In this Unit 3 Assignment, Caterpillar’s Chief Sustainability Officer (CSO) whom hired me has informed me that Caterpillar’s CEO is resistant to the idea of investing more resources into Caterpillar’s sustainability programs. It is my understanding that the CEO believes that environmental initiatives that have been presented and in place do not help the company’s bottom line and therefore should not be continued. Within this paper I will briefly discuss the information that is covered within Caterpillar’s 2013 Sustainability Report as well as identifying any areas that would benefit from more company resources. I will also be making an argument for its economic and social benefits while focusing on how implementing such an initiative would …show more content…
In October 2003, Caterpillar “reached a consent decree with the EPA that would allow the company to continue selling engines that don’t meet emission standards as long as Caterpillar pays the penalties” (HDT, 2003). From this article, Caterpillar Inc. as a whole understood that the fines were only a temporary measure until they could begin fully producing compliant engines later on in the year. In the end, Caterpillar understood that a $2,500 per engine penalty was cost efficient versus shutting the entire factory down for several months while the new updated complainant engines were being built. Unfortunately, the company was able to keep manufacturing and selling the noncompliant engines at the cost of the environment and public …show more content…
The first principle is preventing waste. Preventing waste means “improving the efficiency of products, processes, services and solutions, which not only reduce cost, but also lead to environmental benefits associated with reduced materials, energy, water, and land utilization” (Caterpillar, 2013). The second principle is improving quality. Improving quality “applies to the quality of the processes, products, services, solutions and safety practices utilized throughout the Caterpillar enterprise, as well as the quality of the communities and the environment in which Caterpillar operates” (Caterpillar, 2013). The third and final sustainability principle is developing better systems by “preventing waste and improving quality measures that provide the key drivers for developing better systems such as keeping resources in the value chain through a circular flow of materials, energy, and water is critical to maximizing total life cycle benefits while minimizing the cost of ownership” (Caterpillar,
With forward movement in society, it is important to consider not just what will propel most toward success, but also what will help to sustain the environment along the way. What may have been considered appropriate decades ago, may no longer be socially acceptable due to the changes observed in both the business world and the environment (Fiske, 2010). Therefore, it is important for organizations thriving in today?s economy to consider how they may capitalize most effectively from their product or service of choice while minimizing or eliminating any damages along the way (Knoke, 2012).
Wheelen, T. L., & Hunger, J. D. (2010). In Concepts in Strategic Management and Business Policy Achieving Sustainability, Twelfth Edition. Pearson Education.
Supplying eco-friendly products has been on the Walmart agenda since the early 1990s. After a failed first attempt and much criticism, the company decided to try again. In a speech made in October of 2005, CEO of Walmart, H. Lee Scott Jr., declared Walmart would devise a “business sustainable strategy” to reduce the environmental impact the company had. Walmart could not pull this off alone. If they only focused on the confines of themselves, rather than all that they were involved with, it was estimated that they’d only reduce their impact by about 10%. To reach that goal of 100%, Walmart had to involve stakeholders to make networks which achieve sustainability. These networks proved to be vital in not only Walmart’s goal in minimizing its environmental impact, but recovering their reputation, avoiding criticism, saving money, raising awareness, improving customer satisfaction, and creating incentive for other businesses to work towards sustainability.
According to Marc J. Epstein (2008), to help understand what sustainability is in the context of corporate responsibility, [Epstein has] broken it down into nine principles.
According to the EPA, Section 203 of the statue prohibits the “manufacture, selling, or installation of any device that intentionally circumvents EPA emission standards by bypassing, defeating, or rendering inoperative a required element of the vehicle’s emissions control system” (EPA, 2016, para. 1). Volkswagen illegally installed software, called defeat-devices, to make its diesel engines pass U.S. emissions standards (Cavico, 2016, p.305). Additionally, Section 207 gives the EPA authority to “require a manufacture to issue a recall when EPA determines that a substantial number of vehicles do not conform to EPA regulations” (EPA, 2016, para. 5). Furthermore, the Federal Trade Commission (FTC) instituted a civil complaint against Volkswagen contending that the company engaged in false advertising claiming that its vehicles were environmentally friendly (Cavico, 2016, p.
Highlighting top corporations having profitably integrated environmental thinking into business practice, Green to Gold is to be on every businessman reading list. With emphasis on key points, examples, problems and the solutions, Green to Gold applies for everyone seeking to find an exclusive niche in the marketplace. It is a serious read that serves as a guideline principles and methods to transform short-term ecological benefits into continuing intangible gains for the company. The use of this book is highly recommended in institutions like universities, business, and hospitality course.
From O*Net Interest Profiler result, I chose “Chief Sustainability Officer” as one of the career paths that I would like to explore more. Chief Sustainability Officer could also be called Director of Sustainability or Director of Sustainable Design. Their main task is to maintain the sustainability level of a company by coordinating it with the shareholders, management, customers, and employees.
The scope of the sustainable development is conceptually divided into three parts: environmental, economic and social; each of these pillars must be on an equal stage, promoting a model of growth without exclusion (social), equitable (economic) and safeguard natural (environmental) resources (MIT Press Journals, 2017). Considering the words mention above, an interesting approach we could focus on is the way the industry uses the materials to develop projects.
Stuart Hart, in a business article, discusses the tough task for companies to make a sustainable global ec...
Sustainable operation management is a management approach that involves planning, implementation and control of business operations that translate available resources into the required product or service. It is the management of business practices, traditions and operations to promote the highest level of efficiency, smooth workflow, and increased productivity in an organization. This management strategy ensures that the available labour force and materials are changed into products or services in a cost effective way to increase the company’s returns (Corbett, 2009). It also involves production waste management, food waste reduction, creating new opportunities, environment protection, and improving customer health. Sustainable operation management in the retail industry around the world has gained momentum in the recent years, in the face of customer pressure and media interest. It is particularly linked to the concepts of corporate social responsibility and global warming (Morrison, 2013).
Important companies like Shell, DuPont, BP has been reorganised to generate profits from this green market of goods and services. In this sense, it may sound altruistic, "the sustainability", the logic of profitability and competition is what will determine the ability of companies of the future to meet the changing needs of consumers.
Humans have been destroying the planet since we were able to stand on two legs. As a society, we need to work to reverse these terrible effects that our existence has on the planet. Sustainability is one way to begin reversing these effects, while still living our daily lives. In 2006, Al Gore presented his documentary, “ An Inconvenient Truth”, as a way to show the world the evidence behind global warming, climate change and the destruction of our planet. This documentary shocked the world. It was clear that changes needed to be made, but the destruction was more intense than previously thought. SInce this revelation in 2006, companies have tried to cut down on their greenhouse emissions, as well as offered sustainable products to their customers. Through a debate of morals and
The primary goal of The Walt Disney Company is to become one of the world’s leading producers and providers of not only entertainment, but also information (The Walt Disney Company, 2014). The company aims to achieve this by utilizing its immense brand portfolio so as to differentiate services, content, and consumer products. While this is the overall goal, there exist other innate milestones that essentially touch on socially responsible business in enhancing sustainability. They include, but are not limited to; zero net greenhouse gas emissions, whereby the company aims to have reduced net greenhouse gas emissions by 50% by 2020; zero waste, whereby Walt Disney hopes to achieve a 60% reduction in waste from
Business sustainability consists of three components, these are: social, economic and environmental. The business has to consider these three components as the business must make a maximized profit (economic) but must not in any way damage the environment in the long term (environmental). The business must also take care of social issue and people and communities as they are support the business.