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 warming Static, 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 acceptance Uses
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 minded Increases
attention to environmental maters
Creates positive interaction with community
Created change with suppliers, distributors |
Only Chemical companies Not 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 practice started 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 policies Does 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 groups Ask 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 principle developed protocol to drop companies who have not publish report or pay
dues |
42 large companies had this referendum raised attains
‘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
environment Requires 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 picture US 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 suppliers Define 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 understood Requires top down approach
Concisely articulate what a firm must do to reorient their activities |
Business practice have changed as a result of this process companies
have endorsed system
principles encompass much of what environmentalist are concerned with |
Lack of requiring, consistency. Difficulty in
maintaining direction |
