Sustainable Operations Management

sustainable operations management
focused on reducing any potentially negative impacts of a firm’s processes and products on the environment and society
triple bottom line
full impact of activities on planet, people, and profit
-instead of seeking only profits, managers today are developing balanced sustainable strategic visions
sustainability
meeting today’s needs without compromising the ability to meet tomorrow’s
life cycle assessment
evaluates the cost of waste throughout product lifecycle
-extraction, production, packaging and transportation, usage, and disposal/recycling
ISO 14000
international standard and certification for environmental management
-identifying and controlling the impact of activities, products and services
-improving environmental performance continuously
-implementing a systematic approach to setting and achieving goals
people
customer, workers, suppliers, investors
-each of these stakeholder groups has its own needs and priorities
customers
-value for money
-products safety
-privacy protection
-honesty and integrity in fulfilling
-quick response
-system transparency
workers
-fair labor practices
-safe working conditions
-equal opportunities
-developmental support
suppliers
-shared values
-development opportunities and support
-shared success
-consistency and fairness
investors
-competitive returns
-sustainable business models
-integrity in reporting
-reduction of unreasonable risks
organizational culture
behavior of individuals within a firm influenced by organizational goals, structure, training, coworkers’ attitudes, and corporate successes and failures
national culture
behavior of individuals within a firm influenced by the norms and values from the home or host culture, or a combination of both
profit
equally important for the sustainability of an enterprise
Business models evolve due to:
-changes in economic conditions
-changes in competitor’s actions
-changes in income levels
-changes in educational levels