Tesco's Sustainable Development: Impact & Improvements Sample

Introduction : Tesco's Sustainable Development: Impact & Improvements

Sustainable development should be carrying out in organization which will help in satisfying needs of customer without creating negative impact on environment. This report will include the importance of sustainable development for organization and its impact on society. Tesco has been selected as company on which further investigation will be carried out. Further, plans will formed to improve sustainability in company. Tesco is leading company in UK which provides groceries and financial services to customers. Company is having an effective market share of 27.2% and has an annual turnover of 60 billion pound (Annual turnover of Tesco, 2022.). Retailing industries in UK are contributing adequate in sustainable development of country. This report also includes activities which are undertaken by Tesco for sustainable development and areas where company need to improve their performances. This report also includes critical evaluation of alternatives that could help in improving sustainability and include various recommendations for maintaining sustainability in company.

Sustainable business operations

This refers to as identify various alternatives and measures by which negative impact on environment cause by operation of company could be reduced. This includes identifying measures by which carbon emission form industries could be reduced, developing proper waste management and protecting natural resources.

Importance of sustainable business operations: In todays world, it is very important for every organization to have sustainable development which will help in effective achievement of objective. Some of benefits of sustainable growth to organization are as follows:

• Helps in improving image of organization: By using sustainable operation, company is enabling to create positive image of company in the mind of the customer (Importance of sustainable operations in organization, 2023). This helps in improving reputation and goodwill of firm and assists in maintaining long term stability in industry.
• Reduction in cost: By identifying sustainable operation company would become able to reduce in the cost of their manufacturing. This will help in creating competitive edge and gain more customer.
• Improving productivity: By implementing sustainable operation company would become able to reduce waste and improving efficiency of resources (Ali et al, 2021). This will eventually lead to enhance productivity of company.
• Helps in attracting investors: As sustainable development help in improving reputation and image of company, it made easier for firm to raise funds whenever required.

Various measures for managing sustainability in organization:

There are varieties of ways by which company could improve sustainability in their operation (Baldassarre et al, 2020). Some of most common way for maintaining sustainability is as follows:

• Company could focus on adopting proper waste management system and eliminate less sustainable elements used in the packaging of products.
• Energy efficient technology should be adopted in the organization this will help in reducing impact of electricity and on environment as well.
• Company should ensure the adequate quality of products and conduct research to identify reason behind the defects in products.
• Resources and raw material which are been used should be evaluated to identify its impact and lest impactful material should be selected for production.
• Company should focus on using mode of transportation which reduces carbon emission and help in protecting environment.

Sustainability is important in retail industry as it has been identified that around 277000 tons of food waste has been produced in a year (Chng, Cheah and Amran, 2021). Companies in retail industries should focus on introducing measures which will helpful in managing the waste. Sustainability helps in reducing usage of water, energy and thereby protects natural environment. Not following sustainable mode in organization could increase financial burden on the organization as they could liable for certain fines according to legislations. Sustainability in organization increases the cost of product for customer as company use expensive raw material and processing method.

Unsustainable act done by Tesco:

It has been identified that Tesco use various unsustainable and unethical measure to increase its profitability. Undertaking this act lead to reduction in number of customers for firm and decreases their retention. It will become difficult for company to retain and hire skilled and professional employees in organization (Unsustainable Act done by Tesco, 2021). This act will lead to losing corporate reputation which will reduce interest of investors in invest in companies. Some of activities undertaken by Tesco are as follows:

• Use of plastic in packaging: Tesco deals in variety of groceries products which involve different type of packaging. It has been identified that 40% of products provided by Tesco involve plastics in their packaging. In previous year 200 million plastic bags had been delivered by Tesco (Chen et al, 2021). Lids of various creams, yogurt, desserts and wipes are made of plastics which amount to 100 million. Plastic wrapping has been used by company in packaging beers and cider which amount to 50 million plastic pieces. This indicates that company using high amount of plastics in their company is having negative impact on organization.

• Creating transportation pollution: It has been identified that vehicles which has been used by company for transporting good are leading to high carbon emission. Company is using fuel based vans to distributing good in UK which is reason behind degrading quality of air and increasing level of causing pollution.

• Ineffective waste management: Adequate waste management process should be defined by the company which will help in sustainable growth of company. In 2022, it has been identified that company is having the waste which is equal to 119 million meals amounting 59400 tones. Ineffective waste management led to increase in amount of carbon dioxide in environment which will result in increasing heating (Das et al, 2019). Climate is also impacted by ineffective waste management and if improper dumping has been carry out then it will have negative impact on soil.
• Increase in deforestation: In current time, the demand for soy has been increased in UK which leads to deforestation in country. Many forests have been cut off to produce soy in the country and Tesco has been liable for selling most of soy product in UK. It has been identifies approximately 3470 hectares of forest land has been used in production of soy. It will lead to reducing the quality of air and soil of UK which will have negative impact on natural resources and environment of country.
• Corporate social responsibility: Tesco is not effectively fulfilling corporate social responsibility in firm as they are facing issue in maintaining good relation with supplier and customers. The company is insufficient in sourcing efficient raw material and fulfilling its ethics. Supplier of Tesco claims that they have not been paid adequate amount for their goods and services (Dijkstra, van Beukering and Brouwer, 2020). Company is not using any suitable employment contract for employees working in manufacturing process. Company always hire worker on temporary basis which leads to reduction in morale and productivity of employees.
• Ineffective supply chain: Tesco aim at producing their own grocery product from their industries. This will help in reducing cost as they need not to buy from other suppliers which will help in increasing profitability. It will also help in creating competitive edge in the industry by providing goods at cheaper rate then market which led to attracting more customers (Sánchez-Flores et al, 2020). This production leads to usage of high amount of energy and led to high carbon emission which impact environment. Company did not invest on conducting research which can helpful in identifying other measures for production that are sustainable.

Solution for improving sustainability

It is very important for Tesco takes suitable action which could helpful in improving the sustainability of company. These measures will eventually lead to increasing the reputation and image of the company in mind of customer. Employing sustainable measures will help in improving the satisfaction of customer and lead to increase sales and profitability of company. There is variety of solutions and measure which company could undertake to improve sustainability. Some of the most effective ways to reduce environmental impact are as follows:

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• Introduction of 4R strategy: Tesco should introduce 4R strategy which will help in managing plastic in organization. 4R includes reduce, reuse, recycle and recover all the plastic and managing them which will help in reducing their impact on environment. Tesco should focus on reducing use of plastic where possible such as reducing its use in packaging of wine and paper could be used to accomplish task. Under reuse, company should focus on creating innovative products form plastic bags. Company should introduce technique which could help in recycling plastics (Gilg, 2019). Once recycle and reuse process has been carried out company should focus on using plastic in generating energy which could be useful in providing energy to industrial and power plant. Further, silicon lid could be used in preserving food instead of plastic which will helpful in improving the condition of environment. Beeswax is substitute of plastic that company could use variety of ways which include, candles, ornaments, home care products and cosmetics.

• Using less carbon emission vehicles: In above discussion it has been identified that transportation facility of Tesco is creating pollution in country. Company should focus on replacing its existing vehicles with electric vehicles which will lead to reduction in amount of carbon emission in country. Transportation through plain is major reason behind creating pollution in country (Haseeb et al, 2019). Tesco should use trains in transporting their product where possible which will help in reducing level of pollution in country. Company should aim at introducing electric van to deliver their product within UK which will be cost effective for company and help in maintaining quality of air in country.
• Introducing effective waste management: Tesco should use Varity of measures which will help in improving their efficiency in waste management. Company should manage their waste by donating perishable goods to needy which will help in fulfilling their needs. This will improve the image of company and help in effective management of waste. Waste which has been remained after distributing to them should be used to feed animals (Hashim et al, 2021). Over production is root cause behind excess waste, to deal with this Issue Company should be in direct contact with supplier which helps in identifying appropriate solution. Adequate inventory management process should be carried out by company which helps in determining the appropriate amount of product which company will need. This in turn helps in solving the issue of over and under production. There are various techniques available which could be helpful in converting the waste into organic fertilizers. Tesco should use this method to convert waste into fertilizers which could be used in agriculture.
• Effective Corporate social responsibility: Tesco should focus on increasing its investment towards corporate social responsibility. This will help in enhancing brand recognition and increasing reputation of company (Kedzierski et al, 2020). These will eventually lead to increase in sales and profitability of company. Tesco should form clear and transparent contract with supplier which will help in determine the actual price for their product. This will enable supplier to claim on Tesco regarding due of their payment. Tesco should focus on providing appropriate environment to their employees which will help in improving their satisfaction. Various educational programs should be initiated by firm which will help in improving reputation and goodwill of company.
• Improving sustainable supply chain: Tesco should focus on supply chain management by adequate forecasting regarding demand and supply of the products. Company should carry out research to identify the sources form where the raw material has been procured. This will help in determine the sustainability of raw material and help in taking appropriate measure to improve sustainability. For achieving sustainability in supply chain company should focus on fulfilling social, environment and financial responsibility. This include following proper labor laws and fulfilling all right of employees which will help in fulfilling moral expectation of employees (Kusi-Sarpong, Gupta and Sarkis, 2019). Under financial responsibility company should focus on providing accurate wages to employees and timely payment to their supplier. This also includes placing right price of product for customer and should compliance with financial regulation and laws. To fulfill environment responsibility, company should focus on identifying measures in production which will decrease carbon emission and help in reducing impact on environment.
• Adopting vertical framing: For reducing use of water, company should focus on procuring goods from vertical farming. It has been identified that vertical farming leads to reduction in need of water by 250 times than in traditional farming (Minelgait? and Liobikien?, 2019). This will also help in creating new employment opportunity in country and provide high quality product to customers. Company should focus on increase life cycle of perishable goods which will help in reducing food waste. Company should introduce selling unwashed potatoes which will help in extent their life cycle by 3 to 4 days which will led reduction in wastage.

Recommendations

Based on above solution there are various recommendation that Tesco should implement in their company which will help in attaining sustainability (Mir, Cheema and Singh, 2021). Some of recommendations which company should implement in their organizations are as follows:

• Research and development program should be conducted by company on regular basis which will help in identify various alternatives that are sustainable for environment.
• 4R strategies should be implementing in country which will help in reducing waste and increase productivity.
• New and sustainable materials should be identified for packaging which will reduce use of plastics in organization. Beeswax material should be used in place of plastic for preparing cosmetics and ornaments.
• Tesco should paid focus on carrying out corporate social responsibility which will help in improving reputation and goodwill of company (Raut et al, 2019). This will help in improving satisfaction of supplier and stakeholder leading to higher productivity.
• Firm should paid focus on eliminate fuel based vehicle in transporting goods which will lead to reduction in pollution. Electric vehicles should be substitute with traditional vehicles which are more sustainable for environment.
• Effective and adequate waste management system should be introduced in company that will help in reduce waste and cost of firm operations.
• Company should focus on procuring goods form vertical farming which is requires less water and more efficient method than traditional farming. To reduce waste company should focus on finding measure by which life cycle of perishable goods could be improved.

CONCLUSION

It has been concluded from report that each firm should focus on maintaining sustainability in their operation. This will help in improving reputation and goodwill of organizational which led to enhance profitability and sale of company. It has also been identified that Tesco is using high amount of plastic in their packaging which is impacting environment. The transportation which has been used by company is fuel efficient which creates high amount of air pollution. Company is not having effective waste management system that creates negative impact on environment of country. Various solution and recommendation has been provided in report which will help in achieving sustainability for firm. Conducting research on timely basis and implementing 4R strategy in company will help in maintaining sustainability in firm. Electric vehicles should be used to transport goods and beeswax material should used to reduce use of plastic in company.

References

Books and Journals

• Ali, S.S., Elsamahy, T., Koutra, E., Kornaros, M., El-Sheekh, M., Abdelkarim, E.A., Zhu, D. and Sun, J., 2021. Degradation of conventional plastic wastes in the environment: A review on current status of knowledge and future perspectives of disposal.Science of The Total Environment,771, p.144719.
• Baldassarre, B., Konietzko, J., Brown, P., Calabretta, G., Bocken, N., Karpen, I.O. and Hultink, E.J., 2020. Addressing the design-implementation gap of sustainable business models by prototyping: A tool for planning and executing small-scale pilots.Journal of Cleaner Production,255, p.120295.
• Chng, P.C., Cheah, J. and Amran, A., 2021. Eco-innovation practices and sustainable business performance: The moderating effect of market turbulence in the Malaysian technology industry.Journal of Cleaner Production,283, p.124556.
• Chen, H.L., Nath, T.K., Chong, S., Foo, V., Gibbins, C. and Lechner, A.M., 2021. The plastic waste problem in Malaysia: management, recycling and disposal of local and global plastic waste.SN Applied Sciences,3, pp.1-15.
• Das, S., Lee, S.H., Kumar, P., Kim, K.H., Lee, S.S. and Bhattacharya, S.S., 2019. Solid waste management: Scope and the challenge of sustainability.Journal of cleaner production,228, pp.658-678.
• Dijkstra, H., van Beukering, P. and Brouwer, R., 2020. Business models and sustainable plastic management: A systematic review of the literature.Journal of Cleaner Production,258, p.120967.
• Gilg, J.Y., 2019. Richard Baker: Small Steps, Big Ambitions.Solic. J.,162, p.48.
• Haseeb, M., Hussain, H.I., Kot, S., Androniceanu, A. and Jermsittiparsert, K., 2019. Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance.Sustainability,11(14), p.3811.
• Hashim, M., Nazam, M., Abrar, M., Hussain, Z., Nazim, M. and Shabbir, R., 2021. Unlocking the sustainable production indicators: a novel tesco based fuzzy AHP approach.Cogent Business & Management,8(1), p.1870807.
• Kedzierski, M., Frère, D., Le Maguer, G. and Bruzaud, S., 2020. Why is there plastic packaging in the natural environment? Understanding the roots of our individual plastic waste management behaviours.Science of the total environment,740, p.139985.
• Kusi-Sarpong, S., Gupta, H. and Sarkis, J., 2019. A supply chain sustainability innovation framework and evaluation methodology.International Journal of Production Research,57(7), pp.1990-2008.
• Minelgait?, A. and Liobikien?, G., 2019. Waste problem in European Union and its influence on waste management behaviours.Science of the Total Environment,667, pp.86-93.
• Mir, I.S., Cheema, P.P.S. and Singh, S.P., 2021. Implementation analysis of solid waste management in Ludhiana city of Punjab.Environmental Challenges,2, p.100023.
• Raut, R.D., Mangla, S.K., Narwane, V.S., Gardas, B.B., Priyadarshinee, P. and Narkhede, B.E., 2019. Linking big data analytics and operational sustainability practices for sustainable business management.Journal of cleaner production,224, pp.10-24.
• Sánchez-Flores, R.B., Cruz-Sotelo, S.E., Ojeda-Benitez, S. and Ramírez-Barreto, M.E., 2020. Sustainable supply chain management—A literature review on emerging economies.Sustainability,12(17), p.6972.
• Online
• Annual turnover of Tesco. 2022. [Online] available through :< https://www.statista.com/statistics/490931/tesco-group-finance-revenue-united-kingdom-uk/#:~:text=In%20its%202022%2F23%20financial,to%20the%20prior%20financial%20year.>
• Unsustainable Act done by Tesco. 2021. [online] available through :< https://www.mightyearth.org/2021/07/28/tescos-new-meat-procurement-policy-underdone/#:~:text=Supplier%20impunity%20on%20deforestation&text=In%20particular%3A,supply%20chain%20complicit%20in%20deforestation.>
• Importance of sustainable operations in organization. 2023. [ Online] available through :< https://www.wrike.com/blog/sustainable-operations-strategy/#:~:text=It%20has%20become%20an%20integral,and%20minimize%20their%20carbon%20footprint.>