A cybernetic methodology to study and design human activities

This thesis offers a methodology to study and design effective communication mechanisms in human activities. The methodology is focused in the management of complexity. It is argued that complexity is not something objective that can be worked out analytically, but something subjective that depends on the viewpoint. Also it is argued that while certain social contexts may inhibit, others may enhance the viewpoint's capabilities to deal with complexity. Certain organisation structures are more likely than others to allow individuals to release their potentials. Thus, the relevance of studying and designing effective organisations. The first part of the thesis offers a `cybernetic methodology' for problem solving in human activities, the second offers a `method' to study and design organisations. The cybernetics methodology discussed in this work is rooted in second order cybernetics, or the cybernetics of the observing systems (Von Foester 1979, Maturana and Varela 1980). Its main tenet is that the known properties of the real world reside in the individual and not in the world itself. This view, which puts emphasis in a, by nature, one sided and unilateral appreciation of reality, triggers the need for dialogue and conversations to construct it. The `method' to study and design organisations, it based on Beer's Viable System Model (Beer 1979, 1981, 1985). This model permits us to assess how successful is an organisation in coping with its environmental complexity, and, moreover, permits us to establish how to make more effective the responses to this complexity. These features of the model are of great significance in a world where complexity is perceived to be growing at an unthinkable pace. But, `seeing' these features of the model assumes an effective appreciation of organisational complexity; hence the need for the methodological discussions offered by the first part of the thesis.

Growth expectations of business owners:impact of human capital, firm characteristics and environmental transition

This paper presents an empirical study based on a survey of 399 owners of small and medium size companies in Lithuania. Applying bivariate and ordered probit estimators, we investigate why some business owners expect their firms to expand, while others do not. Our main findings provide evidence that SME owner's generic and specific human capital matter. Those with higher education and 'learning by doing' attributes, either through previous job experience or additional entrepreneurial experience, expect their businesses to expand. The expectations of growth are positively related to exporting and non-monotonically to enterprise size. In addition, we analyse the link between the perceptions of constraints to business activities and growth expectations and find that the factors, which are perceived as main business barriers, are not necessary those which are associated with reduced growth expectations. In particular, perceptions of both corruption and of inadequate tax systems seem to affect growth expectations the most.

Impression management, myth creation and fabrication in private social and environmental reporting:insights from Erving Goffman

This paper explores the nature of private social and environmental reporting (SER). From interviews with UK institutional investors, we show that both investors and investees employ Goffmanesque, staged impression management as a means of creating and disseminating a dual myth of social and environmental accountability. The interviewees' utterances unveil private meetings imbued with theatrical verbal and physical impression management. Most of the time, the investors' shared awareness of reality belongs to a Goffmanesque frame whereby they accept no intentionality, misrepresentation or fabrication, believing instead that the 'performers' (investees) are not intending to deceive them. A shared perception that social and environmental considerations are subordinated to financial issues renders private SER an empty encounter characterised as a relationship-building exercise with seldom any impact on investment decision-making. Investors spoke of occasional instances of fabrication but these were insufficient to break the frame of dual myth creation. They only identified a handful of instances where intentional misrepresentation had been significant enough to alter their reality and behaviour. Only in the most extreme cases of fabrication and lying did the staged meeting break frame and become a genuine occasion of accountability, where investors demanded greater transparency, further meetings and at the extreme, divested shares. We conclude that the frontstage, ritualistic impression management in private SER is inconsistent with backstage activities within financial institutions where private financial reporting is prioritised. The investors appeared to be in a double bind whereby they devoted resources to private SER but were simultaneously aware that these efforts may be at best subordinated, at worst ignored, rendering private SER a predominantly cosmetic, theatrical and empty exercise. © 2013 Elsevier Ltd.

Green operations initiatives in the automotive industry:an environmental reports analysis and benchmarking study

Purpose: The purpose of this paper is to focus on investigating and benchmarking green operations initiatives in the automotive industry documented in the environmental reports of selected companies. The investigation roadmaps the main environmental initiatives taken by the world's three major car manufacturers and benchmarks them against each other. The categorisation of green operations initiatives that is provided in the paper can also help companies in other sectors to evaluate their green practices. Design/methodology/approach: The first part of the paper is based on existing literature on the topic of green and sustainable operations and the "unsustainable" context of automotive production. The second part relates to the roadmap and benchmarking of green operations initiatives based on an analysis of secondary data from the automotive industry. Findings: The findings show that the world's three major car manufacturers are pursuing various environmental initiatives involving the following green operations practices: green buildings, eco-design, green supply chains, green manufacturing, reverse logistics and innovation. Research limitations/implications: The limitations of this paper start from its selection of the companies, which was made using production volume and country of origin as the principal criteria. There is ample evidence that other, smaller, companies are pursuing more sophisticated and original environmental initiatives. Also, there might be a gap between what companies say they do in their environmental reports and what they actually do. Practical implications: This paper helps practitioners in the automotive industry to benchmark themselves against the major volume manufacturers in three different continents. Practitioners from other industries will also find it valuable to discover how the automotive industry is pursuing environmental initiatives beyond manufacturing, apart from the green operations practices covering broadly all the activities of operations function. Originality/value: The originality of the paper is in its up-to-date analysis of environmental reports of automotive companies. The paper offers value for researchers and practitioners due to its contribution to the green operations literature. For instance, the inclusion of green buildings as part of green operations practices has so far been neglected by most researchers and authors in the field of green and sustainable operations. © Emerald Group Publishing Limited.

Understanding manufacturing companies' environmental decision making structures

This paper provides an understanding of the current environmental decision structures within companies in the manufacturing sector. Through case study research, we explored the complexity, robustness and decision making processes companies were using in order to cope with ever increasing environmental pressures and choice of environmental technologies. Our research included organisations in UK, Thailand, and Germany. Our research strategy was case study composed of different research methods, namely: focus group, interviews and environmental report analysis. The research methods and their data collection instruments also varied according to the access we had. Our unity of analysis was decision making teams and the scope of our investigation included product development, environment & safety, manufacturing, and supply chain management. This study finds that environmental decision making have been gaining importance over the time as well as complexity when it is starting to move from manufacturing to non,manufacturing activities. Most companies do not have a formal structure to take environmental decisions; hence, they follow a similar path of other corporate decisions, being affected by organizational structures besides the technical competence of the teams. We believe our results will help improving structures in both beginners and leaders teams for environmental decision making across the different departments.

Corporate environmental responsibility and accountability:what chance in vulnerable Bangladesh?

Bangladesh has recently been enjoying significant economic growth mainly arising from an export led development strategy. However, in that process its natural environment has been degraded and become more vulnerable in geophysical terms (e.g. environmental pollution). Much of the Bangladeshi population are also vulnerable in socio-economic terms due primarily to widespread poverty. In this context we ask, albeit sceptically, whether there is any chance of holding corporations to account for their environmental responsibilities. Using the notions of vulnerability and ecological rifts we answer this question by providing evidence from published sources and a series of 32 semi-structured interviews with Bangladeshi stakeholder groups. Key findings include, inter alia, corporate reluctance to take responsibility for the environmental impact of their activities. Our interviewees discuss the possibility of a role for mandatory corporate reporting in enhancing corporate accountability and we argue that this is essential if the contradictions and irrationalities of the globalized capitalist system are to be made visible. Achieving such accountability, however, will not be easy due to a lack of political will and the prohibitive costs involved. Incurring such costs could raise the dangerous prospect of Bangladesh losing business to other, less regulated, economies.

Social and environmental accountability in developing countries

The principal aim of this chapter is to undertake a critical review of the social and environmental accountability of global business activities in developing countries. While global business activities have contributed to the economic development of developing countries they have many adverse social and environmental consequences which are often under-studied. I explore the role of accounting in making those consequences visible. The chapter, however, concludes that while social and environmental accounting has the potential to raise the visibility of social and environmental impacts of corporate activities it often fails to do so particularly under the current voluntary disclosure regime where corporations can choose what to report and how to report. This is even more pronounced in the developing countries because of their vulnerabilities arising from various social and environmental problems. The chapter argues for a case of ‘surrogate accountability’ as an alternative to the current corporate driven form of accountability.

Modifying the yield factor based on more efficient use of fertilizer — The environmental impacts of intensive and extensive agricultural practices

The aim of this article is to draw attention to calculations on the environmental effects of agriculture and to the definition of marginal agricultural yield. When calculating the environmental impacts of agricultural activities, the real environmental load generated by agriculture is not revealed properly through ecological footprint indicators, as the type of agricultural farming (thus the nature of the pollution it creates) is not incorporated in the calculation. It is commonly known that extensive farming uses relatively small amounts of labor and capital. It produces a lower yield per unit of land and thus requires more land than intensive farming practices to produce similar yields, so it has a larger crop and grazing footprint. However, intensive farms, to achieve higher yields, apply fertilizers, insecticides, herbicides, etc., and cultivation and harvesting are often mechanized. In this study, the focus is on highlighting the differences in the environmental impacts of extensive and intensive farming practices through a statistical analysis of the factors determining agricultural yield. A marginal function is constructed for the relation between chemical fertilizer use and yield per unit fertilizer input. Furthermore, a proposal is presented for how calculation of the yield factor could possibly be improved. The yield factor used in the calculation of biocapacity is not the marginal yield for a given area, but is calculated from the real and actual yields, and this way biocapacity and the ecological footprint for cropland are equivalent. Calculations for cropland biocapacity do not show the area needed for sustainable production, but rather the actual land area used for agricultural production. The proposal the authors present is a modification of the yield factor and also the changed biocapacity is calculated. The results of statistical analyses reveal the need for a clarification of the methodology for calculating marginal yield, which could clearly contribute to assessing the real environmental impacts of agriculture.

Modifying the yield factor based on more efficient use of fertilizer — The environmental impacts of intensive and extensive agricultural practices

The aim of this article is to draw attention to calculations on the environmental effects of agriculture and to the definition of marginal agricultural yield. When calculating the environmental impacts of agricultural activities, the real environmental load generated by agriculture is not revealed properly through ecological footprint indicators, as the type of agricultural farming (thus the nature of the pollution it creates) is not incorporated in the calculation. It is commonly known that extensive farming uses relatively small amounts of labor and capital. It produces a lower yield per unit of land and thus requires more land than intensive farming practices to produce similar yields, so it has a larger crop and grazing footprint. However, intensive farms, to achieve higher yields, apply fertilizers, insecticides, herbicides, etc., and cultivation and harvesting are often mechanized. In this study, the focus is on highlighting the differences in the environmental impacts of extensive and intensive farming practices through a statistical analysis of the factors determining agricultural yield. A marginal function is constructed for the relation between chemical fertilizer use and yield per unit fertilizer input. Furthermore, a proposal is presented for how calculation of the yield factor could possibly be improved. The yield factor used in the calculation of biocapacity is not the marginal yield for a given area, but is calculated from the real and actual yields, and this way biocapacity and the ecological footprint for cropland are equivalent. Calculations for cropland biocapacity do not show the area needed for sustainable production, but rather the actual land area used for agricultural production. The proposal the authors present is a modification of the yield factor and also the changed biocapacity is calculated. The results of statistical analyses reveal the need for a clarification of the methodology for calculating marginal yield, which could clearly contribute to assessing the real environmental impacts of agriculture.

Happiness, environmental protection and market economy

The manufacturing sector is leaving the West for Asia’s low wages and good working culture. Europe would be better off keeping these manufacturing activities, slowing down wage inflation and what is more, letting a young, cheaper workforce from the East settle down within their borders. This would aid in preserving the diverse economic structure which has been characteristic for Europe.Beside the economic growth there are two more concepts which have turned into the “holy cows” of economics during the last fifty years. One is the need to constantly improve labor productivity and the other is increasing competitiveness of nations. The high labor productivity of some countries, induces severe unemployment in the globalized world. In the other hand it is high time we understood that it is not competition, but cooperation that brings more happiness to humanity.Should we still opt for “happiness” and “sanity”, it is quite obvious that we all should, in economists’ terms, define our individual welfare functions corresponding to our own set of values, staying free from the influence of media, advertisements and fashion. The cornerstone to all this is the intelligent citizen who prefers local goods and services.

A Consumption-Based Approach to Carbon Emission Accounting – Sectoral Differences and Environmental Benefits

In recent years there has been growing concern about the emission trade balances of countries. This is due to the fact that countries with an open economy are active players in international trade. Trade is not only a major factor in forging a country’s economic structure, but contributes to the movement of embodied emissions beyond country borders. This issue is especially relevant from the carbon accounting policy and domestic production perspective, as it is known that the production-based principle is employed in the Kyoto agreement. The research described herein was designed to reveal the interdependence of countries on international trade and the corresponding embodied emissions both on national and on sectoral level and to illustrate the significance of the consumption-based emission accounting. It is presented here to what extent a consumption-based accounting would change the present system based on production-based accounting and allocation. The relationship of CO2 emission embodied in exports and embodied in imports is analysed here. International trade can blur the responsibility for the ecological effects of production and consumption and it can lengthen the link between consumption and its consequences. Input-output models are used in the methodology as they provide an appropriate framework for climate change accounting. The analysis comprises an international comparative study of four European countries (Germany, the United Kingdom, the Netherlands, and Hungary) with extended trading activities and carbon emissions. Moving from a production-based approach in climate policy to a consumption-based principle and allocation approach would help to increase the efficiency of emission reductions and would force countries to rethink their trading activities in order to decrease the environmental load of production activities. The results of this study show that it is important to distinguish between the two emission accounting approaches, both on the global and the local level.

A kereskedelmi láncok CSR-tevékenysége – a versenyképességük fokozása (CSR activities of commercial chains – increasing their competitiveness)

A kereskedelmi láncok különböző stratégiákat választhatnak, illetve alkalmazhatnak a társadalmi, gazdasági és környezeti kihívások kezelésére, a társadalmi normákhoz és elvárásokhoz való igazodáshoz. A tanulmányban a szerző azt vizsgálja, hogy milyen összefüggés van a társadalmi felelősségvállalásuk és a versenyképességük között, s a felelős magatartásuk javítja-e versenypozíciójukat. Bemutatja, hogy hazai viszonylatban a nagyobb forgalmat lebonyolító kereskedelmi láncok milyen CSR-tevékenységet végeznek, ez beépült-e hosszabb távú üzleti stratégiájukba, és mennyiben járul/járulhat hozzá versenyképességük fokozásához. Elemzi több kereskedelmi láncnál, hogy miképpen sikerült összeegyeztetni társadalmi felelősségvállalásukat a profitérdekeltségükkel, továbbá megteremthető-e a felelős működésük és a költséghatékony gazdálkodásuk összhangja. Többek között rámutat arra, hogy a gazdasági és külső szociális felelősségvállalásuk, továbbá a versenyképességük közötti pozitív korreláció megkérdőjelezhetetlen, ami win-win szituációt alakít ki. ______ Commercial companies can embark on and apply different strategies to tackle social, economic and environmental challenges and to comply with the standards and expectations of the community. In the study the author analyses the relationship between corporate social responsibility activities and competitiveness, and whether or not the responsible attitude of these companies improves their competitive position. She outlines the CSR activities of high turnover commercial chains in Hungary, examining their incorporation into the company’s longer term business strategy, and how these activities may contribute to their enhanced competitiveness. She will analyse several commercial chains from the point of view of their success in harmonizing their CSR with their profit making, and whether they can create the harmony of an environmentally friendly attitude and cost-effective operations. Among other findings, the author concludes that there is an unquestionable correlation between corporate economic and outside social responsibility and profitability, which creates a definite win-win situation.

The potential role of environmental exposures and genomic signaling in development of central nervous system tumors

The etiology of central nervous system tumors (CNSTs) is mainly unknown. Aside from extremely rare genetic conditions, such as neurofibromatosis and tuberous sclerosis, the only unequivocally identified risk factor is exposure to ionizing radiation, and this explains only a very small fraction of cases. Using meta-analysis, gene networking and bioinformatics methods, this dissertation explored the hypothesis that environmental exposures produce genetic and epigenetic alterations that may be involved in the etiology of CNSTs. A meta-analysis of epidemiological studies of pesticides and pediatric brain tumors revealed a significantly increased risk of brain tumors among children whose mothers had farm-related exposures during pregnancy. A dose response was recognized when this risk estimate was compared to those for risk of brain tumors from maternal exposure to non-agricultural pesticides during pregnancy, and risk of brain tumors among children exposed to agricultural activities. Through meta-analysis of several microarray studies which compared normal tissue to astrocytomas, we were able to identify a list of 554 genes which were differentially expressed in the majority of astrocytomas. Many of these genes have in fact been implicated in development of astrocytoma, including EGFR, HIF-1α, c-Myc, WNT5A, and IDH3A. Reverse engineering of these 554 genes using Bayesian network analysis produced a gene network for each grade of astrocytoma (Grade I-IV), and ‘key genes’ within each grade were identified. Genes found to be most influential to development of the highest grade of astrocytoma, Glioblastoma multiforme (GBM) were: COL4A1, EGFR, BTF3, MPP2, RAB31, CDK4, CD99, ANXA2, TOP2A, and SERBP1. Lastly, bioinformatics analysis of environmental databases and curated published results on GBM was able to identify numerous potential pathways and geneenvironment interactions that may play key roles in astrocytoma development. Findings from this research have strong potential to advance our understanding of the etiology and susceptibility to CNSTs. Validation of our ‘key genes’ and pathways could potentially lead to useful tools for early detection and novel therapeutic options for these tumors.

Impact of Late Holocene climate variability and anthropogenic activities on Biscayne Bay (Florida, U.S.A.): Evidence from diatoms

Shallow marine ecosystems are experiencing significant environmental alterations as a result of changing climate and increasing human activities along coasts. Intensive urbanization of the southeast Florida coast and intensification of climate change over the last few centuries changed the character of coastal ecosystems in the semi-enclosed Biscayne Bay, Florida. In order to develop management policies for the Bay, it is vital to obtain reliable scientific evidence of past ecological conditions. The long-term records of subfossil diatoms obtained from No Name Bank and Featherbed Bank in the Central Biscayne Bay, and from the Card Sound Bank in the neighboring Card Sound, were used to study the magnitude of the environmental change caused by climate variability and water management over the last ~ 600 yr. Analyses of these records revealed that the major shifts in the diatom assemblage structures at No Name Bank occurred in 1956, at Featherbed Bank in 1966, and at Card Sound Bank in 1957. Smaller magnitude shifts were also recorded at Featherbed Bank in 1893, 1942, 1974 and 1983. Most of these changes coincided with severe drought periods that developed during the cold phases of El Niño Southern Oscillation (ENSO), Atlantic Multidecadal Oscillation (AMO) and Pacific Decadal Oscillation (PDO), or when AMO was in warm phase and PDO was in the cold phase. Only the 1983 change coincided with an unusually wet period that developed during the warm phases of ENSO and PDO. Quantitative reconstructions of salinity using the weighted averaging partial least squares (WA-PLS) diatom-based salinity model revealed a gradual increase in salinity at the three coring locations over the last ~ 600 yr, which was primarily caused by continuously rising sea level and in the last several decades also by the reduction of the amount of freshwater inflow from the mainland. Concentration of sediment total nitrogen (TN), total phosphorus (TP) and total organic carbon (TOC) increased in the second half of the 20th century, which coincided with the construction of canals, landfills, marinas and water treatment plants along the western margin of Biscayne Bay. Increased magnitude and rate of the diatom assemblage restructuring in the mid- and late-1900s, suggest that large environmental changes are occurring more rapidly now than in the past.

Four essays of environmental risk-mitigation

Expected damages of environmental risks depend both on their intensities and probabilities. There is very little control over probabilities of climate related disasters such as hurricanes. Therefore, researchers of social science are interested identifying preparation and mitigation measures that build human resilience to disasters and avoid serious loss. Conversely, environmental degradation, which is a process through which the natural environment is compromised in some way, has been accelerated by human activities. As scientists are finding effective ways on how to prevent and reduce pollution, the society often fails to adopt these effective preventive methods. Researchers of psychological and contextual characterization offer specific lessons for policy interventions that encourage human efforts to reduce pollution. This dissertation addresses four discussions of effective policy regimes encouraging pro-environmental preference in consumption and production, and promoting risk mitigation behavior in the face of natural hazards. The first essay describes how the speed of adoption of environment friendly technologies is driven largely by consumers' preferences and their learning dynamics rather than producers' choice. The second essay is an empirical analysis of a choice experiment to understand preferences for energy efficient investments. The empirical analysis suggests that subjects tend to increase energy efficient investment when they pay a pollution tax proportional to the total expenditure on energy consumption. However, investments in energy efficiency seem to be crowded out when subjects have the option to buy health insurance to cover pollution related health risks. In context of hurricane risk mitigation and in evidence of recently adopted My Safe Florida Home (MSFH) program by the State of Florida, the third essay shows that households with home insurance, prior experience with damages, and with a higher sense of vulnerability to be affected by hurricanes are more likely to allow home inspection to seek mitigation information. The fourth essay evaluates the impact of utility disruption on household well being based on the responses of a household-level phone survey in the wake of hurricane Wilma. Findings highlight the need for significant investment to enhance the capacity of rapid utility restoration after a hurricane event in the context of South Florida.