To promote the environment conscious operation of manufacturing in China, these paper developed method for environmental conscious management from the risk analysis of external regulations, internal environment conscious management and financing. The structure of paper is shown in Fig 1.15. This study first introduced the position of Chinese manufacturing in world and operation background of Chinese manufacturing, and then investigated the environment law of Chinese and the environmental standards of world. To
promote the environment management level, next, this paper investigated the environment management strategy and MFCA. And then, expand to all CSR actions of world. To promote the application of CSR, this paper further investigated the SRI. At last, summarized the conclusion and prospect the further research.
Fig 1.15 Structure of paper
This thesis is composed by seven chapters. The main contents of every chapter are shown as following.
Chapter 1, this chapter illustrated the research background from the position of Chinese manufacturing, national background of environmental policy and green barrier in international trade. And it identified the research purpose of promoting the environment conscious management in manufacturing. Meanwhile, it summarized the current status of research and pointed out the creativeness and necessity of research.
Chapter2 first identified difference of definition of environment management strategy and environment management, pointed out environment management of this study is a strategy which integrates many activities in management and production such as material flow cost accounting, environment report, green purchase, green marketing and so on. Research and application of environment management strategy in China is fewer. Therefore, this chapter investigated the feasibility of application of environment management strategy in China from six aspects, (1) Support and problem in environment management (2) Eager and support for
green product (3) Support and problem in environment data record (4) Promotion of environment report and challenge (5) Support and problem in enterprise value (6) Promotion of green financing. This chapter concluded that application of environment management strategy in China is feasible. However, mass of Chinese product is recalled because of green barrier, environment report is lack of quantity description, CSR performance of Chinese enterprise is poor, and there is not assessment standard for financial support. For this problems, this thesis draw proposals of database construction for eco design, application of Material Flow Cost Accounting, database construction of Corporate Social Responsibility and assessment of Corporate Social Responsibility.
Chapter 3 is Analysis of Environmental Legislation Risk and Construction of Global Eco-design Standards Database for Chinese Manufacturing
Environment accident reported by China is smaller than that of Japan, the environmental accidents are decreasing, but economic loss is not decreasing, therefore enterprise should enhance the environment management level and avoid environment risk. China speeded up environmental legislation in last ten years, environment regulations was enacted in time and fast. New environment legislation will bring risk for manufacturing. This chapter assessed legislative risk of every environment regulation from environment pollution and legislation process. After assessment of environment pollution intensity of sectors, this chapter forecast environment legislative risk for sectors. On the other hand, export value took more than half of GDP in average from 2007 to 2011. In recent years, Nations issued a large amount of environment standards; as a result, Chinese exported products suffered recall in main target nation of export because product did not meet requirement of eco-design. In China, small and medium-sized enterprises took more than half of total enterprise in manufacturing. For small and medium-sized enterprises, it is difficult to know well about all environment standards in world. This paper constructed database of global environment standards. This database can draw report of environmental requirement about restricted chemicals, waste disposal and energy-saving for product exported to different nations.
Chapter 4 modified material flow cost accounting and its integration in financial report.
Material Flow cost accounting is an effective environment management tool which can visualize any waste so as to reduce the waste in the production process. However, cost allocation method of current MFAC is not accurate and cumbersome, especially for the sectors with a large number of system cost, allocating system cost by the weight ratio of positive and negative product will lead to serious error. System cost is divided into the system cost for waste disposal and system cost for the production in modified MFCA and added three account subjects which are defective product, positive product and waste. This paper illustrated the shortcoming of current MFCA through adopting the modified calculation method to case example of the Ministry of Economy Trade and Industry. To promote the application of MFCA in China, this chapter integrated MFCA and Enterprise resource
planning (ERP). Based on the integration of MFCA and ERP, this study drew proposal for income statement. At last, this study applied MFCA to a drug chemical plant in China, and drew the modified income statement for this company.
Chapter 5 developed of CSR assessment with indicator system and construction of CSR database for Chinese manufacturing.
To achieve sustainable development, enterprise not only need take environment responsibility but also need take other responsibility in the future. This chapter firstly introduced definition of corporate social responsibility, philosophic theory of CSR and subjects and contents of CSR. In China, many enterprises consider donation as CSR in China.
More than half of enterprise in top 300 had not taken any management measures of CSR or disclosed any CSR information to the public as bystanders. To promote the development of CSR in Chinese enterprise, this paper integrated ISO26000 and Chinese CSR report guideline (CASS-CSR1.0) and established an overall CSR indicator system which includes 50 indicators for environment, market and social responsibility, and limited the scope of every indicator for CSR assessment in Chapter 6. Based on the CSR indicator system, this chapter constructed a CSR database; it included 30 CSR guideline and compact, more than 300 CSR actions. Finally, this paper collected and sorted the CSR practices of 20 Chinese enterprises and 20 Japanese enterprises, and found Chinese enterprises should enforce the responsibility management and make more effort to take environment responsibility. In market responsibility, Chinese enterprise should take more action in product safety and quality, emphasize on the protection of customer data and privacy. In environment responsibility, Chinese enterprise should apply specific environment management tool like application of environment accounting, development of environment education and so on. For Japanese enterprise which is operating in China, it should pay attention to employee care and social problem solution.
Chapter 6 drew proposal of corporate sustainable development assessment based on csr for Chinese manufacturing.
To create the sustainable society, we have to establish a good capital market in which the company with better CSR performance can finance easily. This paper analyzed the current status of SRI Indices, summarized the assessment methods of SRI indexes in the world. The financial data method applied by Chinese capital market ignored the performance assessment of CSR action and ignored CSR difference of industrial feature. Therefore, based on the indicator and database of CSR in Chapter 5, this study surveyed importance of different indicators by questionnaire, and identified the weighting of CSR indicator by Analytical Hierarchy Process. This chapter applied it to Chinese companies to assess CSR performance.
This kind of assessment method can revise the error of financial method of Shanghai Stock Exchange-Socially investment.
Chapter 7 summarized the conclusion and pointed out future prospect of the study.