1015/23, 10:40 PM ‘Operations Management Qprresiouschacter Chapter 2 Operations Management ‘Business operations are atthe heat of sustainability. You cannot became a sstinabe business without honesty and critically analyzing your current operstions and considering the changes rnocesary to move toward sustainability: In thi chapter, we wil explain the three dimension o sustanabilty nd wil provide examples of busieses focused on each disensan. Ip Chapter 10 ‘Sucsiable Business Case Example ofthis book, we provide numerous examples of ustaiable business practices, The examples her and in Chapter 10 “Sustainable Business: Case Hxamsles" wl demonstete the variety of ways in which busines ean pursue sstanabiy 2.1 Sustainable Business Recall fom Chapter "Inteaustinn ha a sistainablebasines sone that sconesrned abot the social environmental, and economic impact associated wth current and flare operations and the ability ofthe business to meet present needs whe ensuring its and others lng trm survival, "eal, the sustainable business eck to havea postive socal impact, environmental impact and economic mpc. Taken tpsther, a business contebuton ta social jute, envisonmental quay, nd esonomie prosperity is colctivly refered toa the ripe bottm line lkngton (997) The ne soil environmental, economic) is sometimes ferred to as people, planet, (Once considered the purview of governments and nonprofit organizations (uch as Helfer International lobal leader in developing stainable commniis), businesses ae inreasngly beng called upon to adres sell envrcomental, nd ecanorie aes. Rethinking the business in terms of ts tiple bottom ine impact and performance (socal, envionmestal, and economi) is «rte in establishing the foundation for sustainable business. This requires shi away rom ‘hinking ofa business only in terms ofits Snancil profit to sharcholders, While financial profits ocesary for survival the sustainable business applies a broader view ofthe business, ts responetiites, ands performance, Therefore he ssi of basins ia doevved in ems of ‘roe iterlated and interconnected dimensions: social, envieonment, and eonomie Sustainable Economic Business Interests Social Interests 2.2 Social Impact Theft dimenlon of a sustainable busines sts performance relative to societies and sci jute, often refereed to as social impact. While there is no easy solution for reducing soil cost wile linpeoving corporat performance and profitbiity, socal impact should not be overloaked. The social impact of business operations is viewed both interaly and externally and ensures thatthe business entire operations across the supply chain ae socially responsible an etic. -ntps:itsaylordotog github oltext_a-primer-on-sustainable-businessis04-oparations-management hl 191015/23, 10:40 PM ‘Operations Management Jetraly the scl impact fuses) revs Chapter employment with the busines. The sus ‘he business practice and ples related to working conditions diversi ing, opportunities foradvancemeat for women and morte, lac of discrimination, and the provision of affordable heath care and other necessary benefits, In. ation sol impact includes wages, breaks, adherence tw employment laws, safety, training, and numarou other specif labor practins. Finally, seal resultofthe business's sctvle. These are only sample ofthe ny items considered within the socal imptof a businss's operations. Many of thse interna soca impucts are discussed in greater detail in Chapter Human Resources" impactneudes the impact on the lea publi and socal serves sector a “Thesustninable snes not oly expecte to treat its emplyeesin responsible manner bt also ensure that iis engage with suppliers that share sina values. That is, sustalnable busines is tlso concerned forthe labor practices and working conditions of companies within ts supply chain to ensure that he supplies and produ perchases were produced responsibly and ethically Sustainable businesses wll ke resonable efforts to ensure they ere not purchasing fom suppliers engaged in the use of sweatshops child labor, or other human rights abuses Tn some cases, businesses have worked diligently with supplier to comet these problems, wie in ater eases businesses have chosen to change suppliers ‘When soureing product from ouside an indussalied county, some sustainable businesses wll seek For Tre products, Fut Trade cersifcation verifies that ving wages were pal to producers a hat se ad eth employment practices were wed in the eration of products Many sgricultural goods and handiraftitoms ae Fir Trade certified Im edition to employment practi, social impact refers to respet of thers. This ental the respect of individuals ad other businesses encountered oclly an around the word, A sustainable business vel nae ressonable efoto ensue polis, practices, products, advertising, logo or mast, nd other aspects othe business are not offensive or disrespect to cients inthe global markt, See ‘Note. “"Tipe to Ineesse Your Socal pat” for ips om how to inerease the sci mp of your business, Tips to Increase Your Social Impact Have you considered where your coffe chocolate, clothing, or ater products eome from andthe conditions under which they were produced? Soil impacts one ofthe thee pillars of a snainahle busines, util can be dic to define nd even more dic Lo rack and measure [A sostanabe business shoul consider the social mpac of ts business operations on employes, ‘hose employed throughout the supply chain, and onthe community. Sow ean abusiness begin to maximize cil impact? Here are some practices that wil el rete postive socal 1. UN Global Compt: Review the 10 pnp of he ited Nations Global Compact and bide by them, whether or not the busines becomes a signatory 2. Fae Trade: Seek out opportunities to purchase Fur Trade products for your busines air Trade products ensure that Thou who pradaced the product in developing counties were paid a fair wage under humane working conditions. You can purchase Fair Trade lothing, handicrafts, coffee coca, soar, ta, bananas, honey ation, wine res ft, ‘ower, and other produet, ‘Company polis and practises: Consider the social mpac of your company’s pois an prstice on employees (such health care coverage, educalionl opportuities, and worklile balance), 4, Philanthropy: aluate the impact of our corporate giving prosrams Find opportunites that re strategically elated to your core busines, and focus your phanthropy in those ares, benefising both the community and the busines. 5 Supply chan: Understand the conditions under whiek the products and supplies you purchase were produced; work with supplier to achiev transparency throughout the supply ntps:itsaylordotog github oltext_a-primer-on-sustainable-businessis04-oparations-management hl Qasetcat1015/23, 10:40 PM ‘Operations Management ii tc He Wests pou Quests ‘Sweatshop Watch, International companies, and industries known for human right abuses that ould be occuring within pour soppy chain, 6, Labor First, make ure your busines fellows polices and practices that are firto its abor {ores good place to starts SAB000 and the Internationa Labour Standards review and understand the standards, whether or not your busines seeks corifation; support fcedom of association, collective bargaining, and nondisrimination in your own place of business 3s well swith supplies in purchasing avid product that wer produced using freed and child labor. Sce Green Ameria’ 9 Cool Ways to Ava Sweatshop, p/n coomamerca ors /prgcams sweatshops whatyaucanda/gsoluays fins look for certification rom Fair Trade Federation, Fait Labor Assocation, Socal Accountability International, RugMark, Vert, Worker Rights Consort, or others hat have ndependenty evaluated labor editions. 2 Sacial esponsibility: Check ont the 20:0 release of the 180 26000 standards on soil esponsilly or companies. ‘TOMS Shoos san example ofa company making 2 commitment to maximize its socal impact. Ia 2006, Bake Myeoske founded TOMS Shoes withthe singular mission of improving theives of children by providing shoes those in nee, Shoes are produced in Argentina and China folowing {sirlabor pretices wile reating minimal environmental impact. Factories are monitored by TOMS nd third-party independent auditors TOMS Shoes aresld caine din ret oeation around the ‘world with the promise thet for eee pir purchased, TOMS will donate a second pairtoa child in ‘etd in Argentina, South Afi, and other loetion around the world. The public is ivied to participate in “shoe drops" around the world and to experience firsthand the socal contribution of TOMS Shoes 2.3 Environmental Impact “The second dimension of sustainable busines i ts contribution to preserving environmental «quality commony refered tos environmental impact. Numerous examples exis of companies reducing eviroameatal costs while simultaneously Improving company performance and Profitability. The envionmental impact ofa business operations is viewed bth internally and esterally The busines that focuses exclosively on ts ersironmental impact rather ha oeutng on ‘he tiple boom line emphasis of sustainable busines, is refered to sagen busines Inlernally the environmental impact ofa business fen refers to practices related 1 se of natural resources, waste toxicity, nd pollution. For manufstaring companies, the eavronmeatal impact «canbe lange and fort re generally made to reduce waste, oct, nd plltion within the ‘manufacturing proces. nternatonsl Organization fr Standardization (180) 14000 sone example of guidelines for fim on environmental practices and educed impact. or service companies, the envzonmental impacts smaller bt should not be overlooked. Consier, forexample, the amount of waste the company pays to have removed chemicals used that eventually find their way int thes, wate, o ground sucha leaning compounds, fertiiers, weed ks, and many others); and pllation created by energy usage, employee commutes or busines travel (Green building (or emodelng i fast growing trend among bsineses that wish tobe more stainable. Green bulding refers to the reduction ofenvimnmenta impact nthe design, construction, and ongoing fe ofthe building. The most requeatl sled standards for green bling are the Leadership in Hnorgy and Environmental Design (LEED) ofthe US. Green Building coun Recycling prorams are often part ofa sutanable business efforts to reduce waste ad toxicity, ‘Sustainable eompenies consider both the purchase of reeled tems fr office supple, furniture, and other neds aswell as eyeing or donating its own unwanted items Wale most companies or offices may already reeyee paper, aluminum cans ad pasticotes, there is itl that eannot be recycled today. For example, lever rss and designers make purses and handbag from rege -ntps:itsaylordotog github oltext_a-primer-on-sustainable-businessis04-oparations-management hl10/5123, 10:40 Px ‘Operations Management sep newpaper teh Pato evo @mnas bags and more, As another example of ‘Arkansas, reyeles cut baby sending ito the nonprofit Matter of Trust to Be woven nt hae mats capable of absorbing chemical oi pl. Many restaurants recy used gzeas through ompenies that purchase "yellow grease” Companies can also recy office furniture ad equipment through lonations to cartale giving programs at schools and other nonprofit, Numerous options exis 10 recycle or donate electronics. fyou cannot find a suitable place to reece or donate your company’s ‘unvanted items, consider tring fo The Freecycle Network, an online sitet giveaway nantes items. Many organizations, such asthe Zero Waste Aliance, help businesses minnie waste and toxicity. Before discarding anything the sustainable business wil exhaust all osibilitis in entifing a second We forthe rode Eternally, the sustainable busine also considers the environmental impact of auplier in terms of serves and products aswell a transportation of goods, A sustainable Business will sek out supplier of ervies and prot tha are environmentally rend. This rests in the purchase of products that produce less waste are Tess tox, and generated the least amount of polation Ia ‘manufsstring and treneporaton, Sstinable businesses opt fr local suppliers, when possible in order to rede the environmental impaet caused thraygh the transportation af ood ‘Additionally, many sustainable busineseseeata green procurement policy, oF environmentally eefere purchasing polcy, a integral ptf thelr operations to give preferential purchasing to products and sorvices tht are most environmentally fondly. An environmentally prefered prchasngpoliey would cover all ypes of products and sevies purchased by the organization For ‘example, his policy woud ive preference to green ceing products that ze ess harm to ‘employees and the envionment; or prefereneto Forest Stewardship Counell (FSC) certified wood rods tht come frm sustainably managed forests. As wih othe attempts to reduce ‘envitonmentalimpet, move toward green procurement can offer cost savings forthe sustainable business Forexample, Lite Rock Ahltic Cb discovered that fit madethe switch to reeled copy per, the company could achieve 108; cost savings, 13% fewer arbun doxde emissons and 35% foer res used when compared tothe previous paper products, See Note 2.6 "Tips to Green Your Oe” for more tips on hve agree your office Tips to Green Your Office Hee are acme les thal your ofc can take to reduce your environmental npc and ave money!) 2. Use mall instead of paper 2. Print and copy on both sides of the pope. 23. Buy reyeled paper with thehhest percentage of rcyeled content 4. Use environmentally endly cleaning supplies and detergents 5 Parchas refilable office products caries, peas, te), 6. Unplug ers not in ute or not used frequently. 7 Switeh to green hosting service for your Web ste, 8, Report and repair water drips ad leaks immediate 19. Start a vanpool or earpol program. 10, reste green team to continue the work toward grening your ofceor workplace “There are two ational considerations in determining e company (and supplies environmental Impact water efficiency ana energy ffiieney, Whea a sustainable business considers water usage ten referred to asa wate fotprint—it is being was to become more ecient by educing its use of fresh water or increasing its recycle rate for water. Fr example, some businesses ave collected eater rom snk, water fountain, shower, dishwater, and washing machine desing (eallctively refered to as greywater systems) or installed eaiwaterelletion systems to rexjle water for sein landscaping, decorative water featores, and to fash tes ‘When 2sustainble business considers energy usage (often refered toa carbon footprint o energy sud, ite seeking ways to became more efficent and redue its energy unge. Through anenerey -ntps:itsaylordotog github oltext_a-primer-on-sustainable-businessis04-oparations-management hl1015/23, 10:40 PM ‘Operations Management ss mn ope s(n cat Qntectcatet become more energy efficient For examy {oom deaying wast. Technologies now allow landil to cap the methane and wei asa renewable energy sure, The generation and consumption of eetrely create emisons of earbon diode (CO,) of carbon miasons, Within industrialized countries «busines emits sguficant amount of carbon ceissions, CO, isone ype of greenhouse gas (GHG) tht contributes o climate change (or an abjetve source of seen information relate tomate change please vs the Web site of the 2007 Nob PeaeePsze winner, Intergovernmenta Pal on Climate Change: bp ww pee. see.) Allother types of greenhouse gases ar measured in thet 00, equivalents; thus reference to «abon isthe standard metric Asa rest ofthe lage energy usage and subsequent lange carbon emiasons (or carbon ftps), many businees are atively engaged in ding ways Lo reduce carbon emissions by becoming more enegy ficient “Theredocsion of earbon emissions, ors redton ofthe business carbon fotprins, is parcalaly appealing to business today partly becuse of the possibilty of aturecarbon tax and the groting carbon trade marke (see Chapter 4"Hnance"). A cazbon taxis enacted and regulated by the rovernment and would ads tax to basinesses based onthe smount of carbon they emit in their daily operation. A carbon emissions trading sytem allows businesses to trade “rei for earban ‘missions, Emissions trading, sometimes refered to asa cap-andetredeeystem, i enacted and reulated bythe government, which determines a maximum amount (or eap fearon emissions permitted by businesoes,Businestes with emissions in excess ofthe cap willbe required to purchase carbon credits (or erbonallowences) om businesses wth emissions less than the cap and tat have exces carbon ere to ell Ther are already several cap-and-trade systems in ples _Buropeon Union missions Trading Scheme. The Evropean Union has hid a mandatory cp-sn3 leadesystem since 2005, the European Union Hmision Trading Scheme tthe largest multinational, mubtsctr system inthe world. New South Wales Grnhouse Gas Reduction Scheme, The New South Wales Greenbouse Gas eduction Scheme began in 2009 andi voluntary eons nitive a Australia. The prime ‘minister of Australia willbe expanding thi sjstem into a mandatory national markt by 2010, New ‘mandatory systems are also being considered by leaders in Japan and Canad ‘New Zealand Emissions Trading Scheme. Te New Zealand Emissions Trading Scheme began in 2009. The scheme isan important component ofthe county's ol tobe carbon neutral by 2020. ‘Kyoto Protocol. Tae Kyoto Prooea isa voluntary multinational, mulsector eap-and-rade system, According tothe eaprand-trade system, companies from 39 Kyoto Protocol participating industri nations have cap onthe amount of greenhouse gases tobe emitted. Companies ae issued carbon permit for thelr portion ofthe allocated emiasion. The ayalem a allowa for ension trading betwoon member countries. Under the Protocol, industrialized nations can eam emissions credits (or «carbon exits) fr investing in lean technology projet in emerging economies Inthe United States, the only industrialized country inthe world that has not ratified the Kyoto Pratool, here isan emerging infastrutue of voluntary cap-and-trade ystems aod emissions trading markets. Tete have rien in reponse to the growing awareness ofthe impet of business tvtes onthe environment aswell asin antiipation ofa fortheoming mandatory system, For example, apart ofthe olution to global warming U.S, President Barack O sna supports the czcaton ofa market value in ecosystem sustainability: Obama for merce (2007) His len woud put forth a goal to reduc carbon emissions to 80% below 1990 levels by 2050, although there 0 current mandatory mechanism in pace to support or enforee thi go Chicago Climate Exchange. The Chicago Climate Exchange (CCN) isthe most wellesablisbed North American voluntary cap-and-trade program. Although voluntary, the CX becomes legaliybinding 2 also trades carbon ftures through the and provides thied-party independent veifcation, The Chicago ciate Futures Exchange -ntps:itsaylordotog github oltext_a-primer-on-sustainable-businessis04-oparations-management hl1015/23, 10:40 PM ‘Operations Management Regional Greenhouse Gas nit.) Previous Chaser @nbeot coments regional mandatory system nthe Unita snd Mid-Atlantic state to cap emisslons and tredecasbon permit, Rather than allocating carbon permit to businesses for fe, the RGGI held its first aeton of permis in September 2008 and ‘ised §39 milion to allow the partpating tate to inves in enerayeffeney and renewable energy ‘echnologes Gardner (2008). RGGI ftures ate traded onthe Chicago Climate Futures Exchange as part of New York Mercnsle Fxchange's new Green Exchane ‘Western Climate Inti. The Wester Climate Initiative is an nitive of several Wester states nd Canadian provinces. Although this partnership native wat eeated in 2007, a cap-and-trade system is being explored but has not yet been implemented Midwestern Greenhouse Gas Reduction Accord. The Midwestern Greenhouse Gas Reduction Accord isan ntiativ of many western sates and the Canadian province of Manitoba. Its joint agreement established in 2007 to make efforts to reduce preehouse gas emissions, hough no cape and-rade system sin place ‘Athi time reduction of carbon emissions is voluntary in the United Sates and none ofthe sforementioned cap-and-trade systems is binding for US, business. Nonetheless mentioned, the possibility of mandatory carbon reductions has led usinsses to analyze energy usage and carbon missions and seek way to redoce usage and emissions. “Theft step to becoming more energy efficent sto conduct an energy audit ofthe company’s ‘ener usage) or earbon footprint analysis (of the companys fl ange of operations) to gather bselie dita reflecting current energy usage and subsequent carbon emlesons from operations. The business ean determine the scope ofthe analysis to be conducted na cazbon fotprint analysis Scope 1 emissons wil measure the direct emissions from energy created onsite through facilities ‘owned by the company. Scope 2 emissions will measure the indirect emissions that esl from the company’s purchase of offsite energy through elitist doesnot own. Scope emissions wll measure other indirect emissions from sour the company dacs not own and which re crete ‘trough business activities required to heep the physical fait in operation, such as employee and ‘siomer commutes, Scope emissions alo conser indirect emissions thrayghont he company's supply chain aa esl of he purehase of serves ad goods required for he busines. ‘The ansyss wil ip the business pinpoint ras Ia which energy usage and ean emisions are high. Depending onthe scope of the analysis, businesses often ind that he carbon footprint is highest inthe areas of energy sonsamptio, wast, ad travel and transportation. The business wil, ‘hen explore alternatives for reducing energy sage and reducing Is carbon emissions. Within the sea of energy consumption, companies may investin energy fficieny improvements or purchase (or generate it own) energy frm renewable sources (a detailed below in he dscusion of renewable energy projects). Within the are of wast, companies wil actively seek ways to reduce their own, vaste as wel asparchate supplies with minimal packaging, Within the area of travel ned transportation, th austainable business ll encourage the use of publi traneportation, telosommatingrde sharing, fesble work schedules, and felafcent cars fr employes. Additonal onsderations are environmentally friendly alternatives for prodet and supply transport, suchas Increased fet efficiency, the use of Second-generation biofuel (or uel created from waste}, and local, sourcing to reduce the number of miles prodvets and soppistravel to reach ther final destination, ‘Once the compenyhas explored lterntives for cazbon emissions redvetons, the company will develop a plan for reducing energy usage and carbon emissions. The earbon reduction strategy (sometimes refered to asa climate change tratgy, late mitigation strategy, o eimate abatement strategy) is detailed plan of measurable specif oa with specif ction that wil he taken and deadlines or achievement. Pogsess then measured egulrly (often annually or biannual) to determine progress toward the goals of reduced energy wage and carbon emissions ‘After abusness has done lit ean to become energy ecient, itften scks to compensate forthe remaining unavoidble carbon emission itis creatng through ts operations. This tp is important lm the plan fhe business goals to become carbon neutral (somatines refered toa er earbun ‘emissions, which isthe elimination of al negative environmental impacts rom carbon emissions -ntps:itsaylordotog github oltext_a-primer-on-sustainable-businessis04-oparations-management hl1015/23, 10:40 PM ‘operations Management cate nh bse) cat @nectconeas emissions a business may purchase car iting through ly operations Carbon offs (sometimes called renewable energy eeriintes or credits (RECT, oon crtifeaes, green ag, oF tadable renewable crtseates are investments renewable enery projets that would nt be possible without the business's investment inthe ost projec. Renewable enery project are projet that create energy fom sources othe than foil fuels, suchas wind, solar, geothermal, methane, kinetic, hydropower, oecan wavs, biomass, o other renewable sources, For example, 2008 ae capturing methane from anal waste and converting ito nergy; subway ystems ar capturing kinetic energy from passengers to generate power; and nightclub dance floor enptue kinetic energy to generate power. Carbon oft projects are nt curently regulated therefore, third-party independent verifation of the project shonld bea pat of any nvetient made fn carbon offeets by austalnabe busines, Addvonally, the ype of projet shouldbe caefily scrutinized before purchasing eabon offsets For example there is controversy over the vale of planting tees as carbon offset ince actual earbon removed frm the aris dependent on many factors, such 8 climate, sol, ype of tree, age of ee, survival rat of saplings, and soon tis worthwhile o read thite-paty independent esearch ‘comparing erbonoffit project and companies, such as those provided by Kells and ‘Bowell Kollmuss and Bowell (2007) Clean Air-Col Planet Clea Ait-Cool Planet (2006). and ober. ‘The state of Colorado and the cy of Sen Francisco have bth create local carbon offset programs to ensure any busines (o individ’) purchase of carbon ofets gosto fad local projets. ‘One ofthe leading example of corporate environmental impact canbe documented through Wal: Mast. In 2005, EO Lee Sot created esustaluabity vison for Wal-Mart and set forth thas ambitious oa: tobe supplied 100% by renewable energy to create zero waste ad to sl sosainable products. According to the company’ atest progres epot, Wal-Mart continues to experiment with he design of tres and its fith- generation protorype store uss up 045% less ery than a typical Supercenter Wal-Mart Sores, ne (2008)-18 2007, the company purchased enough sla power fr 22 facies Wal-Mart Stores, ne (20084). and in 2008 the company prehase enough wind power for 360 stores an facities;Wal-Mart Sores, ne (20088), oth of which wl educe greenhouse ga emiasion. The company has achieved a. 25% efficiency improvement in its trucking fet and hes recently installed smal efficient desl engines that allow parked trackers to turn of he motor engine and se the smaller engine fr heating and coking, This \sexpeted to save the company $25 allon, 100,000 metre tons of arbon emissions, and 10 millon talons of desl uel annually Wal-Mart Stores, Ine (20084). The company is working with ts leucking supper to manufacture more aerodynamic and Gael-eficien tracks, Th company ha aso Introduce sustainability scorecard in working with produc suppllrs to make products with ss packaging waste, These few examples represent ony a fraction ofthe environmental improvements made by Wal-Mart over the past years. See Note 213 "FREE Wave to Benn Greening Your ‘asines" for smal changes you can make to green your business FREE Ways to Begin Greening Your Business Here are some ips forthe busines that wants to start the journey toward green but does not, Juve the funds to implement ig changes, All the tipseow are fret implement bt require a change in Behavior away fom curcen practices, 1 Office paper: Sieh fom 100% virgin fiber paper products to recy paper products For cxample, we recent somparcda business corte office ad copier paper parchaes to eyed of and exper paper. The ntl combination of paper chokes recommended tothe Sent represented a 10% cost savings 19% fewer earbon dioxide emissions and a5% fewer trees sed when compared other previous produit. Other rexyled paper products to consider are le older, hanging Me older, notebook pads, binders, elendas, posters, cxvclopes, busines cards lettered, forms, self-stick notes and anything ele made from sper Savings: cost retions, carbon dioxide emision reuetions (carbon dioxide ‘missions contribute to imate change), and fewer res used. 2. Hand towels: Switch from 100% ving fer band towels to recycled content hand towels. recent comparison fora ellen, we were able oKentify 100% reyeled hand towels that ntps:itsaylordotog github oltext_a-primer-on-sustainable-businessis04-oparations-management hl 191015/23, 10:40 PM ‘Operations Management represented 22% cost savings 7) previous @unas dioxide emissions redvetions, and {Tolle tase: Switch fram 100% veg ber bath ste to recycle content bath tue faa cent comparison fre lien, we were able to dentfy 100% rcyeled hath issu that represented a 46% savings over their current product, Savings cost reductions carbon ‘lard emissons radutions, and ewer tee sed 4 Napkins: Switch rom 100% virgin er napkins to reeled content napkin. Ina tecent ‘comparison for a ient, we were able odentty 100% rege napkins that represented 108% cost savings over thei current produc. Saving: cost reductions, esa daxide cmisions reductions, and fower tress sed, 5 Facial lsue: Switch fom 100% virgin ibertisue a reyclel content tues. In a ecent comparison or aint, we were able detify 100% rege tisues hat represented 4% cast savings over thelr urrent product. Savings cost reduetions carbon dioxide emissions reductions, and fewer ees used 6 Lighting: Tor off lights when notin use, and when replacing, use more energy-efficient lighting, uch compact uorescent bubs of LED lighting, Savings ean Delp reduce energy bill 2 Hetronics nd office equipment Tur ff when notin use, and when purchasing, make sare Is ENERGY STAR certified. Dispose ofa electrons though a reeyling program (mast wl take old electronics for recyelng). Ol office electronics, furniture, and equipment «an also goto donation programs throug publi schools, Habit for Humanity ReSare oF other worthy causes, Savings can help eduse energy bills, caa reduce the amount of waste vou pay tohavesemove, and will keep dangerous chemicals tof lanl, ‘8. Reeling: Check wit your ct sanitation department (or check he Eavthon search engine) to se what en be eeyld and where it canbe recyled. Common tems for reeeing include sluminom cans, as, paper plastic ineudng plastic bags, cardboard, Styrofoam packaging (styrofom food eontaners are not often recycled), electronic, cooking ol or grease, printer and inks cates, nd many other items Savings an rede the amount of waste you sy to have removed 9. Employee coffe mugs or drink cups: Encourage employees to bring revs ie oes mugs ot Arik ous (an plates ad utensil) rather than asing disposables, Savings can reduce the ‘number of disposable items you purchase and can reduce the amouat of waste you pay to Inve eve 1. Ofc supplies: Use receabl or refillable items, such as eater cartidges, pens, CD and DVD diss, batterie, and oer products. Savings: ca help reduc the amount of office tems needing replacement and ca rece the emountof waste you py lo have rersovd 21 Piiating and copying: For printing, bein by resetting the deiuls font sizeon al computers to 10 01, feasible, and resetting te efelt margin to 0.8 oF 09. By changing the default ‘margin settings to 0.75 on university computers, Penn State found that they ould sve per year over $122,000 in paper costs, 4,142 rams of paper, 4 tons of waste, and 72 ares of forest, Use your eompater and email program as your fling stem cates than printing hard ‘copes, Use printer management software program, such as GrenPrint or PapesCut, tha ilar you to wasted paper (suchas printing a sheet with one or two lines) Learn tse online forms and PDF ls, Nex lime you send ota printing ab select agen printing company. For copying, change the default settings on the copy machine from one-sided to ‘o-sided copies. By tii a combination of sxestions, students at the Universi of Arhansts t Lite Rock found tha the College of Business could save 99% more per yarn paper and ink costs. Savings can reduce the amount of paper you buy, can reduce the amount ‘of waste you pay to have removed, and an rece your company’s earbon emissions 12, Cleaning supplies: Use green leaning products or groan cleaning servic. Savings there ‘may note any financial savings here, but you are taking steps toward healthier indoor air «qusliy, nd your leaning methods wil be releasing fever toxin into the environment 1, Web ite: Switch toa green or carbon neutral Web hos provider. Tete are many Web hast providers valle that are competitively priced Savings: cost savings and educed carbon 14. Promotional procs: Nex ime you purchase promotional products for your busines select those that are envionment fren are made fom secyced material canbe eyed, or those that all thre ofthese criteria, sch as SIG water bates, Savings! ere may ccvironmentaly friendly and communicating that message to your custome be any nancial savings here, but you are aking steps toward being, ntps:ifsaylordotog github oltext_a-primer-on-sustainable-businessis04-oparations-management hlsss, 040 peor arama cmenenovcraonseny ro) “even ise eer Tammy sttnesnenfecotineenintneee ‘Where do you find these products? You can begin by checking wth your carent supple. I'your supplier doen carey the products, you ean check with oer acl vendors, national supplier, o alae Ifyou implement the suggestions above, you wl bein the journey toward gre and wil smltancously save some grea! Source: Barakovi et al. (2009. 2.4 Economic Impact “The third dimension ofa sstanable busines eeomomie impact. The economicinpaco a bousinss's operations is viewed internally and external. The sustanable busines wil consider its ‘en cconomic impact onthe communities in which it operates, soc sb cretion, impact on local Qasetcnat ‘wages, impact on real eaten love proximity the busines, tax ws, investenent in disadvantaged sous, impact on public works and social services systems, and other indicators hat the business has postive contributed to local economic growth while maintaining corporate profitability Beonomic empl doesnot fer othe profitability of the business indicated on the Finacial taements, lkbough profitability is rita for urvival. The sustainable business wil also look externally at suppliers to ensure they are engaged across the supply chain wih ther companies tht share simlar ‘ales and practi, It assumed thatthe sustainable business contribution toa strong nd heathy local economy wil lead oa strong and healthy ture for he busines. “The E Dorado Promise, a strategie philanthropy nitive of Murphy OF Corporation isan inspired example of corporate exnomic impact. Landrum (2008)- Murphy Ol Corporation a Fortune 500 company, s headquartered in l Dorado, Arkansas, e smal rural township with an estimated population of 20,241.08. Census Bureau (2007), In oder toadres the interrelated problems of ectinngindusty,populition, schoo enrllment, and alent pol fom which to draw, Murphy Oil Corporation announce tat it woald donate $50 milion toa scholarship program for local students, _eatngthe Hl Dorado Promise program. The program it expected to provide scholarship to tadents forthe nex 20 yea (One yea aler announcing he Promise program there was an 18% inerease in collegebound seniors Hilen (2007). After 2 years, the community has sen a 4% nerease in cehoo enrollment, the loca community eolleye ha een 816% nereae fn earollment, and familie fom more than 28 states sd 0 foreign countries have moved to El Dorado Dorado Promise (2008) “Theinepving examples of TOMS Shoes, Wal-Mart, and Murphy Oi Corporation demonstrate the significant impact company can have in pursuing any ofthe dimensions of sustainable business, In ‘caf these examples, we se how the soil, environmental, or economie emmitment ha bese cenzal tothe way a which the business conduts its operations. n Chapter.9 “Sustainable Business: ‘tse ample ofthis book we provide an array of aditional examples that we hope wil nspire ‘yur wn busines to begin it journey toward sustainability (© rreuouschanter (Qrnbeot contents -ntps:itsaylordotog github oltext_a-primer-on-sustainable-businessis04-oparations-management hl