Many end-user companies are evaluating their supply chain to see if their manufacturers are sustainable. There is a large increase in consumers wanting more sustainable products. According to IMD, “62% of executives consider a sustainability strategy necessary to be competitive today, and another 22% think it will be in the future.”
3 Reasons Why Sustainability is Important in Manufacturing
1. Not being sustainable can lead to huge fines and jail time
Manufacturers have many jobs that they need to be compliant with, especially with consideration to government regulations. When a manufacturer is not sustainably responsible, they become exposed to many potential legal issues.
Government environmental regulation can include tasks such as monitoring and not exceeding levels of pollution. Consequences of exceeding environmental pollution limits could include jail time and fines for those proved responsible, and typically those at the management level. There are even many cases brought to attention from class-action lawsuits.
2. Gain Business
Consumers are starting to demand companies that are more sustainable. Oftentimes the end-consumer doesn’t know all of the manufacturing that goes on before the product gets to stores. End-user companies are starting to hear the consumer’s worries and are analyzing manufacturers who are more environmentally and ethically responsible. Using sustainability to your own advantage can be a win-win in the manufacturing world.
There are many certifications that a manufacturer can obtain to gain international business. The European Union sets best practices and standards for environmentally responsible compliance.
It is also important for manufacturers to comply with RoHS. If you are unfamiliar with the acronym RoHS, it stands for the Restriction of Hazardous Substances. Originating in the European Union nearly 20 years ago, the compliance restricts the use of hazardous materials that could be used in the manufacturing of electronics. Many businesses in the European Union will only deal with manufacturers who are RoHS compliant.
Another compliance that is needed within the European Union is the Conflict-Free Sourcing Initiative (CFSI). Working under CSFI, manufacturers must work with certain raw minerals that are secure under proper human rights.
BTI also complies with another EU regulation with the acronym REACH, which stands for Registration, Evaluation, Authorization, and Restriction of Chemicals. When working under the REACH compliance, all businesses must work to environmentally and ethically source substances and chemicals used in their products.
3. Can lower production costs
One new initiative that BTI is implementing is to go paperless. Since most of our staff already use technology, we are working on a way to reduce our use of simple things. Traditionally the quotes that go through the different stages of products can be printed out multiple times to stay updated.
Quotes could be multiple pages long. The amount of paper that got used on a day to day basis used to be very high. Our database management system allows paper items, such as quotes, to be tracked throughout every stage of production. Now that all our quotes can be stored securely online, there is no longer a need for them to be printed out. This can save us many reams of paper a week.
BTI also replaced most of the incandescent light bulbs with more energy-efficient fluorescent lights. By switching out our light bulbs we have greatly reduced the amount of energy used for lighting.
Being sustainable also opens doors for more grants. As a manufacturer, there needs to be more than one thing that separates you from your competitors. Being sustainable is one major reason why a specific manufacturing company could be chosen for a grant from the government.
What Else Should Manufacturers Focus on?
According to the it is important for manufacturers to understand their role within the community. They suggest focusing on three-dimensional aspects, Economy, Society, and the Environment.
It is easy for businesses to focus on an economic standpoint. Most businesses are operating to try to make a profit. Extra money can go into innovating their company by adding infrastructure. By innovating practices they could create more jobs to help stimulate the economy as a whole.
Many businesses also understand their impact on society, as well. Manufacturers, for the most part, will try to keep personnel and product safety at the top of their list to focus on. But it is also common for businesses to be only operating for a profit, and management might not care what their impact is on society. It is very common for developing countries to have businesses, especially manufacturing, with poor working conditions and a loss of respect for human rights.
While there are also many benefits for businesses that focus on environmental impacts, many companies do not have their environmental impact as a focus. Chances are, if a business is both economically and socially responsible then they also know the importance of their environmental impact. But once again, when businesses are only in it for the money, the chances are low that they care about their impact on the environment. Creating a mix of all three of the dimensions can help a company to get more business, higher quality workers, and they may even qualify for more grant money to sustain their business.
BTI Corporate Social Responsibility
The core values at BTI play a big role in our facility. We are curious and passionate about what goes on in the community. BTI also believes in being honest and ethically accountable. Most importantly, our staff is united within our local area.
Community Involvement runs through the heart of Butler Technologies Inc. There are many employees that run on boards of local organizations. BTI staff members can be found involved with organizations like Butler County Chamber of Commerce and Butler County Young Professionals. Some of our staff members are even involved with volunteering at the Butler County Community College.
We also believe that putting our time into our community creates better morale throughout the team. Other community members can recognize what we do to help the local area. By helping in the community, we create a positive brand image. When community members are looking to get hired in manufacturing, they could be more inclined to want to work at BTI because they know that we give back to the community.
Don’t Overlook Environmental Impacts- It’s Gonna Cost You
Please don’t be that business.
If you’ve read this far then I bet you already have an understanding of how your business environment should be working. If your not a green company, then start implementing the small things. Switching out lightbulbs, and going paperless is going to save you money. Being compliant with environmental regulations is going to gain new business, and assist in maintaining older relationships too. Be socially and economically responsible too, it will help the community realize that your company is great to work for. Also, give back to your community. It helps keep your business at the top of the local’s mind that could lead to referrals for your business. Take the initiative to become ethically, socially, and environmentally responsible as a person and a business.
Meet the Author
Ashley Foster is a graduate of Slippery Rock University, where she earned her Bachelor’s degree in Business Administration, majored in Business Management and minored in Marketing. While Ashley was studying at SRU she found a passion for marketing. Although she is busy working, she spends her free time traveling and hiking with friends. She is also a volunteer for the American Marketing Association, Pittsburgh Chapter, and an active alumni member of FCCLA.
