Bus30031, Sustainable Business Practice, Semester Jan, 2024

Lecturer: Dr. Toan Thinh Nguyen

BUSINESS
IMPACTS ON
THE SDG
ASSIGNMENT 1
GROVAZ COMPANY

Student Name: Ha Phuong Nguyen

Student ID: 104081342
Word counts: 1896 words
Table of Contents

Introduction 01
What are the SDGs? 01
Business’s impacts on the
achievement of the SDGs
02

The “Grovaz” case study 04

Recommendations 06
Stakeholders 07
References 08

BUSINESS IMPACTS ON THE SDGS - GROVAZ CASE STUDY

Introduction
The outlined United Nations Sustainable Development Goals (SDGs) holding
immense significance for our global community due to its impact on all the social,
environmental and economical changes. Grozav, a manufacturer of corn syrup
currently operating in non-EU developing country of Petnusia is actively exploring
expansion opportunities in Australia and Vietnam, while also taking into account
important environmental, social, and governance factors. Some recommendations,
which impact directly on the stakeholders including local farmers, agricultural
laborers, and Grovaz employees, have been given for the company to address these
challenges and opportunities.

What are the SDGs?

In 2015, the United Nations, consisting of 193 members, established 17 Sustainable
Development Goals (SDGs) as a global initiative to eradicate poverty, preserve the
environment, and promote peace and prosperity for all individuals by 2030 (United
Nations Development Programme, 2023). These goals address various issues,
including violence reduction, conflict resolution, human rights advocacy, poverty
alleviation, and so on.

In addition, the SDGs are interconnected and progress in one area can have both
beneficial and detrimental consequences for other areas (WONG, 2021). For
example, efforts to promote affordable and clean energy (SDG 7) might have a
positive impact on climate action (SDG 13), but must be implemented sustainably to
avoid adverse effects on life below water and life on land (SDGs 14 & 15) (Office of
Energy Efficiency & Renewable Energy, n.d.)
Business’s impacts on the
achievement of the SDGs
The Sustainable Development Goals (SDGs) and businesses are closely intertwined
for various reasons. As per a report by EY Global (2017), SDGs offer a framework for
generating revenue, encouraging innovation in products and services, and creating
business growth opportunities. By focusing on social impact, companies can gain a
competitive advantage, meet investor and employee expectations, and create
financial value. This approach aligns with principles of Innovation-Driven
Entrepreneurship (IDE) and the Market-Based Approach (MBA) while both
emphasizing the innovations and creations of offerings that address societal needs
and challenges (Botelho et al., 2021) (USAID, 2021). NeedEneegy, a startup focused
on energy solutions, partners with small-scale renewable energy producers to build
energy data centers (AU-Startups, 2023) to build cost-effective and eco-friendly
energy solutions in rural communities, achieving SDG 7 (Affordable and Clean
Energy), while generating revenue by addressing societal needs and challenges.

In addition, by aligning the CSR efforts with the SDGs, the company can address
various global challenges and improve its reputation (Rohilla, 2022). An example of
this can be found in the case of Honeywell, a global technology and manufacturing
company that prioritizes reducing its carbon footprint and promoting sustainable
energy solutions. The company's focus on energy efficiency, sustainability, and
environmental stewardship has positioned it as a leader in meeting the changing
demands of customers and the market. Honeywell's commitment to energy efficiency,
specialty chemicals, and process technologies has solidified its position as a
frontrunner in tackling global energy and environmental challenges (Globaldata,
2023).

In addition, aligning business strategies and operations with the SDGs can have a
positive impact on the environment. The circular economy is a concept highlighting
the significance of reducing waste and optimizing resource efficiency. Businesses can
make a significant impact on the achievement of SDGs by adopting circular economy
principles by reducing wasteful consumption of material resources and promoting the
reuse and recycling of products (EcoChain, 2023). Philips is a company that has
embraced circular economy principles to support the attainment of the Sustainable
Development Goals (SDGs) - "Use less, use longer, use again." The company has
adopted a circular business model that emphasizes product-as-a-service, where
customers lease products rather than purchasing them outright (Merzke, 2023).
Through this innovative approach, Philips successfully minimizes waste, maximizes
resource utilization, and contributes significantly contributions to the attainment of the
Sustainable Development Goals, including sustainable consumption and production
(SDG 12) and climate action (SDG 13).
The “Grovaz” case study
In the case of Grovaz, they are facing two primary ESG concerns: ensuring a
sustainable supply chain and promoting sustainable economic growth and productive
employment. It is evident that Grovaz is currently dealing with several human resource
challenges that have a direct impact on the achievement of SDG 8, focusing on
promoting economic growth that benefits everyone, creating quality jobs, and fostering
sustainable entrepreneurship and innovation (A Beginners Guide to the SDGs, 2020).

n Petnusia, large-scale farming practices lack mechanization and technology reflecting

the limited resources available to farmers who can only afford basic equipment. Grovaz
has shown interest in funding research on sustainable farming practices for cacao and
ways to boost yield contributing to sustainable economic growth. This demonstrates
their commitment to technological upgrading and innovation in agriculture (Our World in
Data Team, 2023). In addition, sustainable farming practices can encourage innovation
in the agricultural sector, supporting the promotion of sustainable entrepreneurship and
fostering innovation (as stated by Target 8.3, Our World in Data Team, 2023). Besides,
the grow of the agricultural sector had led to the raising of numerous corn farms,
resulting in the destruction of the Balkan Lynx's habitat. Over the past two decades,
their population has drastically declined, with the forest coverage decreasing by more
than 5% annually. In comparison, the global average forest coverage loss is
approximately 0.18% per year (Ritchie, 2021). These have a direct impact on the
decline of terrestrial ecosystems and the loss of biodiversity, being crucial concerns
addressed in SDG15 - Target 15.1, highlighting the significance of conserving and
managing different ecosystems, particularly forests, wetlands, mountains, and drylands
(Sustainable Development Goal 15: Life on Land, 2023.). However, this, also is a
negative factor, affect the achievement of SDG 15 of the country Petunisia more than
the one of the company.

In addition, Grovaz promotes economic growth by offering overseas training

opportunities for high-achieving individuals in management positions, aiming for
diversification and technological upgrading. Further, the company’s investments in
production lines reliance on factory labor, aligning with economic productivity goals
(Target 8.2 (United Nations, 2015)). However, the high number of women working on
factory production lines and the difficulty they face in moving up to management roles
due to cultural norms suggests a possible problem with gender equality in employment
and career growth, contradicting the goals of SDG 8 that strive for gender equality and
empowerment of women and girls, as well as the principles of SDG 5, aiming to
ensure women's full and effective participation. This highlights the importance of
implementing family-friendly policies and practices to promote equal opportunities
and decent work for both genders (Lagarde & Ostry, 2018).

Furthermore, in Petnusia, Grovaz faces challenges in achieving SDG8 due to issues

in the corn farming sector while corn farmers receive minimal payment comparing to
the money paid to brokers by companies, contributing to economic disparities and
hindering sustained growth. It emphasizes the importance of promoting fair and
equitable compensation for farmers, ensuring they receive a living wage and are not
exploited, as stated in Target 8.1 (United Nations, 2015). Additionally, children
participating in farm activities raise concerns about forced labor and child exploitation,
conflicting with efforts to eliminate these issues, as outlined in Target 8.7 (United
Nations, 2015). Child labor poses a major challenge to achieving decent work and
economic growth. It robs children of their childhood, restricts their potential, and
perpetuates poverty and inequality (International Labor Organization, 2023). Child
labor, particularly in dangerous conditions, undermines efforts to promote
employment and economic growth.

Appendix 1: Key Targets for SDG 8 (The Intution of Engineers Siri Lanka, n.d.)
Recommendations
Firstly, Grovaz should prioritize implementing sustainable sourcing practices for corn
by adopting fairtrade principles to ensure local farmers receive fair compensation for
their products and labor. Farmers play a vital role in the agricultural supply chain,
producing crops sold to intermediaries, processors, or retailers (Willingham & Green,
2019). The company can address this issue is to purchase corn from Fairtrade
Certified sources while products that meet Fairtrade standards are certified to have
been produced and traded in accordance with Fairtrade International (2023).
Fairtrade Australia & New Zealand is also part of the global Fairtrade International
network. Thus, it is important for the company to ensure that all corn production is
certified by the International Fairtrade Organization. Given Grovaz's significant
purchasing power in the Petnusia market, brokers will independently strategies to
fulfill the company's demand. Ben&Jerry Ice Cream is a brand known for its wide
range of flavors, including the popular chocolate flavor made with Fairtrade Certified
cocoa. The brand has been dedicated to using Fairtrade Certified ingredients for
many years. They made sure that all ingredients were Fairtrade Certified in Europe by
2011 and in the United States by 2014 (Ben&Jerry, 2023.)

In order to address gender disparities in the workplace and career progression,

Grovanz should lead the way in implementing sustainable employment strategies by
developing family-friendly policies such as flexible scheduling, remote work
opportunities, paid parental leave, and assistance with childcare (Community Tool
Box, 2019), promoting work-life balance and allowing women to pursue their careers
even after having children, as well as working with organizations and educational
institutions to offer continuous training opportunities that encourage innovation and
entrepreneurship. Leading worldwide supplier of audit and assurance, consulting,
financial advisory, risk advisory, tax, and related services, Deloitte, offers a number of
family-friendly policies, including paid parental leave, flexible work schedules, and on-
site childcare facilities, to help women pursue careers after having children (Deloitte,
2023). Employee recognition of Deloitte's amily-friend practices has resulted in good
comments for the company about its flexible work arrangements and family leave
policy. Additionally, working with organizations and educational institutions to offer
continuous training opportunities for staff members can help improve skills and
performances as well as increase employee satisfaction and retention when all staff
members feel appreciated and supported in their professional development (Deloitte,
n.d.-b).
Stakeholders
Local farmers and agricultural laborers will be directly impacted by the implementation
of sustainable sourcing practices, such as fair trade and sustainable farming
techniques. These stakeholders' well-being and means of subsistence will be greatly
impacted by offering continual training opportunities, encouraging sustainable farming
methods, and guaranteeing equitable compensation. Fairer pay, better working
conditions, and training opportunities will all be advantageous to them, eventually
resulting in a more equitable and sustainable agriculture industry. Particularly in
Petnusia, where 90% of the population lives below the poverty line, improving
compensation in the agricultural sectors is crucial for the country's standard of living,
as the economy of the region is strongly dependent on the export of Petnusisian corn.
As a result, Grozav's efforts will not only make its agricultural sector more competitive
and sustainable but also ensure a consistent supply of high-quality products,
enhancing the company's standing in the marketplace and constructing the
achievement to the goal of reducing poverty in the nation (SDG 1). Furthermore, as
large corporations' initiatives demonstrate, adopting sustainable sourcing techniques
aligns with the worldwide trend (Fastercapital, 2023), enhancing Grozav’s market
positioning as a forward-thinking, and responsible participant in the agricultural sector.

Grovaz employees and their families will be impacted by the adoption of family-
friendly policies and continual training opportunities. Family-friendly, including
parental leave and flexible work schedules, will help women in particular grow in their
careers and maintain a work-life balance. Employee retention, well-being, and
satisfaction will all benefit from this. Furthermore, continuous training programs will
improve workers' abilities and output, supporting their career development and job
satisfaction—all of which are in line with SDG 8. This will consequently guarantee a
steady and competent workforce, improving the company's sustainability and
competitiveness. Gender equality in the nation is improved in part by Petnusia's policy
of providing women with greater opportunity for growth within the corporation.
Additionally, by demonstrating to people the value of knowledge and skills and
providing a reason to attend classes, this approach can help increase attendance
rates in Petnusia's schools. Ultimately, this could help achieve SDG 4, which aims to
guarantee inclusive and equitable quality education and promote opportunities for
lifelong learning for everyone (UNDP, 2023).
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