Management and Employees Behavior Towards Environmental Friendliness Change - Essay Example

?Review of Related Literature and Studies This section of the study provides an exposition of literature and studies which have direct or indirect bearing on the focal point of this research on behaviour towards changes for environmental friendliness. The discussion is classified under the main headings: related literature and related studies. Related literature surveyed theoretical perspectives from books and similar resources of information on green terminology (Carlson, 2009; Visser, 2007; Ramus, 2003). Meanwhile, related studies related were presented under five main headings: drivers of organizational research on environmental responsiveness; reactions of management of employees to environmental policies or green change; effects of green change in organizations; difficulties encountered by organizations venturing towards green change; and the current status of organisational research on environment friendliness or green change. Related Literature Green, in the context of this study is a recent entry in modern lexicons. Carlson (2009) simply defines green as “anything that conserves our natural resources while protecting the ecosystem (p. 23). Two synonyms had been used at one time or another to mean green as it is known today, environmentally friendly, and sustainability. Carlson (2009) thought of the former as “sounds antiseptic and impersonal” and the latter as “a mouthful and poorly understood by the average person” (p. 23). Visser (2007) considers the environmental movement as one of the most powerful social and political campaigns of the 20th century. The impetus and theoretical underpinning for the movement may be traced to Rachel Carson and Jane Jacobs in their respective publications of The Silent Spring and The Death and Life of Great American Cities. Most of the earlier issues centred on the interference of animal reproduction through synthetic chemicals and the effects of oil spills on ocean life (Visser, 2007). The following instances are generally considered as green: recycled content, as well as recyclable; contraptions which help conserve energy, water and other resources; use of renewable resources to power factories and communities, either less toxic or non-toxic industrial processes, etc. (Carlson, 2009). The main reasons for going green were catalysed by both environmental and business benefits: improved environmental performance, prevention of pollution, vis a vis conservation of resources, cost reduction, enhanced employee morale, reduction and mitigation of risks, enhanced reputation with the public, etc (Visser, 2007). Carlson (2009) presented a number of theories about getting employees or members of the household to adopt earth-friendly behaviours: the moral theory, the economic theory, and the scare ‘em to death theory. In the moral theory, people are influenced to go green based on their inherent nature to do what they believe is right. When the appeal is directed to their better instincts, they will be motivated to adopt green practices (Carlson, 2009). Meanwhile, the economic theory posited that people are more likely to act in an environment friendly manner if financial benefits can be derived. The example provided by Carlson (2009) is that when petroleum prices increase at skyrocketing proportions, people tend to buy more fuel-efficient cars. On the other hand, the scare’ em to death theory proposes that people assume modified behaviour out of fear of the negative consequences of an old behaviour / attitude or practice, either for themselves or for their loved ones (Carlson, 2009). The importance of managerial commitment towards environmental change in the workplace is manifested in the following behaviour: interaction with employees as an equal when discussing environment matters; strong leadership and communication of environmental vision; enabling and facilitating attitude rather than controlling; leans more towards process orientation; and recognition of own ignorance about green practices, if this is the case (as cited in Ramus, 2003). Related Studies Drivers of organizational research on environmental responsiveness. The so called “greening of business” is described by Worthington (2010) as a mechanism of corporate social responsibility (CSR) in an increasingly globalised and competitive business setting. It was, however, observed that most organizations involved in CSR in Saudi Arabia are still stuck in the traditional type which concentrates mainly on charitable monetary contributions or donations (Tamkeen Development and Management Consulting 2007). However, companies are now starting to explore the possibility of tapping into social, environmental, labour and ethical practices as a source of competitive advantage and new marketing opportunities. In addition, Saudi Arabian companies are becoming more aware of the growing importance of accountability and transparency in the eyes of stakeholders. To accomplish this, Saudi companies are looking into partnerships between public and private organizations to help develop the nation’s human assets, to protect the environment, and to expand economic opportunities (Harvard Kennedy School 2008). According to the 2009 survey conducted by the National Commercial Back in Saudi Arabia, 17% of the respondents indicated that they are aware of CSR initiatives on environmental preservation being implemented by both public and private companies (National Commercial Bank 2009). An example would be ZARA, a fashion company with offices in Saudi Arabia wherein their mission statement incorporates environmental policy as a way of life inside the organization. The company practices energy management, waste reduction and recycling, use of organic materials, and utilization of biodiesel fuel in company vehicles (ZARA 2010). Meanwhile, Bansal and Roth (2000) performed a qualitative study on 53 companies in United Kingdom and Japan to determine the motivations and factors that drive corporate ecological responsiveness. The companies selected for the study included: 12 food retailers; one large, diversified, Britain-based multinational company and 10 subsidiaries; five automotive manufacturers; seven oil companies; 10 major multinational Japanese companies representing various industries; one small firm; one family-owned company; one German diversified industrial firm; two government-owned utilities; and four companies involved in electronics, information management, automotive parts, and chemicals. An analysis of the study results show that the companies researched are driven by three factors: competitiveness, legitimation, and ecological responsibility. Moreover, motivations are influenced by field cohesion, issue salience, and individual concern (Bansal and Roth 2000). On the other hand, Vazifehdust and Asadollahi (2011) reviewed the concept of social responsibility, its current issues and relationship with green marketing in Iran. Traditionally, businesses focused only on market competition and generating profits. However, competition, population growth, limited resources, and environmental pollution necessitated the need for a novel approach to consumers. These conditions gave rise to the concept of social responsibility. Social responsibility is described as a method of creating reasonably-priced products which allows the business to create profits while maintaining a positive image to consumers in areas such as health and the environment. Efforts to maintain profits while taking care of environmental impacts gave birth to the green marketing movement. Currently, majority of Iranian consumers are concerned about their health and environment compared to past years (Vazifehdust and Asadollahi 2011). However, the Iranian industry still has a lot of work to do in terms of social responsibility, green marketing, and paying attention to customer feedback. For example, most Iranian consumers still use non-recyclable plastic bags and there is lack of promotion in recycling and proper waste disposal. In addition, Iranian industry standards need to be upgraded in order to benefit from improved quality and reduced environmental impact. It was concluded that Iranian companies should start adopting long-term green marketing strategies to stay competitive and sustain customer loyalty (Vazifehdust and Asadollahi 2011). In Alaska, Doherty-Guzzetti (2007) evaluated the characteristics and goals of organizations participating in the Green Star programme to determine if these factors share a link with the number of environmental standards completed by each organization. The Green Star program is Alaska’s green certification program with members comprised of private companies, schools, non-profit organizations, and government agencies. In addition, the study also attempted to determine which motivation encourages organizations to join the Green Star programme: (1) environmental improvements; (2) economic improvements; and (3) image improvements. Results of the study show that most Green Star members join the organization due to its environmental benefits. Moreover, members acknowledge the crucial assistance provided by the Green Star programme which made environmental improvements possible in their respective organizations (Doherty-Guzzetti 2007). On a more general context, however, Aguilera, Rupp, Williams, and Ganapathi (2007) investigated the reasons behind the increasing involvement of business organizations in corporate social responsibility activities and its potential contribution to social change. Utilizing a multilevel theoretical model, theories of organizational justice, corporate governance, and types of capitalism are combined to reveal the various entities that influence business organizations to pursue CSR initiatives. The results reveal that organizations are influenced by numerous actors with instrumental, relational, and moral motives. The authors acknowledged several limiting factors which may provide opportunities for a more refined model. First, several actors who undeniably exert influence on CSR initiatives such as suppliers, unions, and private financial institutions, should also be evaluated. Second, the study did establish the difference between companies which embark on CSR activities on a superficial level and companies which take CSR initiatives seriously, even incorporating it to essential company strategies. Third, the extent, intensity, and effects of CSR initiatives need to be evaluated. Lastly, the top-down and bottom-up approaches on influencing CSR commitment should be explored (Aguilera, Rupp, Williams, and Ganapathi 2007) Du, Battacharya, and Sen (2010) observed that based on recent researches, internal stakeholder (i.e. employee) awareness on the existence of company CSR activities is rather low, making it difficult for companies to realise the benefits of their CSR activities. In addition, stakeholder scepticism in the part of employees becomes evident when companies suddenly step up CSR promotion efforts. Stakeholders may perceive company motives either as extrinsic or intrinsic. Extrinsic motives may be attributed to company efforts to boost sales and profits. In contrast, intrinsic motives are perceived as a company initiative to seriously address a particular environmental issue. Though extrinsic CSR motives do not necessarily translate to adverse customer feedback, stakeholders may perceive such efforts as manipulative or deceptive. Thus, a clear understanding on the effects of both extrinsic and intrinsic motives should be prioritized to control stakeholder scepticism, boost the credibility of the CSR message, and generate goodwill among stakeholders (Du, Battacharya and Sen 2010). On the whole, when companies have morally motivated individuals working with them, the financial benefits of advocating CSR policies start to become evident. Companies may even use CSR initiatives to attract potential employees by promoting their environmental standpoint to people who may share the same environmental values. There is some wisdom in this strategy since there are people who are willing to work with socially responsive companies despite being offered salaries which are significantly lower than what is offered by competitors (Lyon and Maxwell 2008). Reactions of management of employees to environmental policies or green change. A study of Ramus and Steger (2000) evaluated the link between supervisory support behaviours, environmental policy, and employee participation on environmental initiatives in top European companies. Results of the study reveal employees showing strong agreement regarding the existence of a published environmental policy, environmental performance targets, and an environmental management system. However, the respondents reported that most supervisors appear disengaged in all areas of employees’ environmental activities such as innovation, competence building, communication, information dissemination, rewards and recognition, and management of goals and responsibilities. It was concluded that employees are more engaged in eco-initiatives when they perceive strong support from their supervisor and from the organization itself. Moreover, employees are more likely to support eco-initiatives when the organization shows a strong commitment to the environment (Ramus and Steger 2000). The study of Ramus (2003) postulated that the existence of a well-communicated environmental policy is linked to the employee’s level of commitment and participation in eco-friendly programs. To evaluate employee perceptions on organizational support for organizational activities, a survey was conducted wherein respondents were presented with 13 environmental policies and their responses were tested for: (1) knowledge of the existence of the environmental policy; and (2) employee perception on the organization’s level of commitment to the said policy. Results of the study show those employees who perceived the existence of an environmental policy in their organization is more likely to exhibit a higher level of commitment and participation in eco-initiatives. This is further reinforced by employee perception of organizational and supervisory support on eco-initiatives. In addition, employee perception of company commitment to environmental policy can also influence and motivate employees to adopt and promote these policies (Ramus 2003). Ramus and Montiel (2005) investigated the truth behind environmental policy statements as a representation of organizational commitment to environmental sustainability. Normally, organizations are not mandated by law to create environmental policy statements. In addition, implementation of such policies is not subject to verification by independent third parties. Thus, the public perception on company commitment regarding environmental sustainability remains unclear. The study explored two variables: commitment to environmental policy and policy implementation. Results of the study reveal that organizational and employee commitment to comply with environmental policies is consistent across all industry sectors. However, this is in contrast with policy implementation wherein there is a significant difference on how companies implement environmental policies (Ramus and Montiel 2005). A study by Daily, Bishop, and Steiner (2007) on environmental management systems postulated that employee perception is a crucial component of EMS. Based on motivational theory, employees are more likely to participate in EMS initiatives if they perceive that their efforts would provide significant benefits. In addition, employees also tend to expect a form of feedback regarding their efforts. To ensure employee commitment and participation, management should be able to communicate to employees regarding environmental issues which may affect the workplace. Acting as champions, management can influence employee perceptions regarding the consequences of their actions, encouraging them to adopt environmentally responsible practices in and beyond the workplace (Daily, Bishop, and Steiner 2007). Collier and Esteban (2007) maintained that modern companies are required to have effective CSR and environmental policies in place. However, a successful corporate social and environmental policy is only made possible by the compliance and cooperation of employees. Organizations can only convince stakeholders on the sincerity of their CSR and environmental efforts when employees are motivated to collaborate. Three approaches have been used by management to elicit support and participation from employees. First, companies may resort to the implementation of CSR and environmental codes. This approach relies on employee compliance and non-compliance would lead to sanctions. The second approach involves corporate philanthropy and other forms of social outreach. However, recent forms of these activities tend to gravitate towards advertising and image improvement which nullifies any positive effect that companies would try to accomplish. On the other hand, organizations may integrate CSR and environmental commitment into its daily operations rather than to exist as a separate entity (Collier and Esteban 2007). Rashid (2007) investigated the effects of the implementation of an environmental management system or EMS on the reinforcement of environmentally-friendly work behaviours. In addition, the study also verified the potential of such behaviours to be practiced outside the organization. The study involved 526 respondents from 46 organizations that have successfully implemented an environmental management system. Results of the study confirmed the potential of environment-friendly attitudes being practiced beyond the walls of the office. Specifically, behaviours concerning employee involvement in the implementation of EMS and purchasing of environment-friendly products have shown that the reinforcement of positive behaviours can create a significant impact on an employee’s personal and work life (Rashid 2007). Zee, Hartman and Fok (2007) investigated the level of commitment by organizations and individuals to the green movement, impacts of organizational culture, and perception of impacts upon outcomes in terms of overall performance and accomplishments of the green movement. The authors postulated that a relationship exists between the abovementioned factors. The results of the study show that employee perception on their organization’s commitment to the green movement depends on orientation and organizational culture. Moreover, the overall performance and impact of green movements increase in proportion to the level of committed shown by an organization. A job satisfaction survey conducted by Dravigne, Waliczek, Lineberger, and Zajicek (2008) on office workers in Texas and the Midwest collected perceptions of employees who work on offices furnished with live indoor plants and installed windows overlooking green spaces and compared the data with office workers without live plants or windows. The survey fielded questions regarding job satisfaction, physical work environments, use of live plants inside the office, office windows, environmental preferences, and demographic information. Results of the study revealed significant differences on perceptions on overall life quality and overall job satisfaction. In addition, employees working in an office environment with live plants and windows felt better about their job and the work that they do. Though there were no differences in job satisfaction ratings by female respondents, male respondents with plants or windows gave higher job satisfaction ratings than male workers with no plants or windows (Dravigne, Waliczek, Lineberger, and Zajicek 2008). Lyon and Maxwell (2008) argued that despite widespread belief that some companies espouse environmental initiatives out of a need to comply with regulations or to improve public image, most stakeholders such as employees, consumers, investors, regulatory agencies, and the general public still believe that such acts are still socially responsible. For example, employees are motivated to participate in CSR activities because it makes them proud to belong to a socially responsible company. In addition, it allows employees to promote the importance of socially responsive actions to other people. DeJonghe, Doctori-Blass, and Ramus (2009) identified several motivators behind employee involvement on environmental protection, particularly their commitment to participate in the creation of eco-initiatives to boost the organization’s environmental performance and to limit its impact on the environment. Results of the study reveal that 44 percent of the respondents have tried to propose an eco-initiative in the workplace. Meanwhile, primary motivators include: opportunities to acquire new knowledge and skills; satisfaction of gaining a new experience; and satisfaction of doing something that they like to do. Kim (2009) evaluated employee perception on environmentally-friendly practices in the hotel industry based on data collected from 220 hotel employees working in 8 green-certified hotels in the Orlando, Florida area. Until recently, majority of studies green practices have been focused on the manufacturing sector. As for the hotel industry, its unique circumstances may provide invaluable information regarding employee perception on green practices across other industries. In addition, most researches on green practices on the hotel industry focused on guest perception. In this case, employee perceptions provide a unique viewpoint to gain a better understanding on the use of green practices in the hotel industry. Analysis of the survey results provided the following observations: (1) performance levels on green practices by hotel employees are lower than importance levels; (2) green practices which are beneficial to hotel employees were preferred over practices which would require behavioural adjustments; (3) employees from the operations department show more awareness on green practices compared to other departments; and (4) employees born from 1965 to 1981 were more critical on the green practices advocated by hotels (Kim 2009). Rivers (2009) examined the impact of diversity in environmental non-profit organizations by reviewing the role of environmental non-profit organizations in relation to the environmental landscape, conservation, enforcement, and environmental justice. In addition, issues regarding diversity in relation to mission, strategy, trust, and accountability are discussed to visualise the present situation. Furthermore, suggestions on how to bridge the gap between diversity and board governance are explored. Harjeet (2010) evaluated current literature on the impact of an environment management system on employees’ level of commitment on environmental initiatives. The introduction of an EMS program in an organization usually entails the creation of new policies, structures, and processes which may affect employee attitudes. In addition, new responsibilities brought about by the EMS program may also influence employee commitment. Therefore, management may use the policies, structures, and processes of the EMS program to maintain employee commitment, and enhance job satisfaction – factors which spell either success or failure in the implementation of EMS (Harjeet 2010). The study performed by Yee, Eze, and Gan (2010) postulated that extensive employee participation in environmentally responsive manufacturing systems is crucial to its success. Employees from various departments should be encouraged to contribute their knowledge and provide suggestions to help develop and implement important business strategies. Employee involvement is identified by the four selected electronics manufacturing films selected in the study as one out of four factors that significantly influence the implementation of environmentally responsible manufacturing systems. Aside from lack of resources, inconsistent management and government support, and additional cost to the organization, negative attitudes of employees in relation to program implementation may seriously hamper efforts to put an environmentally responsible manufacturing system in operation. Examples include employees’ refusal to participate, commit extra time, and outright refusal to accept changes in the organization (Yee, Eze, and Gan 2010). In a very recent research study, Hartman, Fok, and Zee (2010) narrated how employees in their respective organizations perceive their personal dedication and their organizations’ commitment to the so-called green movement. The study also revealed how the employees thought of the outcomes. Hartman, et al. (2010) also investigated differences in the green movement between healthcare and non-healthcare setting. Effects of green change in organisations. Benedict and McMahon (2002) described green infrastructure as a crucial part of a nation’s life support system which makes environmental, social, and economic sustainability possible. The concept of green infrastructure has its origins in planning and conservation efforts which began around 150 years ago. The development of green infrastructure was based on two important building blocks: (1) connecting parks and other green spaces for the benefit of the populace; and (2) integration of various natural areas to improve biodiversity and prevent habitat fragmentation. In addition green infrastructure help avoid the following adverse effects: diminished natural areas; fragmented open spaces; deterioration of water resources; suppressed natural response to environmental changes; destruction of natural systems; added costs to public services; and more taxes. An effective green infrastructure strategy should be based on the following factors: holistic design; comprehensive planning; strategic layout; public planning and implementation; multidisciplinary participation; and funding priority (Benedict and McMahon 2002). Furthermore, seven key principles serve as crucial requirement which should be met to ensure a successful green infrastructure initiative: (1) Green infrastructure should be utilized as basis for conservation and development; (2) Green infrastructure planning and design is prioritized over development; (3) Integration of green spaces should be maintained; (4) Green infrastructure encompasses multiple jurisdictions at varying scales; (5) Green infrastructure is based on established and accepted land-use planning theories and practices; (6) Green infrastructure funding should be perceived as a priority public investment; and (7) Green infrastructure is a joint effort between public and private entities and affects various stakeholders (Benedict and McMahon 2002). Difficulties encountered by organisations venturing towards green change. Kunkle, Lutzenhiser, and Dethman (2000) evaluated traditional and modern views pertaining to the procurement of energy efficient products in 29 public agencies and enumerated findings on current procurement practices. In addition, barriers to implementation of improved procurement strategies for energy efficient products were discussed. The study revealed that traditional procurement methods are plagued with barriers such as: lack of information regarding available energy efficient products; misinformation regarding benefits and risks of using energy efficient products; risk aversion and lack of support from policymakers; and budget constraints. Additionally observation of current procurement practices revealed the following: public sector procurement exhibits a random, complex, and unpredictable pattern; energy costs and efficiency is usually not part of procurement criteria; procurement of energy efficient products may be influenced by trends such as best value buying, electronic commerce, and green purchasing; and change in procurement behaviour may be change through policy, professional standards, and sharing of best practices among agencies (Kunkle, Lutzenhiser, and Dethman 2000). Current status of organisational research on environment friendliness or green change. Kallio and Nordberg (2006) evaluated the current status of management and organizational studies in relation to environmental research through the analysis of developments and shortcomings present in organizational environmental studies. Results of the evaluation show that despite the attention that environmental research has generated over the years, the field is still in its early stages and would still need to create its own theory base and garner sufficient mainstream support as a distinct field of study. A recent study by Christodoulides and Sadler (2010) on green IT principles used in Cypriot organizations revealed differences on how companies perceive the benefits if green IT practices. Countries with highly-developed ICT infrastructures have made significant steps towards the adoption of green conservation practices. On the other hand, developing countries encounter several challenges in the implementation of green IT principles due to conflicts between maintaining market competitiveness and reducing environmental impact. Using a researcher-designed pilot questionnaire, questions regarding organizational awareness on practices and issues regarding green IT such as green infrastructure, e-waste, data centre, cloud computing, and green IT commitment were administered on IT personnel in several organizations in Cyprus. Analysis of survey results yielded the following findings: small organizations usually resort to low-cost and simple solutions; medium and large organizations spend more on larger and more complex solutions; and the primary motivator for turning green for most organizations is to reduce IT-related costs and compliance with government and European Union standards (Christodoulides and Sadler 2010). References Aguilera, RV, DE Rupp, CA Williams, and J Ganapathi (2007) ‘Putting the S back into corporate social responsibility: a multilevel theory of social change in organizations’, Academy of Management Review, vol. 32, no. 3, pp. 836-863. 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ZARA (2010) ZARA Corp., Riyadh, viewed 07 April 2011, http://www.zara.com/webapp/wcs/stores/servlet/category/11732/en/zara-S2011/18001/Our%2BMission%2BStatement Zee SML, SJ Hartman & LY Fok (2007) ‘Commitment to the green movement by organizations and individuals, impacts of organization culture, and perception of impacts upon outcomes’, The International Journal of Applied Management and Technology, vol. 7., no. 1, pp. 133-162. Read More