Solutions

Activity 1 Defining environmental performance

Discussion

You will likely have come up with a long and diverse list of areas that will probably have been influenced by the industry you are employed in (or which you kept in mind otherwise). It will be impossible to discuss all the areas you have come up with, so let’s look at two aspects that will likely have featured prominently on your list: pollution (the release of unwanted matter into the environment) and changes to the ecosystem (alterations in the local habitats or environments because of the activities of the supply chain). We will explore these two aspects in the following areas of the supply chain:

  • logistics activities
  • manufacturing and production activities
  • waste disposal activities

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Activity 4: Analysing external stakeholder influence

Discussion

Here are some of our thoughts:

Table 2 The potential impact of stakeholders (B)

Stakeholder Potential impact
Supplier Depending on the nature of the product or service, an unsustainable supply could cause inconvenience in sourcing a replacement, raise costs through limited supply, or threaten viability if the product was unique or commercially sensitive. Consider the impact if all of your logistics was carried out by a third party that became unsustainable.
Governments Governments under pressure may react in different ways. There may be tax incentives to attract business, tax levies to protect national interests, or incentives or levies to support initiatives or targets (climate change or emissions). At the time of writing, the tax position of Google in Ireland and the trading impacts of Brexit are yet to be fully established.
Customer/consumer Some of the ethical issues in the previous section could impact on the willingness of customers to trade with an organisation. The sustainability of the market could impact on the sustainability of the supply chain; without demand for the product or service, there is no supply chain.
Society Peer pressure cannot be underestimated, as any parent queuing up at Christmas to buy the latest ‘must have’ toy that is running out of stock will know. Society can have a massive impact on demand, both positive and negative. Society as a whole tends to operate on perceptions rather than reasoned fact.
Competitors It may seem strange to include competitors in the list of stakeholders, but the sustainability of the competition could have a major impact on the organisation. Consider the impact of a major competitor going out of business – this could increase opportunities for the organisation but could also drive up prices, leading customers to seek alternatives that may damage the market in the long term. Conversely, a significant success of a competitor may eat into market share but could also be a catalyst for the development of the market.

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