Background context. The concept and the word “sustainability” in relation to industrial processes and products has been so heavily overused, with too many different meanings applied to it. Sustainability takes much more than simple problem-solving or some improvements in the existing consumption and production system. It needs a discontinuous leap from the existing level of actions leading to transformations where the reality changes its form. Research argument. Even reducing unsustainability is not the same as creating sustainability, it is still makes great sense to prevent and remove the causes and sources of unsustainability but at the same time it should be recognized that this is just attacking the symptoms. In this context, reduction of unsustainability of industrial development may be considered as a process of continuous improvement of environmental, economic and social performance in industry. Such approach allows specialists to identify particular process performance parameters that could be controlled and managed. Integration of sustainability management into the overall business planning is very important aspect to be tackled because efficiency of management systems largely depends on connections between the management systems and strategic/ financial decision making. Enterprises often lack explicit information about their activities, particularly reliable quantitative information on technological processes and various sustainability aspects. Moreover, the existing data information is seldom systematized in a suitable form for effective decision making. Aim. The main research goal was to develop the theoretical background, the structure and performance evaluation of two type management systems (single-loop and cascade), reducing industrial enterprise unsustainability by incremental innovations. Method. The research method was based on the performance analysis of more than 100 resources efficient and cleaner production incremental innovations implemented in industrial companies in the period 1996-2016. The performance of two type management systems was evaluated according three dimensions of sustainability: economic, environmental and social. Results. To ensure effective decision making aimed at reduction of performance unsustainability, a cascade performance management system based on three hierarchical levels (process, activity and strategic decision making) was recommended for use in enterprises because it ensures involvement of decision makers at all management levels and enables effective decision making at different managerial and operational levels. Conclusions. Procedure for unsustainability management involves the compliance of enterprise’s processes, activities, and strategic decision making with legal and other requirements (life quality, etc.), new scientific knowledge, and stakeholder expectations which altogether constitute the system’s input information. Decision makers at different management levels are provided with feedback information based on the indicators of enterprise’s sustainability performance. The material presented in this paper is based on the authors’ theoretical and practical experience gained from a number of national and international projects which focused unsustainability performance improvement and were implemented jointly by industrial enterprises.
Keywords: resource efficient and cleaner production, incremental innovations, cascade management, performance indicators, reduction of unsustainability.
5a. Corporate sustainability and CSR
