Экономические науки / Экономика АПК.

Shkuratov O.I.

The Institute of Agroecology and Environmental Management, Ukraine

THE ENVIRONMENTAL MANAGEMENT MECHANISM FORMATION into the overall development strategy of agricultural enterprises

Agricultural reform in Ukraine has objectively required a transition of agricultural enterprises to intensive management methods with extensive use of chemicals and land melioration conducting. However, It was used unilaterally only for economic outcomes, leading to anthropogenic destructive consequences such as: soil degradation, fertility reducing and, consequently, affect the quality of agricultural production and environment state. Under these circumstances, the contradiction between economic feasibility and environmental safety requires a revision of the economy agrarian sector concept that makes it necessary to develop conservation strategies aimed at the consistent solving of economic and environmental challenges in the agricultural enterprises. In this case the main focus of development should be a greening of all production processes.

Development strategy of agricultural enterprises based on the principle of ecological security, involves investing, i.e. investments, into the environmental protection measures. In addition, the basic strategies that follow the principles of sustainable development include: the sufficiency strategy – a voluntary restriction of consumption and the corresponding change in lifestyle; the efficiency strategy – a substantial increase in the efficiency of all technological processes; the consistence strategy – a development of material flow cycle according to the assimilative capacity of nature.

The way to implement these strategies is associated, in its turn, with enterprises economic strategies focus on principles: an efficient management of natural resources; dematerialization (significant reduction in resource consumption based on the recurrence implementation of the economic processes); energy saving; adaptation (matching the pace of economic development with speed and rhythm of the ecological systems evolution).

A starting point for prioritizing environmental strategy is an agricultural enterprise efforts orientation on the four basic elements: product, production, staff, and management. A reduction of the load on the environment occurs in the center of a production analysis by reducing industrial emissions and saving of resources. In the product a consideration focuses on reducing the negative impact on the environment directly by the product throughout its life cycle. Behavior and motivation of employees as carriers of environmental action are the subject of the next field of actions. Enterprise can also use a variety of communication strategies by which communication and feedback on issues and actions in the field of environmental protection are performed.

Environmental strategy also divided into Pull-and Push-strategy. Environmental Pull results from increased demands from consumer demand and the market (competitors, partners). Environmental Push is initiated by legislation and the requirements of environmental costs internalization of agricultural enterprises. Ability of companies to record timely and analyze the impact of these factors in its environmental strategy leads to its medium-and long-term competitiveness throughout the market [1]. In modern terms the environmental issues turn into an integral component of a well-known model of M. Porter's competitive strategies. An environmental issue in the environmental strategy should be always provided, formally at least, along with elements of the strategy to increase competitiveness. Under the advanced approach of Porter [2], the environmental strategy has three components: ecology, costs, and differentiation. Three equal components of the environmental strategy demonstrate integrated character of environmental and economic optimization.

Let’s consider the option of the environmental management by an appropriate representation of local ecosystems ‘production activity – the natural environment’ in the form of double model. This means that additional costs for compensation of environmental degradation at a certain time interval are taken into account and environmental protection is expected. Environmentally safe activity is considered such a manufacturing activity which is resulted in the local ecosystem damage applied in an amount that does not exceed the assimilationist potential of the territory.

Also, do not forget that it is necessary to ensure the environmental safety of the the enterpriseas, that it is shown at the Fig. 1. Environmental safety of agricultural enterprises is its vital interests security against the negative effects of the environment within the local agroecosystem.

Fig. 1. The mechanism of the environmental management in the overall strategy of an agricultural enterprise

Before we carry out the environmental protection measures, a number of issues should be considered.

1. When making decisions about investments it is necessary to ensure the environmental component is taken into account, as in the concept of the whole enterprise as well as at the design stage of the final enterprise product in particular. Environment Strategy integrated with the financial management is justified in terms of economic development of the enterprise, so it is not objectively to consider the introduction of environmentally technologies only from an environmental point of view [1].

2. In the implementation of each investment it is necessary to clarify whether it is focused on environmental protection or it will result in additional environmental impacts. When deciding on investment it is important to keep in mind that from the point of view of both environmental management as well as eco-technologies manufacturers, the impact of the environment should be minimized. Do not buy environmentally friendly technologies after increasing environmental regulations urgently. On the contrary, it is necessary to find out whether you can achieve the same environmental effect without premature replacement of existing equipment to new resource preserving. It is necessary to find out is the government ready to ensure the respite for payments in connection with the introduction of environmentally friendly technologies. Analysis of current environmental and economic performance of industrial activity at this point is based on information available on the enterprise base. Environmental costs (regulatory and above-limit) are set for the enterprise as a result of an environmental investigation which remain constant for the term of next environmental audits that is environmental costs. The current manufacturing enterprise activity within certain limits is adjusted through the mechanism of the environmental management, and, to keep the mass of emissions in the environment that may be relevant to the Environmental Management Plan. In case the payment for environmental degradation is installed, the costs of degradation are analyzed, and when the maximum permissible value from the standpoint of economic viability of these costs is reached the environmental protection measures need to be provided in advance.

References:

1. Косякова И.В. Организационно-экономические основы экологической деятельности промышленных предприятий [монография]: / И.В. Косякова. – М.: Компания СпутникПлюс, 2006. – 316 с.

2. Porter, M.E. 1998. The Competitive Advantage of Nations. New York: Free Press, MacMillan.