Introduction

About Harvey Normal Holdings Limited

Harvey Norman Holdings Limited is a publicly-traded company listed on the Australian Securities Exchange Limited (ASX). The primary business operations undertaken are property business, integrated retail, franchising, and digital business. Harvey Norman Holdings Limited is also being considered as a holding company for third-party franchisee businesses and trusts. The retails outlets of the company sell home products and electrical items under the moniker Harvey Norman Discounts, a trademark of the franchisees. Franchisees can also get advice and promotion from the company. In addition to that, the company offers consumer loans and invests in real estate. According to the annual report, the company’s dividend has increased by roughly 11% each year on average over the last ten years. The earnings per share and dividends per share rise at such a quick pace over the years have strengthened the company’s financial position.

What is Sustainability in the Business Context?

Sustainability in business is referred to as the activities that are undertaken with a positive value and promotes positive impact on the society as whole. Sustainability is now increasingly essential for all businesses, regardless of industry. Sustainability is referred to as the strategy of the business for the creation of long term value by taking into account the factors that affect the social, economic and ecological environment. Sustainability entails satisfying the demands without jeopardizing the upcoming generations’ ability to meet their demands. It requires economic and social resources with the context and addition to the resources found naturally (Pedersen et al. 2107). Challenges associated with the environment and the remedies to it do not only constitute sustainability or confine it. There are many concerns associated with social equality and the economy’s growth that are considered in the general context of the business that is eyeing at sustainability.

In general, business sustainability is divided into two categories:
• The impact associated with the business activities on the sustainable environment; and
• The impact associated with the business on the society.
A company’s primary purpose, the goals and long term objectives are likely to be affected by sustainability. When the business refuses to accept the responsibilities, problems associated with the economy and the society will arise.

When the decisions regarding the business are formulated, it should be made by keeping the factor of sustainability in mind. Sustainability has a broad range prevailing in the economy. The business has to keep regular and updated information for the benefits associated with the short period, ensuring that the short-term gains do not convert into the obligation of the long-term liabilities.

Due to the uncertainty in the changing global trendsd, companies are increasingly recognizing the need of remaining more sustainable. It has become an essential part of the business that will help connect the brain with the action gap that has to be performed in the business. This is being solved by the proper implementation of the sustainable frameworks (Hermelingmeier & von Wirth, 2021). It consists of various advantages, which further helps boost the value of the brand, boosts efficiency, the talent acquisition and retention, and fulfils the needs of the society.

Sustainability Strategy of Harvey Norman Holdings Limited

Harvey Norman reports about sustainability in a well-organized manner. The company’s sustainability reporting seeks to create value for shareholders, customers, workers, and communities, which is accomplished through various sustainability performances, including corporate social responsibility (CSR). Philanthropy for the community, ensuring product quality, balancing supply chain activities and the rights of stakeholders, ensuring benefits and effective allocation of compensation, diversification and rights of the labour, adequate training, safety and health, monitoring climate and energy changes, policies of the environment and reporting, management of the resources, ensuring the ethics of the board leadership, and transparency maintenance are among the activities of that ensures sustainability of the company (Limet al. 2020). The firm believes that the only way to create value is to assist in preserving the community and the environment. The firm contributes to the community’s long-term growth and development by playing a constructive role in the areas it serves. Sustainability is seen to be a possibility for generating a significant and long-term return for the shareholders. Harvey Norman has made it a goal to find new ways to save energy and reduce carbon emissions (Dumay & Hossain, 2019). The effectiveness of the companies is assessed by the climate and the energy change components, which aids in tackling climate change through suitable strategies and regulations, efficient operations of the energy, renewable energy production, and resorting to other environmental alternative technologies. Harvey Norman Holdings Limited, in this respect, is considered to be efficient in managing the risks that are connected with climate change. With the proper management of the supply chain and logistics and the distribution channels, the business has achieved such management goals and objectives. The firm is constantly working to improve its safety record. Moreover, providing indigenous people with more possibilities to participate in sustainable employment should be a top priority for the enhancing the diversity policy and inclusion policy of Harvey Norman Holdings Limited. The firm recognizes and manages risk effectively, including the calculation for taking the risk, which is an essential component of its strategy for creating long-term value for its shareholders. The firm conducts supplier chain audits to ensure that its activities are ethical. The firm wants to cut down on the amount of energy, water, and materials it consumes to discover more effective ways to improve supply chain management. Furthermore, Harvey Norman Holdings Limited creates a healthy business environment that is supported by a cohesive and welcoming community.

Sustainability concerns, in general, relate to the challenges that an organization has in reaching or sustaining its sustainability objectives (Ghobakhloo, 2020). Harvey Norman Holdings Limited is a company that sells furniture, consumer electronics, and computers also to ensure that the firm will be able to maximise the profit by making use of the product that can be recycled. Similarly, the firm takes sufficient steps to address these concerns, such as reducing the usage of plastic bags, recycling the products, and reusing wooden pallets. Sustainability is considered an essential component of a company since it aids in the management of the firm’s activities to have overall benefits on society. Business organizations tend to commit to acting ethically and help in contributing to economic progress by enhancing the effectiveness and the quality of life for the employees, the families, and the social community, and the society as a whole. And this objective is quite embodied by Harvey Norman Holding’s business processes and operations. As a result, the management of components of sustainability in Harvey Norman has been extensively visible (Berg, Koelbel, & Rigobon, 2019).

Conclusion

In order to survive and justify its survival, a business has to undertake many activities that are sustainable in the social and environmental contexts. Reporting of the sustainability expands on current business tools of the management and the concepts and uses them in colossal contexts. Harvey Holdings Limited uses traditional management approaches of the business, such as indicators of the critical performance, but it focuses on managing the life cycle and the bottom line. It necessitates a sophisticated strategy to incorporating nonfinancial, long-term performance metrics into the company standard reporting. For corporate organizations, the challenge and issues associated with sustainability help the company to steer and improve their operations. With a proper goal and planning, sustainability can be improved and this will further help the business to improve and expand in future.

References

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