing a sustainability development. Therefore, the
key aspects are associated with energy consumption. Save water and taking adequate measure
towards maintaining the ecological balances.
In response to this, Alibaba Group also tries to develop an effective environmental
sustainability framework in order to procure an environmentally sustainable business practice.
Therefore, the operations department is highly concern about the carbon footprints and takes
adequate measure to reduce use of plastics and paper in packaging. Apart from that energy
efficiency is also an important aspect on which Alibaba Group is trying to work on. In this
regard, use of smart technology and renewable energies are definitely put a great deal of impact
on the environmental sustainability measures. For instance, the Qiandao Lake Data Centre
introduces an eco-friendly approach by intaloing deep water lake cooling. This practice helps to
save 300 million kWh of electricity (esg.alibabagroup.com, 2018). Moreover, the CO2 emission
rate is also reduced to a great extent with an estimation of 300,000 tons per year. Therefore, the

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cooling system effectively makes the environment better. In addition to this, for influencing the
customers Alibaba Group also introduces a new strategy to engage the customers with
environmental sustainability measures. For instance, providing green energy points for choosing
e-payment options is identified as one of the important aspects that provides Alibaba Group to
encourage the customers to use online payments and reducing use of paper. It is also referred as
important organisational framework for dealing with sustainability approach.
Refurbishing the business models
Business model is identified as the most important aspect for a business organisation to
deal with the process of delivering a unique and optimistic result to retain organisational
sustainability. Formentini and Taticchi (2016) articulated that the success of the sustainable
development is depended on the effectiveness of business models. Therefore, it is always
paramount for the business organisations to set proper business models so that it will carry out
the sustainable development framework. In response to this, the research of Grimm, Hofstetter
and Sarkis (2016) mentioned that the business model of a key to understand the process of its
sustainable practices. Henceforth, developing a flexible business model is always identified as an
important aspect for the business organisations.
In this regard, Alibaba Group also tries to develop a better business model that strongly
supports the sustainable development practices. It is within the organisational objective of
Alibaba Group to ensure the sustainable framework. For instance, putting value on the customers
and their demands Alibaba Group develops a strong cyber security action so that the sensitive
information of the customers can be protected. Goal 16 of the United Nations Development
Goals stated that peace and justice can be drawn with the help of strong organisational practice.
Therefore, Alibaba Group also puts emphasis on that perspective by securing the customer data.

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As a result of that a trust building practice can be set. Moreover, for the partner companies and
brands intellectual properties and rights protection process has been initiated. In this context, the
Alibaba Anti-counterfeiting Alliance (AACA) process has been taken to foster transparency and
communication among different stakeholders (esg.alibabagroup.com, 2018). It provides a boost
to the business model of Alibaba Group to secure its business and ensure sustainability in the
business. There are more than 105 brands that are agreed to sign up this accord by building a
strong brand and product related knowledge and efficient monitoring process.
Value based actions
Value based actions are also essential for the sustainable business set up. Therefore, most
of the business organisations are focusing on the value based actions so that the brand value will
be generated through corporate practices. Lloret (2016) opined that the value based actions have
an ethical consideration that pushes the organisation to follow moral business approach. In this
regard, the role of the internal and external factors are also important for creating corporate
sustainability framework. For instance, making good relationship with the partners and the
customers is always considered to be an important aspect for the business organisation to render
value in the competitive market (Antolín-López, Delgado-Ceballos & Montiel, 2016). It will
help the organisation to set adequate measure for sustainable development.
For Alibaba Group, the value based actions are always reflected into the core mission and
vision of the company where paramount focus is vested on the customer satisfaction and quality
service offering. The company acknowledges the value of its customers and put great deal of
focus on its customers to render more value. The brand value of Alibaba Group tries to depict a
sustainability framework that suits the organisational objectives to a great extent. Moreover,
sharing interests in the demands and expectations of the organisation, Alibaba Group believes in

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the collective decision making. Therefore the partners also get the opportunity to share their
demands and interests. As a result of that it creates a suitable environment to facilitate
sustainability development plan. Alibaba Group also follow an ethical conduct in order to create
better sustainability framework. Ethical consideration in course of making good relationship with
the partners and consumers makes it easier for Alibaba Group to set up a strong and effective
sustainability framework (esg.alibabagroup.com, 2018). Moreover, the philanthropic activities of
Alibaba Group is also identified as an important aspect to establish social responsibility. Personal
contribution of time and financial resources ease the burden of responsibility and helps the
organisation to facilitate sustainable development.
Incorporating into the organisational culture
The research of Stacchezzini, Melloni and Lai (2016) pointed out that all the above
mentioned steps set a suitable environment for organisational culture which is also important part
of the sustainable development practice. The UN report also supports the fact by stating decent
work in Goal 8 and the reduced inequalities in goal 10 (Unstats.un.org, 2019). Therefore, the
companies are also trying to set the similar type of organisational culture where issues like
inequalities and discriminations are strongly prohibited. As a result of that a strong
organisational culture associated with the sustainable development process is important for
shaping the sustainable development for an organisation.
Based on this understanding, Alibaba Group is trying to deliver a better corporate
sustainability with the help of good organisational culture. Therefore, transparency in workplace
in association with the training and development of the employees is identified as an important
aspect for Alibaba Group to initiate the sustainable organisational culture. In association with
this, helping people out of poverty is also pertinent for Alibaba Group to shape its corporate

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sustainability measures. For instance, the Rural Taobao Program involves Alibaba to reduce
poverty in more than 30,000 villages (esg.alibabagroup.com, 2018). In response to this, the
sustainable development goal of the United Nations goal 1 and goal 2 that are no poverty and
zero hunger respectively are resembled with the organisational culture of Alibaba Group. It is
also seen that the role of the organisation culture shapes the sustainable development program of
Alibaba Group.
Conclusion
Based on this understanding, it can be stated that Alibaba Group is trying to focus on its
corporate sustainability measures with the help of United Nations Sustainable Development
Goals. In every aspects of the organisations there is a willingness of Alibaba Group to follow the
development goals and make it suitable and relevant with the organisational culture. For
instance, managing stakeholders and the human sustainability practices, Alibaba Group is
definitely followed goal 3, 5 and 10. Moreover, the emphasis on environmental sustainability
prescribed by UNSDG 2017 is also depicted into the corporate sustainability framework of
Alibaba Group. Therefore, it can be concluded that Alibaba Group witnesses a strong corporate
sustainability measure with the guidelines of United Nations Sustainable Development Goals.

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