Green initiatives for business sustainability and value creation

The author’s research with SMEs shows that green business practices offer distinctive business benefits for SMEs.. This chapter builds on the findings and discussions in the research and

Business Sustainability and Value Creation

Arun Kumar Paul

Xavier University, India

Dipak Kumar Bhattacharyya

Xavier University, India

Sandip Anand

Xavier University, India

A volume in the Advances in Business Strategy

and Competitive Advantage (ABSCA) Book Series

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Names: Paul, Arun Kumar, 1964- editor | Bhattacharyya, Dipak Kumar, editor

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Title: Green initiatives for business sustainability and value creation /

Arun Kumar Paul, Dipak Kumar Bhattacharyya, and Sandip Anand, editors.

Description: Hershey, PA : Business Science Reference, [2018] | Includes

bibliographical references and index.

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Preface xii Chapter 1

Kamalika Chakraborty, Indian Institute of Management Calcutta, India

Nishant K Verma, Indian Institute of Management Bangalore, India

Chapter 4

InternationalizationofIndianPharmaceuticalIndustry:AStudyonExportPerformanceUsingStructuralModel 70

Srikant Panigrahy, Xavier Institute of Management Bhubaneswar, India

Prahlad Mishra Professor, Xavier Institute of Management Bhubaneswar, India

B P Patra, Xavier Institute of Management Bhubaneswar, India

Chapter 5

SustainabilityEvaluationofGreenUrbanLogisticsSystems:LiteratureOverviewandProposedFramework 103

Jesus Gonzalez-Feliu, Ecole des Mines de Saint-Etienne, France

Gaurav Kabra, Xavier University, India

Vinit Ghosh, Indian Institute of Technology Guwahati, India

A Ramesh, Indian Institute of Technology Roorkee, India

Chapter 11

DeterminantsofSustainableConsumptionBehaviour:ReviewandConceptualFramework 239

Yatish Joshi, Independent Researcher, India

Zillur Rahman, Indian Institute of Technology Roorkee, India

Compilation of References 263 About the Contributors 301 Index 303

Preface xii Chapter 1

EnvironmentalSustainabilityPracticesforSMEs 1

Gurudas Nulkar, HRD, India

Therateandscaleofenvironmentaldegradation,througheconomicactivities,hastriggeredwidespreadawakeningamongbusinesses,governmentsandcivilsociety.Theworldover,corporationshaverespondedbyadoptingsustainabilitypracticesandreporting.However,muchofthesehappenwithinthepremisesofthecorporations.Aslargerorganizationsoutsourcetheirmanufacturingandserviceoperationstosmallandmediumenterprises(SMEs),theyeffectivelyshifttheirenvironmentalburdenontheirvendors.Inmostdevelopingcountries,poorregulationsandweakenforcementofenvironmentlawsleavetheSMEsontheirown,toimprovetheirenvironmentalpractices.However,theirlimitedresourcesandmanagerialcapabilitiesareofteninadequatetoundertakesustainabilitypractices.ThischapterpresentsthefindingsofaresearchconductedamongengineeringSMEsinIndia.Itproposesalifecycleapproachtowardsenvironmentalpracticesanddiscussespotentialbusinessbenefitsandvaluecreationfromthis.Thechaptergivesaroadmapforgreenbusinessstrategies,whichSMEscanimplementwithintheirorganization

Chapter 2

MeaningofGreenfor3PLCompanies 21

Pervin Ersoy, Yaşar University, Turkey

Intoday’scompetitiveenvironmentmanaginggreen,becomingenvironmentallyfriendlyandsustainablehasbecomemaintopicforallindustriesandcompanies.Therefore,inthischapteritwillbeaddressedhowgreenlogisticssolutionsandpracticescanhelpcompaniestoincreasetheirperformancewithspecificpractices,casesandresultsfromTurkey’s3PLserviceproviders’side.Thischapterwilldiscusswhybeinggreenisimportantfor3PLcompaniesandthebenefitsofbeinggreenfromthebusinessandenvironmentsidewithcurrentdataandreallifeexamples.Themainpurposeofthischapteristoshedlightongreenperformanceindicatorsandtoidentifybenefitsofbeinggreenfor3PLcompaniesinTurkey

Chapter 3

ATemporalCaseStudyofGreenBusinessInitiativesofaLeadingFirmintheIndian

HydrocarbonIndustry 45

Kamalika Chakraborty, Indian Institute of Management Calcutta, India

Nishant K Verma, Indian Institute of Management Bangalore, India

Theeffectivefunctioningofmodernbusinessinthecurrentdayandageisincompletewithouttakingintoconsiderationitsextendedimpactonsocietyandenvironment.Inthisrespectcompaniesneedtocontinuouslyrevisitandanalysetheirgreeninitiativestokeepthemrelevantandcontributepositivelytotheglobalcause.Thisbookchapterprovidesacapableframeworkfororganizationstoconducttemporalanalysisoftheirgreeninitiativesandenablethemtoreflectontheircurrentpositionsandstrategizetheirfuturecourseofactions.Further,weanalysethegreeninitiativesoftheIndianHydrocarbonIndustryleader:IndianOilCorporationLimited(IOCL)andtraceitsgreenjourneyacrossdefinedtimeperiodstherebydepictingtheuseofthedevelopedframeworkinaddressingthegapoftemporalanalysisintheliterature

Chapter 4

InternationalizationofIndianPharmaceuticalIndustry:AStudyonExportPerformanceUsing

StructuralModel 70

Srikant Panigrahy, Xavier Institute of Management Bhubaneswar, India

Prahlad Mishra Professor, Xavier Institute of Management Bhubaneswar, India

B P Patra, Xavier Institute of Management Bhubaneswar, India

Focusingoninternationalizationprocessoffirmsofdevelopingcountries,thepresentstudyattemptstoidentifytheimportantdeterminants/variableswhichaffecttheIndianpharmafirms’exportperformance.Acausalmodelwasbuiltusingcontingencytheoryperspectivebyincludingimportantexternalvariables,internalvariables,exportstrategyandexportperformanceaffectingIndianpharmafirmsandwastestedusingStructuralEquationModeling(SEM)method.ThefindingofthisstudysupporttheconceptualmodelbuildusingcontingencyframeworkandcontributesbothtoexportperformanceresearchersforbuildingfurtherthetheoryandIndianpharmaindustrytofocusonimportantdeterminantsforexportsuccess

Chapter 5

SustainabilityEvaluationofGreenUrbanLogisticsSystems:LiteratureOverviewandProposedFramework 103

Jesus Gonzalez-Feliu, Ecole des Mines de Saint-Etienne, France

Thispaperaimstoproposeasystemicvisionofliteratureonsustainableurbanlogisticsassessmentandevaluation.Althoughnon-extensive,thisoverviewpretendslackofunificationinthesubjectofassessingandevaluatingtheimpactsofgreenurbanlogisticssystems,and,throughtheproposalofageneralassessmentandevaluationframework,thestepsdoneandbeingincoursetowardsstandardsonthisfield.First,anoverviewoftheresearchinurbanlogisticsisprovided,afterwhatthemainvisionsofsustainabledevelopmentandtheirderivedissuesforurbanlogisticsassessmentandevaluationarepresented.Then,aframeworktoassessandevaluategreenurbanlogisticssystemsviascenariocomparisonisproposed.Thisframeworkaimstoproposeamethodologicalframeworktouseandcombineexistingmethodstoassessscenarios,andnota“black-box”modelofsoftwarereadytouse.Thisisdonetomakesynergies

Chapter 7

HRMediatedReverseInnovation:AStudyonTwoMNCsinIndia 150

Dipak Kumar Bhattacharyya, Xavier University, India

Thisbookchapterattheoutsetexplainstheconceptofreverseinnovation,throughliteraturereviewandreviewofthepracticesindifferentorganizations.ThechapterthenexaminesthereverseinnovationinitiativesforbusinesssustainabilityandvaluecreationoftwomultinationalsinIndia;oneinmanufacturingandtheotheroneisinprocessing(chemical).Thechapterthenassesseshowthesetwoorganizationscouldachievesuccess,andtowhatextentsuchsuccesscanbeattributedtotheirsustainablehumanresourcemanagement(HRM)practices.ThroughcriticalreviewofHRMpractices,thestudydocumentsthebestHRMpractices,andconcludeshowmultinationalsindevelopingcountriescanemulatesuchpracticesforachievingresultsinreverseinnovationforbusinesssustainabilityandvaluecreation

Chapter 8

ExplicatingGreenBiofuelPolicyAcrossIndianStates 164

Satyendra Nath Mishra, Xavier University, India

In2003GovernmentofIndiaenvisionedBiofuelPolicytogenerate[un]skilledemploymentopportunities,addressenvironmentalissues,alternativeforpetroleumfuelandutilizationofwastelandinruralareas.ThebiofuelprogrammetookvariedshapeacrossIndiawithfocusonsocial,economicandpoliticalprioritiesofimplementingstateshavingvaryingfocuslikedecentralizeddevelopment,priorityforlocaluseofresources,allocationofwastelandandgeneratinglocalemployment.Itwasobservedthatexistingpolicyguidelines,landallocationprocessesandfundallocationchannelswerenotabletoaddressthechallengescamewiththeemergenceofdifferentinstitutionalarrangementsacrossdifferentstatesofIndia.Themismatchtoaddressthespecificchallengesforemerginginstitutionscreatedfissurebetweenstateanditscitizens,andpotentialwithdrawalofprivateplayers

Chapter 9

SustainableValueEnhancementinClosedLoopSupplyNetworks 182

Arun Kumar Paul, Xavier University, India

Closed-loopsupplychains(CLSC)dealwithintegratingproductreturnsintothetotalsupplychainoverthelifecycleoftheproduct,therebyrecoveringamaximumamountofvalue.Inthischapter,theCLSCisstudiedthroughquantitativemodelsatthreelevels.Thestudyatthefirstlevelanalysesagenericclosedloopstrategicframeworkundervariousscenarios,capturingtheimplementationmaturityofCLSC.Inthesecondlevel,aquantitativemodelformultistageintegratedforwardandreverselogisticsnetworkisanalyzed.Finallyinthethirdlevelofstudy,amicroscopicviewistakeninwhichajointeconomicorderquantity(EOQ)andeconomicproductionquantity(EPQ)modelisstudiedtooptimizevaluebyusingpropermixofnewlypurchasedcomponents/productswithrecycledcomponents/products.Thefinalcontrolparametersmaybeutilizedbypolicymakers,CLSCnetworkdesignersorpracticingmanagersforeffectivedecisionmakingandcoordination

Chapter 10

EnterpriseIntegratedBusinessProcessManagementandBusinessIntelligenceFrameworkfor

BusinessProcessSustainability 228

Gaurav Kabra, Xavier University, India

Vinit Ghosh, Indian Institute of Technology Guwahati, India

A Ramesh, Indian Institute of Technology Roorkee, India

Inthemodernbusinessscenario,organizationsarevestinghigheffortsinmanagingprocesssustainabilityaspartoftheiroperationsmanagementpractices.Theglobalenvironmentalconcernsforthewelfareofthesocietyhavefacilitatedthischange.ResearchstudieshavereportedInformationandCommunicationTechnology(ICT)asoneoftheprerequisitesindevelopingandmaintainingefficientbusinessprocesses.TheprocesssustainabilityrelatedinitiativesandvariousprocessesrelatedregulatorycomplianceshavecreatedtheneedforsophisticatedITtoolslikeBPM(BusinessProcessManagement)andBI(BusinessIntelligence)inorganizations.ThuswiththeadvancementofICT,astrongdesiretoenhancethebusinessprocessperformancethroughBPMandBIapplicationsisfeltacrossorganizations.However,thereisscantresearchavailableonleveragingtheadvantagesoftheseapplicationsinsustainabilitydevelopment.Therefore,thispaperaimstopresentaconceptualarchitectureframeworkusinganintegratedBPMandBIsolutiontodevelopanorientationamongpractitionersandacademicianstowardstheinclusionofICTinattainingasustainable,energyefficientbusinessoperationsorprocesses.TheframeworkisbasedontheliteraturepertainingtotheroleofBPMandBIinprocesssustainabilityaswellasfromtheinputsofpractitionersinvolvedinthefieldofBPMandBI

Chapter 11

DeterminantsofSustainableConsumptionBehaviour:ReviewandConceptualFramework 239

Yatish Joshi, Independent Researcher, India

Zillur Rahman, Indian Institute of Technology Roorkee, India

Thisstudyreviewed82empiricalarticlesonsustainableconsumptionpublishedduring1997to2014.Thereviewexploreddifferentfactorsaffectingsustainableconsumptiondecision-making.Thefactorswerecategorizedaspersonal,behaviouralandsocio-cultural.Ataxonomicsynopsisofthefindingsis

presentedinanextensivetable.Thepaperidentifiesvariousprevalentmotives,facilitatorsandbarriersaffectingsustainableconsumptiondecision-makingandprovidespossibleexplanationsforinconsistenciesobserved in consumers’ sustainable consumption behaviour. A conceptual framework is proposedthatconsidersvariousmotives,attitudesandbarriersandexplainshowtheyarerelatedtosustainableconsumptionbehaviour.

Compilation of References 263 About the Contributors 301 Index 303

Preface

Thenotionof“greenbusiness”emergedattheendofthe20thcenturyinthewakeoftheeverincreasingpublicconcernaboutthesustainabilityofeconomicdevelopment.Itwasaccentuatedbythegrowingawarenessofenvironmentalissuessuchastherapiddepletionofnaturalresources,mostofwhichwerenoteasilyrenewable,andthedeteriorationofenvironmentalquality.Whiletheoriginsofthemodern

“greenmovements”canbetraceddowntothemiddleofthe1960s,ittookalmost20yearsforbusinesstoadapttothe“greening”trendsandadoptthemintoitsideologyandpractice,coiningtheterm“greenbusiness”forthatpurpose.However,eventoday,theconstituentofthegreenbusinessconceptisratherambiguousasdemonstratedbythevarietyofitsdefinitionsthatcouldbefoundindifferentsources.Furthermore,greenbusinesspracticesarestillfarfrombeinguniversallyembracedandappliedbybusinessentitiesaroundtheworld,withperceptibledifferencesofbusinesspenetrationbythe“green”ideasinvariouscountries.Thisisduetoseveralreasons,oneofthembeingthefactthatthe“greeningofbusiness”isstilllargelyperceivedasanextraburden(intermsofcostincreaseorrevenuelossordifficultyinimplementation),andtheotherreasonbeingrelatedtothenationalspecificsintermsofcultural,political,andeconomicdifferencesandsensitivities

Severaldevelopmentshavecontributedtowardsincreasedemphasisontheissueofbeinggreenorsustainability.Todaycompaniesareincreasinglyincorporatinggreenpracticesandarefindingthemselvestobestrategicallydisadvantagediftheyareunabletoalignsustainabilityobjectiveswiththelongtermbusinessobjectives.Inmanycountriessustainabilityreportinghasbecomemandatory.Theconsequenceofadvancesinthesectorsofenergy,environmentmanagementetc.havebroughttheimportanceofcompaniesrealizetheirobjectivesofmanagingpeople,planet,andprofits.Inthebusinessmodelofthepast,sustainabilitywaslimitedtocorporatesocialresponsibility.However,nowitisverycriticaltohavesustainablebusinessorientation.Theconcomitantchangesarefoundintheincorporationofgreenbusinesspracticesrelatedtoproduction,marketingsupplychain,HRetc.Infactbringingsustainabilitytothecoreofallfunctionshasbecomebasicinbusiness.Thishaschangedthewaybusinessschoolsandotherscientificinstitutionsdelivertheeducation

Thoughtheconceptofsustainabledevelopmenthasreceivedgrowingrecognition,butitisanewideaformanybusinessexecutives.Formost,theconceptremainsabstractandtheoretical.Protectinganorganization’scapitalbaseisawell-acceptedbusinessprinciple.Yetorganizationsdonotgenerallyrecognizethepossibilityofextendingthisnotiontotheworld’snaturalandhumanresources.Ifsustain-abledevelopmentistoachieveitspotential,itmustbeintegratedintotheplanningandmeasurementsystemsofbusinessenterprises.Andforthattohappen,theconceptmustbearticulatedintermsthatarefamiliartobusinessleaders

ThisdefinitioncapturesthespiritoftheconceptasoriginallyproposedbytheWorldCommissiononEnvironmentandDevelopment,andrecognizesthateconomicdevelopmentmustmeettheneedsofabusinessenterpriseanditsstakeholders.Thelatterincludeshareholders,lenders,customers,employees,suppliersandcommunitieswhoareaffectedbytheorganization’sactivities.Italsohighlightsbusiness’sdependenceonhumanandnaturalresources,inadditiontophysicalandfinancialcapital.Itemphasizesthateconomicactivitymustnotirreparablydegradeordestroythesenaturalandhumanresources.Ithasbecomeaclichéthatenvironmentalproblemsaresubstantial,andthateconomicgrowthcon-tributestothem.Acommonresponseisstricterenvironmentalregulation,whichofteninhibitsgrowth.Theresultcanbeatrade-offbetweenahealthyenvironmentontheonehandandhealthygrowthontheother.Asaconsequence,opportunitiesforbusinessmaybeconstrained

However,therearesomeformsofdevelopmentthatarebothenvironmentallyandsociallysustainable.Theyleadnottoatrade-offbuttoanimprovedenvironment,togetherwithdevelopmentthatdoesnotdrawdownourenvironmentalcapital.Thisiswhatsustainabledevelopmentisallabout-arevolutionarychangeinthewayweapproachtheseissues

Businessesandsocietiescanfindapproachesthatwillmovetowardsallthreegoals-environmentalprotection,socialwellbeingandeconomicdevelopment-atthesametime.Sustainabledevelopmentisgoodbusinessinitself.Itcreatesopportunitiesforsuppliersof‘greenconsumers’,developersofen-vironmentallysafermaterialsandprocesses,firmsthatinvestineco-efficiency,andthosethatengagethemselvesinsocialwell-being.Theseenterpriseswillgenerallyhaveacompetitiveadvantage.Theywillearntheirlocalcommunity’sgoodwillandseetheireffortsreflectedinthebottomline(IISD,1992).Greencentralityraisesseveralnewquestionswhichwerehithertounasked.Themostimportantamongsuchquestionsisthequestionofmeetingdualobjectivesi.e.financialandsustainabilityobjectives.Questforanswertothesequestionleadstofundamentalquestionssuchaswhatisthenewmeaningoffirmsinthenewcontext.Willtherebeanychangeintherolesplayedbythesefirmsinthecurrentmil-lennium?Sustainabilityobjectivesarerelatedtosurvivalofhumanityandotherspeciesonthisearth.Deepecologicalconcerninformsusthatsurvivalofhumanbeingsandotherspeciesdependsonthestabilityoftheclimateoftheearth.Further,stabilityoftheclimatedependsoneconomicfunctions.Itdependsonhowdoweproduce,howdoweconsume,howdoweoperateandgoverntheflowofman,materialandmachine?

Theecologicalsensitivityneedstobeinculcatedinthefunctioningandgovernanceoffirmsononehand,andontheotherhandintheconsumptionpatternofthesociety.Amovementtowardssustainableconsumptionisrequired.Aprecursortosuchmovementisthewaywethinkandorganizeourselves.ThiscallsforchangeinHRorientation.AnychangeinHRorientationwillrequirechangeinstrategyandbealsodependentonstrategicchoices.Therefore,newersetofstrategicchoicesrelatedtogreenpractices,needtobemade.Inthegivencontext,thisbookdealswithsuchquestionswhichareverycriticalfromtheperspectiveofresearchonStrategicGreenBusinessPractices

Greenbusinesswithsustainablepracticeshasstrategicintenttominimizeanyadverseimpactontheglobalorlocalenvironment,community,society,oreconomy.Suchbusinessesstrivetoattainthetriplebottomlineobjectives–makingeconomicprofit,keepinginmindtheconcernsforenvironmentandsociety

TheboundariesandrelationshipsenclosedbySupplyChainManagementincludingReverseLogis-Primaryobjectiveofthisbookistoexploreandcollatepossiblecontextsandconstructsofclosedloopsupplychainmanagementwhichcontributestodevelopinganddeployingstrategicapproachesforgreenbusinessmodels.Asacorollary,theotherobjectivesarereviewingorganizationalpracticestoevolverelevanttheoreticalframeworksofclosedloopsupplychainswhichcanreinforceorganizationalcapabilitiesforachievingsuperiorgreenperformance.Thebookalsoelaboratesuponchallengesfacedbytheorganizationsintheprocessofsustaininggreenbusinessmodels,suggestiveapproachestoover-comesuchchallenges,buildinglong-termorganizationalcapabilitiesthroughco-creation,innovationandadaptationofstrategicgreenbusinesspractices.Additionallythebookexplorestheimportanceofcross-functionalcollaborationsforeffectiveclosedloopsupplymanagement

ORGANIZATION OF THE BOOK

Thebookisorganizedintoelevenchapters.Abriefdescriptionofeachofthechaptersfollows:

agementofSMEsinthenewmillennium.Theauthor’sresearchwithSMEsshowsthatgreenbusinesspracticesofferdistinctivebusinessbenefitsforSMEs.Largecorporationsincreasinglydemandenviron-mentalmanagementsystemsfromtheirsupplierssincegreeningtheirsupplychainscontributesdirectlyintheirownsustainabilityefforts.Similarly,environmentalmanagementcertificationsareintegralpartofvendorqualificationcriteriaformanycompanies.Moreover,inmanydevelopedeconomies,bank-ersandfinanciallendinginstitutionsrequireenvironmentalriskassessmentfromtheirloanapplicants.Similarly,manyinsurerschargehigherpremiumfromSMEswhoareexposedtoenvironmentalrisks.IntheEuropeanUnion,extendedproducerresponsibility(EPR)requirescorporationstoberesponsiblefortheirproducts,nomatterwheretheyareproduced.ThishaspromptedlargecompaniestodisqualifySMEsupplierswhodonotmeettheenvironmentalstandards.Ontheotherhand,SMEsinconsumerbusi-nesseshavewitnessedgrowthingreenconsumerismnotjustindevelopedeconomiesbutalsocountrieslikeIndia.Toservethismarket,SMEsmustgobeyondgreenmanufacturing.Thisrequirestechnicalandmanagerialskills,butwillextendthefirstmoveradvantagestothoseearlyinthegame.Thesearejustsomeoftheobviousbusinessbenefitsaccruedthroughgreenpractices

Chapter1,titled‘GreenBusinessStrategiesforSMEs’,identifiestheexistingchallengesintheman-TheobjectiveofthischapteristohelpSMEsunderstandthebenefitsofgreenbusinesspracticesandofferthemasimpleframeworkforgreeningtheirbusinesses.Thechapterisdrawsupontheresultsofathree-yearstudyundertakenbytheauthorwithengineeringSMEsinIndia.Theresearchexaminedgreenbusinesspracticesofover70SMEsfromtheproductlifecycleperspective.Additionally,indepthinterviewswithlargecorporations,whohaveSMEsintheirsupplychains,helpedgaindeepinsightsintoenvironmentalpractices.Thestudyhasbeenpublishedininternationaljournalsandhasreceivedapositiveresponsefrompolicymakers,industryassociationsandSMEsthemselves.ThischapterbuildsonthefindingsanddiscussionsintheresearchandintendstohelpSMEsrealizehowgreenbusiness

Chapter3titled‘ATemporalCaseStudyofGreenBusinessPracticesofaLeadingFirmintheIndianHydrocarbonIndustry:GreenJourneyofIndianOilCorporationLimited’presentsinsightsrelatedtogreenbusinesspracticesusingcaseofacompany.Onthebasisofgeneratedinsights,authorsproviderecommendationforlargeoilcompanies.Themotivationbehindthisbookchapterwastodevelopaconceptualframeworkofgreeninitiativebyafirm.ThesecondobjectiveofthebookchapterwastoanalyzetheleadingfirmIndianOilCorporationlimited(IOCL),intheIndianhydrocarbonindustry(anunder-researchedfield)inthepurviewofthedevelopedframework.Indoingsotheauthorsaddresstheabsenceoftemporalanalysisofgreeninitiativesintheextantliterature.TheauthorsspecificallyanalyzethegreeninitiativesofIOCLacrossthreetimeperiods-pre-2000,2000-2007and2007-2015.Basedontheanalysisoftheinitiativestakenduringthisperiodalongwiththechangesintheregulatoryenviron-mentintheIndianHydrocarbonIndustry,theauthorsfindthatIndianoilwasfollowingafitapproachintheearlypre-2000erabycomplyingtothenecessaryregulations.However,duetochangesinpracticesinthebusinesspracticesinthehydrocarbonindustrypost2000era,theorganizationredefineditselftoadoptefficientpracticesacrossitscorevaluechainwhichwereinternallydrivenandpro-environmentandhenceshowedsignsofstretch.Thismovewasconsolidatedfurtherinthe2007-2015phasewhentheintensityofsuchinitiativesincreasedfurther.Beingresponsibleandethicalmarketleaders,coupledwithincreasingpresenceintheglobalmarketandbeinganintegralplayerintheglobalhydrocarbonindustry,theystretchedthemselvesandadoptedsustainabilityinitiativesinnon-coreareasaswelltherebymakingpro-environmentoperationsanintegralpartoftheircorporateidentity.ThecasestudyonIOCLthereforeservesasexampletootherfirmstoreflecttheircurrentpositionsandstrategizetheirfuturecourseofactionwiththehelpofthesuggestedframework.Byaddressingthestatedobjectivestheauthorscontributetoagreaterunderstandingofpractitionersintheirgreeningactions

Chapter4,‘InternationalizationofIndianPharmaceuticalIndustry:AStudyonExportPerformanceUsingStructuralModeling’,coversissuesimportantforthesustainabilityofpharmaceuticalorpharmaindustry.Authorsdealwiththeissueswhichareprimarilyimportantfromtheperspectiveofinterna-tionalization.Focusingoninternationalizationprocessoffirmsofdevelopingcountries,thepresentstudyattemptstoidentifytheimportantdeterminants/variableswhichaffecttheIndianpharmaceuticalfirms’exportperformance.Acausalmodelwasbuiltusingcontingencytheoryperspectivebyinclud-ingimportantexternalvariables,internalvariables,exportstrategyandexportperformanceaffectingIndianpharmafirmsandwastestedusingStructuralEquationModeling(SEM)method.Thefindingofthisstudysupporttheconceptualmodelbuildusingcontingencyframeworkandcontributesbothto

Chapter5,titled‘AUnifiedFrameworkforSustainableUrbanLogisticsEvaluation’reviewsvariousapproachesinvolvedinevaluationofsustainableurbanlogistics.Theauthorspresentaholisticframeworkwhichmaybeusedforsuchevaluationandmayprovideinputstowardstheformulationofstrategicgreenbusinesspractices.Thischapterdiscussesasystemicvisionofliteratureonsustainableurbangoodstransportscenarioassessment.Itaimsalsotoproposeaunifiedsetofguidelinesforscenarioassessmentandanalysisinthefieldofsustainableurbangoodstransportplanning,andinanextendedvisionofurbangoodstransportflows.First,arecallonstakeholdersandtheirmainobjectivesandstakesinmade.Then,theirvisionsofsustainabilityaswellasasynthesisofkeyperformanceindicatorsareproposedtoad-dressthesustainabilityofurbangoodstransport.Toestimatethoseindicatorsitisnecessarytosimulatetheurbangoodstransportflows.Weproposethenanoverviewonurbangoodstransportmodelling,forallthreecategoriesofflows:inter-establishment,end-consumersandurbanmanagementmovements.Finally,aunifiedframeworkforscenarioassessmentispresented,focusingonthedifferenttypesofscenariosandanalysesthatcanbecarriedout.Thischaptershowsthatalthoughthereisaplethoraofmethods,theyfollowsimilarmethodologicalpaths.Forthatreason,insteadofincitingcompetition,itismoresuitabletofindsynergiesbetweenapproachestoimprovescenarioassessmentandanalysisandgivedecisionmakersmoresuitablesupportandassistance

Chapter6,titled‘ACaseofKumbhMelaatAllahabad:LearningforUrbanSpaceManagementandtheBottomofthePyramid(BoP)Market’addresstheissuesimportantforurbanspacemanagementandsustainability.Increasingimportanceofurbanspacemanagement,environmentalissues,andsearchfornewmarketshavegivennewimpetustotheunderstandingofvariousIndianeventswherelargegatheringofcitizenshappenatonesingleplace.Theseconsumersalsoactasconsumer-citizens.ItseemsthatononehandIndianvaluesystemhasbeenabletomaintainmanytraditionaleventsforlong.Ontheotherhand,globalforcesfurthertriggerthisasthesespacesprovidethemwithopportunitiesformanagementofsustainablecities,eventmanagement,retailing,andconsumerresearchforthebottomofthepyramidmarket.Thischapterhighlightsthatsucheventsarepartofmetaorganizationalspaces(aspacebeyondtheboundariesoforganization)whereinbothconventionalandunconventionalspacescometogether.Thechapterhighlightsthatmaindriversfortheseeventsarevariouscommunitiesandlocalauthoritieswhohaverichlearningheritagewiththem.Corewhichbindcommunities,localauthorities,andlocalexecutivesofcorporationstogetherrevolvesaroundthefaithandsolacewhichKumbh/maaghmelaoffers.Nothingcanbemoreluxuriousthanmythforultimateexperience,hopeforsalvationanddeeprootednessinone’shistory.Thischapteralsohighlightstheroleofvariousfactorswhichhavecontributedtothegrowthofresearchintheareaofurbanpacemanagement.ManycometothemegacityofMaghMelafromdifferentpartsofIndia.InthismannerthestudyofKumbhMelaalsohighlightstheprocessandoutcomesofurbanization.InthiscaseurbanizationistemporaryasthisisPop-upcity.Urbanizationcreatesnewermarket,particularlywhenitdominatedbylowincomeclass.UnderstandingofthismarketoffersinsightstowardsunderstandingoftheBoPmarket

Chapter7titled‘HRMediatedReverseInnovation:AStudyonTwoMNCsinIndia’analysestheconstructofreverseinnovation,withparticularreferencetoIndia.Thisbookchapterattheoutsetexplainstheconceptofreverseinnovation,throughliteraturereviewandreviewofthepracticesindifferentor-ganizations.ThechapterthenexaminesthereverseinnovationinitiativesforbusinesssustainabilityandvaluecreationoftwomultinationalsinIndia;oneinmanufacturingandtheotheroneisinprocessing(chemical).Thechapterthenassesseshowthesetwoorganizationscouldachievesuccess,andtowhat

Chapter8titled‘ExplicatingGreen—Biofuel—PolicyAcrossIndiaStates’describesthebiofuelpolicyimplicationsinIndiaonsustainabilityandemploymentgenerationopportunities.Inanefforttogenerate[un]skilledemploymentopportunities,addressingenvironmentalissuesandutilizationofwastelandinruralareas,GovernmentofIndia(GoI)envisionedtoprovidefacilitativepolicyenvironmentforbiofuelbasedenergyoptions.Thebiodieselprogrammetookvariedshapeacrossdifferentstateswithfocusonsocial,economicandpoliticalprioritiesofState’swithvaryingfocuslikedecentralizeddevelopment,priorityforlocaluseofresources,allocationofwastelandandgeneratinglocalemployment.Since2003,statesofIndiaadopteddifferentapproachfortheprogrammeimplementationlikecontrolledinterventionbythestateonly,interventionbythemarketmechanism,andmixedwayofintervention(statewithsup-portfrommarketplayers,developmentorganization,localinstitutionsetc.).Theprogrammeactivitiesincludedbiofuelcropplantation;maintenance;productionanddistributionof[by]products;andpriorityforuse.Inthisdynamicenvironmentitisimperativetoexploreindetailhowthebiodieselprogrammewasformulatedforimplementationatstatelevel.Thiswouldexpandtheunderstandingoffacilitativeandinhibitivevariablesofprogrammedesignforpolicyimplementable.Thenextsectionofthischapterdealswithfoursuchpolicyvariables,viz.,1)policyenvironment,2)landallocationissue,3)fundal-location,and4)institutionalarrangements,associatedwiththeimplementationoftheprogrammeacrosstenstates.Thelastsectionondiscussionattemptedtounderstandthedynamicsofthefourvariableanditspotentialimplicationforprogrammeoutcomes

Chapter9titled‘SustainableValueEnhancementinClosedLoopSupplyNetworks’theconstructofsustainablevalueenhancementandlinksthesamewiththeclosedsupplynetworksinthesupplychain.Theresources,whichareusefultousinthisworld,arelimitedandgettingdepletedatanincreasinglyfasterrate.Thechangingmaterialisticneedsandshrinkingcapacitytodisposewastesareposingseriouschallengestohumanity.Indiscriminateexploitationofresourceswithoutmuchthoughtonconservation,reuseandregenerationisposingaseriousthreattocivilization.Insuchascenario,properrecoveryanddisposalofusedparts,productsandmaterialisofparamountimportanceinsupportingagrowingpopu-lationwithanincreasinglevelofconsumption.Thischapter,atthefirstlevelanalysesagenericclosedloopstrategicframeworkundervariousscenarios,capturingtheimplementationmaturityofCLSCinanygivenbusinessorganization.Inthesecondlevelofstudy,anintegratedforwardandreverselogis-ticsnetworkisinvestigated,andacapacitatedmulti-stagelogisticsnetworkdesignisprojected.Inthethirdlevelofmodelstudyinthischapter,amicroscopicviewistakeninwhichajointeconomicorderquantity(EOQ)andeconomicproductionquantity(EPQ)situationisstudiedtooptimizevaluebyusingpropermixofnewlypurchasedcomponents/productswithrecycledcomponents/products.Thethreehierarchicalmodelsareintegratedthroughselectedmodelparametersandchosendecisionvariables.Thesolutionmethodologyisdiscussedwithpertinentcontrolparametersthatemanateoutoftheanalysis.ThecontrolparametersmaybeutilizedbyCLSCnetworkdesignersorpracticingmanagersforeffectivedecisionmakingandcoordinationbycapturingthemajorrelevantaspectsofCLSCbehavior

Chapter10titled‘EnterpriseIntegratedBusinessProcessManagementandBusinessIntelligenceFrameworkforBusinessProcessSustainability’discussesconceptsofoptimizedandsustainableperfor-manceinthecontextofintegratedbusinessprocesses.ResearchstudieshavereportedInformationandCommunicationTechnology(ICT)asoneoftheprerequisitesindevelopingandmaintainingefficient

Chapter11titled‘DeterminantsofSustainableConsumptionBehaviour:ReviewandConceptualFramework’dealswiththeissueofsustainableconsumption.Thechapteraddressesfactorswhichleadconsumerstowardssustainableconsumption.Inthischapter,astudyreviewed82empiricalarticlesonsustainableconsumptionpublishedduring1997to2014.Thereviewexploreddifferentfactorsaffectingsustainableconsumptiondecision-making.Thefactorswerecategorizedaspersonal,behaviouralandsocio-cultural.Ataxonomicsynopsisofthefindingsispresentedinanextensivetable.Thechapteridentifiesvariousprevalentmotives,facilitatorsandbarriersaffectingsustainableconsumptiondecision-makingandprovidespossibleexplanationsforinconsistenciesobservedinconsumers’sustainableconsumptionbehaviour.Aconceptualframeworkisproposedthatconsidersvariousmotives,attitudesandbarriersandexplainshowtheyarerelatedtosustainableconsumptionbehaviour

REFERENCES

InternationalInstituteforSustainableDevelopment(IISD).(1992).Business Strategy for Sustainable

Development: Leadership and Accountability for the 90s.DIANEPublishingCompany.

practices:Impactonperformance,SupplyChainManagement–.International Journal (Toronto, Ont.),

17(3),290–305.

wide-on their vendors In most developing countries, poor regulatiwide-ons and weak enforcement of envirwide-onment laws leave the SMEs on their own, to improve their environmental practices However, their limited resources and managerial capabilities are often inadequate to undertake sustainability practices This chapter presents the findings of a research conducted among engineering SMEs in India It proposes a lifecycle approach towards environmental practices and discusses potential business benefits and value creation from this The chapter gives a roadmap for green business strategies, which SMEs can imple- ment within their organization.

1 INTRODUCTION: WHY SMEs?

In our lifetime, we have witnessed some of the worst natural calamities Warnings of polar ice melt, tsunamis, hurricanes and snowstorms are increasingly frequent Death and destruction from such causes are steadily on the rise Are these the vagaries of the planet or is this a response to human activities? This question has been extensively debated in the last few years, but has ended up creating more ques-tions than answers Should the environment be prioritized over industrial growth? Does the planet come ahead of people? Is technology leading to faster depletion of natural resources? Many such uncomfortable questions are now challenging the very structure of free markets

However, the argument that unbridled consumption on a planet with finite resources, will inevitably lead to collapse, is gaining momentum History offers ample proof of civilizations collapsing because

Environmental Sustainability

Practices for SMEs

Gurudas Nulkar

HRD, India

they had overlooked resource overuse (Diamond, 2000) Over the last decade, many corporations have come to terms with this prognosis and have taken up the path of sustainability Many global corporations now have sophisticated sustainability programs indicating a level of acceptance to the environmental imperative However, even as the awareness grows within society and governments, small enterprises seem to be spared Their small size is effective in warding off attention and on the other hand their sheer number poses an enforcement challenge for authorities Although their scale of operations renders a proportionately small environmental impact, it is estimated that their collective impact may be as much,

if not more, as that of large industry Moreover, many SMEs are part of global supply chains of large corporations and undertake manufacturing activities for them As key suppliers to the large corporations,

a significant portion of their environmental burden is thus transferred to the SMEs They contribute significantly to a nation’s economy and its GDP and from a precautionary principle then, it is imperative that SMEs be encouraged to improve their environmental performance within their own operations The potential benefit from this is far too large to be neglected

SMEs generally adopt reactive strategies which focus on compliance rather than sustainability (Hobbs, 2000) Recent studies show that the firm size is one of the major determinants of a firm’s green strategy – environmental actions undertaken are inversely proportional to the company size (Bianchi & Noci, 1996) In the 2011 survey on Sustainability and Innovation, the MIT Sloan Business School too had simi-lar findings (MIT Sloan Sustainability Dashboard) SMEs generally follow business instincts to reduce resource use and waste and are keen to save costs through efficient resource usage But those practices which need investments or inflict costs are not popular among them Employing clean technologies and life-cycle analysis often does not find favor among small firms When faced with the prospect of no business gains, SMEs tend to disregard environmental improvement as a non-priority expense (Esty & Winston, 2009) In most developing countries, the potential contribution of SMEs to a cleaner environ-ment may not have been realized yet Taking the case of India, current policy and legal frameworks do little to encourage or support SMEs in this direction As the adoption of sustainable practices by SMEs is critical for national environmental goals, they must be encouraged to go beyond the usual eco-efficiency practices While the magnitude of impact on the environment of an individual SME will depend on the technologies employed, packaging used, energy consumption patterns and distribution and supply chain usage, there is no doubt on the necessity of them improving their environmental performance

The author’s research with SMEs shows that green business practices offer distinctive business benefits for SMEs Large corporations increasingly demand environmental management systems from their suppliers since greening their supply chains contributes directly in their own sustainability efforts Similarly, environmental management certifications are integral part of vendor qualification criteria for many companies Moreover, in many developed economies, bankers and financial lending institutions require environmental risk assessment from their loan applicants Similarly, many insurers charge higher premium from SMEs who are exposed to environmental risks In the European Union, extended producer responsibility (EPR) requires corporations to be responsible for their products, no matter where they are produced This has prompted large companies to disqualify SME suppliers who do not meet the envi-ronmental standards On the other hand, SMEs in consumer businesses have witnessed growth in green consumerism not just in developed economies but also countries like India To serve this market, SMEs must go beyond green manufacturing This requires technical and managerial skills, but will extend the first mover advantages to those early in the game These are just some of the obvious business benefits accrued through green practices

The objective of this chapter is to help SMEs understand the benefits of green business practices and offer them a simple framework for greening their businesses The chapter is draws upon the results

of a three-year study undertaken by the author with engineering SMEs in India The research examined green business practices of over 70 SMEs from the product lifecycle perspective Additionally, in depth interviews with large corporations, who have SMEs in their supply chains, helped gain deep insights into environmental practices The study has been published in international journals and has received a positive response from policy makers, industry associations and SMEs themselves This chapter builds

on the findings and discussions in the research and intends to help SMEs realize how green business strategies can result in competitive advantage for them Consequently, this would help transform what are today cost burdens into strategic investments for tomorrow The central argument of the chapter is that businesses must recognize the value arising out of the firm’s environmental impact and strategically position itself to gain competitive advantages

2 COMPETITIVE OPPORTUNITIES POSSIBLE WITH

GREEN BUSINESS PRACTICES FOR SMES

The ability of SMEs to create, access and commercialize new knowledge in their own markets is mental to their sustained competitiveness The formation of strategy and its implementation are at the core a competitive business Competitiveness is a comparative concept of the ability and performance

funda-of a firm to sell and supply goods and or services in each market In almost all literature on strategy, the leading hypothesis is that sustained superior performance of firms arises from sustained competitive advantages (Powell, 2001) Competitive advantage implies that firms can satisfy customer needs more effectively than their competitors This can be achieved through lower costs or differentiated advantages which customers value and are willing to pay for Both these situations were evident in the author’s research on SMEs adopting green business practices Thus, green strategies can potentially lead to the traditional generic outcomes of business strategy - cost leadership and differentiation Responses in the research showed the presence of both forms of benefits in firms which practiced environmental man-agement It is important to note that these benefits were a result of green practices and could not have been achieved by other means Porter and Linde (1995) have argued that the most competitive firms are not the ones with cheapest inputs or largest scales, but ones which have the capacity to innovate more They discuss several examples where environmental regulation has caused firms to innovate for solutions thereby creating a cost advantage Firms which proactively pursue green strategies stand to benefit in many ways than just profits A green competitive advantage is the potential for environmental performance to improve long term profitability

2.1 Benefits of Going Green

Based on research conducted in other countries and the author’s own research with SMEs in India, it was found that SMEs enjoy several benefits from environmental management These benefits vary with the extent of practices, nevertheless, they offer compelling reasons for small firms to undertake green business practices The list of benefits arising from green practices is shown in Table 1

Unique combinations of benefits were experienced by many SMEs These covered the generic strategic positions which lead to competitive advantages for firms Such advantages are gained because of an in-

novative and resourceful organization and are difficult to observe by competitors The collective learning

of the organization is hard to observe and imitate, effectively turning it into a competitive advantage Our research shows that the benefits of lower costs are commonly observed in SMEs These are a result

of reduced usage of resources, lower waste, increased recycled content and lower environmental risks Most of these benefits are realized in the short-run and are easiest to undertake, without much disruption

in daily operations As this is important for SME operations, the research showed cost saving benefits

to be the most common within SMEs

However, as each firm practices resource productivity, there is a limited scope for a competitive vantage from low costs On the other hand, differentiated products or a differentiated firm image can be harder to imitate and is sought after through competitive strategy However, the benefits of differentiation from green practices, were less evident in this research, than those of cost saving At the current levels

ad-of green performance, cost benefits seem to be more than differentiation benefits

2.2 Perils of Not Going Green

As a part of supply chains of global corporations, SMEs are obligated to meet the qualification criteria set by their customers Increasingly, large corporations are demanding environmental management practices and in some cases certifications from their vendors On the other hand, some companies value green performance but do not make it mandatory In both the cases SMEs who have overlooked going green stand to lose Many large corporations that the author interviewed during the research indicated a preference for green performance Some companies set environmental standards which suppliers must meet, some demand environmental reporting while many are planning green qualification for their ven-dors in the near future For example, companies like Walmart are keen to source from India but require

a high degree of environmental management from their vendors Those SMEs that already are on the job stand to gain a competitive advantage straight away

Table 1 Business benefits of green practices

Savings from reduced consumption of materials and resources Lower Cost advantage

Savings from use of increased recycled content Lower Cost advantage

Financial incentives from lending institutions Lower Cost advantage

Lowering environmental risks in business Lower Cost advantage

Improvement in quality of products Differentiation advantage

Advantage with some current customers Differentiation advantage

Advantage in acquiring new customers Differentiation advantage

Export opportunities due to environmental management Differentiation advantage

The benefit of lower environmental risk is perhaps least understood among SMEs Firms may find it challenging to invest in mitigating risks which cannot be quantified in many cases While in developed economies firms would invest in compliance and in some cases beyond compliance, only to reduce environmental threats; this was not evident in India SMEs may fall in either one of these situations: (i) environmental risks are not perceived at all due to poor environmental awareness (ii) environmental risks are not considered significant ‘Won’t happen with me’ is not a mitigation of environmental risks,

as statistics from other countries shows

Several studies conclude that SMEs lag in environmental practices when compared to large firms (Studer, Welford, & Hills, 2008) Most are agreed that SMEs are motivated more by compliance and cost saving than gaining a competitive advantage (Rowe & Hollingsworth, 1996) (Worthington & Pat-ton, 2005) However, SMEs must realize the business case for going green and move in to gain early mover advantages

3 BEYOND MANUFACTURING: GREENING THE PRODUCT LIFE CYCLE

Lean manufacturing, Six Sigma and a host of other such techniques help firms to improve resource tion and reduce waste These practices that help save costs are prevalent in SMEs already However, these low hanging fruits are observable and imitable by competitors, and firms operating at high efficiencies hardly enjoy its benefits, since most competitors would do the same Moreover, for the environment, these are generally located towards the end of the pipe Most of these practices fall within the scope of manufacturing, are tangible, measurable, and offer something “to act on.”

utiliza-On the other hand, greening the other stages of the product life cycle is not always obvious and requires

a certain degree of environmental awareness and knowledge Moreover, as green practices in these stages may not lead to cost reductions, they are likely to be overlooked by SMEs SMEs can gain significant benefits by greening not just the manufacturing stage, but the other parts of the life cycle Designing for the environment and manufacturing with cleaner technologies has more beneficial impacts than end-of-pipe greening Sourcing from suppliers who practice environmental management, distributing with green supply chains, designing the product for low resource use in its lifetime and finally designing the product for safe discard and making it suitable for reuse or recycle, are all ways in which the SME can stand to gain The author’s research examined the green practices of SMEs in all the generic stages of a product life cycle- planning, design, sourcing, manufacturing, and sales

The research employed a conceptual framework developed based on the literature review and in-depth interviews (Figure 1) The framework proposes that the level of green performance of a firm depends of the green practices across the generic product life cycle and that the business benefits accrued are a result

of the level of green performance that the firm practices The research supported this proposition and showed firms with green practices in stages other than manufacturing enjoyed several benefits shown in table 1 On the other hand, firms which practiced green behavior mainly in the manufacturing benefited from cost savings, which is a necessary, but not a sufficient condition to enjoy a competitive advantage.Figure 1 shows the generic stages in a product life cycle This conceptual framework makes a propo-sition that the benefits a firm can expect from greening are related to the level of green performance it undertakes This level is decided by the scope of green practices that the firm employs in the generic product life cycle The author’s research supported this proposition The benefits are indeed correlated

to the activities within the product life cycle Firms which employ green practices in all the stages would

benefit the most However, the research also showed that most SMEs are good at green practices in the manufacturing stage, but very few consider the other stages SMEs keen to enjoy the benefits of going green then need to increase their scope of green activities in the product life cycle This can be easily accomplished through the questions which the firm can ask itself at each stage An easy to use Green Questionnaire is shown in Table 2.

A planned approach is recommended The following steps will ease the process

1 Set Up Environmental Vision, Objectives and Targets: The first step towards a greener

orga-nization starts with setting goals, objectives and targets The establishment of quantitative goals provides a clear point of reference for developing and applying metrics Unless management and employees have a clear understanding of exactly what is expected from the process and what will be evaluated for ascertaining this, attention to environmental issues will be unfocused and motivation will reduce over time The old English adage works here - “What’s measured, improves.” Precise and measurable objectives are also set A useful guide for setting objectives is the Coalition for Environmentally Responsible Economies (CERES) publication of “The Ceres Principles”1 This

is a ten-point code of corporate environmental conduct Similarly, the International Chamber of Commerce (ICC) has prepared the ‘Business Charter for Sustainable Development’2 which sets out

16 principles for environmental management These documents can be used as guiding principles.Based on the research, the author suggests a simple three level approach to setting green targets for SMEs This is shown in Table 3

Another useful tool for SMEs is the Environmental Policy check-list which is available free at national Network for Environmental Management (INEM) website here http://www.inem.org/default.asp?Menue=94

Inter-2 Make an Empowered Cross Functional Team: This is an important step Many SMEs have limited

managerial and technical capabilities These can be overcome by making a cross functional team a team should be formed This team will comprise personnel across departments and specializations

Figure 1 Green practices in the product life cycle

Table 2

Product Life Cycle Stage Questions on Green Activities within Each Stage

Planning Does the environment find a mention in the SME’s Vision or Mission?

Does the firm set environmental targets?

Do any formal environmental management systems exist?

Is there a designated officer for environmental activities?

Are the strategic objectives and targets communicated within the organization?

Do we need to modify any products to reduce their environmental impact at any stage?

Design Can we design products to use lesser materials?

Can we design our products to be able to use any clean technologies?

Can we design products to use more recycled content?

Can we design products to use lower consumables in their use?

Can our products be recycled or reused at end of life? Whole or part?

Can our products be discarded in an environmental safe manner?

Sourcing Can we source from vendors with environmental management systems?

Can we set environmental targets for our suppliers?

Can we incorporate and input regulations - RoHS 26 , REACH 27 , etc.?

Manufacturing Are any of the following tools and techniques employed in manufacturing? Lean management, Six

Sigma, clean technologies, GreenCo Rating System, etc.

How is environmental compliance and regulation dealt with?

Do we monitor the following - Water consumption, Material use, Waste generated, Emissions, Effluent, Energy consumed?

Distribution Can improve packaging for reducing transport load?

Can we monitor fuel consumed in distribution and storage?

Can we take back any packaging material for reuse/recycle?

Sales Are our environmental efforts communicated to customers? How?

Can our firm take a up a green competitive position?

Is the firm’s environmental performance used to influence buyers during the sale?

Consumption of my products Does my product consume energy or other resources during use? Can we design the products for

efficiency in its use?

Is my product designed to last a lifetime of use?

Discard Can my product be recycled? Whole or parts?

Can my product be reused? Whole or parts?

Can my product be discarded safely and within the laws of the land?

Table 3

First Compliance and Control Pollutants, emissions, energy

Second Prevention and Reduction Materials use, direct energy, indirect energy, water, non-product output

Third Design for environment Life cycle assessment

The team will be empowered to facilitate achieving targets Their first task is to communicate the targets, efforts and benefits expected, across the organization To reach the organizational goals, they will identify tools and technologies, disseminate best practices and measure the progress This

is an add-on duty for existing employees and the author recommends remunerating the efforts

3 Planning with the Green Questionnaire: The team then takes up the Green Questionnaire In

many cases SMEs may not have all the stages of the product life cycle within their own firm Some SMEs may be an outsourced manufacturing rather than a complete product design and manufacture partner In this case the firm would have no control on the design stage and in some cases, may be even the sourcing stage The important part here is to establish which of the stages can the firm work upon and then ask the suggested questions in those stages Some questions may require sup-port from environmental consulting firms Especially decisions on product design, clean tech and discard The firm will do a cost-benefit trade off when considering external help

The Eco-design health check is a useful online tool available free at the International Network for Environmental Management (INEM) website here http://www.inem.org/Default.asp?Menue=190

4 Prioritize the Stages: Going green throughout the firm’s activities, all at once, can be highly

strenu-ous to small firms This requires advanced technical capabilities and managerial band width Such

a large-scale intervention may result in operational disruption consequently leading to customer dissatisfaction Prioritizing the firm’s activities by stages is a less risky approach to greening For example, in phase one, the firm may choose to spend the next six months in greening manufacturing and operations, followed by sourcing and distribution In phase two, the firm may decide to work

on its product design and clean tech solutions In this manner, the risks of business disruption are lowered

5 Make an Implementation Plan: This is not the same as the planning exercise Some of the key

reasons why project implementation fails with SMEs are ambiguity in communication, absence of empowerment to the member and lack of strategic will to complete the project These risks must be mitigated to ensure an effective implementation A key aspect of successful implementation is use

of relevant and appropriate measures If you wish to improve something, then you must measure

it Identifying key metrics is not a simple task, managers may be tempted to take up low hanging measures However, it is important to spend time on identifying the right measures, some of which may not be obvious For example, if water is the resource being worked upon, there could be vari-ous metrics:

a Water consumption at machine level;

b Water consumption at department level;

c Water consumption at aggregate plant level

What you select will be specific to your business Often, measuring water consumption at machine level may be too expensive and may not be required On the other hand, if the firm makes ready to drink beverages, then measuring water consumed at each machine might be very important

4 FROM GREEN BUSINESS STRATEGIES TO A COMPETITIVE ADVANTAGE

For green strategies to work up a competitive advantage, they must take a holistic approach to integrate all the obligations towards the environment The planning process must be able to address the following factors (Figure 2):

• Regulation and Compliances: Staying within rules is the primary responsibility of a firm

Governments have been increasingly pressing producers to improve their environmental mance The REACH legislation (EUR, 2009) in the EU makes it mandatory for producers to register every chemical they make, is one such example The Bharat Stage 4 emission norms force automobile manufacturers to design their products to meet the standards Extended producer re-sponsibility is on the horizon already New ‘take-back’ laws may soon find their way in the Indian markets They emphasize “producer responsibility” that holds manufacturers responsible for their packaging

perfor-• The Environment Itself: The firm’s green management process must focus on reducing its

im-pact on the environment – in terms of consumption of natural resources and pollution of air, water and soil A strategic focus will drive firms to redesign their products and processes for the environmental As SMEs form a large segment of the Indian industry, it is imperative for them to indulge in sustainable practices

• The Customers: SMEs have been facing pressures from their large buyers to improve

environ-mental performance In the automobile industry in India, car makers are increasingly pressurizing their vendors to align them to achieve their own green goals Those SMEs which are proactive in green performance can offer the differentiated advantage For example, when Toyota Kirloskar Motors in India wanted self-adhesive foam parts for the dashboard of Innova, the pre-qualification was meeting strict VOC norms in manufacturing This led to automatic disqualification of most

of the small firms making such components without considering these high standards Only a few large ones who had invested in these technologies stood to benefit Similarly, many cost leaders

Figure 2 Factors which must be addressed by green strategies

with excellent quality records, in the electro-plating industry are disqualified from supplying the airline industry, which is known to follow very high waste and pollution standards Much research has shown that here is a growing class of customers who care for how the product they buy is made and what is let out in the process Green strategies will help firms choose their customers, decide the products and manufacturing processes and invest in sustainable practices.

• The Business Risks of Environmental Violations: These can cripple a small firm Risks of

liti-gation can result in loss of man-hours in SMEs and penalties can be expensive The social license allowed by the society to do business, can be taken away by them A proactive strategic focus to the environment can help mitigate the environmental risks of businesses

• Industry Structure: Large companies with strong research base can influence policy makers to

strengthen or modify current industry standards SMEs may find it challenging to respond in short times and often with large unbudgeted cash outflows which can potentially make them weaker Competitive playoffs can change in an industry when competitors bring out changes in their prod-uct design which can drive down lower production The EU made it mandatory for cell phone manufacturers to use the micro USB charging pin This is done to produce and sell fewer chargers Many SMEs make phone chargers for European markets Those with low sunk costs will be more competitive

• Community Awareness and Social Initiatives: Are much more visible NGOs have been

suc-cessful in creating customer awareness about environment For example, the WWF “Check Your Paper” campaign is a a global database of eco-rated papers It helps paper buyers find prod-ucts with the lowest environmental impact This campaign includes about 100 paper products with “good” or “excellent” environmental score Customers can easily pick out green businesses

by such awareness drives Public opinion is increasingly being influenced by social initiatives International public opinion also matters in issues with a high impact potential (Elkington, 1994 Winter)

5 SETTING YOUR GREEN STRATEGY

To make the transition from a compliant firm to a strategic environment managed one, may seem to be

a herculean task for many SMEs However, it can be simplified by following well defined paths which the firm can take Orsato (2006) suggested that the generic competitive strategies can be superimposed

on environmental framework and by cross tabulating the two generic strategic positions with internal processes or products the result is four generic green strategies (Figure 3) It is for each SME to decide its own course to reach the strategy 3 or strategy 4 quadrants Some of the key aspects of each strategy are discussed below

Strategy 1: Eco-Efficiency

This makes an easy starting point for SMEs The intention is to lower costs while improving mental performance within the firm’s operations Many of these practices are easy to observe, measure and improve This strategy emphasizes regulatory compliance and industry compliance, but does not make product changes This strategy places low demands on managerial capabilities and investments,

environ-while yielding cost benefits This is the least disruptive step for an SME and many SMEs may already

be at advanced stages in this step Benchmarking your operations with industry leaders and continuous seeking of new opportunities to reduce environmental impacts is the hallmark of a good firm

Strategy 2: Beyond Compliance

After setting the path of continuous process improvement, the firm can now seek out differentiation in their operations This strategy may need investments in clean technologies or may need to discard age old practices making way for more efficient ones This strategy needs clear understanding of technolo-gies and their capabilities In the author’s research, some SMEs worked closely with their customers to differentiate their operations This is an effective way of cooperating for mutual benefits Your customer benefits from a cleaner supplier and the firm benefits from a differentiated image

Strategy 3: Eco-Branding

Differentiating with green products is not the easiest strategy for many SMEs and hence this must be preceded by the first two strategies This stage requires substantial work within the firm’s products’ life cycle Green differentiation could be based on the design of the product, manufacturing or consumption

of the product Each requires different capabilities from the firm Moreover, green products need a tomer buy-in The value brought on the table must be important to them It is not unusual for customers

cus-to forgo green products for a cheaper one and therefore pulling off the eco branding in the market could

be a bigger challenge, requiring strong marketing capabilities

Figure 3 Generic green competitive strategies

Source: Competitive environmental strategies: When does it pay to be green? Renato Orsato, California Management Review; Vol 48, no 8, Winter 2006.

Strategy 4: Environmental Cost Leadership

This could be the last strategy which a small firm may want to explore Most industry structures do little to support green businesses and hence firms in the green business may need to realign their value chains to suit their sourcing, production and distribution There are many examples of green products which are cheaper than conventional or lowering costs of consumption Environment friendly packaging using high recycled content can be cheaper than virgin materials On the other hand, this strategy can be viewed as getting a higher price realization for environmentally designed and manufactured products

6 NETWORKS ORGANIZATIONS FOR SMES

Several international organizations offer free and paid advice to SMEs for improving their environmental management systems A small selection is given here

• International Network for Environmental Management (INEM): Is the world federation of

non-profit environmental management associations and cleaner production centers Their network has over 30 members and affiliated environmental management associations and 10 cleaner pro-duction centers in more than 25 countries worldwide The main goal is to minimize the environ-mental impacts of industrial operations, and to help business and industry reconcile the impera-tives of development and the environment www.inem.org

• European Environment Agency (EEA) Sustainable Development Online (SDO): This gives

access to significant sustainable development sites It provides descriptions of, and links to, many hundreds of sites covering the broad subject of sustainable development, including networks and tools for business http://sd-online.ewindows.eu.org

• The Environmental Management Navigator: This is a capacity building package on

environ-mental management tools It is devised as a response to SMEs’ need for assistance in selecting the most suitable environmental management tools per internal organizational and external market demands Tools covered range from environmental management systems, cleaner production as-sessment and environmental cost accounting to environmental performance measuring and re-porting www.em-navigator.net

• EMAS Tool Kit for SMEs: This is a simple guide to assist small companies to implement an

environmental management system that meets the requirements of EMAS EMAS requirements are demanded by many EU clients, and Indian SMEs who wish to export will need to comply with EMAS For such SMEs, this is an invaluable site www.inem.org/emas-toolkit

• Environmental Management Tools for SMEs – A Handbook: This Handbook discussed how

SMEs can use environmental management to improve business performance It focuses on three questions: What is environmental management? Why should SMEs use it? How is the tool used? http://reports.eea.eu.int/GH-14-98-065-EN-C/en

• Environmental Good Housekeeping Guide for Small and Medium-Sized Enterprises:

This guide is specifically designed for SMEs to identify simple, practical, common sense good housekeeping measures that can reduce the costs of production, enhance the company’s overall productivity and mitigate environmental impact www.inem.org/htdocs/inem_tools.html#Anchor-Environmental-51548

7 FOSTERING GREEN BUSINESS STRATEGIES IN SMEs:

RECOMMENDATIONS FOR OTHER STAKEHOLDERS

One of the objectives of the SME research undertaken by the author was to suggest a framework for policy makers to encourage the SME sector to go green The era of enforcement is over The new age must be fostering towards a greener economy The policy makers and other stakeholders of the SME sector have a large and important role to play The author proposes guidelines for policy makers The recommendations are based on the Four-force Framework which the author had prepared from the re-search This frame work is shown in the figure

The framework shows that an SME’s green performance depends on four forces namely – awareness, barriers, influencers and customer demand Every firm is subjected to these four forces act in varying strengths depending on the sector Force 1 can result in a proactive behavior, while the other three forces are likely to elicit a reactive behavior Based on this framework, the recommendations are made to im-prove awareness, reduce barriers, strengthen influencers, and encourage customer demand For this, not only the SME owners must participate, but also various other stakeholders too The recommendations are specifically directed to be beneficial for SME owners and policy-makers

Force 1: Awareness – The Backbone of the Dilemma

Throughout the analysis, various sections of this questionnaire have more than once revealed a singular aspect, which, the author feels, is the backbone of the problem The environmental performance of an SME is highly dependent on the owner’s environmental awareness This seems to be the single most critical factor in improving SME green performances The statistical analysis of responses shows a highly significant dependence among the two variables And thus, the SME owner’s awareness seems to be the key to change This is an importance discovery for policy makers, trade associations, environmentalists and chambers of commerce Concerted efforts to improve environmental awareness among SMEs are not required It is possible when all these stakeholders plan towards this goal

Figure 4 Four forces acting on green performance of firms

Role of Industries

The local chambers of commerce and trade association can facilitate environmental awareness programs and training on environmental performance improvement Within an SME cluster, these bodies have size-able membership of local firms For example, in Pune, the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) is the largest chamber of commerce in Maharashtra They have influential industrialists and politicians on their advisory boards and panels This organization has, over the last few decades, helped local industries in several challenges – improving quality, competitiveness, knowledge

of taxation, government schemes and subsidies etc They are well suited to focus their efforts on helping create awareness among local industries as well as holding advanced environmental training programs.Role of Bankers

Many SMEs build relations with their bankers For some small firms, the bankers lend financial advice and may even sound an alarm on potential financial threats Bankers are often accorded a high credibility

by SME owners, who acknowledge the critical role of the financer in their firm’s progress This puts bankers in a unique position – one that can be leveraged to improve environmental awareness The PCBs have not been effective in communicating environmental standards and norms Banks can help spread awareness about compliance, since they stand to benefit from it If their customers (loan beneficiaries) can lower their risks of environmental violation, then banks in turn lower their business risks With this motive, they can diffuse environmental awareness and help in improving SMEs performance

Force 2: Reducing Barriers

The barriers which came up in the research are unique to SMEs and their constraints Finance has been the biggest barrier Even in the other section, SME owners considered this barrier important in diffusing green practices The following recommendations are proposed to reduce this barrier

Subsidize Green Certifications

During the 1980s, the government subsidized ISO 9000 certifications in within SMEs Those who ceived a certification could claim Rs 75000 as a partial refund of expenses This helped SMEs finance

re-a certificre-ation which they did not consider re-a business priority The TQM movement enhre-anced the petitiveness of many SMEs While this is ‘private profit’ as opposed to ‘public good’ (Orsato, 2006)

com-of environmental practices, nevertheless, this provides a compelling argument The rate com-of diffusion

of environmental practices within SMEs can be accelerated by incentivization In one section of the questionnaire, 68% respondents strongly and 24% respondents somewhat agreed that such a financial incentive would benefit SMEs

Preferential Financing of Green Activities

Costs associated with green strategies are significant for SMEs The finance and other scare resources must be diverted from mainstream business activities to unproductive areas Here, three stakeholders have a role to play Government, Bankers (money lending institutions) who can offer lower interest rates for green capital expenditure and investing in clean tech and Insurers who can offer lower insurance premia for conditions of lower environmental risks

Direct financial assistance programs for environmental equipment purchase can promote purchasing such equipment as well as stimulate a demand for environmental technologies This has been success-fully implemented in France, where Environment and Energy Management Agency (ADEME) provides direct financial assistance to projects going beyond compliance for an investment projects in air pollution reduction, waste management, soil remediation, renewable energy, energy efficiency, and cleaner trans-portation Similarly, the German public bank “Kreditanstalt für Wiederaufbau” has a “Special Fund for Energy Efficiency in SMEs3” which covers up to 80% of costs for SMEs to receive professional advice

on energy efficiency improvements The Korean Ministry of Environment provides financial support

to SMEs in the priority areas of air pollution reduction and increased recycling SMEs that voluntarily install low-NOX (Nitrogen oxide) boilers can get a 90% subsidy from the Ministry, which also operates

a Resource Recycling Promotion Fund to provide grants to eligible small businesses (Mazur, 2012).Low-interest loans are granted in several countries in the European Union The loan policy can be used to provide both positive and negative incentives to businesses The Development Bank of Japan uses environmental screening to evaluate the level of corporate environmental management India has SIDBI4, a public financial institution whose objective is “to be the principal financial institution for

the promotion, financing and development of industry in the small-scale sector” They are thus in a

unique position to offer low interest loans for environmental technologies The Energy Saving Trust5 a non-profit organization in the UK, provides zero-interest small business loans of up to GBP 100,000 to help businesses install renewable energy technologies or measures that reduce energy consumption The Green Deal6, a UK government program, provides businesses with loans for energy efficient equipment without down-payment and with payback tied to cost savings obtained over the course of its operation.Facilitation Centers to promote environmental awareness and green benefits

Here again awareness shows up This time as admitted by SME owners themselves 98% agreed that owner’s awareness needs to be improved while 95% agreed that green benefits are not easily understood

by them There is highly significant agreement among respondents on both these points To add to this, the statistical testing showed a highly significant dependence of owner’s awareness and level of green

performance of the firms This further strengthens the recommendations that there must be investment in promoting industrial awareness CII has played a seminal role in Green building standards in India Their stewardship is widely accepted across industries which this gives them a favorable position to promote environmental awareness too State governments can open facilitation centers specific to SME clusters Since SMEs in a region generally learn from each other, this characteristic can help diffuse practices of one firm within the cluster These centers can facilitate sharing of best practices across industries For example, in France, 21 Technical Industrial Centres7 covering 32 SME dominated industry sectors, act

as facilitation centers They work with support from different business organizations and funded through fees paid by businesses The National Industrial Symbiosis Programme (NISP)8 was launched in the UK

in 2005, and provides information, networking and matching service for firms In this research, 93% respondents felt that green practices should be shared within SMEs, and this can be facilitated by the facilitation centers A similar role was played by the National Productivity Council (NPC) in increasing awareness about productivity This can be replicated on the environmental performance improvement.Improve and Enlighten State Pollution Control Boards (PCBs)

The PCBs offices are understaffed and under skilled (Sahu, 2010) Increasing awareness should start with the enforcers Improving the knowledge and awareness of its employees is the first step Are they periodically trained for skills improvement? Are they evaluated and mentored? Are they sensitized to-wards the environment? These efforts would result in more credible officers visiting SMEs The PCB should assume the role of a facilitator and shed its image of an inefficient and unaware enforcer At the very least, there is an immediate need of simplifying regulations, making them more understandable in common language; establishing SME specific cells within the regulators to facilitate enforcement and increasing the number of staff

The CPCB can learn a pick up some successful ideas from the US EPA For example, the US EPA has substantial experience in measuring outcomes of environmental compliance assistance to demonstrate the effectiveness of preventing non-compliance Direct compliance assistance is provided by the EPA through on-site visits, workshops, training programs, distribution of guidance documents and assistance provided through sector-specific, web-based Compliance Assistance Centers Their Small Business Environmental website9 is sectoral, user friendly and comprehensive It is handy for small businessmen and is the single point gateway of most SME requirements

Force 3: Strengthening Influencers

Merely reducing barriers is half the story This research has established the role of influencers to green practices within SMEs Each of these influencers can be strengthened with a view of promoting greener SMEs The recommendations are:

Personal Awareness, the Biggest Influencer

In this section, too, awareness comes up as the biggest influencers towards green practices The earlier recommendations can be implemented to improve personal awareness

Bankers and Insurers as Influencers

This research shows that banks and insurance firms have had the least influence on SMEs Finance is the single factor agreed upon across various industries and SME size Therefore, without support of financing institutions, the movement will lack ‘teeth’

SMEs rely on auditors, banks and insurance firms as credible sources of information SMEs frequently interact with them and this provides an opportunity to have them influence their SME customers These institutions can disseminate information and exert pressure on SMEs to pursue environmental improve-ments to achieve greater business success Banks can ask for an environmental checklist during loan approval and insurers can ask for environmental risk identification and control plans Banks and insurers can also offer favorable loan or insurance policy conditions to businesses with green credentials At the international level, the United Nations Environment Program has published policy documents to promote sustainability in the banking and insurance sectors10 On the ground, the Royal Bank of Scotland follows the Equator Principles guidelines for assessing environmental and social risks of project finance transac-tions The Irish EPA has started discussions with the Irish Insurance Federation to try to make sure that insurance companies introduce environmental requirements for their clients, although this process is at

an early stage Similarly, insurance companies in Korea are considering the differentiation of insurance premiums depending on the level of environmental risk In Netherlands, the ABN Amro bank played a key role in influencing new project financing to have an environmental report Banks, lending institu-tions and insurance firms can have a positive influence on undertaking green practices

The Influence of an Aware and Enlightened Society

Without human resources, it is inconceivable for firms to create products or services The human sources firms employ are an integral part of the society The same society which stands to gain from

a better environment From this position, they can influence SMEs to go beyond compliance This quires environmental education at the school and college level As children are the future of the nation, they must be aware how a healthy environment is the key to human health and happiness For this, they must learn how industry can improve or degrade the environment This researcher browsed the various school text books on environmental education None of them had any direct mention of how industries have harmed the environment till today They talk about consumption of natural resources, and about polluting industry The pollution created by consumption is not dealt with in depth and undermines the impact on the environment This needs a correction and teachers trained to teach these courses Only then can we expect responsible citizen who have the power to influence industries into improved behavior.Encourage Firms to Seek Greener Vendors

re-Large firms have been influential on SMEs on many occasions They have demanded quality, productivity, safety and social good It is imperative that they now influence environmental performance in SMEs It

is possible for government to encourage large firms to do so Here too, associations like CII and FICCI can play the lead role They have the power to influence their members and the government, and have

a history of commendable efforts which have benefitted Indian industry This can promote emerging export opportunities for SMEs ISO 14001certification is now an integral part of the European Union’s Eco-Management and Audit Scheme (EMAS, 2013) Such requirements will increasingly be essential

for exporting to developed countries and those who are prepared can secure such opportunities In the European Union, there are several examples of government encouragement to diffuse green practices within the supply chain In Ireland, a Business-to-Business (B2B) Green Mentor Programme11 was launched in 2003 by Regional Waste Management Office This program encourages large companies

to provide guidance on waste prevention to their SME vendors In Scotland, the Zero Waste Program promotes voluntary agreements with retail companies who then pass on the resource efficiency require-ments down the supply chain

Influencing Green Behavior Through Awards and Recognition

There is no dearth of awards for good business practices, quality and productivity achievements This must be supplemented with recognition of environmental practices Awards and social recognition promote a competitive atmosphere and one that leads to innovation Instituting regional, sectoral and national awards can help spread innovative and competitive practices within SMEs Recognition offers several benefits Business leaders have an innate desire to be recognized as the best or at least better than the competition This is possible with awards and therefore this recommendation finds credence.Influencing Through Good Governance

What Indian industry lacks today is a system of uniform and strict enforcement Currently, there is a limited liability of environmental violation Many researchers feel that violators are not made to bear the full costs of environmental degradation liabilities The perception of PCBs with SME owners has to

be corrected If they do not improve their own knowledge and awareness, their credibility is at stake If they do not do their job of enforcement effectively then SMEs will believe that their competitors may not strictly follow norms This can prompt them to follow suit, since not doing so will increase their costs On the other hand, a just enforcement system can encourage SMEs to undertake green practices without the fear of a competitor getting away and reducing expenses

Certification as an Influencer

There are numerous instances of unscrupulous firms taking advantage of green consumers In absence

of clear definitions, green labels and eco-branded products can be manipulated to the advantage of the

seller ‘Greenwashing’ is the term given to such incidents One way to avoid this is that policymakers can

introduce green certifications which are specific to an industry Electroplating industry certifications will

be different from security services industry To start with, the industries on the Red List12 are suggested for introducing such certifications The certifications will have levels to help buyers to make a choice.Influencing Greener Firms Through Public Sector Demand

As a start, the governments itself can enforce green purchasing polices for its own companies Introduction

of green requirements as a condition for tendering for government contracts is feasible The contractors can commit to maintaining specified environmental standards up and down the supply chain Such green procurement can also increase market acceptance of green products by demonstrating their commercial

feasibility The Scottish Government’s “Public Procurement and Sustainable Development: Guidelines

for Public Purchasers 13 ” dictates that those who fail to comply with environmental legislation may be

excluded from selling to the Scottish Government This guideline explicitly mentions that firms ing environmentally preferable goods and services and use of recycled/renewable materials are likely to offer a competitive advantage The European Commission had proposed that 50% of all public tenders

produc-be “green”, i.e compliant with common core Green Public Procurement criteria

8 CONCLUSION

The diversity and complexity of SMEs’ activities within and across different sectors affect the nature and intensity of environmental problems Moreover, the number of SMEs and their varied organizational capabilities pose a colossal challenge, one which cannot be addressed by voluntary strategy alone A more effective approach would be one that is pulled by a firm’s customers will be more effective for SMEs, than one which is based on external supervision and compliance Given the size of the SME sector in any country, it is very challenging for external supervision and regulation to be an effective approach.Although this author concludes that a competitive advantage can be gained by green performance, this alone is not enough encouragement for SMEs to improve green performance Various barriers have been identified which act upon SMEs The low awareness and indifferent attitudes of SME owner’s also need to

be dealt with There are numerous reasons why SMEs do not or cannot improve their green performance While each one can be justified from the SME’s perspective, the loss from a degraded environment will

be shared by all, including the SMEs This will require more than good intentions to rectify

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ENDNOTES

1 http://www.iisd.org/business/tools/principles_ceres.aspx

2 http://www.iccwbo.org/Advocacy-Codes-and-Rules/Areas-of-work/Environment-and-Energy/Business-Charter-for-Sustainable-Development/

3 program_Germany.pdf

http://www.envirocentre.ie/includes/documents/Limerick_Clare_Kerry_Regional_Waste_Manage-12 http://gpcb.gov.in/pdf/rog.pdf

13 www.sustainablescotland.com