Sustainability Report: FIA Formula E Hong Kong
Introduction
In the modern business world, the issue of sustainability has been a major concern owing to the increased need to ensure environmental conservation. This has been amidst the need to lower costs for the purpose of improving profit and meetings the varying needs of different stakeholders in the business. Moreover, individuals, business organizations, and governments have continually prioritized the economic, social and environmental sustainability of business over any other business goals (Sebastian, 2015). Notably, sustainability has gained importance in the wake of various economic and ecological challenges. Traditionally, corporations around the world have merely been legal entities and have been focused on achieving a narrow range of goal such as profit maximization or beating the market/industry competition (Heinberg and Lerch, 2010). The evolution of corporations characterized by the globalization of companies, liberalization of business transactions and environmental concerns has led to the increasing need for businesses to employ sustainable strategies in management.
Apart from the financial implications of lacking a sustainable business management system, social and environmental factors also play a major role in this aspect. Environmental challenges refer to the burden that businesses have placed on the ecosystems. On the other hand, social problems refer to the hard task that companies face to win the support of the society in which they operate (Garcia-Valle & Lopes, 2012). As such, this is because for organizations to be successful, it is imperative that they establish positive relationships with the surrounding communities. Closely connected to this is the need for business to create a good rapport with their business stakeholder including suppliers, creditors, customers and distributors among others. The consideration of these business and organizational factors is a fundamental step in enhancing business success in the short and long term. As such, it is vital that organizations employ sustainable strategies in the management to ensure the sustainability of their success (Opeyemi and Olatunde 2013). In this light, this report aims at demonstrating some of the concepts that FIA Formula E Hong Kong can apply to be more sustainable. Notably, the business stakeholder theory will be applied in showing how the corporation can adopt more sustainable business strategies.
Brief overview of FIA Formulae E Hong Kong
FIA Formula E is an organization engaged in the sports and entertainment industry, combining the thrill of motorsports and entertainment. The company gained the interest of many and now has fans from around the country and a large following in Hong Kong where it was founded. The organization acknowledged the need to ensure sustainability in the industry by producing a car that has no noise with zero emission and uses glycerin fuel thyat is recyclable (Formula E, 2016). Unlike other motorsports events and companies, Formula E showcases electric vehicles in their races with the goal of educating the public on the need to employ environmental sustainable solutions in the industry (Haynes, Murray and Dillard, 2013). The establishment of the organization was based on core values that highly acknowledged the need for environmental conservation. Below is a discussion of the relevance of sustainability as it relates to companies situated in the hospitality and events industries.
Relevance of Sustainability in Business Management in the Hospitality and Sports Industries
The growth in popularity of both the hospitality and the sports industries around the world means that the two will be a fundamental part of the future’s economy. For example, currently, with the development of local, domestic and international tourism, there is a need for the establishment of more hotels to harbor the vast number of travelers from different destinations around the world. On the other hand, the growing number of youth population around the world has led to companies developing various youth related sport and entertainment activities which is the case with FIA Formula E Hong Kong (Eweje and Perry, 2011). Traditionally, hotels have continually searched for ways to reduce the consumption of certain resources like water and energy as well reducing their impact on the environment. This has always been an issue and has even prompted the involvement of the consumers in the hotel industry to combine efforts with the management to ensure sustainable use of resources.
The central idea in this case is that with the growth in the hotel and sports industry, the challenge of sustainable use of energy, water among other resources pertinent to the industries will provide an even bigger challenge. As such, it is paramount that leaders in the hotel and sports businesses continually look for different ways and models to enhance the sustainability of their organizations.
Concepts and Theories of Sustainability
It is important to understand the meaning of sustainable business management as it related to the hotel and sports industry. Sustainable management refers to the adoption of strategies in business operations that help a company achieve its current needs without compromising its future goals. Further, it also focuses on the ability to the future generations’ to achieve objectives within the same scopes. For example, excess or unlimited use of water and energy resources could lead to the depletion of the same resources. This would, in turn, make it difficult for the survival of hotel businesses in the future and the main adversaries would be the future generations (Haynes, Murray and Dillard, 2013). Governments and environmental protectionist have increased pressure on the latter to adopt sustainable methods in their service offering.
The theory of sustainability focuses on integrating economic, social-cultural, ecological and political problems in business management. It provides models in which businesses and organizations can adopt in ensuring the sustainable use of various resources such as water, energy and the environment. In this case, sustainable use refers to the calculated use of resources to ensure their availability in the future (Eweje and Perry, 2011). The main pillars of the theory of sustainability are social, environmental and economic spheres which are considered the most important to protect to ensure that they are not interfered with to a level that future generations would not enjoy the same. At the same time, conservation of each of the aspects of the sustainability theory is extremely useful in ensuring the continued development and growth of the hotel and sports industries in question. Social and environmental issues come out conspicuously in the hotel and sports industries, which are also the case in other sectors (Lockyer, 2007). As such, this has led to companies develop models and strategies to operate their businesses in a way that they do not interfere with the environmental and at the same time increase the level of social welfare on the communities they operate in.
For example, by manufacturing electric cars, FIA Formula has supported the global efforts to reduce the level of environmental impact that has been caused by use o petroleum based vehicles. Socially, the company has helped raise the awareness of the need to conserve oil resources and environment through the use of more environmentally friendly energy sources (Garcia-Valle & Lopes, 2012). In this way, the sustainability theory is crucial to the hotel and sports industries as it provides with models in which the latter can adopt in ensuring sustainable use of resources, reducing the level of environmental impact and ensure the social welfare of communities (Espinosa, and Walker, 2011). Although the approach is not very popular in the industry, it presents an innovative way that will be used as basis of research that will be used for future developments that will lead to the achievement of sustainability on the industry.
Developments in Sustainability
Sustainable development have been defined in many ways, but the most witnessed from of development in the subject is developments in methods that can be used to meet present challenges without interfering with the future generations ability to meet the same needs (Espinosa and Walker, 2011). Several corporations around the world have taken the challenge of ensuring their future sustainability while at the same taking the main lead in an interest of the larger goals of social, economic and ecological needs. Some of the most common developments in sustainability efforts of business organizations have been within the area of corporate social responsibility (Eweje, and Perry, 2011). Corporate social responsibility (CSR) refers to all organizational efforts and innovations directed towards ensuring a more sustainable use of resources for their availability to the future generations.
The Role of CSR in Development of Sustainability
Some of the primary objectives of CSR include the development of the society so that it has the necessary infrastructure for economic, social, cultural and environmental development. Taking the example of FIA Formula, the organization has been on the lead in encouraging the conservation of the environment. For instance, the organization has been a on a drive aimed at ensuring the use of eloctronic driven F1 cars with the objective of enhancing environmental sustainability and conservation (Agars, 2016). By demonstrating how the use of the electric vehicle can be used in the same way as petroleum and diesels based engine motor cars, the events company has shown how alternative sources of energy can benefit the transport industry (Stefan et, al. 2002). In the present times, the transport sector has been affected by the fluctuations of oil prices in the world. The unpredictability and instability of the oil prices might affect the performance of companies in the sector and there is a need to develop sustainable strategies that will ensure success in the long run.
The leading cause of fluctuations in oil, the main source of energy for most transport sectors around the worlds is the threat of depletion of the oil resource. With this, the producers have discouraged large-scale purchase of the commodity by employing periodical price hikes. As a result, this has a direct impact on the transport systems as not all can afford high gas prices (Vaduva, 2015). As such employing alternative sources of energy such as electricity, it is possible to ensure a sustainable transportation for the future generations. Apart from this, CSR has been on the forefront of providing work opportunities for their neighboring communities. In so doing this the organizations helps provide financial resources to the members of the society, which is important in the development of the nation’s economy. Economic development and growth are imperative especially for the developing and underdeveloped economies in ensuring a better economic environment for the future generations (Heinberg and Lerch, 2010). At the same time, most corporations have helped provide important education to the public concerning the need for environmental protection. Environmental protection has been termed as one of the most critical needs of the society for the survival of future society.
Conserving the environment is important to ensure the survival of other species in the ecology that have economic, aesthetic and cultural benefits to the generations to come. One of the ways that organizations have helped conserve the environment for future generation is through encouraging and participation in protecting forests and other natural resources such as water bodies (Oluwafisoye and Akande, 2013). Concerning the case of our interest company, FIA Formula has contributed to oil resource conservation by developing and showcasing how electric energy can be used to substitute the use of oil in transportation industries. As such, this helps ensure the economic and environmental sustainability of the transportation industries for future generations (Haynes, Murray and Dillard, 2013). At the same time, it helps conserve the use of oil resources to ensure the commodity’s availability for the generations to come. According to Agars (2016) there is a need to adopt sustainability approaches in response to the increasing need to improve the deteriorating environment across the globe.
Another way in which companies have helped communities in conserving the environment is undertaking direct activities to educate the society on various ways of protecting their valuable resources such as water and energy. This direct education of the communities helps increase the level of national awareness of the need for and benefits of conserving various environmental resources. Notably, governments have taken a leading role in encouraging companies to develop innovative ways to ensure sustainable business ecology for the future society (Norton, 2005). The following discussion shows how other stakeholders have helped in emancipating public and private stakeholders in providing a sustainable social, economic and environmental environment for the future generation to enjoy the same benefits as the present generation does.
CRS and Business Ethics
This has a direct impact on the availability of the oil resource for future generations use as well as the reduction in the level of environmental destruction due to increased use of oil-based products in the transport sector. At the same time, companies have developed alternative ways of disposing of their wastes to reduce the level of environmental destruction by careless disposal of wastes. As such, employing business ethics in developing corporate social responsibility objectives is vital in ensuring the sustainability of critical resources. Organizations that are conserving the environment in the modern day are being seen as sustainable drivers of future growth. As such, FIA Formula E is being seen as a driver of sustainable growth in the industry.
Conclusion
Sustainable use of resources has become one of the primary goals of modern business organizations. They have achieved this by employing innovative ways to ensure calculated use of resources to ensure their availability for the future generations and industries. For instance, FIA Formula E Hong Kong, in demonstrating their electric motor car during various events can provide an important step in encouraging the use of alternative energy in the transport sector. Saving energy, especially with the development of the hotel and sports industry, is extremely vital in conserving the environment. This is because the hotel industry consumes a considerable amount of energy and water resources. As such companies have taken various steps to develop sustainability including the adoption of business ethics in delivering their social responsibility role to the society. This has gone a long way in ensuring the sustainability of social, economic and ecological resources.
References
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