The Revolution of the Rubber Recycling Business
What is the primary CSR issue that the protagonist is trying to solve
The main issue that the initiation of the Green rubber is trying to resolve is the issue of environmental degradation. This is due to the fact that today, many rubber products are in use in almost many fields of work and even households. These rubber wastes could present themselves in the form of latex gloves, condoms or even vehicle tires. The disposal of this rubber waste has been a cause of many environmental and social problems, which a private owned Conglomerate Company in Malaysia, Petra Group has decided to address by the use of high tech solutions. This is by extension a form of corporate social responsibility that the firm is aiming at achieving through the solving of these social and economic issues1. This is a good idea by the company, considering that the world is currently being faced by the risk of global warming due to the irresponsible nature of industries and companies today.
What UN Global Principle(s) isare involved in the case
The United Nations Global Principle which is involved in the case study of green rubber revolution in Malaysia is in the area of environment. The 7th principle under the environment states that business should be taking an approach that is precautions to the environment, and Petra Group is doing that through the recycling of rubber which could have otherwise been a source of pollution. Also the 8th principle states that companies should undertake initiatives that are aimed at promoting greater responsibility in regards to the environment. This is also another aim for the Petra Group, and thus they are involved in ensuring that their activities are aimed at greater environmental responsibility. Finally, principle 9 of the United Nations Global Principles states that companies should encourage technologies that are environment friendly, and the Petra Group has done just that through the introduction of rubber recycling1.
What caused the issue in the first instance
The whole issue of rubber recycling came up in the first place due to the projections that the demand for rubber would surpass its supply by the year 2017, owing to the fast rate of economic and industrial development that countries such as India and China were undergoing. More so, the level of pollution that the disposed rubber was producing was a cause of major concern and thus the need to come up with a means of disposing off of the excessive pollution risk.
What was the effectimpact on the company
The company subsequently received funding owing to the steps that they had taken in ensuring that they carried out their business activities, while at the same time, carried out their social and environmental responsibilities. The issue also gave the company a business opportunity which they could take up and use to make profits while at the same time take care of the social and environmental obligations.
How did the company initially react to this
Initially, the company took up the opportunity to produce recycled rubber owing to this opportunity, but then the cost of producing recycled rubber was more expensive that that of virgin rubber.
What is managements objective in addressing the issue
The main objective of the management in addressing the issue of corporate social responsibility is to ensure that environmental issues are addressed in regards to pollution caused by the disposal of rubber and also to ensure that the demand for rubber is met.
Is it a moral, rational or economic issue
This decision by the company is an economic issue due to the fact that it is a profit making business, a moral issue since they are addressing the concerns of the environment and a rational issue since it does not make sense to have demand that surpasses supply when that can be corrected by recycling1.
In which part of the CSR hierarchy does it fall
This decision falls in the marketing hierarchy of the corporate social responsibility hierarchy considering that they are trying to ensure that their products are marketed.
What relevant information (facts, data) is available from the information provided in the case study
The demand and supply for rubber in the world is available in the case study, which is important in showing the importance of recycling of this commodity. This data shows that the developed nations have a higher demand for rubber and thus the supply to them is equally high.
What is unknown, but might still have been needed for the protagonist to make a good decision
The challenges that GRG could face in its quest to ensure that it becomes a global leader in the green industry is unknown. Also the possibility of GRG pursuing development that is legitimate and sustainable is also unknown.
II. Plan Identify Possible Alternatives to Resolving (or trying to resolve) the issue
Who are the specific stakeholders involved
The Malaysian rubber board which did most of the funding of the research through the Tun Abdul Razak Research Centre and the Rubber Research Institute of Malaysia. The customers are also part of the stakeholders and they range from large companies such as tire companies and other consumer product companies to even the lower consumers who include individuals. Suppliers are also stakeholders in the rubber recycling business us they supply the company with the required inputs to ensure that the work carried out is a success. Competitors who are also a major stakeholder in the rubber manufacturing business also play a major role in this business. Such competitors may include other rubber producers who use the conventional methods of manufacturing rubber which include the use of raw materials such as chemicals and rubber extracts.
What are their respective motivations and goals
Environmental issues are a major issue and a priority in the agenda of politics in most regions of the world and thus it was the responsibility of the these stakeholders to aid the rubber industry in the research of ways to modernize the process of rubber manufacturing within the country, while ensuring that technologies which are environmentally friendly are used2.
How would you rank their priority (low, neutral, high) in this situation
Their priority is high, considering that the Malaysian rubber industry is the 4th biggest with regards to production and 5th largest in consumption4.
Does this priority change within the timescale of the case
This priority does not change especially since the projected demand for rubber is expected to rise within the next few years owing to economic and industrial growth in Asian countries.
How might you align their goals with those of the company
The goals of the company is to ensure that they produce rubber to feed the demand that is in the global market, while at the same time ensuring that the environments integrity is not compromised.
What are some alternative solutions that might resolve the issue either more speedily or more effectively
An alternative solution to the problem is the use of rubber as a fuel, by recycling the rubber into fuels that could be used in incinerations or burners. This is due to the fact that the initial products that make some of the rubber products contain petroleum.
This use of rubber waste as fuels is a less effective means of disposing of the rubber waste, with regards to the environment. This is because when they are used as fuels, they tend to pollute the environment even more. In regards to the speed at which they are recycled in to fuels, the method is faster since some of the process that are involved of recycling old rubber into new are skipped.
What are the pros and cons of any such alternative solutions
The advantage of the conversion of the rubber into fuels is that it could serve to mitigate the effects that the fuel crisis has had on the economy, by cutting down on fuels costs3. However, the disadvantage is that the main goal of corporate social responsibility is not achieved, since the whole process will instead pollute the environment instead of preserve it.
III. Recommend Make Decision and Implement
If, after considering possible alternatives to resolving (or trying to resolve) the issue you decide that the way in which the protagonist originally handled the issue was the best way, please explain exactly why you come to this conclusion.
The manner, in which the case study talks about the green rubber revolution, evidently shows that this is possibly the best solution to the environmental problems that the disposal of rubber could pose. This is due to the fact that the recycling of rubber is cost effective to the government in terms of revenue that it collects from the industry and the environmental benefits that are present as opposed to fuel production from rubber. The green rubber revolution is also a better alternative since it addresses the issue of demand versus supply for the rubber industry in the near future, and is also aimed at ensuring that its social responsibility is maintained.
But if you have identified an alternative solution that you would have recommended at the time, how would you have gone about implementing it and who would you have engaged with
If the implementation of the fuel production from rubber is to be implemented, then strict measures will have to be taken, such as the issue of the disposal of the wastes from the company, to reduce the effects of pollution it is guaranteed to have. Also to be involved are the ministries within government concerned with energy, for proper funding and also the petroleum research institutes, to aid with further research that can aid in ensuring that technologies are devised to ensure that the fuel is developed in a much more environmentally friendly manner.
IV. Evaluate Determine What Success Looks Like
Either way, what criteria (and why) would you have put into place to track and evaluate the effectiveness of your recommendation
The criteria that would have been used to track the effectiveness of the rubber conversion into fuel would have been the United Nations Global Principle. This is because these principles if followed will enable donors and other research institutions to be able to grant this research with funds, thus improving its efficiency. Also the amount of backing that the project would receive from the government would be an effective way of gauging its success.
In other words, what would success look like
Success would mean that an alternative fuel would be produced from waste tires and other rubber products, which would essentially mean that the energy crisis would be resolved. It is important to note though that full success can only be achieved if this is done by ensuring that the environmental and social responsibilities are not compromised, while at the same time cheap and reliable alternative fuel is produced while disposing off of waste rubber.
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