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NO plastic please...

NO plastic please...

Wednesday, March 5, 2008

Case Study

An analysis on how the company response on environmental issues that is Zero Plastic Packaging topic.

Issues:
-Examine a company's responsibility towards the society
-Understand the importance of social and environmental issues
-Determine how a company's stand on social and environmental issues can contribute to enhancing the company's image

Introduction:
When seen from an environmental point of view, the dominance plastic has over our daily lives is frightening. Each time we use a plastic container we are adding to the plastic waste that dots the landscape. Moreover, you can forget about it getting absorbed in the soil. Plastic does not take kindly to decomposition. Plastic is manufacture from non-renewable sources like coal, natural gas and oil and due to this, organisms that do all the dirty work of decomposition find it difficult to break and assimilate the polymer molecules that make up regular plastic. Even the plastics that are thrown away does not always make it into the landfill, but rather is diverted by wind or improper handling. This renders traditional plastic non-degradable and a veritable threat to the environment. Because of this, some company tried to do more with less. This goes hand in hand with our environmental work - to use resources in an economical and careful way in advanced to reduce the usage of plastic.

Case Study 1: IKEA
Since its 1943 founding in Sweden, IKEA has offered home furnishings and accessories of good design and functional living solutions at prices so low that the majority of the people can afford them. Currently there are more than 250 IKEA stores in 34 countriesIKEA has been named to BusinessWeek's List of The Best Global Brands (August 7, 2006) and for four consecutive years, Working Mother magazine's annual list of the "100 Best Companies for Working Mothers." IKEA was list in March 2007, on Fast Company's Fast 50, for its environmentally responsible products, as well as five consecutive years. IKEA recently received the Foreign Policy Association Award for Global Corporate Social Responsibility.
Most of the furniture sold inside an IKEA store is made from recyclable, biodegradable and easily renewable wood sources that are harvested from non-environmentally sensitive areas. IKEA is launching 'Bag the Plastic Bag' environmental program initiative asks customers to stop plastic bag waste. IKEA is taking a stand by not offering customers free plastic bags anymore. Every plastic bag at every IKEA will cost five cents. Besides, IKEA is selling its reusable “Big Blue Bag” for 59cents. The blue bag, while also made from plastic, is durable, strong and roomy. This is because one sturdy reusable bag will replace hundreds of single-use bags. This program lets IKEA customers know that they stake in the ground and is committed to continuing to be an environmentally responsible company.
The plastic reduction program is another notable example of IKEA's ability to integrate their environmental and business strategies; engaging the customer to reduce pollution and litter while minimizing unnecessary materials. Plastic bags create litter, increase landfill, endanger wildlife and create ugly, unsafe clutter in our lives and in the environment. IKEA stands committed to stopping plastic bag waste.

Case Study 2: TESCO
Tesco is the largest U.K. supermarket chain. They have announced a new green programme. They will be building the “greenest store in the world”--a supermarket made from entirely recyclable materials. All carrier bags will be biodegradable by the autumn and shoppers will be able to return excess packaging to stores for recycling.
Besides, Tesco also offer shoppers a financial incentive to use fewer plastic carrier bags. All Tesco's carrier bags will also be degradable and a new thicker and bigger bag will be introduce so that shoppers need fewer of them and are more likely to re-use them. At Tesco the 1p-a-bag Club card credit will be offset by handing out fewer bags, which cost about 1p each. On the other hand, all shoppers who bring in their own holdalls or trolleys, or who re-use carrier bags from previous visits or rival stores, will qualify so long as they have a Tesco Club card. Tesco also selling its reusable for RM 1.00 and it can be replace after this bag is broken. Reducing the usage of plastic bag can help to save the environmental from global warming.

Case Study 3: Soul Pattinson Chemist
Soul Pattinson Chemist is one of the pharmacy group in Australia. Soul Pattinson chemist realized the impact plastic carry bag were having on our environment and been took an alternative. The company launched its Eco Bag in all stores in May 2004. The Eco Bag is a compact, fold-up reusable shopping bag that fits easily in the car glove box, handbag or pocket. Soul Pattinson wanted to do more than offer customers an alternative to plastic carry bags, they also wanted to encourage customers to think about the effect their actions were having on the world's eco-systems.
The company thinks that they should become increasingly environmentally conscious and have to give customers the option to show their concern for the environment. The Eco Bags are sold in-store for $2 each and are regularly used as an inexpensive 'value add' for promotions. The company has also profiled the Eco Bag on its annual calendar that distributed to 120,000 customers Australia-wide. Soul Pattinson Chemist produce the compact size of the bag and design it with stylish light olive green that will makes customers want to use the bag often. This may seen as a fantastic initiative because Soul Pattinson Chemist were helping reduce environmental damage from plastic bags while adding an income stream from bags sales and reducing the cost of buying plastic bags.

Case Study 4: Paddy Pallin Stores
Australia local outdoor, travel and adventure retailer, Paddy Pallin, said NO to plastic bags a few years ago. Well known for its environmental initiatives, the company set up
Its “Don’t Bag the Environmental” program in 1998. Each time a customer declines a bag at the checkout, Paddy Pallin donates 20 cents to an environmental organization or cause.
Every six months the company changes the organisation or cause which receives the funds raised. Clean Up Australia, Rural Fire Services, Kosciusko Huts Association, Birds Australia and the Australia Conservation are the past recipients of Paddy Pallin’s program.
Paddy Pallin aims to reduce the number of plastic bags going into environment, reduce the amount of packaging waste and conserve energy resources that would otherwise be use to make bags. Paddy Pallin thinks that if customer refuses a bag, they were helping the environment twice. When the customer reaches the checkout, every customer is asking if they need a bag. Staff will advise customers that if they say no, 20 cents will be donate to help preserve our environment and then point out who is the current recipient. Paddy Pallin also practicing transparent process, that is, the staff member then physically opens the till, takes out 20 cents and puts it into the collection box so that the customer have been know to add some of their own money for the cause. Besides, the program is widely promoted via Paddy Pallin's member magazine, posters in-store and signage behind the charity box. Paddy Pallin really enjoy being able to provide their customer with options, and the same time reduce any waste through excess packaging and unnecessary bags.

Case Study 5: Wal-Mart
Wal-Mart Stores, the world’s largest retailer, wants its 60,000 suppliers to find more efficient packaging methods and to reduce the amount of packaging used, starting in 2008, while making the remaining wrapping and shipping materials environmentally friendlier. The packaging-reduction program was announce at the recent Clinton Global Initiative, an annual brainstorming summit hosted by the former U.S. president in New York that is intended to produce plans to combat illness, poverty, religious and ethnic conflict and climate change. That is because, in addition to preventing millions of pounds of trash from reaching landfills, the initiative projected to save 667,000 metric tons of carbon dioxide from entering the atmosphere.
Wal-Mart is introducing a packaging scorecard to more than 2,000 private label suppliers that will push them toward the recycling of more materials, refining their production and distribution systems to create less trash, and the selection of packaging that creates minimal waste. This tool will allow Wal-Mart buyers to have all the information about packaging alternatives or more sustainable packaging materials in one place. Therefore, this allowed them to make better purchasing decisions. Wal-Mart Sustainable Packaging Value Network, a group of 200 leaders in the global packaging industry, will lead the project. This group includes representatives from government, nongovernmental organizations, academia and industry.

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