Communication in Progress Submission - Dow Chemicals Company - Case Study Example

Communications in Business Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission Communications in Business Dow Chemicals (Australia) Limited, Postal Address, Altona, Victoria 3018, Australia. 18th April 2012. United Nations Global Compact, Australian Local Network, Postal Address, Australia. RE: Communication in Progress Submission At Dow Chemicals Company, we have a firm belief that the generation of new ways to solve the challenges confronting the global population today can be solved through effective connection of chemistry and innovation. As a result of the growth of our consumer base worldwide, we at Dow chemicals Company have narrowed our focus to four megatrends, which reveals our strategies which are driven by the market. These megatrends include energy, consumer and lifestyle, transportation and infrastructure and lastly Agriculture (Dow Chemicals Website, 2012). It is worth noting that all the aforementioned megatrends have a direct relationship to the environment which prompts this submission on principles 7 and 9 of the UN global compact in which out esteemed company is a signatory. Against this background, the local area network, Australia made a unanimous decision to choose different issues each year and environment was the 2012 topic. This would provide a systematic framework aimed at fully supporting all the ten principles of the UN global compact (Global compact local network report 2011, 2011, 40). It is imperative to highlight these fundamental principles that continue to shape our commitment towards environmental awareness and conservation. These are ‘business should support a precautionary approach to environmental challenges’ and ‘encouraging the development and diffusion of environmentally friendly technologies’ as underscored in UN global compact principles’ 7 and 9 (Global Compact Network, Australia, 2012). At Dow chemicals Company, we have continuously been committed to enhanced environmental conservation and mitigation of environmental hazards which is captured in the 2015 sustainability goal of Local Protection of the Human Health and the Environment under the policy of Public Security and Safety (The Dow Sustainability Report, 2009, 18). We have continued to undertake extensive efforts aimed at the attainment of this goal. In 2006, we set 10-year goals geared towards challenging ourselves by making monumental strides into becoming more intentional and external about doing good for the planet (under the 4th core strategic theme of Protecting our Planet). In the Local Protection of Health and the Environment goal, we are pursuing 10 metrics in the efforts to enhance our performance. A delivery of 61% improvement in the Loss of Primary Containment (LOPC) metric above the initial target of 57% reduction evidences our commitment to this course. Kindly visit our ongoing quarterly 2015 Goal Update report to view the most recent status (The Dow Sustainability Report, 2009, 41) Towards increased environmental sustainability, we are cognizant of the need to elevate the EN2 percentage of the materials which are used which are categorized under recycled input materials. This is against the background that in 2009, our company announced the goal to implement 300 pounds of by product synergy 2005-2015. By the end of 2009, we had already identified and deployed a tremendous 244 million pounds of usable materials, an effort which brought us to 77% of the 2015 dedication (The Dow Sustainability Report, 2009, 45). This marks an integral achievement towards the realization of principle 9. In regard to emissions, effluents and waste, we have managed to reduce the greenhouse gas emissions by more than 20% since 1990, which evidences a more prompt minimization than required by the Kyoto Protocol targets. In this regard, the convergence of principles 7 and 9 have seen us make some milestone accomplishments which includes the minimization of solid waste by 1.6 billion pounds, waste water by 183 pounds and energy intensity by more than 22% (Global Reporting Initiative report, 2007, 71). Other companies in similar line of practice have also made efforts to achieve these environment related principles. For instance, Duke Energy managed to recycle more than 24,000 tons of materials, approximately 63% of the overall waste stream in 2010 (Duke Energy Sustainability Report 2010/2011, 2011, 12). This has been a similar trend at Mitsubishi Chemicals Holdings Corporation whereby MCHC are working towards the realization of their established target of reducing the overall impact of the environmental load caused by release of chemicals into the air, hydrosphere and elsewhere in Japan by 30% from 2005 levels in 2015 (Kaiteki report, 2011, 80). In addition, Infosys Technologies Limited has instigated a partnership with the British Council in making short films on environmental issues and proceeded to avail them for utility as part of the curriculum in their Global Education Center in Mysore (Infosys Sustainability Report 2010/2011, 2011, 28). All these efforts have resulted in a comprehensive synergy of both principles 7 and 9. There are several strategic approaches that our company have taken aimed at ensuring that there is compliance to principles 7 and 9 of the global compact. Some of these approaches can be put into utility in other companies to enhance the level of compliance to both principles. One of the major approaches that we have undertaken is establishing an independent department to deal with the issues of climate change and alternative energy in our company where Rich wells was named the vice president of this imperative group in January 2007. The vice president is mandated with the role of generation , management and purchasing of our company’s energy requirements. This approach has been key in seeking alternative energy sources which have limited impact on the environment. Another approach undertaken by our company is increased advocacy on environmental issues both inside and outside the firm. This role is the responsibility of Rich Well’s group mentioned above. The approach has played an integral role in elevating the levels of awareness in regard to the environment which is fundamental in the realization of both principles. Similar approaches have also been undertaken by other diverse companies in our field of operation, for instance, Some of the Duke energy divisions have resulted to the utility of direct current (DC) in their data centers as opposed to alternative current (AC) which is endowed with high energy consumption. This has reduced the overall energy consumption in the data centers by 10-20% which reduces the bulk energy requirements whose voluminous gaseous emissions increases the negative trend towards global warming. Similarly, Mitsubishi Chemical Holdings (MCHC) has ensured the incorporation of safety assurance and environmental conservation in all its corporate activities which are highly prioritized. This has been enhanced through attaching this awareness to every activity being undertaken by each employee, and has proceeded to develop mechanisms to accomplish this goal. This approach is replicable in other companies which will be key in ensuring compliance to the achievement of principles 7 and 9. In regard to principle 7 (business should support a precautionary approach to environmental challenges), positive lesson can be learnt from the approach by Mitsubishi Chemical Holdings (MCHC) which entails the prioritization of environmental conservation and safety assurance through trickling these fundamental in all of its activities and to all employees mandated with these tasks. The lesson is that an all-inclusive precautionary approach to environmental challenges is paramount to the realization of the desired objectives. This entails the inclusion of all employees and stakeholders in solving environmental issues. Nonetheless, a negative lesson is learnt from the approach by Duke Energy in relation to principle 9 (encouraging the development and diffusion of environmentally friendly technologies). This is wherebysome of the technological interventions aimed at addressing not only the high cost of energy in firms but also the overall impacts on the environment can be quite costly and expensive which prompts a doubt of whether small firms with this endeavor will be capable of achieving this principle. There are some major lessons that we at Dow Chemicals Company have continued to learn from these endeavors, both in our firm and in other organizations in similar line of operation. Firstly, the achievement of a conducive environment can only be achieved through a holistic approach to environmental sustainability. This necessitates the inclusion of all the departments in the company in the efforts to formulate and implement different goals and objectives geared towards environmental sustainability. Secondly, we have learnt that extreme collaboration at different levels between different companies either in similar or opposite lines of operation is fundamental if the set goals are to be achieved. Finally, we have gained cognition of the fact that the organizational leadership in a company plays a central role in ensuring that the set standards are adhered to while at the same time promoting employees goodwill and commitment. Nonetheless, these efforts have not been without challenges which have generated diverse corollaries and made us learn some negative lessons, for instance, according to The Dow Sustainability Report (2009, 43), we cited that as a result of two years of lower demand and subsequent inefficiency in operations, there was heightened GHG intensity in 2009 which was one percent above the levels in 2005. This reveals that despite the favorable and ambitious goals that we can set, they are sometimes impeded by future uncertainties At Dow Chemicals Company, we have developed diverse business practice recommendations which will be key in improving the levels of compliance with principles 7 and 9. Firstly, mechanisms ought to be put in place to facilitate the sharing of skills and knowledge between the different stakeholders. This will culminate in heightened knowledge and skills capital, mostly among companies which have deficiencies in this area. This can be attained through the creation of a common resource database on highlighting recent developments, discoveries, innovations and experiences by different companies. This will be principle in not only enhancing compliance but also encouraging the development and diffusion of environmentally friendly technologies (principle 9). Secondly, all the signatories should agree and develop a financial pool which will play two primary roles. This pool will come in handy in helping the companies with weak economic capacity to continue with their efforts to achieve the aforementioned principles. In addition, this pool will be integral in giving incentives to companies registering high margins of compliance with the environmental principles as entrenched in the UN global compact. Both of the above contributions of the common financial pool will be key in encouraging businesses to support a precautionary approach to environmental challenges (principle 7). Thirdly, workshops and conferences on environmental issues ought to be organized on regular basis. This effort will not only be useful in enhancing the sharing of ideas among the stakeholders but also in enhancing the briefing on the current and dynamic trends in the environmental sustainability realm. However, this will require massive goodwill among the members in financing these functions as well as releasing their personnel to attend them. Lastly, the members ought to engage in unified problem identification. This is based on the background that different companies in different parts of the globe experience unique and peculiar environmental challenges, for instance, drought and famine, tsunamis among other risks. When the stakeholders engage in collective problem identification, this will ensure accuracy in projections about future dynamics which will reduce the amount of uncertainties that hinder the effective implementation of the set goals and objectives. There are several benefits, challenges and implications of the implementation of the above recommendations to different stakeholders. This are analyzed as follows. The Companies will be the key beneficiaries of the successful implementation of these recommendations in the sense that they will enhance the growth of the skills and knowledge capital in the respective companies. Moreover, they will elevate the level of exposure to contemporary environmental issues by the personnel in these companies. However, the key challenge to the successful implementation of these recommendations at the company is that some companies continue to be confronted by financial inadequacy which can limit their involvement in these efforts. This will mean that they will fail to benefit from the various merits associated with these forums. The governments of different countries around the world will benefit in the sense that the increased awareness on environmental issues by their populations. However, there is a challenge that different governments may intentionally opt to cooperate in these efforts, for instance in hosting the environmental conferences and financing them. In case many governments choose not to cooperate, this can have detrimental impacts not only in the successful implementation of the above recommendations but also hit a diabolical blow to the entire global compact. Lastly, the United Nations which is the primary convener and facilitator of this compact will benefit from the successful implementation of these recommendations. Some of its sub-sections like UNEP will attain much from these environmental conservation efforts. The challenge facing this organization is to promote and ensure goodwill from all the signatories, failure of which will culminate in limited commitment and possible collapse of the compact. We continue to pledge our commitment towards the achievement of the 7th and 9th principles as embedded in the UN global compact. Dow Chemicals Limited (18th April 2012). Sign………………………………………. References Dow Chemicals Company. 2009. The Dow Sustainability Report. Midland, Michigan: Dow Chemicals Company. Dow Chemicals Website. 2012. http://www.dow.com/. (Accessed April 18, 2012). Duke Energy Sustainability Report 2010/2011. 2011. Delivering Today; Investing for our Future. Charlotte: Duke Energy Company. Global compact local network report 2011. 2011. United Nations Global Compact Local Network Report 2011. New York: United Nations Global Compact Office. Global Compact Network, Australia. 2012.http://www.unglobalcompact.org.au/principle-areas/environment. (Accessed April 18, 2012). Global Reporting Initiative report. 2007. Midland, Michigan: Dow Chemicals Company. Infosys Technologies Limited. 2011. Infosys Sustainability Report 2010/2011. Bengaluru, India. Infosys Technologies Limited. Kaiteki report. 2011. Good Chemistry for Tomorrow. Tokyo: Mitsubishi Chemicals Holdings Corporation. Read More