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Economic sustainability

Economic sustainability


Introduction. 3

Economic Sustainability. 4

Environmental Sustainability. 5

Social Sustainability. 6

Conclusion. 8

References. 9



This report focuses on three major concepts of sustainability namely economic sustainability, social sustainability, and environmental sustainability. Sustainability refers to a scenario where an organization tries to place itself at a certain level and keep on trying to stick to that particular level. In this report, it will be identified whether or not the code of ethics was followed by Tramalway Industries. Also, this particular report will focus on issues such as child labor, oil spills, and non- compliance activity and how the organization was able to overcome and tackle the following issues. It has been observed in many scenarios when an organization finds itself in a tricky situation. They try to come out taking the help of unethical practices. It will be determined whether or not the organization took any unethical step to encounter problems and find an easy way out of any given situation.















Economic Sustainability


Research and development are said to be one of the most important units of the organization. research and development work as the backbone of the organization. as without any innovative new products cannot be manufacture. However, it is important to understand that all the research and development activities should be done in a just and rightful manner so that society can enjoy a safe environment. Tramalway Industries has always portrayed an edge over its competitors in the field of research and development, this particular phenomenon has also been identified by the government. The organization was granted fifteen million Australian dollars so that they can continue on their biotechnology research and find new height in this particular sector.

It was identified that the Bangladeshi supplier was indulged in child labor. This particular activity of the supplier was a clear breach of contract. Not only did the supplier lost the right to supply the products of the organization, but the people that were working under the supplier suffered the loss as the company had to relocate and it chose Australia as the new place as a marketplace. All the investments of the organization were for commercial purposes as the local market purchase rate increased significantly. However, in the cases of the Bangladeshi market, the organization took an ethical decision and ended the contract with the supplier in Bangladesh.


Previously the organization has one of its suppliers staged in Bangladesh. However, it was identified that the supplier had been associated with child labor practices. This particular incident was a major breach of the supplier contract as it broke the ethical code of conduct and in return, the organization canceled the contract of the particular supplier. After the incident Tramalway Industries started operating locally that is in Australia. With the introduction of the new supplier, the organization was able to increase its local customers by 75%. This majorly impacted the Australian market as the organization was able to sell their product to the local customer. The organization could work better as they know the set standard of the local market and what are the practices that might be deemed as unethical in their particular country. This will help the organization to work for the people rather than wasting their time to identify the needs of the people or worrying about practices that might seem unethical to the people.

Environmental Sustainability


With the appointment of the new supplier, the organization improved their professional competency. The organization is trying to use all their resources in such a manner that they can be helpful for themselves as well as the society, this can be identified as they have started moving towards more effective sustainable practices. It was identified that the organization wanted to reduce their dependency on non-renewable sources that posed major concerns for the environment as well as the society, to the renewable resources of energy. According to the case study, the organization was able to reduce the total weight on the usage of non-renewable products by fifty-five tones. At the same, the organization was able to increase the use of renewable products by forty-five tones. However, the organization is not completely powered by renewable sources whether it be in the case of production or consumption, still, the organization is taking small and steady steps so that they can ethically operate and help the future generation to utilize all the assets that are being utilized by the current generation. 


Not only did the organization reduce the use of non-renewable sources to produce their products and services but they also tried to upgrade their recycling facilities. It can be identified that the actions of Tramalway Industries have been influenced by their counterparts and other multi-national organizations. It has been observed that the organizations that emerge as market leaders prioritize the code of ethics. Keeping in mind these codes of ethics they indulge in the CSR practices and try to provide the society with the resources that can be used again and again over time. Recycling is one of the most basic and most crucial elements of the CSR practices, and organizations have identified the importance of recycling (Panda, Modak and Cárdenas-Barrón 2017). With the same view, Tramalway Industries are also trying to help society by increasing the products that are recycled in its vicinity. It has been observed that the total weight of the organization has increased significantly, as the company can recycle a total capacity of 25 tonnes.


Oil spills have always been seen as one of the biggest foes of the environment, as they completely disturb the flora and fauna of the particular geographical location. British Petroleum (BP) oil spill, which took place in the Gulf of Mexico in the year 2010 proposed major difficulty for the organization. This particular fiasco killed around eleven people and injured almost 17 of the men working in the vicinity. In addition to this, the company had to incur a total loss of around 20.8 billion (Shultz et al. 2015). However, in this particular case, the fuel that was spilled in the Chemora, Queensland warehouse of the organization was easily controlled. Around 8 kiloliters of fuel found its way out from the ruptured part from one of the tankers. The fuel dripped into the soil and found its way to the soil bed. However, with the help of bacteria’s which fed on hydrocarbon helped to bring the soil back to normal. The organization should try to work on storing their flammable products more productively. As if any individual has to face an issue because of the error made by the organization, it would be deemed as an unethical practice and might even break the code of ethics.


Social Sustainability


Developing countries have emerged as the biggest labor market in the entire world (Berliner et al. 2015). The main reason behind it is the labor cost is very low as compared to the developed country. In addition to this, the company can easily establish its infrastructure more effectively and efficiently without making any changes. Though it seems ethically inappropriate the organization tries to take as much advantage of the lenient rules and regulations that are provided by these countries (Berliner et al. 2015). In this particular case, it was witnessed that one of the suppliers in the Asian country of Bangladesh was indulged in child labor. This particular event was a clear breach of the contract. This particular scenario came into the limelight of the global media which led the organization to find a supplier in the other part of the world. It has been discovered that even with the strict laws and policy regarding child labor multiple industries try to employee young individuals. The main reason behind it is that the children leaving in these parts of the country are exposed to poverty and at a young age they have to fulfill the responsibility of bringing food for themselves as well as the rest of the family.


Every individual has a right to know and exercise the human rights that have been bestowed upon them by the government and it the responsibility of the employer to let the individual do so. Also, if the employer leaves their employee deprived of his/her right, the owner is being unjust. The employer should enhance the ethical practices in the workplace so that everyone can enjoy their stay in the organization. In this particular scenario, it was discovered that the organization has introduced the human rights training and almost a hundred hours of training sessions have been completed on the human right that directly or indirectly were the main core of the operations that took place in the Tramalway Industries. It was also discovered that this particular training session has almost enlightened thirty-five percent of the workforce within the organization. The organization tried to teach the individuals about all the basic rights that include, respect dignity, equality, and many more.


Non-compliance is one of the biggest parts of the marketing world. There have been multiple scenarios where the organizations did not follow the guidelines that were set up by the government. One of the biggest non-compliance scandals that the last decade witnessed was an advertisement fight between Nestle and Greenpeace. In this particular scandal, Greenpeace tried to make a parody video where they showed that instead of chocolate the pack contained a finger of an orangutan. However, in place of providing a relevant answer, Nestle brought down the video from YouTube which outraged many individuals, who were seeking the basis of Greenpeace advertisement (Hosseinali-Mirza, de Marcellis-Warin and Warin 2015). However, in this particular scenario, the organization was investigated by the Australian Competition and Consumer Commission (ACCC), regarding their latest marketing communication. According to the investigation, the organization portrayed content which was false as well as misleading. This particular investigation cost the organization a penalty of 12,600 Australian dollars. The organization paid the amount and changed all the policies that had to be changed so that the organization does not have to pay any more fines and they can follow the guidelines that are issued by Australian Consumer Law provision.  







In this particular report, it was identified that Tramalway Industries had multiple difficulties, but they were able to get out of every single one of them. However, there are chances that this might not be the case always, as the market situation can change very rapidly. In the report, it was discovered that all the activities that were portrayed by the organization were conducted following the code of ethics. Tramalway Industries was able to excel in their research and development department which helped them to achieve financial support of 15 million Australian Dollars by the government of Australia. Also, the organization cut ties with their Bangladeshi supplier as the supplier was accused of child labor. However, this particular scenario provided the organization with an opportunity for local produce as well as sell the product, this not only helped the organization to minimize their cost, but it also helped the organization to increase its customer base by seventy-five percent. It was quite clear from the report that the organization wanted to act in a way so that they can safeguard the environment and at the same time earn a reasonable profit. The organization tried to increase the recycling process by twenty-five times, in addition to this, they also reduced their consumption of non-renewable resources and significantly worked on the increase of renewable sources. Along with this the report also shows that the organization wants to grow taking the help of everyone as the organization provided the employee with a chance to know about their basic human rights that will directly or indirectly related to the operations that are conducted within the organization. However, even after portraying such ethical behavior, the organization made a little mistake. In the report, it was discovered that the organization was indulged with non- compliance activity, which resulted in the organization paying around 12,600 Australian dollars. With the help of this report, it could be identified that however hard an organization tries to follow the code of ethics it fails as the market condition make it impossible for any organization to stick to their code of ethics.








Berliner, D., Greenleaf, A., Lake, M. and Noveck, J., 2015. Building capacity, building rights? State capacity and labor rights in developing countries. World Development72, pp.127-139.

Hosseinali-Mirza, V., de Marcellis-Warin, N. and Warin, T., 2015. Crisis communication strategies and reputation risk in the online social media environment. International Journal of Business and Social Science6(5), pp.7-21.

Panda, S., Modak, N.M. and Cárdenas-Barrón, L.E., 2017. Coordinating a socially responsible closed-loop supply chain with product recycling. International Journal of Production Economics188, pp.11-21.

Shultz, J.M., Walsh, L., Garfin, D.R., Wilson, F.E. and Neria, Y., 2015. The 2010 Deepwater Horizon oil spill: the trauma signature of an ecological disaster. The journal of behavioral health services & research42(1), pp.58-76.

Solow, R.M., 2019. 25. Sustainability: an economist’s perspective. Economics of the environment: Selected readings.

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