Resources, Recycling, Regulations, and Reputation in the Comparison of Operations Sustainability Techniques

Introduction

Sustainability as a Strategy Sustainability is a growing concern and challenge for companies around the globe. Batra (2012), McDonagh and Clark (1995), Menon, Menon, Chowdhury, and Jankovich (1999), and Moisander (2007) attribute this challenge to the over-consumption of the Earth’s resources, especially in developed countries, and the unexpected rapid increase in the world’s population throughout the last century. Many corporate management have realize that in a world with decreasing resources and increasing population, that it is imperative to consider sustainability in their own operations (Simintiras, Schlegelmilch, & Diamantopoulos, 1994; Straughan & Roberts, 1999; Thogersen, 2006; Van Liere & Dunlap, 1981; Vesilind, Heine, & Hendry, 2006). When evaluating sustainability in production processes the four “R’s” of sustainability is a useful tool. These are the resources used by the production process, the recycling of production materials and product components, the regulations that apply, and the firm’s reputation (Hooley, Saunders, & Pierry, 1998; Iyer & Banerjee, 1993; Jain & Kaur, 2006). A company can assess their organization and use the four “R’s” to determine where improvements can be made. Companies are often unaware of the advantages sustainability can bring. Searcy (2009) points out that there were few published examples of indicators being used either in Board-level and strategic decision-making, or in managing supply chains or even business units. The world would benefit if more corporations began implementing sustainability processes.

Resources are used primarily by the firm’s operations segment. This suggests that there are many opportunities to use human, financial, and material resources in a sustainable manner (Kayas, McLean, Hines, & Wright, 2008; Kilbourne, 1995; Kroes & Ghosh, 2010; Laroche, Bergeron, & Barbaro-Forleo, 2001). Reducing resources is the most common way companies implement the four “R’s”. When a firm reduces the amount of resources used, costs will also be lowered. Low costs and resource use help increase the company’s profit margins while also incorporating a sustainable approach. There are many different ways that a company can reduce their resource consumption. One common approach is to lower energy and water costs. Another example is reducing the amounts of materials used in a process. Advancing technology allows firms to become more efficient in their materials use.