The impact of intelligent systems of manufacturing on corporate social responsibility: a conceptual model.

Ionescu, Sorin ; Dumitrescu, Corina ; Militaru, Gheorghe 等

1. INTRODUCTION

This paper focuses on the social responsibility of the manufacturing companies particularly those which are using the intelligent system of manufacturing (ISM). The purpose of this study is to provide a conceptual model which highlights the impact of the intelligence systems of manufacturing on the corporate social responsibility (CSR).

The deductive method used in this research was based on literature review and companies reports. This method allowed the identification of the determinants of CSR and construction a conceptual model. In addition, the theoretical model is the result of a research project focused on improving the corporate social initiatives that use core competences to enhance social welfare.

This paper is divided into five sections. Following this introductory section, the second section explores the key concepts and literature review. The third section presents the determinants of social responsibility and hypothesis. The next section provides a theoretical model for the social responsibility of the ISM. The final section provides some limitations and suggestions for future research and concluding remarks.

2. KEY CONCEPTS AND LITERATURE REVIEW

Corporate social responsibility is a key differentiation factor that can be sustained in the longer term. The key factor is to make CSR uptake a voluntary process. A working definition of CSR may be used from the World Business Council for Sustainable Development. "CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large" (Collier & Esteban, 2007).

The basic social responsibility of a manufacturing company is to stay in business. Leading companies are looking to replace the traditional ways of manufacturing by improving manufacturing quality, quick response to the market, and lower unit costs. Using computers to integrate manufacture, planning and linking together a variety of operating and management systems has significantly simplified the collecting, storage and processing of data about key processes in manufacturing. At the core of this transaction is the recognition that corporate values have to be taken into consideration more seriously and be incorporated throughout the company.

CSR has the potential to shape the strategic context for companies and can exploit longer-term opportunities. The real advantages will only be realised once CSR is tied to business strategy. Furthermore, improving abilities in creative business strategy offers new opportunities for companies to realize efficiency through collaboration.

Social dimensions of competitive context are factors in the external environment that significantly affect the underlying drivers of competitiveness in those places where the company operates. For example, in the auto industry Volvo has chosen to make safety a central element of its competitive positioning, while Toyota has built a competitive advantage from the environmental benefits of its hybrid technology. Toyota is to concern about automobile emissions by the hybrid electric/gasoline vehicle that has produced competitive advantage and environmental benefits (Porter & Kramer, 2006).

Intelligent manufacturing systems improve the efficiency with which renewable and non-renewable resources are used. Technology can be used for solving many problems of the society. In the following paragraphs, we will present some of the main intelligent systems of manufacturing.

Computer-integrating manufacturing (CIM) is a method of manufacturing in which the entire production process is controlled by computer. This system provides a better interaction among various components and functions of manufacturing (Stephen et al., 2007).

Computer-aided manufacturing (CAM) is a programming tool that allows a company to manufacture physical models using computer-aided design (CAD) programs.

Computer-aided quality assurance (CAQ) is the engineering application of computers and computer controlled machines for the definition and inspection of the quality of products.

Enterprise resource planning (ERP) systems integrate several data sources and processes of an organization into a unified system. The two key components of an ERP system are a common database and modular software design (O'Brain & Marakas, 2007).

3. DETERMINANTS OF CSR AND HYPOTHESIS

Our literature review about the intelligent system of manufacturing has identified four determinants of social responsibility. They have been drawn deductively from the literature about intelligent systems of manufacturing. These determinants are: clean manufacturing processes, energy efficient processes, more flexibility and autonomy in processing modules that compose manufacturing systems, and technology innovation in manufacturing processes.

Clean manufacturing processes (F1). Manufacturing processes designed to minimize environmental impact by using the minimum amount of energy and raw materials possible, increased reuse, recycling and recovery, producing of more sustainable products, and producing limited waste or emissions (green technology). Increasing the life of products through better design is pollution prevention.

Energy efficiency of manufacturing processes (F2). For some industries, gas and electricity represent a major portion of total operating costs. Reducing energy consumption can significantly decrease these expenses and global warming impact. Using less energy reduces carbon emissions and other air pollutants that result from the burning of fossil fuels.

Flexibility and autonomy (F3). Competition in the manufacturing industry over the next decade will be focused on the ability of being flexible and rapid response to unanticipated changes while keeping costs at the mass-production level. The goal of this system is to produce and deliver customized products rapidly while keeping costs at the mass-production level. The key for adjusting the manufacturing capability is to reconfigure the system, developing and integrating new functions when necessary (Heizer & Render, 2006).

Technology innovation in manufacturing processes (F4). Technology today can deploy new business processes that support environmentally sound practices and reduce costs by conserving energy and other natural resources. Other technologies like enterprise resource planning (ERP), logistics applications, supply chain management applications, product lifecycle management (PLM) also enable businesses to be more social responsible (Senguta et al., 2006).

Determinants of social responsibility can have both positive and negative effects on CSR. Nevertheless, since drivers have been positively related to CSR and long-term performance of companies, we propose that:

H1: Clean manufacturing and energy efficient of manufacturing processes have a positive impact on CSR

H2: Flexibility and technology innovation in manufacturing processes will have a significant effect on the CSR and long-term success of companies

4. THE RESULTS OF RESEARCH

The main result of this research based on both the hypothesis mentioned above and the determinants of CSR is the theoretical model of the impact of ISM on CSR. This model is depicted in Fig. 1.

[FIGURE 1 OMITTED]

This model indicates that there is a positive relationship between investment in knowledge, innovation and development of new intelligent systems of manufacturing, and the social responsibility of the manufacturing companies.

The major contribution of this theoretical model to managers and professionals is that it offers a background to understand how an intelligent system of manufacturing can increase the efficiency and social responsibility of the manufacturing companies. Although it is difficult to measure the impact of each ISM on the CSR, the findings from this study show that all have a considerable influence on the CSR.

The results of the study shown in Fig 1 emphasize the impact of the determinants on CSR. Clean manufacturing processes (F1) and energy efficiency of manufacturing processes (F2) have high impact on environment while flexibility and autonomy (F3) has high impact on social welfare. The impact of technology innovation in manufacturing processes (F4) is lower because is difficult to quantify.

The driving force behind the growth of advanced manufacturing is the development and implementation of advanced technologies and processes. The future of advanced manufacturing depends on both continuous investment in research (knowledge) and well trained labour. These systems enable industry to contribute to global wealth creation. This finding has theoretical and practical implications in that, the manufacturing companies wish the improvement of their social responsibility through higher investments in ISM.

5. CONCLUSIONS

This study helps managers to understand the way in which ISM influence CSR. For this reason four types of determinants were identified, namely, the clean manufacturing processes, energy efficient of manufacturing processes, flexibility and autonomy, and the technology innovation in manufacturing processes. These determinants exert different impacts on CSR.

In this research the authors have noticed that CSR as one important part of manufacturing systems is not appreciated enough. Therefore, the conceptual model was necessary to integrate the influence of all determinants on CSR. From this model it is observed that investments in knowledge increase the innovation potential with direct influence on technologies and new systems of manufacturing especially in intelligent systems of manufacturing.

In further research we will develop an empirical research to test our hypotheses and validate the model. The development of the model will allow the quantification of impact levels.

6. REFERENCES

Collier, J. & Esteban, R. (2007). Corporate social responsibility and employee commitment. Business Ethics: A European Review, Vol. 16, No. 1, (January 2007), pp. 19-33, ISSN 0962-8770

Heizer, J. & Render, B. (2006). Operations Management, Pearson Prentice Hall, New Jersey, ISBN 0-13-185755-X

O'Brain, J. & Marakas G. (2007). Enterprise Information Systems, McGraw-HiMrwin, New York, ISBN-10: 0-07-110710-X

Porter, M. & Kramer, M. (2006). Strategy and Society. The link between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, December 2006, pp. 78-92, ISSN 0017-8012

Senguta, K. Heiser D. & Cook L. (2006). Manufacturing and Service Supply Chain Performance: A Comparative Analysis. The Journal of Supply Chain Management Vol. 9, pp. 4-15, ISSN: 1523-2409

Stephen H. Cumming M. & Philips A. (2007). Management Information Systems. For the information age, McGrawHill/Irwin, New York, ISBN 007305223X