04.04.2013 Views

1996 Electronics Industry Environmental Roadmap - Civil and ...

1996 Electronics Industry Environmental Roadmap - Civil and ...

1996 Electronics Industry Environmental Roadmap - Civil and ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

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 />

25

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!