Introduction
Regardless of the type of business activity a firm is engaged in, or its size, it has an
environmental impact. To make the foregoing example clear, simply stated, if the
business activity did not exist it would have no environmental impact, thus no matter
how benign the activity there is an environmental price in the form of electricity, waste,
and other contributory factors.
Corporate sustainability represents an extended facet of corporate social responsibility
in that it includes the understanding of business practices and impacts, along with their
social as well as environmental aspects (Cowe and Porritt, 2002). In terms of a practical
and understandable framework that has a guideline, which is not either mandatory, or
universally utilised, the Triple Bottom Line represents a means via which to look at and
equate business engagement of a corporate sustainability (Colbert and Kurucz, 2007).
Another way to describe the Triple Bottom Line is to say it represents " - the place
where corporate and societal interests intersect" (Savitz and Weber, 2007). In terms of
applicability, the Triple Bottom Line looks at people, in terms of human capital, and the
manner in which they are utilised within a corporate structure, whereby the
considerations of labour, profit, wages, working conditions, fair treatment, and non
exploitation are the principle facets (Colbert and Kurucz, 2007).
Natural capital, as represented by planetary resources from the second part of the Triple
Bottom Line equation, takes into account environmental practices that are sustainable,
through the management of energy consumption along with non-renewables, reducing
business output waste from manufacturing and other actions, and reducing the toxicity
levels of toxic waste before disposal (Topfer, 2000). The last of the Triple Bottom Line
facets entails profit, which represents not just the bottom line accruing to the company,
but the economic benefit of the enterprise to the society in which it operates (Topfer,
2000). The preceding includes the economic impact on society (Topfer, 2000).
This examination shall look into the Corporate Sustainability of the BT Group (2008), a
communications company that maintains digital networks throughout Europe, serves
and consults on ICT networks for clients, has a telecom subsidiary in Italy, BT
Albacom, a voice and data network for corporate companies called BT Infonet, and
Radianz, a provider of connectivity to the financial sector. Formally known as British
Telecommunications Plc, the company maintains a network of telephone exchanges, a
trunk network, as well as other assets. The BT Group shall serve as the subject company
for the study of corporate sustainability, with an emphasis on its environmental factors,
for the areas a contained herein.
BT Group Sustainability Comprehensiveness
The company indicates in its report that it complies with the "Global Reporting
Initiative Sustainability Reporting Guidelines 2002, utilising the AA1000 Assurance
Standard for the telecommunications sector that calls for three specific principles to be
met (BT Group, 2007). The preceding represent 1. Materiality, meaning the report must
contain all data on sustainability performance to inform the public, 2. Completeness, as
represented by containing material aspects, 3. Responsiveness, which refers to the
company having responded to the concerns of stakeholders, and applicable policies
along with standards, and that these have been communicated adequately (BT Group,
2007). To ensure impartiality, BT's Sustainability Report was reviewed by Lloyd's
Register Quality Assurance Limited to certify the materiality, completeness and
responsiveness of the information and data compiled by the company (LRGA, 2008).
The preceding procedure indicates that the company utilises a comprehensive
environmental management system, in that it seeks certification from an independent
body. Lloyd's Register Quality Assurance Limited has signed off on the company's
adherence to the indicated three part principles, Materiality, Completeness, and
Responsiveness, stating that their recommendations entail the company continuing its
course of environmental data collection for operations outside of the UK, and introduce
" - a more formalised, monitored programme for environmental data verification audits
- " (BT Group, 2007). Internally, BT's Board meets to review the company's CSR
strategies and performance at least once per year, being kept informed of developments,
issues and other areas on a consistent basis (BT Group, 2007). The company has a
formal structure in place that includes a dedicated CSR Department, Operating
Committee, CSR Steering Group, Community Support Committee, Environmental
Policy Implementation Committee, Task Force operation to ensure compliance, and a
CSR Practitioners Forum (BT Group, 2007).
BT Group Management Strategy
The foregoing represents an overall management strategy to oversee internal
compliance and directives that represents a top down committed approach that takes in
environmental areas of operational and employee integrity, climate change, and supply
chain compliance (BT Group, 2007). The company is also a member of the Green
Alliance (2008), Forum for the Future (2008), Aldersgate Group (2008), which are all
environmental action organisations as well as CSR Europe (2008), the definitive
association for Corporate Social Responsibility compliance. In addition to the
foregoing, BT is a partner with the United Nations Global Compact (2008), the Global
Reporting Initiative (2008), the Global e-Sustainability Initiative (2008), and the Centre
for Economic and Environmental Development (2008). These associations,
memberships and alliances clearly indicate the committed nature of BT's approach to
corporate sustainability and the environment.
BT Policies
BT implements its policies through active engagement of the 5R Concept that entails
"Refuse, Return, Reduce, Reuse, and Recycle" (EarthResource.org, 2007). The
company actively engages in the concept of 'refuse', which means the avoidance of
buying and designing products and systems that generate unnecessary waste
(EarthResource.org, 2007). This is accomplished by the company's business
development processes that incorporate sustainability into product development and
design (BT Group, 2007). This facet, 'refuse', includes working with the University
College of London to explore the issue of obsolescence with regard to the products it
buys and designs, seeking ways in which to add longevity to the relatively short
usability life spans of telecommunications and IT equipment (BT Group, 2007).
'Return' represents re-routing the materials used for packaging for products received
back to their suppliers (EarthResource.org, 2007). BT's materials did not make
reference to this technique.
The company engages in the principle of 'reduce', which represents the reduction of
waste at the source, via the identification of services as well as products that have been
designed, and or conceived utilising sustainability foundations (BT Group, 2007). The
foregoing includes the selection of new technologies as well as approaches that
contribute to that end, along with more industry harmonisation, thus reducing waste in
interconnectivity with differing systems in different countries (BT Group, 2007). In all
of the preceding BT tracks and monitors its compliance with the effective performance
of reducing waste through management reviews designed to cut costs, and adherance to
sound environmental principles (BT Group, 2007).
BT handles the 4th concept of the 5Rs, 'Reuse', meaning reusing everything possible,
through shifting components that have and are being replaced in more technologically
advanced countries to lesser developed countries it operates in (BT Group, 2007). The
foregoing enables the company to cut component operational costs, while operating in
an environmentally responsible manner. The BT Group also consistently seeks ways in
which to reduce data processing and storage, and energy saving initiative, along with
new and more efficient working methods that include teleworking, along with global
sourcing (BT Group, 2007).
Recycling, the fifth "R", represents a weak point in the BT Groups environmental
programmes as the company recycled 34% of its waste material in 2004, but has
consistently improved its efforts, recording a 42% standing for 2006 and 2007
(Galbraith, 2007). The preceding record in this area takes on meaning when one
understands that the NTT Group of Japan (2008), a company also engaged in
telecommunications, achieved a recycle rate of in excess of 91% in 2006 (Galbraith,
2007). BT actively promotes the utilisation of the 5R concepts through the Global e-
Sustainability Initiative (2008), which is a voluntary association formed in 2001 that
promotes ways for telecommunications companies to improve their performance and
results in sustainability as well as through the use of new technologies that help to
achieve that end. The Global e-Sustainability Initiative (2008) works in conjunction
with the United Nations Environment Programme, and the International
Telecommunication Union that includes companies engaged in the telecom and ICT
sector, representing " - manufacturers, network operators, service providers, trade
associations, and associate organisations connected to the industry". The preceding
indicates BT's active position on the marketing of environmental sustainability factors
that also includes its supply chain relationships.
In keeping with the preceding, the company maintains an active voice as an advocate
for the utilisation of new technologies and approaches that reduce energy use, along
with governments harmonizing their standards as well as regulatory frameworks that
would reduce redundancies in equipment required to cross connect systems, this saving
on waste (BT Group, 2007). The preceding includes promoting ICT as a cost, and
energy saving measure that can be employed in economic development for information
transfer and business / governmental operations as an energy conservation method (BT
Group, 2007). BT sees the relevance of its operations as a means to further not only its
own business interests, but also those of energy conservation through the advanced
applications of ICT.
Conclusion
The preceding analysis of the BT Group with regard to its performance in conjunction
with Corporate Sustainability, emphasising its environmental track record, has
uncovered a company that is committed to the practice as being integrated part of its
operations. The preceding conclusion has been arrived at by the examination of points
as set forth herein that have shown the wide ranging industry associations and
organisations the company works with in this area. More importantly, the BT Group has
been rated by the Dow Jones Sustainability Index as the number one
telecommunications company in the world for six consecutive years (BT Group, 2007).
The BT Group has also been rated as one of four companies to score in excess of 95%
in the six areas of 1. Community Management, 2. Environmental Management, 3.
Marketplace Management, 4. Workplace Management, 5. Environmental Impact, and 6.
Social Impact by the "Community Corporate Responsibility, Environment and
Community index, which " - is an independent business-led charity based in the UK"
(BT Group, 2007).
Further evidence of the stellar record and approach to corporate sustainability is
provided by BT's number one rating by OEKOM Research AG (2008), a German
organization that reviews the performance of companies in sustainable development,
providing company rankings. The list of BT's achievements in being a good corporate
citizen is also evidenced by it being rated as "one of the Global 100 Most Sustainable
Corporations in the World" (2008), for three straight years. The preceding distinction
means that the company has been selected for its " - ability to manage strategic
opportunities in new environments and social markets" (BT Group, 2007).
The list goes on and on. BT has won or been awarded as Britain's Most Admired
Company in 2006 as well as being named " - as the world's leading corporate
organisation for sustainability reporting..." based upon the results of a survey conducted
by SustainAbility (2008). The foregoing study was conducted in conjunction with the
United Nations Environment Programme as well as Standard and Poor's (BT Group,
2007). As stated, BT throughout this examination has demonstrated a record of
corporate sustainability that almost seems to good to be true! With the exception of its
record in recycling, the company has seemingly no flaws in its approach to its
adherence to the principles of maintained and furthering its responsibility to limit its
environmental impact.
Given its committed approach, the company would be well served to shore up its
indicated shortcoming in recycling through the emulation of the achievement recorded
by NTT of Japan. Given the fact that the company has elected to utilise Lloyd's
Register Quality Assurance Limited to certify the completeness and accuracy of its
corporate sustainability and environmental programmes, BT has and is demonstrating
its understanding of the meaning of being a good corporate citizen, in almost all
regards.
