Corporate Social Responsibility and Sustainability
CSR and corporate sustainability are concepts, which enable organizations to attain maximum ethical standards of economic, environmental, and social essentials addressing the concerns of its stakeholders both internally and externally. On the other hand, corporate governance offers avenues through which organizations handles its legal responsibilities. Through corporate governance, a firm’s foundation on CSR and corporate sustainability is built. The roots of CSR can be traced from the early 1950s for successful firms, which linked social obligation to business success. An organization social responsibility goes beyond its normal business compliance. The action of CSR goes beyond the interest of the organization and takes part in activities which are for the befit of the social good which are legal requirements (McWilliams, Siegel 2001)
There are four forces behind CSR, which are investor demand, consumer demand, government, and public presuure.CSR, corporate sustainability, and corporate governance are principles, which no single firm at this time in era can avoid. They have been incorporated to nearly all organizations across the globe and are part of the strategy for successful organizations. Sustainability does not only have a positive impact on the people or environment but also for an organizations survival and expansion. Many communities around the global are experiencing numerous issues like diseases and environmental threats among others. Most of these are issues, which firms have to take part in controlling so as to create a conducive and peaceful environment for, thrive. Through corporate governance, there is a balanced interest of all the stakeholders in a given organizations which are governed by set rules which is also important for the well-being of a given organization.
Al Ain Distribution Company ((AADC)
AADC is public stock joint company in the United Arab Emirates. It was created out of former water and electricity departments as the sole supplier and distributor of water and electricity in Abu Dhabi’s eastern Region. It also operates, maintain, and own electricity and water distribution assets. Its services revolve around customer billing, meter reading and supply services. Currently; it provides its services to an estimated 100,000 consumers thought the eastern region.
The organization has incorporated CSR. The significant segments of concern are employee wellbeing, community wellbeing, and environmental protection.
Currently, the organization uses over one million wooden poles in electricity supply and several steel electricity utilities. Both these products are environmental hazardous if not checked. The wooden utilities effects are felt during their manufacture, use, and disposal. These are some environmental aspects the company should keep in mind when utilizing these utilities. Wood treatment for instance creates more aerosols and greenhouse effects. They also have a higher carbon footprints compared to steel products. Wood products also affect some habitats for animal species thus creating flora and fauna disturbance. Printing of paper bills too is harmful to the environment through unchecked disposal of the papers.
The company also increases the health risks of its employees and community through its daily operations. Use of switchgears and transformers increases emission of SF6. The gas decomposes when placed under stress, which forms toxic byproducts. The toxic byproducts create a health hazard for employee and communities in case of any exposure. The pollution created is troubling since humans breathe in the polluted air. This might lead to various diseases connected to toxin emissions. The last aspect when considering environmental impact is oil leaks. The company previously used underground oil cables to transfer their goods from one point to another. Oil spill leads to the degradation of soil that reduces the fertility and use while increasing health risks.
Environmental business with regard to SCR and sustainability plans entails business practice standards, recyclability costs and assessments, and eco-labeling plans that have least effects to the business environment. Water and electricity companies are required to ensure goods like timber are acquired legally. The companies should make sustainability commitments by discerning their supplier choices. The organization should consider the consequences of using wooden poles on the environment compared to other types of utilities like steel. Emissions should be controlled through implementation of renewable energy sources including solar energy, wind energy, and water energy in several ways
The measures will benefit the organization and its environment thus bringing about the aspect of SCR and social sustainability effected through social governance. Renewable energy sources will not produce greenhouse emissions. Greenhouse gases and particles will not be emitted into the soil, water, or air. Without the emissions, the community will not experience hazardous climate change, diseases, or acid rain. The environment will also be protected for future generations when implementing renewable energy. Retrieving oil entails excavation while use of wooden poles entails deforestation. Implementing renewable energy sources ensures preservation of forests while land will not be damaged due to excavations. Adaptation of renewable energy sources will also offer various economic benefits. Renewable energy sources offer more employment opportunities when compared to current energy sources. Renewable energy sources entail solar, wind, and water. All these aspects will offer more employment opportunities to the community. Through use of renewable energy sources, the company will reduce costs based on oil research and the overall expenses will reduce. The future generation of the country will have unlimited renewable energy resources, which will reduce their costs of searching for other energy sources. This will have a both impact to both the organization and its environment.
Al Ain Distribution Company currently depends on oil to offer water and electricity services. As shown above the, the sources have various environmental consequences. The company should invest in renewable energy sources. Renewable energy sources will ensure unlimited access to energy while offering environmentally clean goods and services. The goods and services provided will also reduce the impact on the environment. The company should ensure the underground oil pipelines are removed or properly monitored to manage any oil leak that may occur. Wooden poles should be replaced with steel poles to reduce environmental degradation through deforestation.
Al Ain Distribution Company has a corporate social responsibility specifically in ensuring proper environmental conduct. Energy companies degrade the environment in various ways. The company uses wooden poles, which encourage deforestation. The company also uses SF6 gas in most of their equipment. Other substitutes have been created that will reduce greenhouse emissions when compared to SF6. As stated above, the company should implement other energy sources that will ensure similar productivity while ensuring reduced environmental impacts.
McWilliams, A,. Siegel, D,. (2001). “Corporate social responsibility: A theory of the firm perspective”. Academy of Management Review 26.