Executive Summary
Sustainability and environmental conservation have been a major consideration across various industries in this era where everyone aims at reducing their carbon footprint in operations. Companies, corporations and private investors concerned about Global warming and environmental conversation invest in large businesses with lump sum emissions throughout their production lines from the suppliers to the consumers. They fund the adoption of sustainable mechanisms of waste management, re use and recycling, replacement of fossil fuels with renewable energy sources and minimization or elimination of pollution from the emissions during the daily operations of the business. Established companies like Jose Batista Sobrinho benefit from such funding opportunities. Evaluation the strategies employed in daily operation of the company informs the investors of the commitment of the firm to the cause of achieving zero emissions in the near future. Different metrics can use to assess the levels of sustainability that have been achieved by the firm in its service delivery. The findings from the evaluation could also dictate the legal penalties to be imposed on the firm in case it does not conform to the terms and conditions of receiving the financial support.
Jose Batista Sobrinho (JBS) started as a small butcher shop in Anapolis, Brazil in 1953 and has acquired some of the biggest beef and poultry product processing firms in the United States throughout its lifetime and continues to grow its business. The company provides beef, pork and poultry products to a wide range of customers across continents and locally and aligns its operations with environmental regulations (Riahi et al., 2015) It also aims at providing quality food products to customers while maintaining a work culture that promotes innovation to enhance quality in service delivery. It is run by a board of directors who strategically organize and monitor the resources of the company to achieve the desired objectives (Mufson 2023.)
JBS’ environmental sustainability strategy is facing a significant challenge from the accusations of failure to achieve its sustainability objectives while profiting from investors without implementing the recommended strategies to achieve its goal of being a zero carbon emitter by 2040 (Valbuena et al., 2022) These accusations could impact the organization’s financial standing, reputation, and ability to attract environmentally conscious customers and investors. Since sustainability has become an increasingly important issue for a company’s shareholders, companies like JBS need to implement solutions to their methane emissions, and action plans for their suppliers to ensure they adopt sustainable practices in their businesses to help achieve the desired zero emissions objective (Krabec et al., 2021)
Being a market leader in agriculture, JBS boasts of a considerable market share and financial position which give it a competitive advantage over other firms venturing in the same line of products globally. Nonetheless, it has been accused of failing to meet its sustainability goals and taking steps to protect suppliers who contribute to deforestation and emissions. Proof of commitment to these accusations could result in financial penalties, loss of credibility and consumer trust, and decreased market share (Chin et al., 2015) However, the company has opportunities to improve its supply chain sustainability practices by exploring new partnerships with environmentally conscious suppliers to share best practices and leverage their expertise to improve its sustainability performance (Krabec et al., 2021)
Threats to the organization’s stability in operation can arise from competition that is aimed at gaining a competitive edge over them, changing market trends that make certain aspects and policies in their operations obsolete, economic conditions that may affect the financial muscle of the organization, and government policies that may render some of their operations illegal or stringent measures implemented to regulate their control of the market (Riahi et al., 2015) By leveraging its strong market share and financial position, JBS can invest in sustainable practices and make its operations fit within the environmentally recommended standards (Valbuena et al., 2022)
To address the need for sustainability in its operations, the company must implement sustainable practices that include investing in renewable energy sources to minimize the use of fossil fuels, reducing waste in production processes by embracing reuse, recycling and processing waste into other useful products that are less polluting, working with environmentally conscious suppliers, and communicating its sustainability efforts to stakeholders (Chin et al., 2015) Measuring the outcomes of these strategies is crucial to determine success and identify areas for improvement and the metrics suitable for determining the outcomes include greenhouse gas emissions, renewable energy usage, supplier sustainability performance, and customer satisfaction with sustainability initiatives. JBS should thus review the challenges to its sustainability strategy while outlining how to address the challenges, alongside the financial and budgetary impacts of its solutions and the metrics for measuring the outcomes of its efforts (Mufson 2023.)
Conclusion
To show zeal and commitment to adoption of sustainable production and a green strategy of operation, JBS should address the claims of breach of financial agreements made against it and restructure its objectives to implement the proposed sustainability policies to be adopted in its operations. This will create a good public image for the company and assert the investors that their funds are put to good use. Persuading and convincing their business associates to adopt similar methods in production, supply and distribution also creates a transparent work environment where the guiding principles are adhered to. Furthermore, the consistent evaluation of the outcomes of the adopted strategies helps to determine the level of satisfaction derived from and the suitability of the policies to the business in order to improve, re-strategize and polish the areas that need attention. The successful incorporation of sustainability into the fabric of JBS as well as other companies will help to reduce the carbon footprint of industries and firms, minimizing the pollution on the environment and actively lowing the levels of global warming.
REFERENCES
Mufson, S. (2023). Brazilian meat giant under fire for allegedly misleading investors. Washington Post. https://www.washingtonpost.com/climate-environment/2023/01/18/jbs-food-giant-brazil-bonds
Krabec, T., & Čižinska, R. (2021). Measuring the impact of an administrative fine on a company and its future survival: A case study from the Czech Republic. Financial Internet Quarterly, 17(4), 34-49. https://sciendo.com/pdf/10.2478/fiqf-2021-0026
Riahi, K., Kriegler, E., Johnson, N., Bertram, C., den Elzen, M., Eom, J., Schaeffer, M., Edmonds, J., Isaac, M., Krey, V., Longden, T., Luderer, G., Méjean, A., McCollum, D. L., Mima, S., Turton, H., van Vuuren, D. P., Wada, K., Bosetti, V., & Capros, P. (2015). Locked into Copenhagen pledges- Implications of short-term emission targets for the cost and feasibility of long-term climate goals. Technological Forecasting and Social Change, 90, 8–23. https://www.sciencedirect.com/science/article/pii/S0040162513002539?via%3Dihub
Valbuena‐Hernandez, J. P., & Ortiz‐de‐Mandojana, N. (2022). Encouraging corporate sustainability through effective strategic partnerships. Corporate Social Responsibility and Environmental Management, 29(1), 124-134. https://onlinelibrary.wiley.com/doi/full/10.1002/csr.2188
Chin, T. A., Tat, H. H., & Sulaiman, Z. (2015). Green Supply Chain Management, Environmental Collaboration and Sustainability Performance. Science Direct. https://www.sciencedirect.com/science/article/pii/S2212827114008488
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