1996 Electronics Industry Environmental Roadmap - Civil and ...
1996 Electronics Industry Environmental Roadmap - Civil and ...
1996 Electronics Industry Environmental Roadmap - Civil and ...
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Strategic Business Opportunities<br />
small number of firms have been experimenting with independent evaluation <strong>and</strong>/or<br />
certification of their voluntary reports of environmental performance.<br />
For the past two years, NORTEL has inserted two pages on environmental performance<br />
into the corporate annual report. This is in addition to preparing a separate environmental<br />
report describing their programs <strong>and</strong> progress in depth, including the EPI score. The<br />
environmental report is audited by Deloitte <strong>and</strong> Touche as a third party reviewer. Cahill<br />
<strong>and</strong> Kane point out that “DuPont in its 1992 <strong>and</strong> 1993 Corporate <strong>Environmental</strong>ism<br />
Reports provided the executive summary, along with DuPont’s response, from a thirdparty<br />
evaluation of the company’s Corporate <strong>Environmental</strong> Audit Program…” ([4], p.<br />
419). At the present time, there is no single “certification” that has industry or public<br />
acceptance.<br />
Some firms have used information about environmental performance not only in internal<br />
planning, but also in external publications. In part, this is done to manage public <strong>and</strong> private<br />
(e.g., regulatory) perceptions of the firm. Because of concern about negative<br />
response to private <strong>and</strong> public information about a firm’s environmental performance,<br />
some firms may be reluctant to publicly report this information (beyond what is required<br />
for compliance per se). However, a pure compliance-oriented reporting strategy may be<br />
insufficient if competitors are regularly making more extensive disclosures voluntarily.<br />
Consequently, many firms benchmark their environmental disclosures (both in the annual<br />
report <strong>and</strong>, if applicable, in separate environmental reports) against the disclosures of<br />
other firms. <strong>Environmental</strong> reports have been released by at least 70 firms from the<br />
United States, Canada, Europe, <strong>and</strong> Japan [4]; some companies even have Web sites that<br />
detail their environmental practices for anyone with access to a computer network<br />
service. These reports usually describe non-strategic measures such as Toxic Release<br />
Inventory (TRI) emissions <strong>and</strong> participation in voluntary regulatory programs (e.g.,<br />
EPA’s 33/50 program). In the future, disclosures with added strategic relevance might<br />
include such elements as the percentage of recycled materials included in products, the<br />
percentage of recycled components included in products, <strong>and</strong> product disassembly time.<br />
Compensation: If companies want managers to consider environmental issues, the<br />
companies need to incorporate appropriate incentives into management compensation. A<br />
number of firms surveyed by Deloitte & Touche (1995) include non-financial measures of<br />
division or company performance in the variable component of employee<br />
compensation—environmental performance could be one of the measures considered<br />
[11].<br />
Community Outreach: Some corporations periodically invite community leaders to plant<br />
sites as an educational activity to learn about ongoing environmental, health, <strong>and</strong> safety<br />
activities. These kinds of “community open houses” can go a long way in mitigating<br />
speculation about environmental conditions or hazards at an industrial site <strong>and</strong> can create<br />
informed advocates in the community. In addition, community advisory councils have<br />
also been used effectively to create community-based champions. These councils bring<br />
together a broad range of community interests in a setting that fosters communication <strong>and</strong><br />
underst<strong>and</strong>ing. While some electronics manufacturers have established such councils, the<br />
chemical industry provides the best example of successful council operation. Monsanto,<br />
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