Individual Assignment

GREEN CONCEPT IN ORGANIZATIONAL MANAGEMENT

MBA/12/3128 M.M.M. Shamroz

Course Instructor Term

: MBA 509: Business Law : Dr. Wickrema Weerasooria : April June 2012

POSTGRADUATE INSTITUTE OF MANAGEMENT University of Sri Jayewardenepura

DECLARATION

I hereby certify that this Personal Assignment does not incorporate without acknowledgement, any material previously submitted for a degree or diploma in any university, and to the best of my knowledge and belief and that it does not contain any material previously published or written by another person, except where due references are made in the text. Further, I am fully aware of the content under plagiarism stated in Chapter 6 of the PIM student hand book, and I hereby declare and affirm that I have strictly observed the law relating to intellectual property, copyright and plagiarism in this exercise.

M.M.M.Shamroz MBA/12/3128

.. Date

1. Introduction In the last decade, sustainability and greenness have become an increasingly integral part of doing business in any industry. The context within which businesses operate is changing: energy problems, a depletion of natural resources, poverty and increased waste are all having a negative impact on the way organisations function. Organizations have responded to this green agenda in varying ways, including a detailed consideration of the business case for integrating sustainability into their business strategies. The big challenge for businesses consists of how to formulate and implement these green initiatives. The definition of Green refers to the health impact of what we do on living things. So Green is primarily a health-related issue. This is seen in the fact that cleaning products were the early Green issues. In fact, indoor air quality is a big factor in Green buildings. Sick building syndrome was the result of poor indoor air quality, which is the antithesis of Green. Source: http://EzineArticles.com/858846

Sustainability could be defined as meeting current economic, environmental, and social needs without jeopardizing the ability of future generations to meet those same needs. Greenness could be defined as A process of eco friendly practices benefiting society and environment while also adding value to the organization.

Organizational point of view, numerous terms such as sustainability, corporate social responsibility, corporate citizenship and greenness all exist with definitions often overlapping; and even within the scope of each term, there is no consensus as to the definition. Sustainability is lasting change. Greenness is about sustainable change which directs to lasting change in an organization. Sustainability in organizations means going green in a core and lasting way.

Numerous methods exist for adding business value while also contributing to society and the environment. These include but are not limited to: energy efficiency, using renewable & cheaper energy, innovations based upon green principles, increased quality of the product design, increased brand image, increased employee engagement through aligning organizational and employee values, and improved company reputation. Green is a primarily a health-related issue that blends into the other topics of sustainability, pollution control, and conservation. By dividing out the topics properly, the plan of attack seems much clearer. To attack the issue in a methodic manner, businesses should consider "Going Green" first then moving into the sustainable issues. The early disdain for the word Green comes from the anti-business attitudes of ultraconservationists that needed a target for their vitriol. Green is not an anti-business concept when properly understood. A Green business is one that is a good place for living things in the workplace, in the community, and in the world.

2. Challenges and Issues in Implementing Green Practices With the society becoming more environmentally conscious, businesses are starting to incorporate green initiatives in many dimensions such as Green Supply Chain, Green Marketing and Green HR , Green products, Geen packaging materials(Without forms), Green POSMs(Point of sales materials)and etc.. The perspective taken is that for an organization to be sustainable, it must be financially secure and minimize the negative environmental impacts. Organizations are keen on Go for Green concept in order to be environmental friendly. There are challenges and issues that Sri Lankan managers face in terms of green and sustainability. Although Greenness sounds alien to most Sri Lankans, this is a buzzword in the metropolis especially among the corporate sector. Organizations in order to get their products and services to be preferred by customers use this as a very effective and efficient tool.

2.1 How to implement Green concept in a real business Try to convert all correspondence which is paper based into soft copy, this reduces the requirement to cut trees to make paper. If you must print use both sides of the paper, if possible. Add a line in every email you send, requesting the receiver to print the mail only if absolutely necessary. To add colour, add a green tree icon to it. Helps spread the green message. Go for full glass windows to let in natural light in fair weather, and help reduce power usage. You can always use ventilation blinds to cut out the glare. Better still go for intelligent buildings where power usage is automated. Everything switches on when you walk in, and switches off when you walk out. That includes even toilets, water usage can be controlled by infrared sensors. I came across some residential flats in Hyderabad, which can be controlled from a laptop at work. It amounts to total home automation. So, it's feasible solution for offices as well.

2.2 Initiatives in the Organization You can choose to purchase any of the following components that meet the definition listed above. * Green trade show carpet * Green trade show flooring * Green banner stands * Green LED trade show lighting * Green printing * Green podiums * Green trade show literature racks * Green trade show carrying cases * Green trade show shipping crates

3. Challenges in implementation of green concept

There are many challenges in the current business context for implementation of green concept. However if an organization has a right passion and purpose towards this concept implementation would not be impossible.

3.1 Lack of top management support For greenness implementation to be successful senior management support is a must, because not only will the senior management play an important function in influencing the businesss attitude towards green initiative, they can also dedicate resources in terms of time, personnel and finances towards such initiatives.

The primary reasons for taking green initiatives are compliance to buyer requirement. Meantime organizations portray these initiatives as corporate social responsibility in order to create a good image among public. In turn that will pave the way for the smooth functioning of their operation, public will support the organization during crisis situation and can attract potential candidates for the workforce requirement.

Top management is reluctant to spend on technologies and trainings in promoting and implementing green practices. They consider this is an extra cost but they dont realize that its a future investment which will yield benefits and profit in the long run. Many of the companies locally and globally have reported a positive return on their green investments, which prove that Sri Lankan organizations can protect the environment and bottom line at the same time. 3.2 Lack of employees motivation Managers expect individuals to be motivated to do their job in eco friendly manner in the organisation. The difficulty with motivation is that managers cannot directly motivate individuals. Motivation comes from within the employee; it is unobservable and cannot be altered at will by a manager. In other words green practices cannot be imposed rather it should be desired and valued by employees.
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A manager cannot directly influence whether someone desires something however, they are able to provide an environment that offers rewards and recognition for the desired green behaviour. In order to develop rewards and recognition scheme managers could think of motivational theories which are appropriate to their organization.

3.4 Lack of employees, awareness Before engaging in green practices with staff managers need to make sure that they have the right information and clear messages to educate. There is a huge need and gap to fill in Sri Lankan organizations, on the one hand, managers want their companies to go green, while on the other hand they lack the process skills to create sustainable, green companies.

Information and awareness is vital to ensure all those within an organization understand what they need to do, why they need to do it, how they need to do it and where they can access guidance. If information is not available or actively imparted then it is very difficult to expect people to effectively implement green practices.

Investing in employees by providing training on green practices will have multiple benefits to the organization and the society as a whole. This includes best green practices, effective measurements of implementation and the negative consequences of not being eco friendly.

3.5 Influence of business partner USA and UK buyers impose green practices on Sri Lankan organization meantime they pollute the environment in large scale through nuclear project and testing mass destructive weapons. We can clearly say that the reason behind this green practice requirement is for marketing and selling purpose. They promote that the particular garment or product was produced in eco friendly environment to attract the customers.

3.6 Negative perception of employees Organizations primary concern should be environment and then buyers requirement and employer branding. Some organizations are very serious in green practices when buyers come for compliance audit after that they tend to ignore such green practices. Employees will see this as only the business requirement and they will not engage actively in green initiatives. If employees dont care about being green the total effort will be in vain. Here organizational culture plays a prominent role in green practices. An organizations culture guides the decisions of its members by establishing and reinforcing expectations about what is valued. For our purposes, a culture of sustainability is one in which organizational members hold shared assumptions and beliefs about the importance of balancing economic efficiency, social equity and environmental accountability. Organizations with strong cultures of sustainability strive to support a healthy environment and improve the lives of others while continuing to operate successfully over the long term.

Changing organizational culture in Sri Lankan organization is like climbing Everest Mountain however it is not impossible. In this cultural change process Kotters EightStage Process of Creating Major Change (Annexure Figure 1.1). Kotter recognises that organisations are pushed more and more to reduce costs, improve the quality of services, locate new opportunities for growth and increase productivity. This description easily fits an organisation trying to become more environmentally responsible.

3.7 Lack of promotion and Appreciation We have been living very closely to nature. History clearly shows us, that our involvement has been tremendous at that time, especially the technology used for greenness, e.g. Irrigation systems for cultivation. Although the closeness to nature has remained, the greenness aspect has lost its direction due to rapid development aftermath of post open economy.

In order to maintain a clear and longer term consistency the society at large has a moral obligation in preserving the eco diversity that Sri Lanka is rich in. We as conservative people appreciate our heritage deeply, but unfortunately our society pays little attention on environment friendly practices. Our people perception on green practices is highly evident when we see garbage on the street. Same people come to organization with unfriendly environment attitude. The biggest challenge for managers is on how to change this attitude to a positive way.

3.8 Lack of government attention The policies and laws are not up to date with international standards in the Sri Lankan context. For example the National Environment Act 53, the last amendment was in the year 2000, whereas the requirement after 12 years today is much more demanding and challenging.

We can take a practical example; the recently introduced Emission Control Process is totally flawed in the eyes of the common man. Whilst a private car owner is imposed a fee to have the emission level tested to verify the conformity, in reality pollution is abundant especially by Buses, Lorries and Three wheelers. So will the emission control reduce the level of air pollution? We can confidently answer, no. Reason, Sri Lanka imports diesel that contains very high level of Sulphur which contributes to the pollution.

Sri Lanka was one of the first in the world to implement The Montreal Protocol, an International Environmental Agreement, requiring the production phase out substances and gases that contributes to ozone depletion. The elimination of the use of Methyl Bromide in the plantation industry is a classic example. We have the ability to drive green initiatives in effective way.

4. Conclusion The sustainability & greenness have become significant in many Sri Lankan organizations from recent past. Numerous arguments have been advanced as to why organisations should become more environmentally friendly. There are multiple drivers that influence/motivate Green Behaviour:

Values: based on personal morals, and a desire to be environmentally friendly. Compliance: government regulations and buyers requisite create compliance pressures. Intangibles: intangible factors include reputation, brand and relationships. Market: market drivers lead to business development such as product launches, production, purchasing or employee training.

Sustainability and Greenness are interrelated concepts that describe a process of economic growth without environmental destruction. These bring benefits to the organisation such as enhanced reputation, competitive advantage, reduced operating costs and increased margins and longer term benefits. When implementing sustainability and greenness in an organization managers will have to face numerous difficulties.

Unsurprisingly many organisations are keen to espouse their environmental credentials. Sometimes this might be nothing more substantial than a clever marketing campaign. In that case they may only think of these in short term perspective. But sustainability and greenness should be implemented by thinking and focusing in a long term perspective.

There is no doubt that top management and directors should lead with a commitment to improve environmental performance. However, it is more effective if staff see directors and managers visibly getting involved and demonstrating how it is done. This could range from directors simply turning off the lights and monitors in their office when away from the desk and walking around to ask others to do the same.

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Another major difficulty encountered by managers during the process of implementing sustainability and greenness is the lack of people awareness. People in rural areas even may not hear about these concepts since they are not much open to global communication etc. Thus, as an organization when implementing these concepts a proper process should be followed to communicate. Also the employees should be educated about these concepts and the benefits that the organization and the society as a whole will enjoy.

Encouraging employees to develop their own ideas and take action is important to promote green initiatives in organizations. We can have a green idea scheme where our employees are encouraged to submit ideas for how we can become more sustainable. Some successful ideas that should implemented and rewarded.

To inculcate the idea and the importance of greenness in this modern day and age is a tough ask to us as stakeholders. The initiative should be mainly conceptualized and driven by the government through its respective institutions. A long term plan of educating, through advertisement campaigns, including the subject in the school curriculum are few of the effective means that we can site.

The government needs to have radical and realistic targets, with policies that allow incentives and reward entrepreneurs who will invest in sustainability projects. This economical rationality will propel Sri Lankan towards this ecological achievement. The second annual World Climate Summit provided a platform for business-focused climate change solutions, discussing new models in public-private partnerships, scaled projects and acquiring technologies. This highlights even at global level economic contribution to sustainability takes more weight. Thats the very reason the need for a radical bureaucracy in the Sri Lankan perspective on implementation of green policy for sustainability.

The sustainability and greenness concepts should be implemented in an effective manner in order to get benefits. Otherwise the expenses that incur during this process will be a waste and the implementation process will be a failure. To make this process effective it
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requires a continuous innovation, knowledge best practices and collaborative approaches when implementing technologies and policies.

There are several techniques and method to measure the effectiveness of sustainability and greenness initiatives. Managers must have proper understanding on the measurement in order to assess the effectiveness. World recognized measurements should be adopted to measure the effectiveness of sustainability and greenness.

The transparency of the process should also be maintained by providing documentation and making data available etc. This helps to make all the employees in the organization aware of the process and also to identify mistakes in the process. Also this helps to monitor the process flows smoothly without issues.

The evidence points organisations to embracing environmentally friendly strategies to ensure behaviour is embedded across the organisation for long lasting culture change by recruiting and developing staff to fit redesigned jobs. The provision of job resources will lead to work engagement and the many benefits this brings. The overall outcome is not only a green organisation but a smart organisation that attracts quality staff, retains staff who are happy and productive. It is a cost efficient organisation, with competitive advantages and a more secure and sustainable future.

Likewise the issues and challenges that mangers face when implementing sustainability and greenness can be addressed. It will help to protect the resources for many more generation to come. We as managers must feel and act in improving our own environmental friendly performance is our moral and obligation, one that can only be successful through the hard work and engagement of employees.

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5. Recommendations for promoting sustainability in the Sri Lankan organizations

I would like to introduce 9 step model as a recommendation to Sri Lankan organizations,

1. Learn what it means to be a green business A "green business can be defined as an organization that uses renewable resources and holds itself accountable for the human resource aspect of their activities (socially responsible). Being green requires developing an attitude toward sustainability and practices that can be incorporated into our everyday lives. Being a green business means changing the way a business purchases, develops, produces, and provides products and services so it has a positive impact on the environment. Think of the planet as a warehouse of goods. When you use the goods, you have to pay for them with money or fair trade. When you use the environments resources, you have to pay the environment back to offset your consumption. Step 2: Reduce consumption, waste and pollution In this step, we will review processes and look for ways to reduce consumption of natural resources and ways to eliminate waste, including conserving energy, reducing water consumption, and reducing waste. Reduce is probably the most important of the Three Rs to focus on initially. Turn off lights, install timers or motion sensors Replace incandescent bulbs with Compact Florescent Lights (CFLs) Buy in bulk or buy items with reduced / recyclable packaging Reduce car use, consolidate car trips into one, carpool, ride a bike, take public transit
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Keep automobiles well maintained and recycle automotive fluids Remove your name from mailing lists: Install low-flush toilets and water restrictors on faucets and shower heads Improve Landscaping Repair broken sprinkler heads, adjust timers, install a drip system, and eliminate over watering and runoff, plant drought resistant plants, use mulch to reduce evaporation. NOTE: Some water companies use certain chemicals to treat the water that can be harmful to fish. Reducing runoff may be a requirement in your area.

Avoid using disposable products, paper plates, plastic utensils, napkins, paper towels, cups Choose longer lasting products Buy energy efficient appliances and durable goods Buy locally-produced goods and buy from local stores Avoid purchasing products that have a lot of packaging or have to be shipped to you Change the chemicals you purchase to ones that have lower impact on the environment, including cleaning supplies, paint, pest control, fertilizer, etc. Chemical Management: Reduce the amounts of hazardous chemicals that you purchase and store to the absolute minimum. Keep chemicals in properly sealed containers stored in a locked closet. Keep an up to date MSDS binder nearby in case of accidents or spills.

Have appliances cleaned and serviced regularly to improve performance Check the "Power Save" mode on all electronic devices, including computers, printers, fax machines and copiers.

Step 3: Reuse what you have In this step, we will look for ways to reuse items. This may require changing your existing methods and replacing disposable items with reusable alternatives.

Purchase reusable products, such as rechargeable batteries, washable towels Save packing material you receive and reuse for shipping
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Use white boards and e-mail to replace sticky notes Print on both sides, write notes on scrap paper Reuse binders and file folders Use reusable shopping bags, provide reusable bags to your customers Use resalable containers instead of plastic bags Refill ink cartridges Use washable towels, cloth napkins If you cant reuse an item, sell it or donate it so someone else gets use out of it

Step 4: Recycle everything you can In this step, we will go through all processes methodically to see if everything that can be recycled is being recycled. Recycling involves taking items that are at the end of their useful life and giving them to a recycler who can turn them into raw material to make something else. Review all waste products to see if any can be eliminated or replaced with recyclable alternatives. You are probably already doing some form of basic recycling. Cans, bottles, plastics, paper, cardboard can all be recycled easily. Most garbage companies offer recycle bins of some sort to both regular businesses and home-based businesses. Some only offer large cardboard recycling bins while others offer mixed paper or plastic and cans recycling too. Check with your local waste company for details on their offerings. Step 5: Learn how going green can save money Many small businesses think in terms of short term cash flow. The challenge comes in retraining small businesses to think in terms of the long term benefits. Yes, green products can cost more short term money up front, but will typically save money in the long term. If you do it right, you can save money and save the planet at the same time. You will have to assess each of your purchases to determine where going green is a more cost effective choice for your business.

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Step 6: Green your business from the ground up In this step, we will go beyond the Three Rs and learn how to apply what weve learned to the core business itself. We will list things you can do to make your business greener from the ground up. State what you believe, your companys green behavior, your core priorities and purpose for going green, and how your organization rises above others by being green. If you are a new business, this is the perfect time to integrate being green into the business plan. If you are an established business, it is time to revisit your business plan and rethink your strategy. Clearly state the ways in which your products or service offerings will be green as well as how the way you do business will be green. Step 7: Develop and implement a green checklist In this step, we will review the development and implementation of a green checklist. You should designate someone in your organization as a Green Business Coordinator and assign them the responsibility of performing a self-audit against your checklist annually. The checklist should be specific to your business. Generic checklists can be used as a start, but each business is unique in their departmental structures, areas of responsibility, and the products and services they use. Include replacing disposable products with reusable and recyclable products. List several ways to reduce energy usage, water consumption and waste. Review lighting, bathrooms, kitchens, landscaping, printers/copiers, paper products, cleaning products, office supplies and all consumables. Step 8: Review your processes In this step, you will need to review each process and procedure in your business. This includes the entire product lifecycle, including product selection, purchasing, use,
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disposal, and your impact on the environment. To help stimulate your creative juices, we will ask you questions to help you come up with ideas to review your processes and procedures. First off, do you review all the options when making purchases? Remember that TCO is an important factor when making purchasing decisions. Purchase Reusable or Recyclable items. When replacing something, consider how you are reusing, recycling or disposing of the old item. Here are questions you should answer to ensure youre as green as possible when it comes to product use and storage:

Are you using items completely or throwing them away before getting 100% of their useful life?

Are you using products and disposing of them in the safest manner? Are you storing products so that they are safe from damage? Are you storing all of your cleaning supplies and chemical products in a secure location? Think of baby-proofing your home. If you had a toddler, would you leave chemicals out where they could get into them or in an unlocked cabinet, such as under the sink? In your business, you should keep cleaning supplies and hazardous chemicals secure in a locked cabinet or closet designated for chemical storage.

Step 9: Environmental education & networking In this step, we will list ways you can use your business to promote positive environmental and social change. Building synergy with employees, customers, and other businesses will be a key factor in your success. Going green is like a big wave. To keep it moving, it is important for each of us to continue learning about how we can change our ways and to share that information with others. You can use your business as a tool to educate others. In the process, it promotes

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your business as a positive role model in the business community. Here are some helpful ideas: Develop a training program that shows ways employees should Reduce, Reuse and Recycle. Include steps such as turning off lights in rooms that arent being used, recycling paper, cans, bottles, and make sure to cover proper equipment use, such as power saving settings on computers, copiers, and printers. You might want to provide ongoing incentives to encourage participation. Some tools available to you may include the employee manual/handbook, new employee orientation, newsletters/bulletins, and your internal website (if you have one). You might also consider adding employee participation in your green business program to job descriptions and performance appraisals. Through the sale of your products or services, you can let your customers know the importance of going green. Provide them with information on how they can use your products or services in a greener way. Set an example by using green recyclable marketing materials. In addition to above model I would summarize following points to implement a successful green concept in the Sri Lankan organization. 1) Encourage flexible working as a means to save energy; for example, enable employees to work from home where possible. 2) Set green targets. Ensure that staffs at all levels are aware of the targets and are supported to achieved them 3) Provide feedback to staff regarding the organisations environmental performance. This helps to improve personal meaningfulness and thus should have a positive impact on sustainable behaviours 4) Provide education and training regarding sustainability at work. This should enable staff to feel that they have greater control over their environment, and again helps to improve meaningfulness 5) Offer rewards and incentives to encourage green behaviour in the workplace

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6) Consider implementing schemes such as the Environmental Champion network

We hope that these suggestions will help Sri Lankan organisations to foster sustainable and green behaviour in their workforce, enabling them to go green without costing the earth.

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