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Running head: Assignment 3

Assignment 3
MNGT-3711
Stakeholders in Sustainable
Business Transformation

Submitted To: Submitted By:

Ron Lakes Jaspreet Kaur

T00592974
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Assignment 3

Part A

Question 1: Describe the ways in which the widespread adoption of clean cookstoves will

address the global environmental issues discussed in Chapter 9.

Widespread adoption of clean cookstoves will address several global environmental issues. It

will help in controlling ozone depletion, climate change and loss of biodiversity. Unlike

cooking in open fire, clean cookstoves do not release soot or black carbon in to the

atmosphere. Black carbon is one of the main reasons for air pollution and global warming,

leading to unpredictable climate changes. Incomplete combustion of wood, dung, and charcoal

in cookstoves will release black carbon in the atmosphere. The black carbon released this way

can also cause melting of glaciers. Moreover, clean cookstoves also reduce deforestation and

prevent loss of diversity. Wood is the most commonly used fuel in traditional cookstoves and

a lot of trees are cut down for this everyday. Trees absorb carbon dioxide in the atmosphere

and release oxygen. This exchange becomes difficult as deforestation increases. The carbon

dioxide left in the atmosphere leads to global warming. Destruction of forests, especially the

rain forests, result in a decline in rain and causes climate changes. Rain forest is one of the

richest biodiversity on earth and deforestation would impact the biodiversity (Lawrence &

Weber, 2017).

Question 2: Describe the ways in which the widespread adoption of clean cookstoves will

address the issues of economic development and poverty discussed in Chapter 9. 

The resources in an economy is limited and has unlimited wants and alternative uses. So, there

is an opportunity cost for every activity. Compared to the clean cookstoves, using traditional

methods for cooking has a lot of opportunity costs: time and resources. Traditional methods
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require more fuel and result in depletion of natural resources like wood has alternative uses.

Cooking also takes more time and effort. A lot of productive time is spent on gathering fire

wood and fuel and then again on cooking. This time can be efficiently utilised if clean

cookstoves are adopted worldwide. The time can be spent productively on other economic

activities that contribute to the national income. For instance, a person can seek employment,

work and increase productivity of the economy. The additional income, thus generated, also

helps in fighting poverty. Clean cookstoves are also healthier as it has lesser negative health

impacts compared to the traditional forms. Reduction in health risks can improve productivity.

Moreover, implementing clean cookstoves will open more employment opportunities

in the economy. It will bring in investment from corporations as many would be willing to

invest as apart of their corporate social obligation.

Part B

Hewlett Packard

Hewlett-Packard, often referred to as HP, is a multinational tech company based on

United States. HP is a leading hardware and software manufacturer head quartered in

California. Some of HP’s products include laptops, printers, scanners, workstation computers,

management and big data analytics software. From 2007 to the second quarter of 2013, HP

was ranked the world’s leading PC Manufacturer until Lenovo overtook HP. (PC Pro, 2013).

On November 1, 2015, HP spilt its PC and printer business from other enterprise services and

manufacturing forming two separate public companies; HP Inc and Hewlett Packard

Enterprises respectively. Formed in 1935 by William Hewlett and David Packard, two

Stanford graduates, HP is a role model in sustainable development in the tech industry

(Preston, 2001). HP claims that most of the worldwide environmental challenges are due to

unsustainable production, consumption and development (HP, 2003). Their vision is to

develop a world with sustainable development, by engaging in programs that would reduce

environmental footprints of the corporation, its partners and consumers (HP, 2003). The

management style followed at HP, often referred to as the HP Way, is an ideology includes

respecting individuals, dedication to affordability and quality of products and services, being

socially responsible, and developing technology for the advancement and welfare of the

community.

The company recycled over a billion pound of electronics including toners and ink

cartridges, reducing wastage and protecting environment, during a period of 3 years from 2004

to 2007 (Meller, 2007). After achieving its first goal, HP set its next goal to recycle 2 billion

more pounds of electronic wastes by the end of the year 2010. The company successfully
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recovered and recycled 187 million pounds of e-waste just in 2006. HP is the first in the tech

industry to release its supply chain emissions data in 2008 (Helmbuch,2009). In 2009, HP was

ranked no.1 in Green Rankings of America's 500 largest corporations by Newsweek. The

corporation was ranked higher in Corporate Responsibility Magazine in their 100 Best

Corporate Citizens list, one of America’s vital business rankings, of 2010. This paper will

explore the external and internal factors that influenced HP to move towards a responsible

sustainable development, the global impact of sustainable development initiatives and

influence of technology in sustainable development.

Section 1. External forces or influences: Identify three external factors that you think have

influenced the company’s shift to more environmentally and/or socially responsible business

management practices. Describe the ways in which these external factors influenced

management actions and/or decisions or helped to transform the company. Provide evidence to

support your observations.

PESTEL analysis is a common marketing analysis tool used to understand and analyse

macroeconomic environment of a business. According to PESTEL analysis, a business can be

influenced by various macroeconomic factors which can be broadly classified into Political,

Economical, Social, Technological, Environmental, and Legal factors(environments). These

are the factors that are outside the control of the business but have a significant impact on the

business operations. These act on a totality of external forces and are relative and complex. On

time interpretation of these macroeconomic environments can give first mover advantages,

help in identifying business threats, and can help in planning and policy formation.(Jurevicius,

2003). I believe that that following three external factors have had a significant impact in

forming the sustainable business development cult at HP;

● Environmental Factors: According to PESTEL analysis, environmental factors

include all ecological factors like climate change, pollution and weather

(Jurevicius, 2003). Changes in the environment due to pollution and global

warming at an alarming rate has encouraged companies to operate in an eco

friendly way. Population is increasing everyday and has crossed 7 billion. Waste

production has increased more than ever. Environment is degrading due to

increasing due to pollution; land, water, air and noise. Health risks are increasing

due to the same reason. It is necessary and a corporate responsibility to ensure that

the corporation protects the environment in operates in. HP consider this as an

opportunity to improve and develop sustainably. HP has taken initiatives to

produce electronics that are energy efficient and comply with globally recognized

eco-labels (Dolan, 2010).

● Social Environment: According to PESTEL analysis, social environment includes

all factors related to demographics, change in popular trends, culture and tradition

of a society (Jurevicius, 2003). Public trends are changing everyday. Increased

awareness about pollution and global warming has influenced consumers to opt for

tech products from eco friendly manufacturers. Society is more environment aware

and a large part of the society respect environment friendly products and eco

friendly manufacturers. HP is changing according to the change in the society and

is recycling electronics. HP has already taken initiatives to collect electronics for

recycling, not only the devices manufactured by HP but any company, keeping
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them away from landfills and cultivating a closed-loop manufacturing trend as an

end-of life solution for electronics.

● Legal Environment: According to PESTEL analysis, legal environment includes

all the macroeconomic factors related to law and order like consumer law, health

and safety law, employment law, and discrimination law (Jurevicius, 2003).

Government has imposed strict rules and regulations on manufacturing electronics

and for decreasing pollution: air, water, land and sound pollution. Disposal of toxic

chemical substances into water bodies by manufacturing units is a serious legal

offence. Government has issued clean air regulations, halocarbon controls and

ecological taxation to promote sustainable manufacturing and tax environmentally

irresponsible activities. HP follows all the rules and regulations established by the

government of the country of manufacturing. HP ensures that all of its suppliers

and contractors also follow the same environment friendly practices.

Apart from environmental, social and legal macroeconomic factors, economic, political and

technological factors also play a vital role in an important decision like sustainable development.

Section 2. Internal forces or influences: Identify two internal factors that have influenced the

company’s shift to more environmentally and/or socially responsible business management

practices. Describe the ways in which these internal factors influenced management actions

and/or decisions or helped to transform the company. Provide evidence to support your

observations.
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Internal factors of a business environment include the management, owners, creditors,

employees, trade unions, and competitors. Internal influencers for an environment friendly

development at HP include:

 Top Level Management: Top level management involving the Chief Executive Officer,

Chief Operating Officer and Chief Financial Officer and Board of Directors plays a big

role in maintaining the sustainable development at HP. These are the people who make

major decisions of the company and interact with the external environment. The change

in external macroenvironments especially environmental factors and legal factors have

forced corporations to adapt to an eco-friendly operation. HP is one of the few tech firms

who publish their sustainability report. Corporations need to ensure that carbon emission

in all operations of the firm, both direct and indirect. For example, energy consumption

of plants and machinery in factories produce carbon footprints. The calculation also takes

into consideration carbon emission during employee commutation. An aggregate of

annual carbon emission is calculated and corporations work on strategies to reduce the

carbon footprints. Sustainability report published by the company in 2015 reveals that the

company went through a through study of carbon emission by the corporation. Board of

Directors formed the Nominating Governance and Social Responsibility (NGSR)

committee to oversee the sustainable development activities. The committee is in charge

of drafting and formulating HP’s environment friendly policies and programs. HP has

integrated sustainable development and global citizenship to their business strategy

(Sustainability Report, 2015).

 Employees: A decision taken by the Board of Directors can only be made realistic if all

the employees follow the decision properly. HP, before splitting up as HP Inc. and
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Hewlett Packard Enterprise, had nearly 300,000 employees worldwide in 2015(Statista,

2018). All employees realise that they work in a typical economy that has scarcity of

resources and unlimited wants. Each resource needs to be put into work efficiently and

effectively that the cost of doing business is minimized. HP reduced their energy

consumption in 2009 by 9 percent compared to the previous year. (Global Citizenship

Report) The workplace at HP promotes innovation through sustainable development and

every employee is trying their best to reduce their own carbon footprints; the network of

“product stewards” ensures that the design and production is environmentally sustainable

(HP, 2003).

Section 3. Global impacts of sustainable development initiatives: Describe one real or

potential global impact of the sustainable development initiatives of this company. Indicate the

magnitude or significance of this impact in terms of its influence on global business and/or

society. 

Sustainable development refers to economic development without depleting natural resources.

The organization need to balance economic, ecological and social costs of a decision before

moving forward. HP has been committed to their sustainable development goals and some of

their global impacts are as follows:

 Reduced Carbon Emission: Carbon emission at HP was measured at 11 percent less

than in 2014 in the Sustainability Report published in 2015. HP successfully reduced

their carbon footprints to 45,432,100 tons of carbon dioxide equivalent. Reducing bigger

desktops to smaller, energy efficient laptops. HP has established its second major

recycling facility in Montreal. HP recycles its ink cartridges to meet the new market

demand for ink cartridges. The cartridges are collected, sorted, cleaned and metals and
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non-metals separated, shredded and then mixed with PET bottles. This closed-loop

manufacturing process is more viable, economically and environmentally, than refilling

used cartridges (Aster, 2013). HP encourages suppliers to earn Conflict-Free Smelter

certification. According to sustainability report in 2015;

a) HP reduced Green House Gas emission intensity related to first tire

manufacturing and transportation in its supply chain by 20 percent by

December 2014.

b) HP achieved 20% reduction GHG emission goal by 2020 by decreasing Scope

1 and Scope 2 emissions around 30% compared to 2010.

c) Reduced supplier carbon footprints by 800000 tons of CO2 e.

● Zero Deforestation and 100 % Clean Energy by 2020: As a part of the sustainable

development goals, HP is improving the sources for new paper and adapting clean

energy measure. HP claims that climate change is their motivator in moving towards

zero deforestation and 100 % clean energy by 2020. With the support and

commitment from Forest Stewardship Council and World Wildlife Fund, HP is

showing commitment to the cause and ensuring the wood and paper they use in

production come from sustainable sources. Paper procurement policy of HP received

positive criticism from Greenpeace and ranked them a leader in Sustainable

Operations. HP printers are certified energy efficient and cut down ink and paper

wastage by 25% or more.

Section 4. Harnessing technology for sustainable development: Describe (with examples)

how this company is using the Internet and other technologies to assist its efforts to move

toward sustainable business and development.

HP is committed to product innovation through sustainable development by engaging in

material innovation, energy efficiency, and end-of life solutions for HP products. Material

innovation is an effort to produce more with less materials, reducing wastage and devising

ways to dematerialise products and packaging. Biodegradable or recyclable materials are

promoted in the design. The materials used in production are ranked and assessed based on

their impact on the environment and replacing less efficient materials with alternatives. HP

products are highly energy efficient and recognized by eco labels such as TCO, Blue Angel

and Energy Star. Energy efficiency is a primary concern during innovation at HP. HP offers

pickup, transportation, evaluation and recycling for hardware products from any

manufacturer ensuring the closed-loop manufacturing cycle. This keeps materials away from

landfills and incineration, decreasing the level of pollution. HP’s key business strategies

include developing and promoting technology using renewable resources, a business model

that delivers higher consumer value at the expense of less environment footprints, and

Design-for-Environment program to design products with improved resource efficiency

throughout its lifetime. HP is going paperless with documentation using internet and

contacting consumers and suppliers through emails.

HP Page Wide technology in printing reduces energy consumption by 98% and generates

95% less wastage of supplies and packaging, reducing carbon emission by 52%. The

technology ensures faster and efficient printing (HP, 2012).

Jet Intelligence technology introduced by HP is another environment friendly innovation of the

tech giant. HP claims original HP laser jet cartridges with Jet Intelligence technology is up to

40% faster, uses up to 53% less energy and is 40% smaller (HP Store, 2015). Some of the major

environment friendly unique selling propositions of the technology are listed below;
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 Page Maximizer Technology: This helps the printer determine wear and tear in the

printer ink cartridges ensuring more print per cartridge count to the customer. On an

aggregate, this saves a lot of cartridge replacements in a year.

 Print Gauge Technology: The technology helps in predicting cartridge life by gathering

cartridge information like component rotations and toner wear. This also considers the

impact of the environment conditions on the printer cartridges.

Apart from the page maximizer and print gauge technology, HP Jet Intelligence for laser printers

is also famous for its precision black toner, anti-fraud technology, Color Sphere 3 technology,

and auto seal removal.

HP continue to be a leader in sustainable development in the tech industry due to the influence

and timely interpretation of external environments, attention from internal factors of the

business, and by prioritizing planet over profit.

Reference

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Triple Pundit. Retrieved from https://www.triplepundit.com/2013/04/ink-cartridge-

recycling/

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deforestation-and-100-clean-energy-by-2020/

3. Dolan, K. (September 20, 2010). HP Takes A Green Step With Energy Efficient

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