FM and sustainable development
In the second of three articles from Sheffield Business School’s CFMD on FM talking the language of business Paul Wyton focuses on an area that arguably provides the greatest opportunity for facilities managers: corporate social responsibility.
by Paul Wyton
Sustainability and, more widely, corporate social responsibility (CSR), are now significant factors when determining corporate strategy. The government is driving change with a carrot and stick approach involving legislation and tax. At the same time, consumers and organisations are increasingly including sustainability in their buying decisions. In response, organisations are changing their values, whether by leading change, or by reacting to meet their obligations. And where does responsibility lie for operational delivery? With the FM function, of course.
We have just witnessed the worst UK-wide winter conditions for 30 years. Freezing weather in the rest of Europe, huge storms in the USA and deadly droughts in Africa and Australia, all corroborate with the significant evidence that our climate is changing — and rapidly. This change is fuelling discussions about the way we live our lives.
The need for change
Despite the apparent failure of our respective governments to reach an agreement at last year’s climate change summit in Copenhagen, there is a groundswell of belief that change must happen.
Some reports indicate that we are reaching (or may have already reached) ‘peak oil’ — the point at which the maximum rate of global petroleum extraction is reached. After this, the rate of production enters terminal decline.
The price of energy has risen and may well rise further. This, combined with security of supply issues and a need to develop alternative energy resources, indicates a move is required away from a carbon-based economy.
Carbon is the focal point of many discussion on sustainability. However, consider the Brundtland report’s definition of sustainable development:
‘Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs’.
This implies a wider view of sustainability and its natural partner, sustainable development, that is often portrayed as the integration of three pillars: ecological, economic and social factors.
It is a view that acknowledges the importance not only of carbon but of other environmental issues too, such as waste, pollution and the impact of supplies. But fully incorporating such a view also includes acknowledging issues such as employment policies, impact on neighbours and the financial implications of such decisions. The need for change is now being recognised by our government, and particularly, our consumers. This is placing pressure on organisations to meet corporate social responsibilities; to be sustainable — and to be seen doing so.
Difficult decisions
However, sustainability is a complex concept with conflicting issues. It presents problems we are not currently experienced, or equipped, to solve. This means that decision-making around sustainability is difficult. Organisational decisions often come down to a value judgement based on what is understood to be least damaging. Such complexity can lead to decision-making and values not being fully in alignment, potentially jeopardising the perception of the organisation’s approach to CSR.Kollmuss and Agyeman argue that this can lead to a ‘value-action gap’, a willingness to or a desire to be seen to do the right thing, but with the resultant action being inconsistent.
Gareth Chaplin, in a recent study, argued that this value-action gap can be seen to arise from a behavioural displacement of responsibility. Such displacement might arise through the perception of financial constraint, comparison to other organisations and their action, or inaction, or the limited perceived impact. Many of these displacements arise through a lack of understanding of the problem or its solution.
Fit for purpose?
But where does FM fit into all of this? If we take the informed client view that FM should provide an estate and services ‘fit for purpose’, what is clear is that the definition of fit for purpose changes with the values of the organisation. FM needs to speak the language of business, sustainability and CSR if it is to show the contribution that a truly informed client function can make.
And such contributions are already being made. The most obvious, yet often unappreciated one, is by reductions in energy consumption — and therefore in emissions and cost — by means of right-sizing of the estate, and operating it in the most appropriate manner to meet user needs.
Contributions are being made via introduction of procurement processes that deliver value for money while meeting user needs and CSR objectives.
And finally, they are also being made by whole-life costing to support decision-making through an understanding of the environmental impact of a decision, and an indication of the true financial commitment made on capital and revenue budgets. To make such a valuable business contribution FM must have access to knowledge about technical solutions. The function should also have a fundamental understanding of organisational purpose, of changing values, and of short- and long-term business objectives and strategy. It must be able to properly frame and articulate the challenges being set, provide clear, understandable options to key decision-makers, and be able to deliver solutions.
Behavioural problems
But this can also lead to another problem for FMs. For without an implicit understanding of the language of business, they run the risk of being viewed operationally rather than strategically.
FMs must be well aware of the many technical solutions for individual sustainability. These solutions are improving and becoming more cost-effective, for example, windmills, photovoltaics, waste processing, waterless urinals, ground source heating, to name but a few. However, sustainability is not simply a problem with technological solutions. It is a behavioural problem and, in particular, the behaviour of decision-making.
To talk the language of business FM must demonstrate a tangible, valuable contribution at strategic level. Pause for a moment and consider the following questions:
- Is your FM involved in the development of corporate policy on sustainability and social responsibility?
- Is your FM proactive in proposing solutions which benefit the organisation overall?
- Does your FM respond when asked?
Meeting the challenge
FM may be tasked with providing an estate and services fit for purpose, yet this concept is changing. In order to meet this challenge there is a need to understand the technical operational issues, but these must be presented strategically in the context of the organisation as a whole. This is particularly true of sustainability and CSR, where non-adherence can be extremely costly, both financially and in terms of reputation.
But in providing solutions there may well be financial gain too, as well as new business opportunities once the changing values of the organisation are achieved. To do this FMs need to have an awareness of organisational values, and an understanding of how solutions fit into the wider picture. In short, FM must be capable of speaking the language of business.
About the author
Paul Wyton is a senior lecturer in FM at the Centre for Facilities Management Development, Sheffield Business School.
