SME’s and Environmental performance- a framework for

green business strategies

GuruDas Nulkar
(SCMHRD, Pune)

This research provides a framework for SMEs to go beyond obvious and

implement sustainable policies towards the environment.
Industry and Environment

 Over time and period we have all observed the serious effect of industries on the
environment. We experienced series of natural calamities, deaths from causes like melting
ice points, snowstorms are on a rise. These effects give rise to several questions whose
answers are not quite easy to comprehend.
 The response of industry towards management developed in two eras. The first era is a
reactionary approach and is known as the “resistant adaptation” while the norm of this
era is summed up in one word “Compliance”.
 The sustainability initiative provokes the industries to look beyond the obvious and
redesign their products and strategies towards the environment.
 Companies like Godrej, Tata group, Cummins, Wal-Mart etc have proactive sustainability
measures due to their resources but SMEs neither have resources nor cash for setting up
such measures within their operations.
SMEs and Environment

 Firms size determines the firm’s green strategy policy- environmental actions undertaken
is inversely proportional to the company.
 SME follow business instincts to reduce use of resources and waste. Researchers suggest
the cumulative contribution to pollution and environmental concerns by SMEs is almost
equal if not more.
 The potential contribution of SMEs to cleaner environment is not realized yet.
 With lack of enforcement mechanism local bodies may be missing out much of impacts on
environment by SMEs.
 Competitive advantages of Green Strategies
Emerging market
Opportunities

Early Mover
Advantage in
Green Strategies Markets

Managing Cost and

risks

Environmental
Stewardship
 Green Strategies
New
Environmental Industry Environmental Community
risks Changes technology Awareness

Customers Stakeholders

Ethical
The motives
environment

Environmental
Awareness
Green
Regulation
Strategies
 Green Strategic Management for SMEs
Mission and Goals

External Analysis Situation Analysis Internal Analysis

Strategic Choices
Lower Environmental
Eco-
Strategic Cost cost
Efficiency
Formulation leadership

Beyond
Differen
Implementation compliance Eco-Branding
-tiation
leadership

Evaluation and
Control Product or
Organisational
services
processes
 CASE STUDY

InColt
InColt is a Sydney based Medium Enterprise which deals in Information Communication
Technology. It experienced a great expansion between 2009 and 2011. Terry Green, the
MD of the company confesses that this expansion is a result of their effective ER initiatives.
Some of the environmental initiatives are as follows:

• Company building is movement detected.

(Lights turn off if no motion is detected)

• ACs are switched off during non business hours.

• Location of the office is a pleasant place with lots of

trees and greenery around the building

• Supports local business by trying and buying local services.

 CASE STUDY

OzLatte
OzLatte is a dairy company in Sydney which boosted its local sales upto 40% and bagged a
number of awards by following an effective ER policy. Following are some of the measures
that this small enterprise has taken :

• Replacing conventional energy sources with a solar

energy system.

• Maintaining an organic vegetable garden and other low

carbon farming techniques

• Localising the processing plants and the dairy within a certain boundary.

• Keeping the local community engaged into business activities.

Concluding remarks:

Both the employers believe that personal values and beliefs are the backbone
to their commitment towards ESR.
Both the studys reveal a range of relationships between stakeholders,
employees, suppliers,customers, retailers, government, industry associations
and community members.

Results:

• Positive financial output.(40% growth in local sales in case of

OzLatte)

• Increased loyalty of employees.

• Lower energy consumption. (28% less power consumed by InColt)

• A step towards a greener future.

THANK YOU
BY
- SUBHOMOY DAS
- AYAN CHATTERJEE
- PROMITA MONDAL
- SAURAV SIMLAI