Using EH&S management systems to improve corporate profits

An environmental management system (EMS) approach can improve overall corporate performance and demonstrate this improvement to top management in “dollars and cents” language. This article illustrates the importance of a financial management approach to justify investments in environmental, health, and safety (EH&S) excellence. It also describes in detail the elements of the EH&S management assessment and improvement process.     

The electric utility business case for investigating EMS: ISO 14000 and beyond

This article will focus on how a systems approach can be used as a strategic tool for environmental improvement that makes sense from a perspective of bottom-line financial performance. The author will discuss some real-world experience concerning how electric utilities are attempting to align environmental management more closely with business management theory and practice. The ISO 14000 standards have been proposed and, in many instances, finalized as global voluntary standards. How important will they be to the U.S. electric utility sector? ISO 14001, the EMS standard, has been promoted as a necessary “certificate” for those who sell products and/or services overseas. In fact, to be of value to most organizations, the standard must show that it can make a positive financial contribution, whether the service or product is marketed globally, nationally, or locally. © 1998 John Wiley & Sons, Inc.     

Justifying the cost of EMIS: Piloting lessons from Rhone-Poulenc

Two worlds are colliding as many companies are integrating environmental management with business management. Nowhere is this more evident than in the hundreds of companies that are now working to upgrade their environmental management information systems (EMIS), which are a critical component of business integration. Building a business case for EMIS requires crossing many disciplinary boundaries—knowing the language of information systems, accounting, business management, and environmental management. Hence, it is a very valuable skill for environmental managers to develop in order to build their function and their own careers. Some environmental and information systems professionals are attempting to develop a general set of guidelines for justifying the cost of EMIS—in particular, the useful emerging work of the Environmental Health and Safety Software Development Group. This article relates the experience of an EMIS development effort at Rhone-Poulenc, Inc.     

ISO 14001 EMS implementation planning

In 1996, the International Standards Organization (ISO) completed work on an environmental management system (EMS) standard: ISO 14001. The standard involves only five required elements, spans less than five pages, and upon initial review, appears relatively uncomplicated. As well, many of the ISO 14001 requirements may already be present in an organization's existing EMS. Nevertheless, the new standard presents a number of challenges to industry implementation. Whether an organization aims to start from scratch in developing an EMS under ISO 14001 or modify its existing EMS to meet the ISO challenge, implementation requires careful planning and analysis. This article provides a summary of the planning required to implement ISO 14001 at the facility level, including the initial planning effort and the identification of significant environmental impacts, objectives, and targets. The aim will be to eliminate some of the “hype” associated with ISO and provide some practical “how to” guidance for implementing the standard. The discussion begins with an overview of the initial planning effort and then turns to key planning requirements.     

Forging new links between environmental management,information systems,and business processes

This article is excerpted from Chapter 1 of Environmental Management Information Systems, which will be published by McGraw-Hill in 1994. A central theme of the book is that all successful implementations of environmental management information systems (EMIS) are based on the appropriate alignment of goals and procedures from three enterprise domains: business processes, environmental management, and information systems. Environmental managers (EM) and information systems (IS) professionals have each been guilty of seeing their functions as primary, domains of specialized scientific expertise inaccessible to outsiders. In fact, however, the enterprise is the customer for both domains; without successful business strategies and systems the enterprise does not require either EM or IS wizards. This article shows why and how essential it is that each of the three domains understands enough of the other two domains to structure good decisions.     

ANSI X12: Data standards for TQEM

One key development in environmental software is the adoption of a common electronic language for exchanging EH&S data. The ANSIX12-based data management tools offer compatibility across platforms within the company as well as between different companies. The X12 syntax makes it easy for environmental managers to integrate functions more closely with either materials management or quality management systems.     

Demystifying the EMIS purchasing process and decisions: Look (and plan) before you leap

The proliferation of environmental, health, and safety regulations in recent years has increased the complexity and cost of regulatory compliance for companies. In response to the growing complexities of environmental management, many firms are turning to information systems for tracking, managing, and automating their environmental activities and information. An environmental management information system (EMIS), however, is not an end in itself. A successful EMIS supports and facilitates the integration of environmental management into business functions. Effective planning is essential for placing short-term information system development in the context of a long-range comprehensive environmental management strategy. This article presents specific pitfalls to avoid when purchasing environmental management software. Numerous companies have discovered that the true costs of EMIS implementation stem from the political and organizational costs of getting employees to use systems, particularly when they require alterations in existing work processes. The up-front purchase price often represents less than 50 percent of the total system implementation cost. Failure to adequately research and plan frequently results in costly training, high modification or user fees, incompatibilities with other applications, or vendor dependence. The article then discusses the range of options in the EMIS marketplace and offers many practical suggestions to approach and plan effective implementation of an EMIS.     

The business implications of implementing ISO 14000

The ISO 14000 standards for environmental management systems (EMS) are voluntary standards intended to aid companies that wish to improve their environmental performance. The standards owe their existence, at least in part, to three widely shared views: (1) that existing environmental management systems are either inadequate or ineffective; (2) that companies will want to improve environmental performance for economic or social reasons; and (3) that governments and stakeholders will require companies to exercise greater control of the impacts to the environment through new regulations. ISO 14000 offers a solution—an ?integrated”? EMS, with components designed to effect sound management in any size organization and in any country. The standards are an embodiment of both the policy and practice of environmental management. This article is a consideration of the business implications of the ISO 14000 series of standards. How will a movement toward an integrated EMS be realized? Who will be in the best position to respond? ISO 14000 is a management system, and it carries with it business consequences.     

Environmental management information systems: New tools for measuring performance

Successful implementation of environmental management information systems (EMIS) has become essential to the success of total quality environmental management (TQEM) programs. Effective TQEM programs will be early indicators of which companies survive and thrive in today's competitive business environment. Highly competitive industries such as chemicals, electronics, and oil and gas are becoming very effective in cooperating to develop metrics, models, and tools that are based on business processes rather than regulatory edicts. Now electric power companies, newly exposed to market competition, are starting to develop and implement these metrics, standards, and tools. That industry provides a model for joining TQEM and EMIS.     

Investor attitudes toward the value of corporate environmentalism: New survey findings

During the past several years, an increasing body of evidence and opinion has formed concerning the relationships between advancements in environmental, health, and safety (EH&S) management and the financial performance of the organization. In recent work,¹ we have described a new theoretical model linking improvements in environmental management systems and environmental performance to corporate risk, stock volatility, and market value, as well as an empirical evaluation that validated our model. A number of other studies² have documented changes in the market value of corporate equity as a function of environmental accidents, incidents, and (conversely) accomplishments. These are in addition to the numerous examples presented in the literature and at EH&S conferences and symposia that suggest that concerted efforts to reduce the organization's environmental “footprint” can yield cost savings, increased market share, reduced time to market, and perhaps other financial benefits. Some have gone so far as to proclaim that a new era has begun, in which environment-friendly corporations will increasingly be recognized and rewarded by financial market participants, and organizations that lag behind will be severely penalized.³ This article documents a new survey undertaken to identify important environmental factors, if any, investors employ in evaluating the quality and worth of equity and debt financing instruments.     

GEMI: Business helping business in the twenty‐first century

The Global Environmental Management Initiative (GEMI), one of the world's leaders in business‐oriented EH&S innovation, reflects on its first decade and scopes out goals for the new millennium. © 2000 John Wiley & Sons, Inc.     

EPA and business: Who is the customer,who is the supplier?

By focusing on regulated businesses as “customers,” the EPA is bringing a new way of thinking to the negotiating table that is producing creative, workable solutions. The author, who was instrumental in initiating the adoption of TQM in the Environmental Protection Agency, discusses how it can be used in negotiation to resolve impasses between EPA and business and meet the needs of both.     

SPURIOUS CYCLES IN WATER RESOURCES SYSTEMS1

This paper reviews analytical procedures for deducing from annual streamflow data information required for water resources systems planning. The procedure relies on two techniques to determine the extent that cycles exist in annual time series data. The first is to observe how the time series behaves around the mean annual flow. If it tends not to move across the mean frequently, it is concluded that a cyclical nature exists. The second technique is to observe the time path of accumulated departures from the mean annual flow. The validity of both techniques is questioned. The first because it uses mean flow as “normal” or the flow that the time series should fluctuate around. The second because the accumulated departure from the mean time series will be autocor-related even when the individual annual or seasonal flow observations are uncorrected. Alternative analytical techniques, which find no cycles, are presented.     

3M international environmental management system

To meet the changing needs of 3M's expanding worldwide operations, its International Environmental Operations group is striving to enhance and integrate a global environmental management system. When well-designed, such systems not only can function to guarantee compliance with environmental regulations but also serve to help the company reap the benefits of going “beyond compliance.” They can also prepare facilities to meet the requirements of international standards, such as ISO 14000 or EMAS. An Environmental Management System (EMS) is a necessary step toward achieving sustainable development and gaining competitive advantage in the global marketplace. The challenge of constructing such a system can seem daunting to a multinational company confronted with the spectrum of regional environmental regulations/directives and its own diversity of business and social cultures. This article describes the development and implementation of the 3M International Environmental Operations global EMS initiative.     

How to integrate information strategy planning with environmental management information systems—part I

Rational, cost-effective provision of mission-critical environmental management information remains elusive for almost all large enterprises. Even among the best performing companies—best performing from the perspectives of profitability, quality and/or environmental stewardship—environmental management information systems (EMIS) are usually comprised of dozens to hundreds of individual, isolated applications that require costly data capture, training, and maintenance. This article, the first of two, will discuss ways to coordinate information infrastructures with strategic goals and business processes.     

Evaluation of environmental management resources (ISO 14001) at civil engineering construction worksites: a case study of the community of Madrid

In recent years, significant advances have been made in business organization and management. The growing demands of clients as well as the globalization of world markets are among the many factors that have led to the establishment of systems of quality control and environmental management as a competitive strategy for businesses. When compared to other professional sectors, the construction sector has been slower to respond to environmental problems and to adopt Environmental Management Systems (EMS). In the world today the ISO 14001 standard is currently the main frame of reference used by construction companies to implement this type of management system. This article presents the results of a general study regarding the evaluation of the application of the ISO 14001 standard at civil engineering construction worksites in the Community of Madrid (Spain), specifically pertaining to requirement 4.4.1, Resources, roles, responsibilities, and authority. According to requirement 4.4.1, company executives should appoint people responsible for implementing the EMS and also specify their responsibilities and functions. The personnel designated for supervising environmental work should also have sufficient authority to establish and maintain the EMS. The results obtained were the following: - EMS supervisors did not generally possess adequate training and solid experience in construction work and in the environment. Furthermore, supervisors were usually forced to combine their environmental work with other tasks, which made their job even more difficult. - Generally speaking, supervisors were not given sufficient authority and autonomy because productivity at the construction site had priority over environmental management. This was due to the fact that the company management did not have a respectful attitude toward the environment, nor was the management actively involved in the establishment of the EMS. - Insufficient resources were allocated to the Environmental Management Unit. As a result, the application of EMSs in construction projects often appeared to be more of a formality, which was merely a way of maintaining the certification of the Environmental Management System. It was more a means of meeting the requirements for submitting a tender to contracting organisms rather than an indicator of any real commitment to improving the environmental performance of construction companies.     

Misunderstanding the “Nature” of Co-Management: A Geography of Regulatory Science and Indigenous Knowledges (IK)

Governments, NGOs, and natural scientists have increased research and policy-making collaborations with Indigenous peoples for governing natural resources, including official co-management regimes. However, there is continuing dissatisfaction with such collaborations, and calls for better communication and mutual learning to create more “adaptive” co-management regimes. This, however, requires that both Western and Indigenous knowledge systems be equal participants in the “co-production” of regulatory data. In this article, I examine the power dynamics of one co-management regulatory regime, conducting a multi-sited ethnography of the practices of researching and managing one transnational migratory species, greater white-fronted geese (Anser albifrons frontalis), who nest where Koyukon Athabascans in Alaska, USA, practice subsistence. Analyzing the ethnographic data through the literatures of critical geography, science studies and Indigenous Studies, I describe how the practice of researching for co-management can produce conflict. “Scaling” the data for the co-management regime can marginalize Indigenous understandings of human–environment relations. While Enlightenment-based practices in wildlife biology avoid “anthropomorphism,” Indigenous Studies describes identities that operate through non-modern, deeply imbricated human–nonhuman identities that do not separate “nature” and “society” in making knowledge. Thus, misunderstanding the “nature” of their collaborations causes biologists and managers to measure and research the system in ways that erase how subsistence-based Indigenous groups already “manage” wildlife: by living through their ethical commitments to their fellow beings. At the end of the article, I discuss how managers might learn from these ontological and epistemological differences to better “co-produce” data for co-management.     

Using groupware to improve the EH&S audit documentation and reporting process

According to Fortune, as of early 1995, some 4,000 companies have purchased Lotus Notes®, the premier entry in an emerging field of software known as groupware. For many companies making the commitment, installation of the software has meant significant capital expenditures as wide area and local area networks and client-server hardware had to be installed to make effective use of Notes' capabilities nationwide and worldwide. A few companies are in the early stages of developing environmental, health, and safety management capabilities. At first blush, the EH&S audit document management process appears to be an ideal application for groupware. It is vitally important that audit tracking systems are put in place and operate effectively. This article shows how groupware can help to achieve this objective.     

Reasons for implementing ISO 14001 in Malaysia

Environmental management systems (EMS) have been introduced globally to reduce environmental degradation issues brought about by industrial development. The research discussed in this paper is aimed at identifying the benefits and motivations of the implementation of EMS in compliance with the International Organization for Standardization (ISO) 14001 standard in Malaysian industries by using the pairwise comparison method. Experts in EMS from the Scientific and Industrial Research Institute of Malaysia were invited to participate in the research panel. Based on the experts’ input, data analysis was carried out by using multi‐criteria pairwise comparisons. The findings showed the ranked benefits and motivations of the implementation of the ISO 14001 standard for businesses. The results can indicate to policy‐makers and business advisors how businesses can be encouraged to implement the ISO 14001.     

Making sense of public values: Environmental controversies for corporate decision makers

Every year I try to choose the “word of the year”—that is, the word that will be the most topical and overused in the news, politics, and business. Past “words of the year” were leadership, excellence, quality, and so on. This year's, without a doubt, must be values. Just listen to any political speech and you'll be sure to hear it! Magazine article after magazine article makes reference to values—family values, social values, public values, personal values, etc. Business is beginning to experience first-hand the power of this word and the controversy it engenders, especially in the area of environmental issues. Corporations already heavily scrutinized by the public on operational issues like facility expansion, pollution, emissions, product acceptance, etc., are struggling to assess how best to manage competing public values. What do we do when the public has one value and business has another? Or, how can choices be made between two operating needs that compete for the same budget? It is the dilemma posed by values in conflict that this article explores. Once the domain of scholars and philosophers, this timely topic is now demanding the consideration and awareness of everyone in the business world.