- 2012/05/21Innovation and Social Responsibility (part 2)
Innovation and Social Responsibility
by Mr. Justin J.Y. Lin – an assistant professor of Industrial Engineering and Management Department of Chaoyang University of Technology and consultant of Taiwan Woodworking Machinery Association.
Overall Strategy of Lasting Innovation for All Mankind Environmental and Social
Innovation has caused a large number of products, automation manufacturing in order to meet our needs and variety of marketing promotion. Mass production automation will happen to the two possible states: one is everyone will enjoy life and work less because of the high quality of civilization and social welfare. One is because of the endless human demand, a high level of science and civilization will result in the rapid consumption of the earth's resources and the occurrence of human resources worldwide panic.
The effect caused by the "innovation" and industry "competition" also includes the product life cycle is shortening. The reasons for this phenomenon are two: one for the industry in order to reduce costs and use various methods to optimize the design of products, this appeal is also able to cut down the consumer price. A response to market competition must respond quickly and short term product life can improve the product cycle sales revenue, this appeal is also in line with the current consumers who prefer new designs which diverse market needs.
Mass production and short term product life cycle cause social competitive of the industry because of endless human needs. However, if these two effects damage the Earth's environment, we will find that these two effects is the rapid acceleration to the forefront of the industry supply chain to quickly deplete the earth's resources, the industry supply chain process a large number of pollution sources and emissions carbon dioxide, and produce large amounts of garbage in the supply chain and the end product obsolescence culprit.
From lasting innovation point of view, some of the basic concepts of the implementation of the social responsibility of all mankind environment, the following instructions from the dimensions of the detail of the culture and overall strategy to implement the strategy of all mankind environmental and social responsibility:
Intangible cultural factors, like the invisible air, when you want to control the air, you will feel it difficult to manipulate, when you try to frame air, before we know it will cause stress. Building a house, its actual construction is a hard thing. Corporate image, customer discussions, customer evaluation, integration of supply, offer art and so on, they all have processing and organizational implications, but it can be better, the main factor is still the perfect corporate culture and business strategy embodies. U.S. President Barack Obama ran for the slogan of "Change" after taking office, we immediately feel the effects caused by the soft power, which is the effect of cultural forces affection. On the contrary, "culture" to individuals that is the "mentality" and "habit". They are both hard to be changed. To challenge the people "it’s easy from simple to extravagant, but it’s hard from luxury to simple." It is like equivalent to the bureaucratic system in the construction persistent culture of innovation, which is definitely not an easy thing because, the meaning of the luxurious habits.
Such issue is how being able to go through the fermentation of cultural dimensions quickly and effectively influence and change people's mentality and habits? Culture and habits must rely on "education,” including family education, social education and school education. The fermentation of the mankind's common issues, of course, must draw on the current topics, such as Luc Besson "Home", the young Australian producer Aaron Scheibner "A Delicate Balance-The Truth", the first documentary of Taiwan's climate change “±2”, the Copenhagen conference, the Kyoto Protocol, Factor,4, carbon footprint, and other issues, the collation of information should be widely used in all levels of education, elementary and kindergarten education. It will teach and affect people to care more. We must be actively by cooperating social responsibility, social clubs and school social responsibility to rebuild the pipeline of social values. To allow all people understand the "innovation and social responsibility, and enjoy the process of innovation and must also take care of environmental and social responsibility at the same time.
2. Strategy concept
Moderate conflict is a good thing, its main focus: the contradiction cannot become a long-term phenomenon and a deepening of the contradiction either. The United States had racial conflicts between whites and blacks, and later fusion (of course, there is a problem). American politics is reflected in the two major parties, truly free and fair competition, and opposition party’s takes people’s national interests as the number one consideration. Encounter contradictions, it is improving the chance of promotion. Just by looking for common interests of the two conflicts, it can be balanced, improved and it is innovation.
Mankind is facing the biggest contradiction: the business "non innovation crisis” and the Earth's environment are facing the "innovation crisis". Encounter this type of problem, of course, must be a great strategy trying to resolve it. The most important steps include: (a) the definition of the value chain and all stakeholders, (b) lists the key considerations for these stakeholders, and (c) the use of innovation and the way to the idea of solving strategies. Stakeholders of all mankind environmental and social responsibility issues are of course all of humanity. Under the careful division of the interested parties in accordance with the influence of the size of the clusters can be divided into global economic, environmental organizations, national governments, enterprises, social, school, family and individual.
Standing by aside of business point of view, the policy considerations often take into account the global environment, micro industry environment and their own ability in a competition among the energy problem in this environment. In general, PEST (Political, Economic, Social, and Technological), SWOT (Strengths, Weaknesses, Opportunities, and Threats), and Porter's five forces analysis methods are applied to the overall strategy assessment. This article mainly discusses the issues of a strong relationship of future development. The current trend of industrial development has been from a knowledge-driven into the era of environmental solutions for the main driving factor, but because of environmental issues and solutions have been beyond the individual business level, only the various oriented PEST analysis of the key considerations for this subject and possible solutions strategy for the aforementioned interested parties:
a. Global Economy or Environmental Organization:
i. Factor 4 and Factor 10 are the strategies similar to WBCSD for global environmental protection inevitably will result in a very important positive effect. Its goal attempt in the process of human civilization and social sustainable development, it's not to continue to cause the burden of the earth's environment. Four times the output value of one resource, this goal is a very demanding challenge for the industry, after all, "to create a resource, not to mention the problem of how to achieve Factor 10. Global economy or environmental organization which originally set the global economic and environmental development policies (Policies) organizations, such as consumer electronics products of many industries absolutely have the ability to manufacturing life cycle longer products (such as mobile phones warranty only last one year, but the technical areas of production and manufacturing a three-year warranty mobile phone is definitely not a problem.) But under the premise of market demand and industry competition resulting in shorter and shorter product life time, there are more and more high-tech products waste, in addition to such as Factor, 4 policy, it should formulate the shortest life cycle of the product limit strengthen the industrial policy of product durability and product warranty.
ii. In consumer electronics that produce a large number of high-tech garbage, including power supply, signal switch wiring, data transmission lines, and parts are various specifications of various manufacturers, and even for each different product specifications because these parts cannot be shared, resulting in product obsolescence of spare parts must be scrapped at the same time waste situation. Therefore, the global organization should set policy and call on the industry to have common rate set to the convention on the product development, set interoperability specifications of spare parts, from the source of product development, production of energy conservation and waste reduction. These two policies are from the R & D and production side of the "best" policy. Such a policy also avoids the problem of vicious competition in product quality caused by fermentation under the "market-driven factor of the market developed to cater consumers' mentality of comparing, redirects are" technology-driven mode to the development of industrial technology.
iii. In the process of industrial development in the whole world, because Europe and the United States have been leading ahead in the industrial development, industrial migration effects of development have resulted in the fact that most of the manufacturing have been done in Asian countries. Innovation of the entire industry value chain, product development, manufacturing, and marketing work, those manufacturers of countries have the largest contribution, because they supply the material needs for people around the world, and it also may contaminate their home land during the manufacturing process. However, the manufacturing country under the issue of carbon reduction but also could become the biggest victim, the manufacturing work is not only absolute the most difficult to reduce carbon emissions. The energy consumption and CO2 emissions are absolutely far more than those countries whose major income source is R & D and marketing. Therefore, under the measure of the contribution to the world's human and severity of energy consumption, for carbon emissions and carbon trading issues in the future policy should be set on a more reasonable method of calculation to give more reasonable manufacturing country CO2 emissions allowable values.
b. Country Government
i. The responsibility of global organization is to balance the competition between nations and industries. Thus everybody can stand on their own roads of survival development based on reasonable terms. Each country's responsibility is to provide jobs of each individual of different society. This is the best idea to use manpower well.
ii. Besides taking care of its own people, governments' major duty is to converge the global economic and environmental development policies to foster the industry toward the right path. It'll be able to provide people guarantee for economic development and social welfare. This is a convergence of global policy (Policy), the important mission of the national economy (Economy) and social welfare (Society). Under environmental protection responsibility issue, besides taking control of the development of global environmental policy, governments have to connect its own domestic industry with internationals for its long term development of technology and marketing. To foster industry to build early policy due to the global change under potential industry impact.
iii. In addition, the Government should stand on the responsibility of global environmental issues through the relevant government departments for all sectors of the education system, social system, corporate global policies and national policy advocacy. After all, the future development of the industry must rely on the nurturing of talents, only the future of the Human Resources Development with the concept of global environmental and industrial policy, who has decided to be able to directly reflect on the future industrial development.
iv.The global environmental responsibility of the government encourage people to make the best use and the concept of reducing waste through education advocacy and promote traditional Chinese culture inside the "thrifty" concept for the global environment to improve the country's economy, family and personal economic benefits. Environmental and social responsibility concept can be implemented in every corner of society. To foster the process of industrial upgrading and reconstruction of social value, but it also be able to smooth sustainable management of the industry and with the social welfare system to develop "best use" of corporate social responsibility.
v. Of course, the Government must also be in response to global environmental policy and set the terms of the industrial development incentives and the terms of the award for family or personal environmental responsibility, in order to strengthen the implementation of environmental policies.
i. In response to a variety of global environmental policy under the global environmental change has begun to emerge. In addition to the relevant policies, the government must actively promote the counseling outside of the coping strategies, and standing corporate social responsibility point of view that companies must implement the principle of "environmental integrity", and do our best to master the material source of component production. Confirming the companies R & D and manufacturing products will not have any cause for environmental or human hazards of hazardous substances. Overall, the enterprise should be directed to accept the inevitable trend of environmental issues, and further elaborate the environmental issues into a part of the business strategy development model. HP Global Citizenship Report (HP Global Citizenship Report) practice is a kind of environmental issues cannot escape into the practices of the corporate image strategy.
ii. Products, materials, manufacturing technology innovation, and confirms of environmental responsibility and are responses to Factor 4 environmental responsibility policy, the industry of the field of product features innovative technology should be actively pursue "light, thin, short, small and TRIZ methodology which is described and the "ideal Final Result (ideal final the Result, IFR), is also the least resource and harmful effect to create the most value and benefits of product development. This is an issue of convergence of global policy (Policy), the industrial economy (Economy) and technology development (Technology). In January, 2010, the Massachusetts Institute of Technology Media Lab (MIT Media Lab) student, Pranav Mistry demonstrated the latest creation "The Sixth Sense (Sixth Sense)", in this over the creation; people are more interested in information instead of computers themselves. This is a new invention, based in line with the idea of a light, thin, short, small as well as the final desired results, creating product features that meet human needs, but also almost 100% of significantly reducing the current computers, cameras and projector and high-tech products such as the rapid development of the environmental impact of mass production.
iii. Enterprises can develop a global environmental strategy in order to increase the product life time cycle and innovative business model. If the product life time extension of programs really become a global environmental policy, then the industry must be at least cause least harm to the environment and low-cost process for developing a long-lived products, and make repairs in product design. Let maintenance services be easier to replace the philosophy of product design: to develop the best products that meet the warranty life and allow consumers to buy again after the warranty. In fact, this pattern is just a return to the industry business model in ten or twenty years ago! Discuss from lower costs and product quality issues can see the moderate and reasonable product cost reduction does not necessarily affect the product quality, but reduce the cost to reach a certain degree will definitely result in the rapid deteriorate of product quality and life time. The development of the printer market, you can find the business strategy of the current manufacturers is selling cheap printers with modes of operation of expensive supplies. However, these years because of over-emphasis on cost reduction, customers are having more doubts on product quality and life time. Moreover, this practice causes the increase in product sales of natural resources has caused the rapid consumption of the front end of the industrial chain and a large number of technological garbage at the back-end chain.
iv. Thinking of another of industry's product development strategy by similar Bangladesh banker, Muhammad Yunus founded the Grameen Bank (Grameen Bank) to help the poor as its mission, as well as the manufacture and sale of India's Tata Motors for original poor motorcycle drivers to create the cheap car marketing without air conditioning and power steering. It also leads the way to build the bottom of pyramid economy. In fact, in recent years because of the formation of M-type society, energy saving and carbon reducing, the concept of aspirations has derivatively stretched out "Providing products and service are in accordance with the actual minimum requirements." Volkswagen has launched a single car that is similar to this idea. Such concepts should be applied to: does cell phone really need complicated function? And are there any lowest demands for cheap product market for computers, printers and cameras?
v. All these years, industries have created the name of environmental protection, but not necessarily produce truly environmentally friendly products for the market. These products are easily decomposed during environmental factors. The result after the decomposition is: 1. Consumers must periodically spend a sum of money for product maintenance. 2. Industries will produce more environmentally friendly material components. Industries or academic sector should actively use such as life cycle assessment method (Life Cycle Assessment, LCA) of the aggregate effect of the advantages and disadvantages of environmental factors in the entire product life cycle process. However, regardless of the outcome of the assessment, consumer should not become the real victims of the final as a commodity. Consumers have to spend a lot of money maintaining products, and it must take the time to wait for product repair. Therefore, we must promote truly environmentally friendly materials, process and product development and we should avoid some pseudo-developments and sales of environmentally friendly products. We should also avoid the industry raising the price because of environmental cost and cause consumers pay for more.
vi. One of the most important customer responsibilities for industries is to educate consumers the correct concept of environmental protection. Besides the above concepts, they should also encourage consumers in the advertising propaganda to make the best use of products (of course the best with the concept of government propaganda) and strengthen the product repair services and product obsolescence process. It'll implementation the Extended Product Responsibility of R & D producers, or the Extended Producer Responsibility, EPR.
d. Society, School, Family and Individual
i. These are individual units, but usually it's not for the purpose of gaining benefits, and the main object of the organization is to learn, grow and have fellowship. Therefore, we will illustrate in this view at the same level.
ii. If we want to have the policy, “To make the best of everything.” work, the key point is each individual. Perhaps it can be through international organizations or government agencies and legislative restrictions to limit the number of an average output of waste for each person .However, having life back from luxury to simple originally is a very difficult thing, if implemented mandatory, it will definitely increase the relative difficulty. Therefore, promoting environmental and social responsibilities must start from enterprises but also from non-enterprise type organizations. By the idea of "Environmental protection is everyone’s responsibility." in order to educate consumers. We need to educate consumers the impact of environment from the Earth's ecological catastrophe, the evolution of global environmental regulations, automation and short life time products. At the mean time, promoting the idea of life time of products and to make the best of everything is important. Basically, in all sectors of society, we already have the idea of the correct environmental awareness and the implementation of social and cultural environment.
iii. In fact, there are many ways to teach people to protect environment, including product using, food, clothing, transportation, entertainment, housing and other consuming behaviors. One thing about packaging, we always waste too much resource on gift wrapping. For example, it will cause more pollution and traffic problem without developing public transportation. Eventually, it’ll affect citizen’s health. If you don’t think about solutions, the future is bound to become a burden for the social development under the implementation of carbon trading practices. So, this is a social value (Society) and the national economy (Economy) dimensions combination of issues.
iv. There is only Yes or No, there is no can or can’t. Everything is possible as long as we are willing to learn. If we don’t have the right attitude and don’t want to learn, everything will be impossible. Mentality can be developed, such as mental, ethics and spiritual education all have to be developed when we were kids.
Conclusion: the Essential Thinking of Innovative Managers in Response to Social Responsibility
Financial tsunami and the current European debt crisis currently happened and its causes are the same as the human experience of the environmental crisis. Common basic reasons: greed, waste, over-consumption. In recent year, I have been a consultant for Taiwan Woodworking Machinery Industry Association and there are some viewpoints I’d like to discuss:
1. Some people say that because of global warming, there is more and more emphasis on environmental protection. Forests cutting down are prohibited and it’ll also cause a significant reduction of woodworking products. Eventually woodworking machinery industry is bound to shrink.
2. But, if we take a look from a crisis of innovation to the concept of good of innovation cycle, is it a good thing to make cheaper products? From a point of view of Environment
3. Friendly, is it a good thing to shorten product life time?
From the point of view of the forest resources applications, regardless of the original forest resources, or the use of planted forests and cultivation, we must protect t forest resources in particular. If you can plan well for forests, do not over cutting down, coupled with plans to cultivate, cutting a tree can grow three to five trees after. This approach will allow the forest or forest resources endless. Furniture factories also can emulate Chinese or European classic furniture, from designing to durability which makes people want to collect them. It will be able to achieve the balance between forest cultivation and natural resources. The application of timber resource even may be the most environment friendly resource.
4. Finally, there is a simple basic question of perception. As long as we can keep the idea of cherish in mind. Timber resources are endless, naturally balance and cycling. However, crude oil and mineral resources are not naturally recycled in a hundred years. Those plastics and ally materials can be used to create various types of high-tech products, cheap furniture, toys and other products. Perhaps the metal material can be recycled, but the manufacturing process is energy consuming and a lot of carbon emissions harm to the environment. Plastic materials are a huge impact to environment. For a better natural circulation of resources in a hundred years, or a lot of excavation cannot be a natural cycle of resources, which is more environmental friendly? This is of course relying on people’s wisdom, thinking and behavior.
The social responsibility of business managers, of course includes business growth, taking care of employees, community, environment, social care and many others. However, these topics have been having a lot of practice and answers. The difficult economic times, the test for enterprise business is strength. Someone asked: Which era is the emphasis of innovative ability? Here, I have some answers:
1. The current ear should be as known as innovation economy instead of economic knowledge. We need knowledge to create more economic value. Each automobile company has same full automotive knowledge, but why they can create different value? Thus on the basis of knowledge, we have the ability to create new technology, new types of service, new business model in order to create new economic value. Therefore, the "innovation economy era" is consistent with the current status of the current world economic war!
2. What is an innovation crisis? We are all familiar with the automobile industry originally a standard of mature products. From 2007, it has changed from stable to highly unstable period. Matured automotive market can change into unstable market during 2 or 3 years, other industries may also occur such a phenomenon? This is the crisis of not to innovate. The speed of technological development is faster and faster. Under such rapidly changing the distance between the first and the second of the market will be farther and farther. It’ll be hard for second place company to survive.
3. The head of the organization or management must accept any ideas of magnanimity that is enough to accept a reasonable failure, and even further to reward success and reasonable failure. Thus, we can mobilize all personnel actively submit innovative ideas. This is culture. Nowadays is the high rate of technological development. Everything is possible and turning impossible to I’m possible is the right way of enterprise culture and individual attitude.
Speak about corporate social responsibility; this article is emphasized about the most important global environmental and social responsibility issues. When the global environment is turning into natural disaster and rampant human crisis period, this is the time to test all mankind's wisdom. The global environment problems are all mankind’s responsibility. However, the reasons of environment problems as above described: a large number of automatic products and short life time products. Things caused these problems are human beings’ greed and market demands. If industries continue to produce new products, shorten product life time and make a large amount of automatic products, it’ll eventually destroy the whole environment. The responsibility of changing global environment relies on each company’s managing personnel. In order to solve the environment problems, all the enterprises have to slow down the production competition due to market demands to reduce environmental impact. (This also involves the strategy of international organizations and corporate model set.) I = PAT. Unless a major environmental disaster, or the total population (P) It cannot become the main parameters to reduce the impact (I). Environmental issues must be from a large number of affluent consumption patterns (A). As well as the natural resources consumed by the technology they create for the impact of the natural environment (T) Start with both.
Besides environmental and social responsibilities, what else responsibilities should innovative managers take? They have to start from the concept of Balanced Scorecard BSC to build an environment of corporate social responsibility, and then extend to Total Responsibility Management TRM and Total Accountability Management TAM. Employees with knowledge of the field of global environmental, they will be able to have business operations management, customer management, innovation, social regulations, management processes, and planning and implementation capacity. After companies have the ability to manage the overall internal, it’ll be easier for them to create high product value and protect environment at the same time. Enterprises will be able to gain profits from innovation life time management when consumers and environment are taken care well of. Of course, it includes skills, markets, investment, strategy, index assessment models and action project and so on. We are not going to discuss of these due to the limit length of article.