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Project submitted in partial fulfilment
of the requirements of the
MBA(FT)
at the
University of Northumbria
at
Newcastle
NAME: PRATHMESH GARG
COURSE: MBA
SUPERVISOR: Prof. DAVIDOGLETHROPE
TITLE: Investigation on role of SME(s) in UK
emitting carbon emission and explaining how
important is to reduce Carbon footprint by using the
technique of life Cycle Assessment (LCA) in Green
SupplyChain Management (GSCM)
DATE: 7TH OCT 2010
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Declaration
I declare the following:
(1) that the material contained in this dissertation is the end result of my own
work and that due acknowledgement has been in the bibliography and
references too ALL sources be printed, electronic or personal
(2) the Word Count of this Dissertation is 16500.
(3) That unless this dissertation has been confirmed as confidential, I agree to
an entire electronic copy or sections of the dissertation to being placed on the
e-Learning Portal, if deemed appropriate, to allow future students the
opportunity to see examples of past dissertation. I understand that if displayed
on the e-Learning Portal it would be made available for no longer than five
years and that student would be able to print off copies or download. The
authorship would remain anonymous.
(4) I agree to my dissertation being submitted to a plagiarism detection
service, where it will be stored in a database and compared against work
submitted from this or any other school or from other institution using the
service.
In the event of the service detecting a high degree of similarity between
content within the service this will be reported back to my supervisor and
secong marker, who decide to undertake further investigation that may
ultimately lead to disciplinary actions, should instances of plagiarism be
detected.
(5) I have read the Northumbria/Newcastle Business School Policy Statement
on Ethics in Research and Consultancy as detailed on page 46-51 of The
Newcastle Business School Masters Dissertation Guidelines and Supervision
logbook for 2009-2010 and I declare that ethical issue have been considered,
evaluated and appropriately addressed in this research.
SIGNED:
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Abstract
Over the last decade, There is major concern of climate change issue. Hence,
In a recent report by Intergovernmental Panel on Climate Change (IPCC,
2007) states that that there is explicit demand for the organization to improve
their environmental performance from the Stakeholders, Government
Commission , , NGO(Non Government organization ), customers, and
Financial Community. Nevertheless, in spite of high regulators demands and
strong pressure from the external and Internal factors but the contemporary
revises shows the concern that most of the organization which adopts
Environmental Management System are the large organization by
implementing upbeat (proactive) environmental strategy. On the other hand,
SME(s) adopting the imprudent (reactive) strategy, still lean to act according
to external pressure. As, SMEs account for 99.8% of European enterprises,
66% of total employment and half of the total value added in the EU
(European Commission, 2003). It has been estimated that SMEs have a
greater environmental impact per unit than large firms and are the largest
contributors to pollution, carbon dioxide emissions and commercial waste
(Environment Agency, 2003). Thus, highlighting the issue awareness iscreated to motivate the SME(s) to implement Carbon Reduction Commitment
and make them understand the corporate social responsibility. Thus, the
literature review is focused on major role played by SME(s) in UK economy
and reviewing the prompts and barriers faced by the SME(s) while
implementing EMS . Moreover, the paper discussed about the importance of
GrSCM and whole product life cycle assessment(LCA) benefits the
organization to increase profitability . On the other hand , the paper even
reveals about the limitation of LCA modeling in context in sustainable supply
chain management . Finally, the paper classified about the adopted research
methodology , analysis and findings from the research, In addition, to that
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timeline figure is presented by giving the implication and scope for further
research.
Keywords: Green Supply Chain Management, Supply Chain Management,
Environmental Management System, International Standard Organization
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Contents
Abstract ........................................................................................................... 3
Acknowledgement ........................................................................................... 9
Glossary ........................................................................................................ 10
1. Chapter One- Introduction ...................................................................... 11
1.1 Background .......................................................................................... 11
1.2 Research focuses area and problems ................................................. 13
1.3 Research Scope................................................................................... 14
1.4 Use of research .................................................................................... 14
1.5 Aim and Objective of the Research ...................................................... 15
1.6 Report Structure ................................................................................... 16Chapter 2 - Literature review ......................................................................... 18
2.1: The global issue of GHGs ................................................................... 18
2. 2egislation law and regulatory demands ................................................ 22
2.2.1 AGENDA 21 ................................................................................. 22
2.2.2 GOVERNANCE IN SUSTAINBILITY ............................................. 22
2.3. International Organisation for Standardisation ISO ...................... 26
2.4 ISO- EMS REQUIREMENTS............................................................ 27
2.5 Sustainable Supply Chain Management ........................................... 29
2.6 Green Supply chain ....................................................................... 33
2.7 SUSTAINABLE PROCUREMENT TASK FORCE (SPTE) ............ 34
2.7 Major role played by SME(s) in emitting carbon emission. ............ 36
1) Motivation and Drivers behind EMS implementation for SME(s) ... 39
2.7.1 Motivation and Drivers behind EMS implementation for SME(s) 39
2.7.2 Barriers to EMS implementation for SMEs ................................ 41
2.7.2.1 Size and resulting resource constraints ...................................... 43
2.7.2.2 Industrial sector ......................................................................... 43
2.7.2.3 Lack of Training and Awareness ................................................ 43
2.8 Tool and Techniques ..................................................................... 45
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2.8.1 LIFE CYCLE ASSESSSMENT AND ISO ......................................... 45
2.8.2 Inherent problems of LCA modeling ........................................... 47
2.8.3 Dispose or reuse and recycle: ....................................................... 48
2.8.4 Life cycle thinking ....................................................................... 50
Chapter 3- Methodology ............................................................................... 52
3.1 Research Philosophy ........................................................................... 52
3.1.1 Interpretism.................................................................................... 53
3.1.2 Positivism: ..................................................................................... 53
3.1.3 Justification of Research Philosophy ............................................. 53
3.2 Research Methodology ........................................................................ 54
3.2.1 Deduction: ..................................................................................... 553.2.2 Induction: ....................................................................................... 55
3.2.3 Justification of research methodology ........................................... 56
3.4 Research Strategy ............................................................................ 56
3.4.1 Survey ........................................................................................... 59
3.5 Research Method ................................................................................. 60
3.6 Research Strategy ............................................................................... 61
3.6.1 Primary Sources Data ................................................................... 61
3.6.2 Secondary Sources Data ............................................................... 62
3.7 Hypothesis ........................................................................................... 63
3.8 Population and Sampling ..................................................................... 64
3.9 Questionnaire design and Piloting ....................................................... 65
3.9.1 Piloting ........................................................................................... 66
3.9.2 Interpretation of questionnaire ....................................................... 67
3.10 Validity test ......................................................................................... 68
3.11 Reliability test ..................................................................................... 68
3.12 Data analysis method ......................................................................... 68
3.13 Ethical issue ....................................................................................... 69
3.14 Summary ............................................................................................ 69
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Chapter 4- Data analysis and Findings .......................................................... 71
4.1 Total Greenhouse Gas emission By economic sector .......................... 71
4.2 Total C02 emission by Economic Sector .............................................. 73
4.3 Enterprises, Employment and Turnover by size of Enterprises of UK
private Sector, 2008 ................................................................................... 74
4.5 Distribution of Employees in SME's all over UK by percentage ........... 77
4.6 Distribution of UK Private Sector basis on years .................................. 80
4.7 Carbon Emission by Year .................................................................... 82
4.8 Trend of Private Sector and Carbon emission by Year ............................
4.9 COORELATION/ASSOCIATION:......................................................... 88
4.8.1 Industry Sector by Co2 Emission ................................................... 89
4.9 LINEAR REGRESSION: ...................................................................... 90
4.8.1 Analyses Summary of Co2 emission from Linear Regression in a
Scatter graph .......................................................................................... 91
4.8.2 Forecasting Of Co2 Emission ........................................................ 92
4.9 One-Sample Statistics .......................................................................... 97
4.10 Factors preventing the SME(s) from improving its Management ....... 98
4.11 Respondents opinions of the Prompts for the SME(s) in reducing
carbon emission?, under the following headings ....................................... 994.12 Respondent opinions of the Barrier for the SME(s) in reducing carbon
emission? ................................................................................................. 100
4.13 Summary of Findings from the above analysis ................................ 101
5 Chapter 5- Conclusion and Recommendation Chapter ............................ 103
5.1 INTRODUCTION ................................................................................ 103
5.2 RESEARCH CONCLUSION .............................................................. 103
5.3 RECOMMENDATIONS: On the basis of Literature review and analysis
................................................................................................................. 106
5.3.1 GREEN DEVELOPMENT ............................................................ 107
5.3.2 GREEN SUPPLY CHAIN: ........................................................... 108
5.4.3 JIT AND TQM .............................................................................. 109
5.4.4 Awareness among the entities..................................................... 109
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5.4.5 Understanding Rules ................................................................... 111
5.5 Further Research Scope .................................................................... 111
5.6 Research Limitation: .......................................................................... 114
5.7 SUMMARY: ........................................................................................ 115
6. References. ............................................................................................. 116
7 Bibliography .............................................................................................. 137
Appendix- 1 ................................................................................................. 139
Reflective Statement ................................................................................... 139
Appendix 2 ................................................................................................ 142
Cover Page .................................................................................................. 142
Appendix 3 ................................................................................................ 144Questionnaire- Piloting ................................................................................ 144
Appendix 4 ................................................................................................ 154
Final Questionnaire ..................................................................................... 154
Appendix 5 ................................................................................................... 164
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Acknowledgement
I would thank my family for supporting me throughout my life and especially
for the last year as they provided extra support both emotionally and financial.
I would like to thank them also for guiding me throughout my life.
Im grateful and would like to thank my tutor Prof. David Oglethorpe, he
always provided me with correct guidance throughout the year. I would like to
thank him for always being available to give me both direction and support in
completing my dissertation.
I would like to thank my friends and my class mates to support and encourage
me endlessly throughout the year. Thank you.
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Glossary
EMS- ENVIRONMENTAL MANAGEMENT SYSTEM
SME- SMALL AND MEDIUM ENTERPRISES
ISO- INTERNATIONAL STANDARND ORGANISATION
SCM- SUPPLY CHAIN MANAGEMENT
GrSCM GREEN SUPPLY CHAIN MANAGEMENT
SSCM- Sustainable Supply Chain Management
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1. Chapter One- Introduction
1.1 Background
Supply chain management (SCM) is considerable the significant facilitator ofglobalization towards the world economy. On the other hand, because of fast
pace life the world is paying a soaring cost for the lucrative economy
advantages of globalization in stipulation of ecological imbalance. It has been
review by conditions such as global warming, climate change or carbon
footprint. This means there is increase of earth temperature which effects in
rise of sea level due to the melting of ice and reduce the overall land area of
Earth. As the report by the Intergovernmental Panel on Climate Change
(IPCC, 2007) accomplished that there is now unquestionable facts that
climate change is caused due to the burning of fossil fuels by human action.
Hence. In today environment climate change is the major concerned that
needs special attention and stern steps needs to be taken to prevent
environmental collapse. Moreover, the UK government commission and the
Stern Review (2006) reveals that the dreadful economic even though the
environmental consequence of ongoing to implement a business as usual
approach towards environmental concern. As, this inventive information
about the economics of environment transform create a awareness among
the people, to assert them to take Stern steps to tackle the climate change
issue to increase profitability and to get sustainability strategy for long term
growth (Stern, 2006, pp. 12). As the concern of climate change issue is
conceptualized beneath the corporate social responsibility (CSR) as it social
responsibility for every human being to protect the environment in the best
possible way .As the corporate social responsibility has common missionstatements in all the reports from global firm. As CSR relates to transparency
in economic exposure, sustainability coverage, and prospect for stakeholder
discourse. Hence, in the CSR the most important concept is sustainability,
which is define as Elkington(1998, p-20) the principle of ensuring that our
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actions today do not limit the range of economic, social and environmental
options open to future generations and called this attitude as the triple
bottom line approach. The economic, social and environmental dimensions
are also recognized as three pillars of sustainability (Hutchins and
Sutherland, 2008, p-1688). As many research has been conducted and
concluded that larger companies are progressively more integrating
environmental management into their corporate strategies(Groenewegen,
1996). Whereas , some research has shown that small and medium-sized
enterprises (SMEs) lag behind as compare to large companies(Hillary, 2000).
Research conducted on the environmental practices of SMEs (Hillary, 2000)
has describe small firm owner-managers as unaware of the ecological impact of their enterprise,
Deficient of tools and resources constraint to overcome environmental
issues,
Challenging to voluntary act due to the superficial cost, occasion(time) and
resources necessary to shrink environmental impacts,
Incredulous about the business benefits of sustainability and
difficult to engage in everything to do with reducing their environmental
impact.
The growing importanceof GrSCM is motivated mostly by the escalating
deterioration of the environment, e.g. retreatingraw material resources,
overflowing wastesites and increasing levels of pollution. However,it is not
just about being environmentfriendly; it is about good business wisdom and
gaining higher profit. In fact, it motivate the business value and not a cost to
the centre (Wilkerson 2005).In addition, the regulatory requirements and
consumer pressures are driving GrSCM. Hence, the scope of GrSCM ranges
from immediate examining of the wide-ranging of environment management
programmes to have additional proactive practices and that be implemented
through various Rs (Reduce, Re-use, Rework, Refurbish, Reclaim, Recycle,
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Remanufacture, Reverse logistics, etc.). Hence, the purpose of this paper is to
discussed about the importance of GrSCM which is defined as integrating
environmental thinking into supply-chain management which also include
product design, material sourcing and selection, manufacturing processes,
delivery of the final product to the consumers as well as end-of-life
management of the product after its useful life. As this process is known as
life Cycle Assessment (LCA) which includes product life which start from
buying of raw material and ends at product consumption and disposal. We
specifically focus on RL and mathematical modeling aspects in order to
facilitate further study and research.
1.2 Research focuses area and problems
The prime area of this Research is provide the importance of Benchmarking to
reduce Carbon footprint and to investigate the role played by Small and
Medium Sized Enterprises(SMEs) of UK emitting carbon emission, and the
techniques that can be implemented to shrink and reduce Carbon emission by
adopting sustainable supply chain management . Furthermore, research will
analyses cause and effect relationship of human activity in the industrial
sector influencing climate change and Drivers and barrier for SME(s) while
adopting Environmental Management System. It is likely that SMEs have
more environmental impact as per component as compare to large firms and
are the major contributors to pollution, carbon dioxide emissions and
commercial waste (Environment Agency, 2003). Hence, it is very essential to
adopt Green supply-chain management (GrSCM) which is growing curiosity
among researchersand practitioners of operations and supply chainmanagement.
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1.3 Research Scope
There is much of the argument about the climate change , which cause due to
human activity. Despite a huge literature revive on the economic implication
on global warming by discussing the role of government regulations and
demands to control Green house Gases(GHGs) . As there is devastating
issues and effect of climate change. Hence, to overcome this issue there is
major debate by many researchers and authors to take stern steps to achieve
a swift evolution towards a low carbon economy. As it will have sustainable
economy and more resources. The intend of this paper is to create the
awareness among the SME(s) to implement Green supply chain Management
by achieving sustainable supply chain to have profitable business without
disturbing the ecological balance and make them understand that
implementing Environmental management system(EMS) is their corporate
social responsibility which will benefit their business. Moreover, the paper
review and discuss about the prompts and barriers that affect Small and
Medium- Sized Enterprises SME(s) while operating the business towards low
carbon economy.
1.4 Use of research
The relevant literature review is carried out to develop in-depth
understanding of the problems adjoining the research topic. The main purpose
of the research is to investigate and identify the characteristics of an
organizations carbon procedure and strategy implement to tackled while
originate the anticipated benchmarking. This Research will specifically target
to know about how the green supply chain management can facitate the
SMEs to benchmark Carbon footprint, so that they can best represent
themselves to get a more global perspective. As it includes what steps can be
taken to involve assembly environmentally wise preference in supply chain
strategy, design and implementation, while managing the reverse supply
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chain efficiently and reduce waste. As they play an significant role in de-
carbonization through its operations by expanding supply chain, optimism as
it impart through benefit as cost is reduced as it helps to manage risk result
into profitable business (http://www.greenscn.com/). This will result them to
gain Sustainable supply chain management as essential to delivering long-
term profitability and tend to achieve the level when they assess their impact
across a global range of operations.
1.5 Aim and Objective of the Research
Aim of this Research is provide the importance of Benchmarking Carbon
footprint and techniques that can be implement to shrink and reduce
Carbon emission in sustainable supply chain management of UK
SME(s)
Objectives:-
Issue of Greenhouse Gas(GHG) effecting ecological system
Carbon usage, including the effects of climate change and related
legislation/regulation. As Green supply chain management has
recognized the significance of carbon emission monitoring.
Benefit of benchmarking for supply chain management , can be used
to influence green procurement.
SME(s) Importance to reduce Carbon emission and implementing
carbon footprint
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SME(s) Drivers and Barriers in implementing Environmental
management system
Importance of recycling and disposal of products, that include the
opportunity of group composing proposal in combination with general
Suppliers. This concept of material cycles is gradually replacing a one
way' perception of economy
How to tackle the problem of rising concentrations of greenhouse
gases by improving supply chain management and better use material
cycles.
1.6 Report Structure
Chapter One
This chapter endeavor to give a background reflection regarding the study. It
also includes research aims and objective. The focal point and problems are
also measured and follow by a relation to subsequently chapter.
Chapter Two
The chapter include the Literature review on effects of climate change and
government legislation for decarbonizes carbon emission from industry
sector. As Green supply chain management has recognized the significance
of carbon emission monitoring. Major role played by SME(s) of UK in growth
as well emitting carbon emission and waste product and the techniques such
as LCA that can help them reduce carbon footprint. Literature reviews
attempts to show a the cause(human activity) and effects(Climate change)
relationship of UK SME(s) that has adverse effect on climate change and the
Drivers or Motivation and Barriers while implementing Environmental
management system for low carbon emission. A linkage to next chapter is
also being provided.
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Chapter Three
This chapter attempt to deem and give details about the research method and
methodology undertaken for the research. In this chapter a argument has
been shown concerning the method choose for the research. Advantages and
Limitation regarding the methods and methodology is also considered with
their effectiveness for research
Chapter Four
This chapter involves an analytic approach as it analyses the data which is
been collected for the research. Further the collected data would be compared
with the literature review and an analysis of strength and weakness would beconcluded
Chapter Five
This chapter is where the conclusion of the finding and literature review would
be considered. In this conclusion chapter an attempt is made to link the
derived conclusion to the objectives and aims of the research. This chapter
will also involve an approach to identify the limitation to research and
recommendation if any future research is taking place.
References and Appendix.
This section includes all the references which have been used for the
research. A bibliography list has been also included, this list includes other
references which were been used to gain an overall idea of the relative
subject. Appendix section includes other relative material regarding the
research topic. An email proof is also been attached stating a proof form
company which allowed for the interview taken place.
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emission caused by Human activity, have an unpleasant influence not only
on the ecological system but also causes change in climate (IPCC, 2007).
Hence, the governance of United Kingdom has put Challenging objective to
cut down greenhouse gases(GHGs) concentration by 80% by assessing the
life cycle of GHG emission with the help of Publicly Available
Specification(PAS) 2050 (IPCC, 2007; Stern, 2008). PAS 2050 has been
developed by British Standard Institute(sponsored by Defra and Carbon trust)
in Conjunction with extensive consultation from Industry(Carbon trust, 2007).
PAS 2050 is a measurement tool/protocol for organisations to make credible
reduction commitments and achievements on life cycle GHG emission(Sarkis,
2006). Presently UK, is concentrating to reduce (GHGs) emissions fromBusiness activity(IPCC, 2007; Oreskes, 2004). GHGs are mainly targeted as
they come into greenhouse effect, with a natural observable fact, wherein
some of the gases are capable to catch environmental heat and trigger in
raise the Earth's temperature. Therefore, majority of the nations are
dedicated to reduce the GHG emissions under the Kyoto protocol. Whereas ,
UK has setup Carbon Budget to reduce carbon emission for the following
years as shown below
Fig 2.1 Summary of Carbon Budgets for GHGs , 2008-2022
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Keeping in mind a major international policy focusing on carbon pricing and
trading (Stern, 2008). Moreover, the Government of UK sees climate change
as the major issue faced by the world today and plan to take steps by
implementing the Carbon Reduction Commitment(CRC) in dropping carbon
emissions(HM Government, 2006a). On the basis of Kyoto protocol
Stern(2008) stated that the UK targeted to reduce 12.5% of carbon emission
by 2012 from the baseline year 1990.
Figure: 2.2 UK GHG Emission Baseline 1990 2020 Prediction
Source: (DTI, 2007)
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As the reduction by now surpass as shown in the above figure for 2008
reported by DEFRA(Baggott et al., 2007). There is reduction of carbon
emission by 15.3% from the baseline year, with target of achieving 19.3% of
reduction by 2010(Baggott et al., 2007). Figure 2 shows the predicted change
from 2010 to 2020 as mentioned for GHGs within the Kyoto Protocol. From
the above diagram we can easily understand from the total no GHGs. CO2
contribute 85 percent caused due to the burning of fossil fuels(DEFRA,
2006c). But the British Government is trying to target ahead from Kyoto
targets with the help of Carbon reduction Commitment(CRC) reducing carbon
emissions by 30% till 2020 year comparing from the baseline year 1990(HM
Government, 2006a). on the other hand, In spite of small and mediumsize enterprises (SMEs) contributing half of the revenue and
employment (BERR, 2007), little is known about their emissions.Increase in
the number of SMEs will automatically increase their cumulative effect on
climate change (Moss et.al., 2010). The Commission of the European Union
(2006), in its latest report on action forecast for energy efficiency, identified the
impact of SMEs in environmental decision making and the non availability of
proper information regarding their involvement in pollution of the environment.
Moreover, their integration within global value chains(Will, 2008) exposing
them indirectly to the impacts of growing public scrutiny of their larger
customers by a variety of Stakeholders, including non-government
organization(NGOs), the media and other public and community groups(Will,
2008). As there is increasing concerned about the climate change Issue
which give rise to global warming. Hence, Government has implied certain
policy and regulatory demands to reduce Carbon emission and to achieve
better performance from the Industrial Sector that has been mentioned in
Section 2.
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2. 2egislation law and regulatory demands
2.2.1 AGENDA 21
A complete plan of action which is to be taken worldwide, nationwide and
even at a local level by all associations of United Nations, Governance, and
Major Groups in each and every region where environment have impact on
human(Spangenberg, Pfahl and Deller, 2002; Langeweg, 1998;
www.un.org/esa/dsd/agenda21, 2010). Moreover, because of agenda 21 firms
can enhance their productivity in an efficient and effective manner. But
Selman and Knight (2006) suggest that to attain sustainable development
concepts of agenda 21 should be followed. Agenda 21 deals with scrupulous
environmental issues like disappearance of various species and pollution and
deals with economic progress which meets our needs without affecting the
currently existing resources in future. Organization also known as Triple
bottom line(Elkington, 1998) because the term Corporate Social
Responsibility(CSR) revolved around it(Widemann and Lenzen, 2006)(Taken
from low carbon and green supply Chain Wilco Book). For sustainability
according to Carter and Roger (2008) a perfect combination of strategy,
organizational culture, risk management and transparency is essential.
2.2.2 GOVERNANCE IN SUSTAINBILITY
Sustainability is essential in 21st century for any business to have a
balance between technological, economic development and protection of the
natural environment. According to Daily and Huang (2001) many
organizations considers the aim of environmental improvement and are
developing environmental management systems (EMS). It is also agreed by
Darnell, Henriques and Sadorsky (2008) who imply that business performance
can be improved by adoption of EMS and could be an important tool in
business development. EMS consists of internal policies, assessments plans
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and implementation actions which has an effect on entire organizational unit
and its relationship with the natural environment. Establishing of EMS or
getting ISO 14001 certification(See Section 2.3) brings business an ability to
minimize and avoid environmental problems. Moreover according to Daily and
Huang (2001) as we reduce the environmental issues and problems related
with that efficiency and productivity of the business also improves which is
supported by Nawrocka , Brorson and Lindhqvist (2009) . Also the rules and
regulations which force the companies to comply with the legal requirement
has been the driving forces for the company to implement ISO 14001 and
EMS. Furthermore it is also asserted by Carter and Rogers (2008) who adds
that other advantages like reduced costs, shorter lead times and better qualityof the manufactured products comes from the implementation of the ISO
standards
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The EMS-HR factors model (Source: Daily and Huang, 2001)
.
As a result of checking site by third party audit, questionnaire to workers lead
organisation towards few benefits such as (Curkovic and Sroufe, 2010;
Nawrocka, Brorson and Lindhqvist, 2009).
i) Performance of cost could be improved
ii) Performance of quality could be improved
iii) Performance in flexibility could be improved and
iv) Environment performance could improve.
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However, Blake (2009) argues about EMSs barriers in internally and
externally;
Internal barriers are like; lack of sources, financial condition, lack oftechnology devices, and lack of understanding and perception of common
goal, struggling in implement of EMS, organisations culture and negative
attitude of workers towards work for e.g. lack of interest from top management
level (Agenda 21, Chapter 33). Moreover, coaching and assessment of worker
in terms of environment perspective and audit system (Eco-management and
Audit scheme) EMAS on regular basis they need to achieve for better
performances (Nawrocka, Brorson and Lindhqvist, 2009; Slack, Chambers
and Johnson, 2007; Agenda 21, Chapter 29). Whilst external barriers such as;
cost regarding to certification of ISO 14000 standards and EMS, problem
facing in verification for certificate, uncertain market from customers and lack
of effective support for products. To overcome above barriers organisation
should do more concentrate on some skills like, R&D investments, Information
Technology, Engineering equipment, Customer service, Investment in human
abilities and knowledge abilities of employee (Crowe and Brennan, 2007;
Siebenhuner and Arnold, 2007).
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2.3. International Organisation for Standardisation ISO
International Organisation for Standardisation - ISO is a network of nationalstandards of 161 countries, it plays as a role of a bridge between private
sectors and public. Most of the members of ISO are part of government or
mandated by the government bodies of their countries (ISO, 2010). Good
Governance is an essential factor in every sector of society whether it would
be political environment, corporate environment or general
society (Aras and Crowther, 2008).
Fig 6. ISO 14001 Frameworks (Bringas, Carrillo and Peralta, 2008)
ISO 14001 standards determine the requirements for an environmental
management system as a part of the company or even as a whole
organisation based on the continuous development plan as shown in the
above figure 6 (Bringas, Carrillo and Peralta, 2008).
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2.4 ISO- EMS REQUIREMENTS
ISO 14001 has been designed to help organizations to help them make a
continuous improvement in environmental performance.
Continuous source reduction (Source: Kitazawa and Sarkis, 2000)
ISO-14001 EMS requirements can be utilized as a self appraisal apparatus by
the firm (Kitazawa and Sarkis, 2000; Macdonald, 2004). Critical EMS
fundamentals for implementing a uninterrupted source reduction, change in
cultures and operational actions lead to continuous source decline. JIT and
TQM are few manufacturing practices which have an influence on
environment management and sustainability within organization. The major
benefit of implementing JIT and TQM is that they result in tremendous waste
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reduction. The wastes like over- production, wastes due to extra waiting time,
transportation wastes, inventory wastes, wastes in processing and wastes
from product defects are minimized by JIT and TQM (Sarkis, 2001).
Manufacturing organizations functions and environmental influences are as in
the figure below.
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Manufacturing Organizations functions and environmental influences
(Source: Sarkis, 2001)
In addition few standards of ISO such as ISO 14031 concentrates onenvironmental performance and changes in it over time. (Hervani, Helms and
Sarkis, 2005).
2.5 Sustainable Supply Chain Management
Sustainable Supply chain Management is also known as Green supply Chain
management and Logistics in Supply chain Management(Sarkis, 2006).
Sustainable supply chain means a well managed material and data flow
among companies in a cooperative way keeping in mind the three dimensions
of sustainable development (Seuring etal., 2008). The three dimensions of
sustainable development are economy, environment and society, in
accordance with the stake holders. For sustainable supply chain,
management of social and environmental issues is not the responsibility of
organization alone but all elements of the supply chain must participate.
Sustainability of supply chain can be enhanced by concentrating on effective
reuse of the product returns and minimizing wastes. French (2008) suggests
that sustainability can be increased by creating awareness on the impact of
industrialization on the environment. According to French (2008) the main
factors which are responsible for the wastes and emissions are manufacturing
of products, transportation, utilization and disposition. Tsoulfas and Pappis
(2006) agree with French (2008) and state that every product which is
manufactured, transported, utilized in the supply chain leaves behind their
environmental influence. Tsoulfas and Pappis (2006) also suggest that
recyclability and reusability depends on the factors like product design,
packaging used, waste or used product collection and transportation
technique and recycling techniques. To achieve sustainable supply chain
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Tsoulfas and Pappis (2006) put forth an interesting concept of material flow
management in accordance with environment. The impact of the any
products on the environment depends on the type of material used, energy
consumed and waste release during the products whole life cycle.
The material flow (Source: Tsoulfas and Pappis (2006)
According to Tsoulfas and Pappis (2006) the supply chain comprises four
stages which begin with material selection followed by manufacturing as
per the product design. Pollutants and emissions depend on product
design and manufacturing methods used. The product is actually
manufactured is packed in the process of packing. The next stage is the
distribution either to end user or to the shop. The moment end user
decides not to use the product, reverse supply chain starts. This is the
complete material flow. The product then should send to get recycled
which also supported by Linton, Klassen and Jayaraman (2007) saying to
attain sustainability at lower cost recycling is important. Tsoulfas and
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Pappis (2006) He also suggested that sustainability might have chances of
short term investments but it results in improvement of sustainability. At
each stage there are various wastes and emissions formed depending
upon the product. The focus should be given on both disposal and
manufacturing process as environment gets affected strongly during these
two stages and thus policies are prepared to save the environment.
Therefore complete material flow should be studied and junctions are
evaluated where maximum impact on environment takes place which
results in sustainable supply chain. Moreover for sustainable supply chain
strategies like green purchasing reverse logistics, lifecycle assessment
and ISO 14000 certification should be implemented (Svensson, 2007
Fig 2.2. Sustainable Supply Chain Management SSCM (Carter and Rogers,
2008)
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In todays environment sustainability seeks to make a balance within the
improvement which defines the class of human life and other components
included are economics, social and environmental (Morris and Vasileiou,
2006) and the concerns regarding sustainability are constantly changing as
the condition change, the condition changes, the changes are strongly
depended on factors such as population growth and increase in people
earning power (Arnott, Lacy and Lowitt, 2009). Moreover, Morris and Vasileiou
(2006) added to this by commenting that Sustainability is a dynamic concept
as the perception of sustainability has changed extremely with the changes in
knowledge, market preferences and technology and government policy. The
basic structure of sustainability in supply chain show in fig 8
SUPPLY CHAIN REDESIGN
PROMOTING SCALE ENHANCING
EFFICIENCY
FIG 8 SUSTAINABILITY IN SUPPLY CHAIN
(Mangan, Lalwani and Butcher, 2008)
Moreover, sustainable provide legal frame work for stakeholder in supply
chain, which implies that each stake holder has responsibility and commitment
towards protect environment with their legislation (Svensson, 2007).
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2.6 Green Supply chain
Green supply chain is a procedure where inputs which are use areenvironmental friendly and transformation of this inputs into outputs that can
be claimed and used again at the end of the life cycle which results in a
sustainable supply chain (Cognizant, 2008) as green supply chain have a
major influence on the environment (MollenKopf, Stolze and Tate, 2010). The
focus of green supply chain for an organisation or industries requires a
working with suppliers and their customers, analysing the internal organisation
and process, considering environment in the process of product development,
extended stewardship across the whole product life-cycle (MollenKopf, Stolze
and Tate, 2010). Agenda Chapter 8 also consists about the Green supply
chain.
Fig 9. Environmental Impact at each stage of the supply chain (Cognizant,
2008).
Information Technology (IT) could be use to make the supply chain green by
optimising the resources required to support the business as IT facilitates
more effective supply chain planning, execution and collaboration hence
results in reducing the resource requirement (Cognizant, 2008). Innovation
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In Green purchasing the effect of the purchase on the environment is
considered. Furthermore, government and firms have started understanding
the importance of green purchasing, they have realized that every single
purchase has impact on environment and with careful sourcing finances can
be saved. Michelsen and Boer (2009) maintain the views of Walker and
Brammer (2009) and adds that green procurement is all about producing
products which are environmentally sound. He claims that by following correct
practices helps to minimize the environmental influence throughout the
product life-cycle. Also collecting, transporting, manufacturing the product
needs fuel which can result into pollution so the selection of fuels should be
wise. Moreover even mode of transportation makes the difference i.e. sea andrail transport is comparatively cheaper than air transport and results in less
emissions. Also selection of supplier from a large distance i.e. outsourcing
might have additional effect on the environment. As Procurement function
plays an important role in initiative such as Six Sigma and DFE(Design for
Environment), which works on the improvement of the entire system and
identify the significance of the design phase in minimizing cost and
environmental effects (Sarkis, 2006, p-49)
Procurement Role and value prospects in the product life cycle
Value prospects in Product life
CycleProcurement Role
Redesign of Companys
product or service and process
improvement
Describe available Supply options, facilitate
collaboration with expert suppliers, and help
craft accurate purchasing specifications.
Deciding subcontract process Conduct a make or buy analysis
Streamline material
management ( integrated
procurement or inventory
Facilitate collaboration with other
department and suppliers to optimize whole-
system supply chain performance
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minimization)
Attain better products and
services
Identify and purpose superior alternatives.
Select new suppliers or work with current
suppliers to improve supplier quality and
process. Perform quality assurance checks.
Improve in-coming
transportation and logistics
Assess total cost of logistics system and
develop appropriate control mechanism
Improve supplier processes Monitor process, provide education and
suggestion, and facilitate expert-to expert
collaboration
Improve supplier organizationalstrengths(financial soundness,
reliability)
Evaluate supplier management system,screen out weak organization, and help
suppliers improve management systems.
Source: (Sarkis, 2006, p-49)
2.7Major role played by SME(s) in emitting carbon emission.
Micro, small and medium-sized enterprises (SMEs) are, nationally and locally,a verysignificant component on the business scenes meanwhile they also
account for a largeshare of growing environmental concerns(Hillary, 2004).
SMEs play an important role in the British economy with the help of their
contributing role in gross domestic product, employment generation,
modernization and the encouragement of entrepreneurship, using them as
important drivers while moving towards low carbon future (IPCC, 2007).
According to the report of The BERR (2007), in UK, 4.71 million private sector
activities were involved in trading; SMEs constituted about 99.9% of total
businesses. SMEs can be explained clearly by the number of workers,
annual earnings, annual balance sheet, or by the self-sufficiency (Rao, 2007)
as seen in Table 1. SMEs are uncontrollable by a bigger firm and sometimes
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might have a 25% power over of another firm (Europa 2009). Nevertheless,
the amount of workers is the frequently considered while defining
SMEs(Europa 2009) as size is significant in distinguishing them from bigger
firms. For example 250> employees. However, the SMEs sector is varied: all
firms having a smaller size are put together without considering their industrial
sector, the conditions of their activities and size. Therefore, Hillary (2004,
p568) implied that studies which try to examine the sector and conclude
regarding it, are to some extent, comparing not just apples and pears, but the
whole fruit bowl. Jobanson (2000) found the firm conducting their business in
a similar sector do not improve in a similar manner because of the variety of
procedures that come across different SMEs.
In 2007, in UK, SMEs contributed about 59.2% of jobs (13.5 million jobs),
and, 51.55% of annual income of private sector 1882 billion(BERR, 2007).
Therefore, SMEs are necessary for a strong economy, making it flexible,
modernization, competition, and a significant cause in generating
employment.(Gerstenfeld & Roberts 2000). On the other hand, SMEs results
to about 50-70% pollution caused by the industries(Hillary 1995; Pimenova &Vorst 2004; Revell & Blackburn 2007) and results to around 80% or roughly
5400 pollution activities(Netregs 2007; Revell & Blackburn 2007). It is even
said that SMEs are the main reason for 43 per cent of grave industrial
pollution accidents and produce about 60 per cent of commercial waste in
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England and Wales (Environment Agency, 2006, p. 11). Commercial waste, is
presently a matter of great concern(House of Lords, 2008). It is an imperative
source of implanted emissions of greenhouse gases. However, despite their
increasing impact) surveys conducted by Netregs (2007) on SMEs discovered
that only they made only 15% of the critical environmental impacts, however it
augmented to 49% once impelled. However, the most of the SMEs, and their
shareholders, think that their individual effects are too minimal (Hillary 2004;
Gerstenfeld & Roberts 2000; Price 2007; Smith, Kemp & Duff 2000). EMSs
play a significant role in enhancing SMEs legislative fulfillment (Tanaka 2008)
and minimizing their environmental influence. Because of SMEs large
combined environmental influence, it is necessary to recognize the reason oflow up-take of EMS by SMEs. Despite having a substantial g lobal uptake of
EMSs such as ISO 14001 their uptake and execution in the SME sector still a
major issue (Hillary, 2004). After studying SMEs and CSR in UK discovered
that omission from supply chains is one of the important risks of not engaging
in CSR (Roberts et al., 2006), as most of the bigger firms have started to
consider social and environmental criteria in their procurement policies. A
report by the Department of Trade and Industry (DTI) on business and society
asserted that, CSR can turn into gradually more significant business concern
for many SMEs in future(Baden et.al., 2009) Supply chain pressure was
discovered to be the most important cause for environmental change in a
study of SMEs in HongKong (Studer et al., 2008). It has been recommended
that a solution for such an issue would be for bigger firms to offer incentives
and give a supporting hand to SMEs so as to make compliance economically
feasible (Raynard and Forstater, 2002). As Spence (2007) identifies the
following issues relating to business ethics and CSR:
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Looking for assurance that the object SME is according to CSR
standards;
Equality of treatment of the supplier when discussing various termssuch as terms and conditions, and utilization of power in supplier
relationships;
Scepticism regarding the perceived benefits to SMEs, even when a
partnership approach is taken;
The assumption by large firms that formal standards are applicable in
measuring CSR in SMEs; and that
(Large company) social responsibility and ethics policies should seek
an open and honest partnership with SMEs and not by attempting
misuse or short-term profit.
However, it has been suggested that smaller companies also have a valuable
role to play even if it is accepted that large businesses and primary suppliers
need to help the SME community (HM Revenue & Customs, 2006, p-21).
Interestingly, however, Williamson et al. (2006a:4) found scant evidence of
suppliers working collaboratively to solve environmental problems with the
help of Drivers and motivation provided to them. However, even they face
many barriers while implementing EMS as been discussed below as
1) Motivation and Drivers behind EMS implementation for SME(s)
2) Barriers behind EMS implementation for SMEs
2.7.1 Motivation and Drivers behind EMS implementation for SME(s)
Motivations which are frequently recognized behind the implementation of
EMS for SMEs are pressure from shareholders or supply chain, legislative
obedience, possible cost savings, consciousness of the environmental or
sustainability issues, business competitiveness, enhancing the morale of the
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workers , accessibility of government funding and investors first choice for
organizations with EMSs because of less environmental risks(Hertin et al.
2008, NetRegs 2007, Price 2007, Tanaka 2008). The reason for
amalgamating an EMS is very significant in understanding QMS(Quality
Management System). The Anton, Deltas & Khanna (2004) discovered that
EMSs quality plays an important role than the presence of the firm as it
examines its effectiveness: the pressure of the shareholders influence the
quality of EMS. If there is more pressure from shareholders the quality of EMS
also increases. For example the Manufacturing Industry. A deep study by
Hillary (2004) assessed 33 different studies that examined the practical
execution effect of EMSs on SMEs and the outlook of smaller organizationstowards environment, also showcases various advantages of EMS. As Hillary
(2004) reported that the external environmental advantages were the
enhancement in the environmental performance, guaranteed legal fulfillment,
increase in the process of recycling, and decrease in pollution. The
implementation of EMS in SME also helps them in communication. It helps in
developing a positive image in the mindsets of the consumers, maintaining
good customer relationship, and also building a good association or
connection with regulators. (Hillary, 2004). However, to handle the firms
image in a particular market, Corporate Social Responsibilities (CSR) is the
most significant element to be taken into consideration.(Muller, Santos and
Seuring, 2009; Labuschagne, Brent and Erck, 2005; Vachon and Mao, 2008).
They have defined CSR (pg. 510) as categories or level of economic, legal,
ethical and discretionary activities of a business entity as adapted to the
values and expectation of society. Gradually, co-operate strategy mainly
concentrates on improving the environmental performance but, if they
increase in rights among the stake holder could lead them to reduction in risk
mechanism (Brito, Carbone and Blanquart, 2008).
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2.7.2 Barriers to EMS implementation for SMEs
The organizational problems are the problem that would negatively impact onEMSs quality. As the implementation of EMSs are voluntary and would
therefore need assurance from the management and other key entities in
order to implement and sustain (Gerstenfeld & Roberts 2000; Hertin etal.
2008). The possibility of many EMSs regularly draw the limits at the factory
gate that results to the environmental effects from the supply chain and also
the indirect impact and the disposal of products are being ignored (Hillary,
2004). Finally, EMSs faces problems in capturing the subtle elements of
environmental problems, such as bio-diversity or indirect effects (Christmann
& Taylor, 2006). ISO14001 and EMAS are one size fits all standards as
these policies were designed in order that every business uses it (Starkey,
2000). The major internal and external difficulties faced by organization in
order to implement EMS in SMEs have been summarized by Hillary (2004)
(Table 2). It is been also said by authors that small businesses usually
experience greater problems which deals in engaging their business in
socially responsible behavior due to lesser resources available in terms of
time, money and expertise (Lepoutre and Heene, 2006). As the author
concludes that the major barrier or problem faced by SMEs is less number of
human resources available.
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In response to these problems faced Gerstenfeld & Roberts (2000) suggested
that programs and EMSs should be responsive to the requirements of SMEs,
considering the tight cash flow, time limitation and human resources, local
programs, cooperation between SMEs such as being friendly user and
responsive for various organizations(Hillary, 2004). Hillary (2004) states that
SMEs gain real benefits despite of the problems they face. Moreover
Gerstenfeld & Roberts (2000) and NetRegs (2007) discuss the geographical
persuade on the quality level of EMS. The cultural commitment is been
determined by the location in regards to EMSs. In the UK, NetRegs (2007)
establish that the number of SMEs believed that they were a cause of
environmental harm which varied from geographically location such as 44% in
Northern Ireland to 53% in Wales. The variation in the environmental harmcould be mostly because of the distribution of industry types between the
countries of even due to various cultural differences in environmental beliefs.
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2.7.2.1 Size and resulting resource constraints
SMEs encompass organizations of multiple sizes (Table 1). Resources suchhuman, financial and time are considered to be main determinants of EMS
effectiveness and the size of the organization concludes their availability:
SMEs usually experience resource constraints mostly in regards to Micro
organizations (Hillary 2004, Gerstenfeld & Roberts 2000). SMEs mostly have
reactionary management; they usually divert their available resources to core
business activities (Smith, Kemp & Duff 2000). Price (2007) survey revealed
that 40% of SMEs found the cost incurred on implementation and certification
is mostly outweighed the benefits. While (Pimenova & Vorst 2004) survey on
SMEs has reported that the major problems to environmental enhancement
are time (55%), cost (45%) and technology (32%). In addition to this they may
also faces problems in regards to rapid staff turnover which results in leaving
of environmental Managers (Hillary 2000: Revell & Rutherfoord 2003).
2.7.2.2 Industrial sector
The EMS quality and the EMS effectiveness could be affected even within thesame sectors of various operational conditions and consumers pressures
(Hertin et al. 2008). In addition, EMS accreditation is mainly attracted by the
manufacturing and chemical industries due to the sectors familiarity with
ISO9001 quality management system (QMS) or because these sectors are
usually under pressure to show their environmental credentials (Price, 2007).
2.7.2.3 Lack of Training and Awareness
NetRegs (2007) revels that only 15% of SMEs considered they had
environmental effects, however when the effects are acknowledged the
available staff tend to exhibit low levels of eco-literacy (Revell & Blackburn
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2007). Eco-literacy, in the form of environmental qualifications and previous
skills of environmental management as this may influence the EMSs success,
because inadequate of knowledge in regards to the benefits and also the
details regarding the implementation process for EMSs as this may be
discouraging. In addition to this Stakey (2000) argued whether smaller
organizations with informal management systems finds ISO14001 too
bureaucratic and crucial. The disadvantage of implementing EMS has not
been widely explored. However in the SME sector, Hillary (2004) states the
main three disadvantages such as: less number of resources such as money,
time and skills. However, recently it is been mainly focused on encouraging
large corporations to under take responsibility for the environmental actionsthey are responsible and a little attention is given to a significant part that
SMEs usually have to play. The corporate social responsibility (CSR) agenda
has been assist for a long time in regards to larger enterprises, but recognition
of this also needs to assist so SMEs would be able to take more responsibility
for their actions they undertake (Moss et.al., 2010). It is focused to assist
SMEs in order to act more responsibly and also to give recognition to various
SMEs that are already working (European Commission 2007). As EMS
identifies the non-conformities toward legislation that are costly or even
difficult to rectify, and also less of market reward (Hamschmidt 2000). The
obvious disadvantages such as dissuading SMEs from implementing an
EMS. Moreover as stated above Price (2007) states that 40% of SMEs are
considered of the implementing EMS cost in regards to their advantages.
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2.8Tool and Techniques
2.8.1 LIFE CYCLE ASSESSSMENT AND ISO
Life cycle assessment (Source: Rebitzer et al., 2003)
Sustainable development requires some methods and tools to evaluate,
measure and compare the impacts on environment through procurement ofgoods and services practiced by humans. The environmental impacts are due
to the emissions which take place during manufacturing, extraction and other
processes. Thus Life cycle assessment according to Rebitzer et al., (2003) is
essential which helps in estimating and assessing the environmental effects
attributable towards the life cycle of a product. On the other hand, LCA is key
think to considered in supply chain because it provide information related to
production service which have impact on environment and customer (Hutchins
and Sutherland, 2008) for e.g raw material, manufacturing, distribution usage,
waste and disposal option. The LCA working can show in fig ( )below;
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FIGURE ADAPTED LCA FOR ENVIRONMENT
(Hutchins and Sutherland,
2008)
Life Cycle assessment is recycling assessment of products to reduce waste,
air pollution and water pollution (Montaben et al., 2006; Agenda 21, Chapter
18). Moreover, re-cycle is reuse of products to upgrade their quality and
sometimes this quality become better than original quality which lead them to
reduces cost, waste reduction and can get benefit for economy. To overcome
of LCA problems organisation should obey the governance of specific
countries with good strategically relationship, having basic knowledge for
adoption of governance policy. As result of above solution organisation could
get better development of industries, better profit, and better image in market
(Siebenhuner and Arnold, 2007). Moreover, total quality environmentmanagement involved workers from organisation to improve product and
process under ISO 14000 standards from ISO 14040 to ISO 14043 standards
to qualify their process (Walton, Handfield and Melynk, 1998).
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(Finnveden et al., 2005). On the other hand, LCA modelling is helpful when
it is utilized for recognizing improved waste management situations and
options, such as: Energy from Waste (EfW) that decreases the
requirement for additional energy sources; recycling in putting back the
virgin objects; biological treatment discharging fuels; remains from ignition
utilized as fill-in for construction of road; and, the similarity of diverse
opportunities for waste management of particular material (Ekvall et al.,
2007; Thorneloeet al., 2007). Generally, permitting the problems and
restrictions it is silently a influential tool when worries are accounted for
with superior conclusions, and LCA modeling is utilized for assisting the
decision making, not as a method of putting back decision creators(Ekvall et al., 2007; McDougall, 2005). Presently there are intrinsic
complicatedness in LCA modeling such as reasonable allowance of
environmental burdens to particular product and problems taking place
from the partiality in total environmental impacts (Russell et al., 2005), life
cycle beliefs is necessary to consideration for carbon footprint inference of
waste management system. Additional, LCA provides a precious
approaching in effects external of waste management systems instant site
and limitations due to emission linked gases are mobile and influence
location huge distances missing from the main source (Koneczny and
Pennington, 2007)
2.8.2 Dispose or reuse and recycle:
As Organizations have focussed on the other side of the supply chain
operations with recycling issues. According to Pagell, Wu and Murthy (2007)
say that when the equipment is returned from the customers of companies,the company either recondition the old equipment or reclaim the materials
they are made from, reprocessing them into raw materials. The life cycle of
product includes their whole start to end processes. They include production,
sales, end of life, reuse and recycling shown in figure given below: The author
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explains that it is essential for reduction in environmental effects could be
acquired by product remanufacture and also reusing the product. Moreover
the author discussed the following benefits of reuse:
Organizations monetary expenditure could be reduced by proper utilization of
the components in producing or acquiring new components.
Reduction of energy and material consumption during manufacturing because
the existing components are utilized.
Furthermore according to Horvath et al., (2005) the recovered products faced
more competition from new products; the investment on product recovery
becomes a risky venture. Adding to the author Prallinski and Kocabasoglu
(2006) suggest that the cost of recovered products can be reduced by optimal
locations and allocations of facilities on reverse logistics. The diagram shown
Source: Matsumoto (2009) p. 1548
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below shows the content categories for a reverse logistics system. (Issues
from section 1 of Agenda 21)
They say that reverse logistics may be the answer to improving the
environmental impact of the supply chain by improving material use.
2.8.3 Life cycle thinking
Life cycle thinking is important to consider the implication of different waste
management systems beyond their traditional regional boundaries, and
adoption on this perspective of life cycle thinking is important for sustainable
management of waste (Ries, Thabrew and Wiek, 2009).
Fig 9. Life Cycle Thinking in Procter and Gamble (2009)
Source: Pokharel and Akshay (2009) p. 177
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The strategy of Life cycle thinking helps and organisation to reduce its local
pressure and waste management cost and at the same time reduces the trade
off felt in the society, this approach ranges from raw material to the production
raw material to the production and then distribution, use and post use
product management and other related activities (Ries, Thabrew and Wiek,
2009). Through engineering, tools and concepts Life cycle thinking aims at a
higher sustainability of the overall economy (Ries, Thabrew and Wiek, 2009).
Summary
This chapter includes the Literature review on the effects of climate change
and the government legislation to decarbonizes carbon emission fromindustry sector. As Green supply chain management has established the
importance of carbon emission monitoring. Major role played by SME(s) of UK
in growth as well emitting carbon emission and waste product and the
techniques such as LCA that can help them reduce carbon footprint.
Literature reviews attempts to show a the cause(human activity) and
effects(Climate change) relationship of UK SME(s) that has adverse effect on
climate change and the Drivers or Motivation and Barriers while implementing
Environmental management system for low carbon emission. A link to next
chapter is also being provided.
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Chapter 3- Methodology
This methodology section explains the methods and methodology adopted to
fulfill the research objectives and aims mentioned in the Chapter 1 and finds
the solution for appropriate research topics (Polonsky and Waller, 2010) and
research questions followed by Deductive or Inductive approach that we can
further see in research Methodology. It begins by directing the justification for
research along with the Research Philosophy, Research Methodology,
Research Strategy, Research Approach, Tools and analysis technique, Ethics
of the Research, Research Limitation, Reliability and Validity of the Research
by giving justification to each and every section for the choice of result has
been selected for the quantitative approach. Saunders et al.,(2009, P. 90)
implies that the rational of the research strategy is supposed to be reliable on
the research objectives and questions. Hence, derivative from the research
objectives and questions, identify the various sources to gather data and
reflect on the problems that will certainly have for example location and
money, time, access to data, ethical issues.
3.1 Research Philosophy
It is significant to identify and realize your individual pattern as these establish
the whole duration of the research development (Hussey and Hussey, 2000).
Philosophy is applied to argument and reason in looking for information and
fact which deals with crucial actuality or of common causes (Collis and
Hussey, 2009). There are two main research philosophies that are positivism
and phenomenology or Interpretivism (Hussey and Hussey, 2000). As Hussey
and Collis (2009) states that research methodology could be applied with two
different approaches, phenomenological and positivistic approach. To avoid
the chaos at the later stages between Poitivisim (Positivist) and Interpretivist
(Phenomenological) table below shows the difference between two
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philosophies. As both the philosophies have their specific strength and
weakness which shown in the table below
3.1.1 Interpretism
Interpretism is developed by the common fact which is not objective but very
subjective therefore it is shaped by human observations (Collins and Hussey,
2009). The research communicates with the being researched because it is
not possible to divide what exist in real and social world from what is going in
the researchers mind (Saunders et.al, 2009). Through this process express
its own experience in order to understand those of the informants.
3.1.2 Positivism:
Positivism is developed by the principle that social actuality and the global
detection of various theories based on observed research (Collins and
Hussey, 2009). Addition to above, facts are gain from positive information
cause every logically reasonable declaration can be systematically identified
or is accomplished of rational or mathematical evidence (Walliman, 2001,
p.15). As the research guiding business research under a philosophy that
arises from positivism is focused on various theories to describe socialcircumstances. Kent (1993) states that with this action, human achievement
has seen to be a consequence of outside stimulus that can be analyzed into
effect and cause relationship.
3.1.3 Justification of Research Philosophy
As per the material of the Chapter 2(Literature) the issue of climate Change
that result into global warming caused by Anthropogenic (effect of human
being on the natural world ) has been discussed. Hence, Positivism
Philosophy has been taken, as we can easily find out caused and effect
relationship from the above discussion in Chapter 2.As, SMEs are expected
to cause 50-70% of all industrialized pollution(Hillary 1995; Pimenova and
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Vorst 2004; Revell and Blackburn 2007) and cause annually, 80% or just
about 5400 pollution incidences(Netregs 2007; Revell & Blackburn 2007).
3.2 Research Methodology
There are two different ways of building what is right or wrong to make
Conclusion; Induction and deduction. Induction is depending on experimental
proof, while deduction is all based on logic (Ghauri and Gronhaug, 2010). In
common it includes the complete design, which can bring to the option of
Research Methods. As Bailey (2007) defined methodology as How should the
researcher go about finding the social actuality?(Bailey, 2007, p.51).
Important differences between deductive and inductive approaches toresearch
Deduction Emphasizes Induction Emphasizes
Scientific Principles Gaining an understand of the
meanings human attach to events
Moving from theory to data. The need
to explain casual relationship betweenvariables
A close understanding of the
research context
The collection of quantitative data The
application of controls to ensure validity
of data
The collection of qualitative data
The operationalisation of concepts to
ensure clarity of definition
A more flexible structure to permit
changes of research emphasis as
the research progress
A highly structured approach Research
independence of what is being
A realization that the research is
part of the research process
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researched
The necessity to select samples of
sufficient size in order to generalizeconclusion
Less concern with the need to
generalize
Source: (Saunders et.al., 2010, p-127)
3.2.1 Deduction:
Deduction is a method by which we turn up with logical conclusion by rational
simplification of recognized fact (SEKARAN and BOUGIE, 2010). As it require
not be truth in actuality, but it is rational as we appear at the penalty of a
theory (GHAURI & GRNHAUG, 2010). As Deduction involves gather of
actual facts to make sure or challenge the assumptions relationship among
variables that have been deduced from propositions (GHAURI and
GRNHAUG, 2010). The Deductive Methodology involves quantitative
research whereas we build hypothesis from the obtainable Knowledge
(Literature), which can be focus to practical analysis and thus can be
approved or rejected (Bryman and Bell, 2007). The main goal of the
researcher is not just to make assumptions from existing literature but also to
define them in functioning conditions (Bryman and Bell, 2007)
3.2.2 Induction:
Inductive research is a lesson in which theory is derived from the observation
of experimental reality (Hussey & Hussey, 2000) which is opposite of
deductive method. It gives conclusion from the practical knowledge or user
experience from particular subject area (Collis and Hussey, 2009). As it
involves drawing from individuals observation to detailed view of general
methods or laws, and even it is also described as a drawing from specific to
the general (Collis and Hussey, 2009). According to Saunders et al., (2009)
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the inductive Methodology involves qualitative research which is troubled with
the context in which events take place.
According to the content of the Chapter 2(Literature) the issue of climateChange that result into global warming caused by Anthropogenic (effect of
human being on the natural world) has been discussed. Hence, Positivism
Philosophy has been taken, as we can easily find out caused and effect
relationship from the above discussion in Chapter 2.
3.2.3 Justification of research methodology
The deductive research is moves from the broad to the particular (Collis and
Hussey, 2009). As in Chapter 2 the general issue of climate change has been
discussed which goes further towards the small scale industry sector to point
out role played by SME(s) in emitting carbon. Hence deductive approach is
adopted.
3.4 Research Strategy
The research strategy is mostly used to resolve the questions of the Issue
raised in review of literature (Saunders et al., 2009). Research Strategy is the
most important aspect and extensive activity from which we can find results, in
order to fulfil the aims and objective of the research (Hussey and Collis, 2009),
as Mentioned in Chapter 1(Introduction). Even research strategy is totally
based on philosophy the researcher has adopted, as both the philosophy has
different type of research strategy (Saunders et al., 2009) as shown below.
Therefore, it is stated that the research strategy is the practical framework of
the research which is connected to theoretical knowledge(Literature)
(Hallebrone and Priest, 2009).In the table below () in which first two strategy
are quantitative and rest are qualitative research from the above figure that
has been describe on dividing each strategy into Merits and Deficiencies .
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Table 2: Evaluating Different Research Strategy
Research
MethodMerits Deficiencies
Survey
Generalizability of findings
from large samples
Especially useful for
hypothesis testing
Easy and inexpensive to
administer
Offers anonymity
Not in-depth, hence not
useful for studying complex or
conceptual issues
Responses may be biased
by the questions
Statistical validity and
reliability concerns
Problems with low-response
rates
Experiment
Robust control of variables
possible
Causality can be established
High cost in terms of time
and money
Legal and ethical
constraints
Recruiting subjects is not
easy
Artificial
Grounded
Theory
Systematic generation of
new theory from data
(interaction between datacollection and analysis)
Analyze experiences from
the standpoint of those who live
Perspective-based
methodology (perceptions
vary)
Difficult when
conceptualizing complex
phenomena, requires strong
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it
Context-based and process-
oriented
research capabilities
Not recommended for
description
Subject to researcher bias
Generalizability
questionable
Case Study
Provides in-depth and
holistic perspective
Multi-faceted; can show
different perspectives
Can show how processes
work over time and give
insights into cause and effect
Can serve both exploratory,
descriptive and explanatory
purposes
Can supplement statistics or
survey results
Limited generalizability; not
representative of entirepopulations
Time-consuming and
expensive to administer
Bias of both the recipient
(researcher) and supplier of
information
Data can be too rich, broad
and complex to be analyzed
Data analysis depends
strongly on the analytical skills
of the researcher
Particularly difficult when
dealing with rich and complex
data
Ethnography In-depth and holistic Bias of the researcher
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description
Can identify causalities
Requires strong research
capabilities
Time-demanding
Action
Research
Findings have strong
practical implications
Provides unique insights
Requires full access to the
organization
Perceived as improving
mainly practitioner and not
academic knowledge
Time consuming
Sources: Remenyi et al. (1998)
3.4.1 Survey
The Survey Strategy is generally linked with the deductive methodology. It is
admired and ordinary strategy used in business research. Surveys are well-
liked as they permit the collection of huge amount of data from a significant
population in a highly inexpensive way. Moreover, the survey strategy is
supposed as a reliable by people in common, fairly easy to clarify and to
understand. The Survey Strategy gives us chance to gather quantitative data
which can examine quantitatively using expressive and inferential statistics.
Hence, while adopting this strategy few things should be believe as it is
important for this research that the researcher needs to use time when
ensuring that the sample is diplomat , conniving, and piloting the data
collection methods as it the most important part of the research for getting
good response rate. Similarly, a lower than normal response rate does not
necessarily means that responses are biased (Rogelberg & Stanton, 2007).
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As, the BERR (2007) stated in report that, in the UK, 4.71 million