IndexUnilever's Sustainable Living PlanSustainability ChallengesDeforestation and Climate ChangeValue Creation and Sustainability IntegrationEvaluating the Concept of Value CreationThe Definition of Value CreationThe Sustainable Value Framework1+ 7 Levels of Strategic Focus Evaluate the construct of embedding sustainability There are more than 400 Unilever brands offering customers a wide range of choice in the lives of people in 190 countries. I consume. According to statistics, two billion people use Unilever products and services every day and seven out of ten families own at least one Unilever product worldwide. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayUnilever Sustainable Living Plan Launched in 2010, it adopted ambitious goals across three dramatic sections: improving health and well-being, reducing environmental impact and improving livelihoods. He recognized that economic growth causes environmental pollution and massive impoverishment, both inadvisable and commercially unsustainable. Sustainable growth is the only acceptable model for their business and pursues a continuous sphere to help people improve the quality of life and promote human well-being through access to social assistance. Unilever products are sustainable at every stage of their lifecycle, the product research and development process that works with suppliers, governments, NGOs, consumers and other businesses to help create value. Sustainability Challenges In this part, some “big” global issues will be discussed which are mainly concerned with deforestation, climate change, air pollution and transferred pollution. Analyzing these factors we will use a specific case. Deforestation and climate change Today, alone with the advent of the industrial revolution, science and technology have achieved giant strides, production is increasing, as is people's standard of living. Furthermore, economic integration is moving faster. But more and more people have realized that they have plundered “false profit” at the expense of massive energy consumption and environmental degradation to increase the speed of economic growth, the destruction of forests plays ever louder. According to statistics, about 18 million acres (7.3 million hectares) of forests are lost every year, which according to the Food and Agriculture Organization of the United Nations is approximately the size of the country of Panama. Forest deterioration causes between 6% and 12%. percentage of global annual carbon dioxide emissions while oxygen in the air is depleting. This pie chart illustrates six main reasons for deforestation. Overall, deforestation, including land available for agriculture, industrial sites, urbanization and livestock ranching, the largest factor comes from agriculture and accounts for 64% of what occurs in rainforests, was cut down to make room for cultivation, farmers can obtain additional income. The second largest percentage is the logging industry, which accounted for 18%, firewood and livestock farming accounted for 10% and 8%, respectively. Due to human activities, excessive deforestation and fires will produce large amounts of carbon dioxide. Furthermore, manufacturers of consumer goods will seize the opportunities that using trees creates value and business potential such as paper, furniture and homes, or extract ingredientsas precious medicinal herbs or will transform them into products with easily absorbable nutrients, such as palm oil or agalwood spices. All in all, people often cut down substantial forests to make the land available to others only for their own short-term profit, however, deforestation is the permanent destruction of forests. Carpet production causes air pollution. There is a specific case to analyze and discuss sustainability challenges. most carpet manufacturing is not an environmentally laudable industry, because most carpet is derived from petroleum. Furthermore, carpet manufacturing factories are heavy industrial, the waste produced by the process contains many toxins and heavy metals and large amounts of CO2 emissions and, in practice, carpets are also made of nylon-based products which do not they are recycled and therefore usually end up in landfills.Transferred Pollution A new competitive environment has emerged, manufacturers of consumer goods face pressing ecological and social challenges. Some companies in developed countries export production to developing countries or build heavy industry in emerging economic markets to protect their domestic environment and enjoy themselves. Consumer goods producers such as furniture manufacturing enterprises, carpet manufacturers, the coal industry and several illegal trades of rare animals will cause huge losses. These companies with high levels of greenhouse gas emissions face new and growing financial risks and contribute to climate change increases as the value from stakeholders to shareholders in the upper left quadrant of value transfer in the sustainable value model. Value Creation and Sustainability Integration This part will introduce value creation by definition combines with a sustainable value framework and 1+7 levels of strategic model, then discusses sustainability integration including its benefits. Evaluating the Notion of Value Creation The Definition of Value Creation Value creation means that the business entity creates ongoing value for an organization's shareholders and stakeholders. “Value creation” is no longer limited to the financial area, for example, value does not only refer to a company's revenues or return on capital, but also represents intangible factors such as innovation, people, ideas and brand. Value creation model organizational purpose based on maximization of "sustainable value". The Sustainable Value FrameworkAccording to the four squares of the Sustainable Value Framework, it is clear to identify any product or company and visualize its development path over time. In this framework, three of the quadrants have fundamental flaws, because companies deliver shareholder value while destroying stakeholder value. The upper left quadrant and the lower right quadrant represent the value transfer of companies, the former creates value for shareholders through a low-cost strategy and avoids environmental rules while stakeholders suffer from risks in the coming years, the second transfers value from shareholders to stakeholders, it could have short-term effects take advantage of growing employee job opportunities and pure charities. but it entails higher financial costs for shareholders. The upper right quadrant refers to the value created for stakeholders and shareholders. Only in this quadrant is sustainable value created. Companies design and manufacture products with lower depletion and less pollution through a clean technology strategy, a prevention strategy.
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