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8/7/2019 EM group-6
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Presentation on
Business Implementation Of environment Management
Presented by:Group-6
AbhishekSharma
Ankur
8/7/2019 EM group-6
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Introduction
ØNew corporate viewØDeal more effectively with environment concerns
ØVoluntary actions by large firms
ØProactive approacho Procter &Gamble: Justifying Environmental
Actions
üLink environment actions to cost benefitassessments
üOwn solutions to environment problems
üTrust with local communities
üReduce its use of chlorine and ammoniumnitrogen
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oVolvo: Strategic Goal-Setting and Target setting
üVolvo environmental board set goals
compatible with strategic prioritiesüEnvironmental specialists worked together
with other functions
üBroader strategic goal
ü
ü
ü
ü
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Nine devices to integrate environmental
concerns:
ØIdentify Stakeholders and Related GoalsoDesire to integrate environmental concerns with
core concerns
o
Customers want “green products”o Fear of chemical effects among employees and
locals
o Cost effective accommodation
o Procter & Gamble: Community interview programüClear picture of local image
üHow environmental concerns affects coreinterests
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ØMaintain Senior Leadership Supporto Responsibility for improved environmental
management
o Environmental performance part of corporate
visiono Integrating actions with health and safety functions
oHewlett-Packard: strategic Metrics for Decisionmaking
ü“ TQRDC-E”oVolvo : Environmental Competency Center
üResponsible for property development,product planning, customer software and
hardware developmentüEnvironmental effects on designs
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ØGive environmental champions day-to-dayresponsibilityoWork fulltime on environmental issues
o
“Champions” find and maintain the right balanceo Come from traditional management track
oHewlett-Packard: Environmental StewardshipProgram
üHighly decentralized and entrepreneurialorganization
ü75-100 champions in normal businessprocess
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ØBuild Coalitions With Other Internal InterestsoTo give environmental concerns appropriate
weight
üE.g.: When customers want “greenproducts”
üEmissions account for significantoperating costs
üWDWR:Cost Savings Through“Environmentally”
oPollution preventioninvestments
o20 money saving examples
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Ø Integrate Relevant Elements Of the Value Chaino Identify each activity that contributes to the provision
of the product
o What all activities to keep in house and what all to co-
ordinate with external environmento DuPont and Olin: Views on internal and external
sources
o IBM and Ford: Views on using ISO 14001 to quality
suppliers
o P&G : Influencing suppliers’ environmentalperformance
üSustainable forestry to protect local hardwood
forests
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ØState Environmental Goals In Simple, SpecificTerms
o E.g.: for pollution prevention what a manager should be willing to sacrifice
o “win-win” answer o Ford : Environmental Performance targets in the
Business Plan
üCertify all manufacturing plants toISO14001
üUse 90%of returnable containers by 2001
üReduce paint shop emissions by 60g/m
üReduce energy wastage by 1% every year
•
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ØUse Cross-functional Teams For SpecificDecisions, projects And Processes
o
Environmental specialists should have broader capabilities
oOlin : Team Based Decision making
üEmphasized process over functions
üPortion of team members’ pay onperformance
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ØDevelop Tools To Identify Firm Wide Effects Of Environmentally Related Activitieso “Externalities” exist within each firm
o
E.g. : life-cycle assessmento E.g. : cost-benefit analysis
oVolvo: Environmental priorities strategies system
üMethodology and database for decision
makingüLife cycle analysis
üEffects on human health and environment
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§ Balance centralization and decentralization
• Effective firms try to bring the balancebetween centralization anddecentralization.
•
Integration of core activities withenvironment management.
• When a firm succeeds in integrating itsenvironmental and core management
concerns , the implementation of environment management policybecomes an integral part of day-to-day management.
• Example- Volvo
i ibili i l l
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Assign responsibilities clearly throughout the organization
•
• It is because it is not right to say that
Environment Management iseveryone’s responsibility.
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§ Design metrics to motivate theright behaviour
• Example-it may include observation ormeasurement of how environmentaldamage is being reduced with theimprovement in production process ,etc.
•
§ Use incentives to motivate the right behavior
§
•
Metrics can motivate the behavior only if linked to incentives
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Manage failures to disincentivesfor risk-taking
• Challenge of dealing with failedexperiments associated with pollutioncontrol.
•
• Following questions should be consideredwhile designing environmentalmanagement system:-
• How big a failure/mistake is accepted?• How many failures are acceptable?• What kind of decision screens can reduce
the probability of failure without undulydiscouraging experimentation?
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Empower employees withformal training
• Factual presentations, emotionalappeals, and open discussion groupson importance of environmental
issues.• Cross functional teams to train
employees in use of these methods.
•
Developing environmental specialistsfor environmental decision-making.
• Firms introducing new pollutionprevention
•
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Empower employees withformal training
programs or adopting new analytic tools.• VOLVO TRAINING PROGRAM (by
colleagues)
• Session 1- scared and shockedattendees.
• Session 2- how transportation affects
the environment.• Session 3- on Volvos role in
enviornment.
•
e e op a suppor e
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eve op a suppor veorganizational context fortools
• Environmental audits offers extensivevisibility within the firm ,helps seniorleadership senior leadership
appreciate the pervasiveness of environmental effects in their coreactivities.
• Resource, energy and material trackingsystems.
• Accounting systems that linkenvironmental effects to various
decisions.
eve op a suppor ve
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eve op a suppor veorganizational context fortools
• Engineering models of core productionand remediation activities that helpfirms compare the effects of alternate
environmental actions.
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Communicate continuouslyin all directions
• Conveys the commitment to effectiveenvironmental management to thewhole organization.
•Conveys the knowledge about the
realized performance of environmental management.
•
Conveys info on successes and failuresfrom one business unit to another tosupport learning across organization.
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Communicate continuouslyin all directions
• Promotes info exchange with scientificcommunity and nationalenvironmental groups.
•Conveys info to local communities
including employees who live there.
• Manage relationships with the
stakeholders.• Benchmark to promote continuous
improvement.
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CENTARL IMPLEMENTATIONCHALLENGES 2
• Radical organizational change takes along time
• Firms choose specific changes that they
can build on future learning• Activity at one plant acts as a seed for
extending change analogous
activities at other plants.• To identify such seed activities seek
lower risk, higher payoffs first.
se orma qua y
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se orma qua yframeworks to implementan integration policy
• Total quality management (TQM) toplan and implement the integration of EM.
•
TQM a three part technique: - identify firms key stakeholdersand what each wants.
- identify processes and map their
interrelationships. - Work continuously to remove
waste.
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Available formal qualityframeworks
• ISO 9000 is a family of auditing toolsthat ISO developed to define exactlywhat a firm has to do to implement
real TQM.• ISO certifies third-party auditors to
determine a firm has in fact changedits internal proesses in a way that itimplements TQM.
- U.S Automobile industry issuedQS9000 as supplier qualification
standards.
il bl f l li
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Available formal qualityframeworks
• TQM concepts to EM issues developedthe audit based guidelines called ISO14000.
•
ISO reached on specific guidelines asISO 14001 in 1996.
• Improves effectiveness and efficiencies
of the organizations environmentalmanagement systems.
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Queries ???