How Brambles Use Innovation to Drive Its Sustainability Practices - Case Study Example

Name: Class: Unit: 1. Brambles' current dominant commitment to sustainability using sustainability phase model and checklist From the analysis, it is clear that Brambles is highly committed to sustainability (Brambles, 2017). The move to sustainability by Brambles can be best explained through the phase model. The assessment of Brambles involves meaningful comparisons to determine their current dominant commitment to based on two kinds of sustainability which are: human and ecological. Using the phase model, it is possible to see the sustainability commitment journey starting from the active antagonism to strong commitment and lastly furthering the satiability values beyond the organisation but to the industry and entire society as in the case for Brambles. The phases in this case have been used to help in tracing the historical trajectory which has been taken by Brambles to get to where it is and the possible way forward. The phases looked at are (Benn, Dunphy, & Griffiths, 2014): Rejection Non-responsiveness Compliance Efficiency Strategic proactivity The sustaining corporation Analysing Brambles, it is clear that the firm did not progress through the phases in each and every step improving continuously. The company sustainability focus is closely tied to the aspects of the United Nations Sustainable Development Goals (SDGs) (Brambles, 2017). The firm have been able to leapfrog phases and in some cases regressed in some areas as they abandon some of the established sustainability goals. To gain an understanding on the current dominant commitment to sustainability, it is important to gain an insight into each of the individual phases. At the rejection phase, the firm has an attitude that all the resources which include the employees, community, ecological environment and the infrastructure have to be used for the immediate firm economic gain (Benn et al., 2014). This is where there is no employees’ development and there is ignorance on the employees’ safety. Based on the firm sustainability report, Brambles has moved beyond this stage. The firm have moved beyond making profit and is more focused on sustainable development. From the sustainability report, it is clear that the firm have already established a commitment to enhance supply chain efficiency, invest in people and communities while at the same time ensuring that they are conserving the environment (Brambles, 2017). According to Benn et al. (2014), non- responsiveness phase is based on lack of awareness or ignorance in most cases. This is a phase that is evident in most of the organisations which embodies the culture of the last century. From the analysis, it is clear that Brambles have gone beyond this stage. They operate in a way that incorporates sustainability issues in their decisions. They have sustainability goals embedded to the Sustainability Development Goals (Brambles, 2017). In this phase, the firms involved ignore the community issues and also the environmental consequences are ignored where possible. This is not evident at Brambles who have a great investment in sustainability. Benn et al. (2014), claims that compliance is all about reducing risks associated with sanctions. These are sanctions given due to failure to meet the minimum standards. It involves avoiding environmental abuse which can lead to litigations or community action against the firm. The analysis of 2016 report shows that the firm has moved beyond this stage. In fact, Brambles focus on sustainability is more than just compliance. They have gone beyond the norm and set goals to attain based on their 2020 targets. The firm sustainability goes beyond the efforts to avoid litigation to passion for a sustainable future. This is through their world largest circular supply chain (Brambles, 2017). This is aimed at maximum benefit and efficiencies from their networks to the environment and community. Benn et al. (2014) assert that efficiency is based on growing awareness from the dominant elites in an organisation that there are benefits to be attained from sustainable practices. This is through reduced costs and enhanced efficiency. This includes activities such as recycling of waste as seen in the case of Brambles. At this phase, an organisation human resource and environmental policies are aimed at cost reduction and enhancing efficiency. At this phase, an organisation is able to incorporate efficiency as an integral part of their business. The analysis shows that Brambles have already passed this stage and theory sustainability strategy is more than just for the efficiency and cost cutting (Brambles, 2017). Strategic proactivity-this is a phase where the firm moves further in their sustainability strategy (Benn et al., 2014). In this stage, sustainability is seen as a means for providing a competitive advantage. At Brambles, it is clear that sustainability is seen as a means for provision of a competitive advantage. Despite this, it is clear that the firm have moved beyond this stage. In their sustainability report, the firm claims that profits and planet are no longer in compromise. The firm focuses on better and sustainable supply chain for a better business. The commitment to sustainability is seen to be based on more than just maximising the long term corporate profitability. The firm has moved beyond this stage and their efforts for sustainability are not only motivated by the intelligent corporate self-interest. For example, the firm have been able to eliminate over 460,000 tons of waste by 2015 and save 1.38 million trees (Brambles, 2017). These are initiatives that go beyond the corporate interests. Sustaining corporation is the stage that Brambles is in. At this stage, it is clear that the strategic elite have already internalised the ideology of sustainability (Benn et al., 2014). Despite seeking for the profits, the firm have goes beyond and voluntarily invested in saving the environment to ensure ecological sustainability. The firm have been setting sustainability goals and linking them with the SDGs. Based on 2016 sustainability report, the firm has already set the 2020 sustainability goals. This is a firm that have been working hard to be aligned with the United Nations SDGs (Brambles, 2017). They also work in close relationship with the community with an aim of enhanced sustainability. 2. How Brambles use innovation to drive its sustainability practices Kiron, Kruschwitz, Reeves and Goh (2013), sustainability leads to a change in business model towards sustainability. This is in most cases a business model innovation which is a major determiner on whether the business will make profits from sustainability. Setting sustainability goals as seen in the case of Brambles requires the top management to be consistent in adding new capabilities and changing some of the business elements. One of the main innovations at Brambles on sustainability is based on share and reuse. Most of their containers are made from recycled products which accounts for 30%. The firm have also come up with an innovative approach to save food waste. Based on 2016 report, the firm was able to save 3,920 tonnes of food waste through RPCs. Through innovation and collaborating with the customers, it has been possible for Brambles to save 2.3 million tones of CO2. Innovation is also seen in the firm model of sharing and reusing the pallets and RPCs. The firm have been working with innovative partners such as WholesumHarvest which grows organic fruits and vegetables using biological control (Brambles, 2017). Innovation is seen in Brambles through their practices such as the upcycling. This is a process where the waste materials are transformed into new products with a higher value. For example, there is upcylced half plastic pallet from the company. Another example is the BXB Digital which is a business venture based on the internet of things. This is a venture that helps in asset management, products visibility and quality monitoring in the supply chain (Brambles, 2017). Through innovation, it is clear that Brambles have been able to attain better business and become more sustainable. It shows a change of business model from the traditional approach to an innovative approach to cater for profitable sustainability (Kiron et al., 2013). 3. Overall impression of the organisation's performance and list any recommendations for areas for improvement. Brambles performance in sustainability is exceptional. The firm has an excellent record of putting sustainability ahead of profits. This is a firm that have shown that there is no compromise between profit and sustainability. Operating through the CHEP and IFCO brands, the firm has one of the largest circular supply chains globally. The supply chain makes it possible to facilitate reusing of 550 million assets among the consumers in over 60 countries (Brambles, 2017). The firm has one of the most optimised supply chain which makes it possible to reduce waste and make the global trade efficient and sustainable. From the analysis, it is clear that this is a business venture that is fully committed to high efficiency and environmental benefits through their operations. Through sharing and reusing, the firm is able to create a sustainable value. The business model has made it possible to reduce reliance on the natural resources, reduce costs and make the environment more sustainable. According to Brambles (2017), the firm is able to use its technicians to help external supply chains reduce waste or divert it to groups which can reuse it. Brambles is an ethical organisation based on the analysis of their sustainability reports and articles. According to Ardichvili (2013), ethics is a code of moral standards which guides behaviour. The sustainability decisions made by the firm are aimed at moral rights view, justice view, and utilitarian views. The actions by Brambles are based on ethics of environmental sustainability. The business is able to meet the needs of the present without compromising the ability of the future generations to meet their needs (Ardichvili, 2013). It is important to note that environment in this concept goes beyond the flora and fauna to include the human species. The commitment to ecological sustainability ensures that Brambles is able to cater for the local communities and the environment (Brambles, 2017). This is a moral responsible company which knows what is requires and does it based on free choice. The moral choices made by the firm has ensured that there is sharing and reusing which has reduced waste, enhanced efficiency and benefited the communities (Ardichvili, 2013). Sharing and reusing is a sustainability concept is based on ethical standpoint. Schermerhorn et al., (2014) state that business management determines the level of performance. The current performance at the firm can be associated with their management commitment. This is through ensuring employees safety, better pay and appropriate working environment. The management role link with performance is seen through 4 main elements. The elements are; efficiency, employee satisfaction and adaptability (Andersson, 2010). Based on Mallow’s hierarchy of needs, the employees’ needs are addressed to ensure complete satisfaction. As Brambles progress in their quest to enhance their sustainability based on the set 2020 goals, it is advisable to implement the Theory Y. this is due to fact that sustainability works well when the employees are responsible and can exercise self-direction. The management is also expected to respond to individual employees differences (Andersson, 2010). This is to ensure that every employee is catered for based on their preferences. The outcome will be a highly motivated workforce which is required to attain the 2020 sustainability goals. From the analysis, it is evident that Brambles is an inclusive company which appreciates diversity in their supply chain. This is through an organisation culture that appreciates diversity through an inclusive approach. The work environment makes it possible for everyone to reach their potential. With international operations, the success of the circular supply chain can be attributed to a success in their international dimensions of management. To continue being competitive, it is advisable for Brambles to continue investing in global managers. These are managers who are culturally aware and well informed in the international affairs. This will make it possible for the organisation to continue in their global operations successfully. Global planning and controlling is a major challenge that the firm must be ready to face (Schermerhorn et al., 2014). This will include taking into context different cultures, environments, cultures and needs. Management across cultures is an important asset for global businesses (Andersson, 2010). This is an area that the firm has to continue investing in to maintain their current level of success in sustainable business. Brambles have to look at their organisation as a complex adaptive system and open system. This requires ensuring that there is an appreciation on the existing relationships, interconnections and interdependencies among the systems. As an open system, customer reigns supreme (Schermerhorn, Davidson, Poole, Woods, Simon & McBarron, 2014). The feedback that the organisation will be getting from the environment has to be used in determining how the organisation is performing and where to improve. Moreover investing in human resource is an enrichment of the firm’s intellectual property (Schermerhorn et al., 2014). The main aim is to invest in employees for the organisation to attain the 2020 sustainability goals. Decisions making at Brambles are well articulated to ensure sustainability. From the analysis, it is clear that sustainable approach is based on strategic decisions making. This is through following an approach that avoids shortcuts, intuition and loss avoidance. The decisions are made without looking at compromise. The management explains that there is no compromise between sustainability and profits (Brambles, 2017). There is no judgement based on loss and profits when making a decision to be sustainable. This is due to a strong believe that sustainable decisions leads to long term paybacks and the benefits may not be immediate. Most of the investments in sustainability made by Brambles are based on huge investments in areas which are aimed at ecological sustainability and low to zero profits. When faced with a decision, it appears that the management focuses on all sustainable solutions and avoids bias to come up with sustainable solutions. The management is in the frontline to come up with appropriate sustainable approach to business. It is important to note that sustainable decisions are prone to bias compared to other types of decisions. This is due to fact that these are decisions which requires going against the status quo. This includes both routine and complex decisions in an organisation (Farrell, 1999). The progress in Brambles sustainability journey shows commitment by management and staff in sustainability decisions which has led to success. This is an area that the organisation has to maintain. References Andersson, T., (2010). Struggles of managerial being and becoming: Experiences from managers' personal development training. Journal of Management Development, Vol. 29 Issue: 2, pp.167-176. Ardichvili, A. (2013). The role of HRD in CSR, sustainability, and ethics: A relational model. Human Resource Development Review, 12(4), 456-473. Benn, S., Dunphy, D., & Griffiths, A. (2014). 'Extracts : Organizational change for corporate sustainability.' In : Organizational change for corporate sustainability / Suzanne Benn, Dexter Dunphy, Andrew Griffiths. Third edition. London : Routledge, 2014. pp. 3-22 ; 28-33 ; 323-331. Brambles (2017). 2016 Sustainability Review. Retrieved from http://www.brambles.com/Content/cms/sustainability- 2016/BRL179_S31_Sustainability_Report_for_web.pdf Farrell, A. (1999). Sustainability and Decision‐Making. Review of Policy Research, 16(3‐4), 36-74. Kiron, D., Kruschwitz, N., Reeves, M., & Goh, E. (2013). The benefits of sustainability- driven innovation. MIT Sloan Management Review, 54(2), 69. Schermerhorn, J R., Davidson, P., Poole, D., Woods, P., Simon, A., & McBarron, E. (2014). Management 5th Asia Pacific Edition. Milton Qld, John Wiley & Sons. Read More