Monitor value
It measures how much its
energy costs have gone
down and how well the
new lighting system works.
How it works
To improve results, a business may look outside the
organization, industry, or country to explore others’
levels of performance and identify how they achieve it.
Benchmark areas include unit cost, customer ratings,
and pay and benefits. The evaluation takes into
account a range of factors, including training,
technology platforms, and manufacturing equipment.
For example, Formula 1 is often used as a benchmark
for teamwork as pit-stop crews have perfected the
changing of four tires in less than seven seconds.
Businesses use benchmarking to improve efficiency by comparing
their performance with that of other organizations. The goal is to
identify and learn from best practices within or outside the industry.
Benchmarking
C
o
m
p
a
n
y
o
w
n
s
a
c
o
m
m
e
r
c
i
a
l
b
u
i
l
d
i
n
g
Identify need to
benchmark
In this example, a company
wants to improve its energy
efficiency.
Compare to
competition
The company gathers
information on others’
energy systems and costs.
C
o
m
p
a
n
y
r
e
p
l
a
c
e
s
l
i
g
h
t
i
n
g
C
o
m
p
a
n
y
m
o
n
i
t
o
r
s
e
n
e
r
g
y
a
n
d
m
o
n
e
y
s
a
v
e
d
The process of benchmarking
There are several stages to benchmarking performance
before a company can start to see cost
savings and increased efficiency.
US_332-333_Benchmarking.indd 332 21/11/2014 16:30
332 333
how operations and production work
Supply chain
Implement changes
It changes its lighting system
to the one used by the most
energy-efficient company in
its survey.
49%
of companies across 44
countries used performance
benchmarking in 2008
It is now easier than ever before for
organizations to gather data about their
competitors. Social media can provide data on
customer preferences, brands, and campaigns
of other organizations. Analytical tools are
available to simplify benchmarking across
many different channels.
SOCIAL MEDIA MAKES
IT EASY
C
o
m
p
a
n
y
l
o
o
k
s
a
t
s
i
m
i
l
a
r
b
u
i
l
d
i
n
g
s
’
e
n
e
r
g
y
u
s
e
C
o
m
p
e
t
i
t
o
r
’
s
b
u
i
l
d
i
n
g
i
s
m
o
r
e
e
n
e
r
g
y
-
e
f
fi
c
i
e
n
t
C
o
m
p
a
n
y
c
a
r
r
i
e
s
o
u
t
e
n
e
r
g
y
a
u
d
i
t
o
f
o
w
n
b
u
i
l
d
i
n
g
C0
2
C0
2
Analyze differences
or gaps
It sees that a comparable
company has a much lower
carbon footprint.
Identify changes
required
It examines its own
energy use to see how
it could improve.
US_332-333_Benchmarking.indd 333 21/11/2014 16:30
332 333
how operations and production work
Supply chain
Implement changes
It changes its lighting system
to the one used by the most
energy-efficient company in
its survey.
49%
of companies across 44
countries used performance
benchmarking in 2008
It is now easier than ever before for
organizations to gather data about their
competitors. Social media can provide data on
customer preferences, brands, and campaigns
of other organizations. Analytical tools are
available to simplify benchmarking across
many different channels.
SOCIAL MEDIA MAKES
IT EASY
C
o
m
p
a
n
y
l
o
o
k
s
a
t
s
i
m
i
l
a
r
b
u
i
l
d
i
n
g
s
’
e
n
e
r
g
y
u
s
e
C
o
m
p
e
t
i
t
o
r
’
s
b
u
i
l
d
i
n
g
i
s
m
o
r
e
e
n
e
r
g
y
-
e
f
fi
c
i
e
n
t
C
o
m
p
a
n
y
c
a
r
r
i
e
s
o
u
t
e
n
e
r
g
y
a
u
d
i
t
o
f
o
w
n
b
u
i
l
d
i
n
g
C0
2
C0
2
Analyze differences
or gaps
It sees that a comparable
company has a much lower
carbon footprint.
Identify changes
required
It examines its own
energy use to see how
it could improve.
US_332-333_Benchmarking.indd 333 21/11/2014 16:30
Corporate social
responsibility
Businesses today must aim not only to do no harm to the environment,
people, or communities, but also to show commitment to building a
better society. This is termed corporate social responsibility (CSR).
How it works
For a business, CSR goes further than aiming to be
compliant with national or international regulations,
managing risks, or corporate philanthropy—it has
to be an integral part of every aspect of operations,
helping to create a sustainable business. A company
still has to be competitive and profitable, but
must avoid making decisions merely for short-
term gain. Instead, it has to consider the future
impact on society, the environment, and a wide
range of stakeholders. Companies now report
annually on how they have met their CSR and are
benchmarked and ranked against competitors.
Environment
Company’s carbon footprint,
including recycling; water and
waste management; energy use;
transportation
Community
Housing; healthcare;
infrastructure; partnering with
local institutions; local supplier
initiatives; education; training;
local employment
97%
of UK FTSE 100
companies
reported on
CSR in 2011
US_334-335_Corporate_social_responsibility.indd 334 21/11/2014 17:27
334 335
HOW OPERATIONS AND PRODUCTION WORK
Supply chain
CSR
stakeholders
A number of different
business areas have to be
considered in assessing a
company’s CSR, from how
it affects people working in
and for the company to
wider environmental and
community implications.
Workforce
Workplace safety, health, and
well-being; diversity; equal
opportunities; learning and
development; ethical policies
and practices
Suppliers
Fair trade, supply-chain ethics,
and sustainability (including use
of child labor); code of conduct;
transportation policies
Operations
Ethical trading including marketing
practices and pricing; managing
customers; financial reporting;
policies; values
Fairtrade International
Many consumers expect the companies they buy their
latte from to uphold ethical practices. A US campaign in
2000 pressurized Starbucks to serve Fairtrade coffee.
The public wanted to understand the coffee giant’s
supply chain as there was concern for the livelihoods of
coffee farmers, many of whom are indigenous people.
Fairtrade International ensures that coffee farmers
receive a fair price for their crop, plus a premium that is
invested in improving farming practices. Coffee was one
of the first products to carry the Fairtrade Mark.
CASE STUDY
US_334-335_Corporate_social_responsibility.indd 335 21/11/2014 17:27
334 335
HOW OPERATIONS AND PRODUCTION WORK
Supply chain
CSR
stakeholders
A number of different
business areas have to be
considered in assessing a
company’s CSR, from how
it affects people working in
and for the company to
wider environmental and
community implications.
Workforce
Workplace safety, health, and
well-being; diversity; equal
opportunities; learning and
development; ethical policies
and practices
Suppliers
Fair trade, supply-chain ethics,
and sustainability (including use
of child labor); code of conduct;
transportation policies
Operations
Ethical trading including marketing
practices and pricing; managing
customers; financial reporting;
policies; values
Fairtrade International
Many consumers expect the companies they buy their
latte from to uphold ethical practices. A US campaign in
2000 pressurized Starbucks to serve Fairtrade coffee.
The public wanted to understand the coffee giant’s
supply chain as there was concern for the livelihoods of
coffee farmers, many of whom are indigenous people.
Fairtrade International ensures that coffee farmers
receive a fair price for their crop, plus a premium that is
invested in improving farming practices. Coffee was one
of the first products to carry the Fairtrade Mark.
CASE STUDY
US_334-335_Corporate_social_responsibility.indd 335 21/11/2014 17:27
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.