TQM and strategic environmental management

Beyond the avoided costs for noncompliance lies an area of economic opportunity. Strategic approaches are necessary to tap these opportunities, but only recently have the principles of Total Quality Management been considered for environmental applications. This article identifies common principles in strategic environmental planning and thematic bridges to TQM philosophies. By applying TQM to strategic environmental planning, an environmental manager can thus address both avoided cost and environmental opportunity to improve overall corporate strategic advantage.     

An integrated and pragmatic approach: Global plant safety management

The Bhopal disaster in India in 1984 has compelled manufacturing companies to review their operations in order to minimize their risk exposure. Much study has been done on the subject of risk assessment and in refining safety reviews of plant operations. However, little work has been done to address the broader needs of decision makers in the multinational environment. The corporate headquarters of multinational organizations are concerned with identifying vulnerable areas to assure that appropriate risk-minimization measures are in force or will be taken. But the task of screening global business units for safety prowess is complicated and time consuming. This article takes a step towards simplifying this process by presenting the decisional model developed by the authors. Beginning with an overview of key issues affecting global safety management, the focus shifts to the multinational vulnerability model developed by the authors, which reflects an integration of approaches. The article concludes with a discussion of areas for further research. While the global chemical industry and major incidents therein are used for illustration, the procedures and solutions suggested here are applicable to all manufacturing operations.     

Environmental management conflicts in developing countries: An analysis

An analysis of conflicts in environmental management has been made by identifying the major characteristics of conflicts. Examples of some environmental management conflicts have been presented to clarify the major issues involved It is shown that without active conservation groups it will be difficult to achieve environmental protection Two conflict resolution models are presented for analyzing various conflicting situations     

Environmental management: A system approach

This paper presents a system framework whose purpose is to improve understanding of environmental management. By analyzing the links between elements of the environmental management system, it is possible to construct a model that aids thinking systematically about the decision-making subsystem, and other subsystems, of the entire environmental management system.Through a multidisciplinary environmental approach, each of the individual subsystems is able to adapt to threats and opportunities. The fields of government, market economics, social responsibility and ecology, for example, are so complex that it is extremely difficult to develop a framework that gives full consideration to all aspects. This paper, through the application of a highly idealized system framework, attempts to show the general relationships that exist between complex system elements.     

An approach to optimise nutrient management in environmental sanitation systems despite limited data

The material flow analysis method can be used to assess the impact of environmental sanitation systems on resource consumption and environmental pollution. However, given the limited access to reliable data, application of this data-intensive method in developing countries may be difficult. This paper presents an approach allowing to develop material flow models despite limited data availability. Application of an iterative procedure is of key importance: model parameter values should first be assessed on the basis of a literature review and by eliciting expert judgement. If model outputs are not plausible, sensitive input parameters should be reassessed more accurately. Moreover, model parameters can be expressed as probability distributions and variable uncertainty estimated by using Monte Carlo simulation. The impact of environmental sanitation systems on the phosphorus load discharged into surface water in Hanoi, Vietnam, is simulated by applying the proposed approach.     

An ecological approach to environmental impact assessment

Carbon cycling analysis is presented as a means for assessing anthropogenic perturbations in an ecosystem. Data from oligotrophic, eutrophic, and dystrophic (bog) lakes are used to show general trends in the lacustrine carbon cycle. The oligotrophic lake is an unstressed system and the eutrophic lake is under nutrient enrichment with high algal standing crops and productivity. The bog lake is a pH-stressed environment that is primarily a grazing ecosystem. It is hoped that a more effective environmental impact assessment will result from the use of carbon cycling as a unifying concept in ecosystem analysis.     

An economic analysis of environmental protection and management: An example from the Philippines

Summary The island of Palawan covers some 12000 km² and is located in the southwest of the Philippines archipelago. It is a beautiful and as yet relatively unspoilt island but in recent years the social and economic pressures on its natural resources and environment have begun to mount. If present trends continue, severe environmental damage will result. In recognition of this danger, the Philippines government and the European Economic Community have commissioned the preparation of an Integrated Environmental Program (IEP) for the island, as part of an overall economic development program. Phase one of the IEP study comprised an assessment of the island's resources and present situation and the formulation of a plan for the future protection of its environment, taking due account of the need for continuing economic development.An analysis was made of the likely economic returns from the proposed environmental protection program, using conventional benefit-cost analysis methodology. Due to the inadequate data base and the wide-ranging assumptions which had to be made, this was inevitably very approximate in nature. It was carried out in terms of the three main types of conservation activity proposed, namely land-based conservation, mangrove conservation and inshore marine conservation, and the program as a whole. The main benefits and costs were identified and, where appropriate, quantified for inclusion in the analysis.Choice of discount rate and length of analysis period are critical factors affecting the economics of environmental protection, which essentially involves the pursuit of long-term rather than short-term gains, output in the immediate future being restricted to the level of long-term sustained yield for the benefit of future generations. Use of the high discount rates customarily applied for project analysis in countries such as the Philippines (typically, 10–15 percent) places a heavy premium on short-term gains and attributes little or no value to benefits and costs further in the future. To take account of this problem the present values of costs and benefits were calculated using low discount rates of zero and 5 percent. Though this was a necessarily crude and arbitrary method of adjustment it was considered to be a better alternative than that of following normal convention and applying the high rates of discount customarily used in the Philippines.The analysis indicated that the various conservation activities could be expected to produce acceptable, though not spectacular, levels of economic return. Mangrove conservation would be particularly beneficial and the irrigation benefits from preserving river base flows and preventing an increase in peak floods, by means of catchment protection, would be high. The unquantifiable ecological and social benefits would also be substantial.Christopher Finney is Chief Economist of Hunting Technical Services Limited, UK, a major consulting firm involved in planning and implementation of agricultural development overseas, and has been with the firm since 1962. He is an agricultural economist with particular interest and experience in the fields of irrigation, livestock, farm mechanisation, general agriculture and conservation. He has worked on a wide variety of projects in numerous countries in Africa, Asia and Latin America. Mr Stanley Western is a senior soil scientist and land use planner with the same company. Since joining the firm in 1960 he has undertaken a very wide range of resource assessment and planning assignments in Asia, Africa and Latin America. He was Team Leader on the Palawan Integrated Environmental Program planning study.     

Enhancing environmental integration in strategic environmental assessment (SEA): insight from sensitivity analysis

This paper explores the potential of sensitivity analysis to improve the Strategic Environmental Assessment (SEA) process and enhance environmental integration. It applies the Sensitivity Model Prof. Vester® to the England SEA process, following two objectives: (1) establishing how different strategic environmental assessment (SEA) elements affect environmental integration; and (2) establishing the sensitivity of the SEA process in terms of response to change. The findings showed that no single element was critical to enhancing environmental integration. Several elements, acting as sources of uncertainty, leverage or stability in the process, were also identified, highlighting their potential as priority targets for process improvement. It is concluded that sensitivity analysis can supplement current expert-led approaches to SEA improvement by (1) identifying elements likely to influence environmental integration and (2) testing the likely performance of recommendations for process improvement.     

Screening of environmental pressure from products in the Swedish railway infrastructure: Implications for strategic environmental management

This paper proposes a method to be used in environmental reviews as an initial tool for estimating upstream environmental pressures from material use in organisations dealing mostly with construction materials. Upstream environmental pressures are often omitted in environmental reviews from organisations and instead tend to be site specific, with a limited life-cycle perspective. This paper uses the Swedish National Rail Authority as a case to present the approach. An energy indicator is used to estimate the environmental pressure of material use.In the studied building project, a small set of products contribute to a major part of the material use and the material-related energy use. The energy use is almost exclusively of nonrenewable energy carriers. The three most important products are all homogenous and non-complex, which makes the energy indicator well suited for the analysis. The organisation can use the results to focus on the most important products and also to see which parts of the organisation contribute to the material-related energy use. Rail traffic in Sweden is almost exclusively from non-fossil-based energy carriers. This highlights the importance of the infrastructure to the overall environmental pressure of the railway. Consequently, if road transport were to shift away from fossil fuels, railways earlier environmental advantages would diminish, since research suggests that railway infrastructure is more energy intensive than road infrastructure.     

Landscape design,planning, and management: An approach to the analysis of vegetation

The process of analyzing vegetation in terms of its suitability for various non-consumptive uses is primitive in comparison with systems for evaluating other resources such as soil and topography. This paper proposes a framework for developing a standardized, quantitative vegetation analysis system based on plant ecology methods. A tentative scheme under study in Wisconsin is presented for discussion purposes.     

Environmental performance indicators for enhancing environmental management

Traditionally, environmental issues and concerns have been viewed as a constraint to businesses. This has resulted in environmental managers relying heavily on a reactive, compliance-based approach to justify change. Businesses are now recognizing that efficient management in the environmental arena can benefit the entire company and open new opportunities for increased profits. Managers have acknowledged that environmental issues can be integrated into daily business trends and activities. Not only does sound environmental management decrease liability, but also in current markets a “green” image can attract investors and customers. This article shows how one tool that progressive companies are focusing attention on—environmental performance indicators—is being used to convey the current status of environmental issues and improve the management of these issues for the benefit of the company as well as the environment.     

Running in nonconcentric circles: Why environmental management isn't being integrated into business management

To manage effectively, you have to communicate. But before you can communicate, you have to speak a common language. In the past, business managers and environmental professionals spoke in different jargons—and went their separate ways. Fortunately, that situation is now beginning to change. © 2000 John Wiley & Sons, Inc.     

Compensating aboriginal cultural losses: An alternative approach to assessing environmental damages

We first identify six primary problems with conventional practice: lack of context, inadequate participation from aboriginal communities, exclusion of important losses, reliance on market-based measures, neglect of uncertainty, and inadequate treatment of time. We then propose a different approach to compensation, based on insights from the decision sciences and structured decision making. Using case-study examples, we discuss how the proposed approach might address common sources of cultural loss and, in a concluding section, summarize some of the implications for compensation agreements and for environmental management practices.     

Managing uncertainties through scenario analysis in strategic environmental assessment

Planning for the future is uncertain, and scenario analysis is a method of coping with the uncertainties of future plans. This paper addresses how to deal with future uncertainties by using scenario analysis as a possible approach for conducting a strategic environmental assessment (SEA). Although scenario-based approaches have been linked to strategic planning and SEA, this paper for the first time proposes how a combined approach may be implemented using specific tools and methodologies and, further on, it also implements the first three stages of the six stages proposed for the ‘scenario-based strategic planning’ approach. This work is an attempt to standardize SEA and scenario analysis as a combined approach. The three stages are tested within the Tourism Development Plan of the Iranian province of Gilan, which has been selected as a case study.     

Environmental cost accounting: The bottom line for environmental quality management

Recent years have seen the environment emerge as one of the most pressing issues facing American business. Eventually, environmental costs will affect the bottom line of every American company. A recent study in the National Law Journal estimates that cleanup of the nation's known hazardous wastes sites will cost $752 billion over thirty years under current environmental policies. Environmental legislation and regulations impose annual compliance costs estimated by the Environmental Protection Agency at more than $30 billion. In the near future, environmental expenses for cleanup, regulatory compliance, and management are anticipated to grow to between 2.5 and 3 percent of GNP. Corporations that wish to be competitive must successfully manage these costs while maintaining or improving their role as responsible corporate citizens. Implementing a comprehensive system for identifying and managing environmental costs requires a multidisciplinary team effort. Environmental costs impact product selection, design and pricing, capital budgeting, and future strategic direction. In order to make informed and meaningful managerial decisions on environmental programs, real cost data are vital. An environmental management systems (EMS) requires information to set goals and then monitor progress towards those goals over time. This article will discuss the current cost accounting systems (CASs) available to support the myriad goals of environmental management systems. In addition, the article will outline a framework for plotting the location of your current EMS on a matrix of regulatory and information requirements and evaluating whether your corporation's CAS is adequate to support the goals and objectives set by your environmental management program. By anticipating future regulatory and information requirements, flexible systems can be developed to adapt to new and more stringent regulations and more complex information requirements.     

Environmental marketing's new relationship with corporate environmental management

Issues of environmental marketing track back to issues of environmental management—i.e., to issues of overall corporate environmental commitment and responsibility. It is absolutely essential that a commitment to corporate environmental improvement be in place before an environmental marketing program is launched. Additionally, marketers can and should play a central role in the greening of the corporation. The marketer brings at least two important skills or strengths to the environmental improvement process—strengths of perspective and strengths of skill set.