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Corporate environmental management (Business Subject) - Assignment Example

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Part A Xerox Case Study How did Xerox reach this objective? Xerox leadership committed to creating an environmentally sound company. Traditionally, in business, pollution was a free option for waste disposal. Dumping contaminants into a stream or belching smoke into the atmosphere was considered costless to the company, an economic “free rider problem”…
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Corporate environmental management (Business Subject)
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"Corporate environmental management (Business Subject)"

Download file to see previous pages Xerox was fortunate to have many of these business ethics in place in the European operations already, and leadership with the vision to capture the competitive advantage that good environmental stewardship might provide. Besides, it was the right thing to do. Because Xerox had earned a large share of the copier market, the Federal Trade Commission required Xerox to abandon its patent to allow more competition. Xerox lost market share and was forced to reorganize to liven the company. Nine divisions were created which largely acted as separate companies. But each specialized company became closer to their customers and could respond to the market more quickly. Through the years, Xerox became more involved in local environmental issues and supportive of environmental health for their communities. From the total quality management (TQM) program established in the early 1980s, Xerox moved to a TQM for environmental issues. Now, the employees would be involved in stewardship of the system. Five programs were initiated: cartridge recycling; supplies; asset management; waste reduction and recycling; and employee involvement. The big idea involved minimizing the environmental impacts of the supply chain through the life cycle of the products. This implementation required each machine, part or shipping material to have a secondary purpose or a recycling design use. The company adapted the Environmental Protection Administration program to reuse, repair/reprocess recycle or dispose of properly, in that order. Asset Recycle Management (ARM) policies were adopted to organize the effort to reuse and recycle. Machines were handled in house while cartridges and parts were remanufactured by suppliers. The next evolution of the process was Design-For-Environment (DFE) which involved engineering each component with the lifecycle in mind. Each component’s raw materials and design would involve the choice of recyclable materials or reusable parts. The stated goal was 0% waste in the manufacturing processes for any new product by 1997. Obviously, a very lofty goal even today. The measurement of this goal involved a minimum 90% reduction in waste. The evolution of this business ethic required only 30 years. Xerox accepted a leadership role in environmental stewardship. Is this an appropriate goal? Xerox followed proper management techniques to reduce regulatory impacts and market its leadership of environmental citizenship. Considering the increased demand for government intervention in environmental stewardship regulations and the personal tragedy of contaminating their neighbor’s groundwater, Xerox acted responsibly to take a leadership role and mitigate any potential damages. Then, one step further, tried to eliminate future risks. Looking at environmental stewardship as a risk management tool, simple compliance, due diligence and integrated risk management are the options offered to corporate management. Simple compliance implies a change in process each time a new level of compliance is mandated. Due diligence implies staying one step ahead of new compliance levels. Risk management suggests retooling operations to eliminate as much environmental risk as possible to reduce the regulatory risk. Risk management is a sound business strategy; environmental stewardship is a sound ethic which can be exploited in marketing. Where on the matrix of strategies does Xerox belong? ...Download file to see next pagesRead More
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