Effect Of Sustainability Strategies To Companies Business Essay

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The chosen research topic is "What are the effects of sustainability strategies to multinational companies? An evaluation of strategic options, with particular reference to the big Turkish and global companies" and it is focused on sustainability policies, reports and comments created by MNC's management. This topic will prove the importance of sustainability for multinational companies.

Two important events are focal point to explosion of sustainability as a term, corporate sustainability, sustainable development and what kind of effects sustainability have on Multinational Companies.

From the researcher point of view, sustainability is to meet the needs of present generations without taking any risk from the future generations. On going for many years in the world summit on the agenda and this concept started to be implemented in all areas. In this research sustainability will be discussed at the level of business in other words corporate sustainability. According to companies, sustainability is considered as an additional element of costs that arise with the concept of environmental protection and today seen as an element of competitive advantage for the firms.

To make a difference in present day's competitive market conditions which requires quality conception, business enterprises self-denyingly choose to follow innovative approaches by getting free of traditional management methods. This awareness gives enterprises strength to survive in this hard competition. The sustainability policies help the organizations while achieving their targets. Ignoring the needs of society represents a significant risk in today's business world. Firms should believe that, as a cooperate citizen, their priority is to continue to engage in activities that conform to the principle of sustainability.

These conditions have conducted me to prepare an academic study about this subject and also help the current information by presenting a new perspective.

Why I choose this subject is to emphasize the importance of sustainability in today's competitive business world. Regarding to my past work experience, I had a chance to observe the importance of sustainability policies in many sectors. The circumstances make the sample thoroughly unique and convenient for the study.

1.2 Research Questions

What is the meaning of sustainability?

What is the importance of sustainability for people?

What are the corporate sustainability and sustainable corporation?

What factors affect the multinational companies sustainability policies?

What is the link between cooperate social responsibility and sustainability in Multinational Companies? The Coca Cola Company, Arcelik and Beko as a major examples.


Literature Review

Literature review is a part that we write for our project should therefore be a explanations and critical analysis of what other authors have written (Jankowichz 2005).The explanation was used as a modal during the arranging and investigating of literature review. By the definition during to study, the researcher noticed and focused some of the principle issues:


Sustainable Development

Multinational Company

Sustainability Policies in Multinational Companies

Company Implementations about Sustainability

2.1 Sustainability:

Sustainability has been identified as meeting the necessities of the current time without jeopardized the ability of next generations to meet their necessities.

In today's world there is a increasing consensus on the necessity for a sustainability. However the challenges facing our environment and humanity are growing rapidly. The natural resources of the world are under high pressure caused by human consumption.

However, sustainability is usually offered as a matter of common sense it is really more question of equity. Interest about sustainability must be depends on moral rules regarding future generations, not only for individuals self-interest.

2.2 Sustainable Development:

The degree of difference about values becomes apparent when you think another question: Are sustainability and sustainable development the same thing or are they different? This is a difficult question to have to ask. It seems obvious that they must be different because otherwise the word development would be entirely over.

According to Tim O'Riordan drew a distinction between sustainability and sustainable development. Sustainable development is a term that absolutely gave necessity to development, while the idea of sustainability was primarily about environment.

In other words for explaining sustainable development is an improvement that covers the needs of the current situation without jeopardizing the talent of next generations to meet their own needs. (Brundtland Report, WCDE 1987) This explanation point outs long term perspective of the notion of sustainability.

It includes two major points:

The understanding of necessities in specific essential needs of the world's poor, to which the most significant sequence of priority given,

The idea of limitations exposed to the state of technology and social organization on the environment's ability to meet present and future needs. (Dresner, 2009)

The aim of this research and the business point of view, sustainable development has a meaning that the acceptance of 'business strategies and operations that provide the needs of the entrepreneurship and its shareholders in current situation while conserving, supporting and enhancing the sources that will be necessary in the future time' (Brkic and Douglas,1997)

2.3 Multinational Corporations

A multinational corporation is a company that stables in one country, and establishes manufacturing processes in different country. Multinational Corporations are complementary part of the business commerce. In all over the world, preponderance of commercial activities occurs by Multinational Company's international transactions. There are 77,175 Multinational companies and 73,000 subsidiaries. MNC's transactions counted 48% of worldwide trade in 2007. Furthermore 40% of world business occurred between Multinationals subsidiaries. (Kegley 2009).

In other words, the term multinational corporation first appeared in 1960. Distinguishing between portfolio and direct investment, Lilienthal (1960:119) first used the term to refer to 'such corporations…which have their home in one country but which operate and live under the laws of other countries as well'. Two major features are associated with MNCs: first, their activities involve more than one nation; second they are responsible for most foreign direct investment (FDI).

In Our Common Future, (Oxford University Press,1987) the WCED recognized that the achievement of sustainable development could not be simply left to government regulators and policy makers. It recognized that industry had a significant role to play. The authors

argued that while corporations have always been the engines for economic development, they needed to be more proactive in balancing this drive with social equity and environmental protection, partly because they have been the cause of some of the unsustainable conditions,

but also because they have access to the resources necessary to address the problems.(Mel 2003) Over the past few decades, the role of multinational corporations (MNCs) in sustainable development has probably been one of the most controversial debates among scholars. This research examine sustainability policies in MNC because they are the main characters of business world. (Gafaru 2006)

2.4 Sustainability Policies in Multinational Companies

Sustainability cannot be ignored for management science. In strategic management concerns regarding SD are even more acute due to its integration into the general design of overall company policy. Sustainable development directions compose the corporate social responsibility and they both create the companies sustainability policies.

The number of scientific studies increases, abound among the main players in the economy that is multinational companies. These entities operate globally and they play major role in the design of sustainable development and corporate social responsibility policies. (Mclntyre,Ivanaj 2009)

Successful companies are those that plan for long-term, sustainable development, taking into account the social and environmental impacts of their activities. It means that thinking the effects of all part of the business on the environment and society. All resources can be failure and it exactly means that every business should have minimal negative effect on world.

Taking a sustainable approach should be good for all business. Companies may be think that this implementations have some costs in changing the way of the business operates. However these should quickly be outweighed by savings from resource efficiencies, energy savings and new business opportunities (WEB 1)

We can classify the benefits of sustainability policies in to three parts:

1. Cost Savings

2. Increased Efficiency

3. Improved Business and Social Credit

There are many benefits to using resources more. The company may have chance to cut costs, and minimise the impact their business has on the environment. Using resources and energy both costs for money for business and also it has an environmental impact. Reducing unnecessary use can help all businesses become more sustainable and improve profitability. For many businesses, energy use is one of the best opportunities to reduce costs. As the production and use of energy causes climate change, reducing energy use also reduces your environmental impact. For manufacturers, improving efficiency is a major opportunity. Sustainability policies provide to achieve all these goals for companies. (WEB 1)

2.5 Company Implementations about Sustainability

This research will be finalised with some MNC cases. In the first company overview, The Coca Cola Company will be examined. The first reason that The Coca Cola Company is selected in this research is I strongly believe that it is the unique and the most well-known company in all over the world. As the Coca-Cola System, they are aware of the importance of sustainability for them and for all business and environment. Regarding to my research, they have been working in that direction and sustainability is a part of every step they take. Second reason is 2009 was the year that The Coca Cola Company's long-existing sustainability work. (WEB 2)

Arcelik and Beko will be the second case companies. This study will examine how two largest Turkish rival companies in durable goods manufacturing industry perform sustainability. Turkish market is very attractive for white durable goods and electronic goods.

The main market players consist of both domestic and foreign brands as being Arcelik, and Beko. (WEB 3)



3.1. Research Design

Saunders et al. (2003) defines methodology as the supposition that indicates the way a research should be performed in order to realise the aimed purposes. While intending to reach the objectives of a research, methodology necessitates bringing out a theory and employing essential techniques to ascertain the proposition. Two philosophies are generally acknowledged in research literature, which are named as positivist and phenomenological philosophies.

According to White, qualitative research is a staple form of research of the social sciences, politics and economics, all subject closely linked with business. A quantitative research will be used for the dissertation research process that will help during the preparing of dissertation. Quantitative research method based on collection of facts and observable phenomena. Business researcher and manager use also quantitative method and that provide them more objective base (Whiter 2000)

The research process will be likely involves both quantitative a qualitative researches. In order to reach the aims and objectives, this research will collect and analyze both primary and secondary data.

3.2 Data Collection

As we know, the research uses multi-methods to collect data (i.e. questionnaire, semi-structured interviews and discussions, observation, and documentary analysis). There are two kinds of data sources used in data that are secondary and primary data. Primary data designed to understand and classify to problem from first hand

3.2.1 Source of primary data

Research work will be includes various interviews that are collect from various multinational firms. To identify and understand to sustainability process and importance will be various interviews will carry out with sector delegates.

3.2.2 Source of secondary data

There will be different source of books, newspaper, journals, online journals and articles in the dissertation. Secondary data is used in both descriptive and explanatory research and this data are used mostly in case study and survey-type research. (Kervin, 1999) In order to achieve the success of dissertation, all secondary data will gather from School of Technology and Management's library, London School of Economics (LSE) Library, British Library, include text books, newspaper, journals and internet refer to literature review.

In addition, others information sources refer to case study of multinational firms such as The Coca Cola Company, Arcelik, Beko, Unilever, PWC websites and internal documents, other journal article and newspaper.

Some of the books to planning to search during the research process:

Hill C.W. L. (2008) Global Business Today, Mc Graw Hill, 5th edition

Daniels D. J ,Radebough L. H., Sullivan P. D(2007),International Business Environments and Operation,11th edition, Prentice Hall

Dolfsma W., Duysters G., Costa I. (2009) Multinationals and Emerging Economies, The Quest for Innovation and Sustainability, Edward Elgar A Family Business in International Publishing, Innovation Co-Operation and Development

Mclntyre J. & Ivanaj V. (2009) Multinational Enterprices and the Challenges of Sustainable Development

Dresner S. (2009), The Principles of Sustainability, 2nd Edition, Earthscan Publishing,

Dunphy D., Benveniste J., Sutton P., (2008), Sustainability- The Corporate Challenge of the 21st Century, Allen Unwin Publishing

Mead R.(1998) International management,2nd edition, Blackwell Business

Collinson S. & Rugman M. (2006), International Business,4th edition, Prentice Hall

Tayeb M, (2000) International Business, Theories, Policies and Practices, Prentice Hall

Some of the online newspaper and magazines sources

Financial Times

The Economist

New York times

The Times

British library online newspaper archive

3.3 Face to face interview method

This method will be based on face-face interview methods using to paper questioner. They can be used in variety of contexts and situations and in conjunction between other methods (Whiter 2000). As all interviews will be held with relatively senior members of staff, access is not an important issue. I have already had an interview with one of senior staff and managers from each companies and they informed me that they are flexible and willing to provide me all the details that I will need during the research. This is promised by them with word of mouth and e-mail.


This research proposal has been written to give ideas how dissertation research will be doing. The study will be useful to understand sustainability and the major sustainability implementations in multinational companies. The result of this research will help to understand every step of sustainability in multinational companies process.