Showing papers in "Business Strategy and The Environment in 2002"

Beyond the business case for corporate sustainability

Abstract: The article is intended as a contribution to the ongoing conceptual development of corporate sustainability. At the business level sustainability is often equated with eco-efficiency. However, such a reduction misses several important criteria that firms have to satisfy if they want to become truly sustainable. This article discusses how the concept of sustainable development has evolved over the past three decades and particularly how it can be applied to the business level. It then goes on to describe the three types of capital relevant within the concept of corporate sustainability: economic, natural and social capital. From this basis we shall then develop the six criteria managers aiming for corporate sustainability will have to satisfy: eco-efficiency, socio-efficiency, eco-effectiveness, socio-effectiveness, sufficiency and ecological equity. The article ends with a brief outlook towards future research. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

The Sustainability Balanced Scorecard – linking sustainability management to business strategy

Abstract: The Balanced Scorecard of Kaplan and Norton is a management tool that supports the successful implementation of corporate strategies. It has been discussed and considered widely in both practice and research. By linking operational and non-financial corporate activities with causal chains to the firm's long-term strategy, the Balanced Scorecard supports the alignment and management of all corporate activities according to their strategic relevance. The Balanced Scorecard makes it possible to take into account non-monetary strategic success factors that significantly impact the economic success of a business. The Balanced Scorecard is thus a promising starting-point to also incorporate environmental and social aspects into the main management system of a firm. Sustainability management with the Balanced Scorecard helps to overcome the shortcomings of conventional approaches to environmental and social management systems by integrating the three pillars of sustainability into a single and overarching strategic management tool. After a brief discussion of the different possible forms of a Sustainability Balanced Scorecard the article takes a closer look at the process and steps of formulating a Sustainability Balanced Scorecard for a business unit. Before doing so, the basic conventional approach of the Balanced Scorecard and its suitability for sustainability management will be outlined in brief. Copyright © 2002 John Wiley & Sons, Ltd and ERP Environment.

Green marketing, public policy and managerial strategies

Abstract: Green marketing subsumes greening products as well as greening firms. In addition to manipulating the 4Ps (product, price, place and promotion) of the traditional marketing mix, it requires a careful understanding of public policy processes. This paper focuses primarily on promoting products by employing claims about their environmental attributes or about firms that manufacture and/or sell them. Secondarily, it focuses on product and pricing issues. Drawing on multiple literatures, it examines issues such as what needs to be greened (products, systems or processes), why consumers purchase/do not purchase green products and how firms should think about information disclosure strategies on environmental claims. Copyright © 2002 John Wiley & Sons, Ltd and ERP Environment.

The evolution of environmental management: from stage models to performance evaluation

Abstract: In the past two decades, academics and practitioners have attempted to improve understanding of environmental management by classifying companies' environmental behaviour, and evaluating their performance. Driven by both research and societal interest, this has resulted in a wave of stage or phase models, and a range of typologies. This article gives an overview of the development of such environmental management models, analysing their characteristics, strengths and weaknesses. An evolution can be noted in the direction of typologies and non-linear models to deal with organizational and strategic complexities. Models are starting to pay more attention to the management side. To overcome problems of operationalization and limited company and sector specificity, environmental performance evaluation systems have emerged more recently. Although comprehensive performance assessments are still unavailable, the tenets of such a system can already be delineated. The paper presents these components, and draws conclusions on the contribution of environmental management models and performance evaluation systems. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Incentives and disincentives for corporate environmental disclosure

Abstract: The year 2000 saw the launch of AA1000, a standard designed to enable corporate ethical performance to be judged. If such ethical performance is interpreted as social and environmental behaviour our view is that it should lead to more social and environmental disclosure. Yet the willingness to communicate corporate social and environmental performance still seems to be limited. Of the social and environmental disclosures that exist many appear to be rather fragmented and disparate. In this paper we explore the apparent paradox between concern for the environment and the limited amount of corporate environmental disclosure (CED) that takes place. Through an empirical study, the incentives and disincentives for CED are identified. Findings from the study identify a difference between the information requirements of ‘users’ and the willingness of ‘preparers’ to provide. The paper makes some tentative policy suggestions with the intention of bringing the two parties closer together. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Responsible chain management: a capability assessment framework

Abstract: In recent years, increased attention has been paid to issues of responsibility across the entire product lifecycle. Responsible behaviour of organizations in the product chain is dependent on the actions of other parties such as suppliers and customers. Only through co-operation and close interaction between the different parties involved is it possible to come to a specified form of responsible chain management. Drawing on stakeholder theory and literature on the resource-based view of the firm, this article presents a framework for assessing the organizational capabilities of responding to claims from internal and external parties. Interpretations of stakeholder interests, integration into business processes, monitoring these processes, and communication with stakeholders are the central processes in this framework. The application of this framework to three cases of responsible chain management illustrates the functioning of the framework as a tool for assessing organizational capabilities.

Voluntary adoption of iso 14001 in japan: mechanisms, stages and effects

Abstract: This paper seeks to understand what factors contribute to voluntary adoption of the ISO 14001 environmental management system by private sector facilities in Japan. A model based on regulatory, competitiveness, social responsibility and organization theory is applied to 1999 survey data. Analysis shows systematically different factors to be important indicators of voluntarism in different industries and for facilities at different stages of certification. First adopters and second adopters appear to be fundamentally different types of organizations driven by different internal and external factors. Although results do not indicate a clear causal linkage between ISO adoption and greening activity, evidence shows that at least two different stages of adoption have taken place in Japan and that ISO adoption is associated with environmental action. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Corporate Environmental Performance Evaluation : Evidence from the MEPI Project

Abstract: In recent years research has been rapidly and actively emerging on indicators of environmental performance in industry. Crucial issues are the kind of information that must be taken into account, is available and is relevant, as well as standardization and aggregation of such information. This paper reports on the experience gained in these matters, in the scope of a European Commission funded project involving seven research partners across Europe. Practical applications of the project cover six industrial sectors within six European countries. Exploiting the adopted indicators allows us to draw conclusions about the influence of various factors, including the national context, on environmental performance, and to provide both managers and decision makers with information that is useful for the overall improvement of environmental strategies and environmental regulation.

Environmental management systems, communicative action and organizational learning

Abstract: In recent years, an increasing number of private as well as public organizations have been engaged with implementation and use of environmental management systems (EMSs). This raises questions as to the reasons for implementing an EMS and, not least, about the roles and contributions of an EMS in an organization. Based in particular on research on contemporary municipal environmental management in Sweden, and also drawing on EMS research and experiences in other countries, this paper argues that an EMS may be understood not only as a technical tool for analytical management, as is traditionally done, but also as a tool for communicative action and organizational learning. Copyright © 2002 John Wiley & Sons, Ltd and ERP Environment.

SMEs and the environment: evaluating dissemination routes and handholding levels

Abstract: The Better Business Pack (BBP), a toolkit intended to enable SMEs to develop plans and activities that would lead to environmental and financial benefits, is evaluated. It is found that in spite of high user evaluation of the toolkit in terms of design, user-friendliness, being up to date and recognition that little effort was required before returns could be achieved, actual financial and environmental achievements were patchy. The BBP was designed as a stand-alone package that would stimulate SMEs to embark on this path without further support. However, the nature of the dissemination route and the presence of ‘handholding’ support significantly affected success levels. Furthermore the nature of this support was crucial. The most effective support came from pre-existing networks and opportunities to learn from fellow users, rather than traditional consultancy and other external agency support. Awards for best practice were also found to be of importance. Copyright © 2002 John Wiley & Sons, Ltd and ERP Environment.

Environmental reporting in Australia: current practices and issues for the future

Abstract: This briefing addresses a number of current practices in environmental reporting in Australia. It is limited to consideration of mandatory and voluntary initiatives at the national level (rather than state or territory levels). Three initiatives are explored. Two of these are mandatory requirements—section 299 corporate disclosures required under the 2001 Corporations Act and section 516 disclosures by Commonwealth government organizations under the Environmental Protection and Biodiversity Conservation Act 1999. One other initiative is voluntary—Public Environmental Reporting—and is aimed at all organizations. Links with the Global Reporting Initiative are considered, followed by a brief comment on incentives and users of environmental reports. The briefing concludes by raising three issues that need to be addressed in the future—sustainable development; education, training and communication; and environmental accounting. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Determinants of environmental management systems standards implementation: evidence from Greek industry

Abstract: This paper employs logistic regression analysis to test a model that predicts the implementation or not of Environmental Management Systems Standards (EMSS) by considering various factors as explanatory variables. The dependent variable is a dichotomous as either implementing or not EMSS by industrial firms. From past experience we identify 15 major variables contributing to implementation of EMSS. A sample of 259 respondents (84 implementing and 175 not) is used to estimate the parameters of the logistic regression model employing maximum likelihood. The results show an overall significant model with 4 of the 15 variables significant. The significance of management perception of environmental issues on their decision to implement EMSS was confirmed with regards to their perception on win-win possibilities. Pressure on companies to improve their environmental performance does not result in higher uptake of the standards. Company’s image and size are important factors in its decision to implement EMSS.

Internet use for corporate environmental reporting: current challenges—technical benefits—practical guidance

Abstract: The huge opportunities of using the internet for corporate reporting are arranged in a comprehensive system of technical benefits. In order to give a tangible example and describe practical use thoroughly, the benefits are focused on environmental reporting but they can be transferred in major parts also to financial, social or sustainability reporting—seen as a currently emerging trend towards integrated financial, environmental and social reporting. In more detail, the system of internet-specific benefits is illustrated by four main categories: benefits concerning the underlying purposes of publishing reports, benefits concerning the entire reporting process, benefits concerning the report contents and benefits concerning the report design. In terms of corporate reporting, professional internet use will enhance the way in which companies give information, communicate and manage their business internally and externally, benefiting all members involved that are reporting companies, addressed key target groups and other stakeholders such as standard setting institutions and benchmarking organizations. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Environmental management of transnational corporations in India—are TNCs creating islands of environmental excellence in a sea of dirt?

Abstract: This paper discusses how and to what extent local environmental practices at affiliated units of transnational corporations (TNCs) are influenced by TNC headquarters (HQ). The study focuses on intra-firm dynamics of what is termed ‘cross-border environmental management’ of TNCs. The study documents that the environmental management of TNC-affiliated units in India are strongly influenced by HQ's environmental policies and standards. However, it is found that there are deviations in local practices from intentions and policy commitments stated at HQ. This can be particularly attributed to local economic and political factors. Cross-border environmental management is making a difference. However it is limited to affiliated TNC units and few additional external environmental impacts are documented. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Companies' participation in EMAS: The influence of the public regulator

Abstract: When adopted in 1993, the European Union's Eco-Management and Audit Scheme (EMAS) was viewed as emblematic of a new policy approach involving more flexible and market-based environmental instruments. A few years after coming into force, EMAS does not appear to be a tremendous success in terms of industrial participation. Apart from in Germany and Austria, participation is insignificant and comparatively very far behind that in ISO 14001, the environmental management standard of the International Organization for Standardization. The paper seeks to explain this modest result. It focuses on the influence of the European and national regulators on industrial participation. Using a comparative analysis of the implementation of EMAS in France, Germany, the Netherlands and the United Kingdom, it argues that the most powerful participation leverage has been the granting of regulatory relief for registered companies. This leads one to be pessimistic as to the future of EMAS. The possibility and scope for a lighter regulatory touch are primarily nationally specific since they are related to the national regulatory traditions. Consequently, the systematic and comprehensive use of this leverage is unlikely to generalize. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment.

EMS models for business strategy development

Abstract: This research investigation identifies the organizational barriers that can occur within large organizations to impede the introduction and development of environmental management systems (EMSs). The findings from the six case study investigations into multinational electronic and telecommunications organizations enabled the construction of four categorical models: devoid, isolated, devolved and integrated. They provide a profile of the way organizations use their EMSs and detail the types of organizational barrier that are likely to occur in each case. The models are designed to offer insight into the profile of the organization, the type of EMS being used and the operational advantages and disadvantages of using each model. They offer managers additional decision-making tools with which to assess the EMS profile of their own organization and those of competitor organizations and to assess the effectiveness of an organization's EMS in weak and strong economic conditions. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Characteristics of environmental reporters on the OM Stockholm exchange

Abstract: External validation of company environmental performance is normally based on corporate environmental reports, due to the lack of other information. Critics of these reports, however, claim that these are no more than public relations exercises, consisting mainly of wordy descriptions and glossy pictures. It is therefore important to turn the spotlight on the real character of the companies behind the reports. Fewer than 10% of the companies listed on the OM Stockholm Exchange, however, provide documented environmental reports on the Internet (DERI) annually. The highest DERI percentages are found among those industry sectors that began reporting some ten years ago. Data from the Dow Jones Country Index Sweden shows that DERI producers have an average market capitalization some six times greater than non-producers. Moreover, the DERI producers emitted twice as much CO2 per turnover as the non-DERI producers. The fact that less than half of the companies on the OM Stockholm Exchange presented CO2 emission data somewhat weakens the conclusions on emissions. The fact that 60% of the DERI producers could not provide complete CO2 emission data for their companies does say something concrete about the usefulness of current DERIs as a tool for externally determining company environmental performance characteristics. Copyright © 2002 John Wiley & Sons, Ltd and ERP Environment.

Strategic inter-organizational environmentalism in the US: A multi-sectoral perspective of alternating eco-policy roles†

Abstract: During the last several decades, numerous policies and programs intended to advance environmental goals have been formulated in the US by governmental bodies and implemented by businesses and nongovernmental organizations. This article forwards a multi-sectoral perspective that business and nonprofit organizations have also been significantly involved in environmental policy and program formulation, as well as implementation, and that governments have also fulfilled the latter strategic role in US environmental policy. In this article, nine US environmental initiatives are described and categorized according to which of the three sectors' organizations were significant formulators of the programs and which were significant implementors. Implications for future research include investigation of other environmental dyadic program combinations in addition to those presented, extension of the present analysis beyond dyads into environmental policy networks, inclusion of the strategic environmental program evaluation stage to complement formulation and implementation and exploration of effectiveness variables in cross-sectoral, inter-organizational collaborations. Implications for educators and practitioners are also presented. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment.

Pathways to industrial environmental improvement in the East Asian newly industrializing economies

Abstract: After the adoption of ‘grow first clean up later’ environmental strategies, governments in the East Asian newly industrializing economies (NIEs) turned to environmental ‘clean-up’ by enacting landmark environmental legislation, creating command and control environmental agencies and promulgating tough air and water emissions standards. Available evidence suggests there is wide variability in the performance of these new environmental regulatory agencies. Most attribute this variability to differences in ‘political will’. However, why have some governments among the East Asian NIEs been able to muster the ‘political will’ to impose duties on industrial polluters while others have not? This paper answers this question by summarizing a larger study (Rock, 2002) which examines the ‘politics of industrial pollution’ control in six East Asian NIEs. Each case study is based on extensive interviews, the collection of data on the effectiveness of pollution management policies, and the integration of both with the political economy literature on each economy. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

The experience of EMAS in three European countries: a cultural and competitive analysis

Abstract: EMAS, the European Eco-Management and Audit Scheme, has been open for participation for six years now. Looking at registrations per country, a concentration of registrations in northern European countries is evident. The first part of this article investigates potential reasons by applying two popular models. Geert Hofstede's four cultural dimensions are used to explain favourable or unfavourable conditions for EMAS in a country. Michael E. Porter's national diamond is used to investigate determinants for national competitiveness and their influence on environmental management. These two frameworks are applied to Germany as a benchmark and France and Spain as representatives of southern European countries. In the second part of the article conclusions are drawn from this investigation on the influence of national culture, conditions and incentives for EMAS in these countries. Lastly actions for increased participation in EMAS of southern European countries are presented. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Financial comparability and environmental diversity: an international context

Abstract: Accounting and environmental management both hold improved resource-use efficiency as an ultimate goal, but intermediate processes and objectives vary and consequently it is separately assessed within each discipline. This paper intends to make visible the globalizing trends in accounting practice, which aim to standardize financial reporting to produce comparable information so that shareholders can maximize their economic wealth. This paper seeks to contrast this comparability strategy with the apparent need for diversity in accounting information exhibited by actual accounting practices, the information needs of environmental management and, ultimately, the cultural needs of sustainable development. We argue that a more pluralistic model, that enables a holistic assessment of corporate performance and balances diverse stakeholder objectives, is better suited to an uncertain future. Implementation requires accountants and environmental managers jointly to create and test a new order of reporting. There are many practical challenges but most significantly accountants and environmental managers must combine to enhance the visibility and credibility of these diverse performance measures.

Partnerships, management systems and the search for innovative regulation in the vehicle body shop industry

Abstract: This article examines innovative approaches to regulating the environmental performance of vehicle body shops, in the state of Victoria, Australia. Based on field research, this provides a useful opportunity to not only identify the limitations of the environmental management practices (including regulatory resistance, a lack of resources and cultural obstacles), but also the failure of conventional regulatory approaches to adequately address and overcome problematic characteristics typical of small and medium sized enterprises (numerous, geographically dispersed, environmentally unsophisticated and, collectively, a substantial source of pollution). Particular focus is given to cleaner production, partnerships and environmental management systems in improving environmental performance. We also consider the potential role of ‘regulatory surrogates’ as an adjunct to a mix of government regulatory initiatives. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment.

Government and NGO partnership in managing community‐based water resources in Vietnam: a case study of Thai Long Dam Project

Abstract: Economic reform policy called ‘Doi Moi’ introduced by the Government of Vietnam at the end of 1980s opened new opportunities of community-based involvement in the policy and decision-making at various local levels. Innovations such as decentralization of decision-making power to lower administrative level, and recognition of the local community's role in managing their natural resources, e.g. transfer of irrigated water management right to local communities, were introduced. Significantly, this new institutional framework also facilitated greater civil society involvement in Vietnam. The Water Users Cooperative (WUC) set up through the Thai Long Dam Project mobilized local farmers to participate and manage their local resources in a sustainable manner. Through this process, the WUC was able to strengthen itself as a civil society institution that mediates between the individual and the state, as well as a forum for increasing government responsiveness and accountability. The success of the WUC of the Thai Long Project implies that the Vietnamese civil society is playing a more active role in the decision-making process. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Managing Globalization for Sustainability in the 21st Century

Abstract: This essay provides an overview of the Ninth International Conference of the Greening of Industry Network held in Bangkok, Thailand, on 21–25 January 2001. For the first time in its ten-year history, the Greening of Industry Network (GIN) gathered outside Western Europe and North America, with the theme Sustainability at the Millennium: Globalization, Competitiveness and the Public Trust. To highlight this important event, this special issue of Business Strategy and the Environment will place special emphasis on the Asian region, particularly on the issues confronting the economically less advanced countries. The overarching theme of the conference as well as many of the papers and discussion at the conference was globalization and sustainable development, and the relationship between these two issues. There was a rich if not a divergent perspective on what the relationship implies for the different Asian economies as well as for economically less advanced countries in general. After examining the relationship between sustainable development and globalization in the Asian context, this essay will discuss two themes with important implications for sustainable commerce: stakeholders and civil society and industrial competitiveness and transformation. The essay will conclude with some thoughts on the path that globalization has taken since the terrorist attack in the US on 11 September 2001 and on the 10 year anniversary of the Greening of Industry Network. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Collective action in the face of international environmental regulation

Abstract: Most studies of environmental impacts operate at the level of the individual firm. However, firms can act collectively in the face of threats such as that described in this paper: the banning of CFCs. A framework based upon concepts from theories of collective action is used to explain why two different forms of collective action were initiated by producers of CFCs. Economic calculation operating within the social institutions of the industry seemed to provide a plausible explanation for the occurrence of co-operative behaviour. In particular the concepts of collective goods and free riding proved to be helpful in explicating the driving forces that led to joint action in these circumstances. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment

Ecological tax reform - a value chain level approach

Abstract: This study assesses the effects of an ecological tax reform on three value chains. These case studies lead to an analysis of the business strategy options when companies face a shift in the relative prices of their production factors. The results support earlier research findings that the direct effects of an ecological tax reform on the price competitiveness of companies is on average rather small. However, the effects of the reform are shown to vary significantly between the different parts of the value chain. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment