January 10th, 2018
JB Hi-Fi Limited – Environmental and Social Statements
Environmental impacts of business operations have taken a centre stage in influencing the course of business. Out of pressures to develop environmentally friendlier ways of doing business, entities have developed various strategies to control, measure and report their environmental performance (Organisation for Economic Co-operation and Development – OECD 97). Despite such attention to environmental responsibility, there lacks conventional reporting standards that would harmonize aspects such as disclosures needed in an entity’s environmental-performance reporting (OECD 104). Accordingly, content and extent of reporting is largely dependent on the concerned entity (OECD 102). JB Hi-Fi’s environmental statement follows such entity-formulated initiatives.
JB Hi-Fi’s environmental initiatives evidence major environmental impacts that affect the entity’s operations. For instance, its provision of reports to the carbon disclosure project (CDP), indicates its attempt to manage greenhouse gas emissions and energy consumption levels at its stores (JB Hi-Fi, “Annual Report 2010” 10). Other environmental initiatives include its commitment to packaging agreements that aim at reducing environmental impact of packaging products, recycling initiatives (e.g. mobile muster and cartridges for planet ark, e-waste management) and product efficiency aspects that aim to reduce energy consumption by products the store offer (JB Hi-Fi, “Annual Report 2010” 10). Through such initiatives, JB Hi-Fi has positioned itself to respond to regulations that could arise to control adverse effects of its operations on the environment, thus ensuring that such aspects do not impede its growth.
Corporate social responsibility (CSR) initiatives form a way through which entities can enhance the value to consumers. Initiating programs aimed at helping the community in which an entity conducts business helps create customer commitment through emotional, social and functional attachments (Green and Peloza 48). Emotional attachment arises from CSR activities such as running or donating to charities whereas social attachment arises from CSR activities such engaging in environmental-promoting activities (Green and Peloza 49-50). Functional CSR activities include environmental initiatives such as developing fuel efficiency products, which in addition to generating beneficial effects on the environment, saves the customer money (Green and Peloza 50). Through these activities, customers can create long-lasting attachments to the entity thus presenting high psychological barriers for them to switch to other products (Yu and Dean 244).
JB Hi-Fi CSR activities that offer social and functional value to consumers are mainly evident in the environmental statement. The social statement adds to these by presenting aspects that would create emotional value to customers. These include the workplace giving program, local charitable donations and placing donation boxes in its stores (JB Hi-Fi, “Annual Report 2010” 11). By addressing these issues, JB Hi-Fi lays a platform through which the community in which it trades can place some degree of commitment to its products – i.e. creating a perception that by purchasing at the entity one is helping alleviate social challenges facing ones community.