Introduction
The report will assess the impact of business structures on the environment and challenges within the global business environment regarding corporate social responsibilities and professionalism. It also examines the effects of implementing a code of conduct, support from the governing entities, and professional bodies in tackling ecological issues. The report analyses the core elements of operating professionally and an aspect of professional practice in more detail. The environmental issue will be analysed comprehensively in the context of different business structures. The effects of companies’ actions on society and the environment will be evaluated along with their use of codes of conduct and support from professional organisations.
The Impact of Business Structures on the Environment
Overview of the issue
A chosen ethical issue is the impact of business structures on the environment. The fast-paced world drives mass consumption that leads to overproduction. This further negatively influences the environment by increasing disposable products and industrial waste. Business structures should fund socio-environmental programmes that will reduce the adverse effects of mass production. For example, Ford company uses sustainable materials in its vehicles, where 80% of its Focus and Escape models are reusable (SmartcitiesDive, 2020). The company also has the most extensive green roof and won the EPA Energy Star Award twice in a row (SmartcitiesDive, 2020). Starbucks company also has green stores that use reusable products (SmartcitiesDive, 2020). However, there are companies that unsustainable and harm the environment. For instance, famous companies, such as Coca-Cola and Nestle, were blamed by Greenpeace organisation for not solving plastic pollution (Schleeter, 2021). Greenpeace movement calls for active social media users whenever they find plastic products, where they should write a post about it with #IsthisYours? Business structures damage the environment by various factors, from lack of proper waste management to producing disposable products.
Evaluation of Codes of Conduct
Speaking about how sustainable companies address ecological issues, they need to examine their code of conduct. A code of conduct consists of sets of rules and responsibilities that employers and employees should do to remain ethical and professional. The Ford company that actively participates in various environmental programmes has a chapter related to its environmental effects. Employees of Ford should know ecological requirements that are both legally mandated and company-initiated (Ford Code of Conduct Handbook, 2007). Moreover, employees should use the Company’s Environmental Quality Office, which tackles facility issues, and the Vehicle Environmental Engineering team, which deals with product issues, if there is need assistance (Ford Code of Conduct Handbook, 2007). Apart from environmental concerns, the code of conduct of Ford includes other ethical and professional aspects, such as product quality and intellectual property. When it comes to Starbucks, its code of conduct states that the company is subject to the highest standards of ethical conduct and actions (Standards of Business Conduct). Here, it is seen that the company cares about its reputation, emphasising its social and environmental concerns. The business entity attempts to minimize its ecological footprint and obligate all partners to actively participate in reducing the impacts of their operations (Standards of Business Conduct, 2021). Code of conduct illustrates the company’s willingness to deal with socio-environmental issues (Dion, 2017). Thus, effective construction of a code of conduct is essential in addressing the ethical issue.
Effectiveness of Greenpeace and National Resources Defence Council
Organisations, such as Greenpeace and Natural Resources Defense Council (NRDC), support companies and individuals with environmental issues caused mainly by manufacturing. Greenpeace is concerned about making the modern world green and peaceful, while NRDC aims to protect the environment and human beings from various disasters (Greenpeace, NRDC). These organisations are the most useful in addressing the environmental impact of businesses due to their research and different programs aiming to reduce the ecological effects of production. For example, Greenpeace cooperated with fashion companies and the Chinese government to tackle the issue of hazardous waste (Varelly et al., 2019). The companies positively responded to Greenpeace’s suggestions and used more eco-friendly materials in their manufacture. Moreover, Greenpeace and NRDC provide market campaign strategies for businesses to reduce their environmental footprint. For instance, Greenpeace helped transform Nestle’s policy to reduce deforestation in palm oil products (Syarifuddin et al., 2020). NRDC has Climate & Clean Energy program that calls companies to use energy efficiency, renewable energy, and electric vehicles to meet the U.S. carbon reduction goals (NRDC). By working with Greenpeace and NRDC, companies will have environmentally friendly production, thus increasing public support and conducting green business.
Assessment of the Impact of Code of Conduct and Support
Support from such organisations and the code of conduct of business structures play a crucial role in addressing an environmental issue. Harmful effects of businesses on the environment can be solved by following the code of conduct and advice of professional organisations. In addition to the successful examples of Ford and Nestle’s codes of conducts, Hewlett-Packard’s code of conduct includes employee’s obligations about how to minimise their environmental footprint through product design and development (Integrity at HP, p.54). However, some companies ignore the advice from professional organisations and rules in the code of conduct, thus facing severe ethical issues. For example, a Russian company, Gazprom, started to extract oil beyond the Arctic line, neglecting Greenpeace’s “Save the Arctic” campaign (Villo et al., 2020). Gazprom’s action provoked a decrease in public support and detrimental effects on the environment. Having an ineffective code of conduct can cause severe environmental issues. For instance, there was a need for a code of conduct on pesticide management in India’s Kerala state, as uncontrolled use of pesticide directly and indirectly affected people and the environment (Hussin et al., 2021). Therefore, it is significant to follow a code of conduct and accept the advice of professional organisations when addressing ethical issues.
Conclusion
Overall, the environmental impact of business structures is an ethical issue that still needs reconsideration within the world companies. Not all companies strictly follow their code of conduct regarding social responsibilities and environmental effects. There is a need to implement more eco-friendly reforms in the code of conduct. Employees should know the code of conduct and be aware of their actions. They should be as responsible for their impact on the environment as their employers. It also benefits them because corporate environmental responsibility significantly improves the earnings of a company (Xu et al., 2019). Moreover, environmental organisations should have legal rights to sanction companies that neglect eco-campaigns and movements. Such organisations also need the assistance of governments when addressing the environmental issues of businesses.
References
Dion, M. (2017) ‘Corporate citizenship as an ethic of care: corporate values, codes of ethics and global governance’, Perspectives on Corporate Citizenship, pp. 118-138.
Ford Code of Conduct Handbook (2007). Web.
Greenpeace (2021). Web.
Hussin, M. H. and Perbawati, E. K. (2021) ‘The effect of the international code of conduct on pesticide management on the use of pesticide in Kerala, India (2003-2017)’, 4th International Conference on Sustainable Innovation 2020–Social, Humanity, and Education, pp. 183-191.
Integrity at HP. (2021). Web.
Schleeter, R. (2021) These 10 companies are flooding the planet with throwaway plastic – Greenpeace International. Web.
National Resources Defence Council (2021). Web.
Standards of Business Conduct. Business Ethics and Compliance. Starbucks (2021). Web.
Syarifuddin, E. A. et al. (2020) ‘The market campaign strategy of Greenpeace in decreasing rainforest deforestation in Indonesia: a case study of the usage of palm oil in Nestlé’s products. IOP Conference Series: Earth and Environmental Science, 575(1), 012071.
Varelly, A et al. (2019) ‘The state, fashion companies, and international non-governmental organisation (INGO) relations: encountering the problem of hazardous waste’, IOP Conference Series: Earth and Environmental Science, 343(1), pp. 012089.
Villo, S., Halme, M., & Ritvala, T. (2020) ‘Theorizing MNE-NGO conflicts in state-capitalist contexts: Insights from the Greenpeace, Gazprom and the Russian state dispute in the Arctic’, Journal of World Business, 55(3), pp. 101068.
9 companies with great environmental initiatives (2020). Web.
Xu, F., Yang, M., Li, Q. & Yang, X. (2020) ‘Long‐term economic consequences of corporate environmental responsibility: Evidence from heavily polluting listed companies in China’, Business Strategy and the Environment, 29(6), pp. 2251-2264.