Development of CERES Principles - Essay Example

Name Course Lecturer Date Environmental Reporting Indeed, Coalition for Environmentally Responsible Economies (CERES), an investor environmental alliance did sprang from Exxon Valdez disaster, that took occurred in 1989. This incident is said to have caused the worst environment disaster in history. It is obvious that time is a major factor in cases of such incidents. However, it is one that crippled Exxon severely. The company was expected to first solve the actual problem, that is, clean up the 10 million gallons of the spilled oil; secondly, the company was still expected to establish a positive perception of the way the problem is handled. In addressing the actual problem, the company claimed the first priority (Fraedrich and Ferrell p. 332). It took the officials more than 10 hours after the incident to get blooms to contain the oil spill. However, the company was accused for not acknowledging the extent of the problem. To worsen the situation the company officials refused to comment on the incident for a week. The biggest criticism directed to the company was due to the fact the CEO waited for almost six days to make a statement to the public and 21 days to visit the scene. With the above flow of event, one may safely assume that the company did not play its role in containing the accident (Hughes p. 1). It is obvious that the media is a significant tool in helping a company in time of crises. They indeed assist the company to disseminate information to the public at large. However, in the case of Exxon, it conducted it communication from a minute town of Valdez, Alaska. As well known at this time the town had inadequate communication facilities and minimal communication capabilities. The company was not willing to disseminate information using other location and different method. It is said it told reporters it is either Valdez or no information. In addition, the information given was inconsistent and had contradicting information. This led to the media to question the truthfulness and credibility of information or statements given by Exxon. In addition to insufficient communication and slow response, Exxon efforts to remedy the damage reputation did not work with the intended goals. At the beginning, the company blamed the federal and state officials for not containing the spill in time. When question on how they would raise funds to pay for the cleanup costs, the official responded by saying it would raise the gas costs to pay for the accidents. Inasmuch as the company apologized through the media, many people saw the approach as inadequate and insincere as the company refused to take full responsible of the incident. As a result of this incident, natural and human losses were immense to fisheries, tourism, subsistence livelihoods and wildlife. With the above understanding, people concerned with the environment found a need to prevent occurrence of such incidents. As such the CERES was founded. It was established with an intention of reducing harm to the earth, air and water and eliminates the use of toxic wastes while communicating to the public on potential safety hazards and the damage done to the environment. This environmental alliance utilize the power of share ownership to persuade firms or companies to follow a set of environmental principles and produced environmental reports that are standardized. Essentially, the organization aims at establishing principles that guide corporate decisions that have a major effect on the environment. This leads to the signatory companies commit themselves to work hard in maintaining positive environmental goals for instance, use of natural resources, environmental restoration and energy conservation; setting definitive objectives and goals and ways of measuring progress; continue to inform the public on the needs to conserve the environment through their annual reports. Basically, if this principle were in place before the Exxon Valdez accidents, maybe the accident could have been prevented. The company would have adhered to the principles that have been set to govern the organizations in relation to the environment. According to (Moffat and Lang p. 25) it is important to note that CERES adds value to the current business environment through its commitment in ensuring that companies have honored their pledge in protecting the environment through setting environment related policies. The organization has indeed promoted greater corporate responsibility towards the environment. In addition, it has taken a leadership role in the standardization of reports given by organizations. It has been able to promote the need of viewing environmental issue because of their influence over human behavior and decisions that surpasses that of schools, religious organizations and governments (Stead and Starik p. 95). CERES and Federal Sentencing Guidelines for Organization Both organizations have some common issues despite the fact that there are not related. Whereas CERES is concerned with environmental issues, Federal Sentencing Guidelines Organization is concerned with imposing penalties to organization whose agents or employees commit any federal crimes (Ethic Resource Center p. 12). While CERES encourages organizations to practice and maintain environmental issues positively, FSGO is concerned with providing guidelines to organizations to encourage them to develop and implement effective programs that are aimed at detecting and preventing violations of laws. Another differences between the two organizations is that while the CERES has 10 principles, FSGO has seven steps involved. The FSGO has guidelines that are created by the US Sentencing Commission while the CERES principles are set by interested organization members (ERC p. 1). Some common features include, firstly, in both organizations, the guidelines are created for organizations operating in the country. Secondly, both guidelines and principle have an interest in reducing issues that affect something. FSGO aims at reducing the prospect of criminal conduct in an organization though organizational implementation of compliance procedure and standards. CERES aims at reducing waste through recycling and source reduction as well as eliminate waste that may harm the air, earth, its habitants and water. Basically, reduce effect on the biosphere. Secondly, both organizations are committed to full use the right resources in their work. The CERES is committed to utilize renewable resources such as soils, forest and waters and continue to conserve the nonrenewable ones. In addition, it aims at conserving energy and improve the energy efficiency of the internal operations of services and goods sold by member organizations. FSGO on the other hand is committed at utilizing high level personnel in order to oversee that the standards are complied to accordingly. Thirdly, they are both using various appropriate ways to handle issues affecting their different operations. FSGO develops excellent responses to offenses through taking reasonable steps to act in response and mitigate further offenses that may be similar and including some modification programs. CERES on the other hand has established an evaluation exercise of the progress in their operations through environment audit procedures (Knell p. 18). Fourthly, both organizations are responsible of issues in organization in the United States. CERES is responsible in its goals of protecting the environment. As such, it is committed in correcting conditions that may pose or endanger environment, health and safety. In addition, they are ready to be responsible of any injuries that may occur to individuals or to the environment. Their responsibilities are also evident through the efforts of informing the public on environment issues. They are readily inform the everyone who may be affected by the incident brought about by a member company that might cause injury or death or even harm to the environment. Basically, they are ready to collect any mistake or conditions as a result of the companies’ operations that pose a danger to the environment or human beings. FSGO is also committed in ensuring that good conduct is observed in the organizations. They carry out their responsibility through enforcing standards using various mechanisms such as disciplinary measures. Finally, both have established auditing, reporting and monitoring systems. The FSGO has created a reporting system that has been publicized whereby the agents and employees may report any criminal conduct observed without fear of intimidation or retribution. On the other hand CERES has an annual self assessment of their progress in implementing the principles. The CERES is also committed to timely establishment of accepted environmental procedures on auditing. This report is also made public so that the people may know and evaluate the progress that the organization has made in it role to protect and promote effective methods that help to protect the environment. Global Reporting Initiative The organization has continued to enjoy success in its operations. The initial pilot programs has been successful. The promotion of Global Reporting Initiative sustainability report framework worldwide has continued to be boosted by the rise in the number of the GRI training partners, Focal Points and the organizational stakeholders. The Focal Points have been established in China, India, Brazil, United States and Australia. The number of training partners has increased. For instance, in 2008 to 2009 the number was at 16 to 38 in 2010-2011. The training partners are capable of training more reporters globally to utilize the GRI guideline. Due to the success of the training partners, the GRI guidelines are now being translated into different languages. At the moment the guidelines has 25 available languages. The organizational shareholder, on the other hand is supporting GRI in delivering guidance to the reporters. On its position of revising the thematic areas; human rights, community impact, materiality and gender and report content, GRI has established working groups which are balanced in order to reflect the diversity of constituencies, region and content expertise. The working group represents a total of 19 countries globally. This includes the Philippines, Brazil, India, Malawi and Kenya. The last quarter of 2010 saw the four Working Groups review the public feedback and create a final recommendation to the organization. In community impact, the project has been evaluating at how reporting on this significant part of sustainability performance may be reviewed. The public was subjected to questionnaires so as the Working Group would receive comments feedback that would guide the group to make the needed changes (Global Reporting Intiative p. 9). Recent changes in the human rights have led to novel perspectives on how business relates to human rights. The project has been able to build consensus on what comprises good practice and evaluation on reports on human rights. Under gender, the Working Group has initiated a project that aims at overcoming the current disadvantage of the GRI guidelines in terms of their relation to gender issues. Indeed, the group was able to make the necessary changes after collecting comment feedback from the public. It is obvious that choosing the right indicators and issues to report on is very significant and a fundamental decision during the preparation of an organization report. Therefore, the working Group was mandated to update the GRI guidelines so as to assist the organizations decide on the content they needed to use on their report. Through the comment feedback the organization received from the public, it was able to come up with appropriate changes. Since its establishment, GRI has continued to raise successful issue and operations. One of its key achievements is the launching of a resource document related to gender issues. The publication is available in various languages in order to cater for the different member countries. During the launch, there were various interactive sessions. These sessions enabled the participants to acquire knowledge on issues that are related to gender. This included sustainability issues facing various organizations globally. In addition to the launch of the publication, GRI has been able to do various research in areas related to its guidelines. For instance the publishing of Practitioner’s Guide was a result of thorough consultant and research process with various inputs from workshops held in various towns such as London, New Delhi, Washington DC, Sao Paulo and Johannesburg. Under this guide, limitations were highlighted of the current G guidelines in issues related to gender treatment (Knell p. 20). Another success is seen in the launch of Financial Service Supplement. The guidelines were also translated to various languages. Together with Electric Utilities, Financial Services represent the two largest groups involved in the corporate GRI reporters. The guidelines are mainly used by organizations that are operating in the mining and metal sectors. They are required to into account the rights of their employees who need to move to new locations and also their impact in the energy use and the earth natural resources. Indeed, the launch of mining and Metal Supplements at the Prospects and Developers Association convection has proven to be a successful guideline for companies operating in the mining and metal sectors. In addition, the Food Processing Supplement is also a success as companies in this sector are now accountable to their consumer b following the guidelines as indicated by GRI. More companies are being perceived to seek to communicate the social, environmental and economic impacts of their various businesses. Notably, there is also a growth in transparency whereby the NGO has taken over state run activities introducing public policy that are observed to be influencing. In addition to the above successes, more industries than before have started to be committed and therefore, promote the annual reports on sustainability by following the GRI Sector Supplements. This includes the International Non Governmental Organizations (INGO) Accountability charter, the International Council on Mining and Metal, and the Spanish Confederation of Saving Banks (CECA). It is important to note that this Food Processing Supplement was launched in Amsterdam during a global conference. Generally, it has been noted that the number of organizations giving reports is on the increase. The number of those giving sustainability information increases annually. This is a major boost to the GRI. Notably, the data GRI collects based on statistics ad GRI guidelines are clear indications of a wider trend in the reporting. With this understanding, one may argue that GRI guidelines are operating worldwide providing the needed guidelines in ensuring the appropriate standards are maintained in the organizations in the present world (Global Reporting Initiative 10) There is a need for the GRI Guidelines to continue to work together with various international bodies such as OECD in order to maintain their set goals. In addition, more developing countries should be encouraged to follow these guidelines so as to compete fairly with already developed countries. In addition, these countries will be in a position to gain positively through various international interaction sessions (Global Reporting Intiative p. 11). The GRI organization uses two formats in its report writing. The informal one is characterized by short, bound documents. They are usually letters, modes based on limited and specific topics. The GRI uses this format if the reports delivered are not lengthy and do not require additional documents that are associated with formal reports. In addition, they have attachments and visuals. Formal report format is accompanied by various components including transmittal letter, cover, title page, content, summary, body, numbering and appendices. This type of formatting is mainly used for official work and contains detailed information in the issue to be covered. Work cited; Center, Ethic Resource. National Bussiness Ethics Survey. Washington: ERC, 2003. ERC. "Federal policy." Federal Sentencing Guidelines 31 December 2005: 1. Fraedrich, John and Linda Ferrell. "The wreck of the Exxon Valdez." Business Ethical: Ethical Decision Making and Cases (2002): 331-339. Hughes, Jennifer. "Exxon's oil spill." MMC 3260 (2001): 1. Intiative, Global Rporting. Year in review 2009/10. Amstardem: GRI , 2011. Knell, Micheal. "Polaroid Endorses CERES principles." Boston Herald 20 August 1994: 18. Moffat, andrea and Heather Lang. The road to 2020: corporate progress on the CEREs roadmao for sustainability. Boston: Sustainlytics , 2011. Stead, Edward and Mark Starik. Sustainable; Strategic management. London: M.E. Sharpe, 2001. Read More