An Approach to Promote Sustainability in Small Size Manufacturing Companies

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Abstract

In large size companies, sustainability is promoted by governmental regulations, company reputation, and economical benefits of sustainability initiatives. Small size companies in developing countries are lacking these factors in most cases. Where there are no strict environmental regulations on one hand and, on the other hand the generated benefit from the sustainability initiative does not justify its initial cost. An Approach called Equalizer was proposed to promote sustainability initiatives in small size manufacturing companies, where the initiative is not economically justifiable, while it is environmentally, and societally beneficial. The approach was based on the concept of zero total loss; meaning the loss results from an initiative that must be equalized by a profit generated from another initiative. The approach used the total life cycle costing method to evaluate the initiative. The case study included in this paper demonstrated the practical implementation of the proposed approach. Using the approach, it was possible to promote a loss generating initiative at the expense of another profit generating one. The approach was found successful in promoting sustainability among the decision makers in small size manufacturing companies, without violating the constraints or exceeding the limitations on their business.