10.1 Sustainable management in business
An awareness of and consideration for the environment has long been a focus in the business world, but it is increasingly an area which is considered as an essential part of a thriving business, rather than just something which is “nice to have”. Many organisations recognise the importance of putting policies and practices in place which do not damage the environment or use up scarce natural resources and understand that their customers and their workforce value a clear and positive commitment from them in this regard.
Also known as green management, sustainable management is the practice of applying processes throughout the organisation in order to benefit current and future generations. The overall aim is for the business to strive to reduce or negate its negative impact on the environment and society, contributing in a positive manner instead. Sustainability is a wide reaching area and touches on many different parts of a business, although we will focus mainly on those areas that are directly influenced in your role as Facilities Manager and that you are likely to have the opportunity to contribute towards.
A business or organisation can be described as “green”, if it matches the following four criteria:-
It incorporates principles of sustainability into each of its business decisions.
It supplies environmentally friendly products or services, which replaces the demand for non- green products and/or services.
It is greener than traditional competition.
It has made an enduring commitment to environmental principles in its business operations.
(Wikipedia - Sustainable business)
Sustainability is also becoming something that consumers wish to measure and make comparisons and judgements about the companies that they purchase from.
The ISO 14000 Series Standards provide guidance to support an organisation to achieve the ISO 14001 Environmental Management standard, which is an international, verifiable standard of environmental management. These standards support organisations to ensure that they are keeping with the applicable laws regarding the environment, which can be difficult to navigate and changes at pace. But more than this, the standards offer organisations other, voluntary solutions, to support their operations to be more environmentally friendly.
10.2 Collaboration is key
Green and environmentally friendly issues differ to other areas of business focus, in that they are usually not considered so much of a competitive advantage as to inhibit the sharing of ideas and successes with other businesses. In this sense, it is a wise choice to research what support is available to help your business on its journey to becoming more sustainable and environmentally aware. There are a number of charities and non-governmental organisations that offer advice, support and even helpful resources, such as sample policies, recycling guidelines, staff communications, etc. Of course, hand in hand with this is the environmental law in the UK, which works closely withEuropean and international regulations, due to cross border problems such as air and water pollution.
The Environment Agency is a non-departmental public body with strong links to the government, who have the responsibility of protecting and enhancing the environment. Its official purpose is "the objective of achievingsustainable development" (taken from theEnvironment Act 1995, section 4). Protection of the environment relates to threats such asfloodand pollution. Thevisionof the Agency is of "a rich, healthy and diverse environment for present and future generations". Also consider how engaging with your local community could benefit you. Working closely with other businesses, residents and the local council could be a great way to make sure that your green initiatives have sticking power and create a bigger and more demonstrable impact. Some towns have monthly meetings where representatives from all sorts of businesses come together to share their successes in environmentally friendly activities and they can be a great source of ideas and advice.
10.3 Ways to improve the sustainability of your business
We have suggested lots of different ideas for you to consider in your quest to minimise the negative impact of your organisation on the world around us, as follows:-
Reduce the amount of waste that your business produces
Go paperless, or make the switch to post-consumer waste (PCW). In today's modern world, many businesses can survive by using minimal amounts of paper, instead relying on computer systems, email, digital readers, etc. If you have to print, however, you should try to use PCW paper, which is manufactured completely from recycled paper. This paper has the great benefit of using an incredible 45% less energy in its manufacture. You should also ensure that you provide sufficient paper recycling units for staff to use on your premises, so that you are not sending any waste paper to landfill, where it cannot be recycled.
Consider ways of reducing the costs of meetings
Holding regular business meetings with employees working in various locations can quickly make the carbon miles add up. Think about alternatives, such as conducting virtual meetings to save the cost of making business trips, or even making telephone calls instead of holding unnecessary meetings.
Use recycled where you can
There are lots of creative ways to make this happen and many will be industry or business-specific to your organisation. Some ideas include using recycled office stationery, second hand office furniture and refillable computer ink cartridges.
Buy green
Revisit the suppliers that you use and make sure that you are confident in their green credentials, or consider seeking out an alternative. You can ask suppliers or other companies that you work with to see their sustainability policies or procedures, or insist that you only purchase the most environmentally clean and efficient equipment or materials from them for example. There are now more tools available to enable consumers to judge how green a product or service is. You may have come across some symbols which signify that products are environmentally or socially conscious.
For example
The FAIRTRADE Mark is a registered certification, applied to products which have been sourced from producers in developing countries.
The recycled symbol is used on packaging across many countries, to confirm that the producer of the product has made a financial contribution towards the recovery and recycling of packaging.
Look out for these symbols on the products that you buy for your organisation and encourage your workforce to do the same when making purchasing decisions, both at work and in their personal lives.
10.4 Support your staff to make environmentally friendly choices
There are a raft of measures that you can consider in this regard.Perhaps you could consider setting up a staff group or council, to introduce green measures into the workplace and encourage them to get their colleagues involved. This is a great way to garner engagement across the workforce, so that employees feel involved and consulted with, rather than simply told to be more environmentally conscious. If the staff group is also responsible for communication and the monitoring of success of the implemented environmental policies, such aschecking the recycling bins, they are also more likely to have a vested interest in the success of the work. Initiatives such as Cycle to Work or Car Share schemes aim to reduce the number of employees driving to work and can have a really positive impact on the environment, minimising pollution and traffic problems.
What's more, encouraging staff to walk, cycle, or take public transport to work can also help them to live more physically active, healthy lives. Some companies even offer financial incentives to employees to participate in such initiatives. Think about your office or work environment and the small things that could be changed to have a positive environmental impact.
For example
Suggest that employees bring their own cups and refillable water bottles to work instead of using throwaway paper and plastic cups and bottles, or offer instant coffee in large recycled jars, rather than non-recyclable single-serve coffee pods.
Reduce your water usage
There are a variety of modern methods to reduce the amount of water that your business uses, with water saving features that are integrated into the design of the building itself. One way of dramatically minimising the volume of water used is to reduce the water pressure and water conserving fixtures and fittings. Reduced-flow shower heads and reduced-flushing toilets can be really effective in this regard.
Rainwater harvesting, which is the effective capturing and storage of rainwater to use for the everyday functions of a building, is relatively simple and cost effective and can have a big impact on water usage on your premises. Naturally, there are potentially greater opportunities to benefit from rainwater harvesting in locations which see greater levels of precipitation and therefore, you should conduct a cost-benefit analysis to ensure that the costs of implementing such a system will provide increased cost savings in the use of water across the life span of your building. Any appliances on the premises which use water, such as on-site laundry facilities, dishwashers, boilers, etc should be energy efficient and serviced regularly.
10.5 Reducing the energy footprint of your premises Choice of building location and materials.
If you are involved in a move of premises, you should consider the importance of building design, site choice and respect for natural habitats and ecosystems. Decisions made by designers about the types of materials used to construct a building are also important. As the population of the world is increasing more steeply than ever before, there is an urgent need to address the issues of future scarcity of resources.
Traditional building methods are often notoriously bad from an environmental and pollution point of view, often using unsustainable natural resources and producing lots of CO2. Fortunately, as this problem becomes more widespread, it has become more recognised and there are an increasing number of more sustainable building materials coming onto the market.
For example
There are now more sustainable forms of concrete alternatives, such as crushed glass or woodchips, plus sustainable wood which has a much less harmful effect on the world's natural ecosystems. Using the sun as a source of energy is an area that has been previously underutilised, but is now becoming very popular. Solar tiles, for example, aim to capture the warmth of the sun during the day, to produce an energy source that can be captured and used for all manner of energy uses across a building.
The effect of extracting the raw materials
Extracting non-renewable materials such as coal can have big consequences for the environment, as can the extraction of renewable materials. Impacts to consider are air and water pollution and the disruption and irreversible damage to natural habitats and eco systems.
Embodied energy
The term embodied energy refers to the total energy used in the extraction, production, transportation and construction of a building material. The embodied energy of a building material that you are considering working with should be considered, so as to understand the true environmental cost of using it. Remember also that the construction process can often create pollution and high carbon dioxide emissions. If you are involved in decisions regarding the most suitable materials to use for a building, the so called “carbon footprint” of materials should also be considered. Sourcing materials from a long distance, which must be transported to where you need them, costs
money, can take time and also has a knock on effect on the environment.
10.6 Recycling initiatives
When considering opportunities for increased recycling in your business, first consider the key materials that are thrown away. Much will depend on the type of business that you operate. You can use your observation skills by checking the rubbish bins at different points on your premises, or you could carry out a waste review, which is a more structured process, in order to identify the proportion and volume of materials that make up most of your waste. As general business rates do not cover waste and recycling services, you should get some quotes from waste contractors (you may need to seek out specialist services, if your waste is hazardous or difficult to dispose of).
Encouraging your workforce to support recycling efforts is critical to the overall success of your recycling programme.
Here are some ideas:-
Encourage senior management involvement, to get buy-in from staff.
Include cleaning staff or contractors in your communications, by asking for their ideas and supporting them with the skills and knowledge to recycle waste correctly.
Remove individual bins that staff members have under their desks and replace them with more general waste and recycling points at designated places around the premises. This increases how much material is potentially recycled, as it removes the temptation for staff to throw things away without thought.
Activity 1
Estimated time: 15 minutes
Write a minimum of 300 words about the importance of using recycled office products, giving some examples of alternative products that could be used in this regard (you may need to do some research into other, environmentally sound office materials).
10.7 Corporate Social Responsibility (CSR)
The environmental efforts and green credentials of a company are not the only thing that matters to consumers when choosing a business to purchase from. There are other areas which, together, mean that a company or organisation not only complies with its legal and regulatory responsibilities but creates a strategy of ethical practices and standards. As well as a focus on sustainability and the environment, corporate social responsibility (CSR) can include ethical workforce practices and corporate philanthropy.
Why does corporate social responsibility matter?
Including CSR in the wider business strategy is becoming more and more mainstream for forward thinking organisations who are looking to embed a strong moral compass in the heart of their business operations. The moral case for such thinking is clear to see. Many people increasingly believe that businesses have a great responsibility to the society in which they operate and should be in a position to give back as much as they take out, if not more so, in order to have a positive impact on the environment, economy and community in which they operate.
There is also a demonstrable business case for embedding CSR into your organisation, as follows:-
Consumers are increasingly drawn to companies who “give back” and it is an ever growing factor in their purchasing considerations, along with price, quality, brand, etc.
In fact, a recent study by Better Business Journey, UK Small Business Consortium found that 88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society.
A strong focus on CSR can also help to recruit and subsequently retain quality talent. The next generation of employees is increasingly looking for employers who can offer a more rounded environment to work in, rather than the traditional catches of salary and pension and a strong trackrecord in CSR initiatives can sometimes be the defining feature of a company's recruitment strategy, to target more socially conscious potential employees. It is in this way that CSR can support a business in a competitive marketplace for talent, in order to be an Employer of Choice. Employing a CSR strategy can save money on energy and operating costs, through its focus on reusing, recycling and minimising unnecessary use and waste of resources.
It can improve the reputation of your business and its standing in the area in which it operates. Quite often, a solid CSR track record can be the differentiator between two competitors in a marketplace who offer similar prices, quality, etc. Also, well executed CSR initiatives or campaigns.
For example
Charity work, can create positive headlines and can be a great source of PR for a business.
Examples of companies using effective corporate social responsibility campaigns
The Co-operative food group have achieved great success through their wide ranging CSR campaign, so much so that it is now fully integrated into its brand identity and well known by consumers and the general public. Every year, The Co-op publishes a sustainability report detailing their performance on a range of ethics and sustainability issues, so that staff, consumers and investors can track their success in this area.
The key areas that The Co-operative focuses on are as follows:-
Ethical trade and human rights, including their focus on Fairtrade products. Community and society, such as their charity and local community support. Environment and resource use, including the fact that they source 99% of their electricity from renewable sources and recycle or reuse 95% of their waste. People, including paying above the national living wage and including employee representatives in key decision making and AGMs.
The Co-op has a set of key shared values and ensure that they are integrated into their business strategy and are at the heart of their corporate social responsibilities ventures. These values are self-help, self-responsibility, democracy, equality, equity and solidarity. Their CSR strategy is an effective way to highlight these values and help their employees and customers to live them.
Activity 2
Estimated time: 15 minutes
Consider your organisation, or another one with which you are familiar. Choose at least one area of Corporate Social Responsibility (environment, philanthropy, etc) and
describe a) the current state of play and b) brainstorm at least two areas of improvement.
10.8 Creating a CSR policy
Targeted CSR policies can be the driver for corporate change. With well defined objectives and quantifiable SMART targets, an effective CSR policy will provide the foundation for steps towards running a more sustainable and ethical business. The creation of a CSR policy should start with an assessment of every aspect of your business and its operations, including its impact on employees, clients, suppliers and communities.
Here are some useful tips that you can use, when creating an effective CSR policy for your business:-
Choose causes that connect with your business' shared values or purpose
If you can successfully link your CSR activities to your company's strategy or business objectives, you are likely to have a bigger impact with what you do and your customers will likely find it easier to identify with the initiatives. As an example, Ben and Jerry's only uses fair trade ingredients in their products and has developed a sustainability programme for dairy farms in its home state of Vermont.
Focus on the right issues
This point is similar to the one above, but focuses more on choosing areas of activity where a) you feel that you can make a difference or have the ability to influence and b) are close to your target customers' hearts. Remember that initiatives that capture the imagination and are carefully thought out with clear intentions generally resonate more with people. For example, philanthropy is not just about giving a portion of the company's profits away to charity (though this is obviously a great thing!). Consider other ways to get your workforce and customers involved, such as sponsoring a charity on an ongoing basis and arranging fun activities to raise money.
Consider the profitability factor
It can be difficult to weigh up the monetary effectiveness of CSR policies, as the benefits that they can offer a business are often intangible and difficult to measure, such as an increase in brand awareness, etc and separating out of CSR as the defining factor of success can be hard to do. Your business may decide to set aside a budget for the social and environmental causes that it wishes to focus on, but you should still consider mechanisms to enable you to measure return on investment so
that the outlay can be justified if necessary.
Engage the right stakeholders in your business
Your Managing Director and other senior management need to be supportive of the strategy and, crucially, committed to investing from both a financial, strategic and resource perspective across longer than the immediate short term. Dipping in and out of initiatives can send a message to your consumers and to the market that you are not serious and even that you are simply seeking short term rewards or publicity. Furthermore, as many CSR activities take months and years to come into action, let alone show any positive effects, a focus on the short term would not do justice to thepotential success of such initiatives.
Fact
Nine in ten consumers expect companies to not only make a profit, but also operate responsibly to address social and environmental issues.
Source: Study by Cone Communications
10.9 Shout about your efforts
Naturally, in order to benefit from some of the advantages in brand awareness, customer loyalty and reputation that a CSR strategy can generate, you need to publicise your objectives and make sure that the public know about the work that you do. Equally, however, increasing awareness about your initiatives can also have the positive effect of
pushing and encouraging further change and evolution in the CSR area and may even convince other organisations of its merits and advantages.
Consider regular press releases, publishing your CSR strategy, annual reporting on your progress and updates for regular customers to raise awareness.
Assignment
Corporate Social Responsibility
Time: 30+ minutes
Hopefully, you took in as much of the information in this module as possible. To find out how well
you have done, complete the following worksheet.
Module Summary
In this module, you learned all about the importance of implementing environmentally friendly and corporate and social responsibility initiatives into your business and the benefits that such strategies can bring about. We began by taking a look at the definition of a green or sustainable business, plus the ISO standards and bodies such as the Environment Agency, who play a big role in this field. We covered the key characteristics of a sustainable business and then moved on to taking a detailed look at ways in which to improve the sustainability of the company that you work for, considering the areas of waste, purchasing, staff engagement, reducing the energy footprint and water use and recycling, giving you lots of tips to try in each area. Following this, we defined the concept of corporate social responsibility and some of the reasons why it is so important and why you should consider implementing a CSR strategy in your business. As part of this, you learned the key steps in the creation of an effective CSR plan, as well as some general pointers to bear in mind. Finally, we considered a brief case study of The Co-operative group, who have successfully implemented and embedded a CSR strategy into their business operations.
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