Nissan integrated iso 14000 standards in its manufacturing plants

Corporate Responsibility and Environmental Compliance 2

Corporate Responsibility and Environmental Compliance

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Corporate responsibility and environmental compliance are aspects of the business world today that cannot be ignored. Through answering a few questions, we shall learn more about how an organization can ensure environmental compliance and how it can take up on its corporate responsibilities.

The Just-In-Time (JIT), Toyota Production Systems (TPS), and Lean systems are theories that related in one way or another. The Toyota Production System based on the Jidoka and Just-in-time concepts. The Just-in-time system ensures that each process yields what is required for the next process. This is done continuously. It involves the efficient production of high-quality products through removing waste and unnecessary requirements during production. The JIT system discourages holding minimal or no inventory, only that which is required for the next production process and distribution. The lean manufacturing system is a westernized version of the JIT system that is based on knowledge. Just like JIT, the lean system also aims towards the minimal holding of inventory. The characteristics of JIT and lean system are quite similar in that their terms are similar too.

JIT, TPS AND Lean systems may each have their advantages and disadvantages if used by Nissan. The advantages of the JIT system include minimal costs incurred to cover wastes and inconveniences. Another benefit is that the costs that would have been spent on acquiring and holding unnecessary inventory can be used for other purposes (Advantages and Disadvantages of Just-in-time Jit Manufacturing and Inventory Control System, 2010). The locations that were previously used to store the unnecessary inventory can be used for other purposes. Time wastage is also reduced by this system, allocating more time to consumer satisfaction. The disadvantages of this system include the incurring of high costs when implementing the system. Suppliers are at risk if they incorporate this system, since if they experience a hitch in their processes, they will not have inventory to fall back on. This system is prone to interruptions. The advantages of the Lean system include its reduction of costs incurred. This system also improves the efficiency of an organization and promotes time-saving. It also promotes the skillful growth of employees in an organization. The lean system reduces wastage as well (Advantages & amp: Disadvantages of Lean Production). The drawbacks of this system include time wastage. This is quite possible since certain organizations tend to spend too much time tracking wastes and production processes. The benefits of the TPS system include the promotion of production of quality goods and offering of quality services. TPS minimizes on costs, hence ensuring profitable returns on investments. It also promotes appropriate timing when delivering products and services. The system addresses environmental concerns. The system appreciates the need for safety in production processes. Setbacks of TPS include the incurring of high training costs. Also, some supervisors may not support this system. Hence, they show resistance towards it.

The Triple Bottom Line concept can be useful in a facility’s operations management, especially at Nissan. This concept expresses the impact of a firm locally and globally. The three bottom lines include people, the planet and profit (Manktelow). The well-being of each person is taken into consideration. Companies sacrifice a lot to ensure that the ecological system is left unharmed. They strive towards this, even if it means them going green so as to promote sustainability within the environment. The planet bottom line ensures that an organization reduces their usage of energy.It ensures that it uses renewable energy, unsafe disposal of toxic waste and produce end products that do not bring health hazards to consumers that use them (Manktelow). The profit bottom line elaborates the fact that an organization’s profits not only benefit them but also benefit the community. The Triple Bottom Line concept is important when an organization is trying to make improvements that impact the community at large and the environment as well. It measures the effect that a company has on its environment. It also helps an organization to treat the people surrounding it better. It is also useful when monitoring an organization’s profits.

The ISO 14000 standards avail tools for organizations to meet their environmental responsibilities (ISO, 2009). The ISO 14000 standards have been integrated into the Nissan manufacturing plants. Towards the end of 2006, Nissan came up with aims that geared towards environmental management with the help of the Nissan Green Program 2010. Thousands of people working in Nissan plants are working on environmental activities. Nissan strives to make its environmental management better by promoting higher environmental performance in the automobile market, for example advocating for “Zero Emission”.

The corporate responsibility ensures that an organization takes responsibility for whatever effects it brings on the society. It boosts the competitive advantage of an organization in the market. Corporate responsibility principles include the respect for Human Lefts Principle, the transparency principle, respecting related stakeholders lefts principle, legal compliance principle and the adherence to customary international laws principle. Respecting related stakeholders lefts principle states that an organization should acknowledge the fact that there are different related stakeholders’ lefts and interests, and there are also different major and minor organizational products and services. The transparency principle illustrates that an organization should accurately lay out its policies and effects on society and the environment at large (Murray, 2004). This principle is applicable when ensuring that environment degradation does not occur as a result of the organization’s activities. Respect for human lefts principle states that an organization should implement its policies, hence showing respect for the human lefts that still exist in the Universal Declaration of Human Lefts. The legal compliance principle states that an organization ought to act according to the local and global laws and regulations (Murray, 2004). This principle is incorporated when considering carrying out activities and taking part in external activities. The adherence to customary international laws principle states that an organization should take the declarations and regulations into consideration when creating organizational policies. This principle is used when establishing policies and carrying out certain practices. The most effective principle would be the transparency principle. This is because most of the advocates of sustainability are working hard towards ensuring that their policies are being effectively implemented by all enterprises.

In conclusion, we learn that the Toyota Production System (TPS), Lean system, and Just-In-Time system are all related in one way or another. Each has its advantages and setbacks. We learn that ISO 14000 standards advocate for effective environmental management. We also learn about the various corporate responsibility principles and how they can be incorporated in an organization. We also expound more on the relevance of the Three Bottom Line.

REFERENCES

Advantages & amp: Disadvantages of Lean Production. (n.d.). Retrieved 08 12, 2015, from Chron.com: http://smallbusiness.chron.ccom/advantages-amp-disadvantages-lean-production-46696.html

Advantages and Disadvantages of Just-in-time Jit Manufacturing and Inventory Control System. (2010, 04 12). Retrieved 08 11, 2015, from Ritalogistic Blog: http://ritalogisticsblog.wordpress.com/2010/04/12/advantages-and-disadvantages-of-just-in-time-jit-manufacturing-and-inventory-control-system/?_e_pi_=7%2CPAGE_ID10%2C97

ISO. (2009). Environmental Management - The ISO 14000 Family of International Standards. Switzerland: ISO.

Manktelow, J. (n.d.). The Triple Bottom Line Measuring Your Organziations Wider Impact. Retrieved 08 11, 2015, from Mind Tools: http://www.mindtools.com/pages/article/newSTR_79.htm

Murray, J. (2004). Corporate Social Responsibility: An Overview of Principles and Practices. Geneva: ILO.