MMGT6012 Group Assignment Outline – 1 Group Assignment (25%) ASSIGNMENT DUE: 26th Mar @ 11.59PM Sustaining Performance End-Consumer Attitudes Towards Corporate Sustainability Unit of Study Coordinator: Prof. Matthew Beck Rm 444, Level 4 Merewether Building (H04) [email protected] MMGT6012 Group Assignment Outline – 2 The Scenario Corporate sustainability can be viewed as a new and evolving corporate management paradigm. Whilst this general management philosophy has existed for a while, it is recently gaining more traction as larger consumer brands, many in the financial sector, and banks are seriously considering the ways in which their business model impacts upon the (E)environment and (S)ociety, and the role that (G)overnance structures play in that impact (ESG). Indeed, within the broad context of sustainability a sharper focus on ESG may be taking place as investing firms, in particular superannuation funds, increasingly apply these non-financial factors as part of their analysis and decision-making process. For example, Blackrock (the world’s largest asset manager) made their position explicit in 2021 when the CEO stated that “there is no company whose business model won’t be profoundly affected by the transition to a net zero economy…companies not quickly preparing themselves will see their businesses and valuations suffer.” Some estimates indicate that global sustainable investment now tops $30 trillion (up 68 percent since 2014). The acceleration has been driven by heightened social, governmental, and consumer attention on the broader impact of corporations, as well as by the investors and executives who realize that a strong ESG proposition can safeguard a company’s long-term success. From this performance orientated view point, pursuing ESG can be a value creating process for business: • Helps create new market opportunities for growth due to better trust and confidence from governing authorities and thus better access and approvals to new markets. • Can also reduce costs substantially by helping to offset rising operating expenses (such as raw- material costs and the true cost of water or carbon). • A stronger external-value proposition can enable companies to achieve greater strategic freedom, easing regulatory pressure. • Improve employee attraction and retention by instilling a sense of purpose, and increase productivity overall, which in turn is linked to better shareholder returns. • Enhance investment returns by allocating capital to more promising and more sustainable opportunities (for example, renewables, waste reduction) and by avoiding stranded investments that may not pay off because of longer-term environmental issues (such as massive write-downs in the value of oil tankers). For many younger people, ESG goals could also include better worker rights within the growing gig economy, where on-demand labour platforms thought to offer new job opportunities for workers and convenient, more affordable services for consumers instead often leads to the creation of many low- quality jobs. Given rising income inequality and an increasing share of temporary and contract workers in developed markets, companies relying on a gig workforce face substantial regulatory risk. There is growing evidence that consumers also want businesses to be good corporate world citizens. Studies have shown that consumers are willing to spend more on products from socially and environmentally responsible brands and are prepared to pay more to switch away from brands that have sustainability and social responsibility concerns. During the pandemic, PwC found that while what consumers claim to care about and how they behave do not always match perfectly, 83% of consumers think companies should be actively shaping ESG best practices and 86% of employees prefer to support or work for companies that care about the same issues they do. Generally, research has found that consumers are generally uniformed about ESG, despite being overwhelmingly supportive of the general aims of sustainability efforts. MMGT6012 Group Assignment Outline – 3 The Question The growing attention on ESG, the role that it may play in business outcomes, and in particular what insight the consumer perspective may provide is a timely topic for investigation. Many businesses are interested in understanding exactly what consumers may think about environment, social and governance decision making, and how the behaviours of consumers themselves may have shifted over time. You are working on a team at a world-leading consultancy, who is looking to prepare a report on consumer attitudes towards ESG for their corporate clients. The purpose of the report is to summarise what consumers think about the sustainability goals of business, how important they are and what might determine the overall opinion that consumers have towards environmental, social and governance objectives. While a better understanding of consumer attitudes is immensely valuable for clients, of particular interest is gaining insight into how the perspectives of consumers may be translated into the business strategy of the large consumer brands who are clients of the consultancy in which you work. Project Deliverables 1. The report should follow the typical conventions of professional report writing in terms of content, writing style and presentation. It should be no more than 10 pages long (-5 marks for every page over 10 not including cover page, table of contents, appendices, etc.). 2. All material not directly discussed in the main report can be included in a series of appendices; there is no page limit for this appendix. Note that the appendix does not count towards the page limit, but please only include relevant material in the appendices. 3. The cover pages should have a group name on it (whatever you want to call yourself), and the names and SID of every group member (-5 marks for every SID and/or name missing). 4. The report should attempt to have at least one example of each of the statistical concepts discussed in class, up to and including regression modelling. Not that this a lower limit only; more testing is allowed, particularly if it contributes in a meaningful way to the narrative of your research. 5. Every group is required to act as part of a professional team and keep the minutes of every meeting. The minutes should note the topics which are discussed, any tasks assigned to group members during the meeting, record the successful or unsuccessful completion of tasks or action items recorded at previous meetings, and make note of any internal problems that might arise within the group (-30 marks for missing or incomplete minutes). 6. You do not have to use every question in the survey. I acknowledge that space is limited, and time is short. As such, your group need only analyse what your team believes is sufficient to construct the narrative that you believe is important and should be justified with evidence-based reasoning. You will not lose marks if you do not use all questions, it all depends on the strength of your narrative and the exactness of your analysis. MMGT6012 Group Assignment Outline – 4 Survey Questions Question 01 (Q01) Led in part by the United Nations Sustainable Development Goals, businesses are increasingly focusing on laying out a pathway where they can contribute to the ending of poverty, fight inequality and injustice, and protect our planet. Sustainability in business generally addresses two main categories: • The effect business has on the environment. • The effect business has on society. The goal of a sustainable business strategy is to make a positive impact on at least one of those areas. This short survey investigates the broad attitudes that consumers have with respect to sustainability and business. Data is being collected for the purposes of a group assignment in a university data analytics unit. It should only take about 5-10 minutes of your time: • No financial data is being collected. • No sensitive data is being collected. • There is no commercial purpose for this data. • Responses are completely anonymous. • You can leave the survey at any point in time. Thank you for your participation! Question 02 (Q02) How would you rate your knowledge of corporate sustainability (how it relates to business strategy, the purpose of ESG, the role it plays in investment decisions etc) • Prior to this survey I didn't even know it existed (1) • I was aware of this area before but didn't think too much about it (2) • I have a good understanding of these concepts and how they inform decision making (3) • I would say that I am an expert in this area of knowledge (4) Question 03 (Q03) Many companies claim to use a triple bottom line (economic, social, environmental) approach to measure outputs, benchmark, set goals, improve, and eventually evolve toward more sustainable systems and models. Imagine a large global brand selling consumer goods. What brand are you imagining? Question 04 (Q04) Thinking about that brand, divide 100 points between each of the three parts of the triple bottom line, to show how much effort you think the company SHOULD place on each part: • Q04_01 - Environmental / Planet (out of 100) • Q04_02 - Social / People (out of 100) • Q04_03 - Economic / Profit (out of 100) MMGT6012 Group Assignment Outline – 5 Question 05 (Q05) Imagine a large global brand selling consumer goods. Divide 100 points between each of the three parts of the triple bottom line, to show how much effort you think the company ACTUALLY DOES place on each part: • Q05_01 - Environmental / Planet (out of 100) • Q05_02 - Social / People (out of 100) • Q05_03 - Economic / Profit (out of 100) Question 06 (Q06) Do you think the focus between environment, social and economic should change depending on what the business produces? • Yes, it will vary based on what types of products are made • No, it should be constant regardless of what the company produces Question 07 (Q07) Have you ever stopped using a brand/product due to concerns about their social and/or environmental impact? • Yes • No Question 08 (Q08) Do you use more expensive brands/products because they have better social and/or environmental impacts? • Yes (1) • No (2) • Unsure (3) Question 09 (Q09) Overall, in your honest assessment of your own behaviour, how important is sustainability when you make decisions about the goods or services you purchase? • Not at all important (0) to • Extremely important (10) Question 10 (Q10) Overall, how important do you think it is that businesses pursue sustainability objectives? • Not at all important (0) to • Extremely important (10) MMGT6012 Group Assignment Outline – 6 Question 11 (Q11) How often do you engage in the following behaviours? • This is not something I often think about (1) • I try but often forget (2) • I do this as often as possible (3) Q11_01 - Bring shopping bags to stores Q11_02 - Recycle packaging Q11_03 - Conserve energy (either using less electricity or driving less) Q11_04 - Follow plant-based diet / eat less meat Q11_05 - Take shorter showers Q11_06 - Recommend eco-friendly products to friend and family Q11_07 - When voting in elections I pay attention to policies on sustainability Question 12 (Q12) When shopping for products, how important are the following factors in influencing your decisions? • Not at all important (1) • Slightly important (2) • Moderately important (3) • Very important (4) • Extremely important (5) Q12_01 - Is made from renewable resources Q12_02 - Uses minimal or recyclable/compostable/biodegradable packaging Q12_03 - Is carbon neutral Q12_04 - Supports biodiversity Q12_05 - Is durable and will last a long time Q12_06 - Can be easily repaired/fixed Q12_07 - Is made in a socially responsible way (e.g. promotes human rights, fair labour practices etc.) Q12_08 - There is a wide range of available products Q12_09 - The product is available to me immediately Q12_10 - The product does exactly what I need it to do Q12_11 - The product is of a high quality no matter what Q12_12 - I can get it for the best possible price MMGT6012 Group Assignment Outline – 7 Question 13 (Q13) How much do you agree or disagree with the following statements? • Strongly disagree (1) • Somewhat disagree (2) • Neither agree nor disagree (3) • Somewhat agree (4) • Strongly agree (5) Q13_01 - We are approaching the limit of the number of people the earth can support. Q13_02 - Humans have the right to modify the natural environment to suit their needs. Q13_03 - When humans interfere with nature it often produces disastrous consequences. Q13_04 - Human ingenuity will insure that we do NOT make the earth unliveable. Q13_05 - Humans are severely abusing the environment. Q13_06 - The earth has plenty of natural resources if we just learn how to develop them. Q13_07 - Plants and animals have as much right as humans to exist. Q13_08 - The balance of nature is strong enough to cope with the impact of modern industrial nations. Q13_09 - Despite our special abilities humans are still subject to the laws of nature. Q13_10 - The so-called "ecological crisis" facing humankind has been greatly exaggerated. Q13_11 - The earth is like a spaceship with very limited room and resources. Q13_12 - Humans were meant to rule over the rest of nature. Q13_13 - The balance of nature is very delicate and easily upset. Q13_14 - Humans will eventually learn enough about how nature works to be able to control it. Q13_15 - If things continue on their present course, we will soon experience a major ecological catastrophe. Question 14 (Q14) Who do you think plays the most important role in ensuring sustainable business outcomes? • Consumers (1) • Businesses (2) • Governments (3) Question 15 (Q15) Which of the following best describes you? • I am working (1) • I am a student but do not work (2) • I am a student but also work (full or part time) (3) • I am not working / retired (4) MMGT6012 Group Assignment Outline – 8 Question 16 (Q16) What is your age (in years)? Question 17 (Q17) What is your gender? • Male (1) • Female (2) • Non-binary / third gender (3) • Prefer not to say (4) Question 18 (Q18) Where are you from? • Resident/Citizen of Australia • Overseas (please type the country) Question 19 (Q19) How do you think the income of your household/family compares to the others in the city/suburb/town where you live (or lived if you are visiting Australia for a short period)? • Below average income compared to those who live in the same city (1) • Average income compared to those who live in the same city (2) • Above average income compared to those who live in the same city (3) Question 20 (Q20) What three words would you use to describe climate change? Q17_1 - Word #1 Q17_2 - Word #2 Q17_3 - Word #3
