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Issue Report

Collection of full-length papers and in-depth analysis of economic and management issues.

Green Management Through 3Rs

Green Management Through 3Rs

OH Dong-Hyun

June 4, 2010

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Originally released on May 18, 2010


Korea ranks at the highest level in terms of productivity, but ranks near the bottom in green productivity which takes environmental factors such as carbon and sulfur oxide emissions into consideration. The green technological gap between Korea and leading green countries such as Norway , Japan and Germany has not narrowed. Korea is ten years behind Japan . With growing pressure on companies to go green, it has become an important management issue. Environmental regulations have been strengthened along with the mounting attention to protecting the environment. Moreover, consumers have become eco-friendly. Businesses can promote their image as an eco-friendly company through green management, and this will ultimately lead to enhanced competitiveness based on consumer trust.

To raise green productivity, businesses need to innovate through the "3Rs" (Reduce, Replace, Recycle), the core of green technology. "Reduce" refers to lowering the amount of materials used in manufacturing products, as well as reducing the weight and size of products through an innovative design. Such innovations allow businesses to lower the disposal rate of packaging materials. "Replace" refers to substituting conventional raw materials and low-efficient energy systems with green materials and high-efficient energy systems. "Recycle" refers to eco-friendly designs that make recycling and reusing products easy and the operation of a recycling system. Businesses can increase the recycling rate of resources by establishing a system to sell refurbished products. They also can recycle energy and materials by innovating work methods.

To pursue green management systematically, businesses need to systematize and categorize green technology and assess the Green Productivity Index from the economic perspective. In addition, businesses need to realize that green technology is important for a successful establishment of green management system. CEOs also should support innovation relentlessly. As for the government, it needs to draft support and incentive plans for green technology innovation. In particular, it must bolster its support for R&D of small and medium-sized enterprises (SMEs), which have low awareness of green management and lack green technologies. The development of R&D programs in which industry, academia and institutes are collectively engaged is necessary to accelerate the innovation.

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