39
ambitions), organize (get engagement and participation), survey and research
( identify key environmental and social impacts and opportunities and decide what
the business wants to be and where it would like to go) and fi nally goal setting
(select an area/s where the efforts will be directed, determine goals and make an
action plan).
2.1.1 Policy Setting
To consider LCM among the key success factors through all levels of any organization, it needs to be a part of the organization’s policy. Therefore, it should possess
the basic characteristics of an organization’s policies. These are, for example: the
policy has to be well known and also well understood by all stakeholders that are
directly or indirectly affected from its implementation, it should be stable and not
subjected to change frequently, it should be consistent with the company’s organizational structure at all levels, it has to be formulated within the context of company’s objectives, and more importantly, it has to be goal-based and visionary with a
long-range focus, while also being realistic and concrete, grounded by its ambition
level. Setting goals according to the levels of ambition ensures conformity between
policy and actions. There are different levels of sustainability ambitions, just to cite
a few (Table 4.2 ):
• Internal readiness and commitment to continuous sustainability improvements.
This level signifi es awareness that environmental and social improvements can
be made using management frameworks such as ISO 9001 ((ISO 2008 ), ISO
14001(ISO 2004 ) and/or corporate social responsibility (CSR) (McWilliams and
Siegel 2001 ), and that a commitment to improvements of product performance is
the fi rst step towards LCM.
• Life cycle sustainability performance improvement of products. This includes a
safe and resource effi cient process, product or system that provide better service
to customers while reducing environmental and social impacts. This can be
addressed through broadening companies’ system boundaries beyond their manufacturing level, by including the full supply chain from raw materials selection
and acquisition, use of product, distribution and end-of-life – based on a screening of the product’s performance.
• Reduce climate change impact and be energy effi cient by using low-carbon and
renewable energy sources.
• Maximize the social benefi ts by engaging a wide range of stakeholders and also
respect the rights of the social community whom the company works with.
• Create competitive advantages and maximize economic benefi ts from promoting
products with better environmental and social profi le.
Establishing such ambition levels can help an organization to understand where
to begin the sustainability initiative. Depending on its past sustainability practices
and current challenges, an organization can begin with a certain level of ambitions
and goes to relatively high level once it acquires knowledge and familiarity on how
to make its plan into action successfully.
4 How to Implement Life Cycle Management in Business?
ambitions), organize (get engagement and participation), survey and research
( identify key environmental and social impacts and opportunities and decide what
the business wants to be and where it would like to go) and fi nally goal setting
(select an area/s where the efforts will be directed, determine goals and make an
action plan).
2.1.1 Policy Setting
To consider LCM among the key success factors through all levels of any organization, it needs to be a part of the organization’s policy. Therefore, it should possess
the basic characteristics of an organization’s policies. These are, for example: the
policy has to be well known and also well understood by all stakeholders that are
directly or indirectly affected from its implementation, it should be stable and not
subjected to change frequently, it should be consistent with the company’s organizational structure at all levels, it has to be formulated within the context of company’s objectives, and more importantly, it has to be goal-based and visionary with a
long-range focus, while also being realistic and concrete, grounded by its ambition
level. Setting goals according to the levels of ambition ensures conformity between
policy and actions. There are different levels of sustainability ambitions, just to cite
a few (Table 4.2 ):
• Internal readiness and commitment to continuous sustainability improvements.
This level signifi es awareness that environmental and social improvements can
be made using management frameworks such as ISO 9001 ((ISO 2008 ), ISO
14001(ISO 2004 ) and/or corporate social responsibility (CSR) (McWilliams and
Siegel 2001 ), and that a commitment to improvements of product performance is
the fi rst step towards LCM.
• Life cycle sustainability performance improvement of products. This includes a
safe and resource effi cient process, product or system that provide better service
to customers while reducing environmental and social impacts. This can be
addressed through broadening companies’ system boundaries beyond their manufacturing level, by including the full supply chain from raw materials selection
and acquisition, use of product, distribution and end-of-life – based on a screening of the product’s performance.
• Reduce climate change impact and be energy effi cient by using low-carbon and
renewable energy sources.
• Maximize the social benefi ts by engaging a wide range of stakeholders and also
respect the rights of the social community whom the company works with.
• Create competitive advantages and maximize economic benefi ts from promoting
products with better environmental and social profi le.
Establishing such ambition levels can help an organization to understand where
to begin the sustainability initiative. Depending on its past sustainability practices
and current challenges, an organization can begin with a certain level of ambitions
and goes to relatively high level once it acquires knowledge and familiarity on how
to make its plan into action successfully.
4 How to Implement Life Cycle Management in Business?