Environmental Progress

1996-1997
ISO 14000
EMAS
BS 7750
1990 EMS Standards

1985 EMS/ Environmental Audits

1980 Environmental
Coordination
1975 Improving Processes

1970 Downstream Cleaning Equipment

1960-1965 Environmental Consciousness

 What is EMS?
 A continual cycle of Planning, Implementing,
Reviewing, and Improving the processes and
action actions that an organization undertakes
to meet its environmental obligations.
 Continual Improvement: Enhancing your EMS
to better your overall Environmental
Performance
 WHAT IS AN ENVIRONMENTAL
MANAGEMENT SYSTEM?
The ISO 14001 Definition
 “The overall management system that includes
organizational structure, planning activities,
responsibilities, practices, procedures, processes and
resources for developing, implementing,
achieving, reviewing and maintaining the
environmental policy.”
What is an EMS
in layman’s terms?
 An EMS is really just a formal planning
tool to help an organization organize
priorities and pursue goals.

 Think of it as a fitness plan for an athlete!

 EMS
 All organizations have some type of
environmental management system regardless of
what they do
 For this discussion, the focus is a more
formalized, recognized, and structured approach
defined in the international EMS standard, ISO
14001
 In most cases, additional effort is needed to
transition from existing environmental activities
to the more formal ISO 14001-type EMS
Key Elements of EMS—ISO
14000
 ISO 14001 is widely accepted international
standard for EMS that focuses on continual
improvement.
 Companies may be asked to demonstrate
conformance with ISO 14001 as a condition of
doing business in some markets &
 The standard is consistent with the key elements
found in many EMS models, including the
European Union’s eco management and audit
scheme.
Key Elements of EMS—ISO
14000—A snapshot
 Environmental Policy
 Environmental Aspects—Identify Products,
Activities / services attributing to environment
 Legal and other requirements.
 Objectives & Targets
 Environmental Management Program—Plan
Actions necessary to achieve above objectives.
 Structure and Responsibility.
Key Elements of EMS—ISO
14000—A snapshot
 Training, Awareness and competence.
 EMS documentation
 Document Control
 Operational Control
 Emergency preparedness & Response
 Monitoring & Measurement
 Corrective and Preventive actions
 Records
 EMS audit
 Management Review.
 Plan Do Check Act
Continual Improvement

Management Environmental
Review Policy

Checking & Corrective Planning

Action
Implementation &
Control
Planning
Identify Determine
Environmenta Significant
l Aspects and Environmental Establish
Identify
Activities, Impacts Aspects
Objectives,
Products
Targets and
and
Service Determine Legal and Other Programs
s Requirements
 Environmental Aspects
 Identify environmental aspects of activities
products and services that you “can control and
…can influence”
 Examples include air emissions, water discharges,
soil contamination, use of raw materials, energy use,
use of natural resources

 To determine those which have or can have

significant impacts on the environment
Legal and Other Requirements
 Identify legal requirements that apply to your
facility’s aspects
 Identify other requirements to which you
“subscribe” e.g., Executive Orders,
agency/bureau policies or voluntary practices
Implementation and Control
Organization & Capabilities & Controls
Accountability Communications

Documentation
and Control of
Competence Documents
Resources, Training and
Roles,
Awareness
Responsibility
and Authority Operational Controls

Communication

Emergency
Preparedness and
Response
WHY ISO 14000?

 Reduces environmental liability;

 Enhances public image and reputation by assuring that commitment
towards environmental management exists;
 Assures customers of your commitment to demonstrable environmental
management;
 Satisfies investor criteria and improve access to capital;
 Meets your clients’ registration requirements;
 Reduces your consumption of materials and energy;
 Facilitates in obtaining permits and authorizations;
 Reduces the cost of complying with environmental regulations;
 Improve industry-government relations.
QMS & EMS
 QMS  EMS
 Quality Policy  Environment Policy
 Adequate Resources  Adequate Resources
 Responsibilities &  Responsibilities &
Authorities Authorities
 Training  Training
 System Documentation  System Documentation
 Process Control  Operational Control
 Document Control  Document Control
 System Audits  System Audits
 Management Review  Management Review
 EMS
 An effective EMS is built on TQM concepts.
 Most EMS models [Including ISO 14000] are built on
the “PLAN, DO, ACT, CHECK” [PDCA] cycle.
 Applying ISO 14000 and to initiate and sustain EMS
effort, top management must communicate to all
employees the importance of :
 Making the environment an organizational priority [Thinking of an
effective environmental management as fundamental to the
organization’s survival]
 Integrating Environmental Management throughout the
Organization.[thinking about the environment as part of
product/service and process development and delivery among other
activities]
Flexible & Simple
 An effective EMS is dynamic enough to
allow organization to adapt to a quickly
changing environment .
 Compatibility with organization culture.
 Employee awareness & Involvement.
 Some ISO 14000 Standards
ISO 14000: Guide to Environmental Management Principles,
Systems and Supporting Techniques
ISO 14001: Environmental Management Systems -
Specification with Guidance for Use
ISO 14010 Guidelines for Environmental Auditing -
General Principles of Environmental Auditing
ISO 14011 Guidelines for Environmental Auditing -
Audit Procedures-Part 1: Auditing of EMS.
ISO 14012 Guidelines for Environmental Auditing -
Qualification Criteria for Environmental Auditors
ISO 14013/15 Guidelines for Environmental Auditing - Audit Programmes,
Reviews & Assessments
ISO 14020/23 Environmental Labeling
ISO 14024 Environmental Labeling - Practitioner Programs - Guiding Principles,
Practices and Certification Procedures of Multiple Criteria Programs
ISO 14031/32 Guidelines on Environmental Performance Evaluation
ISO 14040/43 Life Cycle Assessment General Principles and Practices
ISO 14050 Glossary
ISO 14060 Guide for the Inclusion of Environmental Aspects in Product
Standards
Prevention of Pollution
Hierarchy
 Source Reduction
 In- Process Recycling
 Other Recycling
 Treatment & Recovery
 Control Mechanism
Typical Example of EMS policy

 “We will comply with the environmental laws &

regulations and will strive to secure fundamental
reforms that will improve our environmental
effectiveness and reduce our cost of compliance.
We will consider environmental factors and the
acquisition and use and disposal cost when
making Planning, Purchasing, and operating
Decisions.
Typical Example of EMS policy
 We will monitor Environmental Performance through
regular evaluation.
 Manage Land Water, wild Life and forest recourses in
environmentally sensitive manner.
 Use energy efficiently throughout our operations and
support the efficient use of coal, wood, & electricity.
 Reuse and recycle whenever and wherever possible.
 Use Environmentally preferred materials.
 Clean up residual pollution from past operations in cost
effective manner.”
Corporate Citizenship: Language
A variety of terms …all draw from a set of
and labels… common core elements

Corporate Social Responsibility

Corporate Responsibility
Social Responsibility A company’s efforts to
understand and responsibly
Sustainable Development manage its social, economic
Sustainability and environmental impacts
so that it makes a positive
Corporate Citizenship contribution to its owners and
society
Triple Bottom Line
Corporate Citizenship: Language
A variety of terms …used by a wide variety of
and labels… companies

Corporate Social Responsibility Rio Tinto, Van CIty

Corporate Responsibility Chiquita, Nike, IBM
Social Responsibility BP (coupled with Sustainable
Development)

Sustainable Development ABB, BP, Shell

Sustainability
Corporate Citizenship Ford Motor Company, Novartis,
SABMiller
Triple Bottom Line Novo Nordisk
CR and value creation

24
Source: Johnson & Johnson
 Corporate Responsibility
CAPITAL
MARKETS LAW
SUPPLIERS

OWNERS MANAGERS

FIRM

BOARD OF EMPLOYEES
DIRECTORS

CONSUMERS
PRODUCT LABOR
MARKETS MARKETS
Corporate Social Responsibility (CSR)

nt

In
e

div
nm
o

id
v ir

ua
E n

ls
Wider Human
Community
CSR
Rights

cs
hi
St

Et
ak

ss
eh

ine
ol
de

s
Bu
rs
1960’s Social Contract no Longer
Delivers
Public Sector Set laws Supply social
services redistribute
wealth
Pay taxes , obey
laws
Employ people Social Welfare
with benefits Public Policy
philanthropy

Private Sector NGO’s

Civil Society
Fill in crack in
social services
Emerging Social Contract
Pay taxes , obey Deregulation,
laws ,downsizing. Contract
Public Sector
Employ people social services
help solve social redistribute wealth
challenges
act responsibly
Social Welfare
Public Policy

NGO’s
Civil Society
Private Sector
Be a partner in
social service
delivery
Be accountable
 CR aspects

Corporate Performance
Strategy Integration Management and Impact

Values Integration of principles Key issues Measuring and

CR principles Business conduct reporting
Objectives/ targets
Leadership Performance mgmt Scope of data
Allocation of
Advocacy Remuneration systems responsibilities Quality of data
Risk mgmt Strategic decision-making Training/ support Target setting
Training & development
Policies Internal monitoring Performance
Senior training and reporting improvement
Stakeholder engagement
Reporting
 What makes a ‘Company That Counts’
 = leadership and commitment at the highest level
 = policies to ensure responsible behaviours across the business
 = CR issues integrated into strategic decision making,
 = objectives and targets set to drive continuous improvement
 = clear responsibilities defined at all levels
 = effective communication to share learning and knowledge
 = training for relevant staff to ensure delivery of objectives
 = process for stakeholder consultation and engagement
 = monitoring systems to assess and report progress
 = public reporting of key issues, targets and performance
 = willingness to disclose information and share best practice
 Carroll’s Four-Part Definition of
CSR
Responsibility
Societal
Examples
Expectation

Be profitable. Maximize sales,

Economic Required
minimize costs.

Obey laws, adhere to

Legal Required
regulations

Avoid questionable practices.

Ethical Expected
Do what is right, fair, and just

Desired/ Be a good corporate citizen.

Philanthropic
Expected Give back.

31
Carroll’s model:CSR
 Corporate Citizenship Concepts
Corporate Social… Emphasizes…

Responsibility Obligation, accountability

Responsiveness action, activity

Performance outcomes, results

33
Business Criticism/
Social Responsibility Cycle
Factors
Factorsin
inthe
theSocietal
SocietalEnvironment
Environment
(have led to)

Criticism
Criticismof
ofBusiness
Business

(which has resulted in)

Increased
IncreasedConcern
Concern AAChanged
Changed
for
forthe
theSocial
SocialEnvironment
Environment Social
SocialContract
Contract
Business
BusinessAssumption
Assumptionofof
Corporate
CorporateSocial
SocialResponsibility
Responsibility
Social
SocialResponsiveness,
Responsiveness,Social
Social
Performance,
Performance, and CorporateCitizenship
and Corporate Citizenship

AAMore
MoreSatisfied
SatisfiedSociety
Society

Fewer
FewerFactors
FactorsLeading
Leadingto
to Increased
IncreasedExpectations
Expectations
Business
BusinessCriticism
Criticism Leading
LeadingtotoMore
MoreCriticism
Criticism34
 Arguments Against CR
 Restricts the classic  Limits the ability to compete
economic goal of profit in a global marketplace
maximization

 Business is not equipped to

handle social activities

 Dilutes the primary purpose

of business

35
 Arguments For CR
 Addresses social issues
brought on by business, and  Addresses issues by using
allows business to be part of
business resources and
the solution
expertise

 Protects business  Addresses issues by being

self-interest
proactive

 Wards off future government  The public supports CSR

intervention
Corporate Social Performance
 Drivers of Corporate Citizenship
Internal Motivators External Pressures

Traditions and values Customers and consumers

Reputation and image Expectations in the community

Business strategy Laws and political pressures

Recruiting and retaining

employees

38
Resources limit companies’ efforts to
become better corporate citizenship
What are the barriers to corporate citizenship?
100%

90%

80%

70%

60%

50%
54% Lack of
40% resources Top management Not sure what being
does not a “good corporate
30% 10% support it citizen” means
20% 16% Not of real
Middle interest to 10%
management employees No significant
10% does not benefit to the
8% 13%
support it business
0%
Resources Management/ Business Case
Employees
 Benefits of Corporate Citizenship
 Improved employee relations

 Improved customer relationships

 Improved business performance

 Enhanced company’s marketing efforts

40
Stages of Corporate Citizenship

41
 Social and Financial
Performance Relationship
Perspective 1: CSP Drives the Relationship

Good Corporate
Good Corporate Good Corporate
Financial
Social Performance Reputation
Performance

Perspective 2: CFP Drives the Relationship

Good Corporate
Good Corporate Good Corporate
Financial
Social Performance Reputation
Performance

Perspective 3: Interactive Relationship Among CSP, CFP, and CR

Good Corporate
Good Corporate Good Corporate
Financial
Social Performance Reputation
Performance

Figure 2-13 42
 “Multiple Bottom Line” Perspective

Owner
Owner Stakeholders’
Stakeholders’
“Bottom
“Bottom Line”
Line”
Consumer
Consumer Stakeholders’
Stakeholders’
“Bottom
“Bottom Line”
Line”
Corporate
Corporate Employee
Employee Stakeholders’
Stakeholders’
Social
Social “Bottom
“Bottom Line”
Line”
Performance
Performance
Community
Community Stakeholders’
Stakeholders’
“Bottom
“Bottom Line”
Line”
Other
Other Stakeholders’
Stakeholders’
“Bottom
“Bottom Line”
Line”
Figure 2-14
43
Discuss Learning Outcomes

1. Discuss the constraints faced by the industry while

implementing/planning to implement corporate
environmental strategies?
2. What are the decisions to be taken?
3. Provide business examples of CR / Corporate citizenship.
4. Explain how corporate citizenship develops in stages in
companies.

44