Although sustainable operations have many benefits for organizations, consumers,
Although sustainable operations have many benefits for organizations, consumers, and society, they also come with many business risks. In this discussion, you will explore sustainability operations of major organizations to reflect on what they are doing well, the benefits their sustainable operations may bring, and the potential risks associated with their sustainable operations. In evaluating the risks and benefits of prioritizing sustainability, you will also learn the importance of justifying organizational priorities, which will assist you in completing the first section of your course project.
First, take some time to explore a few different organizations’ sustainable operations statements on their websites. You may explore organizations you are familiar with or use the following:
Starbucks Stories
Select Social Impact from the navigation bar, then select from the story topics in the drop-down menu to explore the stories. Be sure to explore the Sustainability topic.
L’Oréal Group: Commitments and Responsibilities
Dixie Cares: An Eye Toward the Future
Peabody: Sustainability Approach
In your initial post, address the following questions:
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.
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?
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?
In your replies to at least two peers, contribute to the discussion by sharing the potential repercussions of not taking risks to prioritize sustainability. Examples of how you could contribute to the discussion include the following:
Provide examples of organizations that experienced the repercussions of not prioritizing sustainability.
Reflect on how you or people you know might react to organizations and products that don’t prioritize sustainability from a consumer perspective. Consider how factors such as age, geographic location, and finances might affect consumers’ reactions.
Name some specific impacts of not remaining competitive in the market based on what you learned from your reading in the Resources section.
Provide other reasons to justify prioritizing organizational sustainability.
Peer 1Madison Branham
Loreal is focusing on several areas by 2030 which include fighting climate change, managing water sustainably, respecting biodiversity and preserving natural resources. The targets set by Loreal for fighting climate change include 100% renewable energy for its sites by 2025 and by 2030, reduce by 50% on average and per finished product, the greenhouse gas emissions linked to the transport of our products, compared to 2016. Their goal to move towards managing water sustainability is in 2030, 100% of the water used in our industrial processes will be recycled and reused in a loop. To address respecting biodiversity, in 2022 Loreal reached 97% of new or renovated products had an improved environmental or social profile, that means they are eco-designed.
Loreal also touched on the fact that they are not starting from scratch with becoming more sustainable and are building upon existing practices and looking for ways to improve them. For example, In 2013, L’Oréal decided to address the core of its activity: the development of beauty products, its global sustainability program “Sharing Beauty With All’, announcing tangible sustainability goals towards 2020. As we have surpassed 2020, the following has been measured against that goal: In 2023, 96% of L’Oréal’s new or renovated products had an improved environmental and social profile.
By the end of 2023, L’Oréal had helped 37,284 people from disadvantaged communities find employment through its solidarity purchasing and inclusion programs.
I do think from a business risk perspective, it is worthwhile to continue to evolve into more sustainable ways of working and operating for the company. Not only do customers care how and where products are made that they purchase and how it is benefiting the planet, but Loreal is a beauty product brand. People now more than ever are paying closer attention to what ingredients are in products and what they are putting in or on their bodies so by investing in more natural and eco- friendly options, the company will be able to keep up with consumers expectations. Reference: L’Oreal. (2020, January 23). For the planet. L’Oréal. https://www.loreal.com/en/commitments-and-responsibilities/for-the-planet/
Peer 2 Kaitlyn BrownHi everyone!
I am choosing to analyze the sustainability operations of L’Oréal Groupe . L’Oréal Groupe is a cosmetic company which offers people the best of cosmetics innovation in terms of quality, efficacy, and safety (L’Oréal, n.d.) L’Oréal has committed to actions that are positively impactive to the environment as there are inherent environmental risks regarding pollution, and water and plastic waste. The company launched ‘The L’Oréal for the Future Program’ in 2020 to express the responsibilities and commitment toward solutions for environment issues. The commitments in this program are shown in measurable targets set for 2030:
Fighting climate change: Improving energy efficiency, their target for 2025 is to use renewable energy 100%.
Managing water: Targeting by 2030 that 100% of water used in processes will be recycled and reused in a loop (L’Oréal, n.d.) One practice for this priority was partnering with Gjosa to develop a low-flow shower head and developed a shampoo that is easier to rinse as part of the ‘L’Oréal Water Saver’ in 2021.
Plastic Waste: By 2025, the company targets a 100% goal of plastic packaging to be refillable, reusable, recyclable, or compostable (L’Oréal, n.d.)
While there are risks taken by performing these responsibilities, I do believe it is worthwhile from a business perspective. These risks may include higher operational costs for the company, challenges along the way, and missed goals compared to the given targets. However, the benefits outweigh the risks due to a better reputation for the company, consumer respect and loyalty, and of course, the positive impacts to the environment!
L’Oréal Groupe (n.d.) Commitments & Responsibilities. For The Planet (loreal.com