Sustainability In Global Business - Dissertation Example

Sustainability in Global Business Introduction Business sustainability is the management and organization of social, political, ethical, economic and environmental issues in order to achieve company growth. The main objective of business sustainability is to change the operations of the business in order to meet various regulations and standards. Social, ethical and environmental issues are given special consideration when pursuing business sustainability. A business plan should contain plans on environmental sustainability; helping the society; satisfying stakeholders, meeting financial responsibilities and meeting legal requirements. Businesses should incorporate the principles of sustainability into their business model. Achieving sustainability increases productivity, reduces operational costs, increases profits and augments public relations. EDF Energy EDF Energy is an energy company based in the United Kingdom. EDF Energy has its headquarters in London. The company was founded in 2002 and is owned by Electricite de France, a French multinational. EDF Energy has a controlling stake in British Energy. The firm is one of the largest energy production and distribution companies in the United Kingdom. EDF Energy is involved in production of electricity, transmission of electricity, distribution of gas and sale of electrical products. Electricity production is done through nuclear reactors, fossil fuel and wind. The company owns two stations that produce through the combustion of coal and is in the process of constructing a new coal-fired power station. EDF Energy also operates two wind farms and eight nuclear power generators. Currently, EDF Energy is building two turbines to be used in generation of electricity from tidal energy. Business Scenario in 2050 In 2050, the business setting is forecast to be different from the current scenario. Businesses will be subject to various policies, regulations, environmental factors and societal values. European Commission and the United Nations have developed plans that will be implemented before the year 2050. These plans have been developed because of the need to stop environmental pollution, attain resource sustainability and encouraging companies to be involved in corporate social responsibility. It is expected that by 2050, these plans will have been accomplished and organizations will have to create business strategies to meet the environmental, legal, social and political issues of the period (William, 2003). The United Nations Environmental Program The United Nations Environmental Program has developed an action plan to combat climate change. The priorities of the plan are: i. Reduction of the quantities of toxic waste produced from factories. ii. Reduction of water, air and land pollution to a minimum. iii. To encourage mindfulness, legal frameworks, political support and promotion of resource preservation and resource efficiency through waste iv. Reduction of the amount of toxic waste produced from industries to a minimum. v. Widespread use of zero emission machinery, airplanes, cars and electronics in order to reduce air pollution. Zero carbon community by 2050. vi. Exploration of alternative forms of energy to reduce the overdependence on natural resources especially fossil fuels. vii. Having companies with expansive corporate social responsibility projects especially in the environmental and social sectors. viii. Energy efficiency will be implemented in all sectors of industry, business and government. ix. Formation and implementation of environmental policies and protocols in all countries. The European Commission The European Commission (EU) has developed a roadmap that should be executed by 2050. The main objectives of the roadmap include: Eco-friendly machineries and technology will be expected to be in widespread application in all industries by 2050. Expanding supply machinery by providing technology that will be more efficient and environmentally friendly. Reduction of greenhouse gas emissions from factories, homes, businesses and cars within member countries. Increasing energy efficiency. The EU plans to persuade member countries to be politically committed to saving energy. The measure include tighter restrictions for building and equipment manufacture; restoration of existing building and establishing energy saving regulations. Reducing the number of nuclear power station. The EU forecasts that by 2030, no country will be building new nuclear power stations. By 2050, the EU expects operational nuclear plants to be very few or non-existent. Establishment of environmental management systems to provide the structures and procedures to embed environmental sustainability within business organizations. Production of electricity from renewable sources such as tides, wind and solar. The EU aims to reduce production of electricity for non-renewable sources and fossil fuel. Energy companies will be required to increase research and have more effective sustainability policies in place. Accountability and reporting form all businesses regarding environmental issues. Using this information, the business scenario in 2050 will be environmentally, politically and socially challenging. Companies will be expected to produce environmentally friendly machines, reduce waste and produce energy though renewable resources. Social and political policies will be implemented to regulate business action (Paul, 2000). Environmental, Social, Economic and Political Challenges Facing EDF Energy EDF Energy is faced with the problem of meeting U.K. government policies and regulations. The U.K. Government has passed regulating companies and their operations. The government policies affecting EDF Energy are those concerning the environment, manufacturing, energy. The Environment Agency policies direct that companies produce very little toxic waste and manage any waste produced. EDF Energy is faced with the problem of reducing the amount of waste produced from its power generating stations. Nuclear waste produced from the eight nuclear power plants has to be appropriately handled. Greenhouse gases and smoke are emitted from various power plants and this causes constant conflict with the Environment Agency. EDF Energy is faced with the social challenge of meeting shareholder needs over fulfilling corporate social responsibility projects. There is also constant pressure for social groups on the company to reduce prices and pay higher wages (Paul, 2000). The rapidly increasing population of the U.K. has increased the demand for energy. Therefore, all energy sector stakeholders have the challenge of meeting the country’s growing energy requirements. Increased demand for electricity and gas means that EDF Energy has to generate higher quantities of electricity than it is currently producing. Machinery, capital and resources have to be increased in order to meet energy needs. EDF Energy has to constantly upgrade equipment and technology in order to keep up with energy production and transmission standards. Energy production methods have to be efficient in order to reduce operational cost. The firm is faced with the problem of building more efficient power transmission lines to enhance supply efficiency. EDF Energy has to constantly keep the supply of electricity steady regardless of the harsh weather conditions that are experienced. EDF Energy produces electricity through wind, coal and nuclear. The environmental policy on energy production directs that power is produced through utilization of renewable resources such as solar, water and wind. EDF Energy is constantly engaged in research in order to find ways of integrating use of renewable energy sources into the production of their electricity. Huge financial resource have to be invested when changing for non-renewable resources to renewable resources. EDF Energy also has to reduce the number of nuclear power plants in operation within the U.K. With increasing populations and geographical diversification, EDF Energy has the obligation of transmitting power and gas to new locations. Currently, the firm has high carbon intensity levels. They are faced with the challenge of reducing the carbon emissions to a low in order to stop air pollution (Carroll & Buchholtz, 2014). EDF Energy Strategic Plan EDF Energy faces various social, economic, legal, political and environmental challenges. The management has to come up with inventive and all-inclusive plans in sustainability and continue profitability. The following are the approaches that will be implemented by EDF Energy to ensure business sustainability. Assimilating waste management systems into the energy production process. EDF Energy will have to integrate waste management into the production of electricity. Nuclear waste from the power plants will be correctly handled and disposed of. Gas emissions from coal power stations will be purified before being released into the air. Liquid wastes will be managed or recycled instead of getting drained into land or nearby rivers. EDF will have to integrate production of energy using renewable resources to its business model. Production of power from coal will have to be stopped for less polluting methods. EDF Energy will reduce the number of nuclear power plants in operation and stop any plans to increase the number of nuclear plants. EDF will be expected to produce electricity through only wind, solar and tidal. This will reduce the amount of carbon dioxide emissions from the various EDF Energy power plants and help control pollution and climate change (Labuschagne, Brent, & Erck, 2005). Improving energy production efficiency by using current technology and applying methods of production that decrease wastage of energy. Installation of effective power grids across the U.K. for efficient power transmission. This will greatly improve EDF Energy’s energy efficiency levels and meet government guidelines. Production of eco-friendly electrical equipment. EDF Energy will stop the production of electrical equipment that go against the Environment Agency requirements. This will meet the EU energy regulations on low carbon emission. Producing environmentally friendly appliances will give EDF Energy a competitive edge over its competitors. Instigating comprehensive company practices and strategies aimed at stopping climate change and environmental degradation. All EDF Energy power plants, industries and offices will apply environmentally sound practices in all divisions of company operations to guarantee that environmental sustainability is achieved. This will involve using energy economically, using zero emitting equipment, driving electric or zero emission vehicles and reducing wastage of paper. Subsequently, operational costs will be reduced and productivity will be increased. Employing environment pollution specialists to assess the levels of pollution emitted by the power plants. Then EDF Energy will initiate and apply new procedures for meeting environmental sustainability. Government policies and regulations will be followed when implementing the environmental strategies. This will ensure that EDF Energy is environmentally sustainable. EDF Energy will initiate several projects in the society in order to fulfil their social responsibility. Partnerships and collaborations with environmental sustainable companies will ensure that EDF Energy applies environmentally sound practices in all levels of the business from supply to electricity distribution. Conclusion Achieving sustainability should be the most crucial objective of EDF Energy. Business sustainability will ensure that the firm. Sustainability will ensure that the company meets environmental, social and political obligations. Meeting government regulations will ensure that the company operates smoothly without coming into conflict with the government. Sustainability will reduce costs and increase profits for EDF Energy. Therefore, it is recommended that EDF Energy implement the strategic plan in order to attain business sustainability. References Carroll, A., & Buchholtz, A. (2014). Business and Society: Ethics, Sustainability, and Stakeholder Management. Cengage Learning. Labuschagne, C., Brent, A. C., & Erck, R. P. (2005). Assessing the Sustainability Performances of Industries. Journal of Cleaner Production. Paul, P. R. (2000). Public Policies for Environmental Protection. Resources for the Future. William, A. (2003). Green development: Environment and Sustainability in the Third World. Routledge. Read More