Lecture 9 - Sustainability and Fair Trade

Question 1

What is sustainability

Answer 1

• Need for organisations and individuals to become “green” and adopt policies which protect environment, save energy and benefit society as a whole
• Key part of Corporate Social Responsibility
• Some is self-regulatory and some is enshrined in law
• Theres more pressure from political and pressure groups for businesses to adopt more sustainable business practices
• Increasing with more political pressure
• Businesses need to do it

Question 2

The three main objectives of sustainability

Answer 2

• Economic growth
• Environmental protection
• Social Equality

Question 3

Sustainability policies

Answer 3

• Initiatives in the workplace to reduce electricity consumption
• Use of recycled materials
• Recycling where appropriate
• Energy saving devices introduced
• Use of materials from a sustainable source

Question 4

Financial implications of Sustainability

Answer 4

Saving money

A business that runs fleet of fuel efficient vehicles will have lower fuel costs and receive tax benefits for using low emission vehicles

The policy of charging consumers for plastic bags – this has dual effect of providing extra income for business while at same time reducing costs of purchasing bags

Additional Charges

• Ordering packaging made from recycled cardboard and plastics which are more expensive
• Recycling packaging used on deliveries from suppliers
• Complying with regulations which require modifications to products to make them more environmentally friendly

Question 5

Sustainability and Social Equality

Answer 5

Worldwide and National Communities

• Sponsoring events to raise funds for charitable causes

Local community

• Providng work experience placements
• Sponsoring local events
• Donations to schools

Organisation

• Supporting employees through a profession qualification
• Contributing to employee social events

This is an extension of CSR and becoming more required as society becoming more interested and demanding of sustainable business

Question 6

Sustainability and Fair Trade

Answer 6

• Fairtrade enables more secure and stable incomes for small-scale farmers, and supports them to build strong, resilient businesses.
• Fairtrade is only ethical standard workingon both ends of supply chain towards goal of sustainable consumption and production patterns.
• Fairtrade promotes climate resilient agriculture through its standards and programmes to protect environment and biodiversity.

Examples:

• Fairtrade Minimum Price is a safety net for 1.7 million farmers and workers in more than 75 countries, protecting them from volatile markets and ensuring they can better cover their cost of sustainable production (2019).
• Fairtrade Premium enables rural communities to invest and advance other Global Goals. More than €500 million of Fairtrade Premium has funded schools, healthcare and clean drinking water.

Question 7

Initiatives of Fair Trade

Answer 7

• Workers receive a Fair-Trade minimum wage
• Environmental sustainability upheld
• Safe working conditions
• No forced or child labour.
• Premiums given to producers based on product they create
• These premiums go to communal fund to be used for development projects
• Supply chain is transparent to consumers

Question 8

Benefits of Fair Trade

Answer 8

Though more expensive in short term, fair trade more sustainable practices will allow businesses to be seen to be more corporate responsible and hence position themselves more favourably to customer of future.

If companies dont evolve and embrace fair trade, sustainable practices they will soon find themselves looking unethical in Business Environment and going out of business.