How did the organizations you explored address sustainability
concerns inherent to their industry, if at all?
For example, a company that manufactures plastic has inherent
environmental risks regarding plastic waste and pollution.
I explored L'Oreal and Starbucks. L'Oreal had a section about their
commitment to no animal testing, explaining that they have been a
pioneer in the development of synthetic human skin. Starbucks
specifically addressed concerns over dairy farming, acknowledging
that it is one of the most environmentally damaging parts of their
business. They spoke to their recent efforts to work with farmers to
implement more sustainable farming practices, but did not go into
detail about what impact those practices will have.
What other sustainable practices did the organizations you explored
identify as priorities, and what kinds of business risks may they be
taking on to prioritize those sustainable practices?
L'Oreal and Starbucks both wrote about packaging and the ways they
are working to reduce consumption. L'Oreal's committed to having
100% of their packaging be made from recycled plastics by 2030,
which is in line with many other companies' similar goals. More
distinctly, they have pledged to reduce the intensity of their
packaging by 20% by the same year, meaning that they will use 20%
less packaging overall for their products. This may require the
redesign of some of their products. Starbucks had less specific goals
but emphasized their initiative to promote reusable cups to their
customers.
Do you think that the business risks the organizations are taking to
prioritize their identified sustainable operations are worthwhile from
a business perspective? Why or why not?
L'Oreal's commitment to recycled and reduced packaging makes
good business sense because it actually reduces costs long-term.
Although more efficient packaging may be expensive to design, it will
cost less to produce and therefore benefit the company. In terms of
their public image, it does not seem that most consumers will pay
much attention to L'Oreal's environmental impact so they may not
see much benefit in this way.
Starbucks' image is much more tied into sustainability and social
responsibility, so their reusable cup initiative is more important to
promote. However, there seems to be less risk since customers have
to buy the reusable cups, offsetting the cost to Starbucks of stocking
them.
