ENVIRONMENTAL MANAGEMENT

AND TECHNOLOGY

WEEK 5
ENVIRONMENTAL AND BUSINESS
(PART I)

Last Updated:November 21, 2020 © LMS SEGi education group 1

 LEARNING OBJECTIVES

 Describe environment as an important issue for the

strategic management process.
 Explain trade barrier.
 Describe corporate "greening" process.

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 LEARNING OUTCOMES

 Student is able to describe the environment as an

important issue for the strategic management process.
 Student is able to explain what is trade barrier.
 Student is able to describe corporate "greening" process.

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 Strategic management process is a method by which
managers conceive of and implement a strategy that can lead
to a sustainable competitive advantage

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 Environmental Problems

• Ozone Depletion, Greenhouse Effect and

Global Warming:. ...
• Desertification: ...
• Deforestation: ...
• Loss of Biodiversity: ...
• Disposal of Wastes

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 ENVIRONMENT AS AN IMPORTANT ISSUE FOR
THE STRATEGIC MANAGEMENT PROCESS –
CONT’
 Advantages to business and society
 Sustainable use of natural resources – sustainable business
 Minimize environmental risk and liabilities – less pollutions,
retain competent human resource
 Environmental restoration
 Better living quality

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 ENVIRONMENT AS AN IMPORTANT ISSUE FOR
THE STRATEGIC MANAGEMENT PROCESS

 Threats to business and society

 Exploitation and decimation of our natural environment
 Agriculture production
 Environmental disasters
 Health problems
 Legal matters

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 ENVIRONMENT AS AN IMPORTANT ISSUE FOR
THE STRATEGIC MANAGEMENT PROCESS –
CONT’
 Function of EMS
 On-going process of formulating, implementing and controlling
broad plans guide the organizational in achieving the strategic
goods given its internal and external environment.
 To prevent pollution at the source
 To achieve continual improvement of the environmental
performance of the organization

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 THE INTERNATIONAL BUSINESS
ENVIRONMENT

 Technical barrier to trade

 Without an ISO 14001 certificate, one might not be eligible to
engage in export and international bidding
 Buyers from developed countries often request from their
supplier(s) evidence of the environmentally friendly operation of
the corporation
 For example, the request has been a norm for the electronic
component suppliers in South Korea and Japan.

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 THE INTERNATIONAL BUSINESS
ENVIRONMENT – CONT’

 Technical barrier to trade (cont’)

 Request for qualification in international bidding projects often
include evidence of the EMS in place by bidder.
 An ISO 14001 certificate is the only acceptable evidence.
 This is the reason why most construction and engineering
companies in Korea obtained ISO 14001 certification as soon as
the standard became official in September 1996.

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 Trade Barriers

Tariff-tax imposed on certain

goods

Import quota- Limits the amount of

goods can be imported

Embargo-A ban on trade with

certain country

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 THE CORPORATE "GREENING" PROCESS AND
STRATEGIC MANAGEMENT MODELS

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 Extended producer responsibility (EPR)

 Strategy used in Organization for Economic Cooperation and

Development countries to achieve waste prevention and reduction,
and increased use of recycled materials in production.
 Extend the responsibilities assigned to the producers and
distributors in the past to include responsibilities for the
management of the product at the after-use stage
 E.g. electric/electronic products, packaging, automobiles, waste
papers and motor oils.

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 Green purchasing network (GPN) (1)

 Countries actively involved : Japan, South Korea,

Taiwan, China and Thailand
 Pursuing – Malaysia, Philippines and India
 Goals of environmental labeling and declarations is to
encourage the demand for and supply of products and
services that cause less stress on the environment

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 Green purchasing network (GPN) (2)

 Green purchasing require the public, government and

business to consider
 The necessity of purchasing

 The environmental impact of the products and services at all

stages of their life cycles before making the decision to purchase

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 Green purchasing network (GPN) (3)

 It is about buying products and services that after

consumption are recyclable or reusable – waste
minimization
 Additionally, involved green technology that use minimal
energy e.g. renewable energy technologies

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 Corporate Social Responsibility (CSR) (1)

 Concept whereby companies integrate economy, social

and environmental concerns in their business operations
and in their interaction with their stakeholders on a
voluntary basis
 Intrinsically linked to the concept of sustainable
development
 E.g. tree planting activities, wildlife conservation,
recycling, river conservation, etc
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 Corporate Social Responsibility (CSR) (2)

 Advantages
 Corporate branding – Positive publicity
 Easier to recruit and retain competence human
resources
 Part of continuing process of building long term
values – with suppliers and customers
 Differentiate yourself from other competitors

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 KEY TERMS

 EMS – Environmental Management System

 OECD – Organization for Economic Cooperation and
Development
 EPR – Extended Producer Responsibilities
 GPN – Green Purchasing Network
 CSR – Corporate Social Responsibility

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 REFERENCES

 Sheldon, C. ed. (2007). ISO14001 and Beyond:

Environmental Management Systems in the Real World.
London, Greenleaf Pub.
 Gilbert, M. and Gould, R. (1998). Achieving
Environmental Standards, 2nd ed. Pitman Pub.

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