sustainability in cemex (uk)assignment,cemex suatainability

8/11/2019 Sustainability in CEMEX (UK)Assignment,CEMEX Suatainability

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Contents

Abstract

Part A

Introduction

Company Background Vision Mission

Sustainability based on CEMEXs claim

CEMEX Sustainable Projects in UKo Enhancing Value Creationo Manage the Footprinto Engage their Stakeholderso Measurement and Assessment

Current framework Measurement and Assessment Key Assessment findings Governance Stockholders Leading in sustainable construction Contribution to infrastructure Improving Carbon Strategy

Excellence in environmental and Biodiversity management: High priority to health & safety Employee Relation Strengthen local communities Awards presented to CEMEX UK in 2010 Key performance indicator

Part B

Human resources concepts Schwepker model& Shahzad HR practice and leadership

Fishbone model SECI model Proposed new framework The problem which we have with new technology What have we learnt?

References
http://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CFYQFjAB&url=http%3A%2F%2Fpk.linkedin.com%2Fpub%2Fkhurram-shahzad%2F9%2F0%2F9a9&ei=nnamT52AJ4jlrAfqoZ3SAQ&usg=AFQjCNHLHsT7SWb1EkQiUcK9DhuEVM_gsQhttp://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CFYQFjAB&url=http%3A%2F%2Fpk.linkedin.com%2Fpub%2Fkhurram-shahzad%2F9%2F0%2F9a9&ei=nnamT52AJ4jlrAfqoZ3SAQ&usg=AFQjCNHLHsT7SWb1EkQiUcK9DhuEVM_gsQ


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He brought hybrid trucks from Denmark to carry concrete in rolling drums to agitate their

content. It was a revolutionary invention in this industry.

Vision: A financially sustainable business regarding a positive connection to people and the

environment

Mission: CEMEXs mission is to provide building needs o f its customers worldwide and make

profit for its stakeholders by becoming the worlds most successful and profitable company in

this area.

Sustainability based on CEMEXs claims

The company knows this fact that it needs to manage its business in advance to guarantee its

positive involvement in making a more sustainable perspective, i.e., as part of a total approach

within a firm governing body, and according to British Government's social, environmental and

economic objectives for sustainable communities. Every year CEMEX allocates more than 30

million for sustainability-related plans in UK.

CEMEX Sustainable Projects in UK

This interim report shows the company's sustainable projects during 2010. In this report we can

see great steps which have taken in issues of great importance to the company's stakeholders

such as a 49% reduction in waste return to nature, 35% improvement in environmental bad

events, use of alternative energy source 7% and a reduction from 19 to 6 in lost time incidents.

The companys vision is for a successful and sustainable entity which could make a positive

involvement for people and the environment. Therefore, company started to play a major role in

sustainable buildings by helping to merge sustainability practices into day-to-day life and

decision- making processes. This companys model assures that its efforts and resources would

concentrate on most important issues relevant to the business and have greatest concern to its

stakeholders:


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CEMEX sustainable approach and thus its contributing to a more sustainable environment is

followed by three sustainability targets:

Enhancing Value Creation

CEMEX wants to provide innovative and high-tech products and solutions which our

resource limited world needs to make a profitable as well as growing economy with low-

carbon feature. By meeting the construction sector requirements to follow more sustainable

operations, it assumes to create durable competitive benefits.

Manage the Footprint

CEMEX attempts to lower the environmental side effects of its construction operations.These effects are carefully recognized and surveyed to continuously reduce them to the

lowest degree which is executable both economically and practically. There is also a firm

plan to reduce carbon wastes which could in turn reduce companys operations

environmental side effects.

Engage their Stakeholders

CEMEX keeps an effective and long-term relationship with major stakeholders to meet the

critical needs and concerns of communities. CEMEX with its highly devoted and

experienced staffs closely cooperates with a wide range of institutions which let company to

use its all abilities generating social advantages that play a role in strengthening local

environments.


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Figure 1

Measurement and Assessment

To test their materials, they employed an independent institution, Vivian Partnership Ltd.

This assessment included the collecting of people opinions (including communities,

customers, suppliers, employees and nongovernmental institutions) on CEMEX UKs

sustainable development practices and observing the outlooks of key stakeholders. Following

a quantitative online investigation of 500 representatives, which resulted in a 14% response

rate, was two qualitative workshops, one for employees and one for external stakeholders,

each of which was attended by around 20 volunteers from the sample.

Key Assessment findings

1. The Sustainable Development issue has received much attention, though its full scope

is not acceptable which primarily focuses on environmental matters.


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2. Understanding CEMEX UKS report was seen easy.

3. Readers used this report to get certain and time-oriented information, even though not

as a general outlook.

4. Regarding this fact that long-term goals have to be involved, there was an urge for

more local data.

5. There was a preference for more concise reporting system with better accessibility to

main data.

6. Major issues were reduction of pollution, carbon dioxide and climate change,

resources and energy saving and site restoration.

7. Regarding importance of health and safety and supply chain according to CEMEX,

external stakeholders put low priority on these topics.

Governance

CEMEX practiced highest measures of corporate governance. The UK higher management team

meets weekly and does daily decision making and adaptation with UK rules and regulations.

This team reports to the CEMEX Northern Europe President, Ignacio Madridejos, who is a

member of the Executive Committee led by CEMEXs Chairman and Chief Executive Officer,

Lorenzo Zambrano.

Ethical issues are seen as critical to companys success. Therefore, employees are required to act

in accordance with CEMEXs Code of Ethics which provides a key for behavior to deal with

conflict of interest, confidentiality, employee relations, the environment, external stakeholders,

legal and financial compliance, company property and workplace health & safety.

Stockholder s

The key point in this company is if stakeholders prosper, the company itself will flourish. This

perspective provides an advantage for company which makes it a choice for its stakeholders:

Companys People - CEMEX tends to be the employer of choice in its markets.


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Leading in sustainable construction

During 2010, CEMEX UK was one of the first companies which received certification of the

Building Research Establishment Framework Standard for the Responsible Sourcing of

Construction Products (BES 6001) for its products.

In 2010, it was opened a new rail route from Neath in South Wales to the CEMEX railhead at

Sturton, near Leeds in West Yorkshire to make all products available through rail or water

throughout the CEMEX network. This made an increase in rail freight for the year of 5%. In

addition, there are planned new rail roads such as from Neath to railheads at Washwood Heath

in Birmingham, and Bletchley near Milton Keynes.

In 2010, the Aggregates division surpassed the industrial water and waste standards set by the

Sustainable Concrete Forum via recycling facilities and waste reduction.

But the ready-mix division could not reach to its target which was generating 5.4 kilos of waste

per cubic meters of concrete produced. This division took a big step to fill the gap by stone

washing of lorry drums.

Contribution to infrastructure

In 2010, CEMEX started a new rapid-hardening, controlled set concrete operation called

Prompts. It provides contractors to strip formwork much earlier than they could use traditional

concrete.

The new concrete admixture system makes it possible to accelerate strength, consequently could

make faster the construction times. It would be a good approach for solutions like road and rail

renovation in which the using Prompts makes it possible speeded up ownership of the

construction site. It is also appropriate for recasting in which structures can be remolded and

stored just 12 hours after pouring.


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The table below shows the supporting data as reported to the EA and appeared in the Pollution

Inventory Record (PIR) on the Agencys website.

Table 1

Figure 3


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Excellence in environmental and Biodiversity management:

In 2010, there was no report for prosecutions because of pollution or planning violations.

Nonetheless, it was received 21 complaints about issues as dust, noise, odor and transport.

Comparing to 2009, we could see a 35% improvement.

Table 2

Environmental management: including strategy, target setting and execution which are pursued

and coordinated by the Sustainability Department, business leaders and operational staff. Doing

this, they could protect their operation legitimation, ensure legal compliance, and provide

training.

Carbon management and the administration of CEMEXs environmental management system:

which combine sustainability issues with local operations and business systems?

Because of their partnership with the RSPB and to fulfill their global commitment to recognize

with Birdlife International measurements of which the RSPB is the UK partner, the CEMEX UK

launched its biodiversity program in 2010. To do this, they are about to create and maintain

1,000 hectares of priority biodiversity habitats by 2020.

The company also planted 200 meters of new fencing area with 22,612 trees as part of screening

and restoration program.


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charity, schemes to improve land, air and water quality including Southam in Bloom, Moor

Green Lakes Grazing Project, Barrow Gurney footpath construction and Attenborough Nature

Reserve car park improvements, and educational programs with organizations such as Butterfly

Conservation, Groundworks and Roadpeace.

Employee relations

At the end of 2010, CEMEX UK decided to close or temporarily suspense the operations at 14

locations. These decisions were taken according to UK employment law assuring that they

respected the rights of all persons who were included in. CEMEX UK employee turnover rate

was 11%.

In 2010, company management staff tried increase employee diversity and the UK management

team was the responsible of diversity training to the end of that year. Then, about 20 nationalitieswere represented in workforce; 12% women and 88% men.

Under companys Equal Opportunities policy, CEMEX UK employees have the right to be

treated equally and with dignity and respect by their colleagues so that employment of disabled

persons are also acceptable completely with regard to this fact that capacity of the applicant is

concerned.

Whenever any employee becomes disabled, management team does anything to ensure that

person could continue his/her collaboration with the company. The company policy is to provide

the same training and opportunities to all staffs regardless of their physical conditions, ethnic

origin, gender and age.

The company assumes that well trained workforce is the key factor to reach success. For

example, during 2010, there was an 18 hours training program on average for each employee.

In addition, company continued its policy to develop skills using a variety of approaches

including on-the-job-training and on-line learning, including 82 sponsored further education

courses, 120 National Vocational Qualifications and 1,052 individual on-line learning

opportunities.

Also, there are some weekly newsletters to inform employees continuously about company

developments as well as quarterly magazines which are mailed to all employees and annual road

shows across the country hosted by the UK President. In 2010, the Communications department


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Key performance indicators

Besides, the detail of current performance and targets regarding to sustainability principles such

as Stakeholders and also those relating to climate change legislation, CEMEXs cement sector

plan with the environment agency and the government strategy for sustainable construction have

been considered that are reported in this website: http://www.cemex.co.uk/su/su_lp.asp

Part B

In this part, the main focus will be on the structure on human resources in different level of

organization. In this regard the role of Human resources practices (HR practices) is a vital roleBased on previous researchers by famous scholars many human resource behaviors are

originated from their intentions. Hence, some related frameworks will be discussed in following

that leads to propose new framework.

Although there are many relevant issues and concepts can affect different aspects of Sustainable

development, some of them are seemed more important. For example the role of employee in

organization is vital. Human resources abilities and skills in different level of organization are

vary, for example in R&D departments the main focus are on knowledge that in other sections

may be different, so any strategy should be defined based on relevant positions.

As Barney (1991) mentioned, human resources (intellectual capital) can be exploited as resource

for sustainable competitive advantage because it is rare and non-imitable. Thus, CEMEX should

try to retain their employees. In this regard, there are many different research that focus on

Turnover Intention such as ethical climate, Human Resources practices, organizational

Commitment, Organizational Citizenship Behavior, Leadership Style, and Job satisfaction than

will be discussed in the following.
http://www.cemex.co.uk/su/su_lp.asphttp://www.cemex.co.uk/su/su_lp.asp


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Figure 4

Schwepker (2001)

The conducted research by Schwepker (2001) showed that the ethical climate has potential

influence on job satisfaction, organizational commitment, and turnover intention. For this

purpose, he examined 33 American companies. (See figure4)

Shahzad HR practice and leadership (2010)

Furthermore, Shahzad et al. (2010) examined the relationships of Human resources practices and

leadership style with organizational commitment and organizational citizenship behavior in

educational industry. (See figure5)

Ethicalclimate

Job Satisfaction

OrganizationalCommitment

Turnover

Intention
http://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CFYQFjAB&url=http%3A%2F%2Fpk.linkedin.com%2Fpub%2Fkhurram-shahzad%2F9%2F0%2F9a9&ei=nnamT52AJ4jlrAfqoZ3SAQ&usg=AFQjCNHLHsT7SWb1EkQiUcK9DhuEVM_gsQhttp://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CFYQFjAB&url=http%3A%2F%2Fpk.linkedin.com%2Fpub%2Fkhurram-shahzad%2F9%2F0%2F9a9&ei=nnamT52AJ4jlrAfqoZ3SAQ&usg=AFQjCNHLHsT7SWb1EkQiUcK9DhuEVM_gsQ


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Figure 5

They found that the positive and significant relationship for each linkage of their framework.

Hence, it seems that this structure can improve organizational commitment and organizational

citizenship behavior in CEMEX as well. Undoubtedly, focus on these elements in some aspects

will contribute to sustainable development (SD) because it can improve the all dimensions

(Work, Responsibilities for short term and long term goals, responsibilities towards other

departments, Applying the suitable resources, People, and Outside influence) for sustainable

decision making. By using appropriate HR practices it will be facilitate although there are no

unique groups of practices for all organizations. (see Table1)Many famous scholars have defined different practices but some of them are more famous that

are shown in following table:


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Table 5

Researchers HR practices

Pfeffers (1998) 1. employment security

2. selective hiring of new personnel

3. self-managed teams and decentralization of decision

making as the basic principles of organizational design

4. comparatively high compensation contingent on

organizational performance

5. extensive training

6. reduced status distinctions and barriers, including

dress language, office arrangements, and wage

differences across levels

7. And extensive sharing of financial and performance

information throughout the organization

Teseema & Soeters (2006) 1. recruitment and selection practices

2. placement practices

3.

training practices4. compensation practices

5. employee performance evaluation practices

6. promotion practices

7. grievance procedure

8. Pension or social security

Huselid (1995) 1. personnel selection

2. performance appraisal

3. incentive compensation

4. job design

5. grievance procedures

6. information sharing

7. attitude assessment


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8. labor management participation

9. recruitment efforts

10. employee training

11. promotion criteria

Khurram Shahzad, Sajid Bashir,

and Muhammad I Ramay (2008)

1. compensation

2. promotion and performance evaluation

3. perceived employee

Huang (2000) 1. Staffing

2. Planning

3. Compensation

4. Training and development

5. Appraisal

Others 1. Safe, Healthy and Happy workplace

2. Open House Discussions And Feedback Mechanisms

3. Delight Employees With The Unexpected

4. Open Management

Most of practices emphasize on staffing, reward system, Training, and knowledge sharing, so

these four practice will be discussed in term of Work, Responsibilities for short term and long

term goals, responsibilities towards other departments, Applying the suitable resources, People,

and Outside influence) for sustainable decision making.

Staffing and choosing right persons for right positions is very important because it will increase

job satisfaction that will increase organizational commitment among employees (based on

figure1). On the other hand it is a tool for performance improvement that affects stakeholders

satisfaction.

Furthermore, reward and compensation systems can motivate employees to participate in better

understanding the goals of organization either long term or short term. As a matter of fact this

view is resulted from Fishbein (1967) framework.


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Combination, and Internalization. In each step the process of tacit to tacit or explicit (explicit to

tacit or explicit) is shown that this process causes creation of knowledge (See Figure7)

Figure 7

Without any doubt, knowledge creation has potential to increase innovation for internal andexternal environment that includes all factors in sustainable decision making.


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parts. For example CEMEX decides to train their some employees, so they have to consider their

target with respect to existed resources.

After implementing any strategies CEMEX should evaluate the performance, so some results

will be seen that contribute to better understanding of weakness and strength. It is clear that these

evaluations must be based on appropriate criteria.

After evaluating and analyzing, gaps and weakness will be identified. So, in next step taking

action towards improving the problems will cause new planning again. And this process will

continue to minimizing the gaps and problem and thereby making sustainability.

The problem which we have with new change process

The main problem can be in term of adopting employee and human resources with new planning

(maybe new technology). For example John Brier et al. (2010) assert that one of the main problems is socio-technical system.

Also environmental change is another problem may affect change process. For example some

plans are based on current conditions, but during implementation, the environment is changing.

What have we learnt?

In summary, followed above discussion it can be concluded sustainable development is

dependent to Environmental Scanning, Resources (budget, people, infrastructure, and

technology), planning, governance, Monitoring Results and reporting (evaluation, performance

measurement, and research), internal relationship (employees and stockholders), and external

relationships (customers or other people in outside of organizations)


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Atkinson G. Measuring sustainable development macroeconomics and the environment.Cheltenham, UK: Edward Elgar; 1997.

Bakovich, O., 2005. Un nuevo sector de la economa para atender el nuevo paradigmenergtico , presentation made at Jornadas de Biocombustibles conference, Secretara deEnerga, July 9.

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Darolt, M.R., 2001. As dimenses da Sustentabilidade: Um Estudo da Agricultura Orgnica naRegio Metropolitana de Curitiba, Paran, Thesis on environment and sustainable development,Universidade Federal do Paran and Universit Paris VII.

Dimitrijevic B, Munitlak Ivanovic O. Ekonomika evropskih integracija. Sremska Kamenica:Fakultet za usluzni biznis; 2008.

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European Environment Agency. Environmental signals, Report; 2000.

Falco, L., 2004. Proyecto de Ley con Media Sancin del Senado sobre BiocombustiblesRenovables de Origen Agropecuario, Buenos Aires, presented to the Argentine Congresson December 1.

Golusin M. Environmental management. Novi Sad, S erbia: Faculty of entrepreneurialmanagement; 2006.


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Golusin M, Munitlak Ivanovic O. Definition, characteristics and state of indicators ofsustainable development in countries of Southeastern Europe. Agriculture Ecosystems andEnvironment 2009;130(1 2):67 74.

Instituto de Ingeniera Rural, INTA (IIR-INTA), 2005. Los biocombustibles en la Argentina.Goldemberg, J., Johansson, T.B., Reddy, A.K.N., and Williams, R.H., 1987. Energy for aSustainable World, Wiley Eastern, New Delhi.

Instituto Argentino de Energa (Argentine Institute of Energy) (IAE General Mosconi ), 2005. Situacin energtica Argentina.

Milenovic B. Ekoloska ekonomija, teorija i primena. Serbia: Fakultet zastite na radu,Univerzitet u Nisu; 2000.

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http://www.cemex.co.uk/su/su_lp.asp
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sustainability in cemex (uk)assignment,cemex suatainability

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