Wednesday 1 October 2014

Blog 13 – Unsustainable firms

1) Find a company that create an unsustainable profit, saying why it is unsustainable (e.g. because of the environment or society)

39 comments:

  1. A brutal example is given by Nestle. It all started in the 70´s when Nestle got third world mothers hooked up with the milk powder formula produced by the company. They convinced the people that their product was indispensable, but it wasn´t. The priced paid was high: Nestle made huge profit while the babies were dying. These poor people where not able to use this product (Western style milk was not effective) and they were not able to use it in a proper way. Beside this, many mothers ( discouraged to give breast feeding to their babies) were shortly after not more able to produce their own natural milk and became so 100% dependent from the Nestle milk powder. Nestle indirectly killed many babies for many years and I think we can call that, by using an euphemism, “unsustainable” for the society and not only (it hit nestle profits too).

    http://www.theguardian.com/sustainable-business/nestle-baby-milk-scandal-food-industry-standards

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  2. I find a list of many companies that have a negative impact on the global environment, community, society or economy. These multinational corporations neglect the social and the environment aspects of sustainability; most for what concern the employees' wages and rights. This is the italian website that published this list: http://www.mediterre.net/brindisisocialforum/multinazionali_più_cattive.htm

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  3. In my opinion, one of the biggest scandals, that was and that is still understimated, concerns the world biggest fast food company: McDonald's.
    Let's focus on the scandal about McDonald's meat; we can say that if you are hungry and somehow wander into a McDonald's, you won't have a large selection to choose from. For years, however, people could enjoy sandwiches, convinced by many kind of advertisements, that they were cooked in wholesome ways.
    But healthy companies and secret reporters discovered, in their supplier companies, the use of contaminated meat; in fact they captured on fotages workers using expired meat products. These companies supply meat products also to other various fast foods chains, like Starbucks,Burger King and many others.
    McDonald's products could be for many points of view cheap and good-tasting, so it always appeals so many clients that it wouldn't be possible ensuring them the quality of products; that's why they aim at their quantity, damaging, this way, people health.

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  4. A typical example of a company that create an unsustainable profit is British American Tobacco. The company created a supply chains together with Philip Morris in the 1990's. Their main aim was to control access to the markets, improve production efficiency and of coarse profits. This company may be making billions of dollars out of sales of tobacco products but continue to buy leaf produced with child labor and high rates of deforestation. This company benefits from cost savings due to the use of child labor in developing countries and do not include the benefits to the company of many other social and environmental costs that they avoid.

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  5. An example of social unsustainability is given by the fast food chain Burger King. In fact, in Great Britain, it has been in the spotlight because it stipulated the so called "zero-hours" contracts: that is to say, employees weren't paid if the store was empty and there was no customer to serve.

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  6. Probably Nike gives us an good example of unsustainable business. Ten years ago it was accused to exploit of child labour in his factories in Pakistan. Exploitation of child labour is surely not a fair way to do business. This way to do business bump against the modern theories to do a fair business, creating value for all the stakeholders. Nowadays a company has to interface with an always more demanding customer, so this unfair behavior is going to harm the community close to the Nike's factories but moreover Nike itself because of public opinion that turn his disdain in a lowest profit for Nike Corp.

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  7. I believe shell compay as well it is unsustainable because of the damages it can create to the environment,pollution

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  8. There are many multinational pharmaceutical companies with unsustainable profit that exploit animals in experiments.

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  9. Herbalife is a nutrional supplement company that pushes for the health benefits of its product. Unlike its competitors, instead of selling products via retail outlets, Herbalife is sold by individual salespeople who operate on commission. Herbalife salespeople can also earn commission on other salespeople that they recruit and its growth has been amazing. But according some investors, this growth masks an unsustainable business. In fact, the majority of these revenues aren’t earned via legal product sales, but rather by salespeople recruiting other salespeople and getting them to buy product upfront. Finally, in this way, according to the investors, the market gets satured and the growth collapses.

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  10. One of the most famous American pharmaceutical company that, for my personal opinion, make an unsustainable profit is Jhonson & Jhonson. Everybody knows J&J business is basically divided in three major segments, pharmaceutical, medical devices and diagnostics, and consumer products. Following American newspapers, media and opinionist we can find lot of very good review about the products provided by the company, but that's not what everyone should know.
    Infact the company has been suspended in India, after a long process, because some inquisitors found in 15 batches of baby powder an excessive amount of Ethylene Oxide. Ethylene Oxide is a chemical material that if is kept at room temperature can be carcinogenic, irritating and mutagenic, it can also demage the cardiovascular system.
    Indian's FDA ( Food and Drug Administration ) interrupted J&J license in their country but all the rest of local FDA did not make any inspections regarding it.
    A huge and famous company as J&J should check always the amount of carcinogenic material present in their product specially directed to kids that could not manifest symptoms straight after but in awhile. In addition to it producing and earning in this way emerge as unsustainable profit-thinking.

    http://www.healthsachoice.com/childrens-health/johnson-johnson-got-the-liscense-suspended-in-india-for-cancer-causing-ingredients/

    http://au.ibtimes.com/articles/463154/20130501/cosmetic-brand-johnson-license-cancer-causing-baby.htm#.VC6gwPl_v0c

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  11. Palm oil is a component or an important raw material of many soaps, washing powders and products for personal care and it is also used in to cook many food.
    The use of palm oil in food products has attracted the concern of environmental activist groups; the high oil yield of the trees has encouraged wider cultivation, leading to the clearing of forests in parts of Indonesia in order to make space for oil-palm monoculture. This has resulted in significant acreage losses of the natural habitat of the orangutan, of which both species are endangered; one species in particular, the Sumatran orangutan, has been listed as "critically endangered".

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  12. Today a company which produces unsustainable profit is Walmart that ranks as one of the biggest and fastest growing climate polluters in the USA.
    Since the last CEO' s speech (Lee Scott ) about how in 2015 the company would transform itself into a leader on environmental
    sustainability, by issuing announcements about its efforts to improve energy efficiency, reduce waste, and expand renewable power, recent examinations of Walmart's operations reveal a different image of the company.

    Walmart's greenhouse gas emissions have grown and are continuing to rise, including those generated by its international shipping operations and its land development practices; its progress is hampered by an unwillingness to accept a very modest reduction in profits for more investment in solar and wind systems and , moreover, the company is a major contributor to the campaigns of politicians who oppose action on the climate crisis, helping to ensure that the U.S. doesn't take the steps necessary to avert the worst impacts of global warming.
    So unlike Leo Scott's promises about the company's future image, if nowadays Walmart were included in the Greenhouse 100 Polluters Index, it would take the 33rd spot.

    http://www.ilsr.org/wp-content/uploads/2013/10/ILSR-_Report_WalmartClimateChange.pdf

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  13. According to me, an example of unsustainable company are many of good italian brands like Gucci , Prada , Armani , Hogan etc.
    Because to make a profit they exploit child labour to reduce costs of manpower, and also the exploitation and killing of animals to produce leather wares.

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  14. Palm oil is a type of edible vegetable oil that is derived from the palm fruit, grown on the African oil palm tree. Oil palms are originally from Western Africa, but can flourish wherever heat and rainfall are abundant. Today, palm oil is grown throughout Africa, Asia, North America, and South America, with 85% of all palm oil globally produced and exported from Indonesia and Malaysia; but most of the time not using sustainable measures.
    The industry is linked to major issues such as deforestation, habitat degradation, climate change, animal cruelty and indigenous rights abuses in the countries where it is produced, as the land and forests must be cleared for the development of the oil palm plantations. It is an entire unsustainable industry .

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  15. A good example of an unsustainable company is Gazprom.The reason why it is unsustainable is because western European Countries sanctioned Russia for the intervention in Ukraine. Russia owns 50 % of shares of Gazprom and for this reason this company is unsustainable.Losing profit that could have been generated in these countries.

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  16. Problems caused by ILVA are uncountable. The environment was hurt in a cruel way, by all the garbages of the industry. People health was damaged by garbages. Tumors hit also the workers that didn't have a real payment. So ILVA caused many problems:
    1)People and Workers ' health problems
    2)Environmental problems
    3) Financial problems.

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  17. All the firms linked to the sell of electronic cigarettes. Especially in italy the last years there was a huge sale of electronic cigarettes, this new trend in a crisis period with a lack of innovative ideas to create new jobs , brought lots of peolpe to invest in electronic cigarettes marketing , but the abundance of these new stores has only created a lot of competitors, bringing this marketing to the failure. An other problem that brought this marketing to the failure was that there was an overpdoduction crisis of these items and the rivality with the gouvernment because of the damage of the monopoly linked to tobacco's firms.

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  18. In 11/12/1997 180 nations subscribed the Kyoto protocol that was an instrument used to reduce the carbon dioxide emissions from the heavy industry of the world. The USA didn't subscribe this protocol even if they produce the 36.2% of the WORLD carbon dioxide emissions. Infact in the USA there are a lot of unsustainable industries like, for example the marathon petroleum detroit located in the S-E of the city that can produce around 123 000 oil barrels daily that caused a lot of cases of lung cancer to the citizen near to the industry. So the marathon petroleum detroit is dangerous both for natural environment and for the society.

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  19. A company which makes unsustainable profit is McDonald, from every point of view:
    Let's see at the ethical aspect:
    It's well known that an healty feeding is the basis of people's wellness and McDonald's advertises and promotes a kind of nutrition completely wrong, taking advantage of bad eating habits, to derive profit.
    Scandals about McDonald's food are easy to find on the web: spoiled meat and expired fries are just two examples.
    The environmental aspect:
    Most soy feedingstuffs used to maximize the fattening of chickens are grown in the Amazon rainforest mcdonald, so McDonald contributes to deforestation. In addition eating meat that comes from factory farms pollutes as a car would do.
    Social aspect:
    McDonald's has also been accused of child exploitation in China.
    Children would, in fact, build gadgets for their wealthier peers. Not only, McDonald's was also blamed to underpay its employees, who were working, moreover, in unsuitable conditions.

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  20. A firm that make a socially untenable profit is the Walt Disney that in its headquarters in Haiti exploits child labor, pay starvation wages, forcing workers to schedules and working conditions humanly unacceptable .

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  21. For many years people around the world have associated Disney with innocence and imagination. However behind this enormous company there are thousands of young workers about more or less fifteen years old. In fact in Haiti Walt Disney owns one of the largest clothing industries where underpaid workers are obliged to work for 10/12 hours a day. You cannot go to the bathroom more than twice a day, it is estimated that in order to gain the amount of money that the CEO earns in one hour, an Haitian worker should work 101 years 10 hours a day every day. Meanwhile in the USA began a campaign against Disney organized by the National Labor Committee whose objective is to protect the rights of the population of the southern hemisphere. The Disney was accused of a similar story in Burma where the working conditions were even worse than in Haiti. To publicly denounce the conditions of the workers due to the irresponsible behavior was the director of the NCL Charles Kernaghan.

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  22. An italian unsustainable azienda or the society is Monte dei Paschi di Siena, that, thanks to the corruption, hided for many years a debt of 20 billion of euros, tha were discovered only in 2012, after the big crysis of 2008 and the distrust of the rating companies. The MOnte Paschi case was a big blow for the italian economy, and also the governement was forced to help the bank avoiding the failure

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  23. Emiliano Laurenzi10 October 2014 at 18:22

    Philip Morris is the largest tobacco industry in the world. It is estimated that only Marlboro kill more than 75 thousand Americans a year. In addition, it is famous for being one of the largest financing of political battles to take on the abolition of restrictions and smoking bans, funded scientists because they did studies which showed that passive smoking was not harmful, has forced the state at the incredible expense for the care of sick smoke.

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  24. The Mitsubishi Trading Company is one of the most famous Japanese companies of timber in the world, obtained by the destruction of entire forests. They have different areas of exploitation of forests in Canada, Brazil and the Philippines, Malaysia. These operations are proceeding without interruption 24 hours a day, leading to progressive destruction of forests. This company causes damage not only to environmental but also leads to the extinction of entire cultures of indigenous people, it is true cultural genocide. Deforestation spread diseases such as malaria and tuberculosis among the population. Due to this situation, many of these are forced to emigrate in cities. Also the flora and fauna are affected by this situation.

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  25. In my opinion there are many unsustainable companies in this world. KFC is one of them . In order to make profit they use very low qualities food ingredients to reduce raw materials cost. Besides they employ child labour for reducing manpower cost.

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  26. Well, there are lots of unsustainable firms, they are probably the majority in the whole world of business. That's why sometimes 'profit' is considered a bad word. By the way, an unsustainable firm I would like to bring up is the IBM company. A part of my high school thesis is on it. Doing researches on IBM, I realized that it has been operating in an unsustainable way, particularly during the 40s. This company doesn't take into consideration the well-being of the community but just operates for the profit. For example, in 40s it had been using human capital as slaves, in inhuman conditional.
    They are economists and experts that are still checking out its movements in order to stop it using people for its own interest. In 2001 IBM was reported to the legal authorities by E. Black bringing up all the proof that the company in consideration had been operating badly for the society.

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  27. In my opinion BP makes unsustainable profit because it damages environment as well as society. In On the evening of 20 April 2010, a gas release and subsequent explosion occurred on the Deepwater Horizon oil rig working on the Macondo exploration well for BP in the Gulf of Mexico.

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  28. In my opinion Primark make an unsustainable profit. Primark have been linked with child labour in africa, asia and the middle east. Child labour is the use of young children for as little money as humanly possible with terrible working conditions and extremely long hours, those unthinkable of that in the UK. They have been told to change the ways they produce their clothing but people have still discovered they still use children.
    Many huge corporations have been linked with Child Labour for example a few years ago nike were discover to be using children in asia to make their trainers costing only $12 to make and then being sold at over $60 to me this is an unsustainable profit.

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  29. We can assume that all oil and gas companies would score unsustainably due to the nature of their products, one of the primary caveats is that only direct emissions and emissions from the purchase of electricity, heat or steam (known as Scope 1 and 2) were analyzed for this study, not indirect emissions from the supply chain and product use. This puts the likes of Chevron, BP and Halliburton above burgeoning sustainability darlings Marks & Spencer and IBM, though only two out of five oil and gas companies analyzed were rate sustainably.

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  30. I think oil producers are the biggest example. Their primary products are depleting and there are a lot of controversy regarding their environmental pollution issues which lead to people coming up with substitutes such as cars powered by electricity. Since there are too many reasons as to why oil producers such as Shell should be going out of business, it seems like these big corporations are trying to maximize their profits before their time runs out.

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  31. There're many companies that create unsustainable profit such as Hogan. In order to reduce costs, they exploit children labour because in this way the greatly reduce the costs of manpower.

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  32. many companies create unsustainable profits. One of them is Nike that is charged with children mistreatment. the data we know are shocking: thousands and thousands of children in Indonesia work for meager wages and in places in which the temperature is equal to 40 degrees. while children are dying, big firms are getting richer.

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  33. Bank is also a company that create unsustainable profit. They make high profit , they have the top position in worldwide . But all of these profit are coming from the interest on loan. But if the firms take the loan more and more and its profits less and less . The money in the bank will be less than before and it will be deficit.

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  34. An example of an unsustainable company is Schwarzkopf because they test their products on animals before selling the mto customers.

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  35. there is a very important case in danger for children's healthy.they take some poison in the milk powder.and the children drink these poison milk and the get gallstones.it is a very unbelievable case.
    http://news.163.com/special/00012Q9L/sanjuqingan.html

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  36. Diana Cerquetani25 October 2014 at 17:30

    An example can be Nike where most of the stuffs that it sell are produced in asian countries and are made by underpaid workers that performance their job in unsafe structures. This company is absolutely unsustainable for what regards its employees, for instance until 1998 the workers were also children and this behavior can be called Exploitation of people that are prepared to work in a dangerous way.

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  37. I think that dove is a company that makes unsustainable profit and that is because it is damaging the environment by polluting the Amazonian forests and cutting tree that they were not meant to be cut.

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  38. I read in newspaper that ATAC that offer the pubblic transportation in Rome. They have losses, and moreover old busses that pollute the environment. They exist because they have to offer a publis service, the transpostration of citizens, and the losses are paid by the government.

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  39. The company "New animal productions" creates an unsustainable profit. Because the firm depend on natural materials (animal). While increasing the speed of production, the intensive confinement production system creates a number of problems. These include contributing to the increase in the pool of antibiotic-resistant bacteria because of the overuse of antibiotics; air quality problems; the contamination of rivers, streams, and coastal waters with concentrated animal waste; animal welfare problems, mainly as a result of the extremely close quarters in which the animals are housed; and significant shifts in the social structure and economy of many farming regions throughout the country

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