Consequences of Mandatory Corporate Sustainability

Question: Discuss about the Consequences of Mandatory Corporate Sustainability. Answer: Introduction: The Eagle Food is an Australian company that produces organic foods like cereals, dried fruits. The company also specializes in manufacturing and supply of wholegrain products, which includes Tortillas, chapattis, and other food retail service. The product line of the company can also offer the opportunity of private labeling that helps to manufacture the product according to the choice of the customers (Eaglefoodsaustralia.com.au, 2016). The packing process that is needed for these foods is one of the basic requirements to maintain sustainability in the process of business. The sustainability report of Eagle Valley Healthy Foods is intended to provide relevant information regarding the economic, social and environmental elements of the organization. Moreover, it helps to improve the level of commitment to manage organizational risks and financial performance of a company (Ioannou and Serafeim 2014).The sustainability in the business is one of the major responsibilities of all business organizations that help to improve the social reputation of the company (Falck and Heblich 2007). The Eagle Valley Food is located on the outskirts of the city of Perth, and the company has two major warehouses that are built using the corrugated iron material that results in the high temperature during summer and low temperature during the cold days. Hence, the company has to spend high electricity cost for maintaining proper temperature within the warehouse that will help to preserve the quality of the products. The managers of the company also reported that the company needs huge supply fresh water for the manufacture of the healthy bars, which is one the major area of concerns. The main purpose of the company is to focus is to meet the demand of the stakeholders by using the process of sustainable development. The company has successfully able to maintain a healthy environment in the workplace of the company. This has helped to increase the potential of the employees of the enterprise. The main issues that are faced by the company in sustainability issues as there is a significant rise in the demand of energy due to opening of new stores and the warehouses. The annual cost for the energy for the company during the years of 2012 and 2013 were 100 million and 120 million Australian dollars. However, the annual cost in 2015 has been reported to be 195 million Australia dollars. The main product of the company is foods that are healthy in nature. Hence, with the rise of health-conscious among the people of Australia, the company has been able to make improve the sell performance. Nevertheless, the company uses substances like polypropylene in the packing of the foods. According to Sun (2016), being a synthetic polymer, the polypropylene has the potential of UV exposure and harm the quality of food that as sold as processed items and thereby has adverse effects on the health status of the consumers. The company Conclusion: The Eagle Health Foods need to improve the sustainable plans of the company in order to maintain healthy reputation in the market and increase the financial performance of the company. As the demand for energy has gone up significantly, the company needs to incorporate the use of alternative non-conventional form of energy. The CEO of the company must install the solar cells in the warehouse of the company that will help to reduce the demand of the thermal form of energy. The materials that are used in the building the structure of warehouse needs to have the capability to maintain a fixed temperature for longer duration. The packing of the food is also the major area of concern for the company. The materials that are used in the packing of the food materials need to be of high quality and can be recycled, which will help in the conservation of natural resources. The use of bio-degradable and eco-friendly materials for packing will ensure that the nutritional values of the food that are produced by the company are maintained (Grnman et al. 2013). The CEO of the company will have to get the ISO certification in all the food packages and thereby help to gain the trust of the local consumers. It is the social responsibility of the company to follow the guidelines of sustainable development in order to protect the business environment. Reference Eaglefoodsaustralia.com.au. (2016). Eagle Foods Australia - Home. [online] Available at: https://www.eaglefoodsaustralia.com.au/ [Accessed 27 Nov. 2016]. Falck, O. and Heblich, S., 2007. Corporate social responsibility: Doing well by doing good.Business Horizons,50(3), pp.247-254. Grnman, K., Soukka, R., Jrvi?Kriinen, T., Katajajuuri, J.M., Kuisma, M., Koivupuro, H.K., Ollila, M., Pitknen, M., Miettinen, O., Silvenius, F. and Thun, R., 2013. Framework for sustainable food packaging design.Packaging Technology and Science,26(4), pp.187-200. Ioannou, I. and Serafeim, G., 2014. The consequences of mandatory corporate sustainability reporting: evidence from four countries.Harvard Business School Research Working Paper, (11-100). Sun, D.W. ed., 2016.Handbook of frozen food processing and packaging. CRC Press.