''PLEASE READ THE FOLLOWING CASE AND ANSWER THE FOLLOWING QUESTION ACCORDING TO THAT CASE.''

Question; How does Company A incorporate sustainability into its operations? (Answer for question should be minimum two parapgraphs and 300 words)

Thank you

---CASE STUDY Company A---

Company A is a UK-based designer knitwear manufacturer and retailer, originally established as a domestic textile manufacturer during the eighteenth century but now involved in global outsourcing and retailing activities of own-brand products as well as contract manufacturing for other fashion brands. The company counts some of the worlds top fashion brands among its customers and most of its products are made of the finest natural fibres, such as merino wool, cashmere and the worlds top-quality cotton. While raw material production takes place in China and Italy, almost all garment manufacture takes place at the companys UK factory.

---Operationalization of Sustainability in Company A---

Company A incorporates a number of sustainability initiatives into its business operations in order to support ongoing business longevity and growth, as well as environmental and human resource protection.

Building partnerships with relevant stakeholders and creating a supportive organizational culture is important for the operationalization of sustainability within the business. The company strongly believes in partnerships and therefore has entered into a number of partnerships with supply chain partners, NGOs, universities and industry bodies in order to improve their knowledge of sustainability issues and best practice. Proactive, pre-emptive, whole-process supply chain and right first time thinking cultural initiatives are being introduced to manage sustainability more effectively.

To support business longevity and pre-empt supply chain disruptions, the sourcing team sets up longterm contracts for raw material supply continuity and to take advantage of average prices. Contracts are rechecked and renegotiated in case of any discrepancies or if suppliers deviate from what was already agreed. Buying in bulk is also preferred to save cost. In order to overcome capacity problems and shortage of a technically skilled workforce, the company has introduced apprenticeships and some major initiatives to cross-train the workforce. Currency hedging, use of certified and approved supply chain partners, agencies, forums, factories and materials are also used as sustainability risk management tools to prevent supply disruptions.

Within the UK factory, the company has set up a works council as a regular forum for employees to raise issues with management and thus address the social perspective of sustainability. For overseas supplier factories, the technical manager makes regular visits to identify and audit sustainability risks.

As a premium fashion brand and supplier, Company A conforms to strict EU legislation regarding use of chemicals, dyes and other environmental issues when importing raw materials into the UK for garment production. Being proactive in anticipation of regulatory changes as well as cost increases, it is investigating alternatives and substitutes for restrictive and expensive substances, materials and processes in order to comply with laws and regulations and to save cost. It also adopted the Toyota Production System model of lean manufacturing to reduce waste in the UK factory and thereby achieve cost savings as well as reducing environmental impact. The product design phase is seen as crucial in identifying sustainability risks, so senior management meets designers to discuss and identify sustainability risks before garments go into production.

---Challenges to Sustainability in Company A---

Despite the development of a number of initiatives to address sustainability issues in the business, Company A sees a number of challenges to improving its performance in managing sustainability risks, outlined as follows:

• The companys small size and stagnant growth therefore, it lacks resources to recruit a dedicated sustainability manager and instead relies upon its technical or sourcing managers to manage sustainability issues.
• Lack of a dedicated team or champion who looks solely at sustainability, generates information and is ultimately responsible to manage such issues.
• Old technology, factory and infrastructure and inability to invest in more modern, efficient and environmentally friendly technology and processes.
• Lack of sustainability knowledge and a short-term view of the business.
• Lack of visibility and control of the whole supply chain.
• An unwanted move to fast fashion and increasing number of own-brand collections to respond to intensifying competition in the market, which increases the risk of supply chain vulnerability, fragility and likelihood of operational disruptions.
• An ageing working force, stagnant culture and no newness coming into the factory, which results in a lack of new ideas for overcoming the barriers to sustainability.