two people are submitting this same assignment so i want to make major changes that teacher cannot recognize that we have submitted same assigment

“The external environment consists of a variety of factors outside your company doors that you typically don't have much control over” (Kokemuler, N., 2016). Three external forces that have influenced the company’s shift to more environmentally and socially responsible business management practices are demographic factors, environmental impacts, and government regulations.

Demographic factors, including changing preferences, social stigmas, and public relations may have been the factor that set in motion Interface’s shift towards more sustainability and social responsibility. In the video The Epiphany, Ray Anderson says that the question “what is your company doing for the environment?” sparked the drive within him to reassess how Interface was conducting business. He noticed that stakeholder preferences had shifted away from what had been considered the regular business standard, the drive of profit. The public was now focused on sustainability, and how day to day business was affecting society in the long term. Ray then challenged his company to “adopt a bold vision, one that required new thinking and a new model for business” (Interface, 2016) and this report will outline not only the other factors that influenced the shift, but the many ways in which Interface is evolving, all of which have contributed to the growth and development of the company in recent years.

Environmental impacts, including climate change and intergenerational factors, appear to be one of the most influential force for Interface and as such, Mission Zero was implemented: the goal of becoming a carbon neutral company by 2020. The goal has driven the creation and implementation of many environmental programs that have impacts on energy, climate, waste, facilities and transportation. Chart 1 outlines the fronts of what Interface has come to call Mount Sustainability, and outlines the goals and tasks associated with each of the fronts, and many of the programs have been developed to address one or more of the goals.

The energy programs are aimed at maximizing energy efficiency and using renewable energy resources to conduct day to day business, which is quite the feat for such a petroleum intensive industry. For climate, they have emphasized the importance of partnership and collaboration to measure and reduce emissions where necessary, and purchase carbon offsets where elimination is not possible. The waste programs at Interface have “gone beyond the walls of the factory to examine all aspects of our business for opportunities to reduce and eliminate waste, including product design, packaging and transportation” (Interface, 2016) and has led to a 91% reduction in total waste since 1996. Interface has adopted green building and operational standards worldwide to decreased the harmful effects of their business on the environment in the four continents they conduct business in. Interface has also reassessed how transportation, throughout the supply chain and internally at the facilities, are having an impact on the environment. Three programs were implemented to offset the environmental effects of internal transportation: Trees for Travel, a “program designed to track and neutralize the carbon emissions from employee business air travel,” Cool Fuel, a “program to track and offset carbon emissions from company car” usage, and Cool CO2mmute, a “program offering Interface employees the opportunity to neutralize the emissions from their daily commutes and personal travel” (Interface, 2016).

Although not explicitly described as a factor on the website, government regulations likely play a role in the shift to more environmental and socially responsible business. “The EPA has primary responsibility for enforcing many of the environmental statutes and regulations of the United States” (EPA, 2016) and has policies for air, compliance and enforcement, pesticides and toxic substances, waste, and water. Although not all these affect Interface, many of them do and in their actions to shift to their new model of business, they have reduced or eliminated many of the factors that would be affected by further government regulation. In most cases, a company is more likely to embrace changes, especially those that have taken place at Interface, when it is at their own will than when being forced to do so because of regulation or other government intervention. Interface appears to be ahead of the game in meeting environmental government regulations as discussed throughout this report, and has given them a competitive advantage in the industrial world.

Section 2- Internal force or influence

“The internal business environment includes factors within the organization that impact the approach and success of your operations” (Kokemuler, N., 2016). Two internal forces that have influenced Interface’s shift to more environmentally and socially responsible business management practices are Corporate Social Responsibility (CSR) and organizational capabilities and management preferences.

Corporate Social Responsibility factors like human rights, labour standards, the environment and ethical practices are just some of the key factors that Interface has focused on to set the stage for more socially responsible business management and are likely due to the influences they have on the shift towards being more sustainable and socially responsible. As a MNC, Interface conducts businesses in many countries around the world and needs to adhere to a diverse set of changing standards and regulations. “Interface supports fundamental human rights for all people, and is committed to complying with employment laws in every country in which it operates” (Interface, 2016). It also complies with labour standards in these countries, but has taken on the responsibility of maintaining the integrity of their labour standards in other countries by eliminating discriminatory practices and child labour in their factories in the countries in which they conduct business in. As mentioned above, their commitment to the environment has fostered a culture within the organization to embrace sustainability and socially responsible business practices. “Interface seeks to maintain accountability, integrity, and high ethical standards in the pursuit of the company’s business objectives. Interface engages in honest and ethical conduct to comply with applicable governmental laws, rules and regulations” (Interface, 2016). They have implemented a Code of Business Code and Ethics as well as a Supplier Code of Conduct to solidify their commitment to corporate social responsibility.

Management preferences is one of the most influential internal factors of an organization in motivating and driving improvements in the company’s strategic business initiatives and progression toward its sustainability goals. For Interface, the direction came from Ray Anderson who whole heartedly believed a shift towards more sustainable and socially responsible business practices was the right move for the company. In the video The Epiphany, Ray attributes the birth of the movement to feeling embarrassed when asked about what his company was doing for the environment and he did not have an answer. With that, he was inspired to change the way Interface conducted business and believed that they had the organizational capabilities to do so.

This affected all aspects of the business, including the design process, manufacturing, innovation and transparency. For the design process, Interface embraced “new thinking, like Biomimicry, [that] offers a fresh perspective on product design, while analysis tools like Life Cycle Assessment (LCA) provide valuable information on [their] products’ impacts. [They’ve] also developed strategies for dematerialization and the use of recycled materials to reach [their] goal of sustainable products” (Interface, 2016). For manufacturing, raw materials, water use, and the supply chain would see the most change. “Interface has drastically reduced its water use through process changes and fixture replacement” (Interface, 2016) and is currently seeking alternatives for petroleum-based raw materials. They have also educated their suppliers on their Mission Zero goal through supplier summits which has “resulted in solutions ranging from small steps to reduce climate impacts to new and innovative technologies that increase the recycled content of [their] products” (Interface, 2016).

Section 3- Global impacts of Sustainable Development

One potential global impact of the sustainable development initiatives of Interface Global is expressed explicitly in their values and guiding principle: “To be the first company that, by its deeds, shows the entire industrial world what sustainability is in all its dimensions: People, process, product, place and profits — by 2020 — and in doing so we will become restorative through the power of influence” (Interface Global, 2016). Influence and social pressures go a long way in the current age of business and with all the innovative products and research and development, Interface has truly differentiated itself in the tile and carpet business, but also in the industrial sector. This plays greatly into demographic factors, like the ever-changing preferences of consumers and social trends that constantly challenge businesses to adapt, and have certainly given Interface a competitive advantage in many areas of their target market. These actions will likely encourage other businesses around the world to revaluate how they conduct business and better understand not only the negative external effects, but the benefits of conducting business in a more environmentally sustainable and socially responsible way.

In Activity 3-3 we were asked to consider if the initiatives were serious or just a public relations strategy, and my response was: “based on the scale of changes that Interface has seen in the past years, the number of programs in practice, and how rapidly these changes are seeing an impact on the company meeting their lofty goals, I believe these are serious initiatives before they are a public relations strategy, although the seriousness of the initiatives contributes to the latter nonetheless” (Armstrong, D., 2017). After further research to complete this assignment, I still feel like Interface is serious and passionate about their goals and initiatives.

Section 4- Harnessing technology for Sustainable Development

Interface attributes its sustainability successes to innovation and claims that their “commitment to Mission Zero has fostered an entrepreneurial spirit inspiring innovative thinkers to imagine unique solutions.” This is prevalent in their business decisions and operations and is shared with the world using the Internet. Interface has a great, comprehensive website that has information on the company, their products, sustainability, and investor relations, and the Founder and Chairman, Ray Anderson, uses the space to share his story and company successes.

Innovation in infrastructure has attributed to the development of several LEED certified Interface buildings around the world, including Chicago, China, and Thailand. “Leadership in Energy and Environmental Design (LEED) certification system, [is] a third-party certification program that awards recognition for high performance green buildings” (Interface, 2016). Innovation in production process has resulted in the adoption of several projects and products that have helped foster the push towards sustainability, and include Entropy, Tactile, Net-Works, and Cool Carpets. Inspired by Biomimicry, “the unique pattern and coloration of Entropy tiles results in less manufacturing waste and allows for non-directional installation, which is much faster and less wasteful than traditional floorcoverings” (Interface, 2016). Tactile are small adhesive squares that eliminates the use of glue when installing carpets. “The result is less waste, low VOCs and greater savings, not to mention an environmental footprint that is over 90% lighter than that of traditional glue adhesives” (Interface, 2016). “The Net-Works program sources fishing nets from coastal areas, cleaning up oceans and beaches while creating financial opportunities for people in impoverished communities” (Interface, 2016) that has enabled Interface to close the loop for sourcing raw materials for use in the production of their carpets. Lastly, “Cool Carpet is the world’s first carbon neutral carpet” (Interface, 2016) and is achieved by purchasing and retiring carbon offsets each year based on measurements by a third party. These are just some of the many ways that Interface is using the Internet and other technologies to move toward sustainable business and development.

Mount Sustainability (Interface, 2016)

Goals and task

1. Eliminate waste- Eliminate all form of waste in every area of business.

2. Benign emission- Eliminate toxic substances from products, vehicles and facilities.

3. Renewable energy- Operate facilities with 100% renewable energy.

4. Close the loop- Redesign processes and products to close the technical loop using recovered and bio-based materials.

5. Resource Efficient Transportation- Transport people and products efficiently to eliminate waste and emissions.

6. Sensitive Stakeholders- Create a culture that uses sustainability principles to improve the lives and livelihoods of all of our stakeholders - employees, partners, suppliers, customers, investors and communities

7. Redesign commerce- Create a new business model that demonstrates and supports the value of sustainability-based commerce.

Reference-