Academic Master


Sustainability Case Study

Environmental impacts

One of the proposed solutions to the environmental effects is Compliance with international standards and agreements that promote environmental sustainability. Examples of such standards are the Paris Agreement on climate and the SDG goals. The company will aim at reducing emissions by improving its logistic components and using renewable sources of energy that have little impact on the environment. The company will also recycle waste products in its attempt to promote environmental sustainability.

Risk 1

The main risk that may result from the solution described above is the increase in cost and administrative burden as the company tries to comply with the regulations and policies on environmental sustainability. The rules and policies may also be changed from time to time, and aligning the company operations with them may increase the operating costs.

The probability of occurrence of this risk is high. The consequences of occurrence of the risk are medium. That is, the risk may considerably affect the company’s economic and environmental performance.

Risk mitigation strategies

The company will need to limit the risk to minimize its adverse effects. They need to conduct research that will help them come up with cost-effective but environmental friendly solutions that will help them comply with the various regulations on sustainability.

Economic Impacts

For the company to curb the adverse economic impacts, it is suggested that there is the need to make policies that will help control variation in exchange rates, inflation and tax rates.

Risk 2

Coming up with policies that will effectively control variation in exchange rates and inflation is near to impossible. The reason for this is the fact that the two are controlled by the market forces (the forces of demand and supply). Therefore, there is the risk that the policies that the company makes may not bear fruits. The probability of occurrence of this risk is high, and the consequences of the risk are also high.

Risk mitigation strategies

One of the leading solutions to this problem is active government policies. For instance, the government may introduce a tight fiscal policy to deal with inflation.

Socio-cultural impacts

To avoid the adverse socio-cultural impacts, the author proposes that the company should have good cultural sensitivity and use an approach that promotes equality in the workplace. Messages in the company adverts or other places should also not encourage sexism, racism, and the like. Embracing cultural diversity in the workplace will earn an excellent reputation for the organization.

Risk 3

If the firm fails to embrace cultural diversity in its workforce, it may suffer lousy reputation, and this may eat into its performance. The possibility of incidence of this risk is medium, and the consequences are also medium.

Risk mitigation strategies

The fundamental solution to this problem is for the company to ensure that there is cultural diversity in its workforce by putting the necessary policies in place.

Political Impacts

The solution proposed is that the organization should always be prepared to comply with all the government regulations with regards to sustainability. The company must also prepare to adapt to any changes in the regulations.

Risk 4

Compliance with some government regulation may be very costly, and therefore it may adversely affect the earnings of the company. The possibility of this risk occurring is medium. Similarly, the impact of the risk to the company is medium.

Risk Mitigation Strategies

The company needs to look for cheaper ways of complying with the regulations.



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