Managing People and Organization: Alibaba Group Sustainability Report

This report provides a detailed analysis of Alibaba Group's sustainability practices, examining its impact on society and the environment. The introduction defines sustainability and its importance for businesses, followed by an overview of Alibaba Group and its diverse services in e-commerce, internet, technology, and retail. The report highlights Alibaba's sustainability priorities, including corporate governance, intellectual property rights protection, cybersecurity, data protection, human capital, social impact, and environmental impact. It explores how Alibaba's mission, vision, and partnership system support its commitment to ethical business practices, workforce diversity, and social development. Furthermore, the report connects Alibaba's activities with specific United Nations Sustainable Development Goals (SDGs), demonstrating its contributions to sustainable production and consumption, human sustainability, and environmental protection. The analysis reveals Alibaba's investment in renewable energy, green logistics, and initiatives to solve social problems, such as poverty and inequality. The report concludes that Alibaba is a sustainable organization, aligning its business model with ethical and transparent practices, and contributing to the achievement of multiple SDGs. The report also includes a table that maps Alibaba's sustainability characteristics to relevant UN SDGs, providing a comprehensive overview of its sustainable initiatives and impact.

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Managing People and Organization

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Introduction
Sustainability is termed as the ability of businesses to meet the present requirements
of individuals with limited resources or without compromising the resources for future
generations. This concept in the businesses mainly applicable on two aspects; first aspect is
impact of business activities on society and second is impact of business activities on
environment. Most of the organizations nowadays focus on using sustainable practices in
their businesses in order to do good for the society (Clayton & Radcliffe, 2018). According
to McKinsey report, 70% of organizations across the world have a formal governance of
sustainability in place. The aim of adoption of sustainable practices by businesses is to
make the correct impact on some areas. If the companies fail to make sustainable practices
and are not accepting their responsibilities towards society and environment this leads to
opposite reaction such as environmental degradation, social injustice and inequality (Chen,
You & Lv,2019).
In order to understand the concept sustainability, Alibaba Group sustainability
practices are analysed with connection to United Nations sustainability goals. The aim of this
analysis is to know the impact that the companies make on society by adopting sustainable
business strategies. Further, in order to achieve the objectives sustainability goals and
activities of Alibaba is analysed and compared with United Nations sustainability goals and
comment is given whether Alibaba is considered as the sustainable organization or not. At
last, conclusion is given about the sustainable practices and importance of sustainable
business strategy in context with Alibaba Group.

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Alibaba Group and Sustainability
Alibaba Group is a Chinese multinational company that offers services in e-commerce
segment, internet, technology and retail. The company offers business to business, consumer
to consumer and business to consumer sales services through its online portals and websites.
Alibaba Group experienced 300 % annual growth in 2018 and most of its products and
services used by consumers in less developed areas. Further, the company organize many
events such as Alibaba E commerce Expo; these events are organized in order to create
awareness about the digital transformation and the updated products that Alibaba offers. The
company is successful and has presence across the world with wide market share because of
its sustainability principle (AlibabaGroup,2018).
Alibaba sustainability priorities are corporate governance, intellectual property rights
protection, cyber security, data protection, human capital, social impact and environmental
impact of its business activities. Alibaba mission is “to make it easy to do business
anywhere”, this refers collectively as digital economy. Alibaba is an institution of public
trust and the company believe that public trust can be gained when every business activity is
sustainable (Crane, Matten, Glozer & Spencer,2019). The company considered sustainability
as “focusing on long term value creation that drives sustainable profits”. With that the
company focus on doing all the right things by business that impact the society and
environment and for that the company adopted system of governance to ensure that all the
activities and decisions taken Alibaba are ethical. Further all the sustainable practices and
policies of Alibaba mainly focus on employees, customers and small businesses. Further the
company is committed towards the sustainability issues that are stated above
(AlibabaGroup,2018).

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One of Alibaba sustainable priority is Corporate Governance, the model of
governance of the company is connected with its mission and vision and the partnership
system of Alibaba plays an important role in key decisions mainly in the field of business
ethics, human capital and corporate social responsibility. The vision of Alibaba is to serve 2
billion consumers, support 10 million businesses and create 100 million jobs by 2036. In the
partnership system there are 36 partners out of that 24 are male partners and 12 are female
partners. That indicates that the company encourage workforce diversity and trying to bring
equality and justice in the society. Partners follow a proper ethical conduct, transparency and
make personal contribution for social development (Alibaba.com,2019).
Other sustainable priorities of Alibaba are intellectual property right, cyber security
and data protection. Alibaba online portal and technological tools both helps in generating
leads, data evidence and complaints. Further, Alibaba connected with other companies and
partnership with others in order to build a lively and healthy market. Further the investment
by the company in cyber security protection bring positive result for the society as this helps
In protecting privacy of data of customers and make the social and online platform more
reliable and secure for people this leads to digital growth of the economies across the world.
By using Alibaba online platform, 256,000 peak payment transactions are done per second
this indicate the importance of cyber security for business sustainability in this digital
economy. Human resource capital is another sustainable priority for Alibaba, the company
focus on forming sustainable practices and policies for retaining workforce, providing them
equal opportunities, promoting equality and workforce diversity (AlibabaGroup,2018).
Alibaba had 86,833 employees in 2018, the organization culture of Alibaba promote
meritocracy over hierarchy, out of box innovation, embracing change, idealism and
optimism. Alibaba conduct various training programs and use many recruitment strategies in

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order to get best talent and to update their skills with changing environment. Gender
diversity is deeply rooted values in the organization culture of Alibaba as the company lead
by one third of female leaders. Alibaba conduct special programs for needy people who have
talent but don’t have resources the program named “young international professional”. With
technology the company contribute in solving social problems for example engineers of
Alibaba developed a system called reunion for finding missing children in China and almost
3,368 children were found using this system till 2018 (AlibabaGroup,2018).
The impact of Alibaba business operations on the society seems to be positive as the
company is investing in upgrading business skills of small entrepreneurs by providing them
platform. “The Lakeside Modou Foundation” was formed by 12 female partners of Alibaba
with the aim of giving better and secure future to women and children in underdeveloped and
rural areas in China with that initiative 5,100 entrepreneurial forms received transformative
opportunities (Zhnag, Morse & Ma,2019). Alibaba also contribute in getting people out of
poverty with its “Rural Taobao Program” with this program at present 30,000 villages have
service centres and 730 countries got benefit of it (Hong,2017). Environment sustainability
by innovation is core of Alibaba business activities as the most seen impact of technological
companies are use of power and energy and in order to reduce this impact on environment
and society the company y use 100% renewable sources in its centre. The company invest in
building its infrastructure and buildings to reduce carbon emission and switching to cooler
and water efficient systems (AlibabaGroup,2018).
From the above analysis of sustainable practices of Alibaba it is identified that the
company achieved most of the United Nation sustainability goals some of them are described
in the Table 1. Alibaba fully focused towards implementing sustainability in its organization
culture, reducing its negative impact on the society and environment and improving the

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economic conditions by contributing in solving social issues. Considering the sustainability
goals of United Nation, it is commented that the most of the business activities of Alibaba is
focused towards sustainable production and consumption as the company has strong
relationship with its stakeholders and the community by taking advantage of it the company
promote sustainability in its all business activities (Chandler,2019).
Further, it is analysed that Alibaba contribution to environment and society is more
along with profitable growth the company is able to do the best for the society by offering its
technologies and innovation to solve social issues and to improve the poverty status of people
and along with that the company promote workforce diversity and women entrepreneurship
(Lotfabadi, Alibaba, & Arfaei, 2016). United Nation sustainability gaols helps in to identify
whether the business are following sustainable practices or not. The organizations that
follows sustainable business practices gain competitive advantage in this highly competitive e
environment and can be in the market for long run (UN,2015).
The concept of sustainability if used by the big players in the market can leads to
higher benefit to society and environment (Solow,2014). From analysis and comparison of
sustainability goals it is identified that Alibaba is a sustainable organization because the
company mission and vision reflects sustainability, the company follow and attain all the
suitability goals and run business on ethical and transparent manner (Hung, Chen, Stacks,
Coombs & Boyd,2018).
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 is an organization that is The goal of sustainable

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based on public trust, the
company has high scale
operations and during that they
maintain strong connect ion with
its stakeholders that are
consumers, producers, merchants,
creators, business partners,
employees and shareholders.
Further, the policies and practices
are framed in a way so that
maximum benefit can be gain for
society and environment.
production and consumption is
achieved by the company as
their mission and vision
reflects sustainable practices
and trust with its stakeholders
helps the company to bring
awareness about sustainable
practices and sustainable
development to all its
stakeholders.
2. Focus on human
sustainability
The company considered human
as biggest asset and encourage
diversity at workplace, provide
equal opportunities to employees
with any biasedness, and retain
and recruit best talent. 482, 601
hours were dedicated by
employees of Alibaba for society
in 2018.
Goal of “promote sustained,
inclusive and sustainable
economic growth, full
productive employment and
decent work environment for
all”. This goals is attained by
the company because Alibaba
considered is human capital as
assets and focus on
encouraging diversity and
transparency by forming
policies and procedures .

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3. Focus on ecological
sustainability
The company used 100%
renewable resources at its
Zhangbei Data centre, which
increases 4 % energy efficiency.
Building of green logistics parks
to avoid 1 million tons of
emission annually and
organization of various other
campaigns and events to
encourage tree planation and
recycling and reuse of material.
“Goal of access to affordable,
reliable, sustainable and
modern energy for all”.
Alibaba use renewable energy
in all centre and invest in
saving tons of emissions,
brining awareness about
energy saving alternatives and
many more other events.
4. Reinventing business
models
Alibaba priority under
sustainability is cyber security
that also helps the company to
contribute for the society as
accuracy and security in e
commerce platform is essential. In
order to do so the company
upgraded technology in timely
manner, aims to protect
consumers and business person
from risk of hackers, fraud and
malicious attacks.
The goal of “strengthening the
means of implementation and
revitalize the global
partnership for sustainable
development”. This is attained
by Alibaba as the company
build on global partnership
system and work with other
businesses to provide data
security, build trust and
promote innovation.
5. Purposive, value-
based action
Alibaba is world largest internet
enterprise and is focusing on
From the UN sustainability
gaols, this is related to “ensure

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creating a beautiful future for the
countries in which the company
operate with innovations and
technologies. The action and
plans of the company helped
SMEs to create a low carbon and
efficient work model that helps
the companies to focus on
sustainable development.
inclusive and quality
education and promote
lifelong learning
opportunities’ for all”. This
goal is achieved by Alibaba as
the company provide
opportunities to small
enterprise by providing them
ready made solutions for
creating low emission and
efficient model. This helps in
growth of the society as well
as small entrepreneurs.
6. Building strategy into
the culture
The partnership system is core of
Alibaba’s culture and identity.
With high investment by the
company in community
development Alibaba become a
public trust. The mission and
vision of the company reflects
sustainable practices in its
processes and culture.
In this the goal of sustainable
consumption and production
is attained by Alibaba. As with
strong connection to their
stakeholders the company
reflect sustainable practices
and policies in its mission and
vision that helps in ensuring
the company to follow
sustainable production and
consumption process.
Table 1: Analysing Alibaba Sustaining Characteristics

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Source: (AlibabaGroup,2018), (UN,2015)
By considering the above table, it can be said that Alibaba fulfil all the characteristics
of a sustainable organization that are a social contract, that includes the relationship of the
company with its stakeholders and formation of policies in order to maintain it.. Another
characteristic is focus of company on human capital and initiatives to develop and retain
human resources in the organization for long run with that the company also promote
diversity and equality. At last, Alibaba focus on environment and social sustainability by
conducting various programs related to saving of renewable energy and reducing poverty.
Further, reinventing business model, value based action and embedding suitable business
strategies in culture are also achieved by Alibaba in an efficient manner with that it is
summarized that the company completed and have all the characteristics of sustainable
organization.
Conclusion
It is concluded from the above analysis of sustainable practices of Alibaba that the
company is highly motivated towards using and following sustainable practices in its
business operations. Further, Alibaba Group is one of the leading players in China that offer
technological services to its customers. The company along with its operations use
technology and innovation for development of society and for reducing the negative impact
of its operations on the environment. The company run many programs such as Reunion
program to reduce poverty and Lakeside Modeu for encouraging women entrepreneurs. It
can be said that Alibaba Group is a sustainable organization as business operations of the
organization are linked with the United Nation sustainability goals and mainly the goal of
sustainable production and consumption is attained by the company. Furthermore, Alibaba
Group contributes in each and every aspect such as environment, human capital, and society.

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Hence, Alibaba is sustainable organization that follows and has sustainable business practices
with aim of improving environment and society and to give maximum to the society by
focusing on efficient process and proper utilization of resources.

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References
Alibaba.com,2019. Alibaba Group Journey. Retrieved From:
https://www.alibabagroup.com/en/global/home
AlibabaGroup,2018. Foundations for Sustainable Growth. Retrieved From:
https://esg.alibabagroup.com/
Chandler, D. (2019). Strategic corporate social responsibility: Sustainable value creation.
SAGE Publications, Incorporated.
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.
Clayton, T., & Radcliffe, N. (2018). Sustainability: a systems approach. Routledge.
Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press.
Hong, W. (2017). The Balanced Scorecard Study on the Corporate Social Responsibility of
Electronic Commerce: —From the Case of Taobao Alibaba. In Modern
Organisational Governance (pp. 161-185). Emerald Publishing Limited.
Hung-Baesecke, C. J. F., Chen, Y. R. R., Stacks, H. D., Coombs, W. T., & Boyd, B. (2018).
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