final submission (2) print

8/2/2019 Final Submission (2) PRINT

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Project submitted in partial fulfilment

of the requirements of the

MBA(FT)

at the

University of Northumbria

at

Newcastle

NAME: PRATHMESH GARG

COURSE: MBA

SUPERVISOR: Prof. DAVIDOGLETHROPE

TITLE: Investigation on role of SME(s) in UK

emitting carbon emission and explaining how

important is to reduce Carbon footprint by using the

technique of life Cycle Assessment (LCA) in Green

SupplyChain Management (GSCM)

DATE: 7TH OCT 2010


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Declaration

I declare the following:

(1) that the material contained in this dissertation is the end result of my own

work and that due acknowledgement has been in the bibliography and

references too ALL sources be printed, electronic or personal

(2) the Word Count of this Dissertation is 16500.

(3) That unless this dissertation has been confirmed as confidential, I agree to

an entire electronic copy or sections of the dissertation to being placed on the

e-Learning Portal, if deemed appropriate, to allow future students the

opportunity to see examples of past dissertation. I understand that if displayed

on the e-Learning Portal it would be made available for no longer than five

years and that student would be able to print off copies or download. The

authorship would remain anonymous.

(4) I agree to my dissertation being submitted to a plagiarism detection

service, where it will be stored in a database and compared against work

submitted from this or any other school or from other institution using the

service.

In the event of the service detecting a high degree of similarity between

content within the service this will be reported back to my supervisor and

secong marker, who decide to undertake further investigation that may

ultimately lead to disciplinary actions, should instances of plagiarism be

detected.

(5) I have read the Northumbria/Newcastle Business School Policy Statement

on Ethics in Research and Consultancy as detailed on page 46-51 of The

Newcastle Business School Masters Dissertation Guidelines and Supervision

logbook for 2009-2010 and I declare that ethical issue have been considered,

evaluated and appropriately addressed in this research.

SIGNED:


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Abstract

Over the last decade, There is major concern of climate change issue. Hence,

In a recent report by Intergovernmental Panel on Climate Change (IPCC,

2007) states that that there is explicit demand for the organization to improve

their environmental performance from the Stakeholders, Government

Commission , , NGO(Non Government organization ), customers, and

Financial Community. Nevertheless, in spite of high regulators demands and

strong pressure from the external and Internal factors but the contemporary

revises shows the concern that most of the organization which adopts

Environmental Management System are the large organization by

implementing upbeat (proactive) environmental strategy. On the other hand,

SME(s) adopting the imprudent (reactive) strategy, still lean to act according

to external pressure. As, SMEs account for 99.8% of European enterprises,

66% of total employment and half of the total value added in the EU

(European Commission, 2003). It has been estimated that SMEs have a

greater environmental impact per unit than large firms and are the largest

contributors to pollution, carbon dioxide emissions and commercial waste

(Environment Agency, 2003). Thus, highlighting the issue awareness iscreated to motivate the SME(s) to implement Carbon Reduction Commitment

and make them understand the corporate social responsibility. Thus, the

literature review is focused on major role played by SME(s) in UK economy

and reviewing the prompts and barriers faced by the SME(s) while

implementing EMS . Moreover, the paper discussed about the importance of

GrSCM and whole product life cycle assessment(LCA) benefits the

organization to increase profitability . On the other hand , the paper even

reveals about the limitation of LCA modeling in context in sustainable supply

chain management . Finally, the paper classified about the adopted research

methodology , analysis and findings from the research, In addition, to that


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timeline figure is presented by giving the implication and scope for further

research.

Keywords: Green Supply Chain Management, Supply Chain Management,

Environmental Management System, International Standard Organization


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Contents

Abstract ........................................................................................................... 3

Acknowledgement ........................................................................................... 9

Glossary ........................................................................................................ 10

1. Chapter One- Introduction ...................................................................... 11

1.1 Background .......................................................................................... 11

1.2 Research focuses area and problems ................................................. 13

1.3 Research Scope................................................................................... 14

1.4 Use of research .................................................................................... 14

1.5 Aim and Objective of the Research ...................................................... 15

1.6 Report Structure ................................................................................... 16Chapter 2 - Literature review ......................................................................... 18

2.1: The global issue of GHGs ................................................................... 18

2. 2egislation law and regulatory demands ................................................ 22

2.2.1 AGENDA 21 ................................................................................. 22

2.2.2 GOVERNANCE IN SUSTAINBILITY ............................................. 22

2.3. International Organisation for Standardisation ISO ...................... 26

2.4 ISO- EMS REQUIREMENTS............................................................ 27

2.5 Sustainable Supply Chain Management ........................................... 29

2.6 Green Supply chain ....................................................................... 33

2.7 SUSTAINABLE PROCUREMENT TASK FORCE (SPTE) ............ 34

2.7 Major role played by SME(s) in emitting carbon emission. ............ 36

1) Motivation and Drivers behind EMS implementation for SME(s) ... 39

2.7.1 Motivation and Drivers behind EMS implementation for SME(s) 39

2.7.2 Barriers to EMS implementation for SMEs ................................ 41

2.7.2.1 Size and resulting resource constraints ...................................... 43

2.7.2.2 Industrial sector ......................................................................... 43

2.7.2.3 Lack of Training and Awareness ................................................ 43

2.8 Tool and Techniques ..................................................................... 45


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2.8.1 LIFE CYCLE ASSESSSMENT AND ISO ......................................... 45

2.8.2 Inherent problems of LCA modeling ........................................... 47

2.8.3 Dispose or reuse and recycle: ....................................................... 48

2.8.4 Life cycle thinking ....................................................................... 50

Chapter 3- Methodology ............................................................................... 52

3.1 Research Philosophy ........................................................................... 52

3.1.1 Interpretism.................................................................................... 53

3.1.2 Positivism: ..................................................................................... 53

3.1.3 Justification of Research Philosophy ............................................. 53

3.2 Research Methodology ........................................................................ 54

3.2.1 Deduction: ..................................................................................... 553.2.2 Induction: ....................................................................................... 55

3.2.3 Justification of research methodology ........................................... 56

3.4 Research Strategy ............................................................................ 56

3.4.1 Survey ........................................................................................... 59

3.5 Research Method ................................................................................. 60

3.6 Research Strategy ............................................................................... 61

3.6.1 Primary Sources Data ................................................................... 61

3.6.2 Secondary Sources Data ............................................................... 62

3.7 Hypothesis ........................................................................................... 63

3.8 Population and Sampling ..................................................................... 64

3.9 Questionnaire design and Piloting ....................................................... 65

3.9.1 Piloting ........................................................................................... 66

3.9.2 Interpretation of questionnaire ....................................................... 67

3.10 Validity test ......................................................................................... 68

3.11 Reliability test ..................................................................................... 68

3.12 Data analysis method ......................................................................... 68

3.13 Ethical issue ....................................................................................... 69

3.14 Summary ............................................................................................ 69


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Chapter 4- Data analysis and Findings .......................................................... 71

4.1 Total Greenhouse Gas emission By economic sector .......................... 71

4.2 Total C02 emission by Economic Sector .............................................. 73

4.3 Enterprises, Employment and Turnover by size of Enterprises of UK

private Sector, 2008 ................................................................................... 74

4.5 Distribution of Employees in SME's all over UK by percentage ........... 77

4.6 Distribution of UK Private Sector basis on years .................................. 80

4.7 Carbon Emission by Year .................................................................... 82

4.8 Trend of Private Sector and Carbon emission by Year ............................

4.9 COORELATION/ASSOCIATION:......................................................... 88

4.8.1 Industry Sector by Co2 Emission ................................................... 89

4.9 LINEAR REGRESSION: ...................................................................... 90

4.8.1 Analyses Summary of Co2 emission from Linear Regression in a

Scatter graph .......................................................................................... 91

4.8.2 Forecasting Of Co2 Emission ........................................................ 92

4.9 One-Sample Statistics .......................................................................... 97

4.10 Factors preventing the SME(s) from improving its Management ....... 98

4.11 Respondents opinions of the Prompts for the SME(s) in reducing

carbon emission?, under the following headings ....................................... 994.12 Respondent opinions of the Barrier for the SME(s) in reducing carbon

emission? ................................................................................................. 100

4.13 Summary of Findings from the above analysis ................................ 101

5 Chapter 5- Conclusion and Recommendation Chapter ............................ 103

5.1 INTRODUCTION ................................................................................ 103

5.2 RESEARCH CONCLUSION .............................................................. 103

5.3 RECOMMENDATIONS: On the basis of Literature review and analysis

................................................................................................................. 106

5.3.1 GREEN DEVELOPMENT ............................................................ 107

5.3.2 GREEN SUPPLY CHAIN: ........................................................... 108

5.4.3 JIT AND TQM .............................................................................. 109

5.4.4 Awareness among the entities..................................................... 109


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5.4.5 Understanding Rules ................................................................... 111

5.5 Further Research Scope .................................................................... 111

5.6 Research Limitation: .......................................................................... 114

5.7 SUMMARY: ........................................................................................ 115

6. References. ............................................................................................. 116

7 Bibliography .............................................................................................. 137

Appendix- 1 ................................................................................................. 139

Reflective Statement ................................................................................... 139

Appendix 2 ................................................................................................ 142

Cover Page .................................................................................................. 142

Appendix 3 ................................................................................................ 144Questionnaire- Piloting ................................................................................ 144

Appendix 4 ................................................................................................ 154

Final Questionnaire ..................................................................................... 154

Appendix 5 ................................................................................................... 164


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Acknowledgement

I would thank my family for supporting me throughout my life and especially

for the last year as they provided extra support both emotionally and financial.

I would like to thank them also for guiding me throughout my life.

Im grateful and would like to thank my tutor Prof. David Oglethorpe, he

always provided me with correct guidance throughout the year. I would like to

thank him for always being available to give me both direction and support in

completing my dissertation.

I would like to thank my friends and my class mates to support and encourage

me endlessly throughout the year. Thank you.


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Glossary

EMS- ENVIRONMENTAL MANAGEMENT SYSTEM

SME- SMALL AND MEDIUM ENTERPRISES

ISO- INTERNATIONAL STANDARND ORGANISATION

SCM- SUPPLY CHAIN MANAGEMENT

GrSCM GREEN SUPPLY CHAIN MANAGEMENT

SSCM- Sustainable Supply Chain Management


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1. Chapter One- Introduction

1.1 Background

Supply chain management (SCM) is considerable the significant facilitator ofglobalization towards the world economy. On the other hand, because of fast

pace life the world is paying a soaring cost for the lucrative economy

advantages of globalization in stipulation of ecological imbalance. It has been

review by conditions such as global warming, climate change or carbon

footprint. This means there is increase of earth temperature which effects in

rise of sea level due to the melting of ice and reduce the overall land area of

Earth. As the report by the Intergovernmental Panel on Climate Change

(IPCC, 2007) accomplished that there is now unquestionable facts that

climate change is caused due to the burning of fossil fuels by human action.

Hence. In today environment climate change is the major concerned that

needs special attention and stern steps needs to be taken to prevent

environmental collapse. Moreover, the UK government commission and the

Stern Review (2006) reveals that the dreadful economic even though the

environmental consequence of ongoing to implement a business as usual

approach towards environmental concern. As, this inventive information

about the economics of environment transform create a awareness among

the people, to assert them to take Stern steps to tackle the climate change

issue to increase profitability and to get sustainability strategy for long term

growth (Stern, 2006, pp. 12). As the concern of climate change issue is

conceptualized beneath the corporate social responsibility (CSR) as it social

responsibility for every human being to protect the environment in the best

possible way .As the corporate social responsibility has common missionstatements in all the reports from global firm. As CSR relates to transparency

in economic exposure, sustainability coverage, and prospect for stakeholder

discourse. Hence, in the CSR the most important concept is sustainability,

which is define as Elkington(1998, p-20) the principle of ensuring that our


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actions today do not limit the range of economic, social and environmental

options open to future generations and called this attitude as the triple

bottom line approach. The economic, social and environmental dimensions

are also recognized as three pillars of sustainability (Hutchins and

Sutherland, 2008, p-1688). As many research has been conducted and

concluded that larger companies are progressively more integrating

environmental management into their corporate strategies(Groenewegen,

1996). Whereas , some research has shown that small and medium-sized

enterprises (SMEs) lag behind as compare to large companies(Hillary, 2000).

Research conducted on the environmental practices of SMEs (Hillary, 2000)

has describe small firm owner-managers as unaware of the ecological impact of their enterprise,

Deficient of tools and resources constraint to overcome environmental

issues,

Challenging to voluntary act due to the superficial cost, occasion(time) and

resources necessary to shrink environmental impacts,

Incredulous about the business benefits of sustainability and

difficult to engage in everything to do with reducing their environmental

impact.

The growing importanceof GrSCM is motivated mostly by the escalating

deterioration of the environment, e.g. retreatingraw material resources,

overflowing wastesites and increasing levels of pollution. However,it is not

just about being environmentfriendly; it is about good business wisdom and

gaining higher profit. In fact, it motivate the business value and not a cost to

the centre (Wilkerson 2005).In addition, the regulatory requirements and

consumer pressures are driving GrSCM. Hence, the scope of GrSCM ranges

from immediate examining of the wide-ranging of environment management

programmes to have additional proactive practices and that be implemented

through various Rs (Reduce, Re-use, Rework, Refurbish, Reclaim, Recycle,


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Remanufacture, Reverse logistics, etc.). Hence, the purpose of this paper is to

discussed about the importance of GrSCM which is defined as integrating

environmental thinking into supply-chain management which also include

product design, material sourcing and selection, manufacturing processes,

delivery of the final product to the consumers as well as end-of-life

management of the product after its useful life. As this process is known as

life Cycle Assessment (LCA) which includes product life which start from

buying of raw material and ends at product consumption and disposal. We

specifically focus on RL and mathematical modeling aspects in order to

facilitate further study and research.

1.2 Research focuses area and problems

The prime area of this Research is provide the importance of Benchmarking to

reduce Carbon footprint and to investigate the role played by Small and

Medium Sized Enterprises(SMEs) of UK emitting carbon emission, and the

techniques that can be implemented to shrink and reduce Carbon emission by

adopting sustainable supply chain management . Furthermore, research will

analyses cause and effect relationship of human activity in the industrial

sector influencing climate change and Drivers and barrier for SME(s) while

adopting Environmental Management System. It is likely that SMEs have

more environmental impact as per component as compare to large firms and

are the major contributors to pollution, carbon dioxide emissions and

commercial waste (Environment Agency, 2003). Hence, it is very essential to

adopt Green supply-chain management (GrSCM) which is growing curiosity

among researchersand practitioners of operations and supply chainmanagement.


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1.3 Research Scope

There is much of the argument about the climate change , which cause due to

human activity. Despite a huge literature revive on the economic implication

on global warming by discussing the role of government regulations and

demands to control Green house Gases(GHGs) . As there is devastating

issues and effect of climate change. Hence, to overcome this issue there is

major debate by many researchers and authors to take stern steps to achieve

a swift evolution towards a low carbon economy. As it will have sustainable

economy and more resources. The intend of this paper is to create the

awareness among the SME(s) to implement Green supply chain Management

by achieving sustainable supply chain to have profitable business without

disturbing the ecological balance and make them understand that

implementing Environmental management system(EMS) is their corporate

social responsibility which will benefit their business. Moreover, the paper

review and discuss about the prompts and barriers that affect Small and

Medium- Sized Enterprises SME(s) while operating the business towards low

carbon economy.

1.4 Use of research

The relevant literature review is carried out to develop in-depth

understanding of the problems adjoining the research topic. The main purpose

of the research is to investigate and identify the characteristics of an

organizations carbon procedure and strategy implement to tackled while

originate the anticipated benchmarking. This Research will specifically target

to know about how the green supply chain management can facitate the

SMEs to benchmark Carbon footprint, so that they can best represent

themselves to get a more global perspective. As it includes what steps can be

taken to involve assembly environmentally wise preference in supply chain

strategy, design and implementation, while managing the reverse supply


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chain efficiently and reduce waste. As they play an significant role in de-

carbonization through its operations by expanding supply chain, optimism as

it impart through benefit as cost is reduced as it helps to manage risk result

into profitable business (http://www.greenscn.com/). This will result them to

gain Sustainable supply chain management as essential to delivering long-

term profitability and tend to achieve the level when they assess their impact

across a global range of operations.

1.5 Aim and Objective of the Research

Aim of this Research is provide the importance of Benchmarking Carbon

footprint and techniques that can be implement to shrink and reduce

Carbon emission in sustainable supply chain management of UK

SME(s)

Objectives:-

Issue of Greenhouse Gas(GHG) effecting ecological system

Carbon usage, including the effects of climate change and related

legislation/regulation. As Green supply chain management has

recognized the significance of carbon emission monitoring.

Benefit of benchmarking for supply chain management , can be used

to influence green procurement.

SME(s) Importance to reduce Carbon emission and implementing

carbon footprint
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SME(s) Drivers and Barriers in implementing Environmental

management system

Importance of recycling and disposal of products, that include the

opportunity of group composing proposal in combination with general

Suppliers. This concept of material cycles is gradually replacing a one

way' perception of economy

How to tackle the problem of rising concentrations of greenhouse

gases by improving supply chain management and better use material

cycles.

1.6 Report Structure

Chapter One

This chapter endeavor to give a background reflection regarding the study. It

also includes research aims and objective. The focal point and problems are

also measured and follow by a relation to subsequently chapter.

Chapter Two

The chapter include the Literature review on effects of climate change and

government legislation for decarbonizes carbon emission from industry

sector. As Green supply chain management has recognized the significance

of carbon emission monitoring. Major role played by SME(s) of UK in growth

as well emitting carbon emission and waste product and the techniques such

as LCA that can help them reduce carbon footprint. Literature reviews

attempts to show a the cause(human activity) and effects(Climate change)

relationship of UK SME(s) that has adverse effect on climate change and the

Drivers or Motivation and Barriers while implementing Environmental

management system for low carbon emission. A linkage to next chapter is

also being provided.


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Chapter Three

This chapter attempt to deem and give details about the research method and

methodology undertaken for the research. In this chapter a argument has

been shown concerning the method choose for the research. Advantages and

Limitation regarding the methods and methodology is also considered with

their effectiveness for research

Chapter Four

This chapter involves an analytic approach as it analyses the data which is

been collected for the research. Further the collected data would be compared

with the literature review and an analysis of strength and weakness would beconcluded

Chapter Five

This chapter is where the conclusion of the finding and literature review would

be considered. In this conclusion chapter an attempt is made to link the

derived conclusion to the objectives and aims of the research. This chapter

will also involve an approach to identify the limitation to research and

recommendation if any future research is taking place.

References and Appendix.

This section includes all the references which have been used for the

research. A bibliography list has been also included, this list includes other

references which were been used to gain an overall idea of the relative

subject. Appendix section includes other relative material regarding the

research topic. An email proof is also been attached stating a proof form

company which allowed for the interview taken place.


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emission caused by Human activity, have an unpleasant influence not only

on the ecological system but also causes change in climate (IPCC, 2007).

Hence, the governance of United Kingdom has put Challenging objective to

cut down greenhouse gases(GHGs) concentration by 80% by assessing the

life cycle of GHG emission with the help of Publicly Available

Specification(PAS) 2050 (IPCC, 2007; Stern, 2008). PAS 2050 has been

developed by British Standard Institute(sponsored by Defra and Carbon trust)

in Conjunction with extensive consultation from Industry(Carbon trust, 2007).

PAS 2050 is a measurement tool/protocol for organisations to make credible

reduction commitments and achievements on life cycle GHG emission(Sarkis,

2006). Presently UK, is concentrating to reduce (GHGs) emissions fromBusiness activity(IPCC, 2007; Oreskes, 2004). GHGs are mainly targeted as

they come into greenhouse effect, with a natural observable fact, wherein

some of the gases are capable to catch environmental heat and trigger in

raise the Earth's temperature. Therefore, majority of the nations are

dedicated to reduce the GHG emissions under the Kyoto protocol. Whereas ,

UK has setup Carbon Budget to reduce carbon emission for the following

years as shown below

Fig 2.1 Summary of Carbon Budgets for GHGs , 2008-2022


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Keeping in mind a major international policy focusing on carbon pricing and

trading (Stern, 2008). Moreover, the Government of UK sees climate change

as the major issue faced by the world today and plan to take steps by

implementing the Carbon Reduction Commitment(CRC) in dropping carbon

emissions(HM Government, 2006a). On the basis of Kyoto protocol

Stern(2008) stated that the UK targeted to reduce 12.5% of carbon emission

by 2012 from the baseline year 1990.

Figure: 2.2 UK GHG Emission Baseline 1990 2020 Prediction

Source: (DTI, 2007)


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As the reduction by now surpass as shown in the above figure for 2008

reported by DEFRA(Baggott et al., 2007). There is reduction of carbon

emission by 15.3% from the baseline year, with target of achieving 19.3% of

reduction by 2010(Baggott et al., 2007). Figure 2 shows the predicted change

from 2010 to 2020 as mentioned for GHGs within the Kyoto Protocol. From

the above diagram we can easily understand from the total no GHGs. CO2

contribute 85 percent caused due to the burning of fossil fuels(DEFRA,

2006c). But the British Government is trying to target ahead from Kyoto

targets with the help of Carbon reduction Commitment(CRC) reducing carbon

emissions by 30% till 2020 year comparing from the baseline year 1990(HM

Government, 2006a). on the other hand, In spite of small and mediumsize enterprises (SMEs) contributing half of the revenue and

employment (BERR, 2007), little is known about their emissions.Increase in

the number of SMEs will automatically increase their cumulative effect on

climate change (Moss et.al., 2010). The Commission of the European Union

(2006), in its latest report on action forecast for energy efficiency, identified the

impact of SMEs in environmental decision making and the non availability of

proper information regarding their involvement in pollution of the environment.

Moreover, their integration within global value chains(Will, 2008) exposing

them indirectly to the impacts of growing public scrutiny of their larger

customers by a variety of Stakeholders, including non-government

organization(NGOs), the media and other public and community groups(Will,

2008). As there is increasing concerned about the climate change Issue

which give rise to global warming. Hence, Government has implied certain

policy and regulatory demands to reduce Carbon emission and to achieve

better performance from the Industrial Sector that has been mentioned in

Section 2.


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2. 2egislation law and regulatory demands

2.2.1 AGENDA 21

A complete plan of action which is to be taken worldwide, nationwide and

even at a local level by all associations of United Nations, Governance, and

Major Groups in each and every region where environment have impact on

human(Spangenberg, Pfahl and Deller, 2002; Langeweg, 1998;

www.un.org/esa/dsd/agenda21, 2010). Moreover, because of agenda 21 firms

can enhance their productivity in an efficient and effective manner. But

Selman and Knight (2006) suggest that to attain sustainable development

concepts of agenda 21 should be followed. Agenda 21 deals with scrupulous

environmental issues like disappearance of various species and pollution and

deals with economic progress which meets our needs without affecting the

currently existing resources in future. Organization also known as Triple

bottom line(Elkington, 1998) because the term Corporate Social

Responsibility(CSR) revolved around it(Widemann and Lenzen, 2006)(Taken

from low carbon and green supply Chain Wilco Book). For sustainability

according to Carter and Roger (2008) a perfect combination of strategy,

organizational culture, risk management and transparency is essential.

2.2.2 GOVERNANCE IN SUSTAINBILITY

Sustainability is essential in 21st century for any business to have a

balance between technological, economic development and protection of the

natural environment. According to Daily and Huang (2001) many

organizations considers the aim of environmental improvement and are

developing environmental management systems (EMS). It is also agreed by

Darnell, Henriques and Sadorsky (2008) who imply that business performance

can be improved by adoption of EMS and could be an important tool in

business development. EMS consists of internal policies, assessments plans
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and implementation actions which has an effect on entire organizational unit

and its relationship with the natural environment. Establishing of EMS or

getting ISO 14001 certification(See Section 2.3) brings business an ability to

minimize and avoid environmental problems. Moreover according to Daily and

Huang (2001) as we reduce the environmental issues and problems related

with that efficiency and productivity of the business also improves which is

supported by Nawrocka , Brorson and Lindhqvist (2009) . Also the rules and

regulations which force the companies to comply with the legal requirement

has been the driving forces for the company to implement ISO 14001 and

EMS. Furthermore it is also asserted by Carter and Rogers (2008) who adds

that other advantages like reduced costs, shorter lead times and better qualityof the manufactured products comes from the implementation of the ISO

standards


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The EMS-HR factors model (Source: Daily and Huang, 2001)

.

As a result of checking site by third party audit, questionnaire to workers lead

organisation towards few benefits such as (Curkovic and Sroufe, 2010;

Nawrocka, Brorson and Lindhqvist, 2009).

i) Performance of cost could be improved

ii) Performance of quality could be improved

iii) Performance in flexibility could be improved and

iv) Environment performance could improve.


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However, Blake (2009) argues about EMSs barriers in internally and

externally;

Internal barriers are like; lack of sources, financial condition, lack oftechnology devices, and lack of understanding and perception of common

goal, struggling in implement of EMS, organisations culture and negative

attitude of workers towards work for e.g. lack of interest from top management

level (Agenda 21, Chapter 33). Moreover, coaching and assessment of worker

in terms of environment perspective and audit system (Eco-management and

Audit scheme) EMAS on regular basis they need to achieve for better

performances (Nawrocka, Brorson and Lindhqvist, 2009; Slack, Chambers

and Johnson, 2007; Agenda 21, Chapter 29). Whilst external barriers such as;

cost regarding to certification of ISO 14000 standards and EMS, problem

facing in verification for certificate, uncertain market from customers and lack

of effective support for products. To overcome above barriers organisation

should do more concentrate on some skills like, R&D investments, Information

Technology, Engineering equipment, Customer service, Investment in human

abilities and knowledge abilities of employee (Crowe and Brennan, 2007;

Siebenhuner and Arnold, 2007).


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2.3. International Organisation for Standardisation ISO

International Organisation for Standardisation - ISO is a network of nationalstandards of 161 countries, it plays as a role of a bridge between private

sectors and public. Most of the members of ISO are part of government or

mandated by the government bodies of their countries (ISO, 2010). Good

Governance is an essential factor in every sector of society whether it would

be political environment, corporate environment or general

society (Aras and Crowther, 2008).

Fig 6. ISO 14001 Frameworks (Bringas, Carrillo and Peralta, 2008)

ISO 14001 standards determine the requirements for an environmental

management system as a part of the company or even as a whole

organisation based on the continuous development plan as shown in the

above figure 6 (Bringas, Carrillo and Peralta, 2008).


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2.4 ISO- EMS REQUIREMENTS

ISO 14001 has been designed to help organizations to help them make a

continuous improvement in environmental performance.

Continuous source reduction (Source: Kitazawa and Sarkis, 2000)

ISO-14001 EMS requirements can be utilized as a self appraisal apparatus by

the firm (Kitazawa and Sarkis, 2000; Macdonald, 2004). Critical EMS

fundamentals for implementing a uninterrupted source reduction, change in

cultures and operational actions lead to continuous source decline. JIT and

TQM are few manufacturing practices which have an influence on

environment management and sustainability within organization. The major

benefit of implementing JIT and TQM is that they result in tremendous waste


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reduction. The wastes like over- production, wastes due to extra waiting time,

transportation wastes, inventory wastes, wastes in processing and wastes

from product defects are minimized by JIT and TQM (Sarkis, 2001).

Manufacturing organizations functions and environmental influences are as in

the figure below.


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Manufacturing Organizations functions and environmental influences

(Source: Sarkis, 2001)

In addition few standards of ISO such as ISO 14031 concentrates onenvironmental performance and changes in it over time. (Hervani, Helms and

Sarkis, 2005).

2.5 Sustainable Supply Chain Management

Sustainable Supply chain Management is also known as Green supply Chain

management and Logistics in Supply chain Management(Sarkis, 2006).

Sustainable supply chain means a well managed material and data flow

among companies in a cooperative way keeping in mind the three dimensions

of sustainable development (Seuring etal., 2008). The three dimensions of

sustainable development are economy, environment and society, in

accordance with the stake holders. For sustainable supply chain,

management of social and environmental issues is not the responsibility of

organization alone but all elements of the supply chain must participate.

Sustainability of supply chain can be enhanced by concentrating on effective

reuse of the product returns and minimizing wastes. French (2008) suggests

that sustainability can be increased by creating awareness on the impact of

industrialization on the environment. According to French (2008) the main

factors which are responsible for the wastes and emissions are manufacturing

of products, transportation, utilization and disposition. Tsoulfas and Pappis

(2006) agree with French (2008) and state that every product which is

manufactured, transported, utilized in the supply chain leaves behind their

environmental influence. Tsoulfas and Pappis (2006) also suggest that

recyclability and reusability depends on the factors like product design,

packaging used, waste or used product collection and transportation

technique and recycling techniques. To achieve sustainable supply chain


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Tsoulfas and Pappis (2006) put forth an interesting concept of material flow

management in accordance with environment. The impact of the any

products on the environment depends on the type of material used, energy

consumed and waste release during the products whole life cycle.

The material flow (Source: Tsoulfas and Pappis (2006)

According to Tsoulfas and Pappis (2006) the supply chain comprises four

stages which begin with material selection followed by manufacturing as

per the product design. Pollutants and emissions depend on product

design and manufacturing methods used. The product is actually

manufactured is packed in the process of packing. The next stage is the

distribution either to end user or to the shop. The moment end user

decides not to use the product, reverse supply chain starts. This is the

complete material flow. The product then should send to get recycled

which also supported by Linton, Klassen and Jayaraman (2007) saying to

attain sustainability at lower cost recycling is important. Tsoulfas and


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Pappis (2006) He also suggested that sustainability might have chances of

short term investments but it results in improvement of sustainability. At

each stage there are various wastes and emissions formed depending

upon the product. The focus should be given on both disposal and

manufacturing process as environment gets affected strongly during these

two stages and thus policies are prepared to save the environment.

Therefore complete material flow should be studied and junctions are

evaluated where maximum impact on environment takes place which

results in sustainable supply chain. Moreover for sustainable supply chain

strategies like green purchasing reverse logistics, lifecycle assessment

and ISO 14000 certification should be implemented (Svensson, 2007

Fig 2.2. Sustainable Supply Chain Management SSCM (Carter and Rogers,

2008)


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In todays environment sustainability seeks to make a balance within the

improvement which defines the class of human life and other components

included are economics, social and environmental (Morris and Vasileiou,

2006) and the concerns regarding sustainability are constantly changing as

the condition change, the condition changes, the changes are strongly

depended on factors such as population growth and increase in people

earning power (Arnott, Lacy and Lowitt, 2009). Moreover, Morris and Vasileiou

(2006) added to this by commenting that Sustainability is a dynamic concept

as the perception of sustainability has changed extremely with the changes in

knowledge, market preferences and technology and government policy. The

basic structure of sustainability in supply chain show in fig 8

SUPPLY CHAIN REDESIGN

PROMOTING SCALE ENHANCING

EFFICIENCY

FIG 8 SUSTAINABILITY IN SUPPLY CHAIN

(Mangan, Lalwani and Butcher, 2008)

Moreover, sustainable provide legal frame work for stakeholder in supply

chain, which implies that each stake holder has responsibility and commitment

towards protect environment with their legislation (Svensson, 2007).


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2.6 Green Supply chain

Green supply chain is a procedure where inputs which are use areenvironmental friendly and transformation of this inputs into outputs that can

be claimed and used again at the end of the life cycle which results in a

sustainable supply chain (Cognizant, 2008) as green supply chain have a

major influence on the environment (MollenKopf, Stolze and Tate, 2010). The

focus of green supply chain for an organisation or industries requires a

working with suppliers and their customers, analysing the internal organisation

and process, considering environment in the process of product development,

extended stewardship across the whole product life-cycle (MollenKopf, Stolze

and Tate, 2010). Agenda Chapter 8 also consists about the Green supply

chain.

Fig 9. Environmental Impact at each stage of the supply chain (Cognizant,

2008).

Information Technology (IT) could be use to make the supply chain green by

optimising the resources required to support the business as IT facilitates

more effective supply chain planning, execution and collaboration hence

results in reducing the resource requirement (Cognizant, 2008). Innovation


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In Green purchasing the effect of the purchase on the environment is

considered. Furthermore, government and firms have started understanding

the importance of green purchasing, they have realized that every single

purchase has impact on environment and with careful sourcing finances can

be saved. Michelsen and Boer (2009) maintain the views of Walker and

Brammer (2009) and adds that green procurement is all about producing

products which are environmentally sound. He claims that by following correct

practices helps to minimize the environmental influence throughout the

product life-cycle. Also collecting, transporting, manufacturing the product

needs fuel which can result into pollution so the selection of fuels should be

wise. Moreover even mode of transportation makes the difference i.e. sea andrail transport is comparatively cheaper than air transport and results in less

emissions. Also selection of supplier from a large distance i.e. outsourcing

might have additional effect on the environment. As Procurement function

plays an important role in initiative such as Six Sigma and DFE(Design for

Environment), which works on the improvement of the entire system and

identify the significance of the design phase in minimizing cost and

environmental effects (Sarkis, 2006, p-49)

Procurement Role and value prospects in the product life cycle

Value prospects in Product life

CycleProcurement Role

Redesign of Companys

product or service and process

improvement

Describe available Supply options, facilitate

collaboration with expert suppliers, and help

craft accurate purchasing specifications.

Deciding subcontract process Conduct a make or buy analysis

Streamline material

management ( integrated

procurement or inventory

Facilitate collaboration with other

department and suppliers to optimize whole-

system supply chain performance


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minimization)

Attain better products and

services

Identify and purpose superior alternatives.

Select new suppliers or work with current

suppliers to improve supplier quality and

process. Perform quality assurance checks.

Improve in-coming

transportation and logistics

Assess total cost of logistics system and

develop appropriate control mechanism

Improve supplier processes Monitor process, provide education and

suggestion, and facilitate expert-to expert

collaboration

Improve supplier organizationalstrengths(financial soundness,

reliability)

Evaluate supplier management system,screen out weak organization, and help

suppliers improve management systems.

Source: (Sarkis, 2006, p-49)

2.7Major role played by SME(s) in emitting carbon emission.

Micro, small and medium-sized enterprises (SMEs) are, nationally and locally,a verysignificant component on the business scenes meanwhile they also

account for a largeshare of growing environmental concerns(Hillary, 2004).

SMEs play an important role in the British economy with the help of their

contributing role in gross domestic product, employment generation,

modernization and the encouragement of entrepreneurship, using them as

important drivers while moving towards low carbon future (IPCC, 2007).

According to the report of The BERR (2007), in UK, 4.71 million private sector

activities were involved in trading; SMEs constituted about 99.9% of total

businesses. SMEs can be explained clearly by the number of workers,

annual earnings, annual balance sheet, or by the self-sufficiency (Rao, 2007)

as seen in Table 1. SMEs are uncontrollable by a bigger firm and sometimes


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might have a 25% power over of another firm (Europa 2009). Nevertheless,

the amount of workers is the frequently considered while defining

SMEs(Europa 2009) as size is significant in distinguishing them from bigger

firms. For example 250> employees. However, the SMEs sector is varied: all

firms having a smaller size are put together without considering their industrial

sector, the conditions of their activities and size. Therefore, Hillary (2004,

p568) implied that studies which try to examine the sector and conclude

regarding it, are to some extent, comparing not just apples and pears, but the

whole fruit bowl. Jobanson (2000) found the firm conducting their business in

a similar sector do not improve in a similar manner because of the variety of

procedures that come across different SMEs.

In 2007, in UK, SMEs contributed about 59.2% of jobs (13.5 million jobs),

and, 51.55% of annual income of private sector 1882 billion(BERR, 2007).

Therefore, SMEs are necessary for a strong economy, making it flexible,

modernization, competition, and a significant cause in generating

employment.(Gerstenfeld & Roberts 2000). On the other hand, SMEs results

to about 50-70% pollution caused by the industries(Hillary 1995; Pimenova &Vorst 2004; Revell & Blackburn 2007) and results to around 80% or roughly

5400 pollution activities(Netregs 2007; Revell & Blackburn 2007). It is even

said that SMEs are the main reason for 43 per cent of grave industrial

pollution accidents and produce about 60 per cent of commercial waste in


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England and Wales (Environment Agency, 2006, p. 11). Commercial waste, is

presently a matter of great concern(House of Lords, 2008). It is an imperative

source of implanted emissions of greenhouse gases. However, despite their

increasing impact) surveys conducted by Netregs (2007) on SMEs discovered

that only they made only 15% of the critical environmental impacts, however it

augmented to 49% once impelled. However, the most of the SMEs, and their

shareholders, think that their individual effects are too minimal (Hillary 2004;

Gerstenfeld & Roberts 2000; Price 2007; Smith, Kemp & Duff 2000). EMSs

play a significant role in enhancing SMEs legislative fulfillment (Tanaka 2008)

and minimizing their environmental influence. Because of SMEs large

combined environmental influence, it is necessary to recognize the reason oflow up-take of EMS by SMEs. Despite having a substantial g lobal uptake of

EMSs such as ISO 14001 their uptake and execution in the SME sector still a

major issue (Hillary, 2004). After studying SMEs and CSR in UK discovered

that omission from supply chains is one of the important risks of not engaging

in CSR (Roberts et al., 2006), as most of the bigger firms have started to

consider social and environmental criteria in their procurement policies. A

report by the Department of Trade and Industry (DTI) on business and society

asserted that, CSR can turn into gradually more significant business concern

for many SMEs in future(Baden et.al., 2009) Supply chain pressure was

discovered to be the most important cause for environmental change in a

study of SMEs in HongKong (Studer et al., 2008). It has been recommended

that a solution for such an issue would be for bigger firms to offer incentives

and give a supporting hand to SMEs so as to make compliance economically

feasible (Raynard and Forstater, 2002). As Spence (2007) identifies the

following issues relating to business ethics and CSR:


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Looking for assurance that the object SME is according to CSR

standards;

Equality of treatment of the supplier when discussing various termssuch as terms and conditions, and utilization of power in supplier

relationships;

Scepticism regarding the perceived benefits to SMEs, even when a

partnership approach is taken;

The assumption by large firms that formal standards are applicable in

measuring CSR in SMEs; and that

(Large company) social responsibility and ethics policies should seek

an open and honest partnership with SMEs and not by attempting

misuse or short-term profit.

However, it has been suggested that smaller companies also have a valuable

role to play even if it is accepted that large businesses and primary suppliers

need to help the SME community (HM Revenue & Customs, 2006, p-21).

Interestingly, however, Williamson et al. (2006a:4) found scant evidence of

suppliers working collaboratively to solve environmental problems with the

help of Drivers and motivation provided to them. However, even they face

many barriers while implementing EMS as been discussed below as

1) Motivation and Drivers behind EMS implementation for SME(s)

2) Barriers behind EMS implementation for SMEs

2.7.1 Motivation and Drivers behind EMS implementation for SME(s)

Motivations which are frequently recognized behind the implementation of

EMS for SMEs are pressure from shareholders or supply chain, legislative

obedience, possible cost savings, consciousness of the environmental or

sustainability issues, business competitiveness, enhancing the morale of the


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workers , accessibility of government funding and investors first choice for

organizations with EMSs because of less environmental risks(Hertin et al.

2008, NetRegs 2007, Price 2007, Tanaka 2008). The reason for

amalgamating an EMS is very significant in understanding QMS(Quality

Management System). The Anton, Deltas & Khanna (2004) discovered that

EMSs quality plays an important role than the presence of the firm as it

examines its effectiveness: the pressure of the shareholders influence the

quality of EMS. If there is more pressure from shareholders the quality of EMS

also increases. For example the Manufacturing Industry. A deep study by

Hillary (2004) assessed 33 different studies that examined the practical

execution effect of EMSs on SMEs and the outlook of smaller organizationstowards environment, also showcases various advantages of EMS. As Hillary

(2004) reported that the external environmental advantages were the

enhancement in the environmental performance, guaranteed legal fulfillment,

increase in the process of recycling, and decrease in pollution. The

implementation of EMS in SME also helps them in communication. It helps in

developing a positive image in the mindsets of the consumers, maintaining

good customer relationship, and also building a good association or

connection with regulators. (Hillary, 2004). However, to handle the firms

image in a particular market, Corporate Social Responsibilities (CSR) is the

most significant element to be taken into consideration.(Muller, Santos and

Seuring, 2009; Labuschagne, Brent and Erck, 2005; Vachon and Mao, 2008).

They have defined CSR (pg. 510) as categories or level of economic, legal,

ethical and discretionary activities of a business entity as adapted to the

values and expectation of society. Gradually, co-operate strategy mainly

concentrates on improving the environmental performance but, if they

increase in rights among the stake holder could lead them to reduction in risk

mechanism (Brito, Carbone and Blanquart, 2008).


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2.7.2 Barriers to EMS implementation for SMEs

The organizational problems are the problem that would negatively impact onEMSs quality. As the implementation of EMSs are voluntary and would

therefore need assurance from the management and other key entities in

order to implement and sustain (Gerstenfeld & Roberts 2000; Hertin etal.

2008). The possibility of many EMSs regularly draw the limits at the factory

gate that results to the environmental effects from the supply chain and also

the indirect impact and the disposal of products are being ignored (Hillary,

2004). Finally, EMSs faces problems in capturing the subtle elements of

environmental problems, such as bio-diversity or indirect effects (Christmann

& Taylor, 2006). ISO14001 and EMAS are one size fits all standards as

these policies were designed in order that every business uses it (Starkey,

2000). The major internal and external difficulties faced by organization in

order to implement EMS in SMEs have been summarized by Hillary (2004)

(Table 2). It is been also said by authors that small businesses usually

experience greater problems which deals in engaging their business in

socially responsible behavior due to lesser resources available in terms of

time, money and expertise (Lepoutre and Heene, 2006). As the author

concludes that the major barrier or problem faced by SMEs is less number of

human resources available.


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In response to these problems faced Gerstenfeld & Roberts (2000) suggested

that programs and EMSs should be responsive to the requirements of SMEs,

considering the tight cash flow, time limitation and human resources, local

programs, cooperation between SMEs such as being friendly user and

responsive for various organizations(Hillary, 2004). Hillary (2004) states that

SMEs gain real benefits despite of the problems they face. Moreover

Gerstenfeld & Roberts (2000) and NetRegs (2007) discuss the geographical

persuade on the quality level of EMS. The cultural commitment is been

determined by the location in regards to EMSs. In the UK, NetRegs (2007)

establish that the number of SMEs believed that they were a cause of

environmental harm which varied from geographically location such as 44% in

Northern Ireland to 53% in Wales. The variation in the environmental harmcould be mostly because of the distribution of industry types between the

countries of even due to various cultural differences in environmental beliefs.


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2.7.2.1 Size and resulting resource constraints

SMEs encompass organizations of multiple sizes (Table 1). Resources suchhuman, financial and time are considered to be main determinants of EMS

effectiveness and the size of the organization concludes their availability:

SMEs usually experience resource constraints mostly in regards to Micro

organizations (Hillary 2004, Gerstenfeld & Roberts 2000). SMEs mostly have

reactionary management; they usually divert their available resources to core

business activities (Smith, Kemp & Duff 2000). Price (2007) survey revealed

that 40% of SMEs found the cost incurred on implementation and certification

is mostly outweighed the benefits. While (Pimenova & Vorst 2004) survey on

SMEs has reported that the major problems to environmental enhancement

are time (55%), cost (45%) and technology (32%). In addition to this they may

also faces problems in regards to rapid staff turnover which results in leaving

of environmental Managers (Hillary 2000: Revell & Rutherfoord 2003).

2.7.2.2 Industrial sector

The EMS quality and the EMS effectiveness could be affected even within thesame sectors of various operational conditions and consumers pressures

(Hertin et al. 2008). In addition, EMS accreditation is mainly attracted by the

manufacturing and chemical industries due to the sectors familiarity with

ISO9001 quality management system (QMS) or because these sectors are

usually under pressure to show their environmental credentials (Price, 2007).

2.7.2.3 Lack of Training and Awareness

NetRegs (2007) revels that only 15% of SMEs considered they had

environmental effects, however when the effects are acknowledged the

available staff tend to exhibit low levels of eco-literacy (Revell & Blackburn


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2007). Eco-literacy, in the form of environmental qualifications and previous

skills of environmental management as this may influence the EMSs success,

because inadequate of knowledge in regards to the benefits and also the

details regarding the implementation process for EMSs as this may be

discouraging. In addition to this Stakey (2000) argued whether smaller

organizations with informal management systems finds ISO14001 too

bureaucratic and crucial. The disadvantage of implementing EMS has not

been widely explored. However in the SME sector, Hillary (2004) states the

main three disadvantages such as: less number of resources such as money,

time and skills. However, recently it is been mainly focused on encouraging

large corporations to under take responsibility for the environmental actionsthey are responsible and a little attention is given to a significant part that

SMEs usually have to play. The corporate social responsibility (CSR) agenda

has been assist for a long time in regards to larger enterprises, but recognition

of this also needs to assist so SMEs would be able to take more responsibility

for their actions they undertake (Moss et.al., 2010). It is focused to assist

SMEs in order to act more responsibly and also to give recognition to various

SMEs that are already working (European Commission 2007). As EMS

identifies the non-conformities toward legislation that are costly or even

difficult to rectify, and also less of market reward (Hamschmidt 2000). The

obvious disadvantages such as dissuading SMEs from implementing an

EMS. Moreover as stated above Price (2007) states that 40% of SMEs are

considered of the implementing EMS cost in regards to their advantages.


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2.8Tool and Techniques

2.8.1 LIFE CYCLE ASSESSSMENT AND ISO

Life cycle assessment (Source: Rebitzer et al., 2003)

Sustainable development requires some methods and tools to evaluate,

measure and compare the impacts on environment through procurement ofgoods and services practiced by humans. The environmental impacts are due

to the emissions which take place during manufacturing, extraction and other

processes. Thus Life cycle assessment according to Rebitzer et al., (2003) is

essential which helps in estimating and assessing the environmental effects

attributable towards the life cycle of a product. On the other hand, LCA is key

think to considered in supply chain because it provide information related to

production service which have impact on environment and customer (Hutchins

and Sutherland, 2008) for e.g raw material, manufacturing, distribution usage,

waste and disposal option. The LCA working can show in fig ( )below;


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FIGURE ADAPTED LCA FOR ENVIRONMENT

(Hutchins and Sutherland,

2008)

Life Cycle assessment is recycling assessment of products to reduce waste,

air pollution and water pollution (Montaben et al., 2006; Agenda 21, Chapter

18). Moreover, re-cycle is reuse of products to upgrade their quality and

sometimes this quality become better than original quality which lead them to

reduces cost, waste reduction and can get benefit for economy. To overcome

of LCA problems organisation should obey the governance of specific

countries with good strategically relationship, having basic knowledge for

adoption of governance policy. As result of above solution organisation could

get better development of industries, better profit, and better image in market

(Siebenhuner and Arnold, 2007). Moreover, total quality environmentmanagement involved workers from organisation to improve product and

process under ISO 14000 standards from ISO 14040 to ISO 14043 standards

to qualify their process (Walton, Handfield and Melynk, 1998).


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(Finnveden et al., 2005). On the other hand, LCA modelling is helpful when

it is utilized for recognizing improved waste management situations and

options, such as: Energy from Waste (EfW) that decreases the

requirement for additional energy sources; recycling in putting back the

virgin objects; biological treatment discharging fuels; remains from ignition

utilized as fill-in for construction of road; and, the similarity of diverse

opportunities for waste management of particular material (Ekvall et al.,

2007; Thorneloeet al., 2007). Generally, permitting the problems and

restrictions it is silently a influential tool when worries are accounted for

with superior conclusions, and LCA modeling is utilized for assisting the

decision making, not as a method of putting back decision creators(Ekvall et al., 2007; McDougall, 2005). Presently there are intrinsic

complicatedness in LCA modeling such as reasonable allowance of

environmental burdens to particular product and problems taking place

from the partiality in total environmental impacts (Russell et al., 2005), life

cycle beliefs is necessary to consideration for carbon footprint inference of

waste management system. Additional, LCA provides a precious

approaching in effects external of waste management systems instant site

and limitations due to emission linked gases are mobile and influence

location huge distances missing from the main source (Koneczny and

Pennington, 2007)

2.8.2 Dispose or reuse and recycle:

As Organizations have focussed on the other side of the supply chain

operations with recycling issues. According to Pagell, Wu and Murthy (2007)

say that when the equipment is returned from the customers of companies,the company either recondition the old equipment or reclaim the materials

they are made from, reprocessing them into raw materials. The life cycle of

product includes their whole start to end processes. They include production,

sales, end of life, reuse and recycling shown in figure given below: The author


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explains that it is essential for reduction in environmental effects could be

acquired by product remanufacture and also reusing the product. Moreover

the author discussed the following benefits of reuse:

Organizations monetary expenditure could be reduced by proper utilization of

the components in producing or acquiring new components.

Reduction of energy and material consumption during manufacturing because

the existing components are utilized.

Furthermore according to Horvath et al., (2005) the recovered products faced

more competition from new products; the investment on product recovery

becomes a risky venture. Adding to the author Prallinski and Kocabasoglu

(2006) suggest that the cost of recovered products can be reduced by optimal

locations and allocations of facilities on reverse logistics. The diagram shown

Source: Matsumoto (2009) p. 1548


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below shows the content categories for a reverse logistics system. (Issues

from section 1 of Agenda 21)

They say that reverse logistics may be the answer to improving the

environmental impact of the supply chain by improving material use.

2.8.3 Life cycle thinking

Life cycle thinking is important to consider the implication of different waste

management systems beyond their traditional regional boundaries, and

adoption on this perspective of life cycle thinking is important for sustainable

management of waste (Ries, Thabrew and Wiek, 2009).

Fig 9. Life Cycle Thinking in Procter and Gamble (2009)

Source: Pokharel and Akshay (2009) p. 177


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The strategy of Life cycle thinking helps and organisation to reduce its local

pressure and waste management cost and at the same time reduces the trade

off felt in the society, this approach ranges from raw material to the production

raw material to the production and then distribution, use and post use

product management and other related activities (Ries, Thabrew and Wiek,

2009). Through engineering, tools and concepts Life cycle thinking aims at a

higher sustainability of the overall economy (Ries, Thabrew and Wiek, 2009).

Summary

This chapter includes the Literature review on the effects of climate change

and the government legislation to decarbonizes carbon emission fromindustry sector. As Green supply chain management has established the

importance of carbon emission monitoring. Major role played by SME(s) of UK

in growth as well emitting carbon emission and waste product and the

techniques such as LCA that can help them reduce carbon footprint.

Literature reviews attempts to show a the cause(human activity) and

effects(Climate change) relationship of UK SME(s) that has adverse effect on

climate change and the Drivers or Motivation and Barriers while implementing

Environmental management system for low carbon emission. A link to next

chapter is also being provided.


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Chapter 3- Methodology

This methodology section explains the methods and methodology adopted to

fulfill the research objectives and aims mentioned in the Chapter 1 and finds

the solution for appropriate research topics (Polonsky and Waller, 2010) and

research questions followed by Deductive or Inductive approach that we can

further see in research Methodology. It begins by directing the justification for

research along with the Research Philosophy, Research Methodology,

Research Strategy, Research Approach, Tools and analysis technique, Ethics

of the Research, Research Limitation, Reliability and Validity of the Research

by giving justification to each and every section for the choice of result has

been selected for the quantitative approach. Saunders et al.,(2009, P. 90)

implies that the rational of the research strategy is supposed to be reliable on

the research objectives and questions. Hence, derivative from the research

objectives and questions, identify the various sources to gather data and

reflect on the problems that will certainly have for example location and

money, time, access to data, ethical issues.

3.1 Research Philosophy

It is significant to identify and realize your individual pattern as these establish

the whole duration of the research development (Hussey and Hussey, 2000).

Philosophy is applied to argument and reason in looking for information and

fact which deals with crucial actuality or of common causes (Collis and

Hussey, 2009). There are two main research philosophies that are positivism

and phenomenology or Interpretivism (Hussey and Hussey, 2000). As Hussey

and Collis (2009) states that research methodology could be applied with two

different approaches, phenomenological and positivistic approach. To avoid

the chaos at the later stages between Poitivisim (Positivist) and Interpretivist

(Phenomenological) table below shows the difference between two


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philosophies. As both the philosophies have their specific strength and

weakness which shown in the table below

3.1.1 Interpretism

Interpretism is developed by the common fact which is not objective but very

subjective therefore it is shaped by human observations (Collins and Hussey,

2009). The research communicates with the being researched because it is

not possible to divide what exist in real and social world from what is going in

the researchers mind (Saunders et.al, 2009). Through this process express

its own experience in order to understand those of the informants.

3.1.2 Positivism:

Positivism is developed by the principle that social actuality and the global

detection of various theories based on observed research (Collins and

Hussey, 2009). Addition to above, facts are gain from positive information

cause every logically reasonable declaration can be systematically identified

or is accomplished of rational or mathematical evidence (Walliman, 2001,

p.15). As the research guiding business research under a philosophy that

arises from positivism is focused on various theories to describe socialcircumstances. Kent (1993) states that with this action, human achievement

has seen to be a consequence of outside stimulus that can be analyzed into

effect and cause relationship.

3.1.3 Justification of Research Philosophy

As per the material of the Chapter 2(Literature) the issue of climate Change

that result into global warming caused by Anthropogenic (effect of human

being on the natural world ) has been discussed. Hence, Positivism

Philosophy has been taken, as we can easily find out caused and effect

relationship from the above discussion in Chapter 2.As, SMEs are expected

to cause 50-70% of all industrialized pollution(Hillary 1995; Pimenova and


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Vorst 2004; Revell and Blackburn 2007) and cause annually, 80% or just

about 5400 pollution incidences(Netregs 2007; Revell & Blackburn 2007).

3.2 Research Methodology

There are two different ways of building what is right or wrong to make

Conclusion; Induction and deduction. Induction is depending on experimental

proof, while deduction is all based on logic (Ghauri and Gronhaug, 2010). In

common it includes the complete design, which can bring to the option of

Research Methods. As Bailey (2007) defined methodology as How should the

researcher go about finding the social actuality?(Bailey, 2007, p.51).

Important differences between deductive and inductive approaches toresearch

Deduction Emphasizes Induction Emphasizes

Scientific Principles Gaining an understand of the

meanings human attach to events

Moving from theory to data. The need

to explain casual relationship betweenvariables

A close understanding of the

research context

The collection of quantitative data The

application of controls to ensure validity

of data

The collection of qualitative data

The operationalisation of concepts to

ensure clarity of definition

A more flexible structure to permit

changes of research emphasis as

the research progress

A highly structured approach Research

independence of what is being

A realization that the research is

part of the research process


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researched

The necessity to select samples of

sufficient size in order to generalizeconclusion

Less concern with the need to

generalize

Source: (Saunders et.al., 2010, p-127)

3.2.1 Deduction:

Deduction is a method by which we turn up with logical conclusion by rational

simplification of recognized fact (SEKARAN and BOUGIE, 2010). As it require

not be truth in actuality, but it is rational as we appear at the penalty of a

theory (GHAURI & GRNHAUG, 2010). As Deduction involves gather of

actual facts to make sure or challenge the assumptions relationship among

variables that have been deduced from propositions (GHAURI and

GRNHAUG, 2010). The Deductive Methodology involves quantitative

research whereas we build hypothesis from the obtainable Knowledge

(Literature), which can be focus to practical analysis and thus can be

approved or rejected (Bryman and Bell, 2007). The main goal of the

researcher is not just to make assumptions from existing literature but also to

define them in functioning conditions (Bryman and Bell, 2007)

3.2.2 Induction:

Inductive research is a lesson in which theory is derived from the observation

of experimental reality (Hussey & Hussey, 2000) which is opposite of

deductive method. It gives conclusion from the practical knowledge or user

experience from particular subject area (Collis and Hussey, 2009). As it

involves drawing from individuals observation to detailed view of general

methods or laws, and even it is also described as a drawing from specific to

the general (Collis and Hussey, 2009). According to Saunders et al., (2009)


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the inductive Methodology involves qualitative research which is troubled with

the context in which events take place.

According to the content of the Chapter 2(Literature) the issue of climateChange that result into global warming caused by Anthropogenic (effect of

human being on the natural world) has been discussed. Hence, Positivism

Philosophy has been taken, as we can easily find out caused and effect

relationship from the above discussion in Chapter 2.

3.2.3 Justification of research methodology

The deductive research is moves from the broad to the particular (Collis and

Hussey, 2009). As in Chapter 2 the general issue of climate change has been

discussed which goes further towards the small scale industry sector to point

out role played by SME(s) in emitting carbon. Hence deductive approach is

adopted.

3.4 Research Strategy

The research strategy is mostly used to resolve the questions of the Issue

raised in review of literature (Saunders et al., 2009). Research Strategy is the

most important aspect and extensive activity from which we can find results, in

order to fulfil the aims and objective of the research (Hussey and Collis, 2009),

as Mentioned in Chapter 1(Introduction). Even research strategy is totally

based on philosophy the researcher has adopted, as both the philosophy has

different type of research strategy (Saunders et al., 2009) as shown below.

Therefore, it is stated that the research strategy is the practical framework of

the research which is connected to theoretical knowledge(Literature)

(Hallebrone and Priest, 2009).In the table below () in which first two strategy

are quantitative and rest are qualitative research from the above figure that

has been describe on dividing each strategy into Merits and Deficiencies .


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Table 2: Evaluating Different Research Strategy

Research

MethodMerits Deficiencies

Survey

Generalizability of findings

from large samples

Especially useful for

hypothesis testing

Easy and inexpensive to

administer

Offers anonymity

Not in-depth, hence not

useful for studying complex or

conceptual issues

Responses may be biased

by the questions

Statistical validity and

reliability concerns

Problems with low-response

rates

Experiment

Robust control of variables

possible

Causality can be established

High cost in terms of time

and money

Legal and ethical

constraints

Recruiting subjects is not

easy

Artificial

Grounded

Theory

Systematic generation of

new theory from data

(interaction between datacollection and analysis)

Analyze experiences from

the standpoint of those who live

Perspective-based

methodology (perceptions

vary)

Difficult when

conceptualizing complex

phenomena, requires strong


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it

Context-based and process-

oriented

research capabilities

Not recommended for

description

Subject to researcher bias

Generalizability

questionable

Case Study

Provides in-depth and

holistic perspective

Multi-faceted; can show

different perspectives

Can show how processes

work over time and give

insights into cause and effect

Can serve both exploratory,

descriptive and explanatory

purposes

Can supplement statistics or

survey results

Limited generalizability; not

representative of entirepopulations

Time-consuming and

expensive to administer

Bias of both the recipient

(researcher) and supplier of

information

Data can be too rich, broad

and complex to be analyzed

Data analysis depends

strongly on the analytical skills

of the researcher

Particularly difficult when

dealing with rich and complex

data

Ethnography In-depth and holistic Bias of the researcher


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description

Can identify causalities

Requires strong research

capabilities

Time-demanding

Action

Research

Findings have strong

practical implications

Provides unique insights

Requires full access to the

organization

Perceived as improving

mainly practitioner and not

academic knowledge

Time consuming

Sources: Remenyi et al. (1998)

3.4.1 Survey

The Survey Strategy is generally linked with the deductive methodology. It is

admired and ordinary strategy used in business research. Surveys are well-

liked as they permit the collection of huge amount of data from a significant

population in a highly inexpensive way. Moreover, the survey strategy is

supposed as a reliable by people in common, fairly easy to clarify and to

understand. The Survey Strategy gives us chance to gather quantitative data

which can examine quantitatively using expressive and inferential statistics.

Hence, while adopting this strategy few things should be believe as it is

important for this research that the researcher needs to use time when

ensuring that the sample is diplomat , conniving, and piloting the data

collection methods as it the most important part of the research for getting

good response rate. Similarly, a lower than normal response rate does not

necessarily means that responses are biased (Rogelberg & Stanton, 2007).


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As, the BERR (2007) stated in report that, in the UK, 4.71 million

final submission (2) print

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