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BUSINESS
IMPACTS ON
THE SDG
ASSIGNMENT 1
GROVAZ COMPANY
Introduction 01
What are the SDGs? 01
Business’s impacts on the
achievement of the SDGs
02
In addition, the SDGs are interconnected and progress in one area can have both
beneficial and detrimental consequences for other areas (WONG, 2021). For
example, efforts to promote affordable and clean energy (SDG 7) might have a
positive impact on climate action (SDG 13), but must be implemented sustainably to
avoid adverse effects on life below water and life on land (SDGs 14 & 15) (Office of
Energy Efficiency & Renewable Energy, n.d.)
Business’s impacts on the
achievement of the SDGs
The Sustainable Development Goals (SDGs) and businesses are closely intertwined
for various reasons. As per a report by EY Global (2017), SDGs offer a framework for
generating revenue, encouraging innovation in products and services, and creating
business growth opportunities. By focusing on social impact, companies can gain a
competitive advantage, meet investor and employee expectations, and create
financial value. This approach aligns with principles of Innovation-Driven
Entrepreneurship (IDE) and the Market-Based Approach (MBA) while both
emphasizing the innovations and creations of offerings that address societal needs
and challenges (Botelho et al., 2021) (USAID, 2021). NeedEneegy, a startup focused
on energy solutions, partners with small-scale renewable energy producers to build
energy data centers (AU-Startups, 2023) to build cost-effective and eco-friendly
energy solutions in rural communities, achieving SDG 7 (Affordable and Clean
Energy), while generating revenue by addressing societal needs and challenges.
In addition, by aligning the CSR efforts with the SDGs, the company can address
various global challenges and improve its reputation (Rohilla, 2022). An example of
this can be found in the case of Honeywell, a global technology and manufacturing
company that prioritizes reducing its carbon footprint and promoting sustainable
energy solutions. The company's focus on energy efficiency, sustainability, and
environmental stewardship has positioned it as a leader in meeting the changing
demands of customers and the market. Honeywell's commitment to energy efficiency,
specialty chemicals, and process technologies has solidified its position as a
frontrunner in tackling global energy and environmental challenges (Globaldata,
2023).
In addition, aligning business strategies and operations with the SDGs can have a
positive impact on the environment. The circular economy is a concept highlighting
the significance of reducing waste and optimizing resource efficiency. Businesses can
make a significant impact on the achievement of SDGs by adopting circular economy
principles by reducing wasteful consumption of material resources and promoting the
reuse and recycling of products (EcoChain, 2023). Philips is a company that has
embraced circular economy principles to support the attainment of the Sustainable
Development Goals (SDGs) - "Use less, use longer, use again." The company has
adopted a circular business model that emphasizes product-as-a-service, where
customers lease products rather than purchasing them outright (Merzke, 2023).
Through this innovative approach, Philips successfully minimizes waste, maximizes
resource utilization, and contributes significantly contributions to the attainment of the
Sustainable Development Goals, including sustainable consumption and production
(SDG 12) and climate action (SDG 13).
The “Grovaz” case study
In the case of Grovaz, they are facing two primary ESG concerns: ensuring a
sustainable supply chain and promoting sustainable economic growth and productive
employment. It is evident that Grovaz is currently dealing with several human resource
challenges that have a direct impact on the achievement of SDG 8, focusing on
promoting economic growth that benefits everyone, creating quality jobs, and fostering
sustainable entrepreneurship and innovation (A Beginners Guide to the SDGs, 2020).
Appendix 1: Key Targets for SDG 8 (The Intution of Engineers Siri Lanka, n.d.)
Recommendations
Firstly, Grovaz should prioritize implementing sustainable sourcing practices for corn
by adopting fairtrade principles to ensure local farmers receive fair compensation for
their products and labor. Farmers play a vital role in the agricultural supply chain,
producing crops sold to intermediaries, processors, or retailers (Willingham & Green,
2019). The company can address this issue is to purchase corn from Fairtrade
Certified sources while products that meet Fairtrade standards are certified to have
been produced and traded in accordance with Fairtrade International (2023).
Fairtrade Australia & New Zealand is also part of the global Fairtrade International
network. Thus, it is important for the company to ensure that all corn production is
certified by the International Fairtrade Organization. Given Grovaz's significant
purchasing power in the Petnusia market, brokers will independently strategies to
fulfill the company's demand. Ben&Jerry Ice Cream is a brand known for its wide
range of flavors, including the popular chocolate flavor made with Fairtrade Certified
cocoa. The brand has been dedicated to using Fairtrade Certified ingredients for
many years. They made sure that all ingredients were Fairtrade Certified in Europe by
2011 and in the United States by 2014 (Ben&Jerry, 2023.)
Grovaz employees and their families will be impacted by the adoption of family-
friendly policies and continual training opportunities. Family-friendly, including
parental leave and flexible work schedules, will help women in particular grow in their
careers and maintain a work-life balance. Employee retention, well-being, and
satisfaction will all benefit from this. Furthermore, continuous training programs will
improve workers' abilities and output, supporting their career development and job
satisfaction—all of which are in line with SDG 8. This will consequently guarantee a
steady and competent workforce, improving the company's sustainability and
competitiveness. Gender equality in the nation is improved in part by Petnusia's policy
of providing women with greater opportunity for growth within the corporation.
Additionally, by demonstrating to people the value of knowledge and skills and
providing a reason to attend classes, this approach can help increase attendance
rates in Petnusia's schools. Ultimately, this could help achieve SDG 4, which aims to
guarantee inclusive and equitable quality education and promote opportunities for
lifelong learning for everyone (UNDP, 2023).
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