Corporate Sustainability: Value Creation in Sustainable Manufacturing

Damla Ozekan
Istanbul Kultur University, Istanbul, Turkey
DOI: https://doi.org/10.31410/eraz.2018.880

4th International Conference – ERAZ 2018 – KNOWLEDGE BASED SUSTAINABLE ECONOMIC DEVELOPMENT, Sofia- Bulgaria, June 7, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Business Studies, Mediterranean University – Podgorica, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia, ISBN 978-86-80194-12-7

Abstract

In recent years there has been significant discussion about corporate sustainability in the business and academic area. This term is often used very related to, and also sometimes as a synonym for corporate social responsibility and sustainable development. Although there are many definitions for this term, corporate sustainability can be defined as a new and evolving corporate management model which is an alternative to the traditional growth and profit maximization model. It is a term that includes the goals related to sustainable development – such as environmental protection, social justice and equity- as much as corporate growth and profitability. In manufacturing, value is generated through activities and interactions between suppliers, manufacturers, customers and other stakeholders. However, when it comes to sustainable value creation, the economic, environmental and societal impacts on all stakeholders must also be considered. The first section of the paper gives a deep literature review on corporate sustainability and value creation.
According to Badurdeen and Jawahir; there are eight key strategies to enable value creation through sustainable manufacturing. These strategies include; sustainable manufacturing education and workforce development, next generation decision support tool set, risk, uncertainty and unintended consequences for supply networks, Product Life-cycle Management (PLM) capability for process planning, life-cycle cost models, 6R-focused end-of-life management, flexible and scalable manufacturing alternatives and sustainable manufacturing metrics. In the second section of the paper, these key strategies and other strategies are explained to enable value creation in sustainable manufacturing.
At the last part of the article, one of the biggest manufacturing companies in Turkey on glass industry is investigated as the main case of this study on sustainable manufacturing. To underline the policy and strategy of the company on sustainability, a depth-interview has been done with the coordination office of sustainability. The company defines its aim to become one of the top three in global market through mainstreaming, evaluating and prioritizing their business strategy in line with sustainability principles while adding value they create by the stakeholders. The key strategies in literature and the company strategies are compared in sustainable manufacturing and the findings gathered from the interview are going to be explained in full text article in detailed.