Code of Practices: Characteristics, Positives and Negatives From Nash and Erhenfeld, MIT 1977
Code of Practice
Attributes
Motivators
Benefits w.r.t. sustainability
Limitations w.r.t. sustainability
Regulation
Designed to achieve problems of the 70’2 polluted rivers, smog-filled skies, illegal and hazardous waste sites
Strong enforcement via fines or jail to owners
Quickly responded to major pollution problems
Has failed in preventing acid train, toxic contamination, stratospheric ozone depletion, loss of biodiversity and global warmingStatic, public and industry negotiation and difficult to chance once established
Lacks innovation and incentives for going better than minimum. First response is legal challenge
focus attention on resisting change
Costs is 150 billion $ 2% of GNP
Responsible Care
Nepal disaster instrumental in acceptanceUses verification of management system with four volunteers
2 from industry,
1 from local,
1 from environmental group
Required for membership into trade association
Gives clout to managers who are environmentally mindedIncreases attention to environmental maters
Creates positive interaction with community
Created change with suppliers, distributors
Only Chemical companiesNot been that effective at community involvement with diverse interest points
has not lead to strong changes in product design or training
Asks for changes in action but does not change values
ICC’s business Charter for Sustainable Development
Premised on strong economic growth is the way to make changes in practicestarted in 1991
Established GEMI to present a forum for pool knowledge and environmental strategies
Developed a self audit to help firms understand where they are
Endorsed by more firms other any other code
Identifies important aspects of sustainable business behavior
Members are not required to adapt policiesDoes not require reporting
Not possible to measure changes as mechanisms to measure and report on improvement are not part of code
CERES Principles
Formed by social responsible investors, environmental advocate, union, religions groupsAsk for firms to disclose information about companies impacts
Uses the Valdez Principles
(based from the Sullivan principles used in South Africa)
Securities law allows for owners of 1000 shares or more to make this a referendum therefore offers referendum by stakeholders to “endorse” these principledeveloped protocol to drop companies who have not publish report or pay dues
42 large companies had this referendum raisedattains ‘pubic accountability with it s report
Board of directors work with CERES to develop environmental consciousness at high levels. Each applicant is reviews by board concerning policies, energy use, health and safety, environmental accounting
Emphasis stakeholder interaction
Few companies signed on (less than 20)Process of endorsing principles takes years of negotiations
Has not seen serious changes in the operation of a business
ISO 14001
Purpose was to harmonize the independent development of EMS standard in Britain, Eco labeling standards of Japan and Canada, and avoid trade barriers to countries claiming only “BS7750 need apply”Developed with a broad sector of interest, including industry, governments, citizens and (in Europe) environmental advocacy groups
(US position was to weaken that, making it more procedural. flexible and therefor maintain management prerogatives and secrecy.)
Built to make a level playing field
Based on the success of ISO 9000
Compliance is done through third party certification (consciousness)
Intended to be proactive, insure continuous improvement of environmentRequires a commitment to prevention of pollution (however water down by the inclusion of end of pipe)
Does not seriously sequester the opinions of interested parties, thus does not get the entire pictureUS firms not motivated to join, despite success of ISO 9000
does not go far enough to change consciousness of people in the firm
EMAS
Basic EMS plus requires non regulated improvements in raw material usage, and performance of suppliersDefine performance levels for BATNEEC.
Requires firms to publish annual environmental effects register
3rd party verifier (consciousness)
Has tools built in to motivate firm to go over and beyond compliance with regulation
Not a market factor in the USA
The Natural Step
Dissemination of easily understood, scientifically based principles that lead a company toward sustainable society
Easily understoodRequires top down approach
Concisely articulate what a firm must do to reorient their activities
Business practice have changed as a result of this processcompanies have endorsed system
principles encompass much of what environmentalist are concerned with
Lack of requiring, consistency.Difficulty in maintaining direction
ISO 14001 And Where The Natural Step Principles Can Be Applied
4.1 General requirements
EMS consists of the following elements:
4.2 Environmental policy
Gaining the commitment and backing of senior managers throughout the business
Drawing up a policy that states your commitment to compliance with legal and regulatory demands, continual improvement, the prevention of pollution and other requirements which the organization subscribes to.
Establish a framework to set and review objectives and targets
Making the policy available to the public
TNS:
Establish a Commitment to sustainability
Establish TNS as the framework to set and review objectives and targets
4.3 Planning
4.3.1 Identifying the elements of your business that impact on the environment
4.3.2 Establishing access to relevant environmental legislation and regulations and other requirements4.3.3 Producing objectives and targets for environmental improvement
4.3.4 Establishing management program(s) to achieve them (including opportunities for new products or services
TNS:
4.3.1 Use TNS to help determine the significance of impacts to the environment4.3.2 Identify TNS as other requirements to which the organization subscribes4.3.3 Use TNS in establishing environmental objectives
4.4.4 Use TNS is used in development of new products or services
4.4 Implementation and Operation
4.4.1 Providing resources for personnel
Defining who does what
Reporting on the syste
4.4.2 Identifying training needs and raising awareness of environmental issues
Ensuring competence of staff
4.4.3 Communicating effectively internally and externally including the importance of conformance and potential consequences 4.4.4 Establish an EMS documentation system4.4.5 Controlling your management system 4.4.6 Controlling operations that may have an environmental impact
4.4.7 Planning for accidents and emergencies with an environmental impact
TNS
4.4.1 Use TNS indicators in the reporting4.4.2 Raising awareness with TNS principles4.4.3 TNS helps to identify importance of conformance and potential consequences
4.4.7 TNS helps emergency planning be aware of consequences
4.5 Checking and corrective action
4.5.1 Measuring accurately Continually ensuring that progress against targets is on track
Continually ensuring legislative compliance
4.5.2 Taking action to correct areas that don’t comply 4.5.3 Recording information on the operation of the environmental management system
4.5.4 Conducting audits
TNS
4.5.1 TNS can be used to establish performance indicators to measure4.5.2 TNS training helps to take corrective and preventative actions seriously4.5.3 Record TNS training shows objective evidence
4.5.4 Audit also for TNS training and use in impact and aspects, new product development, etc.
4.6 Management review
Senior managers checking that the system is adequate, appropriate and effective, and making any necessary changes
TNSComparison of Environmental Performance with TNS principles will identify potential needs to change and ensure that the system is suitable, adequate and effective.