Business Strategy and the Environment of the Clorox Company - Case Study Example

The Clorox Company The Clorox Company is a producer as well as dealer of consumer and professional goods. The business functions within four segments which includes “Cleaning, Household, Lifestyle and International” (Delmas & Blass, 2010). Clorox trades its goods largely by means of retailers, grocery shops, other selling points, distributors and suppliers of medicinal products. Environmental Indicators Usage of materials by volume: The basis of Clorox’s business rests upon natural components, with a huge proportion of its raw materials being produced from renewable sources. The company is industry leader in utilization of renewable raw materials, with around 64 percent of the materials used to produce the goods during 2012 derived from such sources. Throughout the year 2012, the company continued to observe the proportion of renewable raw materials within the latest products it introduced in the market. Overall, around 35 percent of Clorox’s latest products produced from 99 percent of renewable raw materials. Energy consumption: Clorox has assessed discharge of gases involved in climate change for over ten years and have always set goals for decline. The company has raised the quantity of renewable energy that it generates to a great extent, with more or less 14 percent of the company’s energy now originating from non-fossil fuel sources. Water consumption: By initially concentrating on decreasing the effect of its biggest consumers of water, and afterwards focusing on those who are abstracting water from diminishing sources, Clorox highlight the sustainability of its business functions. It also decreases its impact as low as realistically feasible and shows to domestic stakeholders that it functions reliably and takes environmental sustainability very seriously. Green house gas discharge: During the year 2012, Clorox’s total carbon-dioxide discharge for regular functions decreased around eight percent in comparison with 2011. This is a result of decrease within total energy usage and a rising use of energy from non-fossil sources. Waste and disposal system: Clorox knows that the “deposition of waste to landfill is not sustainable” (Ofek & Barley, 2011), continually adjusting land as well as potentially introducing contamination to both air as well as water. Therefore, the company produces a detailed list of the entire landfill waste from its production plants and the possibility of removing, lessening or reprocessing this waste is being studied. Policies to lessen environmental impact: The Company’s approach to lessen its environmental impact concentrates on the material concerns that have recognized as most significant to Clorox as well as to its stakeholders. To reduce the environmental impact causing from water usage as well as from wastewater discharges from its manufacturing facilities. To alleviate the environmental stress of “activities place on land, water and air by making successful attempts to protect biodiversity as well as to phase out the discarding of waste to landfill” (Dauvergne & Lister, 2012). Social Indicators Usefulness of plans for communities: Contact with local communities has constantly been a key element of Clorox traditions. The company knows that its activities directly influence the communities in neighbouring areas, mainly those that are in the close proximity of sites for manufacturing facility. The company ascertains that it’s practical, engaging approach to society communication, participation and learning enhances the rapport and boosts employee confidence as well as expertise. Anti corruption policies: Workers with high chances of exposure to corruption linked issues because of their job or location have to attend an online training course. The course involves workers being exposed to several situations pertinent to the business. Other than the online training, senior management gets additional instructions concerning the Act, explaining the way Company’s policies and processes operate to guarantee observance. Economic Indicators Economic value generated: Clorox attained record sales during the year 2012. Revenues from regular operations increased by three percent and there was an increase of eight percent for the operating profit and 25 percent for return on sales. This was made possible by strong underlying activities in the two key business segments of customer care and performance technology. Financial implication of business operations due to climate change: Clorox is aware of the fact that climate change is influencing the way people think about businesses and the decisions that companies stake. Within its risk management structure, the company wide influence and trends together with outer and rising risks are recognized, including those linked with the change of climate (Unruh & Ettenson, 2010). Even though no particular threats regarding climate change appeared as major biasness risk, the influence of climate change on the business activities have been acknowledged. As the connection among discharge of combustion goods like carbon dioxide and climate change is now well known, it is necessary that being a communally dependable business, Clorox decrease the impact of its discharge to a sustainable point. The anticipation of company’s every stakeholders is that it carries on making progress in decreasing emissions of gases causing climate change. Clorox is at a strong position to take advantage of new trends linked with change, with a major percentage of its raw materials originating from renewable resources and its new product growth having a powerful focus on goods that can assist in decreasing the energy that individuals as well as production work use during manufacturing and end use. Company’s benefit plan for employees: Provision of retirement fund shapes part of Clorox’s entire employment package, which is related to the requirements of its workforce and the markets within which it functions. The company dynamically supports workers to join retirement fund plans where accessible. Financial assistance from government: In some specific conditions, the company holds the option of asking for findings from local governments with the intention of supporting its sustainable development plans. References Dauvergne, P., & Lister, J. (2012). Big brand sustainability: Governance prospects and environmental limits. Global Environmental Change, 22(1), 36-45. Delmas, M., & Blass, V. D. (2010). Measuring corporate environmental performance: the trade‐offs of sustainability ratings. Business Strategy and the Environment, 19(4), 245-260. Ofek, E., & Barley, L. (2011). The Clorox Company: Leveraging Green for Growth. Springer. Unruh, G., & Ettenson, R. (2010). Growing green. Harvard Business Review, 88(6), 94-100. Read More