Business Management: Sustainable Strategy and CSR Approaches Report

This report delves into the critical aspects of sustainable business strategy and management, emphasizing the 3R approach (Reduce, Reuse, Recycle) as a cornerstone for long-term competitiveness and ethical operations. It examines how various companies, including IKEA, Walt Disney, and IBM, implement CSR strategies tailored to their size and industry. The report provides a comparative analysis of CSR approaches across SMEs, micro-businesses, and corporate entities, highlighting similarities and differences in their resource management and ethical considerations. Furthermore, it explores methods for measuring the success of CSR initiatives, offering a comprehensive overview of sustainability practices in the modern business landscape. The report also includes examples of how micro-businesses like Oak Cash and Carry and Hicks Holding incorporate sustainable practices within their operations. This report is a contribution from a student to be published on the website Desklib, a platform providing AI-based study tools.

BUSINESS MANAGEMENT

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Contents
INTRODUCTION.................................................................................................................................1
Sustainable approach to business strategy and management..................................................................1
3R approach.......................................................................................................................................1
CSR approaches of different types of companies..................................................................................5
Measure success in CSR strategies....................................................................................................6
Conclusion.............................................................................................................................................6
References.............................................................................................................................................6

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INTRODUCTION
Sustainability has become one of the major principles of the modern day business.
Companies also make strategies and plans to ensure that they are doing sustainable business.
At the same time companies have to think of the wider perspective of the business where they
need to ensure that they have plans for development that are ethical and sustainable. There
are different approaches used by the organisations in order to manage the CSR of different
types of firm i.e. SMEs, Micro and corporate business (Winkler, 2011). The difference can be
measured in a different manner which should be applied to measure the success of the CSR
strategies. This report is going to provide explanation regarding sustainable approach to
business strategy and management. It also analyses different approaches to CSR of SME,
Corporate Buisness and Micro business and draws a comparison between all these
approaches. At last the differences are analysed along with the way in which success in their
CSR strategies can be measured.
Sustainable approach to business strategy and management
Sustainable approach to business strategies and management means utilisation of resources in
such a manner that it can be utilised for longer period of time and hence it can give
competitive advantage over the rivals and ensure that growth rate remains on the higher side
(Spence, 2016). Since there are many stakeholders that are attached with the company hence
it is critical for the management to have an understanding about the way in which
organisations are operating. Sustainable approaches also ensure that no ethics is violated in
the business management and the strategy development. This is very much critical in the
modern day context. The sustainability approach that is used in the organisation is 3R
approach.
3R approach
This is an approach that can be taken by the company so as to ensure the sustainability in
their management and business strategy. This can be understood in terms of the fact that it
promotes reducing the use of resources while not decreasing the production, reusing the
materials that have been used in the past so that same materials can be used for the operations
two times and at last is the recycle approach where the waste materials generated in the
productions are recycled in order to manage the productivity and ensure that maximum

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profits is generated through their business. Using this sustainability is achieved and would
help in improving the waste management strategies (Srinivas, 2015). This would help the
companies in controlling the over utilisation of resources and in the time when the resource
constraints in the organisations are increasing this can be an effective approach to deal with
it. This satisfies the social, economic and environmental concerns of the organisations.
IKEA
This company is one of the biggest firms in the business of furniture, kitchen appliances and
home accessories (Ingka, 2020). This company has been working towards the sustainability
to ensure that their growth is as per the desired objectives of the company. The vision of Ikea
illustrates that they aim to create a better every day for as many people as possible and their
mission is to meet the needs of the people on this day without compromising on the needs of
the future generations. They continuously change their operational mechanism to ensure that
they are able to create a better lifestyle for themselves. This company is utilising 3R in their
strategy making related to their resources (Hellström and Nilsson, 2011). Their strategies are
aligned to make sure that they prevent waste by recycling the materials like plastics, metals
and papers so that optimum utilisation of resources is possible. These saved products are used
for making the products with the same materials. They have been continuously improving
their operational mechanism to ensure that the amount of waste that is created in the
operations can be reduced drastically. By reducing the operational waste they are able to
manage the amount of conversions that is done by the company. This is done through higher
use of technology and skill improvement of the human resource. They are also reusing the
water that they have already used in some other steps of the operational mechanism within
the firm (Fröding and Lawrence, 2010). Since the scarcity of water is increasing hence they
are working towards optimum and maximum utilisation of water that ensures their
sustainability in the long term. Since waster scarcity has increased and had influenced the
local areas where the businesses are operating hence it is ethical to reduce the use of water
waste.
Walt Disney
This company is one of the most diversified multinational mass media and entertainment
conglomerate from the America. This company has also been addressing the issues of
sustainability in an appropriate manner (The Walt Disney Company, 2018). This company
words towards the environment where they are working towards making the world more

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sustainable place. This company has given funds of around $70 million to reversing the
decline of the wildlife across the globe. This company aims to reduce the use of single use
plastics which would help them in protecting the environment. In this regards they have been
reducing the plastic straws and the plastic stirrers at all owned and operated location all
across the planet which will lead to reduction of more than 175 million straws as well as 13
million stirrers per year (Corbett, 2010). They are eliminating the use of plastics from their
room amenities in the Disney hotels along with the cruise ships as well as plastic shopping
bags in their park. They are also working on eliminating polystyrene cups from the
worldwide business. They have also been reusing the materials that they have already used in
their business. In their strategies and management they ensure that they reuse the plastics that
have been generated as a waste in their operations. At the same time they have invested their
money to ensure that their strategies implements recycling of the goods they have so that it
can be used appropriately (Milman, Okumus and Dickson, 2010). They have created the
waste diversion programs that aim to recycle and reuse materials from their operations such
as in the places like resorts and parks. This had been done to check and control the amount of
waste that is sent to the landfill sites. They manage the need of their resources with the help
materials that they have recycled, reused and reduce. In their hotels that have been working
towards reducing the carbon footprints and they are doing this with the help of strategies such
as optimum utilisation of resources especially the resources that generate carbon. By reducing
the carbon waste they also take care of the ethics as the carbon waste is responsible for many
kinds of health issues especially in the neighbouring areas (Holcomb, Okumus and Bilgihan,
2010).
IBM
This company has a worldwide recognition and their strategies are being followed by many
of the companies. This firm is an American multinational corporation that is in the business
of selling software, middleware and hardware. This company works towards making the
products and processes highly efficient for both business and the environment (IBM, 2020).
Since silicon waste has been a challenge for the organisations hence they have been working
towards recycling of the silicon waste. For this they have asked their partners and consumers
to return the technological waste that is generated at the workplace. They aim to recycle
around 75% in terms of weight of the waste that is generated by IBM at the global levels
(Gitsham, 2012). It is their strategies that have helped them to collect 89.5% of the 34,200
metric tons of the non-hazardous waste and have sent them for recycling. Some of the

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materials that have been recycled are paper, metal, cardboards, debris, cafeteria materials,
wood, plastics and construction debris as well as IT materials. Their strategies like waste
water treatment has helped them in reusing the waste water that is generated at their
workplace such as in the sanitary purposes. They are reusing the materials that are generated
in the waste especially the items such as silicon elements and the instruments where there is
highest use of silicon. Since silicon is highly priced element and it is highly used in the
equipment hence using this approach will allow the organisation to improve its profit share
(Dauvergne and Lister, 2012). They have made partnerships with the other companies and
following this approach they have used materials to the optimum levels. Use of this strategy
has helped them in reducing the amount of waste that is generated at the local levels. Their
strategies have also included the use of equipment or materials that uses lesser amount of
energy. This has not only saved their money but has also allowed them to take control of the
business operations. This has been done by them with their innovative technologies which
they are developing every year. Since silicon waste are also hazardous in nature hence these
management of waste through different management approaches allows them to see ethics in
the business operations (Banavar, 2012). They have developed such landfill sites that reduce
the health related impact on the local people and hence they maintain ethics in a proper
manner.
Oak cash and Carry
This company is operational at the micro levels where they are operating in the business of
groceries. This company has also used reduce, reuse and recycle strategy. This company has
reduced the use of single use plastics that has helped them in working towards sustainability.
Being an SME they have lesser amount of resources hence this company has started from
basic things such as plastics. They are also training people so as to ensure that the waste does
not get generated due to the employee’s failure (Baumann-Pauly, et al 2013). They have been
working towards reducing the carbon emission from their operations. They are also reusing
and recycling the papers that they are using in the operations.
Hicks Holding
It is also the micro company that is in the business of the house building. This company has
reduced the pollution that is done in the construction of the building. It is seen that Hicks
Holding is working on the materials through which construction is done. This is critical for
ensuring the sustainability of the firm and the environment within the organisation. Since

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highest amount of pollution is created in the construction due to the use of the materials and
the processes that has been used hence this company is working on both the use of materials
and the way in which materials are used. This is because they understand that the challenges
are in terms of the fact that people that are living in the nearby areas faces health issues due
to construction material. For this they are ensuring that only talented engineers work in the
company (Russo and Perrini, 2010). This allows them to improve their work process in a
better manner. They are reducing the use of materials that are creating pollution and reusing
and recycling the construction equipment to ensure that maximum benefits can be achieved
through it.
CSR approaches of different types of companies
In the modern day business CSR is very essential not only for stakeholders but also for the
firm as it builds a better relationship between the stakeholders and the firm. All the firms
have different approaches towards the CSR and sometimes it also depends on the size of the
organisation. Since the size of the SMEs changes hence the resources they have also change
and due to this their approach is different but there are some similarities as well.
Similarities
The first similarity is the fact that all these companies try to use the 3R approach to the
sustainability which not only reduces their expenses but also enhance their role in protecting
the environment. They take care of all the stakeholders that are involved and ensure that their
responsibilities of addressing the social and environmental concerns are fulfilled. Similarities
are associated in terms of the fact that all the micro and small scale firms applies triple
bottom line approach in their business so that they can take care of the social, economic and
environmental concerns of the people. Second most important similarity is that all these
companies have placed CSR in their core of business strategies (Fitjar, 2011). Companies like
IBM, Ikea and the WaltDisney have ensured that whatever they do must change the trend in
the industry and hence everyone follows a sustainable business model.
Differences
There are certain differences as well. This is mainly because the scope of the business of the
multi-national firms like IBM, Walt Disney and Ikea is focus on the making changes in the
business model that can affect at the global levels. For this they are investing higher on the

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developing innovation products and also training their staffs to reduce the carbon footprints.
On the other hand micro businesses like Hicks Holdings have to mostly concentrate on the
smaller areas i.e. within the country and they do not have enough of resources to innovate
new products which can be used hence they focus on reducing the operational flaws due to
which higher amount of pollution is generated (Vázquez-Carrasco and López-Pérez, 2013).
At the same time the SMEs like Oak Cash and Carry works on some areas in the country
where they are focusing on reducing the wastage in the community and the locality in which
they are operational. Other difference between the bigger and the smaller firms is that
companies like IBM, Walt Disney and Ikea tries to involve more and more external people in
their business which is not in the case of SMEs or Micro business.
Measure success in CSR strategies
Success can be measured by the fact that how much waste is generated from the organisation
if less than it is successful and if not then they need improvement. They can also apply the
policies related to SDG and check that what the criteria that they fulfil. They can also take
feedbacks from their stakeholders to know that they are successful or not (Schirone and
Torkan, 2012).
Conclusion
From the above based report it can be concluded that companies like IBM, Walt Disney and
Ikea are working towards the sustainability approach i.e. Reuse, Recycle and Reduce. They
are doing it with the help of innovative products and processes. Some of the areas in which
they have already applied this approach are water reuse and ban on single use plastics. It is
also evident from the report that there are similarities and differences in the approach of
different companies in the area of CSR. Similarities are in the form that they are putting the
CSR in the base of every strategy and differences are in terms of involvement of people in the
CSR programs.

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References
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