Editing Business ethics (section)

===Sustainability initiatives===
Many [[strategic management|corporate and business strategies]] now include [[sustainability]]. In addition to the traditional environmental 'green' sustainability concerns, business ethics practices have expanded to include [[social sustainability]]. Social sustainability focuses on issues related to [[human capital]] in the business supply chain, such as [[worker's rights]], working conditions, [[Child labour|child labor]], and [[human trafficking]].<ref>{{cite web|url=https://sftool.gov/plan/545/social-sustainability|title=Social Sustainability – GSA Sustainable Facilities Tool|website=sftool.gov|publisher=U.S. [[General Services Administration]]|access-date=2016-03-11}}</ref> Incorporation of these considerations is increasing, as consumers and procurement officials demand documentation of a business's compliance with national and international initiatives, guidelines, and standards.<ref>{{cite web|url=https://sftool.gov/plan/546/responsible-business-initiatives-guidelines-standards|title=Responsible Business Initiatives, Guidelines, and Standards – GSA Sustainable Facilities Tool|website=sftool.gov|publisher=U.S. [[General Services Administration]]|access-date=2016-03-11|archive-date=2017-10-12|archive-url=https://web.archive.org/web/20171012094924/https://sftool.gov/plan/546/responsible-business-initiatives-guidelines-standards|url-status=dead}}</ref> Many industries have organizations dedicated to verifying ethical delivery of products from start to finish,<ref>{{Cite web|url=https://sftool.gov/plan/541/verifying-delivery-sustainable-products-services|title=Verifying Delivery of Sustainable Products and Services – GSA Sustainable Facilities Tool|website=sftool.gov|publisher=U.S. [[General Services Administration]]|access-date=2016-03-11|archive-date=2019-04-20|archive-url=https://web.archive.org/web/20190420072356/https://sftool.gov/plan/541/verifying-delivery-sustainable-products-services|url-status=dead}}</ref> such as the [[Kimberley Process Certification Scheme|Kimberly Process]], which aims to stop the flow of conflict diamonds into international markets, or the [[Fair Wear Foundation]], dedicated to sustainability and fairness in the garment industry.

Initiatives in sustainability encompass "green" topics, as well as social sustainability. Tao ''et al''. refer to a variety of "green" business practices including green strategy, green design, green production and green operation.<ref>Tao, Z., A. L. Guiffrida, and M. D. Troutt, "A green cost based economic production/order quantity model", in ''Proceedings of the 1st Annual Kent State International Symposium on Green Supply Chains'', Canton, Ohio, US, 29–30 July 2010</ref> There are however many different ways in which sustainability initiatives can be implemented by a company.

====Improving operations====
An organization can implement sustainability initiatives by improving its operations and manufacturing process so as to make it more aligned with environment, social, and governance issues. Johnson & Johnson incorporates policies from the Universal Declaration of Human Rights, International Covenant on Civil and Political Rights and International Covenant on Economic, Social and Cultural Rights, applying these principles not only for members of its supply chain but also internal operations. Walmart has made commitments to doubling its truck fleet efficiency by 2015 by replacing 2/3rds of its fleet with more fuel-efficient trucks, including hybrids. Dell has integrated alternative, recycled, and recyclable materials in its products and packaging design, improving energy efficiency and design for end-of-life and recyclability. Dell plans to reduce the energy intensity of its product portfolio by 80% by 2020.<ref name="theguardian.com">{{Cite news|url=https://www.theguardian.com/sustainable-business/blog/best-practices-sustainability-us-corporations-ceres|title=Best practices in sustainability: Ford, Starbucks and more|last=Confino|first=Jo|date=2014-04-30|work=The Guardian|access-date=2019-08-12|language=en-GB|issn=0261-3077}}</ref>

====Board leadership====
The board of a company can decide to lower executive compensation by a given percentage, and give the percentage of compensation to a specific cause. This is an effort which can only be implemented from the top, as it will affect the compensation of all executives in the company. In Alcoa, an aluminum company based in the US, "1/5th of executive cash compensation is tied to safety, diversity, and environmental stewardship, which includes greenhouse gas emission reductions and energy efficiency" (Best Practices). This is not usually the case for most companies, where we see the board take a uniform step towards the environment, social, and governance issues. This is only the case for companies that are directly linked to utilities, energy, or material industries, something which Alcoa as an aluminum company, falls in line with. Instead, formal committees focused on the environment, social, and governance issues are more usually seen in governance committees and audit committees, rather than the board of directors. "According to research analysis done by Pearl Meyer in support of the NACD 2017 Director Compensation Report shows that among 1,400 public companies reviewed, only slightly more than five percent of boards have a designated committee to address ESG issues." (How compensation can).<ref>{{Cite web|url=https://www.pearlmeyer.com/knowledge-share/article/how-compensation-can-support-improved-environmental-and-social-governance|title=How Compensation Can Support Improved Environmental and Social Governance|date=2017-03-30|website=Pearl Meyer|language=en|access-date=2019-08-12}}</ref><ref name="theguardian.com"/>

====Management accountability====
Similar to board leadership, creating steering committees and other types of committees specialized for sustainability, senior executives are identified who are held accountable for meeting and constantly improving sustainability goals.<ref name="theguardian.com"/>

====Executive compensation====
Introducing bonus schemes that reward executives for meeting non-financial performance goals including safety targets, [[greenhouse gas emissions]], reduction targets, and goals engaging stakeholders to help shape the companies public policy positions. Companies such as Exelon have implemented policies like this.<ref name="theguardian.com"/>

====Stakeholder engagement====
Other companies will keep sustainability within its strategy and goals, presenting findings at shareholder meetings, and actively tracking metrics on sustainability. Companies such as PepsiCo, Heineken, and FIFCO{{clarify|What is FIFCO? Please also replace this jargon acronym with the full term the other times it appears in the article|date=April 2018}} take steps in this direction to implement sustainability initiatives. (Best Practices). Companies such as Coca-Cola have actively tried improve their efficiency of water usage, hiring 3rd party auditors to evaluate their water management approach. FIFCO has also led successfully led water-management initiatives.<ref name="theguardian.com"/>

====Employee engagement====
Implementation of sustainability projects through directly appealing to employees (typically through the human resource department) is another option for companies to implement sustainability. This involves integrating sustainability into the company culture, with hiring practices and employee training. General Electric is a company that is taking the lead in implementing initiatives in this manner. Bank of America directly engaged employees by implement LEED (leadership in Energy and Environmental Design) certified buildings, with a fifth of its building meeting these certifications.<ref name="theguardian.com"/>

====Supply chain management====
Establishing requirements for not only internal operations but also first-tier suppliers as well as second-tier suppliers to help drive environmental and social expectations further down the supply chain. Companies such as Starbucks, FIFCO and Ford Motor Company have implemented requirements that suppliers must meet to win their business. Starbucks has led efforts in engaging suppliers and local communities where they operate to accelerate investment in sustainable farming. Starbucks set a goal of ethically sourcing 100% of its coffee beans by 2015.<ref name="theguardian.com"/>

====Transparency====
{{Main|Transparency (behavior)}}
By revealing decision-making data about how sustainability was reached, companies can give away insights that can help others across the industry and beyond make more sustainable decisions. Nike launched its "making app" in 2013 which released data about the sustainability in the materials it was using. This ultimately allows other companies to make more sustainable design decisions and create lower impact products.<ref name="theguardian.com"/>