Management Theory and Practice Economic Factors

Question: Discuss about theManagement Theory and Practicefor Economic Factors. Answer: Introduction It is essential for the businesses to identify and management of different impacts related to social, environmental and economic factors as the changes have been taking place in the business environment. The adoption of different corporate responsibility and sustainability activities help companies to incorporate the value related to social, environmental and economic into their core strategy and operations. This facilitates in improving and managing of different business risks and opportunities to enhance the sustainability in terms of society and environment (Thauer, 2014). This report emphasizes on different activities adopted by the Billabong international and its effect on its stakeholders. Corporate Social Responsibility and Sustainability in Billabong International Billabong International has implemented social compliance programs from last 10 years for the purpose of setting expectations for social compliance in the people and brands of the company. The company has adopted environment friendly processes to provide eco-friendly products to its customers. Changes have been made in the business operations of the company as nowadays, youth focuses on cleanness of the environment due to which changes have been made within the organization (Crane, 2008). The company has engaged independent auditors for the purpose of auditing of different supply chain and manufacturing processes on the ongoing basis for the purpose of ensuring social compliance. The company takes corrective actions if it does not receive a satisfactory score by the audit process (Marshall, 2016). The company is engaged in bringing continuous improvement in its supply chain by involving employees in the supply chain in a direct manner. This helps employees to learn new knowledge and information required to perform their day to day operations. The company recycles different used products such as plastic bottles to develop a new broad short material. This helps in prevention of the plastic bottles in oceans and landfills. This in turn helps in keeping environment clean. The company has made the use of various recycled materials such as recycled rubbers, organic cottons and recycled polyester fibers to produce products such as premium quick dry lining, co branded t-shirts, sneakers and sandals. In addition to this, the company also makes donations to Sea Shepherd to save the marine wildlife by the way of organizing different campaigns (Vogel, 2007). Besides this, upgradation has been made in the Billabong stores by the use of energy efficient LED lighting, reduction in energy consumption and cooling loads from air conditioning. For the purpose of attaining environmental benefit, the company provides support to different environment groups by the way of initiation of the use of recycling programs, greater use of environmental friendly fabrics and fibers, reducing the use of packaging material. In order to increase the understanding of the climate change occurred at the global level, the company focuses on reducing the carbon emissions in the environment in order to implement different initiatives to analyse and understand climate change risk. The company has complied with the NGER Act that is applicable to carbon emission occurred in Australia only. There is an increase in the carbon footprint to 9864 tonnes in the year 2010-2011 as compared to 5769 tonnes in 2009-2010. There is an increase of 71% in the carbon footprint of the c ompany in Australia (Billabong, 2017). In order to reduce the overall carbon footprint of the company, some initiatives are taken by the company such as use of energy efficient lighting technologies. At the store level various environmental programs are operated such as use of video conferencing, recycling, phasing out of paper based purchasing procedures and reductions in packaging (Grnewlder, 2008) . Besides this, the company made investments in research and development to explore the use of new materials and fabrics for the design of the product in an environmental friendly manner. For this purpose, many of the products provided by the company to its customers are recycled in order to reduce the adverse environmental impact on the society and the workplace (Hopkins, 2003). The employees of the Billabong are working together and are engaged in carrying out different activities which helps in reducing the impact of the business activities on the environment. Besides this, employees are engaged in the decision making process and the management considers different ideas provided by the employees to reduce the adverse impact of the business operations on the environment as well as the society (Habisch, A. et al., 2005). The company has entered into agreements with third party organizations to adopt different activities which facilitates in saving the life of marine wildlife as there is an adverse impact of the business activities pursued by the company on the marine wildlife. The company makes donations and organizes campaigns to create awareness among the public to preserve the marine wildlife. In addition to this, adoption of such activities and investment in research and development to bring new technologies helps in attracting the investors to make inve stment in the company (Urip,2010). In conrtext to this, triple bottom line theory and stakeholder theory is appropriate. There is a need to build a balance between three responsibilities such as economic, social and environment sustainability. In case of Billabong , the company is able to maintain environment sustainability by reducing the carbon footprint and use of recycled products. In addition to this, the economic sustsinability is maintained through the investment in research and development in order to create environmental friendly technology in the products that facilitates in increasing the sales and profits of the company. The social sustainability is maintained by the company by providing eco-friendly and safe environment to its employees by establishing a communication network that help the employees to discuss their views and opinions with other employees in order to take quick decision. Stakeholder theory states that the company needs to dispose of its wastes in a manner that it does not have an adverse impact on its stakeholders such as members of the society, customers, suppliers and government. Stakeholders has a right to clean air and water. These stakeholders have a power that results in their contribution towards the company (Billabong, 2017). Conclusion It can be concluded that it is important for the businesses to take initiatives to preserve the quality of the environment by adopting different eco-friendly procedures which results in the reduction of the occurrence of low carbon footprint in the environment. It can be summarized that the Billabong International has adopted various practices such as use of recycled products and organic products as it helps in keeping environment clean and safe for the members of the society. References Billabong. (2017). Environmental Accountability. Retrieved February 11, 2017, from https://www.billabongbiz.com/phoenix.zhtml?c=154279p=environment Billabong. (2017). Our policies. Retrieved February 11, 2017, from https://www.billabongbiz.com/phoenix.zhtml?c=154279p=irol-SocialCompliance Crane, A. (2008). The Oxford Handbook of Corporate Social Responsibility. OUP Oxford. Grnewlder, A. (2008). Corporate Social Responsibility. GRIN Verlag. Habisch, A. et al. (2005). Corporate Social Responsibility Across Europe. Springer Science Business Media. Hopkins, M. (2003). The Planetary Bargain: Corporate Social Responsibility Matters. Earthscan. Marshall, S. (2016). Fair Trade, Corporate Accountability and Beyond: Experiments in Globalizing Justice. Routledge. Thauer, C.R. (2014). The Managerial Sources of Corporate Social Responsibility. Cambridge University Press. Urip, S. (2010). CSR Strategies: Corporate Social Responsibility for a Competitive Edge in Emerging Markets. John Wiley Sons. Vogel, D. (2007). The Market for Virtue: The Potential and Limits of Corporate Social Responsibility. Brookings Institution Press.