ENVIRONMENTALLY FRIENDLY MANAGEMENT

(THE GREEN MANAGEMENT)

Diva Ananda Dinanti1, Effi Irmawanti2, Muhammad Iqbal Fasa3, Is Susanto4, Ridwansyah5

Syariah banking

Faculty of Islamic Economics and Business

Raden Intan Lampung State Islamic University

INTRODUCTION

The most significant environmental damage can occur due to the large number of industrial activities. Technological and industrial developments have had a major impact on the increasing use of natural resources and energy sources. The waste produced is known to have an impact on environmental damage. Corporate responsibility (CSR) in managing the environment can help restore environmental conditions.

Companies are increasingly aware of the importance of long-term sustainability of their business (sustainability). Sustainability is an important aspect that is of concern to management. On the other hand, various challenges must be faced. Currently, the company's challenges are not only global competition, but also natural environmental challenges. Global warming, echoes of which have been heard for the last few years. Almost everyone, from state leaders to children, large institutions to even small organizations are aggressively voicing this. How to save the environment is a shared responsibility. This phenomenon touches all levels of society and institutions, because it concerns the future life of humanity and the universe and its contents.

Awareness of the importance of this problem has also reached the level of the business world, related to corporate social responsibility. In developed countries, companies have begun to implement this through what is known as the green environment concept. How about in Indonesia? It seems to be just rhetoric, although several companies have started it, but how to respond to it still needs further thought. For most managers, they still think it's strange and don't feel the need to respond to environmental concerns. Managers focus more on other issues related to how to achieve company goals, especially those related to financial performance measures. The role of the industrial world in this matter is actually quite large, especially in relation to company behavior, which concerns the behavior of its stakeholders. If all stakeholders from various industries in the world are aware of this, they will make a significant contribution to natural life. From here the author wants to explain in simple terms the role of the industrial world in reducing the impact of global warming through green management. Environmental changes have a major impact on people's behavior. Increasing public awareness, including understanding the importance of preserving nature, gives companies the opportunity to carry out their various obligations. One of the company's obligations is to carry out social responsibility to the environment, which is a form of ethics in conducting business. Is Green Management .me a form of. implement business ethics? Does business ethics in the form of Green Management not conflict with the meaning of company strategy which is a way to achieve goals? Conceptually, the most common company goal is to achieve the maximum possible profit. Do ethical responses increase or decrease company performance? Can companies that implement business ethics achieve profits and maintain continuity of life? Companies generally try to position themselves in the industry, because it is the basis of competitive strategy. Competitive strategy itself is a source of competitive advantage. If a company needs to position itself strategically in its industrial environment (market environment), then it should also think about positioning itself strategically in the non-market environment (legal, social, political). So that the company can balance itself between a strategic position that leads to the market environment and also an ethical position that leads to the non-market environment.

DISCUSSION

The Greening of management or environmentally friendly management is awareness of the close relationship between organizational decisions and activities and their impact on the environment. Robbins and Coulter (Tj.1999) According to Cronin et.al in Sugiarto and Dewi (2016) one of the concepts related to efforts to save the environment is the environmentally friendly concept. The environmentally friendly concept is widely applied as a business strategy, both in the fields of production, marketing, human resources and other fields.

Freeman's green nuances approach in Triastity (2011) divides it into four levels, namely:

1. Legal approach: The company simply does what is necessary to comply with legal requirements

2. Market approach: Companies provide environmentally friendly products because customers want such products, not because of management's strong commitment to the environment.

3. Stakeholder approach: The company seeks to respond to environmental problems raised by stakeholders.

4. Activist approach: The company actively looks for ways to conserve resources on earth.

The greening of management approach according to Robbins and Coulter (Tj.1999) is:

1. Legal Approach : According to this approach, organizations show little environmental sensitivity. They will comply with laws, regulations and rules voluntarily and without legal challenge.

2. Market Approach: According to this approach, the organization responds to the environmental trends of its customers. Whatever customer requests for environmentally friendly products is what the organization will provide.

3. Stakeholder approach: According to this approach, a green organization will strive to meet the environmental demands of groups such as employees, suppliers, investors or society.

4. Activist Approach: Displays the highest level of environmental sensitivity and is a good example of social responsibility.

Benefits of Greening Management According to the Business Resource Efficiency Guide in Sugiarto and Dewi (2016) the benefits of greening management are:

1. Reduce costs.

2. Improved resource efficiency.

3. Reduce carbon footprint.

4. Improved environmental performance.

5. Improved company image.

6. Employees have more environmentally friendly awareness.

Several ways to measure green management. According to Triastity (2011), several ways to measure green management include: 1. EMS (Environmental Management System)-ISO 14001 2. Assessment of life cycle activities. 3. Waste disposal measures.

One approach model for evaluating a company's commitment to environmental responsibility is the Shades of Green Model. Companies that use this approach can see their commitment to various levels of depth in the activities they carry out.

Here's Freeman's approach to shades of green, breaking them down into four levels. Hierarchy of Green Shades approaches:

1. Legal approach: the company simply does what is necessary to comply with legal requirements.

2. Market Approach: Companies provide environmentally friendly products because customers want such products, not because of management's strong commitment to the environment

3. Stakeholder approach: The company seeks to respond to environmental problems raised by stakeholders

4. Activist approach: Companies actively seek ways to conserve the earth's resources.

Several companies that implement green management in their efforts to preserve the global environment include The Body Shop Indonesia (TBSI), which is known as a natural-based cosmetic product and is strongly against animal testing, and is committed to saving the planet Earth. One of The Body Shop's commitments is to save energy and care about electricity and water supplies.

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