Mgmt 110- Ch 14
Examples of Environmental Non-Governmental Organizations (ENGOs): Energy probe
"Energy Probe is a consumer and environmental research team, active in the fight against nuclear power, and dedicated to resource conservation, economic efficiency, and effective utility regulation." Current priorities include restoring strong regulation of energy markets, promoting competition in naturally competitive market; promoting clean energy sources, stopping nuclear energy, and protect consumer interests when considering energy options.
Carbon Pricing: Carbon tax
Carbon Tax: governments impose a fee on carbon: the more a company emits, the more they pay. The price determines how effective the policy will be at lowering emissions—the higher the price, the greater the reductions
A poll of Canadian business leaders also indicated that they are not serious about the environment.
A poll of Canadian business leaders also indicated that they are not serious about the environment. Only 12 percent had a policy for auditing the impact of greenhouse gases from their operations. While 83 percent thought a corporation's responsibility was to earn a return for shareholders, 56 percent did indicate that corporations had an obligation to adopt low-emission environmental practices. Many of the respondents doubted the reliability of the science behind climate change, and some thought Kyoto was a scam
Hendry Study
A study identified the factors that lead ENGOs to target particular corporations. Hendry reviewed existing research on the environmental movement, stakeholder theory, and corporate social performance from which he formulated eight propositions that might explain how target corporations are selected. Five case studies of ENGOs were used to examine the validity of the propositions
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Employees
Ethical Issues and Responsibilities for Managers: Workplace exposures to environmental problems (e.g., indoor air pollution) Refusal to perform tasks causing environmental problems Whistleblowing on employer
Carbon Pricing
examples of market-driven environmentalism are carbon pricing, a financial instrument that businesses and governments are using to reduce carbon emissions, which can be done in one of two ways: Cap-and-trade Carbon tax
Market environmentalism
market environmentalism exists where economic incentives created by the market are more effective at protecting the environment than is government intervention.12 Not everyone agrees with the market approach and argues that regulation and new technologies are more effective.13 Nevertheless, market approaches are being considered and to some extent implemented.
How to deal with environmental issues
Management positions and committees should be created to deal with the environment issue. Structural arrangements are put in place to ensure environmental matters are addressed starting at the top with the board of directors; some boards have environmental committees. It is key to have top management commitment so that there are practical principles to guide the corporation's environmental efforts, to integrate environmental affairs with operations, and to encourage environmental professionals to meet mounting environmental requirements.
Environmental policy statements or codes
Many corporations have prepared environmental policy statements or codes. The purpose of environmental codes is much the same as it is for codes of ethics: to increase awareness of the issue throughout the organization and to signal to other stakeholders that the enterprise is active in this area. Corporations are being recognized for their efforts at minimizing their impact on the environment.
Ozone
Ozone is a naturally occurring gas, formed from normal oxygen, that protects Earth by filtering out ultraviolet (UV) radiation from the Sun. The thinning of the ozone layer in the upper atmosphere has resulted in increased UV radiation
Examples of Environmental Non-Governmental Organizations (ENGOs): Pollution Probe
Pollution Probe is a Canadian charitable environmental organization whose mission is "to improve the health and well-being of Canadians by advancing policy that achieves positive, tangible environmental change." Some of its main areas of interest are: human health, climate, energy, technology, waste, and water.
Pollution
Pollution involves any form of contamination in the environment. Business is under pressure to reduce its polluting of the environment.
Research regarding consumers willingness to pay more for green products
Research has found that the attributes of the sustainable products influence these purchase decisions. Attributes like "safe and gentle" were valued for products like baby shampoo; attributes like "strong and tough" were preferred when purchasing car shampoo. Also, consumers were more likely to use green products when being watched. The latter point was found to also be the case in other studies. Although consumers expected corporations to address environmental issues, they liked to give the impression that they are environmentally conscious when this may not be so. Consumers responded more positively to advertisements informing them how they can save money than to those advertisements promoting the benefits to the environment
Research suggest what about environmental practices?
Research suggests that environmental practices and performance are key elements to corporate success, including achieving market leadership and keeping ahead of competitors. A study found that environmental activities enabled corporations to stay ahead of competition
Challenges for corporations if the environment is ignored
Several challenges for corporations exist if the environment is ignored. The corporate image deteriorates, and revenues may suffer as customers prefer products and services less damaging to the environment. Investors become more difficult to attract as the enterprises cannot meet the criteria for environmental and ethical screening. Material and production costs may increase faster than for corporations practising reduction and recycling. The financial penalties are becoming higher and directors and managers are being held legally responsible for pollution. Insurance premiums are high for corporations that do not reduce their pollution risk. Alienation may occur from the local community, and failure to act may provoke stricter legislation and regulation.
What are some business enterprises doing to focus on environmental matters?
Some business enterprises are hiring senior managers and other staff to focus on environmental matters alone. Senior managers' positions carry titles such as vice-president, environment; environmental director; corporate manager of environmental affairs; and environmental coordinator. In addition to senior managers there are numerous titles for staff with various specialties in the environment, for example vegetation management biologist, hydrogeologist, and site remediation engineer. One of the challenges is to find individuals with the appropriate environmental expertise and knowledge and adequate managerial capabilities, as a combination of managerial and technical expertise is necessary.
Standard environmentalism
Standard environmentalism occurs when government regulation is a necessary remedy for the market's failure to provide enough environmental amenities.
Sustainable development
Sustainable development is defined as development ensuring that the use of resources and the impact on the environment today does not damage prospects for the use of resources or the environment by future generations. Sustainable development has been endorsed by many businesspersons as an approach that allows environmental and economic concerns to coincide and makes economic progress possible.
From a strategic perspective, corporations can choose among the following strategies in their approach to environmental concerns: Sustainable development
Sustainable development—Businesses that follow this strategy integrate the concepts of sustainable development into their business strategies and environmental policies. Sustainable development is a natural extension of many corporate environmental policies. It requires that management consider the effect of its activities on the environment and on the long-term interests and needs of stakeholders. These enterprises engage in a different type of dialogue and consultation with their stakeholders. Their business strategies and activities are designed to balance the need for financial returns with the needs of the environment and various stakeholder groups. Mechanisms such as advisory panels and committees are established to facilitate communication with stakeholders. Corporate reporting expands in relation to the needs of stakeholders. They may also engage independent auditors to attest to their report's accuracy and reliability
Benefits to employers of a green workplace
The benefits to employers of a green workplace include improved employee morale, a stronger public image, increased consumer confidence, a positive bottom line, and healthier employees.
Some business journalists are particularly critical of sustainability for a variety of reasons:
The concept is difficult to define and understand. It means stopping, or constraining, economic development. It implies that capitalism is unsustainable and morally lacking. It lacks understanding of markets and the moralistic system of markets. Executives are being misled into responding to it as a social issue, and the interest many have is merely as a public relations exercise
according to research by the Network for Business Sustainability a corporation should do what?
according to research by the Network for Business Sustainability, a corporation should consider environmental impacts and develop policies for reasons that include reducing costs, responding to investor demands, facilitating regulatory approaches and mitigating operational risk, hiring the best employees, and meeting consumer demand for "green" products and services. These are convincing reasons for responding to environmental concerns.
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Lenders/creditors
Ethical Issues and Responsibilities for Managers: Need to assess increased financial risk
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Suppliers
Ethical Issues and Responsibilities for Managers: Must respond to demands for more environmentally friendly products Reassessing most appropriate transportation and packaging of supplies
Differences between standard and market environmentalism
*look at pic of table*
Acid rain
Acid rain is a generic term used for precipitation that contains an abnormally high concentration of sulphuric and nitric acid. Industrial activities create general gas emissions that combine with water to form the acids
Air pollution
Air quality is affected by various pollutants caused from the burning of fuels, emissions from industrial sites, and emissions from transportation vehicles. Smog is one form of air pollution.
Commons
Although most business and society scholars do not consider the natural environment to be a stakeholder of business, there is agreement that it is influenced by stakeholders and/or has an influence on stakeholders. As a result, the natural environment can be viewed as a commons, or a resource used as though it belongs to all. Business has been able to use shared resources such as the environment simply because it wanted or needed to. In the past, for example, pollution was put into the environment without thinking about the damage and little regulation existed to prevent it. Through uncontrolled use, many in society believed that the environment as a commons was being destroyed. Often this destruction was occurring even though it was not the intent of the user—that is, business—and ownership was not an issue.
Ecosystems
An ecosystem is a biological community of interacting organisms and their physical environment. It is recommended that industry take an ecosystem approach to the environment; that is, recognizing the interrelationships among land, air, water, wildlife, and human activities
Environmental ethic
An environmental ethic is the set of values or principles that govern a corporation's practices relating to the environment. Concern for the environment has existed for some time, and an environmental ethic is evolving from this focus on ecology. Society and many businesspersons now have some sense of obligation or moral responsibility to the environment that is expressed in different ways.
Another approach to viewing a corporations response to environmental concerns
Another approach to viewing a corporation's response to environmental concerns is by functional areas; that is, finance, marketing, human resources, and production. Although this approach does not cover all areas of a corporation's activities, it does address the main ones.
Offsets or emission-reduction credits
Another possibility is to finance carbon removal activities, for example reforestation. Offsets, or emissions-reduction credits, are credits purchased from other corporations or organizations to mitigate greenhouse gases released into the environment. The funds generated are used to finance undertakings that will result in the reduction of emissions.
Barriers to a green workplace
Barriers to a green workplace are implementation and maintenance costs, lack of top management support, lack of employee commitment, and concern for lower employee productivity
business opportunities from addressing environmental concerns
Business opportunities emerge from the development of new technologies or expertise to address environmental concerns. More efficient ways of producing products are found and better products are marketed. There is increasing evidence that responding to environmental concerns need not be costly, and that profitability can even be improved. The environment itself is an opportunity for some who provide the technology or expertise to address the concerns. Environmental product manufacturers include those that provide equipment for water pollution control, air pollution control, solid waste management, measuring instruments, chemicals for pollution control, and noise control. Examples of environmental services include waste handling, consultation services, assessment and control functions, laboratory services, and environmental research
Business sustainable development
Business sustainable development means "adopting business strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining, and enhancing the human and natural resources that will be needed in the future."4 This definition was developed by the International Institute for Sustainable Development (IISD), a non-profit, private corporation established and supported by the governments of Canada and Manitoba to promote sustainable development in government, business, and individual decision making. This definition captures the sense of the concept as presented in the World Commission's report, but focuses on areas of specific interest and concern to business. It recognizes that economic development must meet the needs of the corporation and its stakeholders. The definition also highlights the dependence of the corporation's economic activities on human and natural resources as well as to physical and financial capital.
Carbon Pricing: Cap-and-trade
Cap-and-Trade where governments cap total carbon emissions and then give or sell companies carbon permits that add up to the cap. Companies can then trade permits with each other, with those who can reduce emissions cheaply and easily selling permits to those who cannot. The price of the permits is variable depending on the market. But generally, the lower the cap, the higher the price. Also referred to as emissions trading.
Climate change
Climate change, also referred to as global warming, is "the result of human activities altering the chemical composition of the atmosphere through the build-up of greenhouse gases that trap heat and reflect it back to the Earth's surface." This process has resulted in an increase in global temperatures and more frequent weather events. Note that greenhouse gases are "those that absorb and trap heat in the atmosphere," and that the greenhouse effect is "the phenomenon whereby certain gases that absorb and trap heat in the atmosphere cause a warming effect on the Earth
From a strategic perspective, corporations can choose among the following strategies in their approach to environmental concerns: Compliance with laws and regulations
Compliance with laws and regulations—Concern about exposure to lawsuits and prosecution has motivated many directors and senior executives to adopt strategies of compliance. Some enterprises continue to ignore legislative and regulatory requirements, but those companies that do follow policies of compliance establish programs and organizational structures to implement and monitor their compliance with the legislation and regulations. Legal requirements or the government requirements ethic are the bases for the corporation's strategy.
From a strategic perspective, corporations can choose among the following strategies in their approach to environmental concerns: Comprehensive environmental management
Comprehensive environmental management—Under this strategy, management seeks to gain a competitive advantage by taking an active stance on environmental issues. Simple compliance with legislation and regulation is not sufficient. In these companies, everyone becomes involved in environmental management. Environmental issues are integrated into all aspects of corporate management. Environmental objectives are set for key operating activities; they are not left to just the "environmental services department." There is internal and external corporate reporting and the development of environmental policies and codes of conduct. This strategy has been widely adopted within certain industries in some industrialized countries.
Market-driven environmentalism controversy
Controversy surrounds market-driven environmentalism. Its effectiveness is questioned, that is, whether there is an actual reduction of emissions. It is viewed as image polishing with no real commitment to the environment. Corporations are able to continue damaging the environment by avoiding addressing their environmental problems. Effective trading systems are being developed, but to be successful there supported by business and government.
Carbon capture and storage (CCS)
Corporations are examining the possibility of storing their carbon emissions through carbon capture and storage (CCS). With CCS, carbon dioxide emissions are captured and injected into underground formations. The practice is sometimes referred to as carbon sequestration or geosequestration. Downsides are that it is expensive, because the infrastructures do not exist, the underground storage may weaken, it requires a large amount of energy to implement, and it needs a 1,000-year monitoring program.
Environmental management systems
Corporations need comprehensive environmental policies and programs, referred to as environmental management systems (EMS). These plans ensure that environmental practices become an important component of the corporation's overall strategy.
Corporations engaging the government
Corporations should engage in a dialogue with government agencies so that their interests are protected and to contribute to the resolution of environmental problems. Governments may directly regulate activities of the corporation or introduce policy changes through taxation rates, the elimination or establishment of subsidies, international trade agreements, or the creation of markets in tradeable pollution permits. Business enterprises must establish mechanisms so that they can "listen" to what government is considering, and mechanisms so that they can "talk" to government.
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Shareholders
Ethical Issues and Responsibilities for Managers: Investment decisions influenced by the handling of the environment Risk associated with environment problems or disasters Establishment of "green" investment criteria
Canadians mixed reactions to improving the environment
Despite polls that confirm the concern Canadians have for the environment, consumers still purchase environmentally unfriendly products. Canadians still lead the world in energy consumption and generate the most household garbage. Canadians express strong views about conserving forests, reducing pollution, and halting hydroelectric projects. But if job losses result, their concerns about the environment are reduced. As most actions to improve environmental quality cost money, the issue becomes one of who will pay—that is, government, business, or consumers. Ultimately, the consumer and/or taxpayer pays, and many are unwilling to assume the costs. Most direct charges to consumers are resented.
Human resources
Eco-friendly policies and practices are influencing the recruitment and retention of employees. Such policies are emphasized in recruitment when prospective employees ask recruiters about the employer's environmental practices.25 Students in particular are searching for environmentally friendly workplaces. A green workplace is even more important in retention of employees especially in tight employment markets. Employees satisfied with their employer's environment policies are proud of working for the company. Those employees not satisfied are likely to leave if they can find a green workplace
Environmental group tactics
Environment groups are not always easy to deal with and use a variety of tactics. They can be involved in protests, blockades, boycotts, and sometimes make use of annual shareholders' meetings as platforms for protest. Canadian environmental groups are also often part of a global network of organizations. Protests about logging the Clayoquot Sound forests in British Columbia, as an example, are an alliance effort and have received impressive international attention.
The Ontario Securities Commission (OSC) issued National Instrument 51-102, Continuous Disclosure Obligations, which requires public corporations to disclose information about environmental matters. The following summarizes the OSC's findings:
Environmental liabilities—Corporations should quantify the accounting estimate where quantitative information is reasonably available and would provide useful information to investors. Corporations should also disclose potential environmental liabilities not reflected in financial statements. Asset retirement obligations—Corporations are required to identify asset retirement obligations in their financial statements. Environmental examples would be the remediation costs for a mining operation or the disposal of hazardous waste. Financial and operational effects of environmental protection requirements—The costs of these requirements should be quantified and the impact of these costs on financial statements identified. Environmental policies fundamental to operations—Corporations are required to describe the policies and the steps taken to implement them. Environmental risks—These must be identified so that investors can assess the impact on operational and financial performance.
Environmental non-governmental organizations (ENGOs)
Environmental non-governmental organizations (ENGOs) are groups that hold shared values or attitudes about the challenges confronting the natural environment and advocate for changes to improve the condition of the environment. Dozens of these groups exist in Canada The activities, policies, and initiatives of these groups should be monitored to assess the potential impact on the corporation. This monitoring function may be performed by the environmental affairs department, by the managers responsible for environmental matters, or by consultants.
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Government
Ethical Issues and Responsibilities for Managers: Complying with laws and regulations Influencing public policy
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Directors
Ethical Issues and Responsibilities for Managers: Getting environment issues on the board agenda Liability for environmental contamination Challenge of motivating management to address the issue
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Competitors
Ethical Issues and Responsibilities for Managers: Consequence of competitive edge being obtained by making products more environmentally friendly
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Service professionals
Ethical Issues and Responsibilities for Managers: Familiarity with laws and regulations Design of appropriate audits Identification of full environmental cost accounting methods
Principal Stakeholders and Issues Involved in Business' Response to the Environment: NGO's
Ethical Issues and Responsibilities for Managers: How to respond to groups based upon environmental concerns
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Media
Ethical Issues and Responsibilities for Managers: How to respond to media coverage of environmental problems
Principal Stakeholders and Issues Involved in Business' Response to the Environment: Customers/consumers
Ethical Issues and Responsibilities for Managers: Inconsistencies between concerns expressed about the environment and the consumption of environmentally unfriendly products Unwillingness to pay higher prices for environmentally friendly products/services if necessary The viability of "green" products
History of government involvement
Extensive government involvement exists through public policy formulation and the regulation of all aspects of the natural environment. The federal and provincial governments have passed environmental legislation, and are considering further legislation. Governments have announced various programs to create cleaner air, land, and water; to encourage sustainable resources; to develop parks and wildlife areas; to protect the Arctic regions; and to reduce global warming, ozone depletion, and acid rain
Financial management
Financial management now includes consideration of environmental factors and involves many aspects, for example: Accounting guidelines require companies to unequivocally state on their balance sheets the estimated liability for restoring capital assets to environmentally sound conditions. "Eco-insurance" products are now available in response to the liability associated with environmental problems. The banking industry has also been affected by the environmental issue. Environmental assessments are necessary to determine the influence on financial performance and liability. Investments are being screened for environmental performance. Individual investors usually seek out environmentally friendly mutual funds. To obtain information on this aspect of performance, institutional investors use sustainability indices such as the Dow Jones Sustainability Indices (DJSI) or from the Toronto Stock Exchange including the Carbon Efficient Index, Fossil Fuel Free Index, and Renewable Energy and Clean Technology Index. Shareholders unhappy with a corporation's environmental policy may hurt its financial performance, maybe more than the actions of ENGOs. A concerned shareholder can submit a resolution at the annual meeting arguing that the corporation is increasing its environmental risk and thus the financial risk to shareholders. Investment analysts are more influenced by such resolutions than by the actions of ENGOs such as boycotts, protests, lawsuits, demonstrations, or sit-ins to raise awareness of a corporation's poor environmental recor
Examples of values or principles included in an environmental ethic
For a business enterprise, the values or principles include the idea that new business development needs to take account of the environment from the design stage through to ultimate disposal; that environmental management should be the responsibility of staff at all levels as an integral part of their job; that environmental performance should be built into the reward structure of the organization; that product and process responsibility should occur from cradle to grave; and that agreed-upon values and beliefs should be used as the guiding principles for conducting all business
Examples of Environmental Non-Governmental Organizations (ENGOs): Friends of the Earth Canada
Friends of the Earth (FOE) Canada is a charitable, non-profit environmental organization. Its mission is to be "a voice for the environment, nationally and internationally, working with others to inspire the renewal of our communities and the earth, through research, education and advocacy." It takes action to confront polluters, holding governments to account for their promises and insisting they enforce laws.
Government legislation and reporting
Government legislation often stipulates that an environmental assessment document, or report, be submitted to relevant departments of the environment for review and approval. Although legislation varies among the federal and provincial governments, the report usually has to contain a description of the project, a list of reasons for the project, alternatives to the project, an outline of how the project and its alternatives will affect the environment directly or indirectly, an identification of the actions necessary to prevent those effects, and an evaluation of the advantages and disadvantages of the project to the environment and alternative ways to carry it out. The report is submitted for evaluation to an environmental assessment agency and often is followed by public hearings. Most corporations are now familiar with the environmental process and incorporate it into their decision making. Corporations also conduct audits and assessments even when not required by governments. Such audits often are of the whole organization and not restricted to particular projects or plants, and are designed to provide a "total picture" of the environmental circumstances of the corporation.
Green marketing
Green seems to be the most popular colour with business today, since it expresses society's concern for the environment. Green marketing involves selling environmentally friendly goods and services to consumers. Providing such products is necessary for many corporations if they are to survive, and doing so can provide a new opportunity to make money.
Examples of Environmental Non-Governmental Organizations (ENGOs): Greenpeace Canada
Greenpeace is an independently funded organization that works to protect the environment. We challenge government and industry to halt harmful practices by negotiating solutions, conducting scientific research, introducing clean alternatives, carrying out peaceful acts of civil disobedience and educating and engaging the public. Its focus is: creating an energy revolution, that is, to address climate change; protecting the world's ancient forests; defending the world's oceans; campaigning for sustainable agriculture; and creating a toxic-free future
Practices and Policies to Create the Green Workplace
Offering a recycling program for office products, including donating and discounting used office furniture to employees or charities, and banning disposables such as plastic utensils and paper cups and plates. Conserving energy by using energy-efficient lighting systems and equipment, and installing automatic shutoffs of idle equipment. Reducing consumption of paper, packaging, and other office supplies, including not printing electronic documents. Encouraging employees to be more environmentally friendly by promoting walking, biking, and using public transport to work or car-pooling. Providing bike stands, showers, and fare subsidies. Creating a pesticide-free green landscape with trees, lawns, and gardens. Reducing emissions through less travel and climate control, and striving for carbon neutrality. Purchasing renewable energy credits. Conducting virtual meetings through video and teleconferencing thus reducing travel. Using natural lighting, with windows and skylights. Investing in community environmental initiatives. Requiring suppliers to be green. Publicly disclosing sustainability initiatives through reports that identify objectives and detail the progress made in achieving them. Convincing employees of program benefits and top management support. Providing incentives for environmentally friendly behaviour. Organizing employee committees to provide advice on practices.
Studies regarding green workplaces
One study found that one-half of corporations surveyed had environmentally friendly workplace policies and believed that they benefited from them. Another study found that when employees believe their employer is committed to the environment, they are more likely to become involved in eco-initiatives such as recycling and saving energy. In order to encourage such initiatives, management should develop environmental policies and communicate them to employees. There appears to be a trend toward green workplace policies and practices.
Energy production and consumption
The generation of energy is usually damaging to the environment, as are the pollutants released when the energy fuel is used. Industry is responsible for many of the problems created, but so are consumers. Business has been emphasizing the efficient use of energy through the development of new technologies for itself and consumers.
Hendry found that the factors ranked as follows, from most influential to least:
The greater the certainty among ENGOs that the firm is the source of an environmental impact, the more likely ENGOs are to target the firm. The more consequential the firm's actions are for the natural environment, the more likely ENGOs are to target the firm. The denser the relationships among the firm's ENGO stakeholders, the better able those ENGOs are to monitor the firm and share information about the firm, and the more likely those ENGOs are to target the firm collectively. The larger the firm, the more likely ENGOs will target the firm. To maximize the effects of mimetic isomorphism, ENGOs target corporations that are influential in their organizational fields and therefore likely to be imitated. The more previous interactions between the firm and a particular ENGO, the more likely the ENGO will target the firm. The closer the firm is to consumers in the supply chain, the more likely ENGOs will target the firm. The more well-known the firm's brands are, the more likely ENGOs will target the firm
Network for Business Sustainability's guide for measuring environmental impacts
The guide comprises four steps: Step 1 defines success by identifying pressures and establishing goals for addressing them; Step 2 decides what to measure for materials, energy, water, biodiversity, emissions, products and services, compliance, and transport; and Step 3 determines how to measure impacts, for example through life cycle analysis or environmental footprint, and to value them through ecosystem service valuation, or environmental input-output modelling. Finally, Step 4 incorporates the environmental measures into management decision making
Centralization vs. decentralization
The issue of centralization versus decentralization of authority is also a challenge. In large, diversified corporations it is necessary to have top management commitment, but at the same time environmental matters are usually addressed at the unit or divisional levels. Often committees are formed to provide interlocks between the top and bottom of the organization, and to coordinate efforts across functions or divisions. Such a coordinating environmental group forms policies, establishes standards, and carries out planning strategies.
Nature and Wildlife
There is concern for the harm caused to birds, mammals, fish, and plants by the operations of business. Endangered species are of particular concern.
From a strategic perspective, corporations can choose among the following strategies in their approach to environmental concerns: Token response
Token response—The focus here is on damage control as problems arise and attempts are made to fix them. This is a reactive strategy still adopted by some corporations, but given the increased attention to the environment by many stakeholders, it is not recommended. Another token response is greenwashing, a form of advertising or public relations that deceptively provides the perception that a corporation's policies or practices are socially responsible. According to an environmental marketing agency, there are seven sins of greenwashing: hidden trade-offs, no proof, vagueness, worshipping false labels, irrelevance, lesser of two evils, and fibbing.16 Today, greenwashing is usually disclosed quickly by consumers, regulators, or competitors.
The indicators used to evaluate environmental performance are extensive. Examples include the following:
Type and amount of materials used to provide the good or service, and cooperation with suppliers Source of energy and efficiency of use Source and quality of water Impact on biodiversity; that is, impact on location of operations, land use, nature, and species Reduction of emissions, effluents, and waste including hazardous materials Design of products and services to minimize impact on the environment Compliance with environmental regulations Use of efficient transportation mode
Examples of Environmental Non-Governmental Organizations (ENGOs): World Wildlife Fund Canada (WWF-Canada)
WWF-Canada is a conservation organization supported by more than 150,000 Canadians. Its mission is to "stop the degradation of the planet's natural environment and to build a future in which humans live in harmony with nature." This mission is accomplished by "ensuring that the use of renewable natural resources is sustainable, promoting the reduction of pollution and wasteful consumption, and conserving the world's biological diversity."
Waste management
Waste management is "disposal, processing, controlling, recycling and reusing the solid, liquid, and gaseous wastes of plants, animals, humans and other organisms."8 Wastes often are hazardous, making the process more challenging. Recycling is described by the four Rs: reduce, reuse, recycle, and recover.
Water quality
Water quality is determined by the presence of contaminants affecting its chemical and bacterial composition. Supply of safe drinking water is a concern in Canada.
Green supply chain management
While an EMS has an internal focus, green supply chain management (GSCM) focuses on making sure suppliers share the same commitment to the environment. EMS and GSCM allow for instilling a culture of continuous improvement inside and beyond the corporation. It also is important to plan strategically for the long term by establishing long-term goals, identifying opportunities to further reduce the impact on the environment, and taking advantage of these opportunities
