Sustainability of Apple Inc †Background & Sustainability Area

Question: Discuss about the Sustainability of Apple Inc. Answer: Introduction Sustainability is defined as the capability of an assignment to uphold its services, operations, and reimbursement throughout its predictable existence. However as mentioned by Ghisellini et al.,(2014), the concern of sustainability must be seen within political, economic time and changing and social contexts. A project that looks like sustainable now may not be so in the future. The biggest exemplar of such project is Paddy Production of Sri Lanka. It created the foundation of the agricultural economy few years back. However, now it is not profitable at all under the current economic condition of the market. In order to develop sustainable projects, a new aspect of sustainability was introduced which is known as Sustainability Monitoring. Sustainability monitoring which is also called as sustainability evaluation, as soon as a project goes into implementation, comes into play. A lot of people call this evaluation method as a process evaluation and few people call it as a assessment and result-based monitoring. Sustainability monitoring method can help an organization to track problems related to sustainability in initial stages. Besides, it will also provide essential advice for modification which will enhance the prospects of sustainability. In order to monitor sustainability some indicators were developed. According to Singh et al., (2014), Astleithner narrowed down indicators and divided into two parts which are quantitative and qualitative. These two indicators put more emphasis on linkages across dissimilar sectors. However, ecological and financial indicators are still used as sustainability indicators by means of combination. However, as mentioned by Hjorth and Madani (2014), the different indicators for different sustainable dimensions are more suitable to monitor sustainability in an organization. Different indicators for different sustainable dimensions are hereby mentioned in the table below. Indicators Characteristics Economy Rate of unemployment: It will be monitored by the proportion of green jobs in home economy and standard proficient learning years of employees. Economic Growth: It is monitored by growth rate of GDP per annum, growth rate of GNP per annum, Net Export Growth rates (percentage boost of a countrys total exports minus the price of its total imports per annum) and Foreign Direct Investments (Capital/Earning accrued from planned FDIs per year) (Rinne et al., 2013). Environment Green Spaces: It will monitor proportion of potted areas/ waterways/ reservoirs/ parks regarding the entire amount of land area Decrease the amount of Greenhouse gasses and energy efficiency: It will be monitored trough total quantity of GHG emissions per facility, per city and per capita and proportion of total energy inspired in the metropolis that comes from renewable sources (Waas et al., 2014). Quality of Water: It will be measured by the quantity of total amount of water, score or index of water quality and percentage of inhabitants with admittance to sufficient and safe consumption water. Waste management/Recycle management: It will be monitored by recycling rate (proportion abstracted from waste watercourse) and amount of firm waste generated. Social Contribution to the society/community: It is measured by the amount of assistance provided to the local communities and number of programs implemented to help communities in trouble. Education: It is measured by the number of training programs implemented by the management to develop the skills of the employees. Health: It is measured by the steps taken by the management to keep the workplace healthy and safe (Mascarenhas et al., 2014). Besides, in some cases, the quality of healthcare services provided by the organization is also measured to figure out whether the company is maintaining social sustainability or not. Company Background Apple is an American multinational technology organization that was established in the year of 1976 as a computer making company. However, in the past years, this organization has prolonged itself into an intricate corporation that innovates in much more that just computers. Apple broke the conventional barricade in the year of 2001 and invented iPod. This invention helped the organization to become a dominant market leader in music players industry. According to Sloan et al., (2013), Apple has made noteworthy labors in the field of sustainability since 2007. They have effectively detached toxic substances from their products and empowered their facilities with 100% renewable energy. However, as mentioned by Lozano (2015), Apple is still not the leader in provisions of sustainability and has to go a long way to become a sustainable organization. In Newsweeks 2011 Green ranking, three categories were considered which are environmental impact, ecological Management (such as controversi es, certifications, programs, initiatives and policies) and disclosure. Apple was ranked 50th in the U.S rankings of Newsweek. Worldwide Apple was ranked 117th as its green score was 65 out of 100. Apples uppermost score was 71 in environmental administration where it only scored 28 in disclosure (Perrott, 2014). Apple received several criticisms for its lack of coverage and tangible goals while emission lessening. According to Lozano, (2015), there are five phases of Dunphy model which are The sustaining corporation, Efficiency, Non-responsiveness, Strategic Sustainability, Compliance and Rejection. Currently Apple belongs to the fifth phase of dunphy model which is strategic sustainability. Mostly from 2013, Apple has made sustainability as an important part of the companys business policy. Currently Apple is using rational and social capital to establish strategic benefit through determined innovation in products and services. Several communities are positively influenced and assisted by the organization. Number of initiatives is taken into account to help and support communities in different countries. Several programs are instituted to hire best talent to the organization (Benn, 2014). Training and skill development projects are also there to develop high level of competence in individuals and groups. From phase 5 of dunphy model, Apple can elevate itself to Phase 6 which is The Sustaining Corporation. This is the ultimate phase where Apple will have to strongly internalize the philosophy of working for a sustainable world. In order to achieve this stage, Apple management will have to become an active promoter of ecological sustainability values. Besides, it will have to persuade society in general and key participants in the industry (Turcu, 2013). The management is developing and following some environmental initiatives to help keep environment safe and green. However, in order to elevate itself to Phase 6, Apple will have to execute best environmental practices. On the other hand, Apple will also have to use its influence strategies to endorse sustainability policies to the governments. Sustainability Dimensions The three proportions of sustainability are Social, Environmental and Economic. Maintaining social dimensions means developing products that can improve lives of people. In order to become a socially sustainable company, it is also important to assist communities in which we live and work. On the other hand, environmental sustainability demands that companies use possessions astutely, comply with rules and regulations and decrease the adverse impact of the products that are in use. Economic dimension asks an organization to become profitable and to make products that people want. Besides, it is also important to support communities by buying local supplies and services and by paying taxes in proper way. In terms of Social sustainability, Apples biggest achievement is its Global Volunteer Program that was introduced to motivate workers to volunteer in home communities. Besides, Apple has its own learning and enlargement program that is presented across 18 factories where more than 300,000 personnel took a variety of courses (Lal, 2016). Apple launched Apple Supplier EHS Academy, that is an 18-month course that helps to enhance health and safety of the employees right through the world. From various companies, nearly 250 suppliers and 250,000 workers participated in this program (Aagaard Lindgren 2016). On the other hand, software developers at Apple make more money than in any other company in the same industry. Software developers who made iOS apps have made more than $4 billion (Hollander et al., 2016). Software developers for Android app have made less than half a million. In the case of environmental sustainability, Apple has made a great improvement since the announcement of Newsweeks U.S rankings in 2011 where it was ranked 117th. Since 2013, Apples data centers run on 100% renewable power (Kay 2016). Three of the Apples data centers located in North Carolina, Oregon and Nevada gained leadership certification in Energy and Environmental Design (LEED) from the U.S Green Building Council. Recently, Apple joined hands with Duke Energy to establish a green energy tariff named as Duke Energys Green Source Rider Program. Through this program, Apple will be able to co-develop nearly six solar PV projects in North Carolina. Besides, from April 2016, Apple is using 100 percent renewable energy for their 463 stores in 14 countries (Hogevold et al., 2016). This renewable energy of Apple is produced by the organization itself by developing its own solar arrays, micro-hydro generation systems and biogas fuel cells. In order to reduce carbon footprint of the faci lities, the organization is discovering ways to reduce emissions from business fleet vehicles. Apple waste management team disposes hazardous waste responsibly. The management of the organization executed regular audits of the transportation, disposal and storage facilities (TSDF), where any kind of hazardous waste are sent to be incinerated, treated and recycled (Schoormann et al., 2016). Only the facilities that are approved by the management are allowed to accept and treat hazardous waste. Apple management is also working hard to minimize their water use. Use of water is monitored within their cooling, landscaping and cleanliness methods and at their production facilities. Then proper procedures are established to reduce it. For example, intelligent irrigation systems are installed that is capable of monitoring weather and deploy water only where needed. From 2015, Apple management has started to collect even more refined data in order to empower their conservation strategy. A team is deployed by Apple that begun to measure the amount of water which is required to manufacture the Apple products (Bocken et al., 2016). After measuring, now the organization is identifying the high, medium and low scarcity areas where water is used in facilities. It will help the company to focus their efforts where they matter most. Sustainability Area For this report, among three dimensions, environmental dimension is selected. Environmental Indicators and monitoring Indicators Methods to analyze Challenges Green Space In order to monitor and analyze this indicator, Apple will have to make sure that its facilities has ample amount of green places such as parks, where employees can enjoy their leisure. Apple facilities are already bigger than any other organization in the same industry. Developing new green area will become quite difficult for the organization in terms of money and free space. Reduce emission of greenhouse gasses/reduce carbon footprint Carbon Footprint software Implementation challenge Water management IWRM (Integrated water resources management) Implementation challenge Waste management Cradle to Cradle/Cradle to Grave Carbon footprint software can be used by Apple in order to monitor carbon footprint and emission of greenhouse gasses. This instrument leverages the information of the Carbon Trust to decrease both the time taken and price of evaluating the carbon footstep. Besides, it is intended in a way that it will fulfill the globally-recognized product carbon footprint standards, GHG Protocol Product Standards and the PAS 2050. It will help develop a framework, which enables primary data to be entered easily and quickly. It will include a huge record of secondary data that is submissive with the PAS2050 and GHG Protocol Standards (Andersson Ohman 2016). A set of calculators are also included in the system that are intended to reduce difficulty and guarantee constancy. Besides, a hotspot calculator is also added to evaluate a top-line footprint very quickly, without needing a comprehensive data-gathering process. The main challenge to use this software for monitoring process would the process o f implementation. Besides, Apple will have to again train its employees to use this software properly. Any mishandling will generate biased and inappropriate data which is extremely harmful for the organization. Sustainable water management can be monitored through IWRM that will challenge traditional and fractional water management systems (Morioka et al., 2016). It will put more emphasis on incorporated approaches with more synchronized decision making transversely sectors and scales. IWRM will help to achieve mostly three objectives which are, Effectiveness to make water resources go as far as probable Equity, in the allotment of water diagonally dissimilar facilities and factories Environmental sustainability, to save water assets base and related ecosystems According to Rajala et al., (2016), IWRM must be viewed as a method rather than a one-shot approach. However, there is nothing like perfect IWRM system. The entire process of IWRM is shown in the figure below. This is an effective process for water management. However, implementation of this method will not be an easy task. Management of Apple will have to spend a lot of money to develop a team to implement this method in the workplaces. Besides, the management will also have to change the entire existing structure of the workplace to properly implement this model which is quite impossible for Apple. Sustainable waste management can be achieved by using Cradle to Grave (C2G) systems or Cradle to Cradle (C2C). Cradle to grave system is known to explain the linear and in one direction flow of resources from underdone resources into waste, that needs removal (Bocken et al., 2016). On the other hand, Cradle to cradle system mostly puts more emphasis on developing industrial systems so that materials flow in a closed loop cycle. It means, waste products can be recycled easily. C2C system deals with the issues by addressing the problems at its source by re-defining the problem. As mentioned by Quigley (2016), the primary three tenets of C2C are use of solar income; waste equals food, and enjoying diversity. C2C also focuses on developing a technical metabolism that is called as a closed loop system where resources travel through cycles of construction, use, revival and remanufacture. There will be minimum amount of challenges for Apple in terms of Waste management. There will be minor issues when the management will implement this process. However, the organization will not have to change its current structure entirely for this new method. These steps and methods can be used by Apple to elevate themselves to the next phase of Dunphy model. However, in order to remain in the phase 6, management of the organization will have to keep using these methods and will have to keep the environment safe and secure. Conclusion In the end, it can be concluded that Apple initially was not famous for its sustainable operations. Its rival organizations ranked better than them. That was the time, when the management of the organization decided to bring change in its operations. Since 2013, the organization has made several successful efforts to improve its sustainability. In this report, the discussion is provided about Apples sustainability in terms of social and environmental. From the discussion it is seen that in both the dimensions that organization is performing extremely well. However, in this report, the complete focus has been given to the environmental sustainability of the organization. Currently, the organization is in the phase 5 of Dunphu model. However, it is possible for them to elevate to the next level. A complete list of indicators is provided in the assignment, though which Apple management can elevate the company into the next stage of sustainability. References Aagaard, A., Lindgren, P. (2016). Understanding and evaluating the levels of sustainability in business models over time and across dimensions.Long Range Planning. Andersson, P. hman, J, (2016). 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