Developing Sustainability Indicators Monitoring For Enterprise Business Essay

The term ‘sustainability ‘ refers to the human desire for an environment that would harvest current and future benefits. ” Sustainability is non an absolute, independent of human conceptual models. Rather it is ever set in the context of determinations about what type of system is to be sustained and over what patio-temporal graduated table. “ ( Allen and Hoekstra 1994 )

Monitoring procedure is an emergent and a major direction response to the bing challenges in sustainability. It helps in understanding the sustainability systems and its values. Monitoring systems by and large focuses on developing the assorted suited tools that would assist in estimating the relatedness of the sustainability patterns. Basically, these supervising systems reveal the tendencies and forms of a sustainable system by building a good apprehension of those systems. Comparison of future desired conditions with the current province of systems can be established. The alterations in the full system can be easy detected and can be used as an earlier warning against alteration. The growing and advancement of the sustainable system in an endeavor can be efficaciously measured.

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Indexs can supply important counsel for decision-making in a assortment of ways. They can interpret physical and societal scientific discipline cognition into manageable units of information that can ease the decision-making procedure. They can assist to mensurate and graduate advancement towards sustainable development ends. They can supply an early warning, sounding the dismay in clip to forestall economic, societal and environmental harm. They are besides of import tools to pass on thoughts, ideas and values because as one authorization said, “ we measure what we value, and value what we measure. ”

Indexs of sustainability are different from traditional indexs of economic, societal, and environmental advancement. Traditional indexs such as shareholder net incomes, asthma rates, and H2O quality step alterations in one portion of a community as if they were wholly independent of the other parts. Sustainability indexs reflect the world that the three different sections are really tightly interconnected, as shown in the figure below:

Cleavage of sustainable indexs

As this figure illustrates, the natural resource base provides the stuffs for production on which occupations and shareholder net incomes depend. Jobs affect the poorness rate and the poorness rate is related to offense. Air quality, H2O quality and stuffs used for production have an consequence on wellness. They may besides hold an consequence on shareholder net incomes: if a procedure requires clean H2O as an input, cleaning up hapless quality H2O prior to processing is an excess disbursal, which reduces net incomes. Likewise, wellness jobs, whether due to general air quality jobs or exposure to toxic stuffs, have an consequence on worker productiveness and contribute to the lifting costs of wellness insurance.


Sony EricssonA is a joint venture established on October 1, 2001by the Nipponese consumer electronics companyA Sony CorporationA and the Swedish telecommunications companyA EricssonA to do nomadic phones. The declared ground for this venture is to unite Sony ‘s consumer electronics expertise with Ericsson ‘s technological leading in the communications sector. Both companies have stopped doing their ain nomadic phones.

Sony Ericsson has strived to keep the highest criterions in our attack to sustainability. Sustainable development and production is considered to be of import challenges for the hereafter by Ericsson which demands an immediate action from responsible makers. Sony Ericsson have put into consequence a life-cycle attack to merchandise development.Sony Ericsson nomadic communications is a planetary provider of high in writing and multimedia cell phones with assorted characteristics along with accoutrements and personal computer cards.

The merchandises offer a combination of powerful engineering with originative applications for Mobile such as music, manner, imagination, communications and amusement. The net consequence is that Sony Ericsson is an luring trade name which opens up new avenues for growing in concern for Mobile operators and along with offering desirable, fun merchandises to stop users. In the nine old ages period, Sony Ericsson has been runing and it has maintained a strict attack to guaranting that it maintains the same criterions across all ironss.

For Sony Ericsson, the attack to sustainability is based on the undermentioned rules:

To safeguard the future net incomes in environmental friendly related issues.

Bettering the life and working conditions of all those who are involved in production of merchandises.

Not to do a negativeA impact on the consumers.

To better the impact of our merchandises and activities on the environment.

Sony Ericsson have focused on low energy ingestion chargers.Sony Ericsson will present coursers and phones with this interface good in front of the coveted industry timeline. Our portfolio of coursers is already one of the best in the industry in footings of efficiency and energy ingestion. The French telephone was built with to the full sustainable stuffs, the optional courser had minimum no-load power and the construct offered decreased packaging with the riddance of paper manuals. In 2008, Sony Ericsson perceivers were introduced. The planetary return back strategy and the green bosom undertaking bring us closer to our vision of being a leader in sustainability in the nomadic phone industry ‘ . Changeless improvising is being made by them so as to better the on the job conditions and environment.

Sony Ericsson set aggressive, absolute marks:

Reduce the sum nursery gas emanations from the full life rhythm by 15 % boulder clay 2015 ( based on 2008 twelvemonth degrees )

Reduce the sum nursery gas emanations from So internal activities by 20 % boulder clay 2015 ( based on 2008 twelvemonth degrees )

Sony Ericson has continues duologue with the parent companies on the topic of edifice more sustainable concern.

Listing & A ; Justification Of Indicators Relevant To The Enterprise

Economic Index:

The economic index refers to the system of production and ingestion ( including finance ) and refers to the market based and to the unpaid economic system.

Economic prosperity is a really of import component of sustainable development ; it allows to battle poorness, to finance redress of old loads, to do alterations in our development economic policy and market mechanisms must be applied in support of sustainable development, and non against it. Without denying the importance of tools such as statute law, public consciousness etc. , and the economic system is a really powerful tool for sustainable development. Used in the right manner, it provides efficient inducements to do picks for sustainable development.

These inducements need to be on all degrees of society, they must work in favor of sustainable development by:

Making sustainable investings both in the public and private sectors profitable,

Imparting research into cognition and solutions for sustainable development

Influencing ingestion determination on all degrees.

Tele communicating industry is really of import for sustainable development as it generates employment & A ; wealth every bit good as it besides provides economic benefits to the society. This all attribute rises concerns at both micro- and macro degrees.

The economic indexs and aim for the each specific index is mentioned below:



Index ‘s

Sufficient supply and goods and services

GDP/ capita

Efficient wealth creative activities

Entire factor productiveness, cost, gross revenues

Economic system ‘s development and


Net investing, R & A ; D expenditures,

Accumulated public and private debt

GDP Per Capita:

Gross domestic merchandise ( GDP ) is nil but the over all norm of the addition or lessening of economic growing. GDP is nil but the market value of all goods and services produced by the economic system during the specific period which is frequently one year.2008 survey by Sony Ericsson on the socio-economic impact of nomadic communications in Sudan found that nomadic phone entree generates important socio-economic benefits for gross domestic merchandise ( GDP ) , notably for people at the base of the economic pyramid.

Entire factor productiveness, cost, gross revenues:

In simple linguistic communication Productivity gives good ability to understand into inflationary force per unit areas, and how much GDP can increase without impacting rising prices. With high demand of Sony Ericsson Mobiles and the company has decided to cut down operating costs, connectivity is expected to go economically feasible for the local operator within three old ages.

Net investing and capital outgos:

This index specifies the distribution to suppliers of capital broken down by involvement on debt and adoptions and dividends on all categories of portions. Then Sony Ericsson describes how it has utilise its capital the degree of company committedness to socially responsible puting. These are the mentioned sustainable indexs which help the Sony Ericsson, telecommunication industry to prolong in the market.

Environmental Indexs:

Among the assorted sustainable indexs available in the monitoring system for the endeavor chosen, the premier importance moves to the environmental indexs as it drives the sustainability nucleus constructs. These environmental indexs provide a step of the company ‘s impacts over the natural environment entities viz. on the human, air, H2O and land ecosystems. The impacts of such patterns can be a local or a planetary one depending upon the nature of the procedure. The ultimate mark is the interest holders in common. Sing the endeavor of Sony Ericson, the menace is posed over the employees who work in the endeavor.

Our endeavor corresponds to the telecom industry where by the range of analysis for the telecom merchandises and the installations in Sony Ericson company is enormous. Hence it is deserving to develop indexs for the company to measure the effectivity of its sustainable patterns. The sustainability indexs relevant to Sony Ericsson Company are identified as below.

Materials- ( substances of concern )

Energy- ( power ingestion )



Air emanations – ( carbon footmark )

The above listed indexs are identified to be more important for transporting out sustainable monitoring model for the company, Sony Ericsson.

Materials ( substances of concern ) :

Sing the first index, stuffs, it refers to the assorted elements of concern that are used in the company. Bing a strong participant in the telecom industry, Sony Ericsson, produces nomadic phones that incorporates brominates flame retardents ( BFR ) on its boards and shells. Furthermore poly vinyl chloride ( PVC ) is besides used in the coursers. Hence sing the use of these stuffs in the company provides more concern over the sustainability issues in the company. Hence developing this index would assist in the measuring of sustainability impacts of utilizing such stuffs inside the company.


For any industry or an endeavor, the use of energy becomes really indispensable for its effectual operation. Sony Ericsson is non an exclusion and as it addresses the energy ingestion issue through its coursers for nomadic phones. This index provides effectual measuring of the energy ingestion that would assist the company to integrate procedures that would take to lesser energy ingestion for the sustainable hereafter.


Sony Ericsson continues its operations in the telecom industry through its assorted scopes of nomadic phones and accoutrements that pose a inquiry whether they are bio-degradable or non. The toxicity degrees in the merchandises and their environmental impacts can be measured utilizing this index. Hence for a merchandise based company like Sony Ericsson, this index becomes really important for guaranting sustainable patterns.


Transport is an inevitable index in any sector as the motion of either goods or services becomes a compulsory procedure in the work countries. Sing Sony Ericsson, the use of conveyance service, the sort of manners used, the frequence and strength of conveyance procedures involved in the company is truly high which can impact the environment in many bad ways. Therefore this index is more relevant to the company in placing the impact that company ‘s conveyance operations are projecting towards the environment.

Air emanations

With a big company like Sony Ericsson, the production capacities for their workss in assorted locations are tend to be by and large larger. This consequences in the production of more C dioxide emanations across the nearby countries of the works locations. So, careful monitoring of such emanations and commanding it becomes really of import for the company to measure the sum of air emanations of the company.


Apart from holding economical and environmental sustainability it is every bit much as of import for the company to be socially of import excessively. Since every company they are socially bounded, it is of import for them to be connected with the society. For a company to be effectual and sustainable, both the person and community resources need to be developed and used within the context of four steering rules – equity, societal inclusion and interaction, security, and adaptability.

Telecommunications industry is playing as a really of import participant in determining up the economic system. The five chief indexs of Sony Ericsson for societal sustainability are as follows:

Stakeholder engagement

Human rights and concern moralss

Equal chances and non- favoritism

Health and safety

Bribery and corruptness

Sony Ericsson maintains good monitoring systems on this sustainability to hold better end product.

Stake holder engagement

Stakeholders are those who have a direct relationship to, or are affected by, our concern. They include investors, clients, employees, providers, industry spouses, authoritiess, end-users, non-governmental organisations and the media. So it is of import for any administration to hold a good relationship with them. By holding sustainable relationships with the stakeholder provide the company with long tally benefits. Stakeholder engagement towards a peculiar company creates a good image for the company among the populace.

Human rights and concern moralss

Business battle in human rights is non merely a duty but besides an chance. It is really important for any company to act in a socially and ethically model manner and operates concern in conformity with all national Torahs and ordinances. This is a chief index for company to happen out whether it is sustainable or non.

Equal chances and favoritism

One of the chief indexs that should be addressed in sustainable development requires companies to supply equal chances to all regardless of their gender, race and disablements. Most of the research identifies that gender disparity as one of the of import issues that need to be addressed by the industry, including pulling more adult females into professional occupations. By holding equal chances make the company to hold better sustainable patterns.

Health and safety:

Health and safety is one the most of import index that production industry should concern about. Supplying employees with wellness and safety criterions must be addressed decently. The action program included installing protective railings, bettering procedures and equipment for chemicals managing, and implementing wellness and safety processs for disciplinary and preventative action.

Bribery and corruptness:

Another chief issue that should be addressed the companies is bribery and corruptness. Sometimes as like human rights jobs, is a big graduated table job that can non be addressed the companies. So companies must do careful consideration in respect to this job which has a direct impact on sustainability of any company.


Justification For The Economic Indexs:

China, India, Indonesia and Brazil are among Sony Ericsson ‘s 10 largest markets in gross revenues portion. Emerging markets represent around one tierce of planetary GDP, and web gross revenues in emerging markets grew an estimated 15 per centum in 2008, stand foring over half of web gross revenues.

High growing market:

The above mentioned statistical informations proves that the Sony Ericsson ‘s GDP is increasing to prolong in the market. Furthermore, connectivity is an instrument to bring forth economic chance. In fact, a 2007 Deloitte analysis of sub-Saharan Africa, Latin America, the in-between E and Asia Pacific confirms that a 10 per centum addition in nomadic incursion leads to a 1.2 per centum addition in gross domestic merchandise ( GDP ) in developing states – twice the tantamount impact in developed markets.

Using life- rhythm believing to telecom web helps cut down the entire cost of ownership for clients by showing how to optimise energy. Two surveies conducted by Sony Ericsson in 2008 showed in the lowest sections, money transportation, larning and nomadic applications in wellness are in high demand. This shows that the company is done the research and addressed the capital investings, net income and portion holders ‘ value to prolong in the market.

Table.2 classs of economic indexs:

Provides information on /measures

Economic issues addressed

Stake holders straight affected

Main clients, market portion & A ; part to GDP

Contribution to GDP and wealth creative activity

Customers, national authoritiess

Fiscal viability of concern and wealth creative activity

Capital investings, net incomes, portion holders value, wealth creative activity, gross distribution

Stockholders, creditors, insurance companies

Types of merchandise, gross revenues, net incomes, values added

Gross saless, net incomes and value added

Employees, clients, creditors, stockholders.

Therefore the above mentioned Economic Indicators every bit provided information on steps and besides addressed the economic issues and how the stakeholders are straight affected. The extra indexs include generally- applicable steps of economic public presentation such as net incomes before involvement and revenue enhancement. The micro economic issues have traditionally dominated concern determination doing with a focal point on short term returns, which is in the telecommunication industry frequently based on production volumes instead than on valued added merchandises and services.

Environmental Indexs:

Indicator – “ stuff ”

The material index provides information about the assorted substances and elements that are used in the merchandises and procedures of the company viz. Sony Ericsson. The assorted chemical substances like PVC, BFR and lead in the fabrication of nomadic phones and its accoutrements are taken into history in this index.

One of the chief substances highlighted by the media is brominates flame retardents ( BFR ) that reduces the hazard of fires in the nomadic phones. The major hazard of BFR is that it becomes a dioxin under uncontrolled incineration. The company besides strives to take this substance from its courser and overseas telegram instances. Thereby the company has phased out the BFR in most of its merchandises. Furthermore Sony Ericsson takes the pride of going the first nomadic phone house to eliminate the full usage of BFR in its merchandises.

The other major substance is the poly vinyl chloride ( PVC ) because it releases hydrochloric acid and dioxins that gets accumulated in the carnal fat and causes malignant neoplastic disease to human due to the assorted carcinogens. Sony Ericsson worked difficult to happen options for PVC and eventually from 2007 all new Sony Ericsson merchandises were PVC free.

Other substances of concern were the phthalates, Be and Sb were besides found risky and therefore as an effort to travel environment friendly, the Sony Ericsson merchandises are now about free from such elements which can be really good apparent from the company ‘s study over sustainability.

Table.3 sustainable index model for societal sustainability


Provides information on/ steps

Environmental issue ( s ) addressed

Stakeholders straight affected/interested


Use of substances of concern like PVC, BFR, Be etc.

Use and depletion of resources

Suppliers, contractors, NGOs, national authoritiess


Energy usage and efficiency, usage of renewable resources of energy.

Use of energy resources, part to planetary heating.

Suppliers, contractors, local communities, NGOs, national authoritiess.


Environmental impacts of merchandises ‘ life rhythm

Environmental impacts of merchandises like merchandise toxicity.

Customers, NGOs, national authoritiess, insurance companies and creditors.

Conveyance and logistics

Transport distances for merchandises and with regard to employees

Intensity of conveyance activity carried out, usage of non-renewable resources etc.

Contractors, providers, local communities and governments, national authorities and NGOs

Air emanations

Contribution to air, H2O and land pollution

Air wastewaters, C emanation, related environmental impacts

Local communities and governments, national authoritiess, NGOs, creditors, stockholders.

Indicator – ” energy ”

The index provides steps on the use of the energy and its efficiency and the use of renewable beginnings of energy. With regard to the company, Sony Ericsson the nomadic phones and their coursers come into image sing the energy or power ingestion.

Sing the sum energy life rhythm impact of a nomadic phone, there is a no burden power ingestion issue. Sony Ericsson tried to cut down this and achieved a 0.15 tungsten of mean no load power in its nomadic phone coursers.

Indicator – “ merchandise ”

The merchandise index provides information about the environmental impacts that happens throughout the life rhythm of the merchandise. It exhibits the other risky and toxic belongingss of the nomadic phone merchandises and its accoutrements of Sony Ericsson. The merchandise gathers more importance in placing the step of the sustainability in a company like Sony Ericsson as the full concern axial rotations out of its merchandises.

The company has come up with the enterprise towards the development of the nomadic phone merchandise that is environmentally sustainable. In 2008, the company initiated a construct called “ green bosom ” . Harmonizing to this construct, the full life rhythms of merchandises are revised and the uses of assorted elements are identified to be environmental friendly.

Indicator – “ conveyance and logistics ” :

The index provides information about the distances involved in the transit of merchandises and the employees every bit good in the company. This index throws visible radiation on the use of the assorted non-renewable resources and the corresponding emanations that would present a considerable menace to the environment.

Sony Ericsson collaborates with the logistics companies so as to cut down the impact of conveyance on the overall C footmark. The company framed out a separate environmental friendly guideline in choosing the vehicles and fuels for its conveyance operations.

Harmonizing to the life rhythm appraisal made by the company in 2008, it was found that 3.7 kilograms of C dioxide emanation resulted out of the transit of which 90 % contributed from the outbound transit. Thus the serious attempts have to be made to fall in with Logistics Company and cut down the weight of packaging every bit good so that overall impact of transit can be minimized.

Indicator – “ air emanations ” ( carbon footmark )

The index provides information about the sum of pollutants that the company introduces to the land, air and H2O ecosystems. It besides defines the degree and badness of the impact and the corresponding impacts on the environment.

Sony Ericsson has been be aftering out for larger volumes of production because of concern restraints and this causes a larger emanation of C dioxide into the air. The three major activities were identified to lend towards carbon emanation viz. mills, offices and travel.



The impact of concern travel is another job accounting for higher C emanation. Reducing the long distance travel by presenting alternate meeting agreements like Tele-Presence systems, an advanced picture conferencing technique have been initiated as an effectual option to cut down concern travels. These all techniques were thought for cut downing the company ‘s entire C emanation from its concern operations.


Companies are paying more attending to the societal dimension of sustainable development, chiefly due to an experient displacement in stakeholder force per unit areas from environmental to social-related concerns. During the last decennaries of the twentieth century, assorted important stairss were taken to pull the societal dimension of sustainable development into unfastened.

Sony Ericsson has taken the undermentioned societal issues for their sustainability in the market.

Stakeholder engagement

Human rights and concern moralss

Equal chances and non- favoritism

Health and safety

Bribery and corruptness

Table.6 sustainable index model for societal sustainability


Provides information on/ steps

Social issue ( s ) addressed

Stakeholders straight affected/interested

Stakeholder engagement

The degree of committedness to external stakeholder

Stakeholder engagement

All external stakeholder

Human rights and concern moralss

The degree of committedness to protecting human rights of all stakeholders, employees

Human rights and concern moralss.

All stakeholders, employees, trade brotherhoods.

Equal chances and non-discrimination

The degree of committedness to non-discrimination and to supply equal chances

Equal chances and non-discrimination

Employees, trade brotherhoods, national authoritiess

Health and safety

Employee wellness and safety

Health and safety

Employees, trade brotherhoods, national authoritiess

Bribery and corruptness

The attack to avoiding graft and corruptness

Bribery and corruptness

Local communities and governments, national authoritiess, NGOs, creditors

Indicator – “ stakeholder engagement ”

Board engagement is important for the execution of underlying values for sustainable development and saving of cultural values. Therefore, engagement of local communities and other stakeholders is important in determination devising procedure. Sony Ericsson seeks to react quickly to stakeholder concerns. They conduct an one-year stakeholder study placing the top-ranked societal, environmental and economic issues for clients and investors. They measure employees ‘ positions in one-year studies and polls. In 2008, both investors and clients were peculiarly interested in supply concatenation direction.

Indicator – ” human rights and concern moralss ”

Protection of human rights is another relevant sustainability of the societal concern that should be addressed when sing electronics industry. Sony Ericsson respects all human rights, including the right to freedom of look of thoughts and as tools for democracy. At times the telecom industry can meet struggles in realization of these rights. Sony Ericsson is turn toing the relevant issues to us and our market, but at present, considers that the chief concerns in this country autumn within the operators ‘ sphere. As society understands of these issues evolves and the boundary line between operator and seller alterations, Ericsson will reevaluate its place.

Indicator – ” equal chances and non- favoritism ”

Addressing sustainable development requires companies to supply equal chances to all regardless of their gender, race or disablements. Sony Ericsson is doing headway in a male dominated industry, and the figure of adult females in the work force increased worldwide from 12,000 in 2004 to more than 17,000 today. The figure of adult females busying the top 200 functions increased from 12 per centum in 2007 to 13 per centum in 2008, while those in line direction places remained steady at 18 per centum.

Our aim is to develop a direction squad in which the figure of females is proportionate to the female work force as a whole Sony Ericsson leading development enterprise for employee ‘s raisings cardinal capablenesss and competences and helps set clear ends. We seek to beef up and intensify leading qualities at all degrees of the organisation. During 2008, we launched 122 preparation Sessionss to back up the enterprise and 1,979 directors participated, compared to 78 Sessionss and 1,281 participants in 2007. To maximise learning chances, we mix classroom Sessionss with informal larning such as mentoring, occupation rotary motion, coaching, and synergistic feedback. This provides employees with practical support in developing the accomplishments to spearhead and serve technological convergence.

Indicator – “ wellness and safety ”

In add-on to rewards and benefits that are universally of import, one of the employee-related issues related to occupational wellness and safety. Occupational wellness and safety ( OHS ) is a planetary precedence for Ericsson. In 2009 we will aline our bing locally tailored OHS attack with a globally co-ordinated system applicable to all markets. Unit caputs will guarantee that they set appropriate OHS criterions that are realistic, come-at-able and consistent with local runing conditions and statute law. During the twelvemonth we will finalise a group policy on OHS that will be rolled out throughout the concern. .

Indicator – ” graft and corruptness ”

Corruptness is one of the chief obstructions in equal distribution of wealth. The Ericsson group direction system, implemented and monitored wherever we do concern, ensures unity and high criterions of behavior. A whistle blower process is in topographic point for employees to describe misdemeanors associating to accounting, internal controls and processs or deceitful patterns. In 2008, all market unit employees took the anti-corruption e-learning. We besides offer developing classs educate employees on the codification of concern moralss and anti-corruption.


Sustainable development has become really important particularly in the telecom industry. In order to react to the assorted sustainability challenges forced in the industry, sustainable development becomes really important. The model for the monitoring system developed with the corresponding indexs ; supply a comprehensive tool for mensurating sustainability in the telecom industry. The proposed indexs in the above treatment, addresses to the cardinal environmental, societal and economic issues that are prevailing in the telecom industry. The indexs developed have been matched with the assorted procedures followed in the Sony Ericsson endeavor and the issues sing the attachment to sustainable patterns have been performed. Further, with the altering needs the indexs are prone to alterations and restructuring of the monitoring systems might be critical for the future sustainability.


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