Management Critic for Beyond The Green Corporation

            Beyond The Green Corporation was an article written for Businessweek Magazine.  It is about the significance of sustainable development to the success of leading giant corporations.  As stated in the article, sustainable development is “meeting humanity’s needs without harming future generations.”  Unilever was first introduced on its leadership role for sustainable development and examples were given on how the company helped nations “wrestle with poverty, water scarcity and climate change.”   More and more CEOs of giant corporations slowly geared into long-term profitability goals based on sustainable development.  To measure a corporation’s sustainability,  an institution called Innovest helps to research, assess and advise on a corporation’s sustainable performance.   It gave comparisons on corporations that followed sustainable development and those who didn’t.  It listed the world’s “100 most sustainable corporations,”  among them were: General Electric Company, Wal-Mart Stores Inc., GlaxoSmithKline, and Dow Chemical Company.”  It was notable that these corporations have production procedures that can be harmful to the environment, but were able to land in the top 100 most sustainable corporations.  This just means that these corporations were able to see sustainable development as a marketing tool too.  The aim for sustainable development wasn’t easy and a lot of corporations fail because of poor management and “weak leverage to make an impact.”  Corporations generally have low common stocks because of sustainable development, but Innovest saw the significance of it when the performance of intangible assets of other institutions without sustainable development were compared.  A double A score (AA) is said to have the highest investability quality of a corporation due to its sustainable development.  This rating attracts more investors to a company, thus, raising  the company’s valuable stocks.  This should not, however, be the only basis of investors to determine the life of a corporation.  The performances and nature of business are important too.  It  is significant for investors to look for the corporation’s life based on it’s projects for sustainable development.  If the cause for doing the projects work well with the company formulating it, then the company is said to have a high rate with Innovest.  (Engardio, P et al. 2007).

            Management tactics and strategies resulted in corporations’ sail to sustainable development.  As defined by Krietner, management is “the effective and efficient use of limited resources.”  The world changes constantly and in order to make the corporation survive for a very long time, proper management is indeed, important.  Most corporations geared into “environmentalism” to make the business cope with the changing environment and survive a long time.   Wal-Mart, for example, only sells products of suppliers that operates with environmental care.  They sell Love,Earth jewelries, and the minerals used to make jewelries came from an ecological leader too called Newmont The Gold Company.  The key aspects of management process were clear with companies geared into sustainable development.  Management had to “get the most out of limited resources, work with other people like employees within the organization, and balance effectiveness and efficiency in order to achieve organizational objectives.”  (Kreitner, R. Ch 1.)  It is also important to recognize this management strategy stated in Fredrich Taylor’s operational approach for scientific management.  He stated that work practices and methods should be standardized “to reduce waste and increase productivity, study the time and task of workers’ efforts to maximize productivity and output, there should be systematic selection and training of workers to increase efficiency and productivity, and differential pay incentives should be given to employees based on established work standards.”  (Kreitner, R. Ch 2.) These specific tasks were practiced by the stewards of sustainable development.  Major changes should always be  anticipated especially that the “twenty-first-century workplace” is radical and fast-paced.  That’s why corporations that aimed to survive  very long in the industry realized the need for “innovation.”  (Kreitner, R. Ch 3.)

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            The article mentioned that the low common stock value of companies were due to its sustainable development strategies.  I believe that the cause of an organization, or what the article called “intangible assets” are major factors to a corporation’s long life.  (Engardio, P et al. 2007)  For example, Wendy’s and McDonald’s were compared.  McDonald’s had obviously reaped tonnes of sales continuously, unlike Wendy’s.  Wendy’s omitted trans fat from their meals, which means that they’re serving healthier food.  McDonald’s however hasn’t omitted trans fat from its meals because they’re generating a lot of sales anyway.  Innovest analyzed that McDonald’s may be reaping a lot of sales right now, but the world continuously change.  In the future, McDonald’s sales might not be the same anymore as more and more restaurants like Wendy’s gets favored by consumers for the healthiness of their food.  I noticed that companies practicing sustainable development have lower stocks, but it is commendable.  It just showed these companies’ integrity and value for the world.  If companies continue to rape natural resources for huge profit, then there’s no guarantee that sales might be the same in the future, because natural resources would’ve been depleted by then.  There are of course, obstacles in sustainable development.  Accidents are inevitable, especially if the nature of business was basically dangerous.  This should not stop a corporation from performing its duties and responsibilities to attain sustainable development.  If I were to invest, I will aim for corporations that can survive in the long run, because intangible factors greatly influence my choice to invest in such companies.  I just thought that companies with social and environmental awareness will surely survive the changing world.

Works Cited

Kreitner, Robert.  “Management, 10th ed.”   Boston: Irwin/McGraw Hill.

Engardio, P., Capell, K., Carey, J., Hall, K.  2007, January 29.  “Beyond The Green Corporation.”     p. 50.  September 10, 2008.              []


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