MBB7004 - Dynamic Perspectives on Sustainable Business Essay

This essay provides a comprehensive analysis of dynamic perspectives on sustainable business, focusing on key sustainability concerns and their impact on business activities. It critically evaluates relevant theories and models, including Corporate Governance and the Triple Bottom Line, to understand their application in fostering sustainability. The essay uses Tesco as a case study to illustrate the practical implementation of sustainable business strategies within the retail industry. It delves into Tesco's efforts in addressing climate change, protecting ecosystems, and promoting sustainable agricultural practices. Furthermore, it explores the integration of economic, environmental, and social considerations in business operations, offering insights into future business plans and the evolution of retail trends, such as Omni Channel strategies. The essay offers a critical evaluation of these strategies, providing a well-rounded perspective on the challenges and opportunities within the realm of sustainable business.

Dynamic Perspectives on
Sustainable Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Sustainability concerns................................................................................................................2
Theoretical perspectives...............................................................................................................4
Sustainable business strategies....................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Sustainable business is said to an organisation whose activities have minimum negative
impacts together with potential positive effects on local or international environment, economy
and society (Halla and Binder, 2020). It have progressive environmental as well as human rights
policies. Sustainable business perspective considers not only investment returns and profits, also
looks on the ways on which operations of company affect natural resources, environment
addition to future generations. Present essay is prepared to understand dynamic perspectives of
sustainable business. The essay highlights about key sustainability concerns along with the
impacts that business activities have on these. Further, it includes range of suitable theories and
critical evaluation of appropriate sustainable business strategies.
For this, Tesco is taken into consideration which is multinational retailer specialised in
selling general merchandise together with groceries at corner store, supermarket, hyper market
and so many locations. It is UK based entity that is focused towards tackling international
climate change threat, providing protection to ecosystems and advocating sustainable agricultural
activities which safeguards soil health as well as biodiversity. Tesco is large company in retail
industry that was established in 1919 at Hackney, UK. It have around 6800 shops and employee
size of 400,000 colleagues that meets requirements of millions of customers each week at its
official stores and online. In last year, Tesco have achieved group sales of around £56.5 Billion,
£ 2518 Million of statutory operating profit, £2,063 Million retail free cash flow, £1.320 Billion
of Net Income and £63.911 Billion of revenues. The entity shares passion for products, places
addition to people which makes great efforts. Tesco offers right support for developing skills of
its people and provides perfect work life balance with collaborative aspects of working.
Retail industry is all about selling consumer commodities to consumer by using diverse
distribution channels for earning profit. The industry consistently accounts for nearby 5% Gross
Value Added in economy of UK and 14% investments are made by big enterprises. The industry
produces nearby £180 Billion worth of commodities for resale and supports other sectors with £
47 Billion output.
UK is a vast country in which around 67 million people lives. The country belongs to
European continent which comprises England, Scotland, Wales and Northern Ireland. In the
country, best business works to make profits and contributes in development of society and
economy as whole.
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MAIN BODY
Sustainability concerns
As per Manzone, Rebaudengo and Zaccaro (2019), Concept of sustainability is all about
meeting requirements and choices of present generation without compromising with potentials of
future generations to satisfy their demands or needs. It is composition of three pillars namely
profits, plant as well as people. It encourages organisations to frame decisions for social,
environmental addition to human impact for long term. In context to Tesco, concept of
sustainability is applied on organisational pillars that are profits, people and planet. In retail
industry of UK, Tesco considers people are health of all activities that are done by it and its one
of value includes treating people the way they desires to be treated. Key people of the company
that could contribute in making sustainable business includes most important stakeholder that are
employees, suppliers, families and so on that are influencing or affected by organisational
working. Sustainability can be applied on its colleagues as well as the one the company performs
with supply chains. At same time, other dimension is planet that defines positive and negative
effects that a company have on natural environment. Moreover, it covers reducing of carbon
footprints, active removal of waste, using natural resources and reforesting natural harm done. In
Tesco, main focus must be on tackling global climate change threat and protecting essential
ecosystems. For protecting planet, managers are developing sustainable Tesco as they are cutting
use of plastic for packaging products and installed more than 100 Changing places facility to
assist disabled shoppers. The last dimension of sustainability concept is profit that comprises
positive and negative effects a company have on local, regional, national and global economy. It
involves creating employment, paying taxes and contributing its money for helping society. The
concept of sustainability as defined by BBBBB might be applied by Tesco so that resources are
protected for meeting needs of prospective and potential generations.
In contrary, Waseem and Kota (2017) says that concept of sustainability is integration of
social equity, economic vitality together with environmental health for creating healthy, resilient,
thriving and diverse communities for present and upcoming generations. Practice of
sustainability identifies the ways all are interconnected and needs a system approach as well as
acknowledgement of criticality. Sustainability presumes that available resources with company
are finite and must is utilised wisely together with conservatively with long term consequences
and priorities. In context to Tesco, retail industry and UK, concept of sustainability might be
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applied to create high quality of life as well as vibrant economy with respect to requirements to
sustain natural resources addition to protecting environment.
The similarity among perspectives of authors about concept of sustainability is that it
guides organisations to use resources so that needs of present and upcoming generations are
effectively met. In context to retail industry and UK, Tesco must ensure to use available
resources in the manner to satisfy generations and create diverse communities.
Sustainability is all about avoiding depletion of natural resources for maintaining
ecological balance. One of key idea of sustainability is meeting needs of current people
without compromising desires of future generation to satisfy their requirements. In context
to Tesco, it is evaluated that the entity is adequately using resources and provides quality of
offerings to present customers and also preserves to fulfil needs of forthcoming generations.
Moreover, sustainability is a niche approach in retail industry as retailers and brands are
emphasising towards sustainable practices to protect environment by keeping way for grabbing
attention of younger generations and preserve essentials for future (Pope and Petrova, 2017).
This impacts positively on Tesco and retail industry as it enhanced consciousness of both for
understanding and preserving resources so to contribute in managing needs of present and future.
The another idea is integrating equity, vitality and health to formulate thriving and diverse
communities. In association to Tesco, sustainability concept encourages to integrate various
aspects so that a diverse and healthy communities are developed wherein natural resources are
sustained and environment are protected effectively to continue business practices for making
revenues as well as developing societies. At same time, it have been evaluated that idea of
sustainability guides retail industry to integrate aspects that leads to building communities which
improves overall image of the sector positively.
Retail industry is dynamic and fast growing industry that is going through enormous
trends. One of key retail trend is investment in Omni Channel strategies in which average
digital consumer owns around 3.64 connected devices for consulting before making any
purchase. As context to the trend, consumers often look towards an item on their smartphones
and complete purchasing process (Farley and Smith, 2020). It might change in future as
consumers are becoming aware about digital techniques and are using devices such as computer
and mobile phones for looking towards offering, prices and making final purchase. The possible
impacts of the trend on Tesco is that investment on Omni Channel strategies will enhance sales
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of its as consumers will buy more by sitting at their places and will gain seamless experience of
shopping. The other key trend of retail industry is creating new channels and tapping new
markets which have wider possibilities to make entrance easier and convenient for retailers. In
future, the trend might change as retailers are working on using minimum channels for tapping
new market. In context to Tesco, the trend can impact adversely as selecting new channel and
tapping totally new market needs huge monetary resources that can reduce profit margin of the
entity. Also, implementing new channel can create confusion among employees to continue
working with set practices.
Future business plan is written statement that includes description of what business have
to accomplish in upcoming duration (Kalsoom, Khanam and Quraishi, 2017). In case with Tesco,
it can includes various areas is its future business plan. One of the area is integration of aspects
including economic vitality, environmental health and social equity to devise resilient
communities for people. The another area is meeting needs of present and future generations
without any compromise. The another area is managing supply chain for tapping in new markets.
Theoretical perspectives
The following theories and models can be used by Tesco so that it is able to ensure that it
uses its sustainable practices in the right manner-
Corporate Governance-
It is the combination of the different types of rules, processes as well as laws through
which the businesses can be operated, regulated as well as controlled (Cosenz and Noto, 2018).
This model is useful for the companies because it ensures that they are able to manage their goals
and objectives effectively and efficiently. Thus, In the context of Tesco the use of this particular
model is quite useful for its sustainability practices so that it can ensure that it is able to attain its
goals and objectives effectively and efficiently. It is needed by Tesco so that it is able to integrate
different types of aspects such as economic vitality, environmental health as well as social equity
for the purpose of devising resilient communities for people.
The strengths of this particular model for the company are as follows-
 Compliance with the laws- In this model, the compliance with the laws by the company
can be ensured (Fernando, Jabbour and Wah, 2019). Thus in this way this acts as a
strength for the different types of companies. For Tesco, it is a strength as it is helpful in
complying with the laws effectively made efficiently.
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 Better management- Using this model, the companies can make sure that they are able
to manage their different types of needs and requirements effectively and efficiently
(Lopes and et.al., 2019). In the context of Tesco, it can make sure that the management of
its operations can be done in the right manner.
The limitations of this particular model for the company are as follows-
 Separation of ownership and management- When there is a separation between the
ownership as well as management in the company then this model's application cannot be
done in a proper manner. Therefore, For Tesco it can create different types of difficulties.
 Regulation costs- The implementation of this model requires the use of different types of
regulation costs properly. In the context of Tesco, this can create different types of
difficulties because this will increase the costs for it.
Application of the model in Tesco- The Corporate Governance model in Tesco has been
applied by ensuring that the there is a hierarchical model in which The Board is at the top and the
different types of committees which are under it. Thus in this way this way the model can be
applied in the right manner within the firm. Further there are different types of rules and
regulations within the company which have been developed for Corporate Governance. Also
there is a Stakeholder engagement policy through which Customers, Colleagues, Suppliers,
Shareholders and Community can be engaged. As Tesco has to focus on economic vitality,
environmental health and social equity aspects this will help the company a lot in ensuring that
its rules and regulations are framed for meeting the needs of these aspects.
Triple Bottom Line-
Triple Bottom Line theory states that the focus of the companies should be on committing
to the social as well as environmental concerns as much it should be on the profits (Klassen and
Hajmohammad, 2017). According to it the focus of the companies should be on the following-
Profit, People and Planet. Thus by making its use Tesco will be able to ensure that it is able to
focus on the sustainability aspect of its business without any problems and issues. The different
bottom lines under it are explained as follows-
 Profit- This has to be the focus of the companies because in this way the assessment of
the profitability level can be done in a highly effective manner. Thus for Tesco this has to
be the primary objective because it has to ensure that it can sustain itself in the market
without facing problems and issues.
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 People- This refers to the way socially responsible an organization can be throughout its
history. For Tesco, it is quite essential that it focuses on social responsibility which will
help in the attainment of the social goals and objectives.
 Planet- This is a measurement of environment responsibility of a particular firm. In the
context of Tesco, it is essential so that the company is able to focus on its environmental
aspects without problems and issues.
Strengths of measuring Triple Bottom Line-
 The use of TBL is quite encouraging for the businesses to ensure that they can think
beyond a narrow base. Thus it can be beneficial for Tesco to make sure that it is able to
operate at a broad spectrum.
 When businesses make the use of TBL they can make sure that they are able to assess the
impact of sustainability in an effective manner. Thus in this way this can create a benefit
for Tesco.
Limitations for measuring Triple Bottom Line-
 TBL framework does not provides the businesses with specific guidelines to use. This
can impact the different types of businesses. Thus Tesco is also affected by this and it
acts as its limitation.
 The use of TBL framework gives encouragement to Status-Quo Capitalism. Thus in this
way this can create problems for a company like Tesco.
Application of the model in Tesco- The application of TBL model in Tesco can be done
by ensuring that the different types of needs of present and future generations can be met without
compromises. The management of the company needs to put focus on ensuring that it identifies
the needs of the present and future generations and is able to ensure that it can create a better
future for them. For this, it is required that the higher-level of expenditures can be incurred by
the company on applying this model in its processes. By increasing the amount of expenditures
the organization can make sure that it is able to contribute in a better way towards the society
without facing problems and issues in the future.
Sustainable business strategies
Sustainable business strategy can be delineated to integration of economic, social
addition to environmental aims into planning, activities along with objectives so to devise long
term value for its stakeholder, company and wider society (Rath and Schmitt, 2017). In other
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words, a strategy that is formulated and implemented to meet needs of organisation along with
stakeholders while protecting, preserving together with enhancing resources which are required
in future is delineated to sustainable business strategy. In case with Tesco, devising and
implementing sustainability business strategy is essential for all entities as these helps in
addressing certain global's most pressing problems including climate change and so on. Tesco is
an UK based company that operates in retail sector. The entity have adopted the concept of
sustainability so to satisfy existing consumers and upcoming generations. The areas that it is
planning to include in future business plans are meeting needs of present without compromising
with competence of needs of future generation and integrating social values, economic vitality,
etc for building healthy communities for society. For this, various models and theories have been
applied that includes Corporate Social Responsibility and Triple Bottom Line.
Main reason for proposing sustainable business strategy is to protect the brand as well as
mitigate risks associated to practices that might damage reputation of entity along with cost its
customers (Chladek, 2020). In case with Tesco, sustainable business strategy is proposed so to
drives areas in future business plans as well as solve some of issues that are pressuring the entity
the most in dynamic world. One of sustainable strategies that can be adopted by managers of
Tesco in future business plans is sustainable supply chain management strategy. In this
strategy, managers of Tesco adds social, economic, legal, environmental, etc concerns across
entire supply chain to reduce waste as well as environmental footprints. As per Gauthier (2017),
it have been evaluated that sustainable supply chain management strategy benefits an
organisation to improve continuity of supply in new tapped market. Through the strategy, Tesco
is able to diversify supply chain for avoiding over reliance on individual link in chain for
meeting needs of current with that of needs of future generations without any compromise.
Moreover, managing supply chain by preserving resources and maintaining relationships with
variant suppliers help the entity to enhance availability of retail commodities by preventing cost
down and challenges of roadblocks in new market. However, it is also evaluated that sustainable
supply chain management strategy only works when there is effective coordination among al
departments of entity and when functional departments are loggerheads than the strategy leads to
failure. Another limitation of the strategy is that it complicates workings and hampers practices
of organisation as it demotivate workforce because they resist working with new things and
accept the strategy with half heartedly.
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Another sustainable business strategy that Tesco can add in its future business plans is
Ethical procurement and transparency strategy that is about conducting the moral principles
governing and influencing the process in management in order to attain in the effectiveness in
organisation. It include the principles related to the fairness, integrity and transparency in all
functions and activities of company. It creates the positive and better implications of code of
conduct in supply chain. In the context of Tesco, this strategy will increasing the efficiency and
effectiveness in organisation by using this in the company. The benefits of this strategies is that it
facilitates in the interacting with potential suppliers as these are bound by code of conduct
established by companies (Lee and Seo, 2018). It able to control over the large sums of money,
suppliers and helpful in taking right decision through using ethics. It will also helpful in
establishing long term relationship with suppliers and promote the growth in the company. The
limitation of this strategies is that it is sometime difficult to deal with the situation and put in the
danger and develop the confusion among management. It require ethical training in organisation
and needs the efforts and time in order to achieve the objectives for the company.
Other sustainable business strategy is Developing recycling program strategy That
includes ecycling the product in production process is very sustainable action and environment
friendly activity is used to adopt by company. This become necessary to develop this strategies
in the production process and must be done in proper supervision. In the the context of company
Tesco, this strategy is helpful in achieving the desired objective and will reduce in the cost and
will helps in increasing profit and with the quality of product need to be maintained. It improve
the overall efficiency in management and enhance the profitability due to reduction in the cost in
the process. The limitation of this strategy is that will be difficult to adopt this strategy
effectively and also it will somewhere decline the quality of product which will adversely impact
the company (Caldera,Desha and Dawes, 2019). Apart from that the technology that is needed
must have the full information to the employees and provided with full training and will take
time and money.
CONCLUSION
From the essay, it have been concluded that sustainability is a complex approach that
includes meeting requirements of existing without compromising any type of competence of
upcoming generations to satisfy their needs. In an organisation, sustainability plays significant
role as it helps in devising healthy communities, maintaining situations with time and so on. It
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comprises the ways natural systems work, yield all things and continue to diverse requirements
for internal and external environment for the purpose of remaining in balance at present and
future aspects. It is perceived as an organising approach which is responsible for environment
and saves energy to develop new projects and retrofit older projects to satisfy present and future
generations. Triple bottom as well as corporate social responsibility theory are some theoretical
perspective that are used by entity to apply areas that are to be included in future business plans.
Sustainable supply chain management strategy, developing recycling program strategy and many
more are certain sustainable business strategy that guides to adopt areas in future business plans.
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