A.   Rusanov

Ye. Baklanov

Alfred Nobel University, Dnipropetrovsk

 

SUSTAINABLE MANAGEMENT: STEPS TO A GREENER OFFICE

Sustainable management combines the concepts from sustainability and management. Sustainability has three branches: the environment, the needs of present and future generations, and the economy. Using these branches, it makes the system run without depleting resources, maintains economic viability, and also satisfies the needs of the present and future generations. Sustainable management has the application of sustainable practices in the categories of businesses, agriculture, society, environment, and personal life by managing them in a way that will benefit current generations and future generations [1].

Sustainable management is needed because it creates the ability to successfully maintain the quality of life on our planet. Sustainable management can be applied to all aspects of our lives. For example, the practices of a business should be sustainable if they wish to stay in businesses, because if the business is not, then it falls out of the competition. Communities are in a need of sustainable management, because if the community wants to prosper, then the management must be sustainable. Sustainable management can be applied to many things, as it can be applied as a literal and abstract concept [1].

We are living in the industrial age where everything is a producer – consumer chain. In order to satisfy consumer demands huge factories and plants emit millions of tons of various pollutants and this way or the other exhaust Earth’s resources. Environmental issues are a sensitive subject. The opinions around this topic are very different and are usually polarized, particularly when government policy or the long-term view is concerned.

Obviously, sustainable initiatives are fundamentally important for certain consumers no matter what personal opinion you prefer to adopt. In fact, companies' environmental efforts (or lack of them) do not produce a desirable effect on consumers.

Big names such as Microsoft® and Wal-Mart® are now working on major sustainable initiatives such as harnessing renewable energy, and this both differentiates them and enhances the power of their brands [1].

Why does sustainable management matter so much for big companies worldwide? Organizations that prefer to manage their activity in accordance with environmentally-friendly policy receive an improved brand and company image. This is indicated in the report published by MIT Sloan Management Review.

Employee health can represent another significant reason for changing to sustainable management. For example, improving indoor air quality and avoiding strong chemical cleaning agents can help those who suffer from respiratory illnesses or skin conditions.

Going sustainable can also make your relationships with the customers, suppliers government agencies, and the media more positive. Many people and institutions now expect organizations to reduce their impact on the environment, and when you can prove that your company is a "good corporate citizen", they become satisfied.

Sustainable initiatives can also reduce costs. The savings depend on the size of your organization and the steps you take to reduce energy consumption, but some businesses have seen utility bills fall by 20 percent or more.

Finally, sustainable initiatives can stimulate innovation. Some companies have discovered new sources of revenue – or even entirely new products – after starting sustainability efforts. Others have found that going sustainable has helped them manage risks more effectively, enter new markets, use resources more efficiently, and improve their competitive position.

Seven Steps to a Sustainabler Office:

1. Watch Power Use. Replace regular bulbs with compact fluorescent bulbs (CFLs) or light-emitting diode bulbs (LEDs). Encourage team members to turn off lights when they aren't using them. Finally, make use of natural light to save power. If practical, rearrange workspaces to take advantage of light from windows, and turn off overhead lights. This is also an important part of creating a healthy workplace.

2. Think Twice Before Purchasing.

3. Use Reusable Products. For example, disposable cups, plates, eating utensils in the break room can be replaced with conventional ones and a dishwasher will help washing them afterwards.

4. Plant Trees. Where it is practical, you can save energy and improve the appearance of your work environment by planting trees around your building. You can also reduce costs and improve energy efficiency by shading your air conditioning unit from hot summer sun.

5. Telecommute. Allow team members to work from home one or more days each week. This can yield great benefits for both your organization and the environment.

6. Limit Business Travel. Technology has made it possible for organizations to limit business travel without this having a knock-on effect on efficiency.

7. Create a "Sustainable Team". A sustainable team creates and monitors environmental initiatives that are tailored to your organization. Members are responsible for seeking new ways to lighten the organization's footprint, and should also report on it. You can use their findings to customize future efforts towards the needs of your organization.

Sustainable management appeals to both consumers and staff. It makes a powerful statement about your brand, improves employee health, reduces staff turnover, and can impact your bottom line.

Regardless of your opinions on environmental issues, there are compelling business reasons for thinking carefully about sustainable management.

Another important issue is to reduce energy consumption and waste in supply chains. Paul Brody and Mondher Ben-Hamida are supply chain experts for IBM Global Business Services and they offer 12 steps for companies to make their supply chains “greener,” more efficient and more cost effective. These apply to all major industries, such as electronics, retail, food and beverage, consumer packaged goods, industrial etc.

1. Redesign the product. Even simple changes to a product design can reduce energy consumption and waste throughout the product life cycle. Innovation or new technologies may make it possible to eliminate components or ingredients entirely and thereby shorten the supply chain.

2. Reconfigure manufacturing. Reducing energy use and limiting use of pollutants and toxic materials can have a big impact on how green the supply chain is. With the application of a product lifecycle management process it becomes possible to take into account green issues.

3. Shift to green suppliers. Green suppliers may sell at higher costs but this can have a considerable effect on the carbon implications of bringing products to market. An analysis of alternative suppliers may reveal potential benefits from such change.

4. Shorten distances. Rationalization of sources, assembly and distribution in relation to markets may bring change to travel distances and the amount of fuel burnt. For some products, simply working with suppliers who are closer to major markets can significantly reduce energy use.

5. Alter service-level agreements. The cost paid for carbon dioxide emission should be added to the traditional measurements of cost, quality and service when the effectiveness of a supply chain is evaluated.

6. Shrink packaging. The advancement in the sphere of new materials and designs allow companies to make packaging smaller and lighter. This leads to holding more in shipping containers and trucks and, thus, to carry more products in a load. Improved package designs can also lead to simpler recycling.

7. Plan for reverse supply chain activity. Products that are reclaimed from the market for upgrade, refurbishment, recycling or disposal require some kind of reverse supply chain. By doing so it is possible to reduce high waste and energy costs. How products are originally designed, assembled, labeled, and packaged can have a profound effect on the efficiency of any reverse supply chain.

8. Consolidate shipments. There is a reason why some company charge less or even nothing for shipping if you consolidate your order and have all items shipped at once – it saves them money.

9. Plan smarter routes. Planning of distribution routes and choosing the right transportation modes will allow considerable annual saving of petroleum. Modern technology, e.g. software planning tool, will assist in it.

10. Coordinate with partners. Careful coordination with allies both upstream and down will provide many opportunities to make your supply chain greener or more transparent. Be prepared to share your goals and plans and incorporate plans and priorities of others into your solutions.

11. Take a life-cycle view. Look at the whole life of the product to understand where energy is being used and find opportunities. Energy used while a product is in service can be significant.

12. Start now. The opportunity to eliminate waste and pollution is becoming an increasingly important criterion for buyers. Opportunities that deserve investment immediately should be analyzed first. [3]

REFERENCES:

1.                   Sustainable management. From Wikipedia, the free encyclopedia. Available at https://en.wikipedia.org/wiki/Sustainable_management.

2.                   Green Management. Taking Steps Towards a Greener Brand. Available at https://www.mindtools.com/pages/article/green-management-tips.htm

3.                   12 Steps To A ‘Greener’ Supply Chain. Available at: http://www.environmentalleader.com/2008/11/30/12-steps-to-a-greener-supply-chain/

Scientific supervision by A.Y. Gluha

Language supervision by S.I. Medynska,

Senior Lecturer