Sustainable Leadership for Quality Management
Looking at the performance of the EMAAR in the real estate development, there is no doubt that the company has established its refutation as a very credible and respectable multinational company. However, with its wide range of international clientele, and the success that the company enjoys, there are still issues that are affecting the company. A Google article pointed out that the growing international exposure of the company to international real estate markets have made EMAAR products extremely receptive to expectations and the expectations in turn are very much susceptible to its success.
One of the concerns that the company currently faces has to do with standards associated with company’s image. In this case, it is important for Emaar to conduct sustainable business that supports sustainable development in terms of water scarcity, lack of sanitation, and rising healthcare costs. The leadership areas for Emaar that promotes and operates quality management are commitment engagement, investor affairs, community affairs, measuring and reporting, suppliers and contractors, government affairs, customers and marketing, employees, environment, and corporate governance (Kattouri, p. 4).
As part of the quality management system, the Human Resources department and the Corporate Excellence department has created policies and initiatives to fully implement the Corporate Social Responsibility (CSR) since the establishment of a long-term cultural organization change. The CSR as endorsed in the company is based on the principles of sustainable living environments that reflect the culture of the people. Quality management then is very essential to carry out its corporate goals and objectives effectively through an environment that promotes responsible behavior between employees, contractors, suppliers, shareholders, and communities.
Inventory of Assets 2007 is marked as a challenging year for Emaar since it started in 1997. According to report, 2007 caused this reputable financial institution to decline due to the US sub-prime crisis, which was expected to continue due to recession. Yet, in general, its financial performance achieved higher profit by three percent despite lower land sales of the US real-estate sector in that year. The company that focused on business segmentation and international expansion, its increase by 25 percent to AED 17.
566 billion is due to the strategy of creating significant value for their shareholders. The company actually increased the net asset value and fair value of the land, real estate properties, and market value of associates by 46 percent (Summary of Annual Report, 2007).. In that same year, Emaar has invested AED 18 billion in their international business excluding United States, which reported to launch 2,456. Likewise, its properties in Dubai – the Dubai Mall and Dubai Marina Mall have a combined asset value of nine billion. It has also opened three hotels in Dubai with an asset portfolio of AED 3.
5 billion not to mention its properties in Singapore and others from 36 countries around the world. Center on the financial objectives of the company, management has initiated the program for risk management in order to reinforce Emaar and to safeguard it from possible risks and uncontrollable risks. It is a team under the Audit Committee that establishes guidelines for that purpose (Annual Report 2007). Again, as envisioned of having quality management, the management is dedicated on providing value to their shareholders, which in turn, giving value to their customers.