Operations Management: An Integrated Approach, 5th Edition

THE SUSTAINABILITY LINK

Governmental decision makers can require companies to adopt practices that are deemed environmentally safe and socially responsible, using laws and government regulations. Many companies, however, engage in voluntary compliance in sustainable practices. These provide benefits in the form of advertising—such as logos that appeal to the preferences of a growing number of environmentally conscious consumers—and group membership in certification programs, which provide directory listings and other perks. Like other operations decisions, the decision to embrace sustainability practices, above and beyond those mandated by regulatory standards, must be driven by the business strategy.

The Brazilian company Aracruz Celulose offers a good example of sustainability decisions that are driven by the company's business strategy. The company is responsible for 24% of the global supply of bleached eucalyptus pulp, used in the manufacture of paper. It has developed practices of sustainable operations and supply chain management that support its goal of being a recognized sustainability leader. For example, Aracruz ensures environmental sustainability by preserving the natural ecosystems surrounding the eucalyptus plantations. The company created a forestry management program to preserve native tree populations and prevent overharvesting, and has put in place strict environmental control technology to protect and monitor the impact of their operations on forests and rivers. ...