Management of Operations: Ethical and Environmental

Overview of Ethical and Environmental Management of Operations

Ethical and Environmental Management refers to acknowledging and addressing the effect of business operations on society and the environment.
It includes the ethical obligations a business has towards its stakeholders, employees, consumers, the environment, and the wider community.

Fair Trade: Businesses should ensure that producers in developing countries receive a fair price and fair terms for their goods or services.
Corporate Social Responsibility (CSR): This involves businesses taking responsibility for the impact of their activities on customers, employees, communities, and the environment.
Equal opportunities: Treating all stakeholders fairly and promoting an inclusive work environment.
Integrity: Maintaining honesty and authenticity in all dealings, communicating transparently, and honouring commitments.

Resource efficiency: Businesses should aim to reduce waste, recycle and reuse resources to minimise impact on the environment.
Sustainability: Emphasises on making decisions that cater for the needs of the present without compromising the ability of future generations to meet their needs.
Environmental Impact Assessment (EIA): This is a tool used to identify the environmental, social and economic impacts of a project prior to decision-making.
Green Supply Chain Management (GSCM): Involves integrating environmental considerations into the supply chain management process.

It can enhance reputation and brand image, as consumers increasingly prefer businesses that are socially conscious and environmentally friendly.
It can boost employee morale and productivity as they feel proud to be associated with an ethical and environmentally responsible business.
It can help prevent legal issues and regulatory fines, as businesses that ignore their ethical and environmental responsibilities are likely to face strict regulations.

Balancing the need to maximise profitability and the obligation to be socially and environmentally responsible.
The cost of implementing ethical and environmental practices can be high.
There may be lack of support or resistance from stakeholders who do not understand or appreciate the benefits of ethical and environmental management.

Fair Trade: Ensures equitable distribution of benefits but may increase costs for businesses.
CSR: Can improve brand reputation; however, the benefits may not be immediately apparent, leading to reluctance from stakeholders.
Resource Efficiency: Can lead to cost savings in the long run, but requires initial investment.
Sustainability: Future-proofs the business but requires a long-term view which may conflict with short-term profit targets.