SUSTAINABILITY MANAGEMENT AMONG ENTERPRISES IN UNITED KINGDOM AND SAUDI ARABIA.

Author:Medabesh, Ali
 
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INTRODUCTION

Over the last decade, the concern over global carbon footprint and climate changes has increased manifold, and discussions about greenhouse gases are all omnipresent from general public, to corporate boardrooms to political parties. In February 2005, the Kyoto Protocol was introduced to obligate the industrialized nations for the stabilization of greenhouse gas (GHG) emissions. This protocol was not only disapproved by the industrialized nations, but was also perceived to be inadequate to resolve the issue on global warming. The United Nation's climate change conference at Cancun (29th November 2010 to 10th December 2010) had to face threats from the Latin American countries which decided to boycott the conference, in the absence of the negotiating text, on the commitment by rich countries for setting new targets for the forthcoming (2012) Kyoto agreement which has to be prepared and endorsed at the conference (Lavanya, 2011; Streck, 2011). There is a common notion with the developing countries that industrialized countries should have much more strictly regulated targets to reduce the emissions on the greenhouse gas. However, the organizational level policies on emission are diversified across the globe (Pinkse & Kolk, 2007). Being the most significant contributors of greenhouse gas emissions, the established corporations have a greater responsibility of minimizing the progression of global warming. As discussed on the outline of the study, this paper focuses to research on the prevalence of the sustainable measures in UK and Saudi Arabian enterprises including manufacturing and service industries with a predominant focus on the outcome of company's performances after implementing those measures. The resear ch paper initiates with a focus of discovering the sustainability concept evolution and the worldwide dimensions of the fibers and issues associated with the sustainability. Following this, there are descriptions pertaining to the adopted research methodology, selected as case study for the research's purpose. An evaluation on the measures of sustainability in specific case countries and the outcome on the measures implemented are also discussed. Thereafter, the challenges and the associated contingencies associated with the implementation of policies with respect to sustainability. The conclusion section includes future directions of the research.

Objective of the Study

The core objective of executing this academic research is to comprehend the sustainability practices in United Kingdom and Saudi Arabian Enterprises. The research also explores the evolution and concepts of sustainability and carbon emission practices in the countries mentioned above. The report highlights recent policies for sustainability development for the enterprises and analyzes current laws and policies pertaining to the countries. Further the report illustrates previous empirical studies on carbon emission and sustainability development practices in the United Kingdom and Saudi Arabian Enterprises. The report also identifies the barriers and challenges involved in the sustainability practices.

REVIEW LITERATURE

It is rather challenging to measure or formulate with the term "sustainability" despite being simple to possibly comprehend it. The origination of the concept dates back to 1970, however the UN Commission on Environment and Development (Brundtland Report) defined it in 1980 (World Commission on Environment and Development, 1987). This report states ("Development which meets the needs of the present without compromising the ability of future generations to meet their needs") the definition of sustainable development as, the ability to fulfill the current requirements without depriving or exhausting the abilities required for future generation's requirements. The rationale behind the investigation instructed to the Commission as stated (Labuschagne et al., 2005) was for issues pertaining to resource distribution, global inequality, impacts of the global population and the recommended solutions to resolve these concerns.

The significance of the association between the ecosystem health and sustenance of human wellbeing is well expressed from this concept (Abrecht & Birch, 1978; IUCN, 1980). The main theme is that the activities associated for the welfare of the human well-being should not be acquired at the expense of exploiting the social and ecological process on which they depend. As on one hand the properties of macro-scale system of nature and people are described by the concept, it was thought provoking on the manner in which it can be simplified to attain sustainable development which is reasonable for the private enterprises that were smaller social units. A formal organization that functions through its earned income is known to be an enterprise. It was discussed by Figge & Hahn (2004) on the application of the concept to static view or closed systems to enterprises, the dynamic view or the open systems converges at the contribution of the organizations towards the sustainable development of wider section of the society. It is found the latter to be much more useful interpretation due to the recognition that exists for the enterprises within the dynamic milieu of formal and informal institutions or organizations and also individuals, such that the reflection of the concept is applicable at the level of enterprises. Therefore, as mentioned by Atkinson (2000) and Parrish (2007) a favorable sustainability-driven enterprise would be able to substantiate itself as well as contribute to the development of the social-ecological system of which it belongs.

The sustainability concept is much more questionable from a firm's perspective. With respect to a business view point, the sustainability concept is linked with the aspects of innovation, competitiveness, marketing of companies. Involving all these aspects an organization will be able to differentiate it and also progress with the economic performance from its competitors.

Sustainability Assessment Framework

A number of sustainability assessment methodologies have been implemented to measure the company's performance (Ramachandran, 2000). The Global R eporting Initiative (GRI, 2002a & b), development of standards (OECD, 2002) and World Business Council for Sustainable Development (WBCSD, 1997) promote sustainability management in companies. A systematic standard of sustainability indicators was developed by Krajnc & Glavic (2005) for companies to cover all major aspects of sustainability management. In current scenario composite indicators are increasingly gaining attention to criticize and assess the performance of countries over economy, environment, technology or society development and act as a tool for public communication (Indicators, 2005). Meadows (1998) states that "Indicators arise from values (we measure what we care about), and they create values (we care about what we measure)". Indicators are widely accepted and implemented by many countries due to its ability to simplify the complexities of dynamic environment and enables efficient sustainability management (Godfrey & Todd, 2001). Indicators conceptualizes phenomena and recognizes trends and hotspots, thereby it simplifies the quantifying process and communicates the complicated data (Warhurst, 2002). Bebbington et al. (2007) suggested that there is an urgent need for organizations, societies and individuals for the identification of metrics, tools and models to evaluate the unsustainable activities. They posed two questions regarding the evaluating procedures of sustainability: "How can today's operational systems for monitoring and reporting on environmental and social conditions be integrated or extended to provide more useful guidance for efforts to navigate a transition towards sustainability? How can today's relatively independent activities of research planning, monitoring, assessment and decision support be better integrated into systems for adaptive management and societal learning?" Ness et al. (2007) suggested that the main aim of sustainability assessment is to enable policy and decision-makers to assess the international and domestic nature-society systems in the context of short and long term perspectives and identify the actions to promote sustainable society. Eventually the sustainability implementation drivers are supported by personal and organizational values including organizational culture and personal interest whereas the main inhibiting factors are the lack of resources originating from organizational inertness (Kiesnere et al., 2019).

Sustainability: Policies and laws (UK and Saudi Arabia)

In Saudi Arabia's C[O.sub.2] emission per unit of GDP from cement production and fossil fuels reached 7% from 2000-2011. As compared to Saudi Arabia CO2 emission per unit of GDP from cement production and fossil fuels in United Kingdom is decreased. It is necessary to understand the methods and techniques adopted by transition countries to implement successful sustainability measures. Even though several international standards for climate change outcomes are present (carbon intensity data or emissions), still now international standards for comparing climate change policies and measures were not developed. It varies across a wide range of countries. Therefore, to overcome this issue, the Climate Laws, Institutions and Measures (CLIM) were constructed as a global comparative index. According to this report, the UK ranked first with CLIMI score of 0.801 while Saudi ranked 90 with the score of 0.023 (Steves et al., 2011; Dolsak, 2009). Moreover, the average power generation efficiency of UK is 38.6% (Electricity and Cogeneration Regulatory Authority, 2009). According to the Government of Saudi...

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