Key Challenges and Opportunities in Implementing Sustainable Business Practices in Australian Companies

BUS5008

Business Research

Assessment 3: Case study Report

Key Challenges and Opportunities in Implementing Sustainable Business Practices in Australian Companies

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1. Abstract

Sustainable business practices across Australia have acquired a wide range of popularity as a significant driver that influences human lives along with changes across the globe. There are dissimilar sustainability objectives involved in this study considering them core factors of businesses to win the customer's trust and improve the social environment. These practices are employees' health and wellness, water consumption, water management, reducing wastages, reducing energy usage, renewable energy usage climate action, and infrastructure and technology usage. This study is based on the secondary data collection method using a qualitative research approach. Therefore, the thematic analysis is used to identify the results that are also included in sustainable design theory. This theory is considered as significantly helpful for businesses in reducing sustainability challenges and implementing a wide range of practices (Haseeb et al., 2019a). The literature review section provided significant information about these practices, challenges opportunities and impacts on Australian businesses. These are identified as the best drivers that may develop the brand reputation, improve the organisational competitiveness, increase the economic benefits, enhance employees' vehement, and develop the customer's trust. Sustainable practices are significant in delivering sustainable goods and services to global customers. A wide range of Australian and global customers believe the green products and majorly require sustainability-based products. Therefore, Australian organisations are mitigating the social, political, environmental, and economic challenges in arranging and producing these products.

2. Introduction

Background

Sustainable business practices are processes and strategies that are used among businesses to reduce the impact of the environment and increase the social impact. Sustainable business practices that are used for business in Australia include energy efficiency, renewable energy, carbon footprint, packaging, greenhouse gas emissions and innovation. Supplies are working with environmental responsible suppliers and with that, the materials are sourced locally with a reduction in carbon footprint (Gov.au, 2024). Some of the challenges that are faced in the implementation of sustainable business practices include creating sustainability knowledge, complex supply chains, waste reduction and adoption of new business models. Moreover, there are some opportunities also provided for sustainable business practices as through cost-sharing confidence will built and the suppliers will be motivated to adopt sustainable practices (Govindan, Shaw & Majumdar, 2021). Moreover, other opportunities, that are faced among Australian companies in implementing sustainable practices include, the use of renewable energy, reduction of waste, conserving water, engaging customers, designing products for sustainability and setting sustainable goals.

Research Problem

Sustainability practices have become the essential activity to get the all-significant factors that may contribute to organisational development (Bocken & Geradts, 2020). However, some major challenges interrupt the sustainability business practices in Australian companies. These challenges are strict regulations, climate change requirements, and social and environmental responsibility.

Research Aim, Objectives and Research Questions

Research Aim

The research aims to identify the challenges and opportunities with the implementation of sustainable business practices in Australian Companies.

Research Objectives

The objectives of the research report are:

• To identify the sustainable business practices among Australian Companies.

• To analyse the challenges and opportunities for sustainable business practices in companies of Australia.

• To understand the impact of challenges and opportunities that are faced in the implementation of sustainable practices for Australian companies

Research Questions

RQ1. Which sustainable practices are adopted among Australian Companies?

RQ2. What is the impact of challenges and the opportunities for sustainable business practices among the companies of Australia?

RQ3. What is the impact of challenges and opportunities that are faced in implementing sustainable practices among Australian companies?

Literature review

Identify the sustainable business practices among Australian companies

Several sustainable business practices are used by a large number of Australian companies (Evans et al., 2017). These practices are identified as diversity at the workplace, taking care of employees' health and well-being, reducing wastage by compositing and recycling the products, adopting sustainable business, using public transport or cycling, reducing meat consumption, focusing on zero carbon emission, and contributing to climate action (Haseeb et al., 2019a). These are the significant sustainability practices that help the business to achieve its sustainability goals. Environmental, economic, and social dimensions are also identified as three significant pillars of establishing a sustainable supply chain across Australian businesses (Thakkar, 2021). Sustainability is considered a significant development that follows the organisational demand without compromising its ability to support the future generation. Social and environmental sustainability practices of Australian companies are closely interconnected and can be followed simultaneously to achieve sustainable production and operation activities.

Challenges and opportunities for sustainable business practices in Australian organisations

Different kinds of challenges and risks are identified and aligned with establishing sustainable practices in Australian businesses (Haseeb et al., 2019b). Some key challenges are identified that have to face the Australian business such as circular economy transition, regulatory compliances, supply chain sustainability, social responsibility, and climate change requirements (Bocken & Geradts, 2020). Additionally, the complex supply chain and high costs of products fluctuate the customer's demands along with the strict country regulations (Averina et al., 2022). However, there are some opportunities for establishing sustainable business practices within organisations across Australia. Sustainable practices improve the brand reputation, establish ethical considerations, increase customer loyalty, and increase financial profitability.

Impact of challenges and opportunities that are faced in the implementation of sustainable practices for Australian companies

A large number of challenges are identified by Australian businesses to implement sustainable practices (Nosratabadi et al., 2019). It is identified as ranging from high costs, complex supply chain processes, lack of customer engagement, employee retention, and strict regulations (Wong & Ngai, 2021). These challenges related to sustainable practice may harm the brand reputation and profitability of the company in the workplace (Mio et al., 2022). Due to the major interruptions in sustainable business practices, the operations and profitability of the company are majorly affected. On the other hand, implementing sustainable business practices at the workplace may lead to reducing wastage, decreasing carbon footprints, and conserving all the natural resources in their production process (Govindan, Shaw & Majumdar, 2021). Thus, the wide opportunities for implementing sustainable practices may develop customer loyalty, and a positive reputation of the brand at the marketplaces, and attract a talented workforce to contribute to achieving the organisational sustainability development goals.

3. Methods

Data Collection Method

It is the process that is used in research for gathering information and answering the research questions, drawing conclusions, and evaluating of outcomes. Primary and secondary are the two kinds of methods for the collection of data (Islam, 2020). However, for this narrative literature review, secondary methods are used with the support of qualitative data, whereas, the primary data collection method is not considered for the study, as narrative reviews are based on the earlier published material.

Search strategy

The search strategy is a plan that is used to find the relevant information for the research question. In the narrative reviews search strategy supports in maintaining the quality of the search with the involvement of peer-reviewed articles. In finding out the research papers and the journal articles, keywords are used. Different keywords that are used for this research include implementation, sustainable practices, challenges, opportunities and Australian companies. Moreover, for the effective search Boolean operators such as AND/OR are used effectively for the research (Panin & Peana, 2019). This research is based on challenges and opportunities faced in the implementation of sustainable business practices for Australian Companies.

Boolean Operators	Use
AND	Challenges AND opportunities, Sustainable Practices AND Implementation
OR	Challenges OR issues, implementation OR execution

Google Scholar was found effective for the selection of research papers and other articles. The databases that are considered for the study include Wiley, research Gate and Science Direct. The search strategies show the database-specific syntax as well as the field codes and operators that are used for combining them.

Selection process

The study selection process is known as the process of screening through which the records are identified in the search. Inclusion and exclusion criteria are used for the selection of articles. In the narrative reviews, there are multiple cycles used for searching, analysing and interpreting of information (Sukhera, 2022). The steps that are followed in the narrative review include a clearly defined research topic, a search for relevant literature, a logical structure of the organisation, and interpreting and discussing the selected articles.

Eligibility criteria (Inclusion and exclusion criteria)

The eligibility criteria in the research are the inclusion and the exclusion criteria that is considered for the study. In inclusion criteria, the studies criteria that are included for research and in exclusion criteria the data or the studies that are excluded from the research.

Inclusion Criteria	Exclusion Criteria
The articles that are considered for research is from the year 2017-2024. Selected articles are concerned to sustainable business practices among Australian companies. Articles that are in the English language are considered for the study (Panin & Peana, 2019). Research papers that are selected are from reliable publishers such as Science Direct, Wiley and Research Gate.	The research papers that were published before 2017 are not considered for the research. The articles are excluded that are not concern sustainable business practices. The articles that are not in the English language are excluded from the study. The data is not collected from irrelevant articles such as Whiterose and Academia.

Data Extraction

In the narrative review an extraction process is followed for gathering and to organise the information that is relevant to studies that are to be included for review. The process of data extraction in narrative review includes the identification of relevant data, organising and presenting the data.

Coding of data extraction

Identified themes	Questions	Sources	Reason for selection
Sustainable business practices of Australian companies	Which sustainable practices are included among Australian Companies	Evans et al., 2017, Haseeb et al., 2019a and Thakkar, 2021	These sources are selected as they provide information concerning sustainable practices.
Challenges and opportunities in implementing sustainable practices	What are the challenges and opportunities in implementing sustainable practices?	Haseeb et al., 2019b, Bocken & Geradts, 2020 and Averina et al., 2022	The selected sources will provide information concerning the challenges as well as opportunities.
Impact of Problems and the Opportunities for Implementing the practices of sustainable practices	What is the impact of opportunities and challenges in the implementation of practices for Australian Companies?	Nosratabadi et al., 2019, Wong & Ngai, 2021, Mio et al., 2022 and Govindan, Shaw & Majumdar, 2021	Existing sources will provide information concerning the effect of faced opportunities and challenges of sustainable practices.

4. Results

Thematic analysis

Theme 1: Sustainable business practice among Australian companies

Different kinds of sustainable business practices are identified in some research. It is identified through the above discussion that a large number of sustainable business practices are followed by the companies in Australia such as climate action, employees' health and well-being, recycling the products, zero carbon emission sustainability goal, reducing plastic usage, and others (Evans et al., 2017). Sustainable business practices are considered the significant activities and factors which help a small to a large number of organizations in getting their brand reputation (Thakkar, 2021). The sustainability development goals of the companies are also significantly helpful for the local communities and people living across Australia.

Theme 2: Challenges and opportunities

It is identified through the above discussion that to implement sustainability practices within the Australian business environment, some kinds of risks and challenges are faced by companies across the nation (Haseeb et al., 2019b). These challenges can be national rules and regulations enforced or changed by the Australian government, changes in economic factors like taxes, sustainability rules in the supply chain, resource arrangements and requirements for climate action, and accomplishing social responsibility. Sometimes, companies cannot fulfil all these requirements which leads to cause of failure in implementing sustainable practices (Bocken & Geradts, 2020). On the other hand, there are numerous opportunities have been identified to lead the sustainability roles in Australian businesses such as increasing customer engagement, improving brand loyalty, and economic profitability.

Theme 3: Impact of challenges and opportunities

Challenges and opportunities both impacts differently in establishing sustainability practices within Australian businesses (Govindan, Shaw & Majumdar, 2021). Major risks and challenges may occur the different issues at the workplace that harm the organisational reputation such as higher costs, lack of customer trust, lack of resources, lack of regulation implementation, and poor supply chain processes (Wong & Ngai, 2021). It also may impact the stakeholder's relationship beyond and across the nation. On the other hand, different opportunities after implementing sustainable practices may provide a large number of social, environmental, and economic benefits to Australian companies.

Data Extraction Table

	First Author and title of publication	Journal	Year	Research aim	Theoretical/ Conceptual Framework	Research design	Method and data analysis	Key Findings
1	Muhammad Haseeb, Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance	Sustainability	2019	To examine the role of social changes in achieving sustainable business performance and sustainable competitive advantage.	RBV (Resource Based View) theory	Quantitative method	Primary data collection method, survey strategy and statistical analysis	It was found that technological and social challenges are important to boost competitive advantage as well as for achieving sustainable business performance.
2	Muhammad Haseeb, Industry 4.0: A solution towards technology challenges of sustainable business performance	Social sciences,	2019	To analyse the challenges that are faced in sustainable business performance	Relation between industry and the technological challenges	Quantitative data collected through the survey	Primary and survey method and use of statistical analysis method.	It was found that in Industry 4.0 there is the growth of sustainable business performance among the small and medium sized enterprises.
3	Saeed Nosratabadi, Sustainable business models: A review	Sustainability	2019	The aim that was developed for the study was to employ stakeholder management and the long-term perspective for meeting the goals.	Entrepreneurial action theory and social manufacturing theory	Qualitative and quantitative research and the mixed method	Qualitative data, survey method by collecting quantitative data, graphical and thematic analysis	It was found that there is a change in the business model as well as the value proposition by the emerging demands through internal separation and outsourcing.
4	Steve Evans, Business model innovation for sustainability: Towards a unified perspective for creation of sustainable business models	Business strategy and the environment	2017	The aim that is developed for the study is to investigate the theoretical foundation for sustainable business models through business model innovation and sustainability innovation.	Business model innovation, network and the stakeholder theory	Qualitative data	Qualitative data and value network analysis	It was found that better ways are created for the sustained way and there are to be different ways found for providing the companies with the confidence that is needed for innovating the sustainable business models.
5	Nancy M.P. Bocken, Barriers and drivers to sustainable business model innovation: Organization design and dynamic capabilities	Long-range planning,	2020	The study aims to identify drivers for sustainable business model innovation.	Sustainable business model innovation and guidance towards greater sustainability	Qualitative as well as quantitative methods	Qualitative data, grounded theory, sampling method, thematic analysis	It is found from the study that there are drivers to sustainable models for sustainable and social entrepreneurship.
6	David T.W. Wong, Economic, organizational, and environmental capabilities for business sustainability competence: Findings from case studies in the fashion business	Journal of Business Research	2021	The research aims to maximise the interactions with the firm and coordinate with objectives and the business sustainability supports in achieving the business vision.	Importance of business sustainability with the influence of firm performance.	Qualitative method	Qualitative case study method, interview method and case study analysis method	It was investigated that managerial competence is contributing towards business sustainability.
7	Rikita Shah Thakkar, Green marketing and sustainable development challenges and opportunities	International Journal of Management, Public Policy and Research	2021	The research aims to focus on renewable energy products as well as to support the trading of carbon credits.	Awareness of environmental issues for global warming and for the effect of environmental pollution.	Quantitative method	Survey method, quantitative data and the secondary method by journal articles and research papers.	Environmental marketing strategies, green values and functions are connected following environmental marketing that is used for the study.
8	Elizaveta Averina, Assessing sustainability opportunities for circular business models	Business Strategy and the Environment	2022	The research aims to understand the criteria for the companies to evaluate the sustainable opportunity for circular transition	Theoretical Contribution for the Customer Experience and the Social Network Theory	Qualitative data	Secondary sources, qualitative data and inductive analysis	The challenges are affecting stakeholders and the level of the system.
9	Chiara Mio, Performance measurement tools for sustainable business: A systematic literature review on the sustainability balanced scorecard use	Corporate social responsibility and environmental management	2022	The research aims to provide an overview of existing knowledge on sustainable business.	Implementation of sustainable strategies	Quantitative and qualitative data and mixed method	Qualitative and quantitative data a, Statistical analysis	The sustainable balance scorecard is used for the management and the accounting field for research
10	Kannan Govindan, Social sustainability tensions in multi-tier supply chain: A systematic literature review towards conceptual framework development	Journal of Cleaner Production	2021	The research aims to increase interest in working toward social sustainability.	Resource-based review theory, institutional theory, resource dependence theory and stakeholder theory	Qualitative data and quantitative data	Secondary method, qualitative as well as quantitative data and analysed through descriptive statistics	It was analysed that the adoption of social sustainability is varied from one to another industry.

4. Discussion

It is discussed in the above study that there are different sustainable practices adopted by Australian businesses. These practices are considered significant for developing an effective and positive workplace by improving social and environmental factors (Haseeb et al., 2019a). These are identified as sustainable diversity, health and well-being, recycling goods, zero carbon emission, clean water management, reducing wastage, and others, However, there are different challenges also discussed in the above study that may interrupt the sustainability practices (Bocken & Geradts, 2020). On the other hand, a wide range of opportunities is also described that may affect Australian businesses after using sustainability practices.

In other research, a sustainable design theory is suggested considering it is functional and helps to develop sustainability changes at the workplace. Sustainability changes and practices can be realised by changes in goods and services, commercial services, employees' behaviour, and the complete social and economic system of the companies. Sustainable design theory is used to discuss business operations while integrating business concepts that are related to sustainability practices (Baldassarre et al., 2020). For instance, green practices and green product development are considered as the set of principles that provide Australian organisations with sustainable environmental and economic impacts with advanced profitability.

Limitations

It is identified through the above discussion that the whole study is based on the secondary data collection method. There can also be the use of primary data collection methods for collecting appropriate and relevant data for this study (Nosratabadi et al., 2019). On the other hand, qualitative data is used which provides only thematic analysis. There can be use the quantitative research method for collecting the numeric data.

Recommendations

There can be the use of mixed methods for developing future research. The Mono method is useful in collecting only one type of data that can be qualitative or quantitative. If the research method is used as a mixed method, then both kinds of data can be collected to improve the study and base of research (Nosratabadi et al., 2019). The qualitative data method provides only the thematic analytical approach which is useful only in collecting the qualitative information. If the quantitative data method is used then a systematic data analytical approach can be involved in this study.

Decision-makers and practitioners in Australian organisations can implement sustainability practices by developing their awareness of the country’s regulations, supply chain process, and community perception (Wong & Ngai, 2021). They should focus on collecting qualitative and quantitative data for better decision-making and implementing effective sustainable practices. This practice should be focused on social, environmental and economic aspects. Australian businesses should be aware of challenges and try to mitigate them or get advanced sustainability impacts along with a wide range of opportunities.

6. Conclusion

It is identified through the above discussion that sustainability practices are developing across the globe impacting a wide range of businesses in terms of providing them economic, social, and environmental benefits. However, some organisations may develop greenwashing practices that are considered illegal and unlawful across various nations and may generate mistrust among consumers. These are the practices that are followed by Australian businesses and identified as climate action, reducing wastage, renewable energy, reducing plastic usage and meeting consumption, and employees' health and well-being. Some kinds of issues may be generated such as strict rules, lack of resources, customer trust, climate changes, and others.

References

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Baldassarre, B., Keskin, D., Diehl, J. C., Bocken, N., & Calabretta, G. (2020). Implementing sustainable design theory in business practice: A call to action. Journal of cleaner production, 273, 123113. https://www.sciencedirect.com/science/article/pii/S0959652620331589

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Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow, C. Y. (2017). Business model innovation for sustainability: Towards a unified perspective for creation of sustainable business models. Business strategy and the environment, 26(5), 597-608. https://onlinelibrary.wiley.com/doi/pdf/10.1002/bse.1939

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