Sustainability reporting and operational excellence: waste management in global apparel companies originated from three countries

Abstract

In today's ever-changing business world, sustainability reports are essential tools for companies to demonstrate transparency and accountability across all aspects of their economic, social, and environmental impact. These reports share essential information with stakeholders and heavily impact how companies are viewed and judged. At the same time, operational excellence methods have become crucial in the ongoing shift towards sustainable business practices. However, even though the researcher recognizes the importance of combining operational excellence with sustainability efforts, there is still a gap in understanding how they are implemented and how effective they are in different parts of the world and with various cultures. This study narrows this gap by thoroughly analyzing how six major apparel companies in the United States, Europe, and Turkey perform in sustainability reporting and operational excellence methods. The researcher has selected two companies from each region for a detailed examination. This approach uses a scoring system based on the well-recognized Global Reporting Initiative Standards, GRI 2021, to assess how well these companies follow sustainability practices. Additionally, the researcher is looking closely at the quality of their sustainability reports and examining their operational excellence strategies for waste management as outlined in these reports. By examining how sustainability reporting and operational excellence overlap, this research adds to the discussion about sustainable business practices and offers valuable suggestions for companies trying to blend these approaches successfully. The researcher meticulously cast a wide net in the data-gathering approach, sourcing information from various channels. The primary focus centers on scrutinizing the meticulously prepared sustainability reports of 2022, publicly accessible on official company websites. Besides, the researcher examines external sources cited within these reports, encompassing additional studies, relevant resources, and supplementary data. In analyzing the data of these companies, it became apparent that each of the six companies adhered to the same reporting framework. However, the outcomes varied significantly. American companies emerged as leaders in this regard, showcasing comprehensive and robust sustainability reporting practices and consistently earning them the highest average scores. Their reports likely covered a wide array of sustainability metrics required by GRI 2021. European companies closely followed, demonstrating noteworthy efforts in sustainability disclosure and commitment to sustainability, evident in their reporting practices. On the other hand, Turkish companies faced challenges in keeping pace with their American and European counterparts. Despite making strides in sustainability, their reports lacked the depth and breadth found in the reports of American and European companies due to various factors, including differing priorities, resource limitations, or less-developed sustainability strategies within the Turkish business context. There was a clear trend in all reports, and companies tend to do better in reporting on their economic and governance aspects. However, they fall short when reporting on social and environmental issues. This consistency highlights a shared focus among companies on showcasing their economic and governance successes, possibly driven by a desire to satisfy shareholders and comply with regulations. On the other hand, the weaker reporting on social and environmental issues reveals a gap in addressing broader societal and environmental concerns. This shared pattern suggests a more significant problem within corporate sustainability reporting. It emphasizes the need for a more comprehensive approach to sustainability, where social and environmental factors are as important as economic and governance factors. The study revealed a considerable connection between using operational excellence strategies and how well companies perform regarding sustainability. These strategies help companies improve their processes, reduce waste, and become more efficient. They also encourage a culture of continually improving, leading to better sustainability results. The close link between a company's focus on operational excellence and its sustainability success shows how important it is for companies to blend these strategies into their operations seamlessly. By doing so, they create an environment where continuous improvement and efficient operations become the norm, significantly boosting their sustainability efforts. It is worth noting that while these strategies and their intensity may differ across regions, the underlying patterns remain consistent. The shifting landscape of corporate transparency represents a significant milestone in recognizing sustainability as a vital concern for all stakeholders globally. This change presents a new era where companies prioritize social, environmental, and governance excellence alongside financial success. This study and its suggestions are helpful for companies looking to improve their reporting of their sustainability efforts and doing well overall. Plus, it encourages more research in different industries and underscores the global significance of sustainability reporting. This study and its suggestions provide valuable insights for businesses seeking to enhance their sustainability reporting and overall effectiveness. Moreover, this evaluation may encourage additional research in various sectors and locations, fostering a broader comprehension of sustainability reporting on a global scale.