Essay: CSR and sustainable management

CSR and sustainable management are co-related with each other. According to the Financial Times (2016) Corporate Social Responsibility(CSR) is the development that targets at motivating organizations about their responsibility of their business on the stake holders, society and environment. CSR is the business approach that conveys economic, environmental and social aids for all stakeholders which contributes to sustainable management. Many multinational companies use CSR model to enhance their business for example Forbes (2016) demonstrates companies like BMW, Walt Disney, Sony, Volkswagen, Apple, Google, Microsoft, Mercedes-Benz uses CSR strategies in different ways. Today many companies practice some type of social responsibilities while some of the organizations make these practice as their core operation. Business news daily (2016) explains Starbucks has developed its C.A.F.E practice instructions which describes economic, social and environmental aspects of coffee production. So CSR is an important model for any organization to grow and to develop its business and practice sustainability management. The CSR and sustainability management concept is undergoing flourishing scrutiny as this concept has been excelled in the business (Margolish and Walsh, 2013; Orlitzky et al., 2010; Gouldson, 2009; Campbell, 2007) and established the network between Social and financial performance, Campbell (2006;2007) argued that there are large count of alleviating aspects in the relationship between companies and society which helps to evaluate why organizations should behave in social responsible ways.  According to Campbell (2007)  companies should pay more heed to corporate structure that may influence whether organization behaves in socially responsible and sustainable way or not.
Capra (2009) study illustrates that as more companies observe sustainability as an extensive strategic concern, establishing strategic plans becomes additional symbolic errand for the companies to cling to their competitiveness. Green sustainability and corporate responsibility have become hike in strategic issues for the firms in most industries (Montiel, 2008). Preeminent manufacturers in the USA have begun to accentuate “green” and “sustainability” in their internal operations to external business. For example, Toyota has acquired green sustainability principles in manufacturing. The Prius, a Toyota made hybrid car, is an environmentally friendly automobile that captured dominant portion of its market. In 2006, the Prius engaged 76 percent of the US hybrid automotive market (Bonni and Oppenheim, 2008).
In order to make business sustainable, it is imperative to scrutinize how conveniently firm operate their prevailing assets, and , at the same point , how well they relocate and amass new potential for the future by pursuing short-term and long-term sustainability constructing actions ( Schaltegger and Wagner, 2009). Where huge firms, regularly worldwide endeavors, have been building up the viability expected to get the triple bottom line over last decades, small and medium-sized enterprises (SMEs) for the most part do not have the mindfulness, expertise, fund and HR to make the coveted alteration inside association (Lee, 2008). Lee (2007;2008) pinpoints a current movement of SMEs in green management: SMEs are switching from a command and control approach to market and competition approach in executing green management. Following the EU parliament’s approval of the European Union(EU) directives on Waste Electrical and Electronic Equipment (WEEE), Restriction of Hazardous Substances (RoHS), and Eco-design for Energy using products (EuP), an outstanding group of companies in the electronics and consumer products business, counting LG, Samsung, Toshiba, NEC, IBM, HP and Dell have embraced “green” norms in their supply chain management. End manufacturers often drill purchasing skill to force their suppliers to obtain good environmental performance. As sector of the RoHS-compliance plan, many enormous companies are asking their suppliers to authenticate parts and components compliance to secure compliance of the final products (Cusack and Perett, 2008). Taking in consideration the draconian environmental requirements at present and in future, it is mandatory to scrutinize the SMEs idiosyncratic in their business operation to face the green management dilemma and sustainability issues, as well as to recommend appropriate mechanism for such (Moore and Manring, 2009). In order to understand explicit circumstances of how to apply green management at SMEs, the strategic contexts of organizational structure, innovation capacity and human resources for green management are considered for further elucidation.
Owing to the wide side of framework and theoretical approaches that should be considered in green management, the implementation of conceptual model may be complex. In many cases, most conceptual models of environmental management and theory of sustainability are not applicable to SMEs. For instance Graham and Bertels (2008) found that existing sustainability portfolio framework and tools proved unsuccessful in their work. According to Lee (2008), Korea is predominantly a country of SMEs, with 99.2 percent of all manufacturing companies, accounting for 70.5 percent of the total 2.32 million employees in manufacturing sector. In 2003, the Korean government launched green management policy aimed at expanding environmental management throughout the entire supply chain, in particular, SME suppliers. The government has encouraged SMEs to improve their environmental performance, utilizing manufacturers-supplier relationship and choice is grounded in organizations international orientation and exposure to the issues of green management for example market share, sales volume, business operation periods, and international expertise.
Internal environmental management, external environmental management, investment recovery, and Eco-design are four major elements of green supply chain management (GCSM) practices (Zhu and Sarkis, 2012). Internal environmental management incorporates duty of GSCM by senior administrators, add up to quality natural administration and natural administration systems.  The external environmental management including GSCM practices provide design measurement to suppliers that include environmental requirements. Investment recovery carries investment recuperation (sale) of abundance inventories, sale of scrap and utilized materials, and sale of surplus capital equipment. Eco-plan consolidate outline of items for diminished utilization of material, outline of item for reuse, recuperation of material and component parts. According to Scapen et al. (2013) supply chain performance measurement system is needed to deal with innovative strategies like group task and non-financial metrics such as lead time and tact time. Characteristics of employee in an organization should be considered as an important variable for overall supply chain performance (Gunasekaran et al. 2009). However the present SCM execution estimation strategies are inadequate to reflect critical SCM characteristics like the companies’ vital objective and interaction with fellow members.
Keeping in mind the end goal to change their environmental supply chain management the imperative key elements for any business is their coordinated effort with the administration, providers, clients, and even competitors. Collaboration with clients and providers has turned out to be the great degree basic for the firms to close the supply chain circle. (Sarkis et al., 2011).  Moreover, Jayraman et al., (2012) indicates that adopting an environmental perspective on operations can lead to improved operations. On the contrary, Bouchery et al., ( 2012 ) identified the need of study of quantitative models in operation management. They composed sustainable-order quantity program which can push decision makers to quickly identify the best choices among available solutions. Dinwoodie et al., ( 2012 ) composed a framework to facilitate ecological administration that applies business process traditions to diagnose significant sources of inputs, processes and outputs. Dinwoodie et al., ( 2012 ) study further proposes the rearrangements and streamlining periods of business process re-engineering can be caught by business strategists for improving selection of manageable practices. Tang and Zhou (2013) suggest the correlation between profitability and sustainability. However, the equity can only be maintained in long run if the firm  can adopt all encompassing strategy to manage money related stream (benefit), asset stream (planet), and advancement stream (individuals) for whole biological community involving poor strategies in developing markets, worldwide store network accomplices, purchasers in created nations, and the planet. Huang et al., (2012) explains the concept of closed-loop supply chain (CLSC) management to address current ecological difficulties and sustainable development. The examination recommend  that fundamentally three challenges are there for SCM in particular, uncertainty of time-delay in re-manufacturing and returns; uncertainty of cost parameters; uncertainty of customers’ demand disturbances. This study was established  on operations of scrap supply chain in the Chinese steel industry. Zhang (2012) created a benchmark for the environmental sustainability (ES) initiatives by constructing a cost-based resource efficiency measures of ES from reported financial data. This approach connected the natural and monetary execution results by extricating data from asset related costs standardized by revenue per available per room (Rev PAR). However, their capacity to acknowledge economical upper hand is impeded by the absence of sustainable goal. Bautista (2012) used the quantitative approach to analyze the present and future situation of the Venezuelan power generation sector and proposed a configuration based on renewable-energy resources available in Venezuela and without use of either nuclear or CCS technologies and these scenarios were referred as sustainable scenarios (SUS). Therefore the first hypothesis produced is : “ Supply chain management is positively influenced by Environmental policy (EP)”.
Walsh and Dowding (2012) examined Coca Cola’s corporate feasible procedure in terms of sourcing, use, and recharging of water utilized as a part of its beverage generation. On the premise of significant value chain examination of water, the major financial, social and natural issues encompassing sustainable management were inspected. Coca Cola’s water stewardship initiatives – from rainwater harvesting in Africa to lessening the water used in its operations – shows the sustainable water leadership can serve a solution for water stressed regions of the world. So second hypothesis proposed is :“ Partnering with suppliers for meeting environmental environmental criteria enhances the Environmental stability(ES) of the organization ” .