The article “Disney and Other Companies, CFOs Help Drive Sustainability” delves into the subject of corporate sustainability practices and how they are increasingly becoming intertwined with new operational initiatives in creating a means by which factories and supply chains operate in a sustainable manner.
Jay Rasulo, the chief financial officer (CFO) and senior executive vice president of Disney, holds the post as the head of Disney’s corporate citizenship program. He explains that his dual role is a reflection of the current business environment wherein sustainable corporate practices are increasingly sought after by consumers and investors in the company that they patronize (Connor, 1). It is no longer enough that a company seeks to increase its level of profitability through expansion and product development; instead, it is now necessary to accomplish such tasks while being able to minimize the environmental impact of operations while maximizing its capacity to ensure ethical business practices.
This takes the form of companies making sure that the suppliers in their respective supply chains provide decent living wages to their employees and operate in a manner that result in lower carbon footprints. While Mr. Rasulo does state that such an endeavor would be difficult, it is still a necessary practice due to the current market environment in which many of today’s multi-national companies find themselves in.
When examining the contents of the article and its relation to the concept of “social responsibility of management”, it can be seen that the production processes of certain forms of technological output (i.e. consumer electronics, computer components etc.) do have an impact on the local environment which should be taken into consideration by an organization that utilizes corporate social responsibility as one of the foundations of their managerial practices. What must be understood is that the drive for faster, better and less resource intensive production processes that are currently being pushed by various companies, actually results in many of them choosing to utilize methods of production that have an adverse impact on the local environment.
While such a method of operation used to be the norm, greater awareness among consumers and investors alike has necessitated the need for a more socially responsible means of doing business. This can come in the form of reducing greenhouse gas emissions, implementing fair labor standards for workers in other countries and can even encompass something as simple as offering healthier meal options for consumers.
It is mentioned by Jay Rasulo that proper environmental management practices should be implemented by large enterprises due to the need to comply with ethical and moral standards of operation and the fact that an organization that engages in questionable environmental practices usually develops a negative public image (Connor, 1). While there are certain challenges to this approach such as an increase in the cost of operations, lower production capacity, and the need to implement more stringent methods in the company’s operational procedure, the fact remains that compliance to these ethical standards results in a better corporate image which resounds better with consumer groups especially when taking into consideration the growing focus on environmentally sustainable practices of industrial production.
Based on the information from the course, “Social Responsibility of Management”, and the information in the article, it can be seen that there is a current trend in corporate management wherein it has become increasingly necessary to implement environmentally sustainable production processes due to the current desire of consumers and investors alike to patronize a company that focuses on such practices.
Connor, Michael. Business Ethics. The Magazine of Corporate Responsibility, 2013. Web.