IE-33 - YMCA University of Science & Technology, Faridabad
IE-33 - YMCA University of Science & Technology, Faridabad
IE-33 - YMCA University of Science & Technology, Faridabad
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4.5.2 Government’s Initiative<br />
Proceedings <strong>of</strong> the National Conference on<br />
Trends and Advances in Mechanical Engineering,<br />
<strong>YMCA</strong> <strong>University</strong> <strong>of</strong> <strong>Science</strong> & <strong>Technology</strong>, <strong>Faridabad</strong>, Haryana, Oct 19-20, 2012<br />
The government should ignite, encourage and promote the green activities carried out by the manufacturing<br />
supply chain.Zhu et al. (2005) mentioned that China has encouraged (pressured) GSCM practice adoption to help<br />
spur economic development. One can find literatures which also claim government regulation as the major driver<br />
<strong>of</strong> environment/green efforts <strong>of</strong> manufacturing companies (Green et al., 1996; Handfield et al., 1997; Walton et<br />
al., 1998; Eagan and Kaiser, 2002; Scupola, 2003; Lin, 2007; and Peng and Lin, 2008).The government<br />
manufacturing companies should become role models to others. They should come out with transparent<br />
legislation for environmental responsibility. Environmental regulations such as EuP (Eco-Design <strong>of</strong> Energy-<br />
Using Products), REACH (Registration, Evaluation, and Authorization <strong>of</strong> Chemicals), ELV (End <strong>of</strong> life Vehicle<br />
Directive), WEEE (Waste from Electrical and Electronic Equipment) and RoHS (Restrictions on Hazardous<br />
Substances) <strong>of</strong> the European Union are putting pressure on the companies for adopting green practices. One can<br />
find similar types <strong>of</strong> laws in other countries like China, Taiwan, Korea, Japan and the US. Such laws compel the<br />
manufacturing companies to closely look into the production processes and supplier selections. Within a few<br />
years, products will be sold in most parts <strong>of</strong> world under such legislation. The government should apply pressure<br />
so as to compel the companies to become green without any compromise.<br />
4.5.3 External Pressures for Adopting GSCM<br />
GSCM may be considered complimentary management practices relate to the institutional pressures that<br />
encourage their adoption. Institutional pressures persuade organizations to undertake similar strategic actions<br />
(H<strong>of</strong>fman, 1997; Scott, 2001) to increase their external legitimization (DiMaggio and Powell, 1983; H<strong>of</strong>fman<br />
and Ventresca, 2002). Regulatory pressures are <strong>of</strong>ten associated with an organization’s decisions to adopt GSCM<br />
practices (Birett, 1998). These pressures arise from threats <strong>of</strong> non compliance penalties and fines (Davidson and<br />
Worrell, 2001) and requirements to publicly disclose information about toxic chemical releases(Konar and<br />
Cohen, 1997).For instance, regulatory changes in automotive paints have pressed car manufacturers to require<br />
their suppliers to reduce their use <strong>of</strong> regulated chemicals in the production process(Geffen and<br />
Rothenberg,2000). In addition to regulatory pressures, Market Pressures may influence an organization’s<br />
decision to adopt on GSCM practices (Rao, 2002; Gupta and Piero, 2003). Over the last ten years, market actors<br />
have been placing greater pressures on organizations to consider their impacts on the natural environment<br />
(H<strong>of</strong>fman, 2000). Overall, 15 percent <strong>of</strong> US consumers routinely pay more for green products, and another 15<br />
percent seek green products if they do not cost more (Ginsberg and Bloom, 2004). While these findings suggest<br />
that markets are creating opportunities for environmental friendly organizations, the majority <strong>of</strong> consumers still<br />
are not influenced by a company’s proactive environment practices. However, these same customers may be<br />
persuaded to change their purchasing decisions if a company violates environmental laws or emits high levels <strong>of</strong><br />
toxins (Prakash, 2000). As a consequence, EMS and GSCM adoption may provide a vehicle for organizations to<br />
‘signal’ to market participants that their environmental strategies adhere to or exceed generally accepted<br />
environmental standards. Doing so may lead to greater acceptance <strong>of</strong> the organization’s strategic approach<br />
(DiMaggio and Powell, 1983) and insulate organizations from competitor’s criticisms (King and Lenox, 2001).<br />
EMS and GSCM adoption also may help organizations develop an environmentally conscious reputation. Such a<br />
re-reputation may invite patronage from consumers and generate opportunities for business with other<br />
organizations that value these principles (Darnall and Carmin, 2005). Finally, organizations are subjected to<br />
Pressures from the community that includes environmental groups, community groups, media, labor unions<br />
and industry associations (H<strong>of</strong>fman, 2000). Each <strong>of</strong> these groups can marshal public support for or against an<br />
organization’s environmental performance (Clair, Milliman and Mitr<strong>of</strong>f, 1995; Turcotte, 1995).<br />
4.5.4 Green Procurement<br />
Green procurement is defined as an environmental purchasing consisting <strong>of</strong> involvement in activities that include<br />
the reduction, reuse and recycling <strong>of</strong> materials in the process <strong>of</strong> purchasing. Besides green procurement is a<br />
solution for environmentally concerned and economically conservative business, and a concept <strong>of</strong> acquiring a<br />
selection <strong>of</strong> products and services that minimizes environmental impact Supplier selection: (1) purchase<br />
materials or parts only from “Green Partners” who satisfy green partner environment quality standards and pass<br />
an audit process in following regulations for the environment-related substances (2) consider suppliers who<br />
acquire ISO 14000, OHSAS18000 and/ or RoHS directives(3) select suppliers who control hazardous substances<br />
in company’s standard lists and obtain green certificate achievements EPP is the act <strong>of</strong> purchasing products or<br />
services that have a less adverse effect on human health and the environment.<br />
4.5.5 Green Manufacturing<br />
Green manufacturing is defined as production processes which use inputs with relatively low environmental<br />
impacts, which are highly efficient, and which generate little or no waste or pollution. Green manufacturing can<br />
lead to lower raw material costs, production efficiency gains, reduced environmental and occupational safety<br />
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