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Chapter 3-Sustainable operations
Unlike other companies we’ve looked at so far, Target describes its “stewardship”
practices. What work does Target report doing that fits this designation?
Choices
Although Target doesn’t have its own fleets for delivery, it has joined the EPA’s
SmartWay Transportation Partnership to study its carbon footprint and how to reduce it.
Target diverted 75 percent of waste from landfills by reusing and recycling. It also
works with packaging designers to reduce the waste in its products.
Rather than creating new buildings, Target works to reuse buildings that are already
established and functional.
Correct. Target is focused on responsible growth, reusing existing buildings that are
close to homes, offices, and public transportation.
MULTIPLE-CHOICE QUESTION
According to the webpage above, what is the main focus of Target’s sustainability
efforts?
Choices lowering emissions increasing
employee workplace safety
increasing use of green energy
Correct. Target has pledged not only to lower its greenhouse gas emissions but also to
require that its suppliers lower their own greenhouse gas emissions.
MULTIPLE-CHOICE QUESTION
When an audit is conducted, what is the desired end result?
Choices a report and certificate confirming compliance with certain
standards an understanding of new options for more sustainable supply
chains a report documenting the results and the auditor’s personal
experiences Correct. With certification, a business can be more
competitive and allowed to participate in certain supply chains.
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MULTIPLE-CHOICE QUESTION
What should a company do if it wants to ensure that its supply chain is working
responsibly and that all the products used in the chain come from vetted sources?
Choices
Personally conduct an audit of the supply chain.
Hire a third-party certification provider to conduct an audit of its supply chain.
Ask the company’s supply chain partners to get audited and provide their audits to
the company.
Correct. A third-party certification provider can help a business to understand what
sustainability means to the company so they can base the audit on the most appropriate
standards and certifications.
MULTIPLE-CHOICE QUESTION
Which of the following is mentioned as a particularly important skill for auditors when
working in the field? Choices teamwork skills math skills
foreign language skills
Correct. Auditing supply chains sometimes requires traveling to places where different
languages are spoken, so foreign language skills are extremely useful for auditors.
When a company wants to develop its own unique framework or standards, what does
everyone involved need to understand first?
Choices the ultimate goal and what sustainability means to the
company the types of information that needs to be collected and
assessed
the implications of the decisions that hinge on the results of the effort
Correct. After everyone involved understands the ultimate goal and the meaning of
sustainability, the company can develop a list of items to assess.
MULTIPLE-CHOICE QUESTION
In which of these situations might a company feel strongly about including a
consumerfacing verification label on a product?
Choices
when the contents of the product in the package are more sustainable than they
used to be when a company and its supply chain is fully
certified
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when consumers are aware of and concerned about particular issues in the industry
Correct. When there are concerning issues happening in supply chains and consumers
are aware of those issues, companies need to respond appropriately and informatively
to give the public confidence that the company is being transparent and trustworthy.
MULTIPLE-CHOICE QUESTION
What led to the transformation of the coffee sector?
Choices
The industry formed a task force to plan the transformation.
Competing coffee companies started to collaborate.
Smaller farms started to learn about certification.
Correct. When competing companies started to collaborate, supply chain members had
to comply with the requirements because they became the new normal for the entire
industry.
MULTIPLE-CHOICE QUESTION
Why does greenwashing not work in the long term?
Choices because greenwashing results in marketing messages that are not
memorable
because sustainability initiatives require collaboration between a company and their
competitors
because sustainability initiatives need to be genuinely related to the company’s core
values
Correct. To be perceived as authentic and not manipulative, a company has to have
genuine connections between goals, core values, sustainability efforts, and marketing
messages.
Sustainability initiatives have inherent value in their benefit to the
environment and the future of the planet.
2 MULTIPLE-CHOICE QUESTIONS
Question 1
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Businesses don’t often connect environmental sustainability with employee productivity.
What does the article say about the relationship between these two components?
Ch oices
Going green can allow your company to attract new clients and suppliers.
Practicing environmental sustainability reduces government regulatory interventions.
Questionable environmental practices lower productivity.
Correct. When a company has questionable environmental practices, productivity can
be affected by lack of pride or by explicit labor actions.
Which of the following is a significant benefit of sustainable business practices to buyers
and/or sellers?
Choices
Sustainable business practices influence customers to pay more for goods and
services.
Sustainable business practices can reduce costs.
Sustainable business practices simplify oversight of the supply chain.
Correct. When people pursue more sustainable business practices, they can often
identify inefficiencies and find better ways to do things. This leads to reducing cost,
which leads to lower prices and/or increased profit.
For many businesses the opportunity to pursue sustainability is complex.
The potential upside is clear, but the realization of benefits is not easily
attainable. In some cases, the costs and risks can be limiting or
prohibitive.
According to the article, what was the primary limit on Walmart’s ability to provide more
sustainable products? Choices
Walmart shareholders had no interest in sustainability.
Walmart customers were not willing to pay more.
Walmart suppliers were not willing to engage in sustainable business practices.
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Correct. The evidence suggests many customers lacked the desire, or the means, to
pay more for a more sustainable product.
MULTIPLE-CHOICE QUESTION
Which of the following is the BEST example of a sustainable response to a common
business decision?
Choices choosing to enter a new market
choosing a new supplier with a lower cost
choosing to use renewable energy sources
Correct. Businesses use energy every day, and using more renewable energy is a
sustainable response.
To adopt the embedded view companies need to consider four points:
• Thresholds are best set through muti stakeholder initiatives
• Sustainable companies employ both incremental and radical
innovations
• The pathway to true sustainability is nonlinear
• Companies widely influence sustainability
• 2 MULTIPLE-CHOICE QUESTIONS
• Question 1
According to the author, the triple bottom line is based on which view of
sustainability?
Choices
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• the embedded view, which connects a company’s performance to its place in the
environment
• the incremental innovation view in which small, steady changes add up to
substantial change
• the integrated view in which the dimensions are interrelated and equally
important
• Correct. In applying TBL, companies look for areas where dimensions overlap or
where they reinforce each other.
Stakeholders is any group, individual or community that has an interest in a company or
its actions.
Stakeholders can be internal or external to the business
Decisions are best made with consideration of the impact the decisions will have on the
stakeholders
MULTIPLE-CHOICE QUESTION
What is a stakeholder?
Choices any person or group who is potentially impacted by business decisions
any person or group who advises business leaders on how to make decisions
any person or group who helps a business establish priorities
Correct. It is precisely because they will be impacted by these business decisions that
all such groups are stakeholders.
