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Environmental Science and Pollution Research

https://doi.org/10.1007/s11356-020-08816-y

RESEARCH ARTICLE

Overview of green business practices within the Bangladeshi RMG


industry: competitiveness and sustainable development perspective
Apurbo Sarkar 1 & Lu Qian 1 & Anamika Kor Peau 1

Received: 19 January 2020 / Accepted: 7 April 2020


# Springer-Verlag GmbH Germany, part of Springer Nature 2020

Abstract
Green business initiatives have become a prime driving force towards sustainable development across the world. The economy of
Bangladesh is now on a pick as she has been moving towards nearly hitting the target for becoming a middle-income economy by
2021, and for attaining so, the development of industrial sectors is unavoidable. The booming industrial sectors have been
resulting in a massive depletion of natural resources, greenhouse gas erosion, and toxic waste disposal, which further can cause
uncontrolled degradation of air, soil, and water. In this highly competitive world, like most other businesses, ready-made garment
(RMG) firms are facing tremendous pressure for being more competitive and availing a decisive position towards the reduction of
pollution and impacts of ecological footprint. This nation brings a new paradigm of doing business called green business (GB).
Principles of green business compact with emerging approaches for producing, marketing, and disposing of the products, which
maintain environmental safety and business competitiveness. Green-oriented business strategy can act as a crucial tactic for
gaining a competitive advantage over the potential competitors and assess them with a better way to uphold their stand towards
attaining sustainable development. Since the modern purchaser is continuously being attracted to green-oriented RMG industries,
they want to attain their responsibility to Mother Nature. Especially for the RMG sectors of Bangladesh, environmental concern
is highly crucial since it is the most significant economic sectors of this country. The prime objective of this study is to provide an
overview of green business strategy associated with the RMG sectors of Bangladesh, which further assist the sectors with
competitive advantages. In order to fulfill the prime objectives of the paper, the authors conferred various books, journals, and
research papers related to green business and competitiveness within the context of Bangladeshi RMG sectors. Furthermore, the
study arranged some casual discussions with industry professionals in corporate social responsibility (CSR), environmental
protectionist, sustainable development executives, and ecology-friendly performance officer to provide substantial assistance
for focusing on the precise direction of foundation evaluation and synthesis. In contextualization of the intensification of green
business strategy and environmental degradation, we proposed a framework to quantify the green business strategy with the view
of gain competitive advantages across the RMG sectors in Bangladesh.

Keywords Green business . Sustainable development . Competitiveness . Eco-friendly business . Environmental protection .
Environmental pollution

Introduction populace, the world populace might finish nearly three to six
of world’s resources within a single year (Mittal 2013). It is
If every country in the world follows the lifestyle of developed estimated that the population of the world would be raised to
countries, which would have not even be 30% of the present 9.8 billion in 2050 and 11.2 billion in 2100 (UN DESA 2017).
Increased population means increased pressure for the de-
Responsible editor: Eyup Dogan mands for products, natural resources, and energy that could
have to evolve with challenges like climate change, global
* Lu Qian warming, hazardous waste disposal, ecological imbalances,
luqian@nwafu.edu.cn ecological resources degradation, and unfavorable living con-
ditions since these notions are closely associated with extreme
1
College of Economics and Management, Northwest A&F University, water and land contamination. The emergent, developing, and
Yangling 712100, Shaanxi, China less developed countries are trying to elevate the living
Environ Sci Pollut Res

standard of their growing inhabitants. Simultaneously, devel- implementation of the green business–oriented industry is
oped nations are not willing to lose their modern standard of one option for humanity to avail of sustainable development
living (Vogel and O’Brien 2017). Therefore, the typical global in the industrial sector. Afonso et al. (2018) stated that the
consumption pattern retains increasing as living standards implementation of green businesses should focus on the prop-
keep rising, which denotes that the development of industrial er mixing of environmental concerns with economic and so-
sectors is inevitable (Mittal 2013). That notion has cial objectives. This notion of green business is conceptual-
commanded an extremely unsustainable position as presently ized with competitiveness and sustainable development
industrial sector utilizes approximately 70% of world energy perspectives.
and resources (Schaefer et al. 2016), and the intake of acute Chuang and Huang (2018) highlighted the green business
resources for manufacturing use has reached more significant orientation within the integration of capital stock, environ-
than before (Mittal 2013). mental performance, and business competitiveness. Bekk
Ready-made garment manufacturing sector is rising glob- et al. (2016) uphold green brand priority–based management
ally at a very high speed to encounter increased demand for tactics as a robust framework for gaining competitive advan-
clothes, fiber, wools, and fabrics (Smith 2016). The nations, tages in highly competitive business world. Various marketing
principally developing nations, are working rigorously to researchers also focused on the green orientation for profiling
achieve a high development in the ready-made garment opportunities to hold higher market share and communication
(RMG) sector to boost their economic development. strategies (Güzeloğlu and Erten 2018; Lin and Chen 2017).
However, the fast growth of industrial sectors has incredible Some researcher provides an insight view of resource-based
effects on the environmental sustainability, which has become theory to quantify the impacts of green business strategy to
one of the leading global concerns nowadays and becomes a smooth transition of competitive advantages (Couckuyt 2018;
prime challenge among businesses, academia, governments, Duarte and Cruz-Machado 2017). Some study has triggered
and international groups (Hossain et al. 2017; Mittal 2013). the process management of the green tactics (Ma et al. 2017;
Moreover, this growth can boost the degradation of the eco- Routroy and Kumar 2016; Wakeford et al. 2017), efforts for
logical balance and create a vulnerable situation of human optimization of organization’s processes (Abreu et al. 2017;
existence in the near future. Within the mid of the twenty- Katip and İnce 2018), and investment in more energy-efficient
first century, RMG businesses have been adopting the emerg- infrastructure (Botchie et al. 2017; Çay 2018); some from a
ing state of environment-friendly green practices on a sustain- behavioral perspective (Jakobi et al. 2016; Pal and Gander
able basis, which entirely changes the structure of this sector. 2018) and some researcher mentioned green business as col-
RMG manufacturing is a high-energy and resource-oriented lective means to reduce environmental impact in terms of the
industry, which demands a massive amount of natural re- manufacturing industry (Cotton et al. 2020; Nayak et al. 2019;
sources for its per average output (Talapatra and Uddin Venkatraman et al. 2020).
2017). Energy and natural resources are the leading utility Conversely, the enactment of green business is not as sim-
for production and distribution. ple as it seems (Friend 2009), particularly in developing and
Nevertheless, this sector utilizes that vital resources in such underdeveloped countries (Ara et al. 2019; Venkatraman et al.
an unsustainable manner and discharge a massive proportion 2020; Yang et al. 2016). Previous studies showed that the
of ozone harming substances that causes numerous natural, research stream is mostly focused on concept building.
financial, and societal issues from environmental change to Further, few researchers tried the green business approaches
global trends of waste management. As a key sector, for profiling competitiveness and sustainable development
manufacturing sectors could have not only resolved the eco- concept. There is minimal research work found that provides
nomic security of many nations but can also directly affect the an insightful overview of green business strategies in terms of
living standard of any countries; moreover, gross domestic RMG sectors of Bangladesh. However, there is a lack of re-
product (GDP) mostly depends on it (Li and Seo 2019). In search that can demonstrate a detailed framework within the
terms of profiling sustainable development, manufacturing context of Bangladeshi RMG sectors. It is necessary to under-
sectors could play a crucial role as it supplies products that stand the crucial elements that help the industry to implement
are essential for fulfilling the ever-increasing demand of civ- green business approaches. It is also essential how these com-
ilization. This perception has brought a novel business model ponents could be integrated for easy adoption of these ap-
commonly acknowledged as a green business (GB) approach. proaches. Further, it becomes pertinent to distinguish how
The challenge of sustaining the progression of manufactur- these profound approaches of green business can provide a
ing sectors without damaging the atmosphere can be ad- better stand towards sustainable development and competi-
dressed by the application of green approaches, systems, tac- tiveness. The prime objective of this research is to present a
tics, and practices, which can produce goods while taking theoretical viewpoint of the green business strategy towards
environment, economy, and society into concentration achieving sustainable development and competitiveness as
(Hasan et al. 2019; Rashid et al. 2019). Hence, the well as presenting a framework for adopting green strategies.
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The rest of the paper is designed as follows: “Green busi- organization. Throughout this alliance, environmental regula-
ness strategy of RMG sector in Bangladesh” presents a de- tions and value containment also play an essential and con-
tailed overview of the RMG sector of Bangladesh, including structive regulating function. Furthermore, the identification
the definition of green business. Competitiveness and sustain- of sustainable merchandise often complements the green busi-
able development are discussed thoroughly in “Relationship ness model, while the policy of cost savings is also
between competitive advantage and sustainable development implemented.
in terms of green business strategy.” In “Proposed conceptual Nowadays, advantage of green business draws much more
framework,” the study focused on proposing a detailed frame- attention since this emerging practice helps to keep the envi-
work that can facilitate the green business tactics from a ronment safe and helps to avoid the distressful effects of eco-
Bangladeshi RMG industry prospective. The outcomes and logical destruction. When discussing green business, there are
significance of this study are presented in “Outcomes and numerous advantages like environment-friendly, preservation
significance of this study.” Whereas “Conclusions and recom- of ecological assets, and the green reputation of products and
mendations” represents the conclusions and recommendations services in the market. There is a reliable connection between
of the study. monetary, administrative, and financial advantages. Wiese
et al. (2015) suggested executing the green and lean business
model as a strategy for gaining competitive advantage by cost
Green business strategy of RMG sector savings, which amplify sustainable profitability. For gaining
in Bangladesh progressively advanced and goal-oriented sustainable activi-
ties, dynamic corporations nowadays increase the investment
Definitions of green business in green transitions. Ecological ventures are always welcomed
by society, that is why executives need to identify the potential
Green business (GB) maintains the sustainability of eco- markets to gain a competitive advantage, favoring both orga-
friendly, financial, and social targets within the production nization and society as a whole (Orsato 2009; Rougier et al.
area and tries to form a strong foundation for all three pillars 2017). Babiak and Trendafilova (2011) provide a “bunch of
of sustainability in business processes. However, what is a data analysis,” which shows a substantial and permissible
green business? What makes a business green? There are sev- motivator that act like a vital reason to rehearse the green
eral definitions of green business that could be traced; some management and environmental CSR. Hartman and Stafford
are more significant than the others. Green business is (1997) showed a way to prevent pressure from the environ-
reflected as a sustainable initiative that upholds the triple bot- mental community, local, and international organizations by
tom line by reducing the adverse effects of its activities on the taking advantage of eco-friendly green strategy with green co-
societal, economic, and environmental procession locally or operational behavior. Though business organizations fre-
globally (Pearce 1994). The thought of green business rose quently derived by economic benefits, it also has a significant
towards the end of the twentieth century in the wake of the effect on the stakeholders, customers, and society in general
regularly expanding open concern about the supportability of (Currin 2011). Durmaz and Yaşar (2016) stated that green
economic expansion. The last decades (1999–2010) have business strategies could help transform the ecological prob-
witnessed a significant increase in concern in the business lem into a business strategy to gain competitive advancement
world, in politics, in the media, and the public at large, related by profiling the business. He also stated that green business is
to climate change and its impact on various fields of activity. helpful for ecology by utilizing environment-friendly re-
Increased knowledge of severe environmental issues influ- sources like energy-efficient technology and wind- and
ences the behavior and perceptions of both individuals and hydro-generated energy with solar-powered electric.
organizations. The concept of green business is generated Along with these, there are several opportunities to facili-
from the emergence of environmental pressures that mainly tate numerous green/environment-friendly products as the as-
focused on eliminating negative environmental impacts sessment of growth not only from the local perspective but
throughout companies’ activities (Awan et al. 2017). From also internationally. Bansal and Roth (2000b) demonstrated
product design through raw materials selection, via production the way by which any business organization maintains healthy
facilities, across the marketing and branding within financial competition for securing a significant market share. They also
strategy with technological advancement to waste disposal, all suggested green-oriented business strategies to motivate the
the conventional business sectors are covered by the green customers, facilitate the cost minimization, catch public atten-
strategy. More importantly, this social and eco-friendly busi- tion, and hold the positions of path showers. They further
ness exercise does not sacrifice economic growth (Kanchan expressed that organizations will embrace feasible green prac-
et al. 2015). In his article, Whiteman (2011) demonstrated that tices only if this mindful strategy satisfies the triple bottom
green business strategy contains substantial and conclusive line of a firm. By utilizing green-oriented technologies, a busi-
interrelationship with the financial performance of the ness firm can gain a superior position against the rival
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powered by lessening the cost during the design, procurement, a curtail part for the sectors to maintain the environment and
production, packaging, and marketing phases (Karagülle workplace safety-security in top priority (Sobhani et al. 2009).
2012). Moreover, the USA and the European Union are shifting
Maintaining a naturally sound business does not mean their attention from the Chinese market as the Chinese mar-
protecting nature as a whole; instead, it is additionally kets are no longer favorable with a low-cost worker like
profiting to the industries legitimately. Approaches like Bangladesh. Buyers can influence by the progressions of
reusing the waste, keeping away from pointless utilization of green business practices, and therefore Bangladeshi RMG
crude materials, printing double sides, which can lessen paper sectors can achieve the trust of the buyer. Estimated at $35.5
needs, and reuse and innovation can diminish the expense of billion out of 2017–2018, exports of RMG represented more
the product. A new customer can be attracted by providing than 83% of total exports during the October–December 2018
more and more environmentally safe product, and it may cre- period, securing Bangladesh as the second position of RMG
ate high demand within the marketplace. For maintaining exporter after China (Hoque and Clarke 2013). This sector
competitive stand and keep organizations profitability at the utilizes more than 6 million individuals, around 80% of whom
top, these green approaches can act as a vital tactic for busi- are ladies from rural networks. Because of high worker cost
ness organizations to enjoy a considerable advantage. and increasing obligatory confronting the significant con-
Environmental, societal, and economical supportability are tenders like China, Vietnam, Cambodia, and Myanmar,
well known as the triple bottom line, which forces a business Bangladeshi RMG sectors are now holding a leading place
organization to think beyond profits. However, a benefit is one with the target of $50 billion exports by 2021. Given the scale,
of the primary objectives of any business organization; with- there is no doubt that crucial planning to gain the anticipated
out profits, there will be no business organization. The green growth for this industry is a clear reflection of Bangladesh’s
business provides business organizations such a power by goal to achieve middle-income country status. For achieving
which it can promote the ecological and societal supportability one of the most anticipated goals of the country’s millennium
along with economic sustainability. development to secure the position within the middle-income
countries, there is no doubt that the systematic planning for
this crucial sector is unavoidable.
Overview of green business strategy within RMG While the development figures are empowering,
sectors in Bangladesh Bangladesh can guarantee a significantly higher offer of the
worldwide clothing market, which will cross the $2 trillion
Bangladesh was referred to a basket with no bottom since her imprint by 2025 from the present estimation of $1.9 trillion.
independence in 1971, and it was said that it was an indicator In any case, specialists caution that notwithstanding tending
of a disaster. People used to think of the RMG sector in towards environmental effects with labor security and safety
Bangladesh as a site of slavery, child labor, and as a represen- issues, the industry ought to set itself up to address those
tative of small businesses. However, currently, the RMG sec- issues for maintaining the efficient development of this ever
tors are booming at high speed and already become one of the quickly extending production. Without blending the nation’s
most crucial sectors for earning foreign currency. financial aspirations with natural concerns, economic growth
Nevertheless, its economic expansion is now being a massive will not be sustainable. Though the government of
cause for ecological degradations. The time is ripe for the Bangladesh now recognizes the significance of environmental
nation to follow the direction of sustainable development, protection, there is still a lack of practices that can quantify the
which typically means implementing policies and adopting approaches moving forward. Various private sectors in the
strategies and tactics to render the growth of the economy RMG industry are gradually, however, relentlessly pushing
and at the same time enhance the viewpoints of society and towards “becoming environmentally viable business” by ad-
environment as a whole approach (Khan 2017). Bangladesh vancing green business strategies and inspiring the business
Bureau of Statistics provided an estimation that Bangladesh’s people to welcome the environment-friendly business model
economy is grown by 7.86% in FY18 (the fiscal year 2018), and implement green manufacturing practices. The worldwide
up from 7.28% in FY17 (the fiscal year 2018), which repre- demand for green-oriented products and services creates enor-
sents an averaging over 6% a year for the past decade (Star mous pressure and motivates the factories to embrace more
Business Report 2018). By providing low-cost and premium- environmentally friendly green business and production sys-
quality manufacturing services, Bangladesh gains impressive tems that are merely satisfying the standard. Where the buyers
economic growth while using its vibrant ready-made garment asking the producer to provide more environment-friendly
(RMG) sector. This also helps Bangladesh to hold a well- products, green business–oriented RMG factories can gain a
reputed stand with a leading position in the global RMG sec- significant competitive advantage since there is a chance to
tor. Since the buyer of Bangladeshi RMG sectors are mostly gain some incentives by delivering the product, which has
Europe- and the US-oriented, the eco-friendly buyer could use lower environmental effects. This strategy can attract more
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and more buyers for the European Union and the USA, where connection between economic developments and create
environmentally friendly products or eco-labeled products values for society and environmental quality. It evolved in
have an enormous demand (Ahammed and Harvey 2004). 1972 when a conference arranged by the UN was held in
Currently, the 28-billion-dollar Bangladeshi RMG sector Stockholm on human-environment orientation. Nevertheless,
has led in the way towards environmental growth by con- there was no proper definition of sustainable development
structing 67 green structures, which are considered as the until 1985 when Brundtland (1985) papers were first released.
highest in the world for availing environment-friendly build- In these reports, this term has been defined as a futuristic
ing. Besides, 13 of Bangladesh’s best green building plants design of development, which is capable of addressing current
won the “Leadership in Energy and Environmental Design generations demand without minimizing the upcoming gener-
(LEED) Green Factory Award” in appreciation by earning ations need and requirements.
“LEED Platinum certification” for their contributions to sus- This notion created a subsequent need for collaborative
tainable development. With the globe’s many pioneering decision-making capabilities of our socio-economic require-
green manufacturers in renewable industrial development, ments with the environment’s natural healing ability.
Bangladesh, the second most crucial ready-made clothing ex- Sustainability is a vibrant method of transition that is compat-
porter, had already assumed a dominant market position. Of ible with potential and current conditions in terms of utiliza-
the 13 plants, “LEED Platinum” is classified while over 280 tion of assets, investment perspective, technology design
plants “United States Green Building Council (USGBC)” guidance, and organizational transition (Rogers et al. 2012).
were recorded for “LEED” approval. The world’s second- According to Turner (1988), the main motto of sustainable
biggest factory in Indonesia is 40, accompanied by India 30 development is maintaining an appropriate level of growth
and Sri Lanka with 10 (Selim 2013). within the economic boundaries without deteriorating the nat-
The practitioners claimed that the cost associated with the ural balancing. In an article, Starke and Brundtland (1990),
short-term development of green strategy could be satisfied in stated a concept that aims to identify “honest and honest’
the long-term by providing resource efficiency and minimiz- growth is sustainable development. Since the environment is
ing cost. The most challenging parts of these approaches are the foundation for all financial exercise and for existence it-
the factories have to invest without expecting an immediate self, they indicate that” it is certainly appropriate for the work-
outcome, which could consider as some extra expenditure. place to continue with reliability and dignity for future gener-
However, it can be maintained successfully if the organization ations. The concept of three interdependent components of
can negotiate with the elite class buyers to gain some incen- sustainable development, which are environmental, societal,
tives for upholding the green business strategy. In any case, and economical, covers most aspects of sustainable develop-
this fills in as an open door for industry pioneers to gain ment (Fig. 1).
showcase their stand towards environmental protection and Businesses cannot be isolated from nature (Spinello 2019).
exploit Bangladesh’s capacity to pull in higher offers of the From raw materials through the production facilities to local
worldwide market in RMG. It is the ideal time for the RMG waste disposal, all the necessary resources are supplied by
business to lead the pack in further putting resources into nature. Any corporate organization’s fundamental goal is to
greening measures, which can be an impetus to the business’ run its business within more extended periods, and business
development aspirations and can likewise lift Bangladesh’s leaders must use the sustainable development strategy to attain
commitment to bringing down carbon outflow. Eventually, this goal. Most significantly, it is necessary to take into ac-
an agreement on green transition focused on a flexible com- count the enhancement and growth of the situation for inhab-
bination of opportunities based on the socio-political- itants, where, along with all the family members, the man-
economic adaptability of the country would have been the best agers, workers, suppliers, and even the potential customers
way to overcome apart from the unsustainable direction to live. The RMG organization needs to keep a healthy supply
productivity expansion in Bangladesh. of natural resources for both current and future aspects. The
relationship and trust with the supplier should be used as a
basis for this critical stage. Those will assist RMG company to
Relationship between competitive advantage deal with ever-increasing product demand and address con-
and sustainable development in terms sumer expectations. Besides the use of green business strate-
of green business strategy gy, RMG firm can create pressure for attaining sustainability
within the interconnected sector.
Sustainable development
Competitiveness
Sustainability is the term selected to cross the development of
the environmental gap without minimizing economic benefit. The identification of interrelationship between attaining
The principles of sustainable development examine the environment-friendly approaches and competitiveness is
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Fig. 1 The objectives of


sustainable development (Source:
Authors’ own research)

now holding the central area of interest among business re- competitive advantage are developed by Porter (1980); in this
searchers, police builders, and the international community study, Porter stated that business origination could have
(Li et al. 2017, p. 100; Papadas et al. 2019). Therefore, busi- gained competitiveness by availing low-cost products or adopt
ness organizations are influenced to implement an effective dynamic approaches that can facilitate the consumers with
method for defending the environment from the adverse ef- unique values. These green business strategies could be one
fects of their business activities (Palmer and Truong 2017; of the best weapons for availing the competitive advantages
Shen and Li 2019). However, environmental aspects are often and facilitate the betterment of the environment and society
sacrificed in favor of profitability (Ghassim and Bogers 2019; (Azzone and Bertelè 1994; Cheng et al. 2019; Schroeder and
May Tzuc et al. 2020). While social expectation and ecolog- Robinson 2010). Natural environments will be a significant
ical principles can force business organizations to develop battleground for economic competition in this generation and
more environmentally friendly management (Klein et al. the coming generation. Energy, natural resources, disposal of
2020), some firms have little motivation to adopt environmen- harmful materials, emissions of greenhouse gas, and environ-
tal management practices, which they either neglect or adopt mental problems can provide profitable possibilities and
only to meet environmental standard (Noordewier and Lucas change competitive landscapes in many sectors (Naz et al.
2019). As a result, those firms might not be accomplished of 2019). Managers and regulators in the current era focus on
grabbing the economic advantage that is linked with eco- the actual expenditure of damage control and restoration of
friendly management due to a strong focus on immediate natural exploitation. Through managing adverse effects on the
profit or negligence of environmental management tactics environmental circumstances, businesses supposed to gain a
(Udokporo et al. 2020). suitable position by using this can achieve a significant com-
In contrast, other firms go beyond regulation and evaluate petitive advantage over the rivals (Junquera and del Brío
proactive environmental strategies (Vishwakarma et al. 2018) 2012). They need to capitalize mostly on the opportunity cost
in order to increase their competitiveness, which can further of pollution by reducing the wastage of resource and proper
improve those firms’ economic sustainability (Abbas 2020; use of recycled materials and energy as well as naturally sound
Onubi et al. 2020). Competitive advantage is a set of abilities office system, which further leads to the reduced product price
that give businesses leverage over their competition. It allows for the client. By doing all these, a green-oriented business
businesses to offer their potential customers with superior val- organization can enjoy the advantages of environmentally
ue than their competitors (White 2019). Two generic types of friendly practices and competitiveness. Green-oriented
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business organizations can enjoy the advantages in many its development and broadens the integrating structures for its
ways compared with competitors. It can assist companies with performance. For delivering more significant efficiency, busi-
cost-reduction options by minimizing the use of raw materials, ness organizations can achieve their expected goals (Evans
reducing energy consumption, carbon emissions, natural re- et al. 2017). A green organization is a system that consists of
sources, and even with government financial support, which process and structural combination for economic perfor-
further drive them to obtain low-cost product inventory that mance, derived by resources and material in linkage with the
attracts more buyers (Porter and Linde 2000). ecological well-being (Hart and Milstein 2003).
Since there are many attributes of competitive advantage, it The framework proposed in this present study is based on
directly obtained from minimizing cost as well as boosted the context of a developing country like Bangladesh. The
revenues from the implementation of green technologies structure is amplifying the green business strategy of RMG
(Shrivastava 1995). In addition to the price benefits, the sectors based on the willingness to contribute to the develop-
RMG business can enjoy the enhanced environmental images ment of societal, ecological, and economic sustainability for
that provide a boost in branding opportunities by maintaining enjoying the competitive advantages. The framework has
its sustainable ecological conditions and maximize the use of contained three fundamental aspects, namely, green business
its assets. Eco-friendly practices can uphold the image of the principles, product and process design, system identification,
RMG firms, which can help holds a better reputation than the and interaction between those related systems; these three
rivals. Nevertheless, public reputation and green image are items are interrelated with each other. These three dimensions
always considered essential elements to gain a competitive (“Idealization,” “Strategic planning,” and “Realization”) are
advantage, and green businesses can assess this effective busi- derived by the first part (“Introduction” and “Green business
ness strategy to draw broader attention from potential cus- strategy of RMG sector in Bangladesh”) of the model, which
tomers. Providing customers with a green brand means act like preparation stage (system definition and green busi-
distinguishing and creating competitive value, which can ness principle) and modifying by “Relationship between com-
boost up the economic growth of a firm. Lack of economic petitive advantage and sustainable development in terms of
efficiency can lead to pollution that confronts green eco- green business strategy” (Determination of economic, socie-
friendly practices and reduce the power of competitiveness. tal, and environmental metrics for system evaluation). The
Moreover, the competitiveness of a firm largely depends on increased sensing capacity shows a better understanding of
a courtier’s law and regulation, especially for RMG firms what is faced by the shareholders and what characteristics will
because the majority of the buyers of the RMG industry are contribute to a distinct edge (from the material system)?
from developed countries. For example, the EU and the USA Idealization phase will set the idea and allocate all the re-
consistently created pressure for RMG firms and set some sources within aspects of formulated this idea into a strategic
shorts of law enforcement for assessing environment- plan. The strategic planning phase is designed to identify ca-
friendly practices, which may affect the competitiveness of pacities that suit opportunities, establishes policies and recom-
Bangladeshi RMG organizations. Since the USA and EU hold mendations that allow the effective and productive use of or-
a total of 90% buyer share of Bangladeshi ready-made gar- ganizations capital, defines business goals and targets, and
ment industry. Those notions can promote a massive aware- contributes to resources and property. It incorporates the com-
ness among the RMG firms in Bangladesh, and as a result, petencies, institutional processes, and procedures for the fur-
now Bangladesh has the second-highest number of green ther execution of the necessary tasks under a given value
RMG factories in the world, as mentioned earlier. proposition. In the realization phase, all the components of
the framework will be checked whether all the strategic plan-
ning and resources are working correctly or not and where
Proposed conceptual framework necessary modification will be carried out. The manufacturing
companies can be continually and systematically transformed
In the modern era, business organizations are facing tremen- concerning the desired ends of sustainability by
dous pressure from many influential bodies to transform their operationalizing individual elements and managing their inti-
core business strategy for being more environment-friendly. mate relationships. In the following part, the relationships be-
However, for acting on the green approach, the continuous tween different components of the framework are portrayed.
transformation is unavoidable, and usually, it creates contested
problems for translating this renewal process of the business Idealization
intent (Hendrickx 2015). For a better understanding of the
transformation process, the nature and the purpose of the firm In addition to meeting the ever-increasing demands of indus-
should be grasped as a starting point, which can assess the try and community, green strategies should not only be envi-
transformation process from a functional perspective. A ronmentally friendly but should also offer incentives for the
company’s primary aim is to achieve the “growth” that leads availing the corporate growth. An idealization process is a
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process that is focused on filling the hollow approaches to Cloughton 2020; Globocnik et al. 2019; Judge and
corporate growth by evaluating the potentiality of green entre- Douglas 1998; Posas 2011), research and practice strug-
preneurship (Jänicke 2012). According to Khan (2017), ide- gle to integrate the two activities (Quazi 2001; Teixeira
alization is a process of a compiled framework that can change and Canciglieri Junior 2019). The proposed framework
or renew the production processes to establish for assessing is designed by covering the strategic planning, the in-
the operation in such a way that can reduce the ecological volvement of moderating culture of organizations, and
impact. The green entrepreneurship approach had profound the relationships of whole resources of organizations.
effects on the forms of performance of the company based These parts also derived by describing the accountabil-
on a complicated philosophy of idealized capabilities (Chan ity and responsibilities and founding improved structural
et al. 2016). Many companies are interested not only in yield framework, information dissemination mechanism, and
reduction and threat management but also in wealth creation modern operational approaches.
measures in terms of idealizing the sustainable development
strategies into their core business process (Bansal and Roth Realization
2000a; Dangelico et al. 2017). Businesses in the modern
world have become increasingly interested in encouraging In terms of green business, the realization is acted pros-
new ideas for assessing greater environmental protections pects of adjusting and checking mechanism of the man-
and stakeholders’ (consumers, society, and business itself) agement (Khan 2017; Ray et al. 2004), which generally
satisfaction (Chang and Yu 2001; Fernando et al. 2019). emphasizes the previous two parts (idealizations and stra-
This nation mostly quantifies the ability to modify the existing tegic planning). It will also assess the top management to
idea with new ideas, which has created a significant impact in take the progressions and take necessary initiatives where
designing adaptive strategic plan and realizations of the pro- necessary. The proactive design of the realization phase
found opportunities of capturing green values (Bowen and will provide a comprehensive overview of the whole
Hepburn 2014; Lin et al. 2011; Zhu et al. 2020). In the pro- framework including how this strategic planning will per-
posed framework (Fig. 2), the idealization process derived two form according to the main idea (achieving three pillars of
dimensions: (a) system definition and (b) green business prin- sustainability) and how future frameworks and mecha-
ciples. The system definition is covered by answering the nisms will be interconnected as well as it will collaborate
possible criteria and the motivations for transforming the tra- with broader perspectives of achieving optimal yields
ditional business strategy into a more environmentally friend- (sustainable development). To maintain a smooth transi-
ly business. The green business principle is covered by the tion of realization phase for green business approach,
extent of the green policies that the organizations are going three essential areas, namely, green design and efficient
to take, for example, energy-efficiency/minimum power, op- use of raw materials, green manufacturing and green sup-
erational safety, personal health, proper utilization of cost, and plier selection, and green packaging and shipping, must
waste management. be addressed during the design/development phase (Beng
and Omar 2014). However, the application of exploration
Strategic planning techniques in analyzing and improving business processes
realization is an emergent theme in literature (Santos and
The concept of sustainable development needs to be Alves 2017). Since the previous study of green business
incorporated into the policies and processes of a busi- shows that there is a limited number of study could be
ness if it is trying to follow green business principles. traced, that can emphasize the realization phases (Mehalik
However, organizations need not implement new man- et al. 2008), which provide an innovative scope of re-
agement methods necessarily, instead of the refining and search. The present paper suggests a model for availing
orienting the existing management methods towards the hollow approaches of realization in terms of green
more environmentally friendly tactics. The design of a business approaches, by adopting a decomposition meth-
functional environmental sustainability planning system odology proposed by Ang (1999) that serves as a roadmap
involves balancing strategic thinking and leadership. for manufacturers order to enhance their environmental
Incorporated into corporate strategy and even into mon- policies by recommending the critical issues and relevant
itoring and communication systems should be a princi- factors. This phases (realization) is mainly covered the
ple for tackling climate change. A strategy for improve- productivity, action plans, and operational consequences
ments to the processing system is necessary to meet the of the whole frameworks for accomplishing the prime
goals of environmental sustainability (McPherson et al. goals of the organization. Further, this phase handles the
2019). Although there is increasing concentration in the profound relationship between frameworks and systems
connection between strategic planning and business (including operations, resources, and expertise) from the
model development (idealization) (Barbosa et al. 2020; practical viewpoint so that all shareholders can achieve
Environ Sci Pollut Res

Fig. 2 Structural representation


of the proposed framework

sustainable growth. This uses an existing proprietary per- viewpoint. Some authors tried to evaluate the model transition
sonalized knowledge, which enables additional data to be for green business, but those are primely covered by very broad
used from a range of sources on various aspects of the prospective (Kirchhoff 2000; Mokhlesian and Holmén 2012;
industry. Sommer 2012). Some researcher provides a narrow or single
indicators approach for stating the green business model
(Abuzeinab and Arif 2014; Jakobi et al. 2016; Nair and
Outcomes and significance of this study Paulose 2014). Though some researchers tried to address the
emergence of the framework for availing green business, mostly
After an in-depth literature study, this paper found a close con- neglected the structural representation of the green business
nection between green business strategy and competitiveness in framework (Cheng et al. 2018; Dubey et al. 2017; Gao et al.
terms of ready-made garment industries. Which is quite similar to 2019; Leonidou et al. 2017).
some of the research within this specific topic (Bhavani and Moreover, this study compiles a bunch of definitions in the
Tendulkar 2001; Ferdousi and Ahmed 2009; Li and Cai 2008). context of green business, which could be beneficial for future
The study also found a close interrelationship between green researchers, and the interrelationship between competitiveness
business approaches and sustainable developments, as stated by and sustainable development in the context of RMG sectors
Batu and Kusumawardhani (2018), Tran et al. (2018), and Chipo will also help the future researcher with a better viewpoint of
et al. (2018). Moreover, the study presents a structural framework this emerging context. The framework proposed in this study
for adopting green business strategy within the context of will be helpful for the RMG sector to follow a structured way
Bangladeshi RMG sectors. The three significant components of to adopt a green-oriented strategy as it designed a clear path-
the proposed framework are compiled (idealization, strategic way by covering a well-structured hierarchy (idealization,
planning, and realization) within the context of an operational strategic planning, and realization).
Environ Sci Pollut Res

Conclusions and recommendations help the business to supply the low-cost product, uphold
the corporate image, attain political goodwill, tax rebate
RMG companies are now facing tremendous pressure from facilities, and, most importantly, satisfy the modern cus-
increasing environmental concerns to integrate their business tomer’s demands.
strategies with ecological governance. Furthermore, organiza- & By accepting this innovative strategy of green into the core
tions can create more market advantages than rivals if they can business processes, Bangladeshi RMG can enlighten the
effectively tackle environmental challenges. The critical com- goodies of sustainable development not only at the nation-
petitive role of green-oriented RMG companies is to gain al level but also in the global perspective. Green business
some shorts of latent opportunities along with the cost mini- and competitiveness have a direct correlation, and we can-
mization and optimum use of natural resources, which can not but utilize this modern, innovative, and noteworthy
assess the organization for creating values for their prospec- tactics to compete with China, Vietnam, and India.
tive buyers. As Bangladeshi RMG sectors are expanding rap- & Ultimately, the framework is developed to provide a
idly, nowadays, awareness of environmental problems is hold- streamlined and inclusive solution that can reliably gener-
ing much more attention. Economic circumstances within the ate positive improvements and achieve broad goals.
country’s sustainable growth policy and security are given a & From the operational viewpoint and conceptual relations,
lot more attention by industry pioneers, notably the “LEEDs” three components, “idealization,” “strategic planning,”
certified and global firms in Bangladesh now increasing too. and “realization” are portrayed profoundly.
With a greater focus on strategic targets, it anticipated that
long-term initiatives and investment would substitute short- The proposed framework, however, not yet tested with
term plans and procedures. The development of “greener” managerial methods, processes, or resources, and there is an
sectors can lead by setting uncompromising legislation and evolving need for further clarification of this approach with
more responsible approaches. This work attempted to address some questionnaire surveys for measuring the actual impacts.
the research gap first by identifying the need for a systemic Moreover, in the current context, more research needs to ad-
and comprehensive description of the problem and demon- dressed and checked whether the proposed framework could
strated a potential solution (proposed framework) that is high- meet under different industrial contexts. This insight should
ly viable and that can incorporate sustainability principles into reveal their analytical function for incorporating environmen-
development strategies. Some specific assumption in this tal standards while solving manufacturing-related issues. This
study is portrayed below: study expects that Bangladeshi RMG will grab the most ex-
ceptional opportunity of maintaining a competitive edge in
& Most of the businesses generally disregard the enormous this ever-growing population’s demands with environmental
expenses of unsustainable practices, which continuously protection and makes the world a better place only for this
create threats on societal, ecological, and economic struc- present generation but also for our future generation.
ture. Like most other regions of the globe, South Asian
countries are witnessing several devastating natural ca- Acknowledgments The authors acknowledge the anonymous reviewers
for their contribution to improve the manuscript.
lamities like drought, cyclones, tornados, and many other
natural calamities. Bhola cyclone (1970), Cyclone Sidr
Funding information This study was funded by the National Natural
(2007), Cyclone Aila (2009), Cyclone Roanu (2016), Science Foundation of China (Grant No: 71973105).
and Cyclone Fani (2019) in Bangladesh show how dra-
matic and devastating effects on the countries growth Compliance with ethical standards
leads by high transition expenses.
& Thus, maintaining a better future and mitigating the dev- Conflict of interest The authors declare that they have no conflict of
astating tread of climate change, ozone depletion, and interest.
waste disposal, business world should be more conscious
and more responsible by adopting green strategies. If References
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