Business strategy sustainable development pptx

‘The pathway for sustainable development as ths book abundantly documents, sto seek nnn stations which can aleve environmental quality, increase wealth land enhance compesiiv advantage W

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Preface

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Change all around us: the word is changing as never befor The

scx buss ill ognize hast must set the challenge of

change and ta adseage of he opportanites tat come with it

‘Statements lite this are commonplace day, and who can doubt ther rth?

‘Business which understand the ends in today’s world are much more likely fo _suooed than are those set donot

sustlnable development addresses these challenges It provides aresponseo crial rvironmentl, economic and social issues, offering new opportuni for improved Ccompetitveness and prospetyofenterprses and natons

[USD believes sustainable development derives its fundamental value fom the recognition thatthe wore’ ecology and is acanomies re intesocked, we ae 10

‘et the needs ofboth present an futregenertions, this ect must be central to the deislons ofinvduals corporations and governments We also recognize

‘nother rita dimension of sustainable development the wel-belng of people This

|swhy sustainable development and prospery discussions need tobe inked

‘The pathway for sustainable development as ths book abundantly documents, sto seek nnn stations which can aleve environmental quality, increase wealth land enhance compesiiv advantage While this ma¥ appear 0 beaaloder, there

‘are goad examples where entesprses have been successful Inded chest current

‘business experience demonstrates tha: real Iadership and fast response are not only ossile but essential forthe good health of llmalorentorpises, We argue that itis hotonly goad business precce to undertake sustainable development iniatves itis also necessary o develop corporat eporing framerork whlch reflects these,

‘making posible the involvement of all stakeholder groups

SDs pets to have coopereted ith wo mor private enters organizations in the conduct ofthis work As well, thre hasbeen a high rate ofesponse io out daft

‘materiasfrom corporation, nds organizations end otes

“While there can be no St formula fo bulling sustainable development strategies, thls book provides roadmap ad etamples which canbe adapted tothe needs of

‘ndvdual rs The Instat wl fol wp this publication wit various inlsaives to

‘ecltae implementation We look forward o feedback rom coxportins and others

‘wo wish to participate inthe futher design and adoption of sustainable

evelopment busines actions

Anthury- Hanson

resident &CEO

Ierntional Insite for Sustainable Development

rately coe

7A sex at a HET ‹

n2 6n 21c truy i2 careeet 3o on mut Rgeing Sợ

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Background

—

‘The international Institute for Sustainable Development (USD) was established, wlth the suppor of the governments of Canada and Manitoba, help promote the

‘concep of sustainable development set out inthe epor ofthe World Commision

‘on Environment and Development (Srundtland Commisson) The Commission

‘defined sustainable development es ensuring that development “meets the needs of|

‘the preset without compromising the ally offre generations to meet helt,

‘wm needs

In pursuit ofits gal, ISD undertakes several programmes, one of which sto

neaurage priate and public ector organizations o incorporate sustainable

‘evelopment in thelr management processes, To help realize that obecive ISD inated a projet promote beter corporate reporting of sustainable development

fn environmental Hee

{USD’s undertaking complemented a project on corporate accountability nd,

reporting in elation to the environmen belngunderaken bythe Canadian fra of DDeoite & Touche and isinterntionalorganieation, DIT International I also colnelded ith the Business Counel on Sustainable Development's (BCSD) project {0 prepare a busines sector report tothe UN Conference on Environment and Development (UNCED) in Rio de Janeiro injuse 1982 The result was jony- sponsored research study by ISD and DRT Intematlonal, wth inpatand adéonal

‘nancial support fom BCSD

Objectives and Scope

“The projec focuses on corporate reporting forsustainable developmen, which s addressed within the broader context of earporate management processes The spec objectives othe work included:

» deemining the ole of busines sustainable development and the market and profit opportunities presen

» defining the strategle choles avallable to business enterprises in elton to

‘suuinable development and theenvtonmen, the interatcnal usage of each strategy, andthe determinants involved:

» asessing how managing for sustainable development wll quire revisions

to caren: managementsystem=

» exploringin detail te stakcholder relations and cosporetereporingaspecss ofthe management system: and

» recommending ations by goverment business nd othe parties hat wuld

‘enoouegs business enterprises to conzbute more ately to global sustainable development

“The projec waa ploneeting ello that endeavoured to determine he siate-o-he arton the foregoing sues easo attempted io lusvate why business enterprises

‘Should be concemed about sestinable development the ations hey might ker onurbute oi, and how they might benefit Because the projectwas managed

‘Deloltes Touche in Canada i crew lrgely on North American experience Tobring agobal pespectv tothe project an intamatonal survey was conducted through [DRT imtemational fms in 17 couises

“This book locates om large, publ corporations bur she implications forsmalez, svete eld companies and government are recognized emphases

Stakeholder relations issues, corporate reporting challenges and te aplicabl of

‘thelssues and possible espanses for business internationally

Work Programme

“The proecfolloweds four-phase work plan:

» Background Research: Secondary research oases the satus of corporate

‘reporting an sustainable development and envionment sss 95

‘ondlcted by collecting as man repos as possible rom various pars ofthe

‘word, More general research vas alo conducted regarding sustainable

‘evelopment environmental management and rested ses

» Discussion Paper discusion paper was prepared to soit ideas on various

‘anceps and propositions DDT lntemasonel, ISD en BCSD However Inialy 50 copies were distributed trough word off spread, demand

‘re an 1500 copies ofthe paper wer imately issued The nterational

‘survey vase fo secure adailonal business esponses othe pape

» Conslation: Ove 80 respondents provided comments onthe discussion

‘paper To generate further interest and ides, presentations besed on te

‘pepe were madi to he ISD Exeetive Committee and Board BBCSD Commitee workshops for non-government organizations in Geneva of Directors, snd Pas, and a workshop in Toronto sponsored by ISD and the Conference Board of Canada fore ross-seton of senior executives, environmental manages academics and environmental advocates

» Binal Reporting The deas an the comments received through the

“iscusion paper feedback, workshop consultations, continuing secondary research and concurent ustanabe development and enronmental assignments by Delos & Touche and DRT Intemational, were consolidated into drat report Alter beingeviawed and revised by ISD andoutside _actisors, the final book was published for ntemadona dissibaion,

‘Acknowledgements

‘The Canadian frm of Dloite& Touche and ISD are responsible for the contents of the book However, the special contribution of several individuals and onganizations

‘must be acknowledge

» Stophan Barg, Teasret oflISD, who dtected the projectand played an

‘essential loin project design, esearch advice, and drafting

> Tim Gocdfeo, of eloite& Touche, who ed the firm's project team and hls colegques Bary MeDovgall andJon Klgman who colloctivaly id the research and rote the Book

» isp Executive Commitee and Board of Directors

» BCSD forboth ideas and financial apport

» Respondents tothe discussion paper

> ISD Special Adisors Rob Gray, Haber: Showman and Alan Wis

» Pantcpants inthe Geneva, Pars end Toronto workshops

» Gary Brayton (Unite states), Ken Beocham (United Kingdom),

and George Molenkamp Netherlands of theDRT Interational

Environmental Semiees Nework

» DRI Intemational epresentties who participated inthe international ane

» Global Ensironmental Managemen Intatve (GEMM

» Ontario Round Table on Environment and Economy

» Loraine Ruling, Che, Accounting tases Section, United Nations Centre an Transnational Corporations

> Eaine Tamblyn, of Delolte& Touche and Janice Later, of ISD,

‘who provided administrative support droughout the projec

‘The rst chapter also includes examples of how parcular enterprises have benefited bbyenhancing thei environmental performance end highlights some environmental snd sustainable development inldatives undenaken by busines groups

“Thesecondl chapter outlines he state colces valle Ie describeskey factors induencing te srnepes adopted by management and reps on theresus ofan Insertional surey wich identifes he major forces that wiley shapa te

progress ofbusinesses around the would in improving their environmental and

"untiable development perfrmance

“Thebook en laysout seven tps for integrating sistainable development priniples fntoa fis busiess plang and management system Th premise isthatitien0t eceeey to invent new management methods rather anev poli and

‘orgenzatone cular willbe required alongwith refinements a casingsisems, ratios end procedures Suggestions are provided ay tolhow management might —> bout making hese changes anda checks included 2s in implementation

‘articular emphasis given oaccountabilyandstakeholder lations and

‘corporate reporting of ensironmental and sstalnabledavlopment performance

“These sues are explored in more dealin separate chapters with parictiar

‘consideration bang vent some ofthe practical sues that need to be addressed

‘rometing sustainable development requires the gtive involvement of al mambers

“ofsociery Whe business has an important ole to play its acts must be comple- :mented by supporiveactonsafathes In panicle, goverament muscesablish

‘policies and regulations that are consistant withthe sustalnable development

‘objectives ofsoieg: A chapters devoted to discussing some of these paces

“The book also ẻendiciniadeet which industry associations business

‘fgunizations and others inthe private sector might undercke opromoce the

‘evolution of environmental performance standards The business community so

‘wlequie reporting standards fo ensue tha corperte information provided to

‘akaholders is of high quality snd scomparableamongvaricus enterprises The bookaddresee research and other aves har should beunderaken nowt lay the

———

“The main tex ofthe book concludes with some recommendations aso haw business enterpses might get started in apotying the proposals discussed near chapters Four appendices er provided Te fi Appendix consis e summary af the ypes of sustainable development information acwbcing reported bya sampleat 1)

‘companies around the word The cited reports are publicly available and interested readers may wish to conse the companies diced to obtain copies

‘Te second which based on the results ofthe international survey referred

previously, contains a summary of the stato environmental awareness and,

Derfomance, and corporetc reporting for sustalnable developmen, foreach of 17

‘ounites around she world Ie proides some interesting insights aso how tings appear nos, where they mht realistically e in few years, and those fetors that

‘willy play significant olen beinglg about change

‘Tae third Append proudes aly detalledStuswaton of what a corporaton-wide sustainable development report might looklike I contains the Sustainable

Development Policy, Sustainable Development Objectives and Annual Report on

‘Sustalnable Development Performance of CleacoImematonal fetiious

diversified multinational corporation Asa means of encouraging experimentation, theAPpcndiiloergte reo iferetreporingforsaf

“Thefourth Appendix contain abe ces history ofbow a Canada eleeia uty made significant changes nits environmental and sustainable development outlook

‘nd periomance highlights past envionment proba, the impact of those problems end other developmen onthe compani’splulosopiyand operations its rolingelutlons with is stkaholders and the importance of employee invelvariont intheprocess

1 1967, the World Commision on Environment and Developmnen sued its report,

(Or Common Future ni, he Commission ste

Humana the abit make devsloprent sanabe— to

‘ensure that meets the neds of the present withour compromising

‘he ably of future generations o moe telex needs!

‘This has become known the concep of sustainable development One ofthe

anceps key Teturesis its potendl to integrate environmental and economic cts

{nto dessin making along withthe implicadons of those factors forthe wellbeing of

people For example, the eancep integrates concer for protecting he environmen

‘with concerns for reducing povery so people are not forced to degradesols and

-desuoy frets to achiev ther economl objecves.Trnteratesmarket choice and

competion with the need to ensue that such econamic exit does not deszoy the

physica and eologcl ystems that support integrates macro-level economic

‘theory with the business and compeive eles that face incvdual enterprises

‘As econom development replaces the Cold Warn the spotlight of world anention,

new challenges are emergog: How can such development be made istainableon

bal scale How can sustainable development be intgratd with te planning fort

‘evr se of global pores How can compete, as an ugenc public policy and

‘dass, dh sues uch asthe recesion andthe plicl and economic

‘eorginietion othe former USS?

‘Thetaak before uss notmeelyoneof rethinking problems caused

bythe pus of lunce in acutue that encourages ass

‘consumption we mest also cme o grips ith the glbal problems of

‘pvery/and papation increase, eimingo and overture

‘enertlonsa heathy environment that elowssstanaile

‘developmen on agiobal sale The goremments, companies and

‘pople ofeach nation mus became more aware af the olen this

fredecsour People trong he world must jam hands crete

"notiacialandeeonomi tem ha allow the advancamint of te

elf ofall human beings ae the conservation ofthe whol words

“Thisbook based on neo fundamental premises Thefts thet ou global

economic stem cannot continue to develop and prosper over the long termi

economic progres means string the egimeteneads of fare generations The

fer that the ozone layer i being depeted and that global warming soccursngare

‘vo Indleatons tat we are mating those ven soedfice+ The are others:

Dring he raeny yore since theft Barth Day, 2970, the world

lost nary 200 mln hectares ofr cover amare roughly these

ofthe United States east ofthe Missppt Rive Deserts expanded by

ome 120 milion hoctares, claiming more land than iscurrentty

"yet nm tp cn

planted to rope in China Thousands of planta animal species

‘voh wl we sharad the planet in 1870 no larger exis Over 200 decades, some 1 bill people were aed the wore’s population —more tha inkbied the planet 1900, Anu the tori’ farmers lot an extimated 409 ilion ton of 9p a roughly equivalent theamount of Inds crop land?

-Asecand premises hat the busines sector shouldbe concerned can make

‘difeence, andi often abla todo soon profitable basis,

implications for Business

‘thas become a dich shat environmental problems are substandl and that

‘economme growth cantbutes to them A common reponse sincreseed

‘environmental regulation that fequeni/inlbis grows Tho result sa rede-offar balancingacra clean and healthy environment versus growth and development Asa consequence, markatsand opportunites for business may be constrained

ur there ae forms of development that re environmentally and sotaly sustainable — development hat ds otto trade-f_ but to an improved environ-

‘ment: development that does not dre down our environmental capital but rather

‘maintains or inezeassit Such acti Involves nr only agricultural and, butalso the absorptive capacity ofthe atmosphere sol, and weter This swat sustainable

<developmentis all ebout — a revluonary change in approaching these sues As businesses andas societies we ean sock and fn approaches that will move tovards allthreegoals— ensronmental and social sustlnablty, and ecanomic devlop-

“nen the same ime seting new goals, we wllbath unleash many ofthe forces necesary 10 accomplish them, and open up my opportunities for business,

“The power ofthe sstanable development concept les n ts dual benefits — Itboth

‘opens new opportunites inall pars of the world and it avoid the tap of rading (ffenvizonmental goes against growth In order to continue to prosper, business

‘nus play oe, Sosy vill nolo ito be passive Acompany that doesnot embrace these principles wll n time be regulated into taking the actions would

‘ot take voluntarily and eficlenly On the othe hand sustainable developments good busines in isl is good busines for suppliers of green consumerism Aevelopers of envionmentally and socially ser mavrals and processes, Sm that {vest in inveasing theron efclncy or reducing waste and those that engage themselves in social wel- being, These enterprises will geneallyhavealegupon

‘he competion They will tend to enjoy theigcommunites' goodwill and will se the flores reflected in he bottom ne As indicated in Inter examples, many

‘companies are finding ways to make investments that show an atracive rate of

‘en through edueing, reusing, ecyllng or process redesign

"Boe Lit ạạ

: Development: A Business Definition

“While sustainable devlopment es received growing suppor and recogatin ince

(ur Common Furureves pbined in 17, tsa new concept 0 many business

executives For most he concept remains ebtret and theoretical sustainable

<evelopmentis to achieves potential, tmust be integrated into the planning snd

‘measurement sjtena of indvidual usinoss enterprises For that to happen, the

‘concept ofsutainabie development mst beatculated in tems familar to busines

‘and government leaders This deinion iolered to asst business leaders in

‘pplying the concept in their enterprises:

‘Sustainable Developmen: For the busines enterprise sustainable

‘development means adopting busines sradeies and aetotes that

‘eet the noes of the enterprise and is stakeholders day while

rosin surainng and enhancing he human and navel

soars el be nosed nthe fare

“Tis definition caprres the spe of he concept proposed in the repr of he World

‘Commission on Environment and Development snd foesse attention on areas af

‘speci inert and concer te business entorprises, recognizes that economic

development must meet the needs ofthe business enterprise and its stakeholder

“Thelaterinludesharcholders, lender, customers, employees, suppliers and

communities who are affecied (thes postvely or negatively) by the enterprise's

busines actives The definition als highlights the dependence ofthe enterprise's

‘economic actes on human and natural resources, in addition to physical and

SEnancial capital Iremphasizes that economic activi must not ireparably degrade

lor derroy these natural and human resource, Human resources refers tal people

‘fected dey or indneey bythe enerpriaes economic estes including

‘ermpioyees and the public atlage

‘The above definition bas ben provided to help business executes and decors

spply the concept of sustainable davelopment to thr ov organizations, However,

{simportanto emphasize tha sustainable developmen: cannotbe achieved by 2

‘Single enterprise (oor that matter, by the entre bainess community) insolation

lof the rest of soci Sustainable development isa pervasive pilesophy which

‘ever partlpant inde global economy (including consumers and goverment)

‘mur subse ise hope to meet odes needs witnou compromising the ability of

farure generations to meet thelr ovn,

‘The reearch underaken fo this book dntied several key pins regarding

sustainable dvelopment and the business sector

» Wile business generaly seeks precision and practicality as tha basisforis

planning efor, sustainable developments concept that not amenable

{osimpleand universal dfiion Furthermore itis Bud, changing ovr

‘mein esponse to increased information and evolving societal needs

Tero of osines in contbuting 0 sutalnable development issll Indefinite is generally agred ha sustainable development is social goal

‘ad that al elemenss of sciesy must share in and work enopeatvly achieve the goal While al business enters can make acontbution

‘Towards tsatanment, the capacity to postive or negatively afet the

‘utcame varies by sector and organization sie

» Some exerts consider the principal bjecave ofbusiness tobe making money; other sea broder social oe There sno consensus among business leaders 519 te balance between narow el-nterest thin hela ands Imposed real forthe social god, Sustainable development and Itfitiilf environmen esponsiblt are carrendyinthecentrcofthiscorporateand sucvanae cial policy confit Compr conta ace the aeed0 make uade-o

[beowsen what they would io do" and what they “mst "Input seo “Rnencelsirfngl ro ebreoderpnpecfxe it leary inthe interes of

‘busines io operate within ahealhy environment and economy Itsjustas maaan earth ons lol bs, rowing and snstainableeconomicsin he

— ‘Sevelping counties wl provide the best opporunltes or expanding

nam

TT aris ame, many afes of sustainable development sre ecicaly

=1 “nnbiguous making talificut plan acceptable and ellecsvecouses of

‘ction For example, te fresy industry mas diiculy defining what 2tfEsree vene tre ‘constitutes sainableorest managerant Some argue that simply

‘replacing toes anc managing ores on a sustainable yield basis

rocus sone sonst losuleotbeceueehơnccöngdeeco the biodiversity ofthe foretand ts

een recreation benefits The wansation ofthis notion nto practical ers for

Farge sale forest operations sins formative tages Research and

AE santero ‘experimentation willbe needed eslve suc comple, technical sis

‘or counsene sont » Businesses face trade-off when dealing with rension sues For example,

chemical eompany whose plantas excessive eluent cscharge hat cannot

‘Te ACTIONS WH ST bberemedieg economically might decide o replace with an

‘onmentlly acceptable fait But shogl the company lose the BH: ‘isting plant and rik losingmatket share and experienced personne! during

‘he owe orthre year construction pelo Or, should the company continee tw operate she poling pant despite the attendant cost oftnesand adverse sosranaace ble eltons? Which isthe beter course of ation in terms of solo pevetonmee ‘conotc eonibuton tothe community and jobs vers the ensonment? » Tosome, sustainable development and the envionment ere synonymous

Insofar ss business concered Inthe shor term, sound eneronmenta ecformance is probably a easondble objective for most businesses, with proactive surtsineble development iniatves ass longer term goal However, {bls definitional sve produces confsson for many businesses In tlsbook, sustainable developments recognized as being distinc from environmental

‘management Inthe developed world tha focus sore strongiyon

‘environmental management as means of encouraging sort term ecdons

‘wile sil adhering ro the broader goal of sustainable evelopment In he

‘developing word rap and sustainable developments paramount

» Protecting an enterprise's capital base o ensure is nancial sustainably is

‘wel recognized busines principle Bisness dows not generally accept she

lea of exening his notion tothe world’s natural and human resources

‘Thar presentsa challenge fr those who sock the suppor of busines for

sustainable development

» The globaleconomy thar has generated an annual output of USK lion

{whe contributing theaforementioned problems) snow under pressure

‘finance the restoration a the environment Burts economic engine's

so being asked to hep solv other very pressing and rel problems I's

fxpecte to generate the capital and jobeto close te gap betwoen the

‘develope and developing nations prosde employment foran expanding

_dobal population andl finance the economic rehabilitation othe Easter $Bloe in particular the former Soviet Union, The challenges a solve al of

‘hese problems in sussinele manner, 038 o generate continting

‘developmen

Despltesmbigulles about is dfinion and the ole of business theres suppor for

the concep of sustainable development within the business community However,

for that suppor to continie row, wil be important w encourage and reward

‘hose new managerial natives taken in suppor ofthe concept

Positive Signs of Change

\wittam Multigan, Manager, Environmental Mars of Chevon Corporation, echoes

‘he lew of man that the environmen isa petmanentisnie forthe busines

‘commit that presents bot challenges and opportunites:

(Over the las decade we haveseen manypilsconming he

Importance of the ensronment mereans Onlyaninesponibe

campanywoud sis this trend as passing fa or fal recognize

‘hed to integrate vironmental consertions ito every aspect of

ta bueisee Entronteral excellence sf become prt of eae

‘hii, els ow best econemicinerest dos fc whenever

swear forced o change often ind potential opportunist

“This postive change naudes and busines practice towards environmental issues

bbsaleo boon noted by goverment and hel ass, such asthe Organization for

"Economic Cooperation and Development:

Thisdsvelopment has had tw ees a much clase negation ofthe

objectives of ensronmental protection and industrial growth and

(ater demands on industry to improve isa recor, polation

‘contol produc: quali: Tere ls now aes prospcof

‘harmonising onronmenta nd ecnomieconsideatons and tus

of eal incorporating these objectives i policy."

“uta icp KG ah ae re tin Wa una Serio be Sotuant

05, Sut on Pat

tr cmheyy nh

“Thefllowing general obsertion was made about the 1991 Environment Conforence

‘o-sponsored Arthur Litle and The Conference Boardin the United Sates

Although many specks noted he substan cosisofenvironmental

“teuardshlp moswould agree with Norther Telecom's

‘Dr Margaret Ker, wo sald, “The cas for business gute

compeling: We have saved money seamllnd ou proces and

Improved product quan” Indeot, dere was agrement nang

‘anference participants tat god environmental practices ae good

Inusiness ad that opporaniss abound forcompanies tone the

‘bet nthe environmental challenge

Many exeeives have demonstrated shat pursuing sustainable development

"reges makes good buss sense [or hele organizations and has had a positive

‘fecton them Forexample:

clams that ite programs have saved $50 lon witha equal

‘ama decrensenemeionsemst 125 ons fewer lr pola

{for stance 43M plant scaled don a west wate reatment ‘by half snp yrunningecoling water trough factories ecily repeatedly ica o charging afer single se Another SM

plant save S125 000 pe ea by istallng new ein-spray

‘ulpment, witha morecarfullyconlled nozle

Dow's "Waste fodcion Alu Pay program, whe began 1985,

‘has engendered more tan 70 projects saving lions of dollars

ar Westinghouse’ “Aehlevementsin Clean Tecnology” proj,

‘formalized in 89, has enjoyed sila rule none Westinghouse

‘etal inisng factory n Puerto fo, te company ut dragout— the

‘contamination accident carried as chemical low fromone wank

‘another — by 79% simpy by shaking the tank to remove solids

bore rela he chemical ano thence ane

Pile Gas and Electric for instance recent decd that ney

‘conservation isa more pofableinvestment than nuclear pote

‘Du Pont converted its inhouse paluton prevention program into

consulting operation, and McDonald's made wel publica move

{from plstis to paper the cornerstone ofa rch broader a is

‘ble waste redution strategy The managers of these business

‘loaf have comet believe tar entronminsalism has something

fer busines that no ust he her ay around

In an interview its Tomorrow: The Global Bietonment Magazine oh Ekingson of

‘Sustainability Led discusses the change inatitude of businesses towards

‘environmentalism

“Ware ssing he birt of corporate environmental.” he sti In

fac, the main pens for sustainable development inthe fture wi

probably come from bane.”

(Other developments re also important, esmesses Suddenly, many

ansomers are prepare fo pay more foreironmentall) sound

produc: nd dhe emergence efasmall bu significant group of

‘corporate vironmental performance

‘ih i Beco years, Egon says tat companies are

king Pore whiner than spy responding ouside

resure fom consumers and envtronmentalts?

Some companies have aleo states o formally epor on thse envronmental and

slay respostbe activites, The curent discloses range rosa few general

objetives ncleded in cotporate Directors or Management Repors, fo detailed

separate environmental and/or socal repors A profile ofthe ‘pes ofinformation

‘hats now being reported is included in Appendix A

Collective Business Initiatives

Ï_——

Business support forthe concept of sstinable development or camprehensive

‘environment managements rowing rapidly The eons ofmulinatinal earpora-

tos are che most vil, and those organizations do play leading les n promoting

‘theconcept However many small or elum-sized ems are equaly commited

“This supports demonstrated by tbe numberof busines enterprises that ae involved

inleacing prcpmtingin ane sponsoring intemational, atonal and epionel

organizations dcicaed to the goal of sutsnable development o, more immediatly,

‘comprehensive environmental management Some earples ar outlined below

> INTERNATIONAL,

‘Business Cound for Sustainable Development (BCSD): The BCSD is made

up ofthe chet exeeusveofcersof50 major national and muknatonal

corpormlona frm al yon ofthe worl, s mandate isto promote clear

‘understanding of environmentally sustainable development, nd o provide

‘business perspective on ways to achieve this oel ona loba basis The

'BCSD's work wil culminatein amajoreporton enironmentand

development to be presented atthe 182 Fath Summit The BCSD

supported the work reported on in this book as paraf their aa research

Internasonsl Chamber of Commerce (CO}:In response tothe World

(Commission on Environment and Developmen: repo the International

(Chamber of Commerce inated taskforce o business olla 0 promote

lmmprosed environmental performance by busines entepsse, Tis ask

force developed a Business Charter for Suszinable Development that,

according t the TOC “comprises 16 principles for envionment

‘management which, for bosines is wally mparant espe: of sustainable

‘evelopment’ Tae cher inciaces environmentally rested aspects of

health sles snd product stewardship Is abecive “that the widest range

‘enterprises commit themscieso improving the enstenmental petiormance in accordance wth te Panciples, 0 hangin pace ‘management practices io ffct such impravernent o measuring their Drogress sd to reporting this progress as appropriate ntenallvand

‘external To date over 620 companies have lged the Charter ad severe Industry associations an coalons ute its the bes fo thelr programenes,

“ThelCC's Intemational Enironmeatal Bureau is responsible forthe hare programme anda felted project 10 document casestudies demonstra sound environmental mansgement practice as advocsted bythe Charter Coalition for EavinmentllyResponsble Economies (CERES) CERES is analliance ofihicalimexment organizations, several leading

envionment organizations managers and ahsors- CERES has developed the Valder Principles set of 10 principles for corporateenvrurmental

‘esponibil These gulelines are intended o “encourage the development

of psine programs designed to preven: envronmencal disasters and

‘degradation Corporations are encouraged to ecome signatories othe Pnsiples and o complete an environmental epor assessing thet poles and practices against exch peincpe

{ntemadonal Standards Organization SƠ: The SO is wel: known for developing promoting end implementing ual sandards (150 9000 andi

‘snow considering launching sllar programme for envicmental management andards One proposal al forte S0 to adopt the Bish Standards instinte's Environmental Managemen System whieh in he

‘advanced design stage and Is expected 0 beialzed soon

» Untren Srares (Global fvironmental Management Iniatve (GEMD: GEMEisacrss- sesoral coalition of 20 major United States corporations formed areca of

‘fons by aworkng group ofthe Business Round Table Adional members

‘sre being recited and GEM hopes that countespart organizations wil be

‘ereloped elsewhere in she word GEMI members beliew inthe

‘hnndarsentl precepe tar busines, by aking control of ts environmental

‘esting, can spr change fom within and crete eTorum fr sharing

‘lions among indus worldwide" One of GEN major focuses is

"bringing the (CC) Business Charter for Sustainable Development tie"

‘Vermant Business Asociaton for Social Responsibly (VBASR): The

\VBASR is reportedly theft independent sae busines stscition of

‘inn the United States ts approximately 80 members subserbe to concer over issues of workplace environmental and community equality as

‘wellasproftabliy, Le, “the dal boom ine

»Canaoa

‘Business Counc on National Issues (BCND: Made up of top executes from

160 of Cansde's largest companies from every major seewor ofthe Canadian ecotiomy, BCNI sa msjor forum for cecuesing public poy esas in (Canada and abroad Sustainable developments one afte Counai'srorsy {seues an, this regard, thas been working aevely withthe BCSD

“The Canadian Chemical Produces Assocation (CCPA\: Tae CCPA

represents chemical companies responsibefor some 80 per cent ofthe Incusty’s production, One ofits leading programmes s Responsible Cae, an environmental management code fo which all members mus subscribe Each company regularly reports its progres toward achieving te standards secoutin he Code of Conduct Countepar programmes have been

‘stublshed by smiar chemical associations nthe United States, the United

‘Kingdom, France, Austaia and New Zealand,

Challenges for Management

a

“Tore-orlent business enterprize to suppor the concept of sustainable

evelopment, mangement mus adres the following fundamental questions ach cof which is examined in subsequent chapters of ths boo}:

the environment

» Now wilt enhance management sysemstofmplement the szaty selected?

» How wl i manage the growing accountable for continuous improvement toward sound environmental manegement and sustainable development pancplest

» inwhac ways wiles corporat reporting policies and procedurest

» what wilt do in relation to public polly standard-seving anda plan faction?

fit

‘The Strategy Decision Process

Boards of dectors senior management and owner-managers may addres the

lullenge of nveonmental and sustainable development in varity of ways few

{oars ago, enterprises wer expected fo progeessin an evelutionary way, fom

‘gotaped of eaironmental sues toa posite approach w environmental

‘management af eres of increasing avareness and inovledge,

“Lingering ignorance and slow evolution toward postive environmental management

‘no longer seem lk Corporate ofcers—as individual citizens as wellas business

decision makers — are continuously bombarded with envionment messages fom

sovemment the medi, industry astoctatons, castomers supplies, xvzoamensal

snd community interest groups and thelr ova fale The technology needed 10

‘Sean up past probleme end minimize or eiminate environmental negative

processes or producsis advancing apd Indeed, many progressive companies

‘make these technologies avtableto others thet industry in order 0 fostr

|emproves exvtormentl performance

‘Therefore rather han moving in stepby'step fashion fam one guneralsatgy to

she next, businesses tend to make strategie choices on environmental issues These

choices are bese ons combination of intemal and extemal factors which, because of

‘hele imporance, can modsate management to make significant searegy changes

over a elativel shor period of tine

‘The process of seleing a pardcular sustainable development or environmental

management segs complex, involving several cel factors Somes the most

‘common ones identifies in the intematona research cased out foe his book are

‘outlined below

> Expanoin ACCOUNTABILITY

inmost developed courses, privately-owned business enterprises were

‘radionaly considered o be accountable mast exchusvely to their owners

and shareholders Their sole objective vas to enhance those groups rancil

‘wel-being rte within the bounds of hele and they could do this almost any way the liked 89 ongas they

‘In recent yar, socity has realized that business enterprises ae responable

formore than just delivering goods and services and maximizing returns to

‘heir owners Clee abroad range of people and entities havea stake in

busines enterprises even hey do not share inthe profs Besldas

shareolders, hese stakeholder inckide lenders, supplier, customers,

m the local communis in whic the enterprises operate and

‘others thatthe busines aes in esigniicant wey Business enterprises have

a moral if not egal accountabilty to these verse groups These

‘akalders are beginning to recognize their igh to communicate hele

concems to management and 1 influence corporate bebaviout

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"— eed star enone leglaion Tel gong Tatty exposure css roseuon rene esas nna recor ves ofevtonmenca es spasedzecuaricrening’y concerned skorecalegg oetdon ol managensn, demand peueinomatonandseao m=— dete