Managing People and Organizations: Brambles Sustainability Strategies - Case Study Example

Managing People and Organizations: Brambles’ Sustainability Strategies Name Course Name and Code Date Introduction and Overview Brambles Limited is listed on the Australian Securities Exchange. Brambles was established in 1875 and it is a supply chain logistics group that specializes in pooling of unity load equipment and associated services. Brambles areas of specialization include containers, reusable produce crates, and pallets. The company employs more than 14,000 people and it owns more than 500 million containers, crates, and pallets and it has more than 850 service centers (Brambles, 2017). Brambles operate in different countries from North America, Latin America, Asia-Pacific, Africa, Europe, Middle East and India. The area of operation including associated activities means that an effective framework of sustainability should exist. Sustainability is based on ensuring the resources are managed effectively while also considering the requirements of other facets of the organizations such as profitability, environment, and society. The paper discusses Bramble’s 2016 Sustainability report premised on Benn, Dunphy and Griffiths’ sustainability checklist and phase model. Sustainability Phase Model and Checklist The phase model incorporates rejection, non-responsiveness, compliance, efficiency, strategic pro-activity and sustaining corporation (Benn, Dunphy & Griffiths, 2014). Like other corporations, Brambles has continuously understood the importance of sustainability and has implemented numerous processes towards sustainability (Eccles, Ioannou & Serafeim, 2014). The ideology or business approach of Brambles is the optimization of flow of goods through ensuring waste are reduced while efficiency and sustainability are improved (Khan, Serafeim & Yoon, 2016). It means consumers share and reuse the resources translating to numerous environmental and efficiencies benefits. The operational model and business practices indicate the integration of sustainable measures in the business. Brambles continuously develop measures and through a partnership with different organizations ensures compliance and collaboration with sustainable practices (Lourenço & Branco, 2013). For example, Brambles’ sustainable measures are tied to the 2020 sustainability goals of the United Nations Sustainable Development. In addition, Brambles is ranked highly by numerous partners and supporting organizations such as it was ranked second in the 2016 Dow Jones Sustainability Index, Kroger’s 2020 Zero Waste Strategy, ranked highly by Coca Cola Europe’s sustainable supplier award and has partnered with Wholesum Harvest to improve the supply chains (Brambles, 2016). Analyzing the feedback and review from these organizations indicates that Brambles has integrated sustainability processes and approaches to strategic operations. The sustainability report also has provided information around stakeholder engagement, data measurement techniques, assurance process, risks and opportunities and assessment of materiality (Khan, Serafeim & Yoon, 2016). The 2016 sustainability report shows that Brambles is a strategic pro-activity and sustaining corporation (Brambles, 2016). Brambles rank the business and sustainability operations based on the importance of these variables to the stakeholders (Hörisch, Schaltegger & Windolph, 2015). Some of the aspects that have been continuously analyzed and incorporated into the management of the organization include the environmental impact of operations, sustainable benefits of sustainability processes, corporate governance, strategic materials, learning and development, Zero Harm and sustainable growth. All these activities ensure the different sectors and facets of the organization are sustainable and consider the long term requirements of the different stakeholders. Efficiency is also important to the organization since the company has continuously implemented measures targeting waste reduction and reorganization (Khan, Serafeim & Yoon, 2016). Brambles decision to eliminate waste results in materials efficiencies and increase process. Brambles have developed what is called “Brambles’ 2020 Sustainability Goals” (Brambles, 2016, p. 5) that provides information about better supply chains, better collaboration, better workplace-people, zero deforestation, zero emissions, and zero waste. These strategies and efficiency processes are aimed at ensuring the environment is protected while the social fabric is considered (Hörisch, Schaltegger & Windolph, 2015). It ensures that the company is able to evaluate the successes of each financial year since the statistics are progressive in nature in that it is weighed against previous periods. An organization should appreciate the importance of people in furthering the objectives of an organization (Lourenço & Branco, 2013). It ensures the organization creates modalities and frameworks targeting changing the ideologies of the employees towards sustainability processes (Benn, Dunphy & Griffiths, 2014). It is achieved through cultural change resulting in creating a transformative organization based on changing environmental conditions. Brambles understand the uniqueness and significance of cultural transformative through incorporating reflexivity, redesigning, engaging and leading (Khan, Serafeim & Yoon, 2016). It means that a single facet of sustainability may not suffice but numerous processes and practices may be required (Eccles, Ioannou & Serafeim, 2014). An effective sustainable strategy may be in place but the absence of skilled and competent people may impair the implementation of any strategy. Brambles continuously develop the employs to understand new approaches to activities and ensure the employees embrace processes translating to a sustainable organization. Brambles (2016, p. 15) presents the Brambles Engagement Survey (BES) results. The data indicates that 95% of the employees participated in the BES, 72% of the employee were engagement while 69% of the employees’ enablement. Value creation and value conservation are important in understanding the direction an organization takes (Hörisch, Schaltegger & Windolph, 2015). It includes creating effective HR systems that target higher productivity through embracing efficiency (Goyal, Rahman & Kazmi, 2013). It means effective integration of human resource on environmental functions is crucial and Brambles has implemented such a framework (Benn, Dunphy & Griffiths, 2014). Brambles has created a positive environment that encourages the employees to maximize on their capacities. It includes engaging the workforce and also providing benefits and resources resulting in fulfilling employment for the society. The HR process integrates the United Nations Sustainable Development Goals through focusing on some sustainable HR practices. These practices include enablement of the global workforce, employee engagement, learning and development, diversity and inclusion, and employee safety. Brambles (2016, p. 14) points to 25% reduction in Injury Frequency Rate, 30% of positions held by women, and 73% rating of corporate governance and employee engagement. The developments of any process and method have to reflect on numerous variables to create a lasting sustainable organization (Benn, Dunphy & Griffiths, 2014). Brambles understand the significance of sustainability and focusing on aspects such as auditing reporting, systems design, innovative capacity and partnering for renewal. Brambles fulfill these objectives through numerous approaches. For example, the reliance on Global Reporting Initiative’s (GRI) G4 Indicators and UN Global Compact Communication on Progress for 2016 has indicated the aim of Brambles to present actual information (Brambles, 2016). It ensures the sustainable strategies are traceable and documented meaning it is easier to determine the direction in which the company is going (Goyal, Rahman & Kazmi, 2013). In addition, retaining KPMG as an auditing partner indicates the decision to let an outside to review the practices and activities, which means that Brambles has the urge to continuously implement pro-sustainability strategies. Organization Use of Innovation to Drive Sustainability Practices Brambles has integrated an effective innovation in furthering the sustainability objectives. Through the “upcycled half plastic pallet,” the company has recycled plastic bottles and contains to generate plastic pallet. The half pallet product incorporates a technology called biomimicry for improving traction and strength while also ensuring the pallet is 100% recyclable (Brambles, 2016). The target customers for the product are those who are after highest hygiene standards. In addition, Brambles has developed a product called BXB Digital (Brambles, 2016). The company located in Mountain View California, it integrates ‘Internet of Things.’ The significance of the technology is to complement the network through capitalizing on the current network potential resulting in more sustainable solutions, reduced costs and greater efficiency for our customers. The use of BXB Digital technology in Brambles include quality monitoring, goods visibility and asset management across the supply chain. Overall Impression of the Organization’s Performance The ability of persuasion and encouraging collaboration is important in furthering the requirements of the organization (Benn, Dunphy & Griffiths, 2014). Brambles has partnered with numerous organizations in providing packing material through illustrating the shortcomings of the cardboard packaging materials compared to Brambles’ product. The alternative of cardboard usage is plastic corrugated, bulk, nestable and RPC. Brambles (2016, p. 12) states that embracing Brambles products translates to 82% reduction of water consumption, 91% of solid waste and 83% of greenhouse gas. It means that the Brambles activities assist other companies to reduce emissions translating to overall environment protection and sustainability measures. Transparency and reporting mechanisms are important because it is easier to document and understand the activities that have taken place (Goyal, Rahman & Kazmi, 2013). For example, showing the milestones and goals and documenting on the achievements are important in that it is easier to understand the direction the organization is going (Hörisch, Schaltegger & Windolph, 2015). Brambles understand the impact of their activities to the supply chain operations and the urge of different partners to reduce negative impacts to the environment means effective documentation is required (Benn, Dunphy & Griffiths, 2014). For example, if one of the partners requires renewing contractual obligations with Brambles, Brambles easily produces the documents and indicates the accomplishments. Brambles have effective structures and engagement avenues that allow the effective reporting and engagement with other stakeholders translating in satisfaction. Brambles aim for better business through implementing a sharing and reusing methodology. It translates to the creation of sustainable value. The sharing and reusing circular model ensures supply chains becomes more sustainable, reduces costs for the customers and decreases demand on natural resources. Brambles (2016, p. 7) states that through the sharing and reusing strategy, more than 1.4 million trees and 12,000 megalitres of water was saved. The analysis also indicates the Brambles activities resulted in saving more than 2.3 million tonnes of CO2 and 1.3 million tons of waste (Brambles, 2016). The use of RPCs also saved more than 3,920 tons of food waste and the saved food through the processes contributed to the provision of over 320 million meals for those in need. These analyses indicate that Brambles’ sustainability strategies and processes do not target only Brambles but have a wider impact on overall sustainability processes. Recommendations for Areas for Improvement The following are some of the recommendations that Brambles should integrate into its operations: i. The integrative structure that incorporates the different sectors of an organization (Khan, Serafeim & Yoon, 2016). Any organization is made of different sectors such as technology and human resource and focusing on one sector means that the other sector is disadvantaged (Benn, Dunphy & Griffiths, 2014). Brambles should not leave the sustainability processes to the technologists but integrate the views of human resource in advancing sustainable processes (Hörisch, Schaltegger & Windolph, 2015). It means that a collective framework is important that ensures the different sectors are integrated into furthering the objectives of Brambles (Amini & Bienstock, 2014). Hence, a balance of Brambles sector activities is crucial in ensuring each sector is sustainable development and improvement of processes. ii. Effective research and development in complementing variables of science and technology (Hörisch, Schaltegger & Windolph, 2015). The development of technology means that the innovativeness and creativeness can be used to improve the operational activities of Brambles. Brambles should utilize the benefits of research and development in improving the supply chain while also ensuring wastes are reduced (Eccles, Ioannou & Serafeim, 2014). The aim is to capitalize on research and development as the basis of creating sustainable processes and practices. iii. Transformative and culturally changing leadership and management ideologies and frameworks. Cultural change is crucial in ensuring the employees appreciate sustainable processes (Goyal, Rahman & Kazmi, 2013). The transformative approaches should be supported with continuous training and development (Hörisch, Schaltegger & Windolph, 2015). The transformative processes are one thing but informing the employees on new processes and procedures are important. Therefore, Brambles should embrace cultural transition and also integrate effective training and development processes. iv. Continuous engagement and supporting the communities and encouraging collaboration with partners (Hörisch, Schaltegger & Windolph, 2015). Even if Brambles implement effective and sustainable processes without the inclusion of other stakeholders, the entire process may not be effective (Goyal, Rahman & Kazmi, 2013). A successful sustainable process should include the views and aspirations of different partners. For example, including the community in contributing towards protecting the local ecosystem ensures a win-win situation. The community would learn the processes and strategies of sustainability, which the community can integrate into general practices (Hörisch, Schaltegger & Windolph, 2015). The engagement would also involve the government and other institutions tasked with sustainable processes (Amini & Bienstock, 2014). For example, Brambles can engage with environmental based institutions in developing practices and procedures to better protect the environment. Hence, effective collaboration and partnership are important in ensuring the organizational processes and activities are improved. v. Incorporating the financial framework to the entire processes. Brambles sustainability report discusses extensively the society and the environment but does not include extensive information about the financial facts (Goyal, Rahman & Kazmi, 2013). In improving the sustainability objectives of the organization, Brambles should also consider the wider impact of any sustainability strategies on financial objectives (Hörisch, Schaltegger & Windolph, 2015). For example, what are the important of inclusivity and diversity on salaries and wages, and further impacts on the financial ratios and revenues? It means that a constrained framework focusing only on social and environment may not suffice for long because of variables associated with shareholder theory (Amini & Bienstock, 2014). Even though the shareholders may consider the impact of any decision on the environment, the shareholders also want returns for their respective investments (Amini & Bienstock, 2014). Therefore, improving on financial reporting based on the impact of sustainability strategies and processes are important. Conclusion In conclusion, Brambles operates in the container and pallets industry whereby Brambles assists other companies with packing requirements. Brambles provide a variety of containers that meet the requirements of the customers and employs a sharing strategy. The outcome is a reduction in waste while also creating a sustainable environment. Brambles own more than 500 million pallets and it operates in more than 60 countries. The company focuses on numerous sustainability practices such as reducing emissions, reducing wastes, engaging partners on sustainable practices and utilizes standardized reporting mechanisms to illustrate their respective accomplishments. These numerous strategies and processes are important in that it indicates Brambles continues to create and implement strategies towards a sustainable environment. These processes and procedures come in different forms such as including innovation and creativity through creating new products with a focus on sustainability objectives. The plastic based pallets originate from recycled plastics, meaning Brambles aims to address the source of environmental degradation, which is plastic containers and bottles. Even though Brambles is effective in its operation processes, there are some areas that require improvement. Some of the proposed improvements include incorporating the financial framework to the entire operational processes, continuous engagement and supporting the community, effective research and development, and integrative structure that incorporates numerous sectors of the company. Therefore, Brambles can continue expanding its business activity provided it creates favorable conditions for innovation and sustainability including transformative practices. References Amini, M., & Bienstock, C. C. (2014). Corporate sustainability: an integrative definition and framework to evaluate corporate practice and guide academic research. Journal of Cleaner Production, 76, 12-19. Benn, S., Dunphy, D., & Griffiths, A. (2014). Organizational change for corporate sustainability. Routledge. Brambles. (2016). 2016 Sustainability Review: CHEP and IFCO. Retrieved from http://www.brambles.com/sustainability Brambles. (2017). Homepage. Retrieved from http://www.brambles.com/ Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835-2857. Goyal, P., Rahman, Z., & Kazmi, A. A. (2013). Corporate sustainability performance and firm performance research: literature review and future research agenda. Management Decision, 51(2), 361-379. Hörisch, J., Schaltegger, S., & Windolph, S. E. (2015). Linking sustainability-related stakeholder feedback to corporate sustainability performance: an empirical analysis of stakeholder dialogues. International Journal of Business Environment, 7(2), 200-218. Khan, M., Serafeim, G., & Yoon, A. (2016). Corporate sustainability: First evidence on materiality. The Accounting Review, 91(6), 1697-1724. Lourenço, I. C., & Branco, M. C. (2013). Determinants of corporate sustainability performance in emerging markets: the Brazilian case. Journal of Cleaner Production, 57, 134-141. Read More