SOLUTION: ComfortDelGro Organisational Design Assignment Report: ESG Alignment with UNGC Principles & Sustainability Strategy

ComfortDelGro Organizational Structure Analysis

1. Introduction (300–400 words)

Brief company overview (size, sectors, global presence) (en.wikipedia.org, corporate-monitor.org) Purpose: examine ComfortDelGro’s structure, critique alignment with UNGC, and propose improvements Context: Transport industry’s sustainability demands & complexity requiring adaptable structure

ComfortDelGro Corporation is a multinational land transport company headquartered in Singapore. It spans seven countries and employs more than 54,000 vehicles, ranging from buses, taxis, railways systems to engineering and support services. Its subsidiaries include SBS Transit, CityCab, Metroline (UK) and ComfortDelGro Australia, among others. ComfortDelGro is among the world’s largest land transport companies, offering services that include public bus, urban rail, taxi, automotive engineering services and run a fleet management services.

Signatory to the United Nations Global Compact In 2018, ComfortDelGro signed up to the United Nations Global Compact (UNGC) and undertook to support its 10 principles relating to human rights, labour standards, the environment and anti-corruption. These values are a guide for businesses that wish to act responsibly and contribute to the global goals of sustainability (SDGs).

The transportation sector, a vital component of today’s society, is faced with important environmental, social, and corporate governance (ESG) issues. Through increasingly faced climate change, road congestion in urban areas, workplace safety, and regulatory scrutiny, the companies such as ComfortDelGro need to develop coherent and flexible organizational forms by which sustainability can be incorporated and infused into the organization.

The objective of this report is to assess the degree of CDG’s current organisational design in line with the UNGC principles. It will examine whether the company’s structure enables or constrains ESG integration and use appropriate organisational theory to explain strengths and weaknesses found, and through this, recommend structural reform that may help closer align future practice.

2. Theoretical Foundations (600–700 words)

How the theories of org structure affects sustainability (theory on its own, not cdg)

Advanced structure theories:

Mintzberg’s configurations (divisionalised vs. adhocracy)

Organisational ambidexterity – balancing efficiency & innovation

Network and modular structures – relevance for global transport operators

Mechanistic vs Organic design – clarity vs flexibility trade-offs

Organisational sustainability and structure:

Contingency and configural alignment frameworks

Structure as enabler of ESG strategy implementation

UNGC Principles: overview of 10 principles – focus on preferred ones (7–9 Environment; 10 Anti-Corruption; 3–6 Labour)

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3. ComfortDelGro’s Organisational Structure (600–700 words)

Corporate governance and hierarchy:

Board composition (Chairman + diverse Non-Execs) (scribd.com)

Executive leadership: MD/Group CEO and regional CEOs (Australia, China, UK, SBS Transit) (comfortdelgro.com)

Business units:

Singapore and overseas units (bus, taxi, rail, engineering, etc.) (theorg.com)

Support functions:

HR, Sustainability & Risk, Internal Audit, Corporate Development (comfortdelgro.com)

Structure type:

Divisionalised, moderately mechanistic – multiple independent units with central oversight

4. Alignment with UNGC Principles & Sustainability (700–800 words)

Structure issue of the company (point 4 & 5 to combine)

ComfortDelGro as an active UNGC participant since 2018 (unglobalcompact.org); COPs filed annually

Labour (Principles 3–6):

Focus on health & safety, training, diversity, fair work culture (theofficialboard.com)

Multiple geographic units may adopt inconsistent practices

Anti-Corruption (Principle 10):

Central audit committee, whistle-blowing, board oversight (comfortdelgro.com, comfortdelgro.com)

Decentralised units may face uneven enforcement

5. Discussion & Critical Analysis (700–800 words)

(ungc people aspect, in the end of the day to show cdg is sustainable based on organisational structure)

Structure–performance review:

Divisional structure supports local agility but weak cross-unit learning & coordination

Mechanistic centralisation enables ESG control but reduces business-unit innovation

Issues identified:

1. Environmental KPI fragmentation

2. Variable labour and safety standards (e.g., differing risks Australia vs. Asia)

3. Anti-corruption compliance gaps across jurisdictions

Theory application:

Mintzberg: strong divisionalised form with central strategic apex

Contingency theory: structure fits size but not environmental complexity in sustainability

Network structure: current configuration lacks interdependence/connectivity

6. Recommendations (400–500 words)

1. Establish cross-unit sustainability hub:

Deploy network structure overlay to share best practices & carbon-reduction strategies

2. Introduce ESG scorecards for regional CEOs:

Decentralise accountability while maintaining central standards

3. Create Learning & Integration Teams:

Promote knowledge-sharing across units (aligned with organisational learning perspective)

4. Standardise ESG training and audits across units:

Mandate recurring training and independent reviews

7. Conclusion (200–300 words)

Reiterate importance of aligning structure and sustainability

ComfortDelGro’s divisional structure is strong for operations but can be improved for ESG integration

Proposed changes enhance agility, transparency, and long-term sustainability

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8. References (not incl. in word count)

ComfortDelGro Annual and Sustainability Reports (2020–2024)

UNGC official sources

Structure theory literature (Mintzberg, Galbraith, etc.)

Journal articles and Corporate Monitor critique (comfortdelgro.com, comfortdelgro.com, corporate-monitor.org, unglobalcompact.org)

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