Towards a framework to enable construction small and medium-sized enterprises (SMEs) to manage sustainability

The careful management of sustainability issues is increasingly being demanded by construction clients and others within the construction supply chain. Certification to sustainability standards is widely recognised as a means of demonstrating performance in this regard, and many pre-qualification questionnaires and tender processes now explicitly require their suppliers to provide evidence of sustainability standard certificates and policies. However, implementation of these standards is a costly and time consuming process, especially for small and medium-sized enterprises (SMEs). Smaller firms often lack the fundamental know-how of how to address the requirements of standards and are required to engage the services of consultancies in order to implement them, which further increases the costs associated with their implementation. [Continues.

Characterising the relationship between responsible sourcing and organisational reputation in construction firms

Responsible Sourcing (RS), the ethical management of sustainability issues through the construction supply chain, first achieved national prominence in the UK 2008 Strategy for Sustainable Construction. This set a target for 25% of all construction products to be sourced from schemes recognized for RS by 2012. The Building Research Establishment (BRE) published a framework standard, BES 6001, in 2009 to enable construction firms to certify their products as responsibly sourced to help achieve this target; since then, 80 BES 6001 certificates have been issued to around 40 companies in the UK. RS has its roots in the corporate social responsibility (CSR) agenda and, although it has become a distinct focus within procurement and sustainability management practices in some firms, it is still an under-theorised concept; understanding the role it plays in relation to an organisation’s reputation is a subject area that is noticeably absent from the literature. Although it has been suggested that robust links between the broader CSR agenda and corporate reputation are yet to be established, there is evidence that reputational protection is a key driver for an organisation to engage with RS. Based on a critical review of the literature, this paper aims to stimulate debate on the characteristics of organisational reputation in construction firms and understand the relationship between RS and reputation. It takes into account internal and external stakeholders’ perspectives and the extent to which focussing on protecting reputation can or should take precedence over bottom-line benefits

Implementing sustainability in small and medium-sized construction firms: the role of absorptive capacity

Purpose – Construction organisations are becoming increasingly aware of the impacts of their operations, from both an environmental and, more recently, a social viewpoint. Sustainability standards can enable an organisation to evidence a benchmarked level of performance against a particular issue. To date, research on standards has largely focused on the operational and administrative aspects of their enactment, rather than how they might affect – and be appropriated by – organizational actors. This research examines how capacity for learning can affect the success of implementing standards within two construction SMEs. Design/methodology/approach – Taking an organisational learning and absorptive capacity (ACAP) perspective, this research uses the case study approach and abductive logic to understand what role learning plays with regard to sustainability standard implementation. Findings – The results reveal that strong communication channels and commitment to training programmes increase the capacity for implementing standards, but that SMEs tend only to approach standards if they see immediate financial benefits stemming from their implementation. Practical implications – SMEs provide a challenging context for the implementation of sustainability standards unless there are significant external levers and extrinsic motivation for them to be embraced. Care should be taken in incorporating these aspects into the future design of standards that are more aligned with SME needs. Social implications – Stakeholders should seek to apply pressure to firms to positively influence engagement with sustainability standards. Originality/value – The role and importance of ACAP is an underdeveloped debate in the certification field. This study is the first that links the process of implementing a standard with the ACAP of an organisation

Developing a sustainability assessment tool to aid organisational learning in construction SMEs

Organisations engage with sustainability for a number of reasons, often implementing standards to demonstrate commitment to sustainability or benchmark performance. However, many scholars discuss sustainability from an operational or administrative perspective, largely neglecting the role of individuals making up the organisation. Central to organisational development are the learning processes of these individuals and how these translate into organisational learning. Although research into organisational learning is abundant, relatively little is known about how construction organisations, particularly those classified as SMEs, undergo learning processes in order to increase their knowledge. Furthermore, organisational learning requires high absorptive capacities (ACAP) and previous research has linked this with successful standard implementation. SMEs are often pressurised by customers to obtain certification to multiple standards, yet often lack the necessary expertise, and financial and time resources to implement these. This research argues that organisational learning is a key limiting factor in successful sustainability standard implementation. Specifically, the development phase of a sustainability self-assessment tool to identify environmental and social aspects most relevant to an organisation’s operations is presented. Following this, the tool then enables the level of organisational knowledge held about each of these aspects to be determined such that learning approaches are informed to increase learning and knowledge and hence absorptive capacities. The main components of this assessment tool are presented and rules for its operation and development established. Next steps for the assessment framework and suggestions for its applicability to construction product manufacturers are also offered

Integrating responsible sourcing in the construction supply chain

Certification to industry standards is the most tangible means for a company to prove its commitment to sustainability issues. The construction sector is of particular interest, due to the huge impacts of its operations. Many companies operating within the sector have implemented environmental management systems in line with ISO 14001 although recently the industry has become focused on the concept of responsible sourcing (RS); the ethical management of sustainability issues associated with products and materials in the construction supply chain. An adoption of this concept can be evidenced by certification to BES 6001, the framework standard for responsible sourcing. Despite this, the number of accreditations is relatively low and knowledge and awareness of RS is still limited. This review paper explores the reasons behind the under-emphasis of RS within the industry, despite a continually increasing knowledge of the Corporate Social Responsibility (CSR) agenda. Currently, opinion is divided on whether CSR and RS represent a form of corporate philanthropy or a channel by which revenue can be increased. The issue is further complicated by the presence of engineered-to-order (ETO) products, which creates barriers to the enactment of RS and CSR principles. These are explored and possible explanations for their absence from supply chain management issues offered. Furthermore, the potential to extend the interpretation and application of the ISO 14001 framework to demonstrate the consideration of these principles is presented. Other certification schemes of particular significance to the industry and the problems for companies to achieve certification are also discussed; in particular, access to financial and other resources are identified as a key barrier to certification, especially for SMEs. Recommendations are made for future research that might enable SMEs to achieve sustainability certification more readily and to help the industry embrace the concept of RS more broadly

Analysis of responsible sourcing performance in BES 6001 certificates

Responsible sourcing (RS) of materials is defined as the ethical management of sustainability issues within the construction supply chain, and engagement is typically evidenced by certification to BES 6001, the framework standard for the responsible sourcing of construction products. Points are scored in BES 6001 under a number of clauses, yet little is known about RS practices. The aim was to extract knowledge about RS practices from all 138 nr. BES 6001 certificates issued to UK companies between 2008 and 2013. Data by performance rating, company size and product sector were analysed using Spearman’s rho (ρ) and Cronbach’s alpha (α). Performance against the life cycle assessment and resource use clauses was found not to significantly influence overall performance, so neither of these clauses can be assumed to represent good summary measures of sustainability performance. This suggests a refocusing of the scope of both these clauses might be appropriate in future developments of the standard