The business case for sustainable development in the oil palm industry. - (:unkn) unknown
The concept of sustainable development is characterised by three inter-related value systems pertaining to the society, the economy, and the ecosystem (people, Profits and Planet). In business, this is translated to the 'Triple Bottom Line ' - the economic bottom line, environmental bottom line and the social bottom line. In the broader sense, this term is used to capture the whole ser of values, issues and processes that companies must address in order to minimise any adverse impact resulting from their activities and to create economic, social and environmental value. This paper makes an attempt to examine the triple bottom line of the oil palm industry, based on published information of companies listed in the Kuala Lumpur Stock Exchange. The discussion takes into consideration the needs and expectations of various primary and secondary stakeholders that have to be addressed by the industry. Among the three bottom lines, there is considerable scope for the oil palm industry to improve its economic bottom line, particularly with regard to the large productivity gap in terms of FFB yield per hectare and OER performance. Increasing the land productivity and processing efficiency would have a positive impact on the environmental bottom line; it could reduce the pressure on opening new land for plantation development. Based from information obtained from corporate annual reports, only four of the 23 companies surveyed had demonstrated a strong commitment to the environment, thus there are opportunities for improving the environmental bottom line. Although several companies have reported on the use of environmentally sustainable practices such as zero burning, there was insufficient evidence to demonstrate the industry's actual environmental performance and a process for continuous improvement against the criteria ser for the National Annual Corporate Reports Awards (NACRA). In general, the industry has a positive social bottom Une and many companies have demonstrated their commitment towards the welfare of their employees and to the well being of the community at large.
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The concept of sustainable development is characterised by three inter-related value systems pertaining to the society, the economy, and the ecosystem (people, Profits and Planet). In business, this is translated to the 'Triple Bottom Line ' - the economic bottom line, environmental bottom line and the social bottom line. In the broader sense, this term is used to capture the whole ser of values, issues and processes that companies must address in order to minimise any adverse impact resulting from their activities and to create economic, social and environmental value. This paper makes an attempt to examine the triple bottom line of the oil palm industry, based on published information of companies listed in the Kuala Lumpur Stock Exchange. The discussion takes into consideration the needs and expectations of various primary and secondary stakeholders that have to be addressed by the industry. Among the three bottom lines, there is considerable scope for the oil palm industry to improve its economic bottom line, particularly with regard to the large productivity gap in terms of FFB yield per hectare and OER performance. Increasing the land productivity and processing efficiency would have a positive impact on the environmental bottom line; it could reduce the pressure on opening new land for plantation development. Based from information obtained from corporate annual reports, only four of the 23 companies surveyed had demonstrated a strong commitment to the environment, thus there are opportunities for improving the environmental bottom line. Although several companies have reported on the use of environmentally sustainable practices such as zero burning, there was insufficient evidence to demonstrate the industry's actual environmental performance and a process for continuous improvement against the criteria ser for the National Annual Corporate Reports Awards (NACRA). In general, the industry has a positive social bottom Une and many companies have demonstrated their commitment towards the welfare of their employees and to the well being of the community at large.
Keywords: cero quema; Desarrollo social; Medio ambiente.; Sostenibilidad.; Palma de aceite