Baines, Tim; B own, S e e; Benede ini, O nella; Ball, Pe e
A icle
Examining g een p oduc ion and i s ole wi hin he
compe i i e s a egy o manu ac u e s
Jou nal o Indus ial Enginee ing and Managemen (JIEM)
P o ided in Coope a ion wi h:
The School o Indus ial, Ae ospace and Audio isual Enginee ing o Te assa (ESEIAAT), Uni e si a
Poli ècnica de Ca alunya (UPC)
Sugges ed Ci a ion: Baines, Tim; B own, S e e; Benede ini, O nella; Ball, Pe e (2012) : Examining
g een p oduc ion and i s ole wi hin he compe i i e s a egy o manu ac u e s, Jou nal o Indus ial
Enginee ing and Managemen (JIEM), ISSN 2013-0953, OmniaScience, Ba celona, Vol. 5, Iss. 1, pp.
53-87,
h ps://doi.o g/10.3926/jiem.405
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Examining g een p oduc ion and i s ole wi hin he
compe i i e s a egy o manu ac u e s
Tim Baines1, S e e B own2, O nella Benede ini3, Pe e Ball4
1As on Business School, 2Uni e si y o Exe e Business School, 3Ins i u e o Manu ac u ing, Uni e si y o
Camb idge, 4C an ield Uni e si y (UNITED KINGDOM)
.baines@as on.ac.uk; s e e.b own@exe e .ac.uk; ob25[email p o ec ed]; p.d.ball@c an ield.ac.uk
Recei ed Sep embe 2011
Accep ed Ma ch 2012
Abs ac :
Pu pose:
This pape e iews cu en li e a u e and con ibu es a se o indings
ha cap u e he cu en s a e-o - he-a o he opic o g een p oduc ion.
Design/me hodology/app oach:
A li e a u e e iew o cap u e, classi y and
summa ize he main body o knowledge on g een p oduc ion and, ansla e his
in o a o m ha is eadily accessible o esea che s and p ac i ione s in he mo e
mains eam ope a ions managemen communi y.
Findings:
The exis ing knowledge base is somewha agmen ed. This is a
ela i ely unexplo ed opic wi hin mains eam ope a ions managemen esea ch
and one which could p o ide ich oppo uni ies o u he explo a ion.
O iginali y/ alue:
This pape se s ou o e iew cu en li e a u e, om a mo e
con en ional p oduc ion ope a ions pe spec i e, and con ibu es a se o indings
ha cap u e he cu en s a e-o - he-a o his opic.
Keywo ds:
g een, p oduc ion, ope a ions, compe i i e s a egy
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1 In oduc ion
The e m “g een” is now widely used, al hough i s o igins lie mo e in he popula
p ess han he scien i ic communi y. Inc easingly, he e m is used in e changeably
on he mo e es ablished “sus ainabili y” concep , and so his means aking a holis ic
iew o en i onmen al, social and economic impac (Dobe s & Wol , 2000;
Kleindo e , Singhal, & an Wassenho e, 2005; Rahimi a d & Clegg, 2007; Saha &
Da n on, 2005; Selige , Kim, Ke nbaum & Ze l, 2008). Elking on (1997, p. 22)
p esen s he challenge o achie e sus ainabili y as “an unp eceden ed sou ce o
comme cial oppo uni y o compe i i e companies, h ough echnological
inno a ion and imp o ed eco-e iciency”.
The unde pinning assump ion is ha inancial success can be made consis en wi h
an e hical, en i onmen and socie y compliance (Dobe s & Wol , 2000; Mohan y &
Deshmukh, 1998; S ead & S ead, 2000). Acco dingly, g een manu ac u e s a e
hose ha make a commi men o a wide and long- e m assessmen o he impac
o hei ac i i ies and, he eby, o in luence issues such as people’s quali y o li e
and well-being, p o ec ion and secu i y, economic g ow h, social and economic
jus ice (Ha , 1995; Saha & Da n on, 2005). As p esen ed la e , we see g een
p oduc ion is now commonly seen as “ he applica ion o en i onmen ally and
socially sensi i e p ac ices o educe he nega i e impac o manu ac u ing ac i i ies
while, a he same ime, ha monising he pu sui o economic bene i s”.
G een p oduc ion is apidly g owing in impo ance (B and , 2007; Co be &
Klassen, 2006; Dills & S one, 2007; S ead & S ead, 2000). As popula ions g ow,
and eme ging economies expand, he plane ’s ecosys ems and esou ces a e
expe iencing emendous challenges (de Bu gos & Cespedes, 2001; Es y & Wins on,
2009; Ha , 1995; Indus y Today, 2010; Kleindo e e al., 2005; Mohan y &
Deshmukh, 1998). P oduc ion sys ems, ha supply he g owing demand o goods,
a e linked o ad e se en i onmen impac s (F osch & Gallopoulos, 1989). Fo
example, as coun ies such as China enjoy he bene i s o li es yles close o hose o
he wes e n socie ies, he impac o human ac i i ies is es ima ed o ise en- old by
2050 (Lisney, Riley & Banks, 2003).
U gen measu es a e needed o be aken o achie e a pi o al change in he way
socie y in gene al, and indus y in pa icula , manages na u al esou ces (B and ,
2007; Lee, 2008; Lisney e al., 2003). As a consequence, many go e nmen s ha e
o mally emb aced en i onmen al policies and egula ions, and he ee ma ke is
placing a clea p emium on hose companies who a e able o o e g een c eden ials
(B and , 2007; Miles & Co in, 2000; Saha & Da n on, 2005; Sa kis & Co dei o,
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2001; Yang, Lin, Chan & Sheu, 2010). Fo “p oduc ion” based companies, such
g een c eden ials can be achie ed in a numbe o ways including he ma e ials used
wi hin p oduc s, how p oduc s a e p oduced, and he ease o dealing wi h a p oduc
a he end o i s li e.
Recen yea s ha e seen a apid expansion in bo h he in e es and body o
li e a u e on g een p oduc ion. In 2001, Dangayach and Deshmukh (2001)
ecognised he ela i ely in an ile na u e o en i onmen al ma e s in he
mains eam manu ac u ing and ope a ions s a egy esea ch and a gued o mo e
s udies in his a ea. Ye in Oc obe 2007, Rahimi a d and Clegg (2007), in hei
edi o ial o he special issue on sus ainable design and manu ac u e o he
In e na ional Jou nal o P oduc ion Resea ch, concluded ha he e is an u gen and
impe a i e need o u he esea ch in e e y phase o a p oduc ’s li e-cycle. The e
is li le o indica e ha he challenges pa icula o p oduc ion ope a ions a e any
excep ion. This si ua ion is succinc ly cap u ed by Kleindo e e al. (2005) when
hey a gue ha we mus enla ge ou pe spec i e in ope a ions managemen o
include “ he plane ” because companies will be expec ed o do so.
The mo e mains eam ope a ions managemen communi y s ill lacks, howe e , a
cohesi e unde s anding o g een p oduc ion. While hose wi hin he sus ainabili y
communi y may be ully con e san wi h he in e p e a ions, ideas, and me hods
associa ed wi h G een, his is no necessa ily he case wi h hose p ac i ione s and
esea che s om mo e mains eam p oduc ion ope a ions managemen . This
he e o e is he mo i a ion behind ou esea ch. This pape se s ou o e iew
cu en li e a u e, om a mo e con en ional p oduc ion ope a ions pe spec i e, and
con ibu es a se o indings ha cap u e he cu en s a e-o - he-a o his opic.
In pa icula , i examines he e olu ion o g een e minology, ca ego ises g een
p oduc ion ypes, and he ole ha g een p oduc ion can ake in he compe i i e
s a egy o a manu ac u e . This pape is s uc u ed o i s p esen he li e a u e
e iew me hodology ha has been used, along wi h he esea ch ques ions ha
ha e ini ially been used o guide he iden i ica ion and analysis o a icles. The
indings om his e iew a e hen p esen ed, discussed and conclusions d awn.
2 Resea ch p og amme
2.1 Aim, scope and guiding esea ch ques ions
The gene al aim o his pape is o cap u e, classi y and summa ize he main body
o li e a u e on g een p oduc ion and, ansla e his in o a o m ha is eadily
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accessible o esea che s and p ac i ione s in he mo e mains eam ope a ions
managemen communi y.
Se ing he scope o his s udy has i sel been challenging. As men ioned ea lie ,
he e m “g een” is cu en ly in ogue wi h he popula media, and ye ends o lack
a igo ous scien i ic basis. Many a icles a e gi en a “g een-wash” o inc ease hei
appeal. To deal wi h his issue, his e iew has ocused on hose publica ions ha
a emp o make a subs an i e con ibu ion o he ield; in pa icula , hose ha
submi o p o ide g een de ini ions, concep s, cases and challenges. Simila ly, a
de ini ion o p oduc ion has also been necessa y o scope his li e a u e e iew,
which we ha e gene ally e e ed o as a con e sion p ocess dealing wi h physical
ma e ials and disc e e componen s. This pape deals exclusi ely wi h
manu ac u ing, and ou side ou scope ha e been pape s ha deal wi h ag icul u e,
cons uc ion, pe ochemical, and mining. Also, we ha e ocused a he le el o he
business, a he han na ional o in e na ional policy, and so a icles dealing wi h
such opics as clima e change, go e nmen policy, enewable ene gies, eco-ci ies,
and li e-cycle analysis ha e been excluded in ou pape unless hey a e di ec ly
ele an o his e iew.
To guide he li e a u e e iew p ocess i has been necessa y o ansla e he aim
in o a se ies o esea ch ques ions. He e, i is impo an o emphasise ha hese
ques ions ha e been gene a ed by he esea ch eam o ini ially seed he li e a u e
e iew p ocess and elici ele an knowledge (see Baines, Ligh oo , Williams &
G eenough, 2006; Benede ini, Baines, Ligh oo & G eenough, 2009 o a u he
illus a ion o his p ocess). These ques ions we e used o gene ally guide he
iden i ica ion and sc eening o he li e a u e, and consis ed o :
 Wha is he meaning o “g een” p oduc ion, and how does i ela e o he
o he associa ed e minology?
 How does g een p oduc ion di e om con en ional ways o doing business,
and wha a e he consequences?
 Whe e a e he leading examples o g een p oduc ion p ac ice?
 Wha a e he mo i es and hu dles o adop ing g een p oduc ion, and whe e
a e he challenges o add ess in he u u e o i s de elopmen ?
 How does g een p oduc ion ela e o compe i i e s a egy, and wha oles
may be aken?

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2.2 Planning and execu ion o he e iew
E en using he scoping p ocess summa ies abo e, he e is an eno mous olume o
publica ions and publica ion sou ces pe aining o add ess g een issues. This e iew
has, he e o e, cen e ed on he Business Sou ce Comple e Da abase, which o e s
access o he mos ele an schola ly, go e nmen , and gene al in e es
publica ions. I co e s a wide ange o sou ces including he Jou nal o Cleane
P oduc ion, Long Range Planning, Business S a egy and he En i onmen , he
Jou nal o En i onmen al Managemen , Ecological Economics, G eene Managemen
In e na ional, and he ecen ly es ablished In e na ional Jou nal o Sus ainable
Enginee ing. In addi ion, his da abase co e s a leading collec ion o business
publica ions, including hose om he Ha a d Business Re iew, he In e na ional
Jou nal o P oduc ion Economics, he In e na ional Jou nal o Ope a ions and
P oduc ion Managemen , and he In e na ional Jou nal o P oduc ion Resea ch.
A ange o keywo ds we e ini ially iden i ied om he esea ch ques ions, hese
included “g een”, “sus ainable”, “en i onmen al” o “en i onmen ally-” “clean” o
“cleane ”, “ecological” o “eco-e icien ”. The wo d “p oduc ion” was combined as an
addi ional keywo d in o de o ensu e some di ec ele ance o he publica ions o
he scope o he e iew. Se e al sea ch s ings we e also iden i ied by eplacing he
keywo d “p oduc ion” wi h jus “manu ac u ing” o wi h he names o he unc ional
a eas ha businesses can in ol e in hei g eening plans, like “ope a ions”,
“ma ke ing”, “managemen ”, and “s a egy”. Finally, keywo ds we e conside ed o
some sec o -speci ic in e p e a ions o he g een p oduc ion iew, namely “e hical”,
“o ganic” and “ ai - ade”. Ini ially, he sea ch o publica ions was cons ained o
hose published in he las en yea s. Then, as he sea ch ma u ed and he ypology
o he li e a u e in his ield became mo e appa en , he e iew was na u ally
ex ended.
Using he ini ial sea ch c i e ia and da abase some 2700 publica ions we e
iden i ied. Duplica es we e emo ed and each was assessed o ele ance. Abs ac s
and con en s we e hen conside ed in u he dep h and, h ough his p ocess, he
numbe o ele an publica ions educed o 72. Subjec i i y o his p ocess was
educed h ough a panel p ocess including wo independen esea che s. The
e iew was enhanced by c oss-checking o e e ences which inc eased he lis o
110. These 110 pape s o med he basis o his e iew pape . Finally, i should be
no ed ha we ha e no a emp ed o e e ence e e y ele an a icle in his e iew;
a he we ha e sough o emphasis hose ha appea mos ele an o ou
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pu pose. Consequen ly, an in dep h pe usal o ewe , well selec ed publica ions was
a ou ed a he han inclusion o a b oad ange o po en ially ele an da a sou ces.
2.3 Resul s o he sea ch p ocess
Ci ed a la ge numbe o imes in he subsequen li e a u e, Ha (1995, 1997) and
Po e and an de Linde (1995) can be conside ed as seminal au ho s in he ield.
La ge con ibu o s ha e also been made by au ho s such as Azzone, Be elè and
Noci (1997); Azzone and Noci (1998a, 1998b), Kleindo e e al. (2005) and
S i as a a (2007). In gene al, au ho s publishing g een p oduc ion ha e been om
he USA o he UK han o he na ions. Howe e , a ew ele an pape s ha e also
eme ged om o he Eu opean coun ies, especially I aly (Azzone & Be elè, 1994;
Azzone e al., 1997; Azzone, Bianchi, Mau i & Noci, 1997; Azzone & Noci, 1998a,
1998b) and Ge many (Selige , Kim e al., 2008; Seu ing, 2004). In addi ion, ecen
yea s ha e seen inc easing con ibu ions om Asian coun ies, including China (Hui,
He & Dang, 2002; Lu, Wu, & Kuo, 2007), Taiwan (Chiang & Tseng, 2005; Lee,
2008) and India (Sangwan, 2006; S i as a a, 2007).
Resea ch on g een p oduc ion has o igina ed a s eady ou pu o publica ions o e
ime. These a e dissemina ed ac oss a la ge numbe o scien i ic as well as
p ac i ione jou nals. In iguingly, some o he mos ele an a icles discussing he
p inciples, pe spec i es, and challenges o g een p oduc ion ha e appea ed on
gene al in e es i les, such as he Ha a d Business Re iew (Ha , 1997; Kleine ,
1991; Po e & an de Linde, 1995; Reinha d , 1999), he Academy o
Managemen Re iew (Ha , 1995) o he In e na ional Jou nal o Ope a ions and
P oduc ion Managemen (de Bu gos & Cespedes, 2001). Technical pape s ocusing
on ools and echniques o g een p oduc ion a e p edominan on sec o speci ic
jou nals, wi h a leading con ibu ion o he Jou nal o Cleane P oduc ion, Business
S a egy and he En i onmen , and he Jou nal o Business E hics.
Collec i ely, esea ch on g een p oduc ion has co e ed a ange o opics. Abou
22% o he e iewed pape s discuss he g een p oduc ion iew o p o ide
al e na i e classi ica ions o g een p oduc ion app oaches. A u he 10% o he
au ho s ocus on he d i e s o en i onmen al beha iou and in es iga e he ac o s
ha a ec he g een a i udes o p oduc ion companies. O he ele an opics a e
ela ed o g een ope a ions, wi h 36% o he e iewed pape s alling in his a ea.
He e, he pape s discuss he impac o g een p oduc ion on he ope a ions unc ion
(8%) o ocus on speci ic aspec s o g een ope a ions, including cleane
echnologies (10%), en i onmen al managemen sys ems (5%), g een supply and
p oduc chain managemen (11%), and g een ma ke ing (6%). Su p isingly, he e
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a e no many pape s ha explici ly add ess p inciples o g een p oduc design, he
opic being deal wi h in he mo e gene al domain o p oduc s ewa dship p ac ices.
This is consis en wi h S i as a a (2007) who ound he p oblem con ex o g een
ope a ions o be much wide han he one o p oduc inno a ion.
3 Gene a ion o key indings
3.1 A de ini ion o g een p oduc ion
The e m “g een” is used equen ly in e e yday li e, and ye i s de ini ion ends o
be ambiguous (Saha & Da n on, 2005; Roa y, 1997; Kleine , 1991; Elsayed,
2006). I is commonly associa ed wi h a wide ange o issues, such as eco- iendly
li ing, ecycling, ene gy sa ing, was e managemen , pollu ion educ ion, o se ing,
e c. In iguingly, he e a e ela i ely ew o mal de ini ions o g een p oduc ion
gi en wi hin he li e a u e (see able 1). When conside ed in a p oduc ion con ex ,
g een is eadily used as an umb ella e m co e ing a ange o concep s, such as
“en i onmen ally-conscious”, “e hical”, “o ganic” and “ ai - ade” p oduc ion. These
concep s add ess speci ic o ms o p oduc ion, namely:
 En i onmen ally-conscious: Indus ial companies make hemsel es
commi ed wi h slowing down he deg ada ion o he na u al esou ces and
he plane ’s ecosys ems.
 E hical: Business en e p ises ake esponsibili y o he igh s o he wo ke s
in hei supply chains acco ding o speci ic labou s anda ds o codes o
p ac ice (e.g. E hical T ading Ini ia i e code in he UK).
 Fai - ade: Buye s accep o pay p ices abo e ma ke le els o p oduc s o
disad an aged o ma ginalised p oduce s, ypically om he Thi d Wo ld,
when hese p oduc s a e p o ided wi h he ai - ade label.
 O ganic: Food manu ac u e s o p oduce s o ce ain non- ood i ems, such
as heal h and beau y p oduc s o ex iles, ob ain a ce i ica ion om an
en i led o ganiza ion, (e.g. in he UK, he Depa men o En i onmen ,
Food and Ru al A ai s, he O ganic Soil Associa ion, he O ganic Food
Fede a ion) meaning ha hei p oduc s a e made om a balanced li ing
soil.
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Au ho
De ini ion
Melnyk and Smi h
(1996)
A sys em ha in eg a es p oduc and p ocess design issues wi h issues o
manu ac u ing planning and con ol in such a manne as o iden i y, quan i y,
assess, and manage he low o en i onmen al was e wi h he goal o educing
and ul ima ely minimizing en i onmen al impac while also ying o maximize
esou ce e iciency
Shiino (1999)
The manu ac u ing aiming a he symbiosis wi h he global en i onmen
Yang, Lu, Guo &
Yamamo o (2003)
An ad anced manu ac u ing model o ealize he sus ainable de elopmen o
indus ies
Sangwan (2006)
The in e sec ion o p oduc de elopmen and manu ac u ing p ac ices wi h
en i onmen al issues and conce ns
Chien and Shih
(2007)
A manu ac u ing mode designed o minimize he en i onmen al impac in he
manu ac u ing p ocesses o p oduc s
Zhang and Wang
(2005)
The applica ion o sus ainable science o he manu ac u ing indus y
Liu, Chen, Kang,
Ngai & Li (2005)
A mode n manu ac u ing mode conside ing bo h he en i onmen al impac and
he esou ce consump ion du ing he whole p oduc li e cycle, om design,
ab ica ion, packaging, anspo a ion, usage, ecycling, o was e disposal, and i s
objec i e is o minimise he nega i e en i onmen al impac s and maximise he
u iliza ion a e o esou ce, and ha monize op imiza ion o economic bene i and
social bene i wi h he maximum in eg a ed bene i
Liu, Yin, Cao & Yan
(2005)
The embodimen o he sus ainable de elopmen s a egy and he cycle economy
mode in mode n manu ac u ing
Polca i (2007)
Making a comp ehensi e commi men o en i onmen ally benign p ac ices ac oss
he spec um o he manu ac u ing p ocess
Su o (2007)
Reducing o elimina ing any nega i e impac on he en i onmen by a company’s
acili ies
Indus ial Enginee
(2007)
The design and comme cializa ion o p ocesses and p oduc s ha a e easible and
economical while minimizing pollu ion gene a ion a he sou ce and isk o human
heal h and he en i onmen
He, Liu, Cao &
Zhang (2005)
Gla ič and Lukman
(2007)
A mode n manu ac u ing mode ha akes in o conside a ion esou ce
consump ion and he en i onmen al impac
Sus ainable p oduc ion is c ea ing goods by using p ocesses and sys ems ha a e
non-pollu ing, ha conse e ene gy and na u al esou ces in economically iable,
sa e and heal hy ways o employees, communi ies, and consume s and which a e
socially and c ea i ely ewa ding o all s akeholde s o he sho - and long- e m
u u e
Table 1. De ini ions o g een p oduc ion
The e m, g een, is o en in e changed wi h “sus ainable” (Chien & Shih, 2007; He
e al., 2005; Indus ial Enginee , 2007; Liu, Chen e al., 2005; Liu, Yin e al., 2005;
Melnyk & Smi h, 1996; Polca i, 2007; Sangwan, 2006; Shiino, 1999; Su o , 2007;
Yang e al., 2003; Zhang & Wang, 2005). The downside o such a la ge ange o
e ms can hinde p og ess possible in academia and indus y (Abdul Rashid, E ans
& Longhu s , 2008). The esea ch li e a u e p o ides a igh de ini ion o he
concep o sus ainabili y, which in p inciple is conce ned wi h mee ing “ he needs o
he p esen wi hou comp omising he abili y o u u e gene a ions o mee hei
own needs” (Wo ld Commission on En i onmen and De elopmen , 1987, p. 43).
In sho , sus ainabili y calls o p oduc ion en e p ises o make a commi men o
he u u e and assume comp ehensi e esponsibili y o he oo p in hey lea e
behind (de Bu gos & Cespedes, 2001; Ha , 1995, 1997; Seu ing, 2004; S ead &
S ead, 2000). F om a p ac ical poin o iew, he sus ainabili y ision is popula ly
associa ed wi h he T iple Bo om Line (3BL) amewo k, which en ails measu ing
o ganisa ional and socie al success h ough he h ee Ps o people, plane and p o i
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1999). Simila ly, ake back o used machines is common o se e al manu ac u e s
o elec onic p oduc s, such as Canon, Kodak, IBM, HP (Reinha d , 1999).
G een supply-chain managemen
(GSCM) is gaining inc easing in e es among esea che s and p ac i ione s o
ope a ions and supply chain managemen . G owing impo ance is d i en mainly by
he escala ing de e io a ion o he en i onmen , e.g. diminishing aw ma e ial
esou ces, o e lowing was e si es and inc easing le els o pollu ion. The scope o
GSCM anges om eac i e moni o ing o he gene al en i onmen managemen
p og ammes o mo e p oac i e p ac ices implemen ed h ough Rs (Reduce, Re-use,
Rewo k, Re u bish, Reclaim, Recycle, Remanu ac u e, Re e se logis ics, e c.)
S i as a a (2007).
Collec i ely, his clus e ing o exis ing esea ch helps o bo h, illus a e how
companies p esen hei g een c eden ials, and app ecia e whe e p e ious wo k has
ocused. O e all, his si ua ion can be summa ised as:
Finding 3: G een p oduc ion c eden ials a e claimed by: p oduc s om g eene
ma e ials, p oduced by g eene ope a ions and p ocess, deli e ing g eene
ou comes, and being g eene o dispose o a he end o hei li e.
3.4 Examples o success ul g een p oduc ion in p ac ice
The e a e many companies ha pu po o ha e inco po a ed g een issues in o
hei business p ac ices. Again, he ela i ely open de ini ion o g een means ha i
is di icul o eliably iden i y he be e examples.
Rankings a e now a ailable ha lis such companies and e lec hei ela i e
pe o mance. These include he “Dow Jones Sus ainabili y G oup Indexes” (Dow
Jones Indexes, 2011) which aims a enabling a mo e anspa en assessmen o
sus ainabili y d i en companies on he inancial ma ke (Dobe s & Wol , 2000),
“The global 100 mos sus ainable co po a ions” p ojec (Global 100, 2011), which
each yea eleases he lis o he op 100 co po a ions in he wo ld based on
specialis e alua ion o achie emen s on social, en i onmen al, and s a egic
go e nance issues, he “Global Repo ing Ini ia i e” (GRI, 2011), which de elops
and dissemina es globally applicable guidelines o sus ainabili y epo ing, and he
“Clima e Coun s Company Sco eca d” (Clima e Coun s, 2011), which uses 22
c i e ia o de e mine companies” indi idual con ibu ion o s op clima e change.
Simila ly, g een o ganisa ions and a ange o publica ions, including “The Sunday

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Times”, “Business Week”, and “The Independen ” in he UK, all p opose hei own
lis s o op g een companies.
O ganisa ion
Sec o
Desc ip ion
Link
3M
Technology
p oduc s o
a ious
applica ions
Sus ainabili y policies and p ac ices di ec ly
linked o he undamen al co po a e alues
www.3m.com
BMW
Au omobiles
Sus ainable business managemen as pa o
co po a e philosophy. Membe o he “Dow
Jones Sus ainabili y G oup Index”
www.bmwg oup.com
Du Pon
Science p oduc s
o he
ag icul u e,
cons uc ion,
anspo a ion
and
communica ion
sec o s
Sa e y and en i onmen al p o ec ion goals
in eg a ed in o he o al alue p oposi ion and
he business model. Suppo o p og ams and
non-p o i o ganisa ions ha add ess social
p og ess o he communi ies in which i ope a es
www.dupon .com
Eco e
Ecological
de e gen s and
cleansing
p oduc s
En i onmen al policy cen al o i s p oduc s and
all company depa men s
www.eco e .com
IBM
Compu e
echnology
Commi men o en i onmen al leade ship in i s
ope a ions, p oduc design and use o
echnology. Suppo o communi ies in need
h ough a ge ed g an s o echnology and
p ojec unds
www.ibm.com
IKEA
Fu ni u e
Inco po a ion o a numbe o en i onmen al
s a egies in o i s p oduc de elopmen . Ecology
and social esponsibili y ini ia i es a i s s o es
www.ikea.com
McDonald’s
Foodse ice
Go e nance s uc u e o i s supply chain aiming
a ensu ing sus ainable ag icul u al and ood
manu ac u ing p ac ices. En i onmen al
esponsibili y ac ions a i s es au an s
www.mcdonalds.com
Monsan o
Seeds o
ag icul u e and
he bicides
Use o bio echnology o p oduce high yield and
mo e en i onmen ally iendly solu ions han
adicional ag icul u e. E hical code imposed o
all business pa ne s
www.monsan o.com
Pa agonia
Clo hing
Mission s a emen : using business o inspi e and
implemen solu ions o he en i onmen al c isis.
Assu ance o sa e, ai and humane wo king
condi ions a i s ac o ies
www.pa agonia.com
Sony
Elec onic
p oduc s
Wide ange o ini ia i es, also in collabo a ion
wi h i s s akeholde s, aiming a main aining a
heal hy global en i onmen o u u e
gene a ions. Social con ibu ion ac i i ies
p omo ing educa ion and socie y de elopmen in
he a eas whe e i conduc s business
www.sony.ne
The Body Shop
In e na ional
Cosme ic p oduc s
Co e alues in a oiding animal es ing, ac ing
sel es eem, de ending human igh s, p o ec ing
he plane and suppo ing communi y ade
www. hebodyshop.co
m
The Coca-Cola
Company
Be e age
p oduc s
Sus ainabili y s a egy which in ol es he
company and six o i s la ges bo ling pa ne s
www. hecoca-
colacompany.com
The Dow
Chemical
Chemical p oduc s
Public commi men o he pu sui o global
solu ions o en i onmen al issues, especially
clima e change and ene gy supply. Ex ensi e
p og ammes o educe he impac o he
company’s ope a ions on si e communi ies
www.dow.com
Table 3. Examples o g een companies
Such ankings, howe e , use di e en c i e ia o judge he g een c eden ials o a
business, and di e en me hods o judge how well hese a e being ealised in
p ac ice. Fo example, mos leading companies ha e included a commi men o
social conce ns in o hei g een s a egies ( able 3). Popula examples a e Coca
Cola, 3M and BMW. Wo king in collabo a ion wi h i s la ges bo ling pa ne s, Coca
Cola has de eloped a plan o sus ainabili y which in ol es i s global p oduc ion,
ma ke ing and dis ibu ion sys ems, while 3M and BMW a e ecognised as leade s in
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g een managemen wi h hei p e-emp i e s a egies ha ha e in luenced o e all
indus y sec o s (Ha , 1995, 1997; Po e & an de Linde, 1995). In a b oade
o m o collabo a ion is indus ial symbiosis whe e indus y wo ks oge he o sha e
o ade esou ces o o e all bene i (Bee s & Biswas, 2008; S a el & Yan, 2008).
When sea ching o he be e examples o g een, an impo an ac o o conside is
he ex en o which a business as ac i ely p omo ed i sel . G een philosophies ha e
been inco po a ed by companies in o he co po a e cul u e also be o e he concep
o sus ainabili y was coined. Examples include “The Body Shop” (Polonsky, 1994),
“Pa agonia” and “Eco e ” (Howa h, 2007) ha ha e adi ionally p esen ed g een
issues as an essen ial elemen o b and iden i y. Public opinion seems o be
a ac ed by companies ha , like hese, ha e e ec i ely communica ed hei g een
conce ns.
These a e h ough p oduc changes, a he han a ca e ul conside a ion o he
ac ual con ibu ion o en i onmen al and social ma e s. He e, p oduc ion p ocess
inno a ions and end-o -li e eco e y schemes, such as he 3M’s “Pollu ion
P e en ion Pays”, he Dow’s “Was e Reduc ion Always Pays” p og ammes (Gup a,
1995; Ha , 1995; Miles & Co in, 2000; Mon , 2000), o he Xe ox’s lease and ake-
back solu ion (Ha , 1995, 1997; Richa ds, 1994), ha e ecei ed less a ou , e en
hough hey ha e allowed he hos companies o imp o e en i onmen al alue
while, a he same ime, d ama ically educe hei cos s. We ha e a emp ed o
cap u e his si ua ion in he ollowing inding:
Finding 4: Iden i ying he be e examples o g een p oduc ion is augh wi h
di icul y, wi h exis ing ankings p o iding only limi ed guidance and ele ance, as
hese appea o be hea ily in luenced by he ex en o which business sel -p omo e
p omo e hei g een c eden ials.
3.5 D i e s o g een p oduc ion wi hin business
The e a e many e hical easons o he adop ion o g een p oduc ion. Howe e ,
aking a mo e clinical business iew, he mo i es o adop ing g een p oduc ion
p inciples can be g ouped in o h ee ca ego ies.
Regula ion compliance
The e is a g owing body o en i onmen al egula ions (e.g. in Eu ope, ELV 2000,
WEEE 2003, RoHS 2003, PPW 2004, EUP 2005, REACH 2007) and also ISO9001,
ISO14000, and OHSAS18000 ha a e o cing companies o educe hei esou ce
consump ion, o minimise hei was e, and o ake esponsibili y o he ake-back
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o p oduc s a he end o he use phase (Kleindo e e al., 2005; an Hillege sbe g
e al., 2001). Howe e , he e a e also o he mo i es ha cu en ly d i e companies
o engage in g een p oduc ion. Acco ding o Williamson, Lynch-Wood & Ramsay
(2006), hese can be classi ied in o “business case” and “business pe o mance”
mo i es.
Ma ke alue
The oppo uni y o companies o use g een pe o mance o enhance hei
epu a ion and s eng hen hei posi ion in he ma ke place cons i u es he business
case o g een p oduc ion. Financial ins i u ions inc easingly p ice companies
acco ding o hei social and en i onmen al liabili ies, hus leading in es o s o ake
in o conside a ion co po a e g een epu a ion du ing hei acquisi ion decisions
(Dobe s & Wol , 2000; Fai child, 2008). In a simila way, po en ial s a egic
pa ne s, such as go e nmen agencies, supplie s, banks and o he lende s,
cu en ly appea much mo e sensi i e o social and en i onmen al pe o mance
when selec ing companies o c ea e alliances (Miles & Co in, 2000). Indeed, in
some business sec o s, companies a e claimed o be also spu ed by compe i o s”
g een ac i ism (Polonsky, 1994). Mo eo e , cons an ly g owing p essu es a e being
exe ed by non-go e nmen al o ganisa ions, such as G een Alliance in he UK o
he Coali ion o En i onmen ally Responsible Economies (CERES) in he US, which
call o a cen al ole o he en i onmen in public policy and business p ac ices
(Azzone & Noci, 1998b; Miles & Co in, 2000; S ead & S ead, 2000).
P oduc ion cos s
Business pe o mance mo i es a e mainly ela ed o en i onmen al p o ec ion
ac ions and gene ally unde s ood as oppo uni ies o cos sa ings and e iciency.
Po e and an de Linde (1995) p o ide se e al examples o how en i onmen
ocused inno a ions can help companies use a ange o inpu s mo e p oduc i ely.
Such inno a ions include p ocess enhancemen s, mo e comple e ma e ial
u ilisa ion, design simpli ica ions, elimina ion o unnecessa y packing, ecycling o
sc aps, imp o ed seconda y ea men s, educed handling and disposal o
discha ges, e c. The e is subs an ial empi ical e idence sugges ing ha he inc ease
o esou ce p oduc i i y can o se he cos o en i onmen al imp o emen s, hus
d i ing down he o al cos o p oduc ion (Azzone, Be elè & Noci, 1997; Co be &
Klassen, 2006; Miles & Co in, 2000; O’B ien, 1999; P euss, 2001). In addi ion,
adop ing an eco-e iciency pe spec i e can aid plan -le el p oduc i i y e o s
(Kleindo e e al., 2005; Rusinko, 2007). He e, he iew o poo esou ce
p oduc i i y as a o m o economic was e is seen o e oke Japanese managemen
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echniques (Ha , 1995; Po e & an de Linde, 1995) and so o endo se he
implemen a ion o app oaches such as o al quali y managemen , jus -in- ime, o
lean p oduc ion (Kleindo e e al., 2005; Ha , 1995; de Bu gos & Cespedes, 2001;
King & Lenox, 2001). This explo a ion o he d i e s o g een p oduc ion led o he
ollowing inding:
Finding 5: The e appea o be h ee key d i e s o he adop ion o g een
p oduc ion ini ia i es, namely, egula o y demands, ma ke alue c ea ion and cos
educ ion p og ammes.
3.6 Role o g een p oduc ion in compe i i e s a egy
Many businesses a e keen o p omo e some g een c eden ials. Howe e , ealisa ion
o hese goals does no a ec companies equally; a he i depends upon he ex en
o hei g een aspi a ions. He e, Azzone and Noci (1998b) sugges ha he e a e
i e s a egic g een al e na i es, hese being:
 E angelis s a egy: E hical objec i es and implying a adical app oach o
en i onmen al issues
 P oac i e g een s a egy: An icipa ing compe i i e p essu es and
implemen ing sys ema ic ini ia i es h oughou he whole supply chain
 Responsi e s a egy: La gely sees he en i onmen as a echnical issue
which can s ill be used o gain compe i i e ad an age
 Reac i e s a egy: Company aims o comply wi h en i onmen al egula ions
o cus ome s” en i onmen al equi emen s
 Un esponsi e beha iou : A passi e pa e n o en i onmen al beha iou and
ying o delay adop ion o g een p og ammes.
Based on hei wo k in I aly, Azzone and Noci (1998b) go on o poin ou ha an
E angelis s a egy will equi e mo e / di e en inancial and manage ial e o han
a Reac i e s a egy. He e, en i onmen al and e hical conce ns may impac many o
all company ope a ions, anging om he acquisi ion o aw ma e ials and ene gy,
p oduc ion p ocess, echnologies and people, h ough o he o m o he deli e ed
p oduc i sel . Fo example, a company ollowing an E angelical s a egy will a oid
he use o haza dous ma e ials, will sou ce locally, ca y ou p oduc ake-back and
ecycling, employ en i onmen ally iendly logis ics sys ems, e c. The amewo k by
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Azzone and Noci (1998b) is hough p o oking; howe e , he li e a u e on s a egic
manu ac u ing sugges s an al e na i e ca ego isa ion.
The book “Res o ing ou compe i i e edge” by Hayes and Wheelw igh (1984) is
amongs he mos ci ed ex s in he p oduc ion ope a ions managemen li e a u e.
He e, ou possible oles a e iden i ied o manu ac u ing ope a ions wi hin
business, namely: in e nally neu al, ex e nally neu al, in e nally suppo i e, and
ex e nally suppo i e. The s a egic alue o p oduc ion is p og essi ely g ea e o
each s age. As illus a ed below, his classi ica ion can be eadily ansla ed in o he
concep o g een p oduc ion (see igu e 2).
Figu e 2. Roles o g een p oduc ion wi hin compe i i e s a egy
In e nally neu al G een p oduc ion s a egy
He e, G een imp o emen s a e no expec ed o p o ide compe i i e ad an age and,
he e o e, he aim o dealing wi h hem is jus o minimise po en ial nega i e
impac s (e.g. axes, ines, legal sanc ions, emedia ion cos s). As a consequence,
companies a his s age app oach g een issues as a de imen al cos o doing
business, and so hey end o es ic hei ac ions o he minimum le el equi ed
o compliance wi h egula ions. This is he ole ha mos s udies seem o imply
when hey desc ibe he applica ion o pollu ion con ol echnologies (e.g. Rusinko,
Pe spec i e
S a egic
a i ude
NEUTRAL
SUPPORTIVE
•Fo ced by egula ions o educe he
impac o hei business o he
en i onmen and he communi y
•P omo ing g een ini ia i es o educe
cos s
•Using g een c eden ials o win new
cus ome s and in es o s
•Seeking o be seen o be conscien ious
abou g een issues by compe i o s,
in e es g oups and he su ounding
communi y
INTERNAL EXTERNAL
12
34
Pe spec i e
S a egic
a i ude
NEUTRAL
SUPPORTIVE
•Fo ced by egula ions o educe he
impac o hei business o he
en i onmen and he communi y
•P omo ing g een ini ia i es o educe
cos s
•Using g een c eden ials o win new
cus ome s and in es o s
•Seeking o be seen o be conscien ious
abou g een issues by compe i o s,
in e es g oups and he su ounding
communi y
INTERNAL EXTERNAL
12
34

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2007), al hough i is no excluded ha in es men s in s a e-o - he-a pollu ion
con ol solu ions can lead o compe i i e ad an age (Gup a, 1995).
Ex e nally neu al G een p oduc ion s a egy
The ole o g een issues is s ill ega ded as neu al (a bes ) o compe i i e
s a egy, bu neu ali y is pu sued agains ex e nal s akeholde s a he han
in e nally o he company. He e, o ganisa ions ake g een imp o emen ini ia i es
because hey seek o align wi h compe i o s o sa is y expec a ions o cus ome s,
go e nmen s, in es o s, in e es g oups, and he su ounding communi y. This iew
is pa icula ly p e alen in la ge co po a ions (B and , 2007, Vide as & Albe ini,
2000) as hey a e mo e isible and a e he e o e mo e likely o su e om a poo
public image.
In e nally suppo i e G een p oduc ion s a egy
He e, he adop ion o g een poli ics is expec ed o p o ide clea and c edible
suppo o he company’s compe i i e s a egy. In his ole, g een ini ia i es a e
ega ded as oppo uni ies o educe cos s and so o suppo cos -based compe i i e
s a egies. Such an a i ude is commonly associa ed wi h he shi om pollu ion
con ol o pollu ion p e en ion echnologies (Ha , 1995; Polonsky, 1994; P euss,
2001; Rusinko, 2007; Sa kis & Co dei o, 2001) and, al hough o a lesse ex en ,
also o he in oduc ion o p oduc s ewa dship app oaches (Gup a, 1995).
Ex e nally suppo i e G een p oduc ion s a egy
Wi h his g een p ac ices do no simply con ibu e o co po a e s a egy, hey a e
an essen ial pa o i . These a e companies ha use g een policies as a ool o
a ac new cus ome s and in es o s. In p ac ice, hese companies a e p oposed o
compe e p ima ily wi h he non-p ice ma ke ing a iables o epu a ion and p oduc
di e en ia ion (Azzone & Be elè, 1994; Miles & Co in, 2000). Indeed, nume ous
au ho s (Elsayed, 2006; Ha , 1995; Miles & Co in, 2000; Rusinko, 2007)
acknowledge he exis ence o an unclaimed compe i i e space in which companies
can gain sus ained ea ly mo e ad an ages h ough a epu a ion as g een
companies. Simila ly, en i onmen al and social a ibu es o p oduc s a e claimed o
ha e g owing impac on cus ome s” choices, o he end ha companies can be
allowed o also cha ge a p emium p ice o hem (Fai child, 2008). This
classi ica ion o g een p oduc ion leads o he ollowing summa y:
Finding 6: Companies ha e al e na i es in he ex en o which hey unde pin hei
compe i i e s a egy by g een p oduc ion. These can be a ionalised as ou - i e
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possible oles, anging om a conse a i e adop ion simply in esponse o
egula o y p essu es, h ough o he whole compe i i e s a egy being pi o al on
he g een c eden ials ac oss he design and p oduc ion ac i i ies o he
manu ac u e .
3.7 Challenges o implemen ing g een p oduc ion
A he le el o an indi idual company he challenges o implemen a ion a e a ec ed
by he g een c eden ials sough (sec ion 3.3), he g een d i e s (sec ion 3.5) and
he desi ed ole o g een p oduc ion wi hin compe i i e s a egy (sec ion 3.6). A a
b oade le el, he challenges o implemen ing g een p oduc ion s a egies appea o
all in o h ee clus e s, namely: in e nal ope a ions, cus ome ela ionships, and
co po a e accep ance.
G een challenges wi hin in e nal ope a ions
Mos g een ini ia i es equi e adical changes in he ope a ions a ea (Azzone &
Noci, 1998a; de Bu gos & Cespedes, 2001; Gup a, 1995; Mohan y & Deshmukh,
1998). Fo example, a g een company will a oid use o oxic ma e ials; inno a e
g een p oduc s and p ocesses; imp o e wo king condi ions; ca y ou p oduc ake-
back and ecycling; and so o h. These ope a ing p inciples can only be deli e ed
success ully i g een pe o mance objec i es a e managed join ly wi h mo e
adi ional ope a ions objec i es (i.e. cos , quali y, deli e y, lexibili y) (Azzone &
Noci, 1998a; de Bu gos & Cespedes, 2001; Gup a, 1995) and a b oade , mo e
holis ic iew o ope a ions managemen is adop ed (Co be & Klassen, 2006).
He e, complexi y o ope a ions- ela ed decision making inc eases, also because o
he muddy na u e o he ela ionship be ween g een imp o emen ac i i ies and
associa e co po a e pe o mance (Reinha d , 1999; Rusinko, 2007). F om an
ope a ions pe spec i e, g een issues mus be deal wi h on a con inuous
imp o emen basis and aking in o accoun echnology de elopmen s, business
en i onmen , egula ions, cus ome demands, and socie y expec a ions (Gup a,
1995). In addi ion, di e en logics o human pe o mance managemen need o be
adop ed in o de o in eg a e g een issues in o he co po a e cul u e and p o ide
employees wi h adequa e echnical and managemen skills (Azzone, Bianchi e al.,
1997; Azzone & Noci, 1998a; Azzone & Noci, 1998b; Ginsbe g & Bloom, 2004). One
o he p oblems in his a ea is he lack o guidance o businesses o achie e mo e
sus ainable p oduc ion (Nash, 2009).
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G een challenges wi hin cus ome ela ions
The success o g een policies on he ma ke depends conside ably on being
sensi i e o he cha ac e is ics o po en ial a ge segmen s (Dobe s & Wol , 2000;
Ginsbe g & Bloom, 2004; Reinha d , 1999) since, by hei na u e, g een cus ome s
a e e y di e se in e ms o in e es s, mo i es, p io i ies, deg ees o conce n, e c.
(S ead & S ead, 2000). This may discou age companies om p omo ing hei g een
p oduc ion e o s (Polonsky, 1994), especially i hei cus ome base is b oad and
geog aphically sca e ed (Ginsbe g & Bloom, 2004). Ne e heless, companies ha
decide o publicise hei g een ac i i ies ha e o mas e cus ome s” lack o ai h in
g een claims (Polonsky, 1994; Reinha d , 1999), as g eenwashing habi s ha e been
p e alen in he pas (Azzone & Be elè, 1994; Ginsbe g & Bloom, 2004; Ku z,
2007). He e, cus ome s” mispe cep ions may ou weigh objec i e measu es o
co po a e g een pe o mance (Azzone, Bianchi e al., 1997; Polonsky, 1994).
Finally, a ocus on communica ion s a egies ha clea ly desc ibe he alue
p oposi ion o he cus ome s is necessa y o achie e p oduc and b and
di e en ia ion (Reinha d , 1999; Kuk, Fokee & Hung, 2005).
G een challenges wi h co po a e accep ance
In oducing he g een dimension in o co po a e s a egy se s-up pa icula
challenges. G een alues a e speci ic and di e en om adi ional objec i es o
p oduc ion businesses (Azzone, Bianchi e al., 1997), and hence he decision o
in es in g een policies wi h espec o mo e adi ional sou ces o di e en ia ion
and cos educ ion o en equi es complex and con lic ing ade-o s (Azzone &
Be elè, 1994; Kuk e al., 2005); Reinha d , 1999; Sangwan, 2006). Manage s
mus be awa e ha g een policies do no au oma ically lead o posi i e e u ns
(Co be & Klassen, 2006; Sa kis & Co dei o, 2001) and ea g een issues as any
o he business p oblem (Reinha d , 1999). He e, he main dilemma is ha g een
s a egies imply a long e m commi men , as hey a e e y unlikely o gene a e
subs an ial p o i s in he sho un (Ha , 1995; Sa kis & Co dei o, 2001). Risk also
needs o be conside ed ha he company lacks he capabili ies o ealise he
changes and new de elopmen s necessa y o s a egise g een imp o emen s (Kuk
e al., 2005) o , likewise, is no able o p o ec i sel om imi a o s and compe i o s
o long enough o eap inancial p o i (Reinha d , 1999). Finally, an open,
op imis ic, and o wa d looking s a egic mindse is needed wi hin o ganisa ions o
o e come he iew o g een issues as only poli ical o mo al esponsibili ies
(Reinha d , 1999) and cul i a e he idea ha i makes business sense o in eg a e
g een hinking in o co po a e decision making.
Jou nal o Indus ial Enginee ing and Managemen - h p://dx.doi.o g/10.3926/jiem.405
- 76 -
Finding 7: The e a e h ee key challenges o implemen ing g een p oduc ion,
namely; changes o p oduc ion echnologies and ha dwa e, accep ance by he
cus ome base, and buy-in o s akeholde s ac oss he ope a ions o he
manu ac u e .
4 Discussion and concluding ema ks
The e is li le doub ha g een s a egies o e signi ican s a egic oppo uni y o
manu ac u e s. An inc easing awa eness o sus ainabili y issues can inc ease
consume demand o p oduc s (Kleindo e e al., 2005), and mo e and mo e
s akeholde s a e asking o equi ing o ganisa ions o be mo e en i onmen ally
esponsible and eco-e icien wi h espec o hei p oduc s o p ocesses
(Dangayach & Deshmukh, 2001; Rusinko, 2007). As socie y becomes inc easingly
conce ned wi h en i onmen al issues, hose companies wi h mo e ad en u ous
g een s a egies a e likely o:
 Be leade s in he de elopmen o new p oduc s and businesses
oppo uni ies
 Ha e excellen g ow h po en ial
 Seek o main ain p oduc ion ope a ions locally
 Posi i ely con ibu e o add essing en i onmen al issues
The e is also li le doub ha expe ise in p oduc ion ope a ions will be jus as
essen ial o he u u e success o manu ac u e s as i has been in he pas .
Howe e , he knowledge se o p o essionals in his ield will undoub edly need o
con inue o e ol e o emb ace he concep s o g een and sus ainable p oduc ion.
This pape has se ou o con ibu e o his p ocess h ough a e iew o li e a u e on
g een om a con en ional p oduc ion ope a ions pe spec i e. Th ough his p ocess
we ha e con ibu ed a se o indings ha cap u e he cu en s a e-o - he-a o
his opic. In summa y, ha g een p oduc ion is commonly seen as “ he applica ion
o en i onmen ally and socially sensi i e p ac ices o educe he nega i e impac o
manu ac u ing ac i i ies while, a he same ime, ha monising he pu sui o
economic bene i s” (Finding 1).
Resea ch in g een p oduc ion has mo ed om was e a oidance o, mos ecen ly,
use p oduc i i y (Finding 2). Wi hin he ield o g een p oduc ion, c eden ials a e
claimed in he a ea o p oduc , p ocess, use and end o li e (Finding 3) wi h spa se
cases on companies ending o ocus on p oduc b and a he han li e cycle impac
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