Question:
In "The Responsible Business" responsible actions evolve organically from the systemic engagement with all five stakeholders, which is an inevitable consequence of the appropriate use of the pentad.
Think of a business and its products, briefly describe how you would invite and engage each stakeholder group to the pentad process in regards to a sustainability initiative.
Answer:
Consider a car manufacturing business which is traditionally into manufacturing vehicles that run on fossil fuels. Due to the various concerns related to global warming and climate change, the business now intends to get into manufacturing on battery powered vehicle. Additionally, there is a small shift in thConsider a car manufacturing business which is traditionally into manufacturing vehicles that run on fossil fuels. Due to the various concerns related to global warming and climate change, the business now intends to get into manufacturing on battery powered vehicle.e consumer preference with regards to demand for cleaner vehicles that are environmentally friendly. In order to respond to the changing consumer preferences and the concern for environment, the company aims to launch a sustainability initiative where it aims that within five years of the launch, it has to ensure that 10% of the sales are generated from the sales of such vehicles that do not operate on fossil fuels. In order to ensure that the sustainability initiative is successful, it is imperative to deploy the stakeholder pentad framework as outlined below.
- Customers – For the sustainability initiative to be successful, it is imperative that the requisite demand amongst the customers exist who would be eventual users of the product. Thus, feedback needs to be obtained from customers in relation to their preference for cleaner vehicles that are battery powered or run through other renewable energy sources. Besides, a market research amongst existing users of such vehicles be carried so as to understand their experience coupled with the shortcomings and limitations of these vehicles which the company would aim to resolve. Also, based on their feedback and the expected sales trend for the other manufacturers, a prudent decision needs to be made so as to ensure that the product is superior and has market demand.
- Co-creators – There are a plethora of people who would be involved in ensuring that the project envisioned by the company is eventually accomplished. A crucial role in this regard is paid by the employees particularly the engineers, designers, research and development team who based on the input from the consumers must analyse if the desired end product is feasible or not. Feasibility has to be both in financial and technical terms. Besides, the role of suppliers is also pivotal as for an automobile manufacturer, the support of the ancillary suppliers has to be present. Discussions need to be held with suppliers on the overall design and supply of parts so that the desired end objective is met.
- Earth- The planet and the environment continue to be valuable stakeholders in the various businesses activities. For the responsible businesses, it is pivotal that the actions should consider an impact assessment on the environment and aim for a healthy relationship with nature. The current initiative envisioned by the company aims to rectify the balance with nature which the fossil fuel emissions have managed to disturb. Hence, the given initiative by the company seems to be a responsible one and the impact on the same through decrease of greenhouse emissions can be measured so as to quantify the expected environmental benefit from the project.
- Community – The community primarily refers to the society in which the business tends to operate. The role of communities cannot be undermined for the success of the given project. This is because, the success of this project would essentially be dependent on the level of awareness amongst the people and society at large with regards to climate change and the potential implications of same for the world. Further, the role of automobiles and the exhaust fumes also needs to be emphasised as this would ensure a higher demand for such a product which will ensure that the company would be able to recover the high upfront development costs by being able to sell higher units at competitive prices.
- Investors – Investors or shareholders are the actual owners of the business and therefore any major action which the management may undertake must have the approval of the investors. The AGM or Annual General Meeting may be a suitable platform to seek the approval of the shareholders for this project. Besides, a statement in the annual report may be included which may be addressed to the shareholders’ so as to explain the rationale of the project from various aspects. It is apparent that the given endeavour is well planned and executed could propel the company going forward as there is increased demand for hybrid vehicles. Thus, through such sustainability initiatives the company would be available to garner some goodwill and also ensure that it does not lose out to competition that may venture into this field.
It is imperative from the above discussion that the support from each of the stakeholders is pivotal for the success of the sustainability initiative envisioned.
