Sustainable Business Management assignment evaluating amazons risk management techniques
Task: how to assess Amazons risk management strategy using Sustainable Business Management assignment research methodologies?
This Sustainable Business Management assignmentresearch shows today the businesses and organisations all around the world are concerned about sustainable development. The organisations are trying to improve their operations and processes so that they harm the environment less and develop a sustainable business model. According to Reyes-Menendez et al(2020), sustainable business management refers to the process which involves operations being carried out in such a manner which recognises the resources which are limited yet valuable. The resources need to be managed effectively so that they sustain and also facilitate building value for the stakeholders who are interested in or contribute towards the organisation. The management of an organisation should incorporate the attributes of sustainability that not only benefit the local community and environment but also increases the profitability, leads to better staff morale and improves the recruitment. In this Sustainable Business Management assignment, the sustainable development, use of CSR and potential risks and benefits of sustainable business for Amazon and other organisations would be discussed. The circular economy and its implementation would be analysed. The paper will also make certain recommendations keeping the sustainable development goals (SDG) in mind.
Sustainable Business Management
Sustainability Challenges of Amazon
Amazon as discussed in the previous Sustainable Business Management assignmenthas been facing certain challenges which are a threat to its sustainable and long term business. Carbonisation is a serious problem for Amazon. The company has been emitting huge amounts of carbon dioxide through its business operations, which is hindering its sustainable development. Due to excess demand created by pandemic, Amazon increased its number of warehouses which aggravated the carbon footprints. Commitment towards employees and suppliers is another grave issue for Amazon. Amazon is infamous for its poor consideration of the employees and suppliers. The company pays low wages to employees compelling them to quit their jobs and fails to satisfy the needs of their suppliers. The company even failed to secure their employees and suppliers during crisis periods like that of the pandemic (Rikap, 2022). The company has poor focus on crisis management. Though Amazon aims at developing a sustainable business, they failed to handle the crisis of Covid-19. They invested least in crisis management and protection of seasonal associates and business partners. The company started a relief fund but hardly gave sufficient coverage to the employees and suppliers. During the crisis period of pandemic, Amazon concentrated on competition, profit and market share rather than well-being of its people. Amazon also lacks the consent about customer sustainability. The company earned good profits during 2021. However, the customers complained of wasteful packaging. Amazon did not take necessary measures to address this issue. Rather they neglected it and continued with improper and poor quality packing, obstructing sustainable development. Management of business ethics has been another challenge to their sustainability in business. Amazon has poor business ethics which do not satisfy the stakeholders or their equity, safety, health, security or well-being (Brown, 2022). The Sustainable Business Managementassignment shows the company even fails to offer its employees safe work environment and culture, indulges in maltreatments and lacks basic business ethics. Be it equality among workforce or paying suppliers on time, Amazon lacks these ethics of work.
Measures to enhance Sustainability Strategies
Amazon has adopted decarbonization of green technology as a measure to enhance sustainability strategies. Decarbonization mostly takes place from deploying renewable energy that are supplied directly to customers. As a result, to diminish carbon emission, carbon capture as well as bioenergy are combined together (Mallouppas and Yfantis, 2021). Amazon should also provide importance towards commitment for employees as well as suppliers. The company believes that commitment itself involves an emotional element. Commitment towards employees is provided in the form of value provided to employees such securing their jobs and impartial compensation. This in turn will act as a measure that will enhance sustainability strategies (Alves et al., 2020). The Sustainable Business Management assignmentresearch shows the establishment of a proper business ethics will act as a major driver enhancing sustainability strategies. This includes impartial payment, rewards, recognition as well as employee and suppliers’ security policy. The company should provide a way that will report breaches in a confidential way. Crisis management initiative or CMI is also a measure that helps to enhance sustainability strategies. It works to resolve conflicts that takes place in an independent organization. It aims to create a sustainable peace throughout the globe (Booth, 2015).This will help Amazon to emphasise on welfare of individuals who are going through a crisis time.
Circular Economy and Implementation
According to Prieto-Sandoval et al (2021), the circular economy is a creative and innovative approach for carrying out business which can enhance both profitability as well as sustainability. The circular economy would facilitate an organisation to practice business which is regenerative and restorative. The circular economy is completely against the corporate agenda which makes it wasteful. Amazon or any other organisation can implement the circular economy for reducing their waste generation, mitigating effects of pollution, keeping materials and products in use and creating natural systems that are regenerative. As per Droege, Raggi and Ramos(2021), the circular economy not only benefits the environment but also intends to improve the competitiveness of the business by identification of resilience and cost savings, enhancing relationships with customers and suppliers, meeting sustainability commitments and working towards preventing climate change. The circular economy as opined by Chen et al (2020) is capable of generating around 4.5 billion dollars value by the end of 2030. Thus, businesses adopting circular economy are delivery greater returns than their competitors. Amazon can implement circular economy in its business. They can ask suppliers or partners to promote and sell recycled materials. These recycled or organic items are highly in demand and come with a premium price. The company has to execute procurement and equipment updates from a circular economy perspective. Using remanufactured and refurbished components as well as equipment, could come at a lesser cost than new ones and also foster sustainability (Guerra-Rodríguez et al, 2020). The reuse or recycling facilitates emission savings as well as generates least material waste. Amazon offices could focus on prolonged equipment life through installation of monitors and sensors that would reduce the downtime, while making maintenance predictable. Circular economy implementation would help Amazon to reduce the total ownership costs and enhance the production schedules.
Sustainable Business Management assignmentCSR usage
As stated on this Sustainable Business Management assignment, the corporate social responsibility (CSR) could drive sustainability. The organisations, today are using their CSR for increasing their social capital as well as for attracting the customers, supporting green initiatives. The companies can make the green changes in their operations and processes to gain a competitive edge in the market and a better reputation in the community. CSR aligned to sustainability goals could make a business and kits products more marketable, enhancing their social power. Thus, public image is a motivation for CSR. The CSR while driving sustainability also brings along wealth, money and conformity along with public image and social power. These also generate values which encourage and motivate the stakeholders of the organisation. The CSR and sustainability together would help Amazon to improve its stakeholder value as well as deliver measurable outcomes to the society as a whole. CSR is not only about environmental protection, but also about building capacity for sustainable livelihoods. As per Madanaguli et al (2022), the companies which are socially responsible nurture positive brand recognition, attract the top-tier employees and enhance the customer loyalty. These factors have the potential of generating financial success and long term stability of business. Amazon by implementing CSR could grow more sustainable. They will become more socially responsible reducing carbonisation, using renewable energy, being ethical towards employees, etc. The employees will also change their work and lifestyle to adapt sustainability. The employees who are responsible would turn off devices, lights and ACs after use, reducing misuse of power. This is also a step towards sustainability.
Sustainable Business Management assignmentRecommendation
• It is recommended for Amazon to utilise 5RS that includes refuse, reduce, reuse, rot and recycle. This particular initiative will help to diminish garbage as well as waste from the society. As a result, the overall carbon footprint will get reduced through this policy.
• It is also recommended that as a part of sustainability, Amazon should exempt using biodegradable plastics. This is because biodegradable plastics do not persevere in the environment.
• The requirements for recycling as well as recovery is highly recommended for Amazon. In other words, to accomplish SDG the company should at leastshift towards using plastic packaging that is disposable.
• The amount of virgin plastic materials should be reduced by Amazon by producing lighter as well as stronger plastics. It should also shift towards using more effective packaging techniques.
• The methods of natural degradation should be prioritised by manufacturing biodegradable plastics. This will lead to sustainable green packaging that will help to accomplishzero carbon footprint by the year 2030.
Present &Potential Future, Risks & Opportunities for Businesses
The most potential risk for a business in the future identified on this Sustainable Business
Management assignment is likely to be financial risks that includes sudden financial loss. Without proper cash a company might get involved in a possible financial risk. This includes both credit as well as currency risk for the company. Another major risk is compliance as well as financial risks that takes place if a company violates any rules regulated by the government. E-learning, consulting as well as e-commerce store owner is likely to be the probable opportunities for the business (Caza, Vough and Puranik, 2018). This will not only increase marketing for the business but will also form an alliance as well as help the business to enter new markets.
It can be concluded that the modern day businesses are getting increasingly concerned about sustainability of their businesses. This is because they have realised that sustainability makes a business more successful in the long run. Amazon has been facing several sustainability issues, including carbon footprints to lack of business ethics and more. There are measures which the company is taking to overcome these challenges. The implementation of circular economy would facilitate Amazon to reduce the harmful impacts it has on the environment, encourage the employees and suppliers to adapt to the sustainable changes in the operations and business model. At present and also in future, Amazon would be guided by their sustainable development goals. The Sustainable Business Management assignmentresearch shows there is huge scope for businesses to grow adopting sustainable business models, while the risk of sustainability is its initial instalment or implementation cost and lower profit margins in the short run.
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