ENVIRONMENTALLY FRIENDLY UMKM, DRIVER FOR IMPLEMENTATION GREEN MANAGEMENT

Abstract

Planet earth is currently faced with various environmental problems that are worrisome and threaten business sustainability. The manufacturing sector needs to take better and more consistent responsibility in mitigating this problem. Not only large industries, but also small industries that are widely cultivated such as MSMEs. The application of green management (GM) is an alternative to embrace sustainability. GM can use a variety of techniques that have an impact on reducing waste and environmental pollution. However, MSMEs face obstacles based on management functions, professionalism, and knowledge in implementing GM practices. The purpose of this research is to understand the main drivers for MSME Industry, in implementing Green Management in Banda Aceh City. The perception data of 60 MSME actors taken randomly was used in this study. The ranking of driving factors uses the Fuzzy TOPSIS method which is one of the Multi Criteria Decision Making (MCDM) methods. This study found that the five main drivers of GM implementation are increasing competitiveness (driver 1), incentives provided by the government (driver 2), law enforcement (driver 3), commitment from top management (driver 4), product distribution (driver 5). Employee awareness/motivation, customer demand, pressure from local community, environmental knowledge/technology, raw material sourcing, cost savings, financial resources, efficiency and pressure from business trade associations.