Ref: Sustainability Methods
Sustainability in an organization is the durability of policies, processes, methods and systems in the organization. The main objective of sustainability is sustainable development. Sustainability is, therefore, the key objective of many firms. It ensures the firm achieves the long-term objectives. Rotary international is an organization that operates across the globe and employs sustainability as a key factor in its operations. Different factors have thus affected the sustainability process of the Rotary international.
The relevance of mission and vision to the sustainability of the organization
Mission and vision statements of an organization play a significant role in the success of a company. The mission and vision statements of the company help the stakeholders of the specific company to develop values that are significant to the operations of the organization. The mission statement helps to define the business, the products, services and consumers of the company's products. The mission statement also enables the organization to differentiate itself well from its competitors. It stipulates what the company does, the benefits of the company's activities.
The vision statement of the company describes organization's future of the firm attains its mission. The vision statement always contains realistic and attractive factors to the company in the future. This, therefore, boosts the morale of the various stakeholders in the company (Epstein, 2014). This enables the firm to develop standards for excellence and improves the productivity ratio in the company. The vision statement, therefore, provides the different tools required for the production process of the company. Mission and vision statement of the organization, therefore, provides the desired and recommended forms of behavior in the company. This helps eliminate miscommunication and misunderstanding in the company. This also results in the creation of the professional and ethical conducts in the firm. Therefore, mission and vision statements in the organization provide values and norms in the firm such as honesty, integrity, respect and professional working environment. This enables the company to be very competitive in the market and to enjoy the competitive advantage in the market. The company, therefore, is able to continuously satisfy the customer needs in the market. This improves the sustainability of the organization in the long term.
Methods for Measuring and Monitoring of Sustainability
Measuring and monitoring the sustainability process of the organization is critical to the development of the organization. Different metrics are used by the organization to measure the sustainability of the company. These metrics include sustainability of the environment, social and economic factors of the organization (Bell, 2013).The measurement of sustainability process involves conclusive audits, assessments, appraisal and various reports that are analyzed in the company. The best methods for measuring sustainability in a company include corporate sustainability reporting, the triple bottom line and the environmental sustainability index. The consumption and the production of the various products in the company help in effective measuring of the sustainability level of the company. Different tools are used in monitoring the sustainability process of the company. For a company to register great profits in the long run sustainability of the various activities in the company must be sustained in the long run. This enables the company to develop a strong relationship between the company and the final consumers of the company products.
Benchmark is used in measuring the sustainability of the company's activities. A benchmark is a location of reference for measurement. This enables the company to always measure the trends and progress of the different operations of the organization. Statistical data is recorded in the company to enable the location of the benchmark point in the organization and to assist in measuring the sustainability level in the organization (Ciegis, 2015).A sustainability index is registered in the company to assist in the measuring of the sustainability of the organization. A sustainable development index is also used in measuring the sustainability of the company. The sustainability indices of the company include the corruption perceptions index, the democracy index, environmental performance index, education index and the revenue formation index in the company.
Sustainability auditing and reporting are employed in the organization to assist in the monitoring process of the sustainability of the organization. Auditing of the various activities in the company is conducted using the triple bottom line accounting technique in the organization. This also involves the feasibility study and the auditing of the accounting and financial reports of business which are important in the sustainability of the firm. This has enabled the organization to measure and monitor the sustainability of the organization.
Type of changes the organization could experience
Different factors affect the sustainability of the organization. Various changes in the organization affect this process. These changes include the changes in the management, financial changes, environmental factors, changes in competition level and the changes in the social factors in the organization. Occurrence of these changes in the organization significantly affects the sustainability of the organization. These factors affect the entire operations of the organization and should be critically analyzed.
Internal and Global challenges that affect sustainability
Sustainability of an international company involves different factors that the organization must analyze and determine an effective solution. Both internal and global factors affect the sustainability of the organization. Internal factors such as the level of coordination in the firm, a rate of the corporation in the company, the distribution responsibilities and the commitment of the company's stakeholders to the sustainability of the company are very common. The coordination of the company's activities by the management determines the extent of operation in the company. This depends on how the various stakeholders in the company corporate with the management of the company. The distribution of responsibilities is done on a free and fair basis to ensure the sustainability of the management and all the activities conducted in the company.
Different external factors such as the competition level in the market, the tax rate, global restrictions and regulations in the international market affect the sustainability of the company (Carroll, 2014). The operation of other firms in the market producing same products affects the operations of the organization in the market. The tax rate put in place by the government determines the rate of production in the firm. The global regulations affect the entry of the organization in the foreign markets. These factors affect the entire operation of the business. The management of the company must, therefore, weigh both the internal and global challenges that the organization faces before deciding on the appropriate sustainable changes in the organization.
Financial tools that support triple bottom line concept
Triple bottom line method of accounting involves three factors which include social, environmental and financial. The company employs triple bottom line technique to help in the evaluation of the sustainability of the organization. The bottom line technique involves the recording of the revenue and expenses and profit and loss of the organization. This, therefore, entails the use of cost accounting and the cost-benefit analysis by the firm. Various financial tools are used in triple bottom line method. These include the formulation of the full cost accounting, natural capital, social capital, balance sheet and the income statements. Triple bottom line ensures the organization is committed to the corporate social responsibility. It enables the company to ensure achievement of the corporate social responsibility by employing the top level CEO, investment policies and reporting techniques. Triple bottom line ensures that the responsibilities of the organization are controlled by the stakeholders and not shareholders. Triple bottom line method ensures the organization registers the high level of profit in the market. It ensures the company develops different fiscal policies and monetary policies that enable the company to maintain and promote sustainability of the organization (Anderies, 2013).
Recommendations
The organization operates in a fully competitive market. This enables all the competitors to access the perfect information about the market. There are also no transaction costs involved in the market and thus, the level of participation and competition in the market is significantly high. The organization should, therefore, pursue changes in the environmental, financial and managerial factors of the organization. The effective handling of the environmental, financial and management factors ensure the company's level of production is high. This enables sustainability of the operations of the organization.
References
Anderies, J. M., Folke, C., Walker, B., & Ostrom, E. (2013). Aligning key concepts for global change policy: robustness, resilience, and sustainability.Ecology and society, 18(2), 8.
Bell, S., & Morse, S. (2013). Measuring sustainability: Learning from doing. Routledge.
Carroll, A., & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.
Ciegis, R., Ramanauskiene, J., & Startiene, G. (2015). Theoretical reasoning of the use of indicators and indices for sustainable development assessment. Engineering Economics, 63(4).
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
