Sustainability of Seventeen Event Company - Essay Example

 Sustainability of Seventeen Event Company Introduction As the world economic trends are changing to reflect a growing middle class and shifting consumer patterns; there is a heavy debate going on about the current level of mass consumption and resource depletion being practiced in the developed as well as the developing regions. Development of human economy and consumption growth cannot be sustained without the increasing use of resources- both renewable and non-renewable. However, it is also a fact that these resources are limited in volume and the ever growing demand for them means that humans have to create innovative and more efficient structures and processes in order to create sustainable business practices that will protect and preserve the earth’s resources for the generations to come. As a concept, Sustainability can be defined as the “the growing concern for the environment and natural resources, though...[it]...has also had increasing resonance in social and economic issues.” (Mowforth and Munt,2009, p18). Academic, political and economic circles have begun to seriously consider the implications of unrestricted economic growth on the already stretched resources of the earth. The agenda is motivated by the understanding that the planet may not be able to cope up with the demands of the growth unless drastic measures are taken to support the processes with more environmentally friendly practices and technology. The burden of change in this area falls largely to businesses and economic groups as they are the main consumers of many of the natural, human and financial capital resources available currently. While governments and lobbying groups can provide much needed direction and policies to guide the businesses towards sustainable practices; inevitably it is the businesses themselves that must show awareness and concern regarding the issue and make changes from the ground level as they have a greater reach and influence than any single consumer possibly could have. It is not surprising that societal expectations from both local and international stakeholder are now forcing businesses towards a higher level of accountability and transparency with regards to not just their financial performance but also their role as a social participant in economic, social and environmental development (Sherwood, 2007). While responses have varied, businesses especially in the consumer centric, western markets have responded to these responsibilities with efforts to be operationally eco-efficient, and incorporate social responsibility in their overall operations. This paper will attempt to review the business policies of one such business in the environmentally ambiguous industry of event management. Seventeen Events based in UK is a “sustainable event management agency” one of those businesses which do not use sustainable practices simply as part of their operations but have developed a business model around the idea itself. They describe themselves as a business that is focused on meeting their clients’ planning and execution needs to a high level of performance but this is all done through a rigorous sustainable approach that takes into account the business’s impact on various different stakeholders. Seventeen Event is not just concerned with responsibility towards their primary stakeholders i.e. clients, employees and suppliers but also the secondary stakeholders such as the community they operate in, society and environment. The company website lays out their sustainability policy which shows their dedication towards having best practices that allows them to “reduce the negative effect of what we do as much as possible, but more than that we seek to find ways in which to make a positive difference” ( SeventeenEvent1, 2014). The business practices and policies of seventeen Event can be scrutinized under the of the ‘Tripple Bottom Line” framework. The holistic framework is being propagated by experts as a viable tool to measure performance of any sustainable business by taking into consideration a number of different factors which highlight performance and returns to all stakeholders. The Triple Bottom Line: Literature Review In order to be declared as a sustainable venture an organization needs to be aware of and consider the potential impact of its operations on every relevant variable of environment that it operates in. The Bottom Line is a comprehensive framework designed by John Elkington in the mid 1990 to provide a tool to measure performance in corporate America keeping in mind the changing legislative and environmental landscape. The accounting framework goes beyond conventional measure of profit, return on investment, and shareholder value to integrate environmental and social dimensions in the calculations (Slapper and Hall, 2011, p4). Triple Bottom line (TBL) can be defined as a set of values, practices and procedures that firms can utilize to minimize the damage that their activities may cause to secondary stakeholders. Furthermore, these same values can also help the organization in creating value and innovation within the economic, social and environmental sphere that they operate in (Fredline et al, 2009). The TBL is a system that is held up by three main components, the 3Ps : Planet (environmental), People (socio-cultural) and Profits (economic). The framework does not ignore that one of the primary goals of any business is to create financial gain for the primary stake holders, but it also considers the needs of other stakeholders in the process. Ever since the framework was launched, interest in using the system as a viable measure of sustainable performance has been growing especially in the non-profit and government sectors, though the for-profit sector is also showing interest (Slapper and Hall, 2011, p5). The challenge with TBL is that it can be a complex system to use as the measurement of the different inter-related factors are usually unique to each organization of the industry that the organizations work in. Financial and economic performance can be easily measured through tried and tested models and indicators but social and environment performance cannot be easily quantified (Hubbard, 2009, p179). Though, there is support for the monetization of all used resources such as land, energy and water (and all relevant by products) as one concrete measure of a firm’s performance with regards to the environment, the social benefits or detriments (e.g welfare or environmental damage) still remain mostly subjective and some resist the monetization of these factors on philosophical grounds (Fredline et al, 2005). One method that is suggested by Slapper and Hall is to calculate TBL in terms of an index of factors, created for each individual firm but graded on a common scale. The index would ideally consist of Economic, Environmental and Social measures and contain guidelines for documenting and reporting the different factors. However, not a lot of businesses have completely incorporated such a measurement index in their operations audit. The most common organizational response has been to create a basic sustainable practices policy and publish a report on sustainability performance along with their annual reports. In the past research has shown a general tendency for firms to show positive bias in their TBL reporting, focusing only the on the few best practices to appease the primary stakeholders, more often than not these practices are not even integrated or synchronized with the official financial reports, acting simply for a patronizing effect (Hubbard, 2009, p181). The same is the case in the events management and tourism industry which has come under fire in the past few years for being an extravagant and wasteful industry, that often causes more harm to local social ecosystems than the economic benefits it provides. The significant growth in the organization of special events in both the tourism and corporate sector has led to discussions about the nature of sustainability that can be achieved within these business perimeters (Sherwood, 2007). While the measurement of the impact can be a tiresome process, a pHD research involving a broad analysis of 224 academic event evaluation publications and 85 actual event impact assessments made the effort to collate and design categories for the measurement of event management performance using the TBL approach. The research suggested that if implemented correctly, the TBL can provide helpful guidance and documentation for the businesses themselves but also establish a common set of comparative factors that can set a benchmark for sustainable performance. But at this point we have to consider whether the TBL approach can really help the tourism and event management industry in moving towards sustainable practices. Analyzing literature review on the model, my opinion is that the model does not go a long way towards supporting long-lasting sustainability. While it brings into focus the responsibilities a business has towards the society and environment at large, the first consideration is still given to economic concerns and profit making. The terms of the model are also ambiguous enough that any company can claim that they are following TBL in order to gain publicity and consumer support while only making superficial policy changes. This is also possible due to the fact that the model has not been specified through any common documentation or measurement regulations. It is a good concept overall but I do feel that it needs to be criticized upon its practical applications and support of the sustainability movement. It is also become a dated concept that cannot support the businesses in the new millennium and must be upgraded to provide more concrete guidelines. Seventeen Event Sustainability Policies Seventeen Event has provided a wide variety of documentation on their website to showcase their dedication and sincerity to the cause of sustainable business practices. Their extensive policy document is heralded as a guiding vision that keeps the firm operating on a specific direction. The management intends for its services and operations to be completely in line with their company values of Creativity, Sustainability and Transparency (Seventeen Event 1, 2014). They have a long term commitment towards improvement and developing a strategy that makes them the market leaders in their particular industry, as well as a bench mark for sustainable practices. The effectiveness of any sustainability policy can be judged from its long term and inclusive Impact based assessment. Seventeen Event is a ISO 20121 certified company and in order to uphold their values, the firm provides all relevant documentation regarding their practices for public view. The interest in event management programs led to the development of a new international standard, ISO 20121, formed through a collaborative approach that will regulate a systemic approach to sustainability in the industry (Jones, 2011). It is a flexible system which allows firms to apply for a certification through first, second or third party approach. Originally launched as BS8901 in November 2007, the standard is a major contribution towards encouraging sustainable best practices within the industry as it allows both consumers and business men to compare business operations in terms of sustainability and long term commitment to the cause. Seventeen Event’s policy document is not merely divided into discussing the 3Ps of TBL in a over arching method but provides detailed instructions about their sustainable practices in 17 distinct areas including Energy demands, Transport demands, Water, air, land use, Communication, Transparency, Culture as well as traditional measures of Financial returns and profits (SeventeenEvent, 2009). The policy dictates their actions with respect to these secondary stakeholder issues in both their day to day operations and the events that they host. The guidelines cover everything from small details like use of organic and fair trade materials during the events to the calculation and minimization of carbon-footprint created through travel plans for their clients. Seventeen Event is also unique in the sense that they are dedicated towards benefitting the community and environment through indirect influence as well. The firm provides a handbook for other event management firms to assist them in developing their own sustainable practices. Their platform “Eventberry” is a forum for all such concerned groups (suppliers, employees, firms) who want to collaborate and keep a track of their overall business, services and events impact. The paid platform is an effort to create awareness about the issues in event management industry and guide other business owners in achieving the documentation for ISO 20121 certification. The free 30 day trial is a sign towards their dedication towards the cause and their dedication towards creating a change in the industry. They also organize an annual one-day conference and maintain an active blog to discuss developments in sustainable practices and how the events managements industry can respond to new challenges (Seventeen Event 2, 2014). The company has been operating for seven years under the banner of sustainable business practices and is financially sound. Seventeen Event is a company that provides a good example of how sustainable practices can be utilized not just as a responsibility but as a unique selling point of its own. The company doesn’t state specifically that they utilize ‘Triple Bottom Line” framework, as their designed guidelines are clearly much better in fulfilling the sustainability requirements than those outlined by different researchers advocating TBL. (Hubbard, 2009). Their guidelines sufficiently address the 3Ps- Planet, People and profits, but go beyond the model by providing measurement guidelines and an integrated approach. The company management seems sincere in their efforts to get their ideas into mainstream use and can be a benchmark that other event management companies can use instead of TBL. Recommendations and Conclusion A critical analysis of Seventeen Event’s policy indicates that the company is indeed one of the few that is correctly utilizing the holistic framework for measuring their sustainability performance. A focus on fair and just business relations with their suppliers, industry peers and clients is a strong supporting point for their policy guidelines which create value for both their primary and secondary stakeholders. Their CSR activities provide support for local communities and economies as well as guiding the event management industry regarding sustainable practices. TBL framework is a part of their business system but is not mentioned in the exact terms. The one recommendation for the business is to try and expand their reach beyond just the event management industry. At this time the business is still a small influence in the industry even though their developed guidelines are among the most comprehensive ones available for use. Along with practical guidelines, there is still a need for creating awareness about the ideas of cost effective sustainability in the industry and as a benchmark organization Seventeen Event can act as a medium of communication through their established network. So far their conferences and guidelines focus on how sustainability can be practiced, they can make an addition in these resources focusing on why sustainability is required in the first place. Bibliography Mowforth, M. & Munt, I. (2009) Tourism and Sustainability: Development, Globalisation and new tourism in the Third World, 3rd edition. Abingdon: Routledge. Slaper, T. F. and Hall, T.J., 2011. The Triple Bottom Line: What Is It and How Does It Work Tanya J. Indiana University Kelley School of Business, Indiana Business Review, Spring 2011, pg4-8. Jones, M., 2011. Sustainable Event Management. IFEA’s ie: the business of international events Spring 2011, p12. Retrieved from: [Accessed 29 Sep 2014] Hubbard, G., 2009. Measuring Organizational Performance: Beyond the Triple Bottom Line. Business Strategy and the Environment, 19, p177–191. Sherwood, P., 2007.  A triple bottom line evaluation of the impact of special events: the development of indicators. PhD thesis thesis, Victoria University. Retrieved from: < http://vuir.vu.edu.au/1440/> [Accessed 29 Sep 2014] Fredline, E., Raybould, M., Jago, L., & Deery, M., 2005. Triple bottom line event evaluation: A proposed framework for holistic event evaluation. Paper presented at the Third International Event Conference, The Impacts of Events: Triple Bottom Line Evaluation and Event Legacies, UTS, Sydney. Seventeen Event 1., 2014. About Seventeen. Retrieved from: < /http://www.seventeenevents.co.uk/about-seventeen/our-services/> [Accessed 29 Sep 2014] Seventeen Event 2., 2014.Sustainablity. Retrieved from: < http://www.seventeenevents.co.uk/sustainability/sustainable-events-guide/> [Accessed 29 Sep 2014] Seventeen Event., 2009. Sustainability Policy. Retrieved from: < http://www.seventeenevents.co.uk/wp-content/uploads/downloads/2010/08/Seventeen-Events-sustainability-policy.pdf> [Accessed 29 Sep 2014] Read More