Concerning Environmental Sensitivity: Where Does Responsibility Fall?

Bill Hoffman – owner of Aptos Jewelers
Click the above image to be taken to the New York Times article associated with this post.

As students in an operational management class, we study all issues involved with operating a business.  We are taught that operating in an ethical manner is paramount and all-encompassing.  That an organization’s leaders must be cognizant of the impact their decisions have internally and externally – specifically in regard to the environment.  The article used for this post describes what happens when the government forces businesses to function in a certain way.  I found this article intriguing and in reading it, I found myself extremely conflicted.  Below is a brief synopsis.

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More than two-dozen cities in California have enacted a ban on the use of plastic shopping bags and have begun charging between 5 to 10 cents to use a paper bag.  The movement has created a divide between shop owners like Bill Hoffman – owner of Aptos Jewelers in Aptos, California – and their counties.   Hoffman, who has been one of the more vocal opponents of the regulation, feels that charging his customers (who are often spending thousands in his store) for paper bags is crass.  Hoffman also is of the belief that the way he packages his product is part of the experience he offers.  He is offering a high-end product that requires high-end packaging.  After filing with Santa Cruz County for an exemption from the ordinance, Hoffman was turned down.

The push toward reusable bags has also upset the plastics industry, which is pursuing legal action against counties in California that have enacted a plastic bag ban.  Industry representatives claim that there is insufficient evidence to support that banning plastic bags will have any drastic impact on the environment.

Stephen Joseph, who is the primary voice and attorney for the Save the Plastic Bag Coalition, has argued that bans in cities that have a high tourist presence (such as San Francisco – which is initiating a plastic bag ban this month) will be particularly ineffective because tourists typically don’t travel with reusable shopping bags.  This has led Joseph to deduce that tourists will begin buying reusable plastic bags when they arrive in a location, and will dispose of them upon their departure.  This, of course, would make a huge dent in the purpose of the ban.

When questioned, many consumers voiced a frustration with the ban/paper bag charge, but expressed that it’s ultimately necessary.*

Questions to consider:

  • How do you feel about a movement of this type?
  • Should the government step in and ban materials that are harmful to the environment?
  • Should it be up to the business owner to ensure he/she is operating his/her business in an environmentally responsible manner?
  • Should consumers take the responsibility?

 

* The information provided in this post was drawn from the following New York Times article: http://www.nytimes.com/2012/09/29/business/energy-environment/communities-curb-use-of-paper-and-plastic-shopping-bags.html?pagewanted=all

Pump the Brakes before Crashing into a Bankrupt US Subsidiary

 

The American auto industry has had more than its fair share of ups and downs in recent years, with General Motors particularly attracting public attention.  Companies targeting domestic vehicle sales land on two sides of the market share spectrum: the high end or the low end.  Considering that American car sales boast growth unseen in other international regions, this market seems like an ideal target.  However, gaining ground against sizeable and established competitors is no small feat and it shows that not all companies follow the old adage of not throwing good money after bad.   These businesses could be grappling with a number of obstacles, but above all, they cannot contend with the effects of the open global market.  A recent article in MarketWatch urges these floundering automakers to put an end to the delusion and exit the US.

Specifically mentioned in the article are Mitsubishi, Volvo, and American Suzuki.  It is not that these manufacturers, in their entirety, are poorly operated or produce subpar vehicles; the problem is that they will not survive as guppies in an industry of sharks.  To sell cars, a company needs a number of things: powerful marketing, public relations, an extensive dealer network, and most importantly, a well designed product.  The aforementioned brands don’t have these things and, without continued and substantial financial support from a parent, will try to tread water until they eventually drown.  Volvo is targeting a line already dominated by BMW, Lexus, and Mercedes, while Mitsubishi missed the move into the American market decades ago when its Japanese competitors started the initiative.

So when is it time to put an end to the optimistic, yet delusional, forecasts and bottomless pits of marketing and PR budgets?

 

Link to article: http://www.marketwatch.com/story/car-makers-that-might-as-well-back-out-of-us-2012-10-06?pagenumber=1

“Ben & Jerry’s”-The Ethical Approach

We have learned about ethics, environmental sustainability, conservation and the renewal of resources through the product life cycle. In operations management sustainability refers to the ecological stability of the environment. The ethical approach extends through the design, production and destruction of the product. Ben & Jerry’s is one of the most ethical and socially responsible companies in existence today. Ben & Jerry’s views product design from a systems perspective by weighting the costs to the firm compared to the cost to society.

  • Design-Ben & Jerry’s realize the importance of creating packaging that will reduce negative impacts on the environment. In 2009, they began using a certified paperboard for the entire stock of U.S. pint containers that comes from a forest managed for the protection of wildlife. Moreover, the boxes used for Ben & Jerry’s ice cream bars are made from 100% post consumer recycled paperboard. (Developing safe and environmentally sound practices)

 

  • Production– In the Vermont manufacturing plants, Ben & Jerry’s has invested heavily in energy-efficient technology. This includes cooling systems, lighting, water and waste management systems. (minimizing waste of resources)

 

  • Destruction– Ben & Jerry’s sends dairy waste from the Vermont plants to two of the farms that supply them with fresh dairy ingredients. The waste is put into methane digesters along with other farm waste where it produces energy to power the farm. (Reduce environmental liabilities)

 

Social Responsibility

Here are some ways Ben & Jerry’s focuses on ethics, the environment and social responsibility:

Ben & Jerry’s has always been focused on the communities in which they serve. In the UK, they have a bus that travels through the streets during festivals selling ice cream. The profits gained are used to support charitable causes in the local community such as “Childline” and “Trees for Cities”.

The company offered stock options to its hometown of Vermont where it began when it decided to expand into other cities. Ben & Jerry’s wanted the community who supported its beginning to be the first to benefit from its success.

Ben & Jerry’s uses certified humane cage-free eggs in their ice cream products in Europe. In the US, Ben & Jerry’s ice cream products are 99% cage-free. The existing 1% is in the novelty ice cream bars sold in the US and Asia.

What are some things your employer has done to become environmentally friendly with respect to design, production and destruction?

 

 

 

 

 

http://library.depaul.edu.ezproxy1.lib.depaul.edu/CheckURL.aspx?address=http://search.ebscohost.com.ezproxy1.lib.depaul.edu/login.aspx?direct=true&db=bth&AN=17038437&site=ehost-live&scope=site

http://www.benjerry.com/company/sear/2010/index.cfm

Sitting On Sustainable Luxury, A Process Not Many People Appreciate!

Have you ever thought about how much time and effort it takes to produce the chair and sofa you sit on, or the bed you sleep on?

I can certainly relate to the chapters we studied relating to product design, and quality management and international standards. Working for a furniture company, I get to watch training videos of how our products are produced. I must admit furniture design is very intense. Every chair, bed, and table has to be designed according to the ergonomics of the human body, as well as international standards; since our furniture is sold worldwide. Every piece is designed to assure comfort, convenience and style. Along with product design, the main focus has now become on “ecodesign”, the following is the statement our company shares regarding sustainability:  “Like any industrial product, furniture is a source of environmental impact. Thereby participating in its degradation to the extent that it requires materials and energy, it must be transported and packaged, it can be maintained and repaired, and it will one day become a waste… This policy is now inseparable to our commitments of quality and creativity.” This statement clearly shows our company’s use of Life Cycle Assessment (LCA).

Our furniture pieces are designed by top European designers, creators and architects. Every piece of furniture produced goes through a very long production cycle. Furniture design begins with creativity, followed by design with the use of software such as Computer-aided design (CAD), and Design for manufacture and assembly (DFMA). Once the design is completed digitally, a prototype is then produced with the use of human labor as well as Computer-aided manufacturing (CAM). The prototype is then tested by the designer and management.

Quality management is of crucial importance when it comes to the furniture we sell. To assure quality our furniture is only made with solid wood from environmentally sustainable forests, and the fabrics and leathers used in our furniture go through a series of detailed tests. Our fabrics go through a rub test, known as Martindale Test, which tests a fabric’s durability by counting the number of rubs it takes for a fabric to wear out. If a fabric wears out before 30,000 rubs then it is not durable, the most durable are fabrics from 30,000 to 100,000 rubs. Our leathers also go through a series of different testing methods such as absorbency, burning and stretching. A thorough inspection of the materials used is done by experts who “have the eye” to spot mistakes or natural defects. Some natural defects are usually found in leather. Since it comes from cows, some cows might get scars which are then found in the leather. A piece of furniture will only go into production, once it meets the European Furniture Standards and passes quality control.

Now that you have a better understanding about the creation of sustainable furniture, can you relate the importance of product design and quality management to other daily life objects?