Impact of Sustainable Business Practices on UK Organizations

This report delves into the significance of sustainable business practices, examining their impact on organizations and the environment. It analyzes the current global sustainability agenda, highlighting key issues such as poverty, fair trade, and environmental factors, and their implications for businesses. The report explores the reasons for UK organizations to adopt sustainable practices, including legislative requirements, brand image building, competitive advantages, and profitability. Furthermore, it defines a sustainable business organization, outlining the necessary changes required for Bargainum to become sustainable, including sustainable business development, eco-efficiency, and increased resource productivity. The report uses the Primark case study to illustrate the practical application of these concepts, discussing the economic, social, and environmental dimensions of sustainability within a business context, and emphasizing the importance of integrating these principles for long-term success and positive societal impact.

SUSTAINABLE
BUSINESS PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1 Significance of sustainability...................................................................................................1
2 Current global sustainability agenda and issues.......................................................................2
3 Impact of current issues on businesses.....................................................................................3
4 Analyse the reason for UK organization to adopt sustainable practices..................................4
TASK 2............................................................................................................................................5
1 Analyse the meaning of sustainable business organization.....................................................5
2 Changes required to become sustainable business unit............................................................5
3 Analysing the principle of triple bottom line and its implementation in business...................7
4 Sustainable planning process...................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global expansion and internationalization has an effective impact n the business
operations and its success. 38% of SME have expanded or are planning to expand the business
beyond geographical boundaries to develop new and effective growth prospects across the globe
(Uusi-Rauva and Nurkka, 2010). Present study will focus on evaluating and understanding
different global practices adopted by business unit for sustainable growth and development. The
case analysis of Primak has been considered for analysing the factors and issues of globalization
and various business practices adopted by the company to ensure success of the same. On the
basis of the given case, the competitor of the company are planning to develop their strategies
and plans. The report will provide a clear understanding of the same considering major points of
concern.
TASK 1
1 Significance of sustainability
Sustainability is broad concept which develops an effective understating about human
world and environmental survival taking into account business, technology and ecological
factors. It focuses on analysing the impact of business and technology on environmental safety
and effectiveness. It helps in developing a wide and effective impact on the growth of business
and environment as well. Vanhamme and Grobben, (2009) states that sustainable development
satisfies the needs of the present generation without compromising the chance for future
generation to satisfy their needs. The concept of the sustainability is significant for the growth
and development of the business units. It combines environmental, social, financial, ethical, legal
and political issues for the business which provides it an effective and well developed platform
for enhancing business opportunities.
Majority of business units are adopting the stated approach because internationalization
and advancing technologies has helped businesses in attaining vast economic opportunities for
business development (Wang and Chaudhri, 2009). Effective consideration of social and
environmental issues helps business in effectively meeting needs of employees society and
government. Hence, this helps it on building a strong and competitive brand image within the
market. In addition to this sustainability focuses on optimum utilization of products and
resources which helps in minimizing the cost of operations and reducing wastage as well
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(Climate Change is a Stakeholders Business, 2015). The case of Primark clearly reflects a similar
situation where company took a positive and influential use of globalization by developing its
manufacturing operations in Asian counties. The strategic planning of business helped in making
use of low cost resources which enhanced financial capability of the business. It introduced
social influence on people HERproject which enhanced capability of local residents and
delivered positive result for the company as well. Moreover, the company also kept a close check
on environmental safety and effectiveness by adopting practices like green supply chain etc.
Hence the above analysis effectively helps in understanding the significance of sustainability
concept for growth and development of business and society as well (ENERGY & RESOURCES.
2015).
2 Current global sustainability agenda and issues
Current scenarios of the market has created a wide impact on the growth of the economy.
However, the growth and development is not balanced. The current economic situation of the
world can be stated by saying that poor are becoming poorer and rich are becoming richer.
Moreover, with concern to the issues regarding limited resources and rising cost of energy and
water, regulatory bodies have developed agenda for sustainable development (Bakar, Sheikh and
Ameer, 2011). The key issues addressed for the same are: Poverty: Increasing poverty, hunger, rate of unemployment etc. are the crucial issues
which has caused a major imbalance within the market. Majority of world population is
surviving under minimum access to health, education, safety and hygiene. The goal of
sustainability is to bring about a structural change to bring balance in the economy and
attract investment for poor and underdeveloped countries. Fair trade: This policy of the organization focuses on doing trade in an effective manner
where farmers, agents and suppliers are empowered to attain effective and high growth
prospects. This global issues is addressed by encouraging policies for effective supply
chain management and developing positive relations with suppliers to enhance and
develop their lives and well being (Blombäck and Scandelius, 2013). Environment factors: This issue involves risks and problems related to major climatic
change, risks to bio diversity, carbon emission, increasing intoxication etc. this risk
caused a major impact on the environmental factors within the economy. Thus,
sustainability focuses on balancing financial and environmental factors for the growth for
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the business. Primark has adopted environmental practices by adopting green supply
chain, focusing on waste reduction etc. Inequality in consumption: The consumption scale of the world economy is highly dis-
balanced and ineffective which has created an ineffective impact on organizational
growth. 20% of world population are high income accounts for 86% of private
consumption (Porter, 2008). This clearly represents an ineffective impact on the world
resources.
 Standards of education and health care: Lack of access to proper education and
healthcare services has caused increase high rate of disease and infection in the society.
This has created economic disturbance within the economy which is ineffective for
overall development of the country. Primark has taken influential measures to overcome
such circumstances and create a wide impact on organizational growth (Preuss, 2009).
3 Impact of current issues on businesses
The current issues of sustainability has created wide impact on various business units. It
has helped different business units in analysing the scope of global growth and contributing
towards sustainable development as well. Many companies such as Primark, Ikea, Coca Cola,
Toyota etc. has taken advantage of these issues and has attaining different measures of growth
and development. Global business practices has helps businesses in attaining wide growth and
development prospects (Seuring and Müller, 2008). Stated issues increases the availability
resources for the company utilization of which enhanced cost and production function for the
business. Moreover, Approaching underdeveloped regions help business in making effective
advantage of cost efficiency. This results in increasing the profitability of the business. Primark
provides a clear example for the same (Hildeman and Carlsson, 2014). The company has
established its manufacturing plant in Asian countries which has helped it to generate
employment in the host country while increasing profitability of the company by taking
advantage of low cost availability of material and labour. In addition to this investment in
developing areas helps companies in enhancing brand image and create positive impact on
society as well (Is sustainability now the key to corporate success. 2012). It develops efficiency
in business operations by enhancing productivity thus developing efficiency in sales. For
example Primark has developed a strong brand image within the market by developing measures
for sustainable business development and addressing the issues for the same.
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4 Analyse the reason for UK organization to adopt sustainable practices
Sustainability is an emerging and highly developing concept. It has developed a wide and
positive impact on the business units of USA. The country has efficiently analysed the
significance and thus has wholeheartedly adopted sustainable business practices. UK business
units will have wide impact of growth and development through sustainable business practice
(Ghai and Vivian, 2014.). Bargainum must adopt sustainable business practice in order to attain
the following: Legislative requirements: The legislative and legal framework has restricted many
practices which has resulted in rising the cost of operations of the business. Moreover,
legal requirements of policies such as influence on society, investment in underdeveloped
region has significant impact on the business practices (Richards, Hall and Hall, 2003).
Adopting Sustainable business practices proves to be a win-win situation for business as
well as government because it is widely supported and influenced by regulatory bodies. Building strong brand image: Sustainable development takes into account the overall
development regarding environment, society and business. Adopting these practices helps
the business in developing a responsive brand image within the market. Moreover it also
helps in building strong relations with stakeholders which results in building a strong
brand image within the market (Bomber and et. al., 2006). For example Primark has
adopted and developed similar impact. Competitive edge: Sustainable business practices help organization to sustain in this
fierce competitive market by taking advantage of low cost resources thus enhancing
profitability and growth factors in the market. This helps in influencing investors by
positive growth, community by environmental development and society by social
development thus this practice helps the company to gain high competitive edge by
creating value and brand recognition within the market.
 Profitability: optimum utilization of resources and assessing low cost resources helps
business units in creating a wide impact on the growth and development of the business.
It helps the companies in increasing productivity and profitability of the business
(Welford, 2013). Primark presents a valid example for the same where accessibility of
low cost resources helped business in reducing cost of production thus increasing
profitability of the business.
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TASK 2
1 Analyse the meaning of sustainable business organization
Bansal, (2005) revealed an effective well defined theory of the subject stating that the
concept of sustainability encompasses aspects of global development through enhancing the
spectrum of business units from targeting on mere financial benefits to social growth and
environmental development. The concept has gained wide significance in current scenario as the
impact of natural imbalance may create ineffective issues for business development and
availability of resources as well (Fraser and et. al., 2006). A sustainable business organization is
the defined as the company which operates efficiently within the market creating minimum
negative impact on global environment, domestic region, society, community or economy as a
whole. Primark is a sustainable business organization as the business practice of the company
adhere the following principles: Economic development: This focuses on financial stability and growth prospects of the
business. Primark is financially stable company. The profitability of the business ensures
regular returns to its investors, timely payments to its employees and economic
development of the country (Kapoor, 2001). Social Development: This principle focuses on the development of society. Primark has
widely contributed towards society through HERproject in Bangladesh. It has empowered
women by providing them high job opportunities, employment rates has highly increased
moreover education and health awareness has helped the region in efficiently developing
(Sustainable Business Practices, 2015).
 Environmental protection: Primark has taken effective measures for environmental
protection and safety. Effective business practices adhering regulatory framework,
minimizing wastage of resources, environmental protection measures etc. are few steps
taken towards environmental protection.
2 Changes required to become sustainable business unit
In order to develop Bargainum into sustainable business practice the company will have
to adopt substantive change within the company. Those will include: Sustainable business development: This refers to the practice whereby he business unit
develop the policies and measures by adopting all the necessary principle of economic
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development. The growth and development of the business practice must consider its
impact on society and environment as well. Eco-efficiency: It states that the business practice must effectively adopt and apply
effective measures for growth and development whereby the overall business practices
considers effective integration of practices for economic growth and development which
ensuring social and environmental well being. This means that the company should not
only seek financial benefits but also enhance the related factors such as relationship and
safety. Increasing resource productivity: This focuses on ensuring that the resources of the
company are fully utilised and that minimum wastage is done. This will helps the
company in increasing resource efficiency and providing better products and services to
the society as well.
 Increasing producer responsibility: The company must also focus on ensuring that the
responsibility of producer do not confine till production function only. Knowledge about
the quality of material. Production process (Loorbach, 2010). Well beings of employees
and effective disposal of wastage is also important for the business.
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3 Analysing the principle of triple bottom line and its implementation in business
This is widely adopted concept and practice of sustainable business development. It
focuses on developing practices and processes which are effective well defined for the growth
and development of the organization. The key principles for the same are: Economic factors: These factors includes profitability, growth, revenue cost, returns etc.
A business unit is expected to earn profitability and grow effective within the competitive
market in order to ensure the growth and effectiveness of its stakeholders. Higher growth
measures will result in better impact on the stakeholders (Richards, Hall and Hall, 2003).
Hence it a significant focus of the business. Social factors: These factors related to the well being and growth of society, employees,
people, suppliers etc. Effective planned and integrated business practices helps in
attaining the same for the business. Educating public, employees, ensuring society safety
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Illustration 1: Triple bottom-line concept
(Source: People & Planet Positive. 2015)

and developing employment opportunities are the few measures that the company might
take towards the same.
 Environmental factors: ensuring well being and safety of the environment is the crucial
demand of the society and legislations as well (Bomberg and et. al., 2006). Increasing
climatic changes, increasing use of toxic chemical, high emission of carbon etc. are
common examples of the same. Company must ensure using environmental safety
products and raw materials for developing positive growth impact on the economy.
4 Sustainable planning process
Illustration 2: Sustainable planning
process
Sustainable planning and management is a crucial and significant part of the business. In
order to employment sustainable business practices in Bargainum the following measures will be
adopted by the company:
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 The company will first find the goals and objectives of planning and business
development. These goals will be focused on social well being and environmental
development.
 The Next stage of the process will focus on analysing how current business practices
could help in doing so (Porter, 2008.). Also, it will analyse what possible measures a
business could adopt for carrying out sustainability.
 After this the company will analyse the gap between where the company currently and
where it wants to reach. This will help in estimating and developing plan of action.
 In the later stage effective planning and development will be applied buy the business.
This will involve expansion plans, strategic analysis of countries and balancing
organizational plan with future growth prospects (Bakar, Sheikh and Ameer, 2011).
 Next stage will focus on implementation of the strategies and strategic plans which has
been developed by the business.
 Finally, monitoring and controlling of business activities will be done.
CONCLUSION
Large business chains which are globally established take expansion as a major
contributor for sustainability and growth of business. This created a wide and effective impact on
business development and enhancement. Above report clearly depicts the significance of
sustainability for business in order to develop a competitive edge in the current market situation.
The study helped in understanding that well developed planning and effective consideration for
society and environment may helps in enhancing brand image and sales of the business. Case
analysis of Primark depicted the same thus Bargainum should also develop similar practices
within the market.
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REFERENCES
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299-314.
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in countering negative publicity. Journal of Business Ethics. 85(2). pp. 273-283.
Wang, J. and Chaudhri, V., 2009. Corporate social responsibility engagement and
communication by Chinese companies. Public Relations Review. 35(3). pp. 247-250.
Bakar, A., Sheikh, A. and Ameer, R., 2011. Readability of corporate social responsibility
communication in Malaysia. Corporate Social Responsibility and Environmental
Management. 18(1). pp. 50-60.
Blombäck, A. and Scandelius, C., 2013. Corporate heritage in CSR communication: a means to
responsible brand image?. Corporate Communications: An International Journal. 18(3).
pp. 362-382.
Porter, M. E., 2008. Competitive advantage: Creating and sustaining superior performance.
Simon and Schuster.
Preuss, L., 2009. Addressing sustainable development through public procurement: the case of
local government. Supply Chain Management: An International Journal. 14(3). pp. 213-
223.
Seuring, S. and Müller, M., 2008. From a literature review to a conceptual framework for
sustainable supply chain management. Journal of cleaner production. 16(15). pp. 1699-
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Hildeman, A. and Carlsson, M., 2014. A furniture company’s view on wood.Forests and
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planning myths, realities, and unsustainable mobilities.International Planning
Studies, 17(2), 125-145.
Ghai, D. and Vivian, J. M., 2014. Grassroots environmental action: people's participation in
sustainable development. Routledge.
Richards, G., Hall, D. and Hall, D. R., 2003. Tourism and sustainable community development.
Psychology Press.
Bomberg, E. and et. al., 2006. Governance for sustainable development: the challenge of
adapting form to function. W. M. Lafferty. Edward Elgar Publishing.Voss, J. P.,
Bauknecht, D. and Kemp, R., 2006. Reflexive governance for sustainable development.
Edward Elgar Publishing.
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