Environment Management at Yamama Cement Company - Assignment Example

Environment Management at Yamama Cement Company Abstract Yamama Cement produces 6.300.000 ton of cement annually. With this production level (approximately one-sixth of all production in Saudi Arabia), the ability to increase production significantly and the pace of construction in the kingdom the issue of environmental impacts is very important. The following brief will identify the issues to be explored and addressed in an environmental impact report for Yamama Cement. Environment Management at Yamama Cement Company Introduction In order to succeed within cement industry Yamama Cement Company of Saudi Arab has always been working hard to acquire various techniques to shape organisation’s behavior towards environmental factors. Such techniques include proper handling of environment issues, effective marketing strategies and up to date human resource and employee relationship techniques. However, this paper will mainly discuss various characteristics of Environment Management programmes at Yamama Cement Company. The issues of environmental impact that must be considered in an Environmental Impact Assessment for Yamama Cement are six fold: climate protection, fuels and raw materials, health and safety, emissions reduction, local impacts and concrete recycling. (Yamama Cement Website, 2010) This issue matrix is adopted from the World Business Council for Sustainable Development's (WBCS), “Cement Sustainability Initiative (CSI)”. (“Cement Sustainability Initiative (CSI)”) Each of these issues will be briefly outlined. 1. Climate protection: In the cement industry this relates to the use of less damaging fuels (i.e. biomass) and less fuel intensive manufacturing processes (dry process). 2. Fuels and raw materials: This aspect of environmental stewardship involves use, reuse and recycling of raw materials, energy and waste. 3. Health and safety: In this field the World Business Council for Sustainable Development's (WBCS), “Cement Sustainability Initiative (CSI)” motto is 'Aiming for Zero'. The objective is no employee injuries or fatalities. 4. Emissions reduction: Reduction or elimination of the release of persistent organic pollutants (POPs). 5. Local impacts: This aspect of environmental stewardship involves reduction of airborne particulate matter discharge and noise, “disturbance to landscape, local watershed and local biodiversity caused by limestone quarrying” and involvement of all relevant local stakeholders. 6. Concrete recycling: Recycling concrete, by definition, reduces the need to manufacture and by definition reduces all of the negative factors identified above in 1 through 5. Climate protection Presence of world’s hottest deserts makes the Middle East one amongst hottest countries of the world with extremely hot and dry weather. Hence, all kinds of traders and manufacturers keep in mind its exceptionally harsh climatic conditions and use construction materials which can provide an efficient resistance to heat and dryness. (Sinton, 2005, 450) For example, builders need to use waterproof foundation for buildings in order to avoid water infiltration due to corrosive characteristic of salt present in the underground water within the Middle East. Theory of corporate citizenship and business ethics indicate towards an organisation’s seriousness in showing respect and looking after community and environment while performing its functions. (Hargreaves, 2009, 40) Globally, the cement industry is accountable for approximately 5% of total synthetic emissions of carbon dioxide. The Yamama cement has always shown its vigorous and dedicated assurance towards environment. Yamama has converted its surrounding barren area with huge numbers of plants. They have transformed waste lands into extremely productive reserves where they produce highly valued products for the country together with bringing a positive impact on the socio-economic conditions. (Cangiano, Castaldi, Costa and Tognon, 2003, 28) Moreover, Yamama has been consistent in looking after and resolution of numbers of issues concerning the safety of the environment in the region of the plants. Few of realistic precautions in this direction include technological improvement for example the technological advancement of its electrical precipitators (electric filters) which has resulted in the lessening of polluted discharge from the company.( Greer, Johnson, Morton, Raught and Steuch, 2004, 750) Moreover, Meteorology and Environmental Protection Administration (MEPA) closely observes the filters and stacks used by the company. Another environment friendly feature is the latest use of recyclable packing paper sacks in place of plastic sacks within the company. Hence, protection of Climate is one amongst the most important targets of Yamama’s sustainability strategy. Yamama has shown an extremely positive attitude and honest corporate dealing regarding climate protection. (Yamama Cement Website, 2010) In its agenda for improving climate of its surrounding, it has involved its management systems, sustainability, various upcoming challenges of energy, acquiring alternative of energies, security, and ecological supervision, together with efforts of its employees and entire community to bring an optimistic difference. (Cangiano, Castaldi, Costa and Tognon, 2003, 26) These efforts towards climate improvement are good for all the company, climate and the end users. The company may continue its journey to success positively with public opinions if the dealings and strategies towards climate improvement remain effective and professional, and if they are handled in a thoughtful way. Fuels and raw materials There are two varieties of cement that are produced by the company. Type 1 cement or Ordinary Portland Cement and Type 5 cement or Sulfate Resistant Cement. Moreover, the Company provides facility of producing any other type of cement on request. The company prepares the sacks that are utilized in the packaging of cement produced at the plant. Yamama holds a great privilege about the availability of raw materials, predominantly limestone. According to experts of the field, it is responsibility of a business to ensure obedience of laws, ethical standards, and international norms. However, if some organisation decides to follow Milton Friedman’s theory that main objective of an organisation should be to create maximum profits and social responsibilities should only be carried out by citizens, corporations are not supposed to look after society as a whole, they should never expect a positive attitude from citizens too. (Tom Bower, 2010) Yamama’s site of plant holds rich quantities of superior quality limestone underneath. It is a huge benefit for the company to possess its own quarries (above all limestone quarries) that gives raw materials of superior quality with elevated levels of purity. Such type of fine quality limestone is very rare to find in other regions of the country. Due to this, the cement produced by Yamama is considered to be matchless in a number of ways, particularly with regards to its compressive potency and the little amount of alkalis present in it. (Mehta, 2006, 60) Hence, the site is being mined in order to get the raw material and the supply is estimated to continue for several upcoming decades and bring benefits to the company. Not just that, but several other varieties of raw materials are also found in close distance from the site of factory. Health and Safety at Work The social and economic costs associated with work-related injury, disease and death are exorbitant. (Huhta, 2008, 32) The social costs are felt most keenly by those directly affected and their families. In the case of workers of cement factory, this may include permanent disability, ongoing pain and suffering, and loss of employment and employment prospects; for families, it is hard to imagine anything more distressing than a loved one being killed or permanently injured as a result of work. The economic costs involved are also substantial and impose an unnecessary drain on the national economy. The epidemic nature of work-related injury suggests that compliance - adherence with laws - may be a lot less than it could be, particularly as most injuries are preventable where safe systems of work are adopted and effectively managed. While many employers take their legal responsibilities to manage work-related hazards very seriously, it is apparent that many do not - either through a lack of application or because they believe that non-compliance will go undetected. The actual level of compliance, however, is unclear due to the absence of data which could be used not only to understand current levels of compliance, but also to provide a baseline in order to gauge changes over time. This deficiency is all the more remarkable in view of the staggering social and economic costs involved. However, Yamama has always been extremely considerate when it comes to employees’ health and safety. Regular medical check ups, consistent availability of safety masks, assurance of employment are included in some of the positive feedbacks taken from the employees of Yamama. In the eyes of its employees Yamama Cement is now be viewed as an organisation that puts health and safety of its employees and planet above their profit margin and this type of positive feedback take years for a company to maintain. According to experts of the field, Social responsibility involves human, fiscal and environmental responsibility all. (Gilis, 2010) This theory helps an organisation to prosper due to positive feedback from its employees and later customers. Prior investigations into the company’s background show a history of extreme responsibility by management. When management is found doing all good for their employee's, it always brings good news for the organisation. These points towards Corporate Social Responsibility for not just being a public relation exercise but to be real strategic change. Management must develop the mindset of their workforce through their actions as well as their words to help facilitate and maintain a productive and safe work environment. Emissions Reduction A carbon footprint can be defined as "the amount of greenhouse gases (GHG) that is released from an organization, at a particular event or from a product or an individual". There are various tests that can be used to calculate Carbon footprint of a company. After calculating the total amount of carbon footprint, an organization can acquire a strategy in order to reduce this amount of GHG emission. (Price, Phylipsen, Sinton, Worrell, 2000) This can be achieved by technological advancements, improved services, product management, altering carbon capture, Green Public or Private Procurement (GPP), utilisation strategies etc. With in cement industry, CO2 emissions occur due to the calcinations of limestone and incineration of fossil fuels. One more cause of carbon dioxide emission is the electricity that is produced out of fossil fuels. Both the burning of fossil fuels and calcinations of limestone takes part equally in the emission of carbon dioxide. Little is released due to various equipments and vehicles for transportation of cement for the company. Existing figures for these emissions indicate the presumed clinker production and do not count on emissions because of energy utilization. Such types of emissions are included in the approximations for emissions due to energy use, and not due to cement production. Along with the expanding activities of construction and real estate, the Saudi Arab has experienced the emergence of fresh foreign players within the industry. Hence, there are great chances of an increase in the competition amongst existing manufacturers of cement in upcoming future. As a result, several environmental issues may arise due to huge amounts of carbon dioxide emissions, can also potentially affect the Saudi Cement Industry. For Yamama the diminution of emissions of carbon dioxide (CO2) in the environment is one of its most crucial climate protection activities. Yamama is committed to decrease its average CO2 emissions by half by 2015. This is to be achieved by acquiring better energy efficiency, the upgrading of units and a preference of alternative fuels. Yamama Cement has proved to have a professionally mature and ethical attitude towards emission reduction within organisation. According to a survey, Yamama has established it self as the solution instead of the problem. First thing that the company exhibits is to take ownership and responsibility. (Folsberg, 2004, 24) The second thing Yamama exhibits is to handle the problems, like emissions, instead of trying to cover up their problems. The third good thing about the company is, they possess agenda to develop a plan and reduce harmful emissions. Currently, people's livelihoods are suffering because of presence of all sorts of gases within the environment, and Yamama is making effort to make sure that these environments are made as freer from pollutants as possible. Local Impact Management of Yamama regularly checks standards and they mainly emphasize on improving its impact on people, employees and stakeholders. They show great degree of customer care and social responsibility.( Hargreaves, 2009) At the moment, Yamama's top management is asking Saudi Government to reconsider its order for banning cement export since 2008. From the very beginning, the company has shown great interest towards its surrounding community. Yamama has exhibited a great concern for the welfare of its surrounding. It has gained enormous amount of people's attention by hiring majority of local citizens and gave them an opportunity to learn about most modern technologies of the industry. Company has also maintained an improved local impact by making efforts to keep cement prices low and giving people an option to buy cement directly from the company. Moreover, company is also known for giving away cash and cement to some religious and charity organisations. The values of the organisation are the backbone of the companies' behavior and communication during a crisis. Yamama Cement stands firm against any environmental damages. The company ensures all the employees are involved with the concept of saving environment and its importance. The trick is to recognise a problem before it reaches crisis proportions. These things prepare an organisation for other unanticipated dilemmas. By compiling record on yearly basis, Yamama assesses its capabilities of handling any environmental disaster and implements changes if needed. Experts explained corporate social responsibility as to give advantage to consumers as compared to other competitors and make profits out of it. This theory sounds attractive too when viewed from point of view of reputation and popularity among population. When faced with situations that may jeopardize a project the last thing management should do is accept or do anything that may present a safety hazard or reflect badly on the company's reputation. The negative effects of oversights can be seen by the damage to the environment but also become evident when affects the internal structure of the company. Successful businesses possess certain characteristics and share common attitudes, including commitment, perseverance, a tolerance for risk, customer and employee care and a high level of integrity and reliability (Timmons, 1994: 24). Say (1971: 330) argues that success in any business requires qualities such as "judgment, perseverance and knowledge of the world as well as of business". To persevere is to "continue in a course of action in spite of difficulty or with little or no indication of success" (Concise Oxford English Dictionary, 2004: 1069). Yamama Cement Company is persistent and determined to succeed, and they continually seek solutions to the obstacles that inevitably arise (Tracy, 2005). To be successful, Yamama must maintain the strength of mind needed to persevere through the difficult times (Pierce, 2003). Lottery and sweepstakes winners become instant millionaires; but lots of businesses do not. For the vast majority of businesses it takes 10 to 20 years or more to become successful (Timmons, 1994: 653). Howard Schultz, CEO of Starbucks (the ubiquitous retail chain that sells coffee beverages, beans and accessories), believes that in order to be successful in business, "You have to have a great tolerance for pain! You have to work so hard and have so much enthusiasm for one thing that most other things in your life have to be sacrificed" (Smith, 1998). According to Shuman (1999), starting and managing a successful firm require a huge emotional commitment, and perseverance is important for successful self-employment. Surviving the inevitable disappointments and near disasters one encounters on the rough road to success takes a passion for the business. If there is no excitement about the business, it should not be pursued (Edwards and Edwards, 1999). Concrete Recycling Cement is known for being the most crucial material for construction all over the world. Cement is mainly used in the preparation of concrete, which is formed when gravel, sand, crushed stones and cement are mixed together in a predetermined ratio. Concrete recycling is seen as a beneficial choice for being environmental friendly, acceptable by environmental laws, and able to keep construction prices down. Improvements not significantly increasing companies bottom-line are viewed as a poor investment decision when in fact they may improve efficiency. Such capital expenditures are best measured with a scorecard approach which reflects "cause and effect" relationships. Yamama possesses most modern methods of Concrete Recycling, which is a widespread procedure of making use of left over concrete after renovation or demolishing of concrete made structures. In the past, rubble of concrete used to get disposed off after its first utilization. However, due to its enormous amount of benefits concrete recycling is seen as an advantageous choice for maintaining lower costs of construction. (Greer, Johnson, Morton, Raught and Steuch, 2004, 750) After collecting used concrete from the site of demolition, it is passed through a crushing procedure. Nevertheless, crushing machine only accept concrete which is free from side particles like dirt, paper and wood particles etc. Some metal like rebar are removed from concrete with the help of magnets and used for other construction purposes. Water flotation or hand picking are also used to remove other particles from concrete. Every organisation needs to use every available resource in order to meet human requirements at the same time as preserving the environment. (Bob Cavnar, 2010) By doing so they will not only fulfil requirements for existing citizens but will also care for generations to come. A company's success is determined by the strength of its leaders so it goes without saying that the success of a company's leaders depends on how well they motivate they motivate and influence their employee's. (Bower, 2010) In conclusion, the efficient ways of manageing environment issues have proved to make Yamama top of the list in most prominent cement companies. In order to get end user trust, the company still needs to improve and implement effective strategies towards corporate social responsibility. And then Yamama Cement can make its way far quicker to more success in near future. It is of vital importance for any corporation to implement environment friendly acts. It is of vital importance for its management and employees to continue to bring latest technologies for even further environment friendly technologies in order to maintain company’s reputation. References Cahn, D. Greer, W. and Moir R. (2003) ‘ Atmospheric C02 and the US cement industry’. World Cement, Pg. 64-68. 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(2008) ‘Operating costs of U.S. cement plants’. Rock Prod. Pg 30-34. Marland, G, Boden, T, Brenkert, A. (2006) Global CO2 Emissions from Fossil Fuel Burning, Cement Manufacture, and Gas Flaring, 1751-1995. Oak Ridge. Mehta, S. (2006) ‘Present and Future Energy Use of Energy in the Cement and Concrete Industries’ Pg 56- 70. Price L, Phylipsen D, Sinton J, Worrell E. 2000. Energy Use and Carbon Dioxide Emissions in the Cement Industry in Key Developing Countries. Berkeley, CA: Lawrence Berkeley Natl. Lab. In press Sinton, J. (2005) ‘Energy efficiency in Chinese industry: positive and negative influences of economic systems reforms’. PhD thesis. Pg 450. World Business Council for Sustainable Development (WBCS). “Cement Sustainability Initiative (CSI)”. http://www.wbcsdcement.org/. [Accessed November 1, 2010] Yamama Cement. http://www.yamamacement.com.sa/english/e-home.php. [Accessed November 1, 2010] Read More