by Green Management refers to the incorporation of environmentally sustainable practices into business operations. It aims to minimize environmental impact while promoting ecological conservation. Organizations adopting green management contribute to sustainable development, ensuring resource availability for future generations.
Evolution:
- Green Movement and Green Policies began in the late 1970’s when the first Green party was formed in Germany. The Term ‘Green’ is the English translation of the German word ‘Grun‘. Green politics advocated issues pertaining to Ecology, Environment, Feminism, Conservation and Peace.
- It is believed that Green politics draws its inspirations from Mahatma Gandhi, Spinoza and Uexkull who advocated and urged personal responsibility to make the right moral choices is the pillar of the green politics ideology.
Importance of Green Business Management:
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Cost Saving
Companies that focus on reducing energy consumption not only help the environment but also reduce their costs in the form of lower energy bills. Smaller businesses can also benefit from reduced energy costs by taking simple steps like switching off lights and fans when they are not required for usage.
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Reduced Energy Use
Green Management often include measures to reduce energy use. To increase the efficiency of the building envelope it may use high efficiency windows and insulation in walls, ceilings and floors.
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Healthier Workplace
Companies that promote a healthier workplace have a decrease in the number of sick days used by employees. This benefits the companies through increased productivity and less money paid out through medical benefits.
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Reduced Waste
Green Management also seeks to reduce waste of energy, water and materials. During the construction phase, one goal should be to reduce the number of materials going to landfills. By collecting human waste at the source and running it to a semi-centralized bio-gas with other biological waste, liquid fertilizer can be produced.
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Tax Credits
Tax Credits are available to companies that utilize environmentally friendly business practices such as switching to renewable energy source like solar power and using electric or hybrid automobiles and trucks as fleet vehicles.
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Decreased Productivity
It is easier for the staff to toss paper plastic and other items into one trash can, then it is to sort the trash. If a company adds recycling to the office, company can see a slight decrease in worker productivity
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Improved Public Image
Anytime companies can add a green initiative to the workplace. Companies can use the event to generate positive public relations. They can also include green initiatives on product packaging, advertisements and marketing materials to appeal to consumers who prefer green products.
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Increased Capital Outflows
Some green conversions require an initial cash outflow that decreases the bottom-line performance while the investment is paying for itself. This can increase the company’s quarterly earnings on annual profits.
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Increased Business Opportunities
Some Government agencies, Commercial businesses and non-profit institutions mandate that only businesses that meet specific green standards can bid on their contracts. Not all standards are government mandated with the office of the management and budget directing federal agencies to look for companies that meet voluntarily rather than Government standards when possible.
Nature of Green Management:
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Nature-Based Knowledge and Technology
It involves emulating one’s own self in terms of growing their own food, harnessing their energy, constructing things, conducting business, healing themselves, processing information and designing their communities.
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Products of Service to Products of Consumption
Products of Service are durable goods unlike products of consumption which have shorter life span. Products of Service are made of technical materials unlike products of Consumption which are made only of biodegradable materials.
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Solar, Wind, Geothermal and Ocean Energy
These are used extensively without any negative effect on the earth.
- Local-Based Organizations and Economies
This characteristic includes durable, beautify and health communities with locally owned and operated business and locally managed non-profit organizations, along with regional corporations and shareholders working together in partnerships and other collaborations.
- Value Production
The triple value production establishes three simultaneous requirements of sustainable business activities as financial benefits for the company, natural world betterment, social advantages for the employees and members of the local community.
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Continuous Improvement Process
The continuous process of monitoring, analysing, redesigning and implementing is used to intensify value production as conditions change and new opportunities emerge.
Types of Green Management:
1. Green Supply Chain Management (GSCM)
It includes repurchasing, recycling, reuse and substitute of material. This concept gains popularity because the customers are concerned with environment improvement which encourages the supplier to make environment friendly product.
Companies which adopted Green Supply Chain Management are British Telecom, Nike, Toyota and so on.
2. Green Marketing
It is the marketing of products that are presumed to be environmentally safe. Green Marketing incorporates a broad range of activities including product modification, changes to the production process, packaging changes.
Eg., Bank of America reduced Paper usage by 32%
3. Green Production
With this type of production, we could reduce all the harmful pollution to the environment and also reduce the cost from their starting step to finished product. Companies that follow Green Production are: Ikea – Using Solar & Wind Energy,
Nike Using recycled aluminum frames and underground energy storage
4. Green Research and Development
With only proper Research and Development the customer can provide a suitable product. Eg., Volkswagen Creating cars which are following environmental and safety standards to reduce carbon emissions.
5. Green Criminology
Criminology is referred to the study of Crime and Criminals whereas Green is related to environment issues. Some of the Green Crimes are Deforestation, Animal Trafficking, Cutting of Shark fins for trading.
6. Green Human Resource Management
It is based on Green Environment related to protection of environment. The term Human Resource refers to the contribution of Human resource policies and practices towards the broader corporate environmental agendas of protection, prevention and conservation of natural resources.
Green Management actions:
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Sustainable Resource Use
Organizations should adopt strategies to reduce the consumption of natural resources such as water, energy, and raw materials. Implementing energy-efficient technologies, using renewable energy sources, and optimizing resource usage are critical to reducing the ecological footprint.
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Waste Management
Proper waste management is a cornerstone of green management. Companies should emphasize the 3Rs: Reduce, Reuse, and Recycle. Efficient waste segregation, recycling materials, and minimizing production waste help lower landfill contributions and environmental harm.
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Eco-Friendly Product Design
Green management encourages the design of eco-friendly products that use sustainable materials, require less energy during production, and generate minimal waste. Adopting green packaging solutions, such as biodegradable or recyclable materials, further reduces environmental impact.
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Pollution Reduction
Organizations should implement measures to minimize air, water, and soil pollution. This includes treating industrial effluents, reducing greenhouse gas emissions, and adopting cleaner production technologies. Pollution reduction contributes to healthier ecosystems and communities.
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Green Supply Chain Management
Businesses should encourage their supply chains to adopt sustainable practices. This includes sourcing materials ethically, working with environmentally conscious suppliers, and ensuring that transportation and logistics minimize emissions.
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Employee Training and Engagement
Training employees in eco-friendly practices fosters a green culture within the organization. Encouraging employees to conserve energy, reduce paper use, and participate in sustainability programs creates a shared responsibility toward environmental conservation.
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Corporate Social Responsibility (CSR) Initiatives
Green management actions often align with CSR programs focused on environmental protection. Activities such as tree plantation drives, biodiversity conservation projects, and community awareness campaigns demonstrate a company’s commitment to sustainability.
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Compliance with Environmental Regulations
Adhering to environmental laws and standards is essential for green management. Organizations should ensure compliance with local and international environmental regulations, avoiding penalties and enhancing their reputation as responsible entities.
