Measuring Sustainability in a Service Organization - the Abu Dhabi National Oil Company - Case Study Example

Measuring Sustainability in a Service Organization Name Institutional affiliation Introduction Introduction to the organizations The study was conducted in three different organizations; The Abu Dhabi National Oil Company (ADNOC), Department of Presidential Affairs and Abu Dhabi Municipality. ADNOC is the UAE’s state owned oil company and ranks among the top four oil companies in the world. The company was founded in 1973 and distributes and markets petroleum products as well as service both locally and internationally. The Department of Presidential Affairs, on the other hand, is a ministry in UAE’s government and is tasked with delivering a number of services that range from awarding scholarships to bright students as well as grants and other forms of aid. The Abu Dhabi Municipality on the other hand is tasked with providing the residents of Abu Dhabi with quality services. It was established in 1962 and the services it provides include provision of high quality amenities such as roads, bridges and buildings and coming up with policies that seek to improve the quality of life of the city’s residents. Introduction to the Area of Research: "Measuring Sustainability in a Service Organization" Sustainability has over the recent years become an integral part of many organizations as well as businesses. Organizations integrate sustainability concepts into their operations in order to ensure that a better community is created for both the current and future generations. In addition to that, sustainable service delivery helps improve an organization’s bottom line. The triple bottom line defines sustainability in most organizations. The three main areas where organizational sustainability focusses on are environmental performance, economic performance and social performance. Not only should an organization work towards ensuring the people within and around it prosper economically, it should also find ways of giving back to the society. In addition to that, they should work towards reducing their impact on the environment. Sustainability within an organization can be created only when the leaders within it change their thinking, tackle economic myths as well as take up a holistic and systematic view . The following analyses and measures sustainability in three service organizations, namely the Abu Dhabi National Oil Company (ADNOC), Department of Presidential Affairs and Abu Dhabi Municipality. Sumarry of Articles As stated earlier, organizational sustainability has become an important concept in the past years. Environmental as well as economic concerns are making most companies and organizations re-look at the way the produce goods and deliver services. Pillania (2012) studies what the future holds for Indian top companies in the areas of green management and sustainability. He points out that major companies in India are recognizing the importance of a sustainable environment and are making plans to ensure that they are in line with future green management and sustainability. Pillana states that sustainability has over the past years become an integral part of production processes as companies try to resolve the long conflict that has pitted economic production and the environment. His studies found out that most companies are making efforts to become environmentally sustainable, but those that do not pollute the environment have no future plans for green management and sustainability. Environmental sustainability also has an impact on food production. Sarkar and Mondal (2012) study how population growth and food sustainability affect each other. They also point out various factors that have influenced food sustainability. The factors include slow growth of agriculture as well as the growth of population that has resulted to reduced cultivation areas. The increased population not only reduces the available cultivatable land, but it also results to increased food demand. Sarkar and Mondal conclude that there is an urgent need to improve the food production levels. Sharma and Shardendu (2011) look at agricultural sustainability in rural India. They point out that sustainability in agriculture involves ecological, economic and social sustainability. They state that agriculture is the most important sector of most developing nations and that sustainability is also a core issue in the modern world of agriculture. They point out that a large population of Indian youths depends on agriculture as a source of income and food. Population growth and food security are also discussed by Sharma and Shardendu and they point out that population pressure as well as poor agricultural practices are some of the factors that have negatively influenced agricultural sustainability. Gundimeda and Shyamsundar (2012) discuss sustainability, forests and poverty in India point how over the past 20 years the poverty levels have gone down and life expectancy has increased. This has in turn led to increased population levels and production activities that have negatively impacted the environment. They also point out that water contamination has become a serious issues and that many people have died as a result of water borne diseases. His study point out that sustainable production in India has led to a slight increase in the areas under forests. However, they point out that the slight increase fails to capture the real situation on the ground where forested areas are continuously being degraded. Pillania (2012) argues that businesses are traditionally viewed as having disregarded environmental sustainability and operate on the philosophy that pollution pays while prevention of pollution does not. Organizational sustainability has come about as a result of continued environmental degradation as well as the knowledge that businesses can play an important role in ensuring that the environment returns to its original state. Pillainia studies why organizations are engaging in environmental sustainability projects and how their participation is impacting their performance. He concludes that the reasons include the need to comply with policies, competitive advantage, carbon credit as well as responsible corporate citizen. He points out that the impact on performance varied from one sector to another. Wanjari et al (2004) look at the sustainability of intensive cultivation systems in India. They state that variation in crop productivity has been evident in experiments conducted in various regions across India using intensive cropping systems. Their study showed that application of fertilizers proved that the systems could be sustained. They conclude that the soil yield index could be used to accurately forecast the minimum achievable yield. Vraghese (2000) investigate the sustainability of intercropping as a cultivation method. She uses a number of sustainability indices such as yield, growth attributes, soil fertility changes and net return analysis. She argues that crop yield comes about as a result of various components interacting. The components include soil type, crop variety, climate as well as crop management and how effective it is. She also acknowledges the fact that increase in population sizes has placed more pressure on land thus necessitating the use and adoption of a variety of cultivation methods in order to ensure yields are maintained and land is used efficiently. Brett-Crowther (2011), on the other hand, looks at the sustainability and creation of an ecological overview. He starts by pointing the nature of modern cities and how many people in India opt to be poor in the city as opposed to being poor in the villages. He argues that there are two fundamental concepts that support sustainability, Continuous production and the knowledge that markets relay on agricultural surplus. He points out that a green city would require an open space as well as environmental friendly transportation systems, recycling of used products and well-designed buildings. Research Methodology This study explored the sustainability practices of three service organizations that include the Abu Dhabi National Oil Company (ADNOC), Department of Presidential Affairs and Abu Dhabi Municipality. The organizations were randomly selected but the main factor considered was the fact that the selected organization should be a service industry. The research looked at each organization’s general information, management practices, social responsibility and risk management. In addition to that, customer management, supplier management, environmental performance, economic performance as well as operational performance were analyzed. This study relays on a number of research questions which include; What sustainable procedures do the organizations apply? What impact has the sustainable procedures had on the organization? Data Collection Both primary and secondary sources were utilized in this study. To respond to the research questions secondary data was used. This includes raw data and published works in the area of study. Secondary data collection methods were used to collect secondary data. Secondary sources of information utilized included Journals, magazines and newspapers. After finding and going through the secondary data, it was be evaluated by setting up the data set variables together with their definitions and explanation of each variable. The data set variables were then used to place all the collected data in a graphical form. This enabled comparisons and the final decision to be made much earlier will. Additionally, it will give the findings a better general context. Saunders and Philip argue that secondary data is able to provide a conceptual and comparative data, which in turn makes it possible to triangulate our finding. The study also utilized qualitative data method to answer the research questions. Qualitative data was collected and analyzed in order to develop an appropriate theory. The sampling strategies utilized include judgmental, convenience and quota sampling. The researcher was able to utilize questionnaires that were distributed to various staff members starting from junior management officers to top management. The questionnaire is self-administering and takes about 15 minutes to complete. The questionnaire did not limit any respondent on the basis of time and came with all the necessary instructions to the respondents. Analysis Four areas were to be filled out with regard to management practices. The first statement was that senior and middle managers are committed towards sustainable supply chain practices. The second one was that organization management system is in compliance with applicable environmental laws and regulations while the third one was that sustainable policies, practices, and expectations are communicated to all employees and suppliers in local or appropriate languages. Lastly, the interviewees were required to respond to the statement that employees are trained on relevant sustainable targets. The following graph shows the distribution of the responses. On social responsibility, the interviewees were to respond to three statements; The organization has a written corporate responsibility policy or statement of commitment that defines its approach to social responsibility standards The organization has a management system in place, or is it developing one, to maintain relations with community stakeholders The organization performance management system is in compliance with applicable social laws and regulation The following graph summarizes the final analysis of the responses On risk management, respondents had to react to the following; The organization has got written procedures for the safe storage, use, and disposal of each hazardous material in language(s) workers understand The organization has a written emergency response plan and fire evacuation procedure The organization frequently conducts an emergency drill The organization has got well-stocked, unlocked first aid stations at every different site Analysis of the responds is given in the following graph On environmental performance, the following was asked; Sustainable practices improve organizational compliance to environmental standards Sustainable practices significantly reduce energy consumption Sustainable practices significantly reduce consumption for hazardous /toxic materials The analysis of the responds is shown below On economic performance, the questionnaire required the interviewees to react to the following; Sustainable practices significantly improve sales and market share Sustainable practices bring significant reduction in waste and its disposal cost Sustainable practices significantly improve resources-management-efficiency Analysis of the responds is shown below The study also found out that sustainable practices led to improved efficiency in resource management. A number of reasons were pointed out as the reasons why the organizations engaged in sustainable practices. They include compliance with the policies and laws in place, the need to show corporate responsibility and the need to have a competitive advantage. Future Research Directions This paper tried to analyze what the future holds in sustainability within service organizations. Only three companies were analyzed but future studies should give a wider and in-depth analysis of the impact of sustainable organization. Recommendations It is recommended that Organizations incorporate sustainability plans in their long-term strategies. Not only does sustainability increase efficiency, but it also ensures productivity is maintained Governments should ensure that the right polices and laws that would ensure continued sustainability are in place. Employees within organizations need to be trained and informed on the importance of sustainability. Programs aimed at sustainable production can only succeed if the employees are fully involved and in agreement with the programs. Conclusion The paper pointed out that Organizations integrate sustainability concepts into their operations in order to ensure that a better community is created for both the current and future generations. The main areas where organizational sustainability focusses on include environmental performance, economic performance and social performance. A number of studies have been conducted into sustainability in a number of sectors. This shows how the concept has become important in the modern world. Researches have been able to note various reasons why organizations chose to incorporate sustainability concepts into their production and the impact it has had. This paper analyzed three organizations, namely The Abu Dhabi National Oil Company (ADNOC), Department of Presidential Affairs and Abu Dhabi Municipality. References Brett-Crowther, M. (2011). The green city: ideal and necessity. International Journal Of Environmental Studies, 68 (5), pp. 737--749. Gundimeda, H. & Shyamsundar, P. (2012). Forests, sustainability and poverty in India. Environment And Development Economics, 17 (03), pp. 373--378. Pillania, R. K. (2012). The future of green managemnt and sustainability in India. 3 (1(5)), pp. 1-9. Pillania, R. K. (2012). Why & performance impact of green management & sustainability in India. Journal Of Advances Research In Management, 3 (1(5)), pp. 46-58. SARKAR, S. & MONDAL, K. (2012). Spatial – Temporal Variation of Population Growth and Sustainability of Food Grain Production in West Bengal, India. Journal Of Settlements And Spatial Planning, 3 (1), pp. 35-42. Sharma, D. & Shardendu, S. (2011). Assessing farm-level agricultural sustainability over a 60-year period in rural eastern India. The Environmentalist, 31 (3), pp. 325--337. Varghese, L. (2000). Indicators of production sustainability in intercropped vegetable farming on montmorillonitic soils in India. Journal Of Sustainable Agriculture, 16 (4), pp. 5--17. Wanjari, R., Singh, M. & Ghosh, P. (2004). Sustainable yield index: an approach to evaluate the sustainability of long-term intensive cropping systems in India. Journal Of Sustainable Agriculture, 24 (4), pp. 39--56. Read More