This paper has discussed the general environmental crisis and highlighted both the motivations and barriers and motivations facing small and medium-sized businesses when implementing sustainable practices. In particular, the efforts of Winkler Partners to create an environmentally friendly culture and implement specific sustainable initiatives have been described and
documented.
SECTION ONE: THE CULTURAL SPHERE:
An assessment of WP’s corporate culture and perceptions of employees in response to the new sustainable framework.
Winkler Partners has recognized and taken a proactive approach to the environmental mega-trend and the firm has been successful in infusing environmental ideas into company culture and practices. A strongly motivated and supportive management team has been likely been key in this success. This study has documented increased awareness of environmental issues by employees and a significant measure of support and participation. All of these indicators bode well for overcoming of obstacles as more ambitious projects are implemented. These results are also impressive considering that Winkler Partners had no overall strategy for the promotion and dissemination of cultural objectives. There were, however, some strong comments among the survey responses that indicate minor levels of dissatisfaction, a fact that should be taken into consideration moving forward.
SECTION TWO: THE PHYSICAL SPHERE
An assessment of sustainability initiatives at WP using quantitative metrics and an analysis of whether the firm has implemented the ideals of the sustainable framework.
This paper covers the beginning phase of the drive for sustainability at WP. To date, most of the initiatives have been fairly simple and easy to implement, a strategy that the extant literature suggests is effective for new sustainability programs. In light of this, the improvements in energy and resource use are significant. However, it may mean that future efforts will be more difficult to implement and require more significant capital outlays. It should be noted, however, that during the period covered (2004-2006), there were no significant changes in office facilities and equipment and that the number of staff fluctuated minimally, from 51 to 46 employees. Also, the savings in energy and resource use during the same period are further emphasized by the fact that WP’s billed revenue increased by 45% from 2004-2006. Therefore, this shows that, to a certain degree, revenue has been decoupled from resource use. Finally, Winkler Partners results are significant given the lack of government regulations or initiatives in this for sustainable programs in Taiwan.
Winkler Partners has collected significant data on its resource use, set benchmarks on which data can be measured, and instituted a reliable set of metrics to quantify its efforts. Furthermore, the firm has concentrated on data that is easily measured and comprehended. Overall, fairly
significant savings were noted in water and electricity, while total gas use has risen since 2004.
WP currently uses several of the environmental performance indicators recommended by Henri and Giasson (2006), however, a modification of its system of metrics to include an overall impact measurement is recommended below.
The cost savings realized by WP to date have not been significant but should continue to increase
over time. The uncertainty over future resource costs also complicates the equation. If the predictions of scientists and environmentalists bear out, the costs for water, gas and electricity could rise significantly in the future, at which point a 40, 60, or 80% reduction in the amount resource use could mean significant financial savings. Overall, economic benefits are most effectively measured over the long term.
SECTION THREE: RECOMMENDATIONS
Recommendations for improvement and proposed revisions to the framework to reflect reality and meet sustainable goals.
Given WP’s success in the cultural sphere, it is recommended that sustainability initiatives be continued in a moderate yet constant matter in order to maintain employee support. It is believed that by taking a measured long-term approach, WP will be able to continue to make progress towards its goals and at the same time, increase employees’ awareness and support for these programs. The use of metrics to show progress and continued educational efforts on
environmental matters (at moderate levels) will likely be helpful in this regard. Overall,
employees at the firm perceive that there has been progress towards sustainability goals and that initiatives have had a positive impact on their work environment. However, concerns raised in the survey (some disruption of work, lack of focus on the core legal business) should be taken seriously to avoid any erosion of support.
In the physical sphere, WP has collected some worthwhile data. Some modifications, however, could provide a more complete picture. The extant literature shows that metrics should reflect the entirety of business activities as much as possible and, therefore, revisions to the system of metrics are proposed as follows:
An Overall Impact Metric
To reflect the total impact of business activities, an overall carbon footprint should be calculated.
This is a universally used measurement and all current data can be easily converted into
measures of carbon. This will not only keep track of overall progress but will ensure that gains in one area are not offset by losses in another and would also allow for comparison with other firms or businesses. This overall impact metric should also include rough estimations for transportation.
To this end, the firm is currently collecting data on carbon emissions incurred through commuting and for flights related to business. To maintain simplicity, rough calculations can serve as a baseline and added to the overall carbon footprint of the company.
Revisions to Waste Management Metrics
Although WP’s waste management and recycling programs have been in place for some time, the firm has only recently begun to measure waste volume. The current metrics, however, do not assess the total material flows for the business. Ideally, total material use and waste should decrease over time. Total recycled materials, in turn, should also decrease. However, the
percentage of total waste that is recycled should rise. A measurement should also be available for total non-recyclable waste (waste that goes to landfill). With proper waste management statistics, more accurate assessment can be made as to whether profits have been decoupled from resource use.
Carbon Offsets
As WP’s efforts in the environmental sphere continue to grow, there may be instances, such as the creation of the rooftop gardens, which actually decrease the total carbon impact of the firm. A measurement of these offsets should also be included in the total calculation to ensure greater accuracy of records.
Recommendations to other SME’s
This study hopes to highlight the need for a proactive approach to environmental sustainability.
For other small to medium-sized businesses seeking to implement a sustainable business model, they must first gain an understanding of the motivations for their program (internal or external) and anticipate future barriers (financial, social, technical regulatory etc.). Once firm goals are set, initial efforts should focus on programs that are easy to implement. A continual moderate
approach combined can with educational programs on general environmental problems and firm-specific issues can help build a culture of sustainability and galvanize support. Results should be measured with a system of metrics that is both comprehensive and easy to understand and those results should be shared with employees to increase motivation. Furthermore,
employee attitudes should be monitored to ensure continued support for new initiatives.
SECTION FOUR: DIFFICULTIES AND LIMITATIONS
Some staff members intimately involved in the greening process at WP have noted that the general environment in Taiwan creates significant obstacles to their efforts. First, the
environmental ethic does not seem to be strongly ingrained in Taiwanese society. Therefore, as in Hong Kong, green initiatives often center around compliance. To create a broader and more significant impact on the environment, government leadership is sorely needed. Clear regulations would be beneficial in helping SME’s focus their efforts and set targets for conservation. This coupled with a series of incentive programs for companies that meet targets and to offset capital outlays for conservation projects would provide greater motivation for companies to implement sustainable measures. Currently, there are few government initiatives supporting sustainable programs, even for proactive SME’s like WP. For example, an application to obtain government subsidies for its rooftop garden project was rejected. Efforts are still underway to obtain some
financial assistance for its “green” investments.
WP staff noted that research into sustainable practices can be difficult in Taiwan and that many environmentally friendly products or alternatives are simply not available. One example is the use of environmentally-friendly toner for printers and copiers. While the toner is available, the companies that rent the printers do not have compatible models or are unwilling to accommodate the firm’s request. Another example is the firm’s carpeting. While the WP was able to purchase environmentally friendly carpeting from Interface Inc., Interface’s recycling efforts do not extend to Taiwan. Therefore, under present circumstances, if the carpet were removed it would end up in landfill.
The initial condition of the building in which WP has its offices also poses significant challenges, namely centering around the fact that it was not built using “green principles”. There is also a lack of support from owners of the building. The rooftop garden plan was scaled down considerably due to protests from the owners.
SECTION FIVE: FROM “SUSTAINABLE” TO “RESTORATIVE”
Moving forward, Winkler Partners has aspirations beyond just sustainability. As proposed by Anderson (1997), companies should strive to move from a “sustainable” to a “restorative”
business model. This is more of a deep ecology perspective and encompasses an actual overall benefit not only to the firm’s customers and clients but also to the natural world and society in general. It is a long-term goal and entails efforts to make up for previous ecological damage through programs such as carbon offsets and ecological recovery campaigns. In essence, a restorative model is an extension beyond the sustainable framework. Ray Anderson’s Interface
has incorporated this ideal into its company mission statement.
“We will honor the places where we do business by endeavoring to become the first name in industrial ecology, a corporation that cherishes nature and restores the environment.
Interface will lead by example and validate by results, including profits, leaving the world a better place than when we began, and we will be restorative through the power of our influence in the world."42
While this is not a necessary element for the sustainable framework, WP is involved in several projects that embody this concept, specifically the firm’s legal defense fund, Wild at Heart. WP gives 3% of its earnings to the association, which currently employs nine people working on various environmental and social issues (see Appendix VII). Other plans involve carbon offsetting through its 12th floor and rooftop gardens and perhaps participation in ecological reclamation projects (e.g. tree planting/ naturalization). WP also continues to work with various community and social groups to encourage “green” practices.
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