Report on the Key Drivers for Sustainability

Task 1: Introduction of Key Drivers for Sustainability:

For corporate sustainability and a competitive advantage in large multi-national companies the sustainable business model innovation SBMI is increasingly perceived as a key driver. By taking a research approach quantitatively, needed for sustainable business model innovation how dynamic capabilities are affected by the design of the organization. With respect to the designs of an organization, three divers and barrier levels are identified which are: the institutional, the strategic, and the operational. For converting it into profit and the customers to pay for value the business model innovation, is about to innovate the value creation delivery, the capture mechanism of firms. For multinational firms that want to remain in competition the sustainability business model innovation acts as a key activity. For large multinational corporation which wants to in competition remains, Sustainability business model innovation is act as a key activity, for leading new offers to the customers and revenue streams (M.P.Bocken, 2019). For the influence of key drivers on the business I chose a firm to implement on it, the firm is Omani firm, the firm is named as: Arkan Majan International LLC Muscat Oman. This is the excellent grade Omani construction company working closely with their staff, affiliates, and business partners in various construction related domains. The two types of drivers are main which are discussed in this essay in detailed. The first diver is the role of the stakeholders and the second main key driver is the role of the business drivers. Both key drivers are used to influence the sustainability to the organization.

Main Body of Key Drivers for Sustainability:

What are the main drivers of any organization to push sustainability agenda across their, organization and play a crucial role? There are two main drivers which are the role of the stakeholders and the role of the business drivers.

The role of the stakeholders of Key Drivers for Sustainability:

In the market to fulfill requirements of ethical investment, as a part of the due diligence process, the pressure is increased by the limited partners, institutional investors, private equity providers, and financial institutions which include sovereign wealth funds to increase analytic evidence of good sustainability performance. In sustainable practices and analytics, it has significant improvement in companies that require investment and finance. The emerging markets include Hong Kong, Shanghai, Shenzhen, Singapore, Kuala Lumpur, Sao Paulo, and Johannesburg, the stock exchange which is issued by the number of sustainability reporting instruments. The stock has doubled the 23 in 2013 to 44 in 2016 and in emerging companies it particularly high. The supply chain corporate is becoming paramount thought out due to the impact of transparency on sustainability. 

Example:

In 2012, the sustainability reports are voluntarily provided by the companies with the recommendation of best practices is announced by the Hong Kong stock exchange company (HKEx). “comply or explain” approach is strengthened voluntary by the requirements of reporting by Hong Kong Stock Exchange in 2016. It means that companies have to voluntarily build the report which is compiled annually of the financial year which is a set of ESG provisions. If a firm or company does not build the ESG final financial report then they have to give the proper explanation to the Hong Kong Stock Exchange only the authentic explanation or considered reasons are considered. As well as the same Singapore stock Exchange in July 2016 announced to a listed company mandate sustainability reporting which is based on the “comply or explain” phenomena.  

The figure elaborates on the key drivers of sustainability reports on the demand.

The role of business drivers of Key Drivers for Sustainability:

To focus on companies to triple bottom line, the main drivers of the company are initially government, stock exchanges, and financial institutions. From the private level sector, to drive change sustainability is enough strong in this case or in this awareness?

From the government policy, a vast number of companies are openly following the ESG agenda independently across their organizations and supply chains and sustainability initiatives. As a result of an agreement that responds to the withdrawal of the Paris Agreement with the American president Donald Trump. For reducing their green-house gas emission several cities of the united states reconfirming their commitments. The business strategies have been refining to embrace practices that focus on the financial elements, also to the environmental and social aspects allowed to the leading businesses and to the multinational companies, as a result of changing in the economic environment on a daily basis. In the present era, the number of businesses increasingly embedded sustainability practices, to generate savings in cost, their operations are optimized. Through resource efficiency sustainability is used to save money, the efficient resources are reduction of energy, water and waste consumption to reduce the cost and carbon. However, it is the ability of strong sustainability practices support which is more important is it to win the new business. With sustainability initiatives the number of corporations increasingly moving forward and using sustainability practice innovative as a key tool to do differentiate between keep and win customers. Which is resulting in strengthening their valuations by sustainable business and making their investors more attractive? In the last few decades, significantly sustainability has evolved to approach business. For win, the more business, enhancing the reputation, sustainability is utilized by many businesses as a key message to differentiate these factors (turkeygroup, 2017).   

Conclusion of Key Drivers for Sustainability:

In this essay we clearly discussed and demonstrated the key driver influence in the sustainability business companies. There are many key drivers of sustainable business but 2 are the main key drivers that influence business which is the role of the stakeholder and the role of the business drivers on the business. The role of the stakeholders tells about the Hong Kong Stock Exchange announcement which referred to ESG report compilation on the yearly finance base. This essay tells about the stakeholders in detail how the cost affects the stakeholders and in what manner they support the organization. The second and the final key driver of sustainable business innovation is the role of the business drivers. This role of the business driver clearly shows the influence of sustainability on the business. Many companies or organizations are using sustainability innovations to win more customers and reduce the cost-effectiveness and get more profit in the organization. I chose an Omani company to implement key drivers to influence this organization to sustainability. It clearly shows if Omani companies implement these key drivers in their construction company. Then they will get more profit and get more ranked in the global. As these sustainability innovations are using by the most ranked or high-quality companies or organizations. The second key driver is more important than the role of the stakeholders because in the role of the business drivers we seek the methods to enhance or engage customers or win the customers effectively and it is also cost-effective. After the agreement of Paris and united states president Mr. Donald Trumpt, a number of companies increasingly following the sustainable innovation model independently and getting benefit from it by making some commitments, as well as, the different organizational owners of united states of different cities are also reconfirming their commitments according to the sustainable business innovations.  

Task 2:

Introduction of Key Drivers for Sustainability:

It is become increasingly recognized the successful delivery of the project is the central role which is played by stakeholders. The roles of stakeholders are neither predefined or nor passive, critical to success. For influencing the stakeholder’s expectation and perceptions the project management team have proper opportunities but it will happen when there is an effective relationship is built between the project team and stakeholder to benefit both project and stakeholders. There are six steps that are used for effective stakeholder relationship management. The steps are the following: identify stakeholders, set desired outcomes, be open with stakeholders, listen, provide options to resolve issues, and keep your promises. We will discuss these steps in detail in the main body of the essay (sustainet, 2018).  

Towards the carrying capacity of the plant, the economy is expanding globally, for long-term ensuring financial success, it is the basic need of any business to recognize that in a larger biophysical and social environment they are operating, and respect the government process and limits of larger ecosystem as Sustainability. While maintain and improving the shareholder value, the firms, especially the larger multinational corporations, to behave in an environmentally sustainable and socially responsive manner are challenged. To improve the triple bottom line performance, and to make trade-offs that are informed among financial often-conflict, environment and social objective the continual information is sought by the firm managers (Joshi, 2016).  

Main Body:

Stakeholders of Key Drivers for Sustainability:

Stakeholders are the individuals or groups of individuals who have some sort of right or ownership in the project, they support and contribute to the project as knowledge, and impacted by the outcomes of the project. 

 Sustainability of Stakeholder Relationship Management:

For the success of the project that is organized or operating by the organization and long-term survival of the organization it is essential for stakeholders and this is done by an effective relationship with organizations' entire network of stakeholders. For meeting the needs and expectations of stakeholders of the organization and the needs of the organization in a way these relations are managed. For sustainable stakeholder relationship management defining and describing a concept is used which provides the position of state to manage activities of stakeholder the concept is “directions which influence”. The directions are: upwards, downwards, outwards, and sideward.

• Managing Upwards, not every single or all senior managers for the success of projects are important, but seniors are important in the maintenance of organizational commitment in the project, so robust relationship by developing and maintaining with senior managers whose support is important.
• Managing Downwards, it is referring to the idea of project team management.
• Managing Sideward, rather than competition, to ensure collaboration is about to manage the peers of project managers.
• Managing outwards, external to the work of the project, the needs, expectations, and impacts are considered of stakeholders large group, which often performed by an organization. 

The following steps are included and followed by these groups:

• The performing organization’s customers or clients.
• Users and their managers of the solution.
• Voters, ratepayers, action groups, lobby of the “public”.
• Regulatory bodies or government.
• Shareholders.
• Families of the stakeholders.
• Suppliers of personnel, material, or services. 

The requirements of the project are different for each group of Outwards stakeholder group. It is the essential part to separate the groups by understanding the impacts of the project and by clarifying the project requirements, as they are grouped in “direction which influence”.

Components of Sustainable Stakeholders Relationship Management:

There are five steps of these methodologies are used which are the following:

• Step 1: All the stakeholders are identified.
• Step 2: Prioritization to determine “who is important”.
• Step 3: To understand the overall community of stakeholders the visualization used. 
• Step 4: Effective Communications through engagement.
• Step 5: The effect of the engagement is monitored.

The explanation of these steps is as follows:

Identification of all the stakeholders:

It is the first step a list of stakeholders is made by a small group of project members which include the impact of stakeholders on the project and the impact of the project on stakeholders. 

Priorities of Key Drivers for Sustainability:

The list of stakeholders that are unranked and unrefined for complex projects is exceeded from 300. So, which of stakeholders are important at this time of period are important to understand by the project team member? The three aspects are used for understanding this methodology of important stakeholders which are:

“power” ----- power to “kill” the project.

“Proximity” ------ closeness to the project.

“Urgency” ------ how much a stakeholder is prepared to achieve the positive or negative outcome or how much project is important for the stakeholder.

Visualize of Key Drivers for Sustainability:

For building the needs and understanding the insights a key aspect can be most effectively helps in a graphical representation of community highlighting. It is the basic need of the project team to understand the community of their stakeholders.

Engage of Key Drivers for Sustainability:

By assessment and documentation, the profile of engagement is created through the key attitude of stakeholders:

Current levels are assessed by:

• For the project outcome and project work the support of stakeholders.
• About the project the receptiveness to information the level of stakeholders. 

The optimal level determination:

• About the project the information to receptiveness.
• The support of stakeholders for project outcome and project work.

Monitor of Key Drivers for Sustainability:

It is critical to monitor communication effectively, where the communication is being affected, the maintenance of the current plan, if the communication plan is not working then the plan should be changed (Bourne, 2018).  

Corporate Sustainability of Key Drivers for Sustainability:

 It is a paradigm that is view as new and evolving corporate management of corporate Sustainability. The traditional growth and profit-maximization models are alternatives to corporate Sustainability. The Profitability and corporate growth are important it is recognized by the corporate Sustainability, to follow the social goals it also requires, especially those requirements which are related to the development of Sustainability these are environmental protection, social justice and equity, and economic development (Wilson, 2012).

The Corporate Sustainability in a big or small company is a buzz word. Sustainability is a term that defines that it is the meeting of needs at present without compromising that future generation will meet these requirements.

There are three pillars of corporate sustainability:

• Environmental pillar
• The social pillar
• Economic pillar (BEATTIE, 2019)

 Examples of corporate Sustainability of Key Drivers for Sustainability:

• Be international about Sustainability
• Partner with employees
• Supply chain
• Water and electric conversation
• Developing of recycle program
• Chemical management

Examples of firms which are using Corporate Sustainability:

• Chr. Hansen Holding
• Kering SA
• Neste corporation
• GlaxoSmithKline (Lellis, 2019)

Sustainability Methodologies of Key Drivers for Sustainability:

• Planning of project
• Defining enterprise mission statement
• Analysis of stakeholders
• Strategy definition
• Strategy implementation plan definition
• Design of indicators and targets
• Validation
• SBSC implementation
• Monitoring (León‐Soriano, 2011)

Sustainability Value Creation Process:

In the manufacturing system creating high value long-term crucial by sustainability. In order to creation of Sustainability value creation, the system requires thinking in order to capture the total maximize value.

For the creation of Sustainable value some key concepts are used which are:

System Thinking of Key Drivers for Sustainability:

According to the author, the main or most important property of any system is, it is made of non-isolated parts which are several, and closely interlinked with each other, and form a complex structure. The improved understanding of systems and enables the utilization and identifications of improved facilities this is all one by system thinking.  

Whole System Design of Key Drivers for Sustainability:

By practicing designers or educators are not properly designed and understood, the processes, principles, and methods guiding the whole system approach, while whole system design to sustainable design system a great potential approach.

System Innovation of Key Drivers for Sustainability:

The innovative requirements for sustainable development, it is argued, beyond incremental adjustments need to move. The transformation of production of larger parts and consumption system are required by sustainability development. In the existing production and consumption system the incremental innovation may lead to further improvements in the sustainability performance, in the multi-dimensional production and consumption space system incremental innovation, in the end, does not lead to globally optimal system configuration frequently.

Sustainable Business Models of Key Drivers for Sustainability:

The changes occur in the creation of a network of an organization and its value, change in delivering value, and capture value, and change occurs in the value of their proposition due to positive or negative impact on society by innovation. It is generally, the definition of business model innovations for sustainability. 

New Concepts for Sustainability Value Creation—Negative Forms of Value:

For each stakeholder, different forms of values, a quantitative framework to facilitate systematic exploration (Evans, 2017).

Reporting System of Key Drivers for Sustainability:

Generally reporting system is defined as:

Reporting systems generally refer to the gathering of data on drug abuse on a monthly or yearly basis on the agencies and institutions that on work how many drug users are. Treatment facilities, as well as welfare, physicians, hospitals, and the criminal justice system, are the agencies which usually report drug abuse reporting system. By Porter most of the countries surveyed physicians were required a person, who report about a person who is addicted to drugs and making use of drugs non-therapeutically.

Role of Reporting System of Key Drivers for Sustainability:

In locale or country total picture is needed of drug abusive persons in this reporting system is playing a great role. In Primarily heavy users’ information it contributes, come to notice a few frequent users in physicians, police, and other agencies that provide this information to the system. Drug abuse information is not only for collecting and storing the reporting systems are created. This information is available for those to make decisions in interventions of drug abuse and widely this information is available for public

Characteristics of Reporting System:

Reliable and valid information gaining procedure is reporting system, in different drug segments, it’s happened which involves hospital admissions, arrests, or whom which is only noticed by a physician that he is drugs addicted and specialized treatment. In what circumstances what or how is reported is required for a unique, good and clear reporting system (smart, 2015). 

Conclusion of Key Drivers for Sustainability:

In this essay, I discussed in detail with examples of the sustainability of the stakeholder relationship management and corporate sustainability of the firm is continuing to operate the business over a long period of time. It also covered the overall reporting systems, a suitable value creation process, and advanced methodologies of sustainability. Different steps are discussed for the effective relationship management between the stakeholders and the project team member. Every topic of the essay discussed in detail and every topic contains different effective steps.

References of Key Drivers for Sustainability:

BEATTIE, A., 2019. investopedia. [Online]
Available at: https://www.investopedia.com/articles/investing/100515/three-pillars-corporate-sustainability.asp

Bourne, L., 2018. stakeholder relationship management maturity. Project Management Institute., p. 15.

Evans, S., 2017. Sustainable Value Creation—From Concept Towards Implementation. springerLink, Issue 2017, pp. 203-220.

Joshi, S., 2016. What Is Corporate Sustainability and How Do Firms Practice It? A Management Accounting Research Perspective. JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH , Vol. 28, No. 2 (2016), p. 11.

Lellis, C., 2019. 8 Corporate Sustainability Examples From Companies That Are Doing It Right. [Online]
Available at: http://www.perillon.com/blog/8-corporate-sustainability-examples

León‐Soriano, 2011. Methodology for sustainability. emeraldinsight, Issue 2011, p. 20.

M.P.Bocken, A. l. o. o. p., 2019. Barriers and drivers to sustainable business model innovation: Organization design and dynamic capabilities. Elsevier, Issue 16 dec 2019, p. 200.

smart, R., 2015. GUIDE TO DRUG ABUSE EPIDEMIOLOGY. springer, Issue 2015, p. 209.

sustainet, 2018. 6 Steps to an Effective Stakeholder Relationship. [Online]
Available at: https://www.sustainet.com/stakeholder-relationship/

turkeygroup, 2017. Key Drivers of Sustainability – Role of Stakeholders and Business Drivers. [Online]
Available at: https://www.turnkeygroup.net/key-drivers-sustainability-role-stakeholders-business-drivers/

Wilson, M., 2012. CORPORATE SUSTAINABILITY: WHAT IS IT AND WHERE DOES IT COME FROM?. iveybusinessjournal, Volume 3, p. 6.