Sustainable Development as a Management Challenge

Sustainable Development as a Management Challenge

Kaisa Sorsa
Copyright: © 2018 |Pages: 26
DOI: 10.4018/978-1-5225-5288-8.ch004
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Abstract

Quality management is core area of every company. Sustainable development has become another core issue for the companies encompassing ecological, economic, and social issues. Companies need to decide how sustainable development can be managed in order to achieve both organizational and global sustainability. The aim of the case study is to discuss how sustainability is being incorporated into company management practices in the Finnish coffee company. It also aims to deepen the understanding about the implementation of sustainable development management practices in companies. The ecological challenge consists in reducing the burden that economic activities place on ecosystems directly and indirectly. The successful management improves the company's ecological effectiveness. The social challenge improves the business task of improving the sum of its social impacts. Economic challenge is composed in increasing eco-efficiency and improving social efficiency. There is a need for methodological integration of environmental and social management with their concepts and instruments in conventional, economically oriented management.
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Setting The Stage

Paulig has continuously developed the management processes and implemented the international standards in order to show to the stakeholders that it complies with the legal requirements as well as the requirements which go beyond the law. In the beginning of the company history, the main focus was in the quality management and food safety management, which are primordial for the organization doing business in the food sector. In the 1990’s the focus broadened to the environmental management practices and other sustainability areas. Paulig is a pioneer of reporting on corporate responsibility in the Finnish food industry.

In early 2000s, ethical principles set the standards for all employees in all units where all suppliers were required to commit to the Paulig Group Code of Conduct for Suppliers. Ethical principles and environmental requirements are also included in the different certification schemes. In order to answer to consumer demand, Paulig extended its coffee brands to the sustainably produced brands. In the year 2006, it launched Paulig Mundo coffee brand using the UTZ certified coffee as a raw material. In 2011, Paulig launched also fair trade labeled coffee under Paulig brand. The company argues that “with more than 140 years of experience, we know that quality can only be produced by acting responsibly”. The meaning of the terminology ‘responsibility’ in practice has changed according to the spirit of the times.

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