Evaluating Aramex's Sustainability Practices

Question 1

The purpose of the sustainability report is to aid the Aramex to measure, comprehend, communicate environmental, economic, governance performance, environmental and subsequently set targets and effectively manage change throughout the organizations. In this context, the report will analyze global reporting initiative (GRI) in relation to Aramex Company as reported in their sustainability report 2017.

Question 2

Question 3

In this report, Aramex annual report 2017 is analyzed. The report contains 191 pages with 19 sections. In addition, the Yearly Aramex report 2017 clearly outlines the sustainability of the company under various subsections including community engagement, youth education, and empowerment, entrepreneurship, environmental commitment, sustainability support, advocacy, and partnership as well as emergency relief. Also, it contains sections of GRI metrics concerning UN sustainable development goals.

Question 4

Aramex reports a broad range of metrics such as environmental compliance, general disclosures, economic performance, labour relations, occupational health and safety, and human rights assessment among others. As indicated by wiki research, the Aramex reports environmental protection through reporting the metrics of total waste recycled by the company which stands at 54,416 metric tonnes. Moreover, the Aramex Company clearly states the amounts of sulphur oxide and nitrogen oxide emitted which stands at 24,855 metric tonnes. However, it does not report on hazardous air pollutants, particulate matter, persistent organic pollutants, and volatile organic contaminants as well as the total amount fined as a result of non-compliance with environmental laws and regulations. Moreover, the company does not disclose its environmental expenditure and investments as well as total energy consumption data. Further, Aramex Company exhibit high governance and management responsibility through reporting on its financial position by disclosing revenue as well as profits that company make at the end of the accounting period. Additionally, the Aramex Company reports the total number of employees even though it does not disclose the number of males vis -a -viz the number of female in the organization. Instead, it does state that the percentage of female and males in top management which account for 83 % and 17 % respectively. If you look closely at the company's board of management, there is only one female among nine board members (Aramex Annual Report 2017, Page 20).

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Arcelik sustainability report 2017 clearly highlights the company’s accountabilities in preserving the environment by indicating GHG emissions carbon dioxide in 2015 is 77,662 metric tons as compared to 2016 which stood at 69955 metric tons. In addition, Arcelik discloses energy consumption in 2016which was 1,729,538 gigajoules per annum as compared to 2015 which was 1,751,093 Gigajoules per year. Notably, this information is missing on Aramex annual report 2017. Arguably, as indicated in the attached excel sheet, the company doesn’t disclose more metrics as far as the environment is concerned. While Aramex has invested hugely in environmental conservation, the real picture doesn’t come out properly about the amount of waste emitted by the company in the environment. In addition, Aramex report focuses on information on corporate social responsibility that the company has engaged or assisted in recent past. In this context, it is clear that the company has failed to balance both environmental and social metrics.

Question 5

Aramex strictly sets its goals against 10 UNGC principles. By adhering to ten principles of UN global compact into strategies, procedures, policies and stabling a culturally sensitive work climate, Aramex does not only uphold fundamental responsibilities to employees and community but also sets the stage for long term growth and success. In this context, UNGC assists Aramex to incorporate and enact a set of core principles that addresses human rights, environment, and anti-corruption issues. Be that as it may, UNGC requires the companies to report on the ten principles as well as align business strategies against those principles. Under human rights principles, principle one requires businesses to respect and support the internally recognized human rights as it relates to sustainability goal three which necessitates for good health and well being. As highlighted by Aramex annual report 2017 page 33, Aramex is committed to providing a healthy and safe working environment that keeps the employees safe and healthy through the year. In addition, the company is committed towards risk analysis within the work environment to understand the root cause of the various risks to intervene promptly to such threats. The report indicates that no occupational hazard was reported in 2017, thus clearly showing its level of commitment towards creating a safe and enabling work environment. The second principle clarifies the need for organizations to avoid human rights abuses. In this context, Aramex Company has a robust human rights policy that ensures that all employees are cushioned against human rights abuses. Under the labor perspective, The third principle requires companies to embrace the freedom of association thus give employee rights to collective bargaining or trade unions. While the company does not have any formal agreements with trade unions, employees of Aramex Company are free to join any trade union of their choice that addresses their issues and grievances s to the employer. Again, under labor standards, principle four, the company ensures that it has eliminated all forms of forced and compulsory labor by subjecting the incumbents to rigorous interview and training that provides that all employees are hired on merit upon application of the job with the company.

Further, principle five and six highlights the abolishment of child labor and the elimination of discrimination concerning employment and occupation. According to Aramex annual report 2017, the working age group is composed of employees who are 21 years and above. Aramex has experienced massive growth in its workforce representing a total of 14446 employees from 82 nationalities around the globe (Aramex annual report 2017 pg 104). Employees hired from Africa represent 29%, Europe and North America 9%, Middle East 8%, Indian subcontinent 6%, Levant 16%, and GCC 32%. This highlights that the Aramex workforce is culturally diverse thus justifying an absence of workplace discrimination based on nationality. Under environment perspective, principle 7 necessitates the need for the company to support the precautionary approach to environmental problems. Also principle 8 highlights the need for business to incorporate initiatives to promote environmental stewardship. Moreover, principle 9 requires firms to develop and utilize environmentally friendly technology. In retrospect, environmental commitment is well aligned with United Nations sustainable development goal 13 which requires companies to take urgent preventative measures to mitigate climate and its adverse effects. On a similar note, Aramex has invested hugely in renewable energy technology and has also adapted to environmentally conscious practices. Aramex has invested in solar, LEED electrification, EV vehicles and clean smart technology. With this, the company has managed to save approximately 355.3t carbon dioxide (Aramex Annual Report 2017 page 47). The tenth principle falls under the category of anti-corruption. In the fight against corruption, Aramex Company has demonstrated unwavering support on the war against corruption by complying with national and international standards and regulations such as The World Economic Forum’s Partnering ,Against Corruption Initiative (PACI), which was launched in 2004 with the aim of consolidating industry efforts to fight corruption., UK bribery act, U.S foreign corruption practice act (FCPA), Accountability principles standards AA1000, International Labor Organization (ILO), UN Declaration on Human Rights, Environmental rules and any Other applicable international and local laws( Aramex Annual Report 2017 page 76)

While it is not easy to meet all the sustainable development goals, Aramex has shown continuous improvement over the years towards the commitment of sustainable development goals. In this context Aramex satisfies sustainable development goal four by ensuring inclusive and equitable quality education through the offering of scholarships to needy students. In 2017, Aramex assisted 178 Jordanians, 158 Egyptians, 69 Palestinians, and 115 Albanians to access University and College University. Further Aramex Company embraces sustainable development goal 8 through start-up support program that promotes sustainable and inclusive economic growth for all. Similarly, this SME program focuses on assisting entrepreneurial ventures in enhancing their growth as they mature. For this reason, in 2017, Aramex supported 2682 start-ups and SMEs through strategic partnerships, mentorship, and sustainability integration. Additionally, Aramex supports sustainable development goal 17 through the cultivation of strategic partnerships with public, public and civil society organizations from local to international level. Aramex is working collaboratively with sectors mentioned above to overcome challenges and exploit opportunities available for sustainable development in the modern world (Aramex annual report 2017 page 48). In 2017, the company directly implemented over 100 projects in most countries of operation benefiting over 60,000 people. According to the wiki rate organization, The UNGC COP reporting level is active and advanced, company's exhibit active participation to UN global initiative while Aramex international has been active UNGC participant since 12th July 2007. This clearly shows that reported GRI metrics are correct and reliable. In the light of this evidence, it is clear that the company reports all the 10 UGHC principles equally thus no special emphasis to any particular principle. However, human capital is an essential asset to organizations. For this reason, respect for human rights at the workplace should be overemphasized to create a safe and healthy working environment for all staffs.

Question 6

As noted above, Aramex Company is goals and objectives are guided by 10 UNGC principles as well as UN sustainability goals. It is essential to acknowledge that while the company attempts to meet all the ten UNGC principles and satisfy the SGD’s, no one company can be able to meet all these standards at a go. This is because; fulfilment of aforementioned requirement s needs massive funding and investments. In this context, the company has to balance the demands of the stakeholders by earning huge profits and high dividends amidst balancing the interests of the community and legal requirements on various aspects including environment, social, human rights and anti-corruption practices. In light of this argument, Aramex Company is partially committed to both the letter and spirit of UN global compact principles. Aramex Company should exhibit a full commitment to UNGC and SDG’s. Be that as it may, I would expect an ideal report to highlight all the environmental performance data not only by explaining the project that it has initiated in a bid of environmental protection but also by verifiable data or metrics that show the real pollutants emitted by the company. Aramex gives shallow data relating to wastes emitted by the company, total wastes water discharge, and energy consumption. That said, Aramex has undertaken vital steps in addressing corruption, human rights, labor, and environmental issues. As highlighted by wiki rate organizations, the company actively reports the UNGC COP metrics, Aramex actively participates in UNGC initiatives, and it has been at the forefront of embracing UN global initiatives. According to March (2015), a comprehensive sustainability report should cover financial reporting, environmental, social and governance aspects of the company. In this context, in Aramex annual report 2017, it comprehensively addresses the aforementioned issues in totality. Then ten UNGC principles provide regulations on anti-corruption practices, human rights, environmental and social protection. Arames Company shows its unwavering commitment to fundamental human rights by ensuring a safe and healthy working environment for the employees. This initiative is in line with SDG that requires businesses to maintain well being of their employees (Arames Annual Report 2017 page 33) Under the labor aspect, the organization has shown its commitments to embrace a multicultural working environment while respecting and appreciating individual cultures. The Aramex annual report page 104 highlights that the company has employed over 17,000 employees from 82 nationalities worldwide. In environmental protection, the company embraces precautionary approaches in mitigating ecological pollution. Also, the environment protection initiatives are well aligned with SDG 13. The Aramex company has invested hugely in renewable energy technology that eliminates the emission of pollutants the environment. However, this aspect does not come out clearly since the company doesn’t disclose particulate matter as well as wastewater that company emitted to the atmosphere. for this reason, there are some aspects on environmental and labor issues that have been blue washed. Moreover, Aramex report does not indicate the actual number of female and male employees which suggest that there might be gender inequality or form of discrimination as far as hiring is concerned. In addition, there is only one female in the entire board of management comprised of eight male members. Be that as it may, the Aramex company remains committed to 10 principles of UNGC and SDG’s to make the world better.