Posted at 12.31.2018
The emergence of environmental awareness has necessitated businesses to improve their practices with regards to environmental issues. Businesses have adopted different strategies to adhere to government policies also to maintain market share. Wm Morrison started life in 1899 as an egg and butter merchant and has grown to be the UKs fourth greatest supermarket chain. Morrisons' corporate responsibility reports identify improvements in Morrisons environmental strategy in terms of reducing their overall impact on the environment; however, several targets have never been met, leading us to question the business's efforts in implementing changes. Morrisons is influenced by stakeholders who influence the policies implemented by businesses. RECOMMENDATION.
The UK was late to effect environmental legislation, only bringing in its Environmental Protection Act in 1990, thus suggesting why policies might not be completely implemented across businesses (BGM. ) Corporate environmental management will increasingly be observed as a motivation to do business (cem. ) Lately there's been a progressive change in the production and consumption of food products in conditions of sourcing products from local sources or abroad. Approximately 70 billion pounds is allocated to the food market with roughly 80% going to supermarkets, Morrisons market share of this has fallen to 11. 8% from 12. 2% over the past year.
Morrisons once an independent small high street shop expanded to become national corporation and subsequently impacting the environment at local, national and global levels. Morrisons use the phrase 'Different and Much better than Ever' in order to signal to customers that they are offering something unique in the competitive market; therefore much competition would depend after price. The implementation of corporate social responsibility can be used not only to attract ethical customers but try to differentiate and create a unique feature. Morrisons is a Public Liability Company therefore aims is to increase shareholder wealth however; the needs of other stakeholders, customers, suppliers and governments must be considered. Integrating the companies' vision to be 'the food specialist for everybody, ' Morrisons' environmental goals include caring for the earth mainly focusing upon climate change, waste and sustainability which address the growing interest in the environment (cem. )
Morrisons have improved the power efficiency of stores, limited carbon emissions in the distribution process, reduced packaging and sourced products locally from sustainable sources. The business has invested heavily in its distribution, IT and logistics and now owns its own supply chain, manufacturing site and Market Street. The 'in-house' structure ensures processes have little impact after the surroundings, by reducing transportation costs if ownership is within close geographic proximity. Negatively vertical integration could lead to higher costs due to low efficiencies caused by lack of supplier competition.
Morrisons 2011 Corporate Responsibility review highlighted almost 35, 000 tonnes of waste was sent to landfill in 2010/11 and their carbon footprint in 2010 2010 was, 1, 417, 376 tonnes CO2e. In comparison to 2005, recycling increased by 72% and there is a 12% decrease in Morrison's carbon footprint. Cleaner fridge cooling systems in stores led to a 40% reduction in refrigeration gas emissions. Morrisons try to reduce carbon utilized by stores, offices, food manufacturing, packing facilities and distribution centres. Morrisons are successfully reducing their environmental impact and aim to reduce operational emissions by 30% by 2020. Many of these strategies will positively influence the surroundings.
Morrisons 2007 Corporate Responsibility review stated by 2010 there will be a 10% increase in renewable usage, a 15% decrease in water and a 36% decrease in their carbon foot print. All of these targets have never being achieved by the supermarket and the achieve by date has been extended. This illustrates poor implementation of policies and targets across the company. In comparison to other supermarket chains Morrisons is not highly rated for producing, implementing and reaching environmental targets. Although Morrisons say they are enhancing their environmental strategy by making more of a conscious effort into attaining goals, these results identify that plans and targets might not be taken as seriously as necessary.
Although Morrisons state these are reducing environmentally friendly effect on products produced through their own manufacturing sites, other suppliers and their impact upon the environment are not mentioned. Thus indicating little if any effort is being made in conditions of reducing all manufacturing sites to boost their effect on the surroundings. The impact of unmonitored suppliers will negatively influence the environment. It can be questioned whether Morrisons practices are markedly different than other companies when it comes to bettering their impact upon the environment.
The production, packaging and distribution of food products impacts negatively after the environment increasing the atmospheric pollution and its own direct costs on human health, harm to crops and causing deaths to animals. Typically packaging makes up nearly 25 % of household waste and 70% of that is food related. As climate change becomes an increasing concern, major supermarkets have observed the possibility to improve their reputations with high-profile green initiatives. Morrisons have used the 'reduce, reuse or recycle' mantra to urge consumers to utilize alternatives to plastic bags. Government reports have encouraged the change in everyday habits so environmental concerns are in the forefront of consumers' minds. Supermarkets have adopted this strategy by promoting 'the bag for life, ' Morrisons have invested in using recycled material and also have increased the durability, allowing them to be reused. Policies will tend to be further integrated in the future (cem. ) For example, the Welsh government imposed analysis on free carrier bags in supermarkets, thus positively implementing approaches for the better of the environment.
Morrisons sends huge amounts of waste to landfill, however now they have got set their target to send zero waste to landfill by 2013. This might be a positive technique to enhancing their impacts towards the environment. Landfills make a difference human health with cancers and respiratory illnesses.
Morrisons supply directs to its stored through twelve distributing facilities and which consists of own fleet which works around the clock to provide fresh foods. Although Morrisons say they are improving their distribution facilities, it is questionable whether their management of collecting products from suppliers is actually green. Morrisons target is to 'improve the customers experience' plus they achieve this by giving fresh produce daily however; this negatively impacts the surroundings as some air pollutants and particulate matter can be deposited in waters and soils where they enter the food chain; consequently impacting animals health.
35% of Britons live fifteen plus more minutes from the closest Morrisons shop, this therefore escalates the amount of traffic on the road, leading to harmful gases being emitted into the environment directly affecting human health, harm to buildings and crop production (BGM. ) Morrisons state they provide local people with jobs however; recruiting staff from remote areas or from a huge distance from stores will negatively influencing the environment as increased transport is needed.
Morrisons business ethics have become an increased priority as people's actions and opinions have changed with an increased concern for the surroundings. Implementing an environmental action plan strengthens Morrisons public relations enticing customers and investors. For example, Morrisons pride themselves on providing locally grown produce from sustainable resources alongside 100% British meat and milk. The ownership of production helps secure continuity in the supply chain.
Research recognized ethical spending and investment has increased considerably as customers are usually more willing to pay higher prices for ethical produce. Ethical behaviour adds value, alongside giving the company a competitive advantage. Consumers also want retailers to supply them with environmentally friendly products that are convenient and affordable. The growing need for environmentally friendly products allows retailers to exploit the opportunity to meet customer needs and positively impact the surroundings (Bgm. ) Other strategies adopted by Morrisons were to improve the buying habits of consumers such as providing more information about the foundation of products and promoting local food products (cem. ) Shoppers like to get 'green food' so when people are becoming more aware about waste and environmental matters, the ethically friendly image of companies is welcome by consumers (BGM. )
As due to consumer awareness, government policies and changing technologies Morrisons have adapted their environmental strategy to incorporate these factors. Morrisons has spent thousands of pounds boosting their companies technology to be able to diminish their environmental output. Positively technology can help develop and produce new materials and technologies that are sustainable and don't harm the environment. Retailers are proclaiming their commitment to, and achievements in, sustainability. The satisfaction of customer needs with regards to sustainability allows Morrisons to build up a good brand image and retain customers. Morrisons was the first supermarket to be awarded the Carbon Trust Standard highlighting there are successfully increasing their energy awareness through improving technology and their vertically integrated business model.
Environmental management talks about the interaction and impact of human societies on the surroundings. Morrisons have used energy monitoring equipment to identify consumption trends in its stores and factories, looking for ways both to save lots of money and also to enhance their impact upon the environment. Several of environmentally friendly strategies used have positively reduced the impact upon the surroundings, for example altering a fresh lighting control system to get has reduced electricity consumption by approximately 66%. Also, replacing HCFs with HFCs has improved the refrigeration system, alongside answering to governmental policies.
Discussions about environmental strategy have increased substantially during the last years, influencing business reactions. Alongside this, Morrisons is influenced by government policy and consumer pressure groups meaning they are likely to ensure that businesses which do not do something on the environmental front will lose market share (cem. ) Morrisons state these are committed to improving the surroundings and also have reporting structures in place, such as the corporate responsibility review, to demonstrate their targets to enhancing their business with regards to the environment.
Another reasons as to the reasons environmental management is implemented within Morrisons is to provide assurance to stakeholders regarding compliance to environmental regulations. The usage of environmental management strategies enables us to be reassured that resources and necessary amenities humans need to function are available for future generations. Environmental management escalates the value of the company as investors are more likely to invest if the company sometimes appears to be answering governmental policies. Also the company are a competitive advantage which is a potential source of productivity improvement. Environmental considerations are likely to form an integral part of commercial normality and indeed competitive in the foreseeable future (cem. )
Weakness when it comes to Morrisons environmental management can include the extension of achieve by dates, this negatively reinforces a wrong image about the company, consequently leading to market shares depleting. The collection and distribution of goods, impacts the environment negatively in regards to inefficient strategies. Morrisons do not have a web market for groceries, this both decreases the convenience of shopping which other supermarkets offer but also the quantity of pollution is not saved when people are traveling to the stores. Implementing in an online business would improve their environmental management. Delivery vans could deliver services with a decreased amount of environmental impact.
Although Morrisons have emerged to be heading in the right direction, regarding acting green, they stop at considerably changing their business overall. Stopping the use of plastic bags or stocking only in season fruit and vegetables could impact after the decision and capability of consumers; however this might improve its environmental performance. Instead of producing environmental policy aims, it might be better to see whether Morrisons could act to save lots of the surroundings rather than simply pleasing the client. Another recommendation regard how Morrisons could exploit additional opportunities to boost its environmental performance is to boost their policy on renewable sources of energy. Currently Morrisons have only produced a report how renewable energy can improve savings when it comes to dairy farming.