The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Solution

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The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Help

The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Help is a popular name of a New York based, world's leading organization in the food and beverage market. business is a leading brand in hassle-free treats, foods and beverages with its existence in about 200 nations.

The report contains a deep analysis of different aspects of the social obligations of major business in the food and beverage industry in basic, and Case Solution in specific. It also provides an analysis of the growing health and ecological issues consisting of weight problems, heart diseases, environmental devastation and so on in the Western nations and the role of the business in the food and beverage industry to attend to these problems. The report likewise offers an evaluation of the extent of sustainability and CSR in the The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Solution's business strategy along with the decision of how Case Study Help develops worth for its consumers. Additionally, the report also provides particular tactical options for Case Solution to include the criticism over its social obligation with certain recommendations and an execution strategy.

Issues Identification

Case Study Solution had actually taken particular crucial steps relating to the environmental effects of its products, but, these steps are not enough to end up the criticism over the business's duty towards social and environmental problems. This is needed to take certain strategic steps to alter the market position of its specific well-known brands and present Case Study Analysis as a company producing healthy items in the market. In this regard, company and other food and drink companies ought to utilize their power to shift the consumer taste towards healthier products to get rid of the constraints in the development of food market.

Critical Analysis

The shift from the usage of natural food to made food has extremely impacted the health of the customers. All of the data related to the health problems with the incorporation of produced food in the market explain the frequency of the health concerns related to food system. These issues are indirectly the outcome of different practices of the food and beverage companies for creating worth for their consumers.

Value Development at The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Help

The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Solution being a giant business in the food and drink industry, supplies high worth to its customers by various ways. Case Study Help has a competitive advantage in providing its products far and broad worldwide. The company is presented in about 200 countries with a large number of popular worldwide brands.

Furthermore, the company develops value for its customers by means of supplying a great deal of yummy foodstuff consisting of salt, fat and sugar, which are the ingredients that are directly connected with the emotional core of the consumer's brain. The The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Help together with other huge food and beverages companies produce value for its consumers by manipulating these components in its items. Case Study Help in addition to other huge business is interested in discovering ways to increase the consumer worth from its items through exploiting the vulnerability.

Along with it, the business likewise develops worth by methods of integrating the healthy point in its items. The company has done specific efforts in order to provide healthy items and reduce the share of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Analysis in total ecological destruction. Case Study Solution has taken certain steps associated with the sustainability of people and environment consisting of the 2009 announcement of the ambitious goals and commitments connected to Case Study Solution products, market and the neighborhood.

All of these methods have actually succeeded at developing worth for the business consumers. Nevertheless, these means have also result in the increased ecological issues and the criticism over the business's function in increasing health and environmental difficulties. The incorporation of components like salt, fat and sugar in the company items for developing customer value deals with high amount of criticism. These components are the primary reason for certain fatal diseases in human including weight problems, diabetes, heart problem etc. Increasing health associated concerns have raised the criticism for The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Analysis.

Constructive Role of Major Food and Beverage Companies in Dealing With Social and Ecological Expenses Related To the Market

Indeed, significant food and beverage companies including business, and so on can play a positive function in attending to social and environmental expenses connected with the industry. The environmental costs related to food and beverage market consist of the ecological devastation due to the increase of nitrogen which has actually resulted in the decreased water drinking patterns, river contamination, and increased emission of greenhouse gases from soil etc. All these factors results in ecological destruction which might be a big hazard to the existence of mankind in future.

Major cause of these environmental modifications is mass usage of nitrogen abundant fertilizers and the components by the food and drink business. For that reason, food and beverage business should play an useful function in dealing with these concerns to remove their development constraints associated with the criticism from the ecological communities.

The companies need to prevent use of nitrogen fertilizers and ought to search out the products of those farmers that do not utilize fertilizers for their crop. The companies might use renewable energy sources at their production plant to compensate the greenhouse gas emissions from the usage of nitrogen-rich items.

Along with the eco-friendly costs there are certain social costs associated with the food and drink industry which must be resolved by the giant food and drink companies to achieve the market development and to prevent the criticism from the ecological neighborhoods. Social expenses associated with the market includes the increasing health issues related to obesity, heart disease, diabetes etc. However, the huge companies could play a constructive function in resolving these concerns.

The business could move towards healthier items by decreasing the quantity of harmful compounds in their processed foods i.e. dioxin, which might lead to lethal human illness. Along with it, the business need to use more healthy active ingredients instead of derivatives of Corn and Soy to increase number of calories from their items. The companies could also do efforts to move customer tastes towards healthy products as they have actually controlled the consumer taste for couple of decades. In this way the huge food and drink companies could play a positive role in addressing social and environmental costs related to the industry.

Assessment of Sustainability at The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Analysis

There was a potential shift in the business strategy and goals at Case Study Solution. The brand-new CEO was focused on purchasing much healthier items for attaining sustainable growth for the business in addition to offering much healthier future for individuals and the world both. Under the new vision, the motto of the business was likewise altered from the "fun for you" to "better for you".

Human Sustainability

The company revealed particular goals and dedications connected to human sustainability and the environmental sustainability. The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Solution got Quaker Oats producing TrueNorth nut snacks and SoBe, and Naked Juice producing soy beverages and organic beverages to present different healthier items in its portfolio. Despite of being thought about a Case Study Analysis's healthy brand, the products of Quake Oats consisted of a number of ingredients which were dangerous to health. These harmful ingredients were not advertised which have actually become the base for criticism over the healthy brands of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Solution.

In addition to the inculcation of healthy brand names in its portfolio through acquisitions, The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Analysis has actually taken certain sustainability actions for its market places. Among significant examples in this regard is the Business's marketing method associated to schools. The business markets only low calories and healthy beverages options in schools.

Another action taken by Case Study Analysis towards human sustainability is the shift of its focus towards research and development for introducing new and healthy products in its portfolio. The company has increased its research and development budget plan and has introduced an army of health scientists to develop certain healthy products.

Environmental Sustainability

Together with the human sustainability, The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Analysis has actually taken several actions towards environmental sustainability. The company has actually devoted to various objectives related to water, land, product packaging, environment change and neighborhood. In this regard, the company devoted to lower its packaging by millions of tones to prevent high quantity of wastes. The business has committed to lower greenhouse gas emissions along with the achievement of effectiveness in the energy use. company has also attempted specific humanitarian activities consisting of a commitment to offer safe drinking water to 3 million people in establishing nations by 2015.

On the basis of above analysis, it might be figured out that the business has taken several actions towards human and ecological sustainability. These steps are still not adequate to achieve the desired commercial growth and to lower the criticism over the social responsibility of Case Study Solution.

Alternatives

Specific long term tactical alternatives could be derived for the company on the basis of above analysis. These alternatives can be evaluated on the basis of the reality that how the option would enable the company to achieve its goal of prospective growth and lower the criticism over the business. The options could be evaluated on the basis of the time frame that would be taken by an option to be carried out along with the cost and threats related to the option

Alternative-1: introduction of a New Product line Related to Healthy Foods and Beverages

The very first step that The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Help might take is to present a brand-new product line related to healthy food and beverages. The company must present a wide variety of healthier items by using its significant research study and development expenses.

Pros:

• Ability to target large number of consumers i.e. health mindful consumers.
• Decrease of the criticism of ecological concerned societies and community development companies.
• Fulfillment of the social duty by compensation of the hazardous items with healthy products.
• Might be executed within few years i.e. 3 to 5 years.

Cons:

• Risk of failure of the new items in the market i.e. customers might not like the taste and may decline the much healthier products due to the addicting nature of harmful products.
• The dangerous products in the product portfolio might make the incorporation of healthy products stop working to decrease criticism.
• Big cost of research and development required to build brand-new healthy items.

Alternative-2: High level Acquisition of Health associated Companies

Another alternative option to achieve the possible growth and lower the criticism is to obtain the health related business at a high level. Investment in these type of business would enable The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Solution to introduce a big range of much healthier items within a short time period with no need of substantial research and advancement expenditures. The benefits and drawbacks related to alternative 3 are offered below:

Pros:

• Conserving of huge amount of research study and development costs for brand-new product advancement.
• Incorporation of brand-new products within two years.
• Ability to target a great deal of customers i.e. health mindful customers.
• Decrease of the criticism of ecological worried societies and community advancement companies.
• Fulfillment of the social duty by settlement of the hazardous products with healthy items.

Cons:

• The acquisition may not prove to change the image of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Analysis as in case of Quake Oats.
• Requirement of substantial amount of capital.
• Risk of failure of the new products in the market i.e. customers may not like the taste and might decline the healthier products due to the addictive nature of hazardous items.
• The harmful items in the product portfolio may make the incorporation of healthy items fail to minimize criticism.

Aletrnative-3: Replacement of Hazardous Products with Healthy Products in the Portfolio

Another alternative option for The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Help is to replace all of its harmful products with much healthier items. This might be a substantial shift in the business method and business model at business. The replacement of hazardous products with much healthier items would entirely change the marketplace position of the company and would require a a great deal of required steps to be taken. The benefits and drawbacks connected to alternative 3 are offered listed below:

Pros:

• Change of market position of The Equator Principles: An Industry Approach To Managing Environmental And Social Risks Case Study Solution
• Ability to target large number of consumers i.e. health mindful consumers.
• End of all of the criticism of ecological concerned societies and neighborhood development organizations.
• Satisfaction of the social responsibility

Cons:

• Threat of failure of the new products in the market i.e. customers may not like the taste and may decline the much healthier items due to the addictive nature of dangerous products.
• Substantial cost of research and advancement needed to build brand-new healthy items.
• Employee might withstand over the modification in business model and business method.
• Variety of years needed for the implementation.
• Shift of focus from the core proficiencies.

Recommendations

With the deep analysis of the company's CSR, concerns dealt with by the business and the existing industry situation, Case Study Analysis is advised to consider alternative 2 of high level of acquisition of health associated business. As the acquisitions would enable the business to save of big quantity of research and development costs for new item development. Along with it, acquisitions would enable incorporation of brand-new products within 2 years along with the ability to target big number of customers.

This The Equator Principles: An Industry Approach To Managing Environmental And Social Risks case study is writen by : Benjamin C Esty

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