Question 1

A sustainability report is a type of corporate or organizational report. A

sustainability report conveys sustainability-related information in a way that is
comparable with financial reporting.
Wal-Mart Stores is one among many companies today that annually provides a
sustainability report that reveals how the firm s operations impact the natural
environment. This document discloses to shareholders information about Wal-Mart s
labor practices, product sourcing, energy efficiency, environmental impact business
ethics practices.
It is good business for a company to provide a sustainability report annually to the
public. With 60,000 suppliers and over $350 billion in annual sales, Wal-Mart works with
its suppliers to make sure they provide such reports. Wal-Mart monitors not only prices
its vendors offer for products, but also the vendor s social-responsibility and
environmental practices. Many firms use the Wal-Mart sustainability report as a
benchmark, guidelines and model to follow in preparing their own report.
Wal-Mart encourage and expects its 1.35 million U.S. employees to adopt with it calls
Personal Sustainability Project, which include such measures as organizing weight-loss
or smoking-cessation support groups, biking to work, or starting recycling programs.
Employee wellness can be a part of sustainability.
Manager and employees of firms must be careful not to become scapegoats blamed for
companies environmental wrongdoings. Harming the natural environment can be
unethical, illegal and costly. When organizations today face criminal charges for
polluting the environment, they increasingly turn on their managers and employees to
win leniency. Employee firing and demotions are becoming common in polluting-related
legal suits. Managers were fired at Darling International, Inc., and Niagara Mohawk
Power Corporation for being indirectly responsible for their firms polluting water.
Managers and employees today must be careful not to ignore, conceal, or disregard a
pollution problem, or they may find themselves personally liable.

Why Firms Should Be Green

Preserving the environment should be a permanent part of doing business for the
following reasons:
1. Consumer demand for environmentally safe products and packages is high
2. Public opinion demanding that firms conduct business in ways that preserve the
natural environment is strong.
3. Environmental advocacy groups now have over 20millon Americans as
members.
4. Federal and state environmental regulations are changing rapidly and becoming
more complex.
5. Many lenders are examining the environmental liabilities of businesses seeking
loans.
6. Many consumers, suppliers, distributors and investors doing business with
environmentally weak firms
7. Liability suits and fines against firms having environmentally problem are one the
rise.

Questions 2

Business ethics can be defined as principles of conduct within organizations that guide
decision making and behavior. Good ethics is good business. Bad ethics can derail even
the best strategies plans. This chapter provides an overview of the importance of business
ethics in strategic management. Good business ethics is a prerequisite for good strategic
management; good ethics is just good business
Business ethics has normative and descriptive dimensions. As a corporate practice and a
career specialization, the field is primarily normative. Academics attempting to understand
business behavior employ descriptive methods. The range and quantity of business ethical
issues reflects the interaction of profit-maximizing behavior with non-economic concerns.
Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within
major corporations and within academia. For example, most major corporations today
promote their commitment to non-economic values under headings such as ethics codes
and social responsibility charters. Adam Smith said, "People of the same trade seldom meet
together, even for merriment and diversion, but the conversation ends in a conspiracy
against the public, or in some contrivance to raise prices. Governments use laws and
regulations to point business behavior in what they perceive to be beneficial directions.
Ethics implicitly regulates areas and details of behavior that lie beyond governmental
control. The emergence of large corporations with limited relationships and sensitivity to the
communities in which they operate accelerated the development of formal ethics regimes.

7 Principles of Admirable Business Ethics

1. Be Trustful: Recognize customers want to do business with a company they can
trust; when trust is at the core of a company, it's easy to recognize. Trust defined, is
assured reliance on the character, ability, strength, and truth of a business.
2. Keep An Open Mind: For continuous improvement of a company, the leader of an
organization must be open to new ideas. Ask for opinions and feedback from both
customers and team members and your company will continue to grow.
3. Meet Obligations: Regardless of the circumstances, do everything in your power to
gain the trust of past customer 's and clients, particularly if something has gone awry.
Reclaim any lost business by honoring all commitments and obligations.
4. Have Clear Documents: Re-evaluate all print materials including small business
advertising, brochures, and other business documents making sure they are clear,
precise and professional. Most important, make sure they do not misrepresent or
misinterpret

5. Become Community Involved: Remain involved in community-related issues and

activities, thereby demonstrating that your business is a responsible community
contributor. In other words, stay involved.
6. Maintain Accounting Control: Take a hands-on approach to accounting and record
keeping, not only as a means of gaining a better feel for the progress of your company,
but as a resource for any "questionable " activities. Gaining control of accounting and
record keeping allows you to end any dubious activities promptly.
7. Be Respectful: Treat others with the utmost of respect. Regardless of differences,
positions, titles, ages, or other types of distinctions, always treat others with professional
respect and courtesy.

REFERENCE
1. sbinformation.about.com
2. Strategic management notes topic T24& 25
3. https://books.google.com.my/books?id=liwPAQAAMAAJ