Introduction
The past two decades have been characterised by an unprecedented rate of globalisation, technological developments, and competition, which have led to a remarkable revolution within and across organisations.
Despite the changes arising from the macro environment, businesses have to maximise their level of profitability.
This assertion highlights the need for organisations to develop sustainability, which entails balancing environmental, social, and economic factors that might affect an organisation’s long-term performance.
Devinney (2009) emphasises that sustainability has become one of the most important management agendas in organisations’ operations. However, one of the major challenges faced by organisations in their quest to achieve sustainability relates to climate change.
The aspect of climate change is quickly becoming an integral part of business operations, especially in the wake of global warming. Governments are increasing pressure on organisations to control their greenhouse gases emissions (GHG).
For example, Russia ratified the Kyoto treaty in 2004 (Hoffman 2005). In a bid to eliminate intervention from the government and other regulatory agencies, it is imperative for organisations to formulate effective climate change strategies.
Orlitzky et al. (2003) suggest that the long-term performance of business is influenced by the strategies set on market and nonmarket environments.
This paper evaluates two main aspects, viz. the role of HR in enhancing organisational sustainability in a large supermarket chain and an evaluation of climate change strategy in Toll Holdings.
Sustainability and human resource management
A strong relationship exists between organisational sustainability and the stakeholder theory. In the course of their operation, businesses have a responsibility to satisfy the interest of various internal and external stakeholders such as employees, shareholders, customers, the public, and the regulatory agencies.
In a bid to achieve organisational sustainability, it is imperative for businesses to ensure that the needs of external shareholders are met satisfactorily. Human resource management can aid an organisation in achieving organisational sustainability in a number of ways as evaluated herein.
First, an organisation can utilise its HRM tools, skills, and knowledge to entrench organisational strategy through partnering, engaging, and aligning. Businesses influence the society in which they operate in either a positive or a negative manner.
Porter and Kramer (2011) are of the opinion that an organisation has to create a set of effective share values between the society and the firm in order to enhance organisational performance.
In the quest to enhance their long-term success, it is imperative for firms to collaborate with the society, which can be achieved by formulating a comprehensive Corporate Social Responsibility (CSR).
Cohen (2010) asserts, “The Human Resource (HR) function is the key partner in embedding corporate social responsibility and sustainability initiative in any organisation” (p.34).
As one of the leading supermarket chains in the world, Wal-Mart is committed towards achieving organisational sustainability by enhancing its CSR. One of the areas that the firm has focused on relates to environmental pollution.
The firm has formulated a policy that will result in reduction in the volume of plastic shopping bag wastes in all its outlets. The firm intends to achieve this goal by incorporating reusable bags. Consequently, the firm will minimise environmental pollution.
Moreover, the firm ensures that it does not engage in activities that can result in overexploitation of natural resources, which is a critical element in positioning a firm as a socially sustainable company (Dyllick & Hockerts 2002).
In addition to environmental sustainability, Wal-Mart and Sam’s Club are committed towards providing customers with high-quality products. In a bid to achieve this goal, the firms ensure that their employees understand the organisations’ vision and mission.
Moreover, the firms are very concerned about understanding the employees’ interests. Thus, the firms’ HR managers are in a position to collaborate with the employees.
Developing a high level of engagement with external and internal stakeholders is another strategy that HR managers can adopt in their quest to embed sustainability.
Wal-Mart has integrated a number of engagement policies with various external stakeholders such as the Live Greener Working Group [LGWG] and environmentalists.
This collaboration assists the firm in understanding various issues such as poverty and resource degradation; hence, improving the effectiveness with which it undertakes managerial functions such as planning, organising, staffing, control, and directing.
The well-being of an organisation’s human capital is a key determinant in achieving organisational sustainability (Pfeffer 2010). Littig and Griessler (2005) posit that HRM can enhance organisational sustainability by enhancing its ability to develop a strong workforce.
Thus, effective employee selection strategy is vital. Some of the elements that should be considered in the selection process include teamwork and collaboration skills.
Moreover, it is fundamental for the HR manager to select employees who are characterised by a high degree of fit with the organisation.
Employee training and development is another major contribution of HRM in enhancing organisational sustainability.
Training employees contribute towards the development of a high degree of understanding and commitment of an organisation’s sustainability goals and values amongst the employees.
This aspect increases the degree of employee commitment and alignment towards the set organisational values hence improving organisational performance, as the employees have adequate understanding of their job roles.
In 2010, Wal-Mart formulated personal sustainability project through which it trained 1.3 million of its associates on sustainability. The training program has aided Wal-Mart in improving the associates’ morale and productivity.
In a bid to improve the employees’ capability successfully, it is imperative for an organisation to ensure that the training process is continuous.
Formulating and implementing a comprehensive employee training and development program can improve the degree of organisational identification.
The training and development program improves the employees’ perception with regard to the contribution of the organisation in their career path. This aspect reduces the rate of employee turnover, hence increasing the likelihood of achieving economic sustainability.
Pfeffer (2010) emphasises that job satisfaction minimises the rate of employee turnover. Therefore, the likelihood of the organisation developing a strong financial base increases.
Providing adequate managerial support and communication is another way through which an organisation can enhance organisational sustainability.
Nurturing an effective internal communication system is fundamental in enhancing development of sustainability behaviours amongst employees.
This goal is achievable via ensuring that employees are adequately informed about various issues affecting the organisation by integrating company-wide internal communication campaigns.
Frequent and effective communication between the top and the lower level of management assists employees in connecting with sustainability values.
An effective internal communication system will not only ensure that employees understand their roles, but it will also improve information and knowledge sharing amongst employees.
ASDA, which is a well-established retail chain in the UK, has developed an all-round internal communication system in its quest to sustain a high level of collaboration with its ‘colleagues’.
Sustainable leadership strategy should also be incorporated in an organisation’s effort to connect its employees with the organisational vision and purpose.
Moreover, it is also important for an organisation’s management team to ensure that the employees are concerned with agility, which can be achieved by preparing employees for any change that might emanate from the external environment.
Climate change strategy; Toll Holdings
Sources of greenhouse gas emissions in Toll Holdings
Climate change is one of the major challenges faced in the modern society. Its occurrence has diverse impacts on individuals, businesses, and the society. Firms that ignore the element of climate change do so at their own peril.
Consequently, it has become a key concern of various stakeholders, including businesses. Hoffman (2005) is of the opinion that organisations have a responsibility to ensure that their actions do not contribute to increment in the rate of climate change.
Consequently, it is imperative for organisations to incorporate optimal climate change strategies.
Businesses emit a substantial amount of greenhouse gases into the atmosphere, which stands out as one of the major factors contributing to climate change.
This aspect explains the rationale behind the need for organisations to integrate strategies that will lead to reduction in greenhouse gas emissions. Emission from vehicles and other modes of transport is one of the major sources of GHGs. Toll Holdings operates as a transport and logistics firm.
The firm developed an efficient road, air, rail, and ocean network that aid it in offering effective logistic services across the world.
By offering transportation services through this mechanism, the firm emits a substantial amount of GHG to the atmosphere. Therefore, one can assert that the major sources of greenhouse gas emissions in Toll Holdings are its fleet of airplanes, trucks, trains, and ships.
Toll Holdings climate change strategy
Hoffman (2005) asserts that an organisation can utilise various strategies in order to minimise its impact on climate change. Some of the strategies being adopted include trading in carbon credits and altering the firm’s operational processes.
Toll Holdings is cognisant of its impact on climate change. Consequently, the firm has incorporated the concept of environmental sustainability. The Toll’s management team is committed towards reducing the firm’s impact on the environmental footprint.
The firm has adopted a number of voluntary greenhouse gas-reduction strategies in this regard. The first strategy entails adjusting its operations into being cleaner and greener.
The firm is in the process of incorporating new practices and technologies in its operational strategies, which will aid in reducing the volume of GHGs emitted.
For example, the new technologies will let the firm shift from utilising non-renewable sources of energy such as petroleum-based fuels into using renewable energies such as electricity. The firm is in the process of evaluating how it can incorporate other viable types of green energy.
Incorporating green forms of energy will aid the firm in transforming its operational strategy into more sustainable logistics (Toll Holdings 2013). In its quest to position itself as an environmentally sustainable organisation, the firm has adopted Smarter Green Program.
The program aids the firm in responding to its negative impact on the environment. Moreover, the firm has incorporated a number of performance measurement initiatives in an effort to assess its progress with regard to greenhouse gas emissions.
The firm’s smarter green initiative is comprised of six main aspects, which include smarter driving, smarter vehicles, smarter planning, smarter facilities, smarter fuel efficiency, and smarter energy (Toll Holdings 2013).
Current and emerging climate change threats and opportunities
Climate change is a major business issue that organisations have to integrate in their operations. It presents a set of risks and opportunities that entrepreneurs and firms’ management teams should take into account.
One major threat that Toll faces due to climate change relates to the occurrence of floods across its distributional networks. Climate change is one of the major factors increasing the occurrences of floods.
For example, global warming increases the likelihood of snow melting hence the rise in the volume of water in major waterways.
Such an occurrence may affect major transport gateways, hence limiting the firm’s effectiveness in its distributional efficiency. As a result, the firm’s competitiveness may be affected (McKibben 2012).
The occurrence of natural phenomena such as storms due to climate change presents a major threat to Toll Holdings, as the firm cannot be in a position to quantify the financial impact of possible damage.
Consequently, the likelihood of the firm incorporating an effective risk management strategy such as mitigation and risk transfer, for example through insurance is reduced. Moreover, the firm cannot be in a comfortable position to avoid the risk.
The firm’s degree of exposure to risks associated with climate change such as storms may adversely affect its attractiveness amongst investors. Consequently, the competitiveness of the firm in the international market might reduce.
Moreover, the occurrence of a high rate of climate change in areas where the firm operates may lead to an increment in carbon tax levied against companies.
Such a strategy may be adopted in an effort to push companies to minimise their greenhouse gas emissions. Ultimately, the firm’s level of profitability might be affected (Hoffman, 2005).
Despite the above threats, climate change can assist Toll Holdings achieve optimal long-term positioning. For example, the firm can adjust its operational processes in such a way that it aligns its operations to the prevailing needs (Kiron et al. 2012).
This move will culminate in improvement in the company’s public image and reputation amongst investors, lenders, regulators, and insurers. Incorporating strategies such as green energy may aid the firm in attracting investors.
Climate change also presents Toll with an opportunity to improve its risk management strategies. For example, the firm can insure itself against such occurrences (Hoffman 2005)
Recommendations on Toll’s climate change strategy
Toll Holdings should consider the most effective climate change-management strategies. Some of the strategies that the firm can integrate include
- Incorporating a carbon footprint trading policy- The trading policy will assist Toll Holdings in improving its commitment to reduce the occurrence of climate change.
- Toll Holdings should adjust its operational processes by integrating various forms of renewable energy. Some of the forms of energy that the firm should include bio-fuel, nuclear energy, and electric power.
Conclusion
The paper shows that firms can integrate a number of aspects in order to achieve organisational sustainability. Some of these issues relate to improving the firm’s HRM strategies and integrating climate change strategies.
In summary, firms should focus on three main facets of sustainability, which include environmental, economic, and social aspects. These aspects will stimulate the firm’s ability to achieve sustainable development.
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