Environment management practices in Indian logistics industries - 2

Studies to know the impact of integrating environment management practices and corporate knowledge sharing for better industrial performance.

In both the domains study as well as practice, integrating environmental management principles and supply chain information sharing to improve the performance of logistics businesses has become critical.

Environmental audits, total quality management, pollution prevention plans, employee environmental training, total cost accounting, life-cycle analysis, hiring a designated environmental manager, R&D, environmental standards for suppliers, and employee incentive programs for environmental suggestions are examples of management practices.

Many expert's have shared there views on this:

Peter A Stanwick & Sarah D Stanwick 1998 described the relationship between an organization's corporate social performance on three variables: its size, its financial success, and its environmental performance. His study's finding suggest that a corporation's corporate social performance is influenced by the size of the firm, its level of profitability, and the amount of pollution emissions emitted by the firm, which demonstrates how pollution or a lack of proper environmental practices hurts firms economically.

Robert D. Klassen and Curtis P. Mc Laughlin 1996 states in one of their journal ‘The Impact of Environmental Management on Firm Performance’ that the environmental management plays a vital role in the financial performance.

Many practitioners believe that the greater production costs of environmental management programs affect profitability, while others claim that profits have increased. They established a theoretical model in their research that ties good environmental management to better future financial performance as evaluated by stock market.

Financial event methodology and archival data of environmental and financial performance are used to test the linkage to firm performance. Environmental performance awards showed considerable positive returns, while environmental catastrophes showed significant negative returns.

Vachon and Klassen 2008 created a survey of North American manufacturers, and examined the impact of environmental collaborative activities on manufacturing performance.

Environmental collaboration, according to the study, was defined as focusing on inter-organizational interactions between supply chain members, including aspects like joint environmental goal setting, shared environmental planning, and working together to reduce pollution or other environmental impacts. The benefits of collaborative green practices with suppliers were determined to be the most extensive.

Collaboration with customers, on the other hand, produced mixed results. Overall, data showed that upstream practices were linked to process-based performance, whereas downstream collaboration was linked to product-based performance.

Shrivastava and Hart (1995) pointed out that to deal with environmental issues, environmental management could provide an overall system perspective. Every organizational activity, from raw material inputs to the manufacturing process, packaging, and waste disposal, is linked to environmental concerns. As a result, environmental management practices are a collection of organizational activities that aim to reduce resource consumption and improve waste disposal. Environmental management practices include technological options, product design, manufacturing, and waste management.

Supply chain integration, according to Mentzer (2000), is the collaboration within node enterprises and among enterprises in the course of supply chain management, including node enterprise behavior integration, entire network process integration, information integration, risk and interest sharing, collaboration, and relationship integration.

From the standpoint of strategic objectives and process integration, Swink et al. (2007) split supply chain integration into strategic integration, product/process development integration, customer integration, and supplier integration.

Supply chain knowledge sharing was characterized by Argote et al. (2000) as social contact between two organisations, which included inter-organizational exchange of staff knowledge, experience, and skills.

Environmental management methods, such as internal environmental management, eco-design, recycling investment, and so on, were found to have a favorable impact on technological innovation by Lee et al. (2014).

There are many more researchers who have proved environment management practices are very crucial part for the sustainable growth of organization.

In the next part we will read why environment management practices are even more important in Indian logistics industries.

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