Yawal System - Implementing the Global Compact
principles ( environment )
Subject
Improving environmentally friendly technologies in Yawal System, Poland
Context
Yawal System is a medium size company, which produces architectural aluminium constructions.
The company employs 220 people and is located in a small town ( 20,000 inhabitants ) near
Czêstochowa on the South of Poland ( Herby ). Yawal System is one aluminium plant which
belongs to a bigger aluminium holding which has production plans concentrated in Central and
Eastern Europe .
Yawal System is located on the south of Poland, region historically concentrated with heavy
industry which has gradually been disappearing after 1989.
Building a plant 40 km from Czestochowa was determined by high unemployment rate which
occurred after a local heavy industry had been closed due to inefficiency. Management team
commutes from Czestochowa ( about 30 people ) but the rest of employees are from the area of
Herby.
Since then Yawal System is the main employer in town, the company ( management ) realises
that its role cannot be constrained only to making business but also to assisting the local
community in transformation process, which for some parts of society, (especially for poorly
educated) the process can be painful.
Yawal produces 1700 tonnes of aluminium profiles per year and 1850000 m of accessories.
Theme
Change management – introduction of the concept of 'environmental management '.
Instrument
Integration of management system : ISO 14000 ( an international norm )
Motivation for action
External factors:
Environmentally responsible management is still unpopular in Poland however in a country which
after communism inherited severely devastated environment, this issue is especially important in
building the new ethos .
Being 'environmentally conscious ' is neither profitable nor easy in Poland yet, however prospects
of the European Integration ( expected rise of competitiveness on the market )result in decisions
which in a course of 5 years would bring positive results.
Observing changes in the countries of the European Union, proves that that society puts great
importance on the environmentally responsible production and management. Therefore in light of
future economic profits, the management team has decided to implement changes in advance in
order to be ready today to compete for the market niche in the future on the most equal
conditions.
Therefore the decision was mainly driven by shared belief among the management team that
business decisions must be responsible towards public goods. Economic aspects have been
important in driving this decision, however only in a long-term perspective, which makes it difficult
to predict the economic surplus.
Internal factors:
Management of Yawal System noticed serious changes among the employees who increasingly
more stress the importance of working in a company with responsible corporate culture and
appropriate management system with audit instruments.
Process
The main process of Yawal System is production of aluminium profiles, which includes a method
of pressing and powder painting. Supporting mechanisms include: logistics, finance,
administration and marketing.
The main environmental aspects include: energy use, water, gas detergents, noise, emissions to
the air and alkali waste.
In 2000, Yawal System has had following environmental intervention :
Energy means : 577,5 tonnes
Waste : sewage – 10256m3, emission to the air: 2000kg, communal waste : 226 tonnes, postproduction waste: 28
Changes have been introduced in the whole company – management changes are specifically
significant in the areas where the company is exposed to potential influence on the natural
environment.
Over the last years, the management team improved in 2 areas identified that were most
influential and exposed for the environmental damage ( over the last year).
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Use of plastic folia ( to wrap the aluminium profiles ) : decrease by 20% since October
2000
Use of paper : decrease by 30 % since October 2000
Supply chain management : to substitute use of wooden baskets ( to wrap aluminium
profiles ) with steel baskets which have much longer cycle life to wooden baskets.
Workers have been trained in the area of environmental damage: particularly which
institutions should be first notified and additional preventive equipment was installed
Waste ( including dangerous substances for the environment ) has been segregated
Does the process include other actors ?
The set indicators, describing areas of production exposed to high risk of environmental
degradation (and subject for improvement), has been identified and prepared with assistance
from a local NGO and academic unit since the local administration has not as yet introduced any
indicators in this area.
As part of informing its stakeholders, the company has been informing the local government
about the velocity and scope of changes, including economic gains/losses. Information is being
disseminated among other local companies as part of exchanging of experience.
Expectations of
Higher environmental consciousness among the employees and local community and practical
implementation of the notion of recycling
Improvements in building a positive image of the company
Trust building among the stakeholders
Improvement in management system
Contributing to positive change of the Polish economy overall
Cost/benefit analysis
The analysis consists of measurable not measurable indicators.
Since the legal requirements are rather easygoing and in the light of a fact that Yawal has never
had to pay any penalties, and the process of change management ( including purchasing new
equipment ) came to about 100,000 USD the cost-benefit analysis is consists mainly of future
profits not anticipated as for today, unmeasurable indicators ( increase in competitiveness, trust
building among the stakeholders, improvement of working conditions in the company ) belief of
'no other alternative'.
Future actions
Continuos efforts to set higher standards of environmental performance and full (detailed)
environmental report by the end of October 2002.
Experience gained
Knowledge of (including environmental ) norms like ISO9000, ISO 14000 is extremely important
in business to business communication strategy. Responsible business is slowly becoming a
norm in Europe and surely so will it happen in Poland ( as one can see when dealing with foreign
investors).
Beside, instruments of the norm significantly improved management, not only in environmental
aspects but also in other fields (communicating between different areas within the company, in
particularly human resources ).
Over the course of last year, the company has definitely improved its communication with foreign
investors
Which aspects have been inspiring and which have slowed down the
process?
A positive aspect was that being environmentally friendly is fashionable, and since majority of
employees in Yawal identify with the company, - there were no problems with resistance to
change, although especially at the beginning, when the process was not fully explained - support
from the management team was an engine for the process.
Training courses have not only introduced changes that influence everyone's performance but
also were oriented towards generating motivation within the company. It was achieved mainly by
showcasing that even a small contribution to a improvement of product can have a great
translation into client' satisfaction. And finally that their salaries depend on this satisfaction.
Recommendations
Being environmentally responsible is extremely important. We should realise that consequences
of our actions on natural environment can influence future generation and our well being in the
future depends on this inheritance. Even small improvement can be a great contribution to
common wealth.
Environmental auditing is not the only option since sometimes it can generate huge costs
especially for SMEs. (Perhaps SMEs among each other can audit compliance with norms and
declarations?) Supply chain management is also a good idea as a channel through which the
responsible corporate culture can be popularised. ( currently in Poland, environmental auditing
can be financially supported by financial aid from the European Union ).
Finally, much greater positive value will be produced if local government is aware of the new
global / market requirements which will capture our country soon. They should also be agents of
change – and act as facilitator and spread those good cases among the local companies. Initially,
although invited, no representative of local government was present on training sessions. Only
after prolonged intervention did they decide to come and finally admitted about necessity of those
changes. Currently, the local government as an eligible body, is applying for funding so that such
management
Marcin Walotek , Yawal System Herby, Poland