The organization I am exploring in this discussion is Dixie. The sustainability concerns of this
company directly related to the paper-goods industry are tree conservation, recycling, and
water conservation.
Dixie states that for nearly a century they have “remained committed to ensuring the
continued growth and conservation of our natural resources—a responsibility we take
seriously.” (Dixie, 2022) Dixie breaks down their sustainability promise into four sections;
“One Tree Is Regrown For Every Tree Used.”
“We Use Virtually Every Part Of The Tree.”
“We Keep Track Of America’s Endangered Forests.”
“Sustainable Forestry Initiative® Certified Sourcing”
Summarized from above, Dixie replants every tree they use, they do not waste the trees that
they have sourced, they do not operate in forests that are struggling, and their wood is legally
sourced from around the globe. Dixie also mentions that they recycle most of the water that is
running through their mills so that the least amount is consumed. Some of Dixie’s products
can also be recycled such as clean plates and bowls, but cups can not because of their plastic
coating. (Dixie, 2022)
The business risks that I believe Dixie could be taking on with this sustainability program is
not doing enough innovation to spark interest. While it is amazing that Dixie goes above and
beyond with saving their non-renewable resources, trees, and water, that is almost expected in
business nowadays. Nowadays, where many consumers educate themselves on the
environment, it is a risk to pride themselves on sustainability when their most popular paper
product can not be recycled itself. This leads to another risk, which is that the company is
based on using a resource that could run out, because of the very industry that needs it to
survive. Will Dixie sell enough cups to not be able to keep up with replanting every tree?
I believe that Dixie’s risks are worthwhile from the business’s standpoint. Designing a
recyclable cup that performs just as well could end up costing more and lead their consumer
base to switch brands. The same goes to switching to a renewable resource, it would
completely change the brand.
Although I do believe there can be more added to Dixie’s sustainability plan, overall their plan
is a great start at developing sustainable business practices that will lead to growth within the
company over time.
The company I decided to research for this discussion is Dixie. Dixie is known for making
popular paper products; however, they are not as well known for their amazing efforts to help
the environment. Since the products Dixie sells use paper, they try to reduce their mark on
trees as much as possible. For example, they have the policy to “regrow a tree for every tree
they use, use every single part of the tree, and do not use wood from endangered forests.”
(Dixie, 2022). Most of the companies I studied had a similar social impact plan. They focused
on helping the environment and reducing the negative impact the companies produce in the
manufacturing and waste disposal part of the production.
Dixie is completely dedicated to helping the environment and you can see that with all the
initiatives the company pursues. “Dixie cups and plates are made with at least 80% renewable
plant-based materials.” (Dixie, 2022). Also, they make sure to have no polystyrene foam in
their cups and plates. All of these sustainable practices are amazing for the company; however,
they could lead to some negative results. For example, “Stronger environmental regulations
and increased costs, increased difficulty of raw material procurement due to climate changes
in production regions or resource-related disputes, and fewer customers if late in responding to
increased interest in ethical consumption.” (Seven, 2021).
Dixie takes big risks integrating these sustainable practices; however, the rewards from
implementing these practices outweigh the risks. For example, “Reduced costs from energy
conservation, reduced waste, recycling, and revised energy mix, more favorable corporate
image from promotion of environmental protection activities, and increased sales of products
oriented to ethical consumption and the environment; etc.” (Seven, 2021). The boost on
company image and increased sales should be enough by itself for the sustainable practices to
be worth it for any company trying to improve. c c
Patagonia is a well know outdoor clothing manufacturer, who uses a substantial amount of
plastic containing polyester and nylon in their products. I choose them because my family and
I are in the White Mountains of NH this week and it is cold! I am grateful for solid gear and
wanted to know more about the products we're purchasing. c
Mass distribution of plastic containing product is bad news for the planet because they don’t
break down and often end up pollution in our earth and oceans. Even so, Patagonia scores
151.4 by B Labs and made the “Best for the World” list in environment as well as community
in 2021. One of their main focuses is on products that last, are repairable and can be reused or
recycled. That means that while designing new articles of clothing Patagonia is also
considering what will happen when it is outgrown, becomes damaged, or is ready to be
discarded. They build in solutions to ensure each product is destine for a first, second, and
third life. The sustainability initiatives focused on reducing their plastic problem include trade-
in and resale program for their products, research and development on using recycled
materials (soda bottles), and the goal to only use recycled materials in production by 2025.
Other sustainability practices Patagonia engages in are:
Product guarantees, “Because we know prioritizing durability results in consuming less
energy, wasting less water and creating less trash” (Patagonia, 2022).
Supply Chain Transparency. “Everything we make has an impact on people and the planet.
Learn more about our environmental and social responsibility program” (Patagonia 2022).
Longevity of their product, “Buy used, trade in and fix your gear through Worn Wear”
(Patagonia, 2022).
Taxing themselves, “We’ve pledged 1% of sales to the preservation and restoration of the
natural environment” (Patagonia 2022).
With operations in Argentina, Australia, Canada, Chile, Japan, Korea (Republic of),
Netherlands and the U.S., coupled with over 1500 employees, supply chain management is a
tall order for Patagonia. “Supply chains today extend around the world and are vulnerable to
natural disasters and civil conflict” (Whelen, 2017). In addition to risks associated with
environmental factors, research and developing reusable materials that still yield a high and
desirable quality eats up a lot of cost.
The work Patagonia is doing is important and worthwhile. Climate change can create
disruptions in the supply chain through things like wildfire and water scarcity. By committing
to sustainability Patagonia is investing in the safety of their own future. The development and
implementation of manufacturing high quality products completely out of recycled materials
will lead the way for other companies, creating jobs as well as saving the planet.
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.
L’oreal is a cosmetic company with headquarters in France. The company prides themselves
on being committed corporate citizens. Among many sustainability concerns the company has
many commitments in place. Which include aiding the fight against climate change and
preserving natural resources. The company is currently working on reducing emissions with
the introduction of local renewable energy sources. This effort both helps climate change,
while preserving natural resources. The company has also addressed concerns amid animal
testing.
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?
I would say that L’oreal has made it a priority to maintain animal welfare. 14 years before the
European Union regulations banned animal testing, L’oreal had already stopped in 1989. This
raises the question of “How are products being tested?” and “Are they safe?”. The company
developed reconstructed human skin that they use to evaluate the behavior of cosmetic
ingredients. This was done to maintain animal welfare.
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?
The changes that L’oreal has implemented, and plans to implement seem to have a positive
effect on business operations. Consumers are becoming more and more aware of corporate
issues such as sustainability. In 2019 a global consumer survey showed that “just 35% of
respondents said they chose sustainable products to help protect the environment, 37% said
they looked for products with environmentally friendly packaging, and 41% said they avoided
the use of plastic when they could”( Emmert, Amy). This shows that consumers are starting to
make the change towards more sustainable products. And as mentioned, one of L'oreal's
commitments pertains to its packaging, which is a key concern for many consumers. Overall
by prioritizing sustainability, L’oreal can appeal to other target markets, while still
maintaining its current audience.
Emmert, Amy. “The Rise of the Eco-Friendly Consumer.” Strategy+Business, 8 July 2021,
https://www.strategy-business.com/article/The-rise-of-the-eco-friendly-consumer.
L'Oréal. “L'Oréal Group : Commitments & Responsibilities.” L'Oréal, L'Oréal, 23 Jan. 2020,
https://www.loreal.com/en/commitments-and-responsibilities/.
Patagonia Works. Certified B Corporation - B Lab Global. (2001, December). Retrieved
January 19, 2022, from https://www.bcorporation.net/en-us/find-a-b-
corp/company/patagonia-inc
PatagoniaWe’re in business to save our home planet. (2021, November 18). What we're doing
about our plastic problem. Patagonia. Retrieved January 19, 2022, from
https://www.patagonia.com/stories/what-were-doing-about-our-plastic-problem/story-
72799.html c c
Whelan, T., & Fink, C. (2017, June 1). The comprehensive business case for Sustainability.
Harvard Business Review. Retrieved January 19, 2022, from https://hbr.org/2016/10/the-
comprehensive-business-case-for-sustainability c c
Risks and opportunities related to sustainability: Seven & I holdings co. Material Issues, and
Main Risks and Opportunities. (2021). Retrieved from
https://www.7andi.com/en/sustainability/risk/
Sustainable Paper Products: Dixie®: DIXIE®. Dixie® Paper Products & Disposable
Dinnerware. (2022). Retrieved from
https://www.dixie.com/sustainability?utm_source=GOOGLE&utm_medium=cpc&utm_cam
paign=Cups+-+Non+Brand+-+Sustainability+-
+BMM&utm_term=+sustainable++companies&gclid=EAIaIQobChMIjpD5zaHD6gIVIgiIC
R0PkgjPEAAYASAAEgLTzPD_BwE&gclsrc=aw.ds
Sustainable Paper Products: Dixie®: DIXIE®. Dixie® Paper Products & Disposable
Dinnerware. (n.d.). Retrieved January 21, 2022, from
https://www.dixie.com/sustainability?utm_source=GOOGLE&utm_medium=cpc&
utm_campaign=Cups+-+Non+Brand+-+Sustainability+-
+BMM&utm_term=+sustainable++companies&gclid=EAIaIQobChMIjpD5zaHD6
gIVIgiICR0PkgjPEAAYASAAEgLTzPD_BwE&gclsrc=aw.ds
