The Performance of Voluntary Environmental Management Initiatives - Essay Example

Order 116421 Against what criteria can we evaluate the performance of voluntary environmental management initiatives Use these criteria to evaluate the performance of ISO14. Voluntary environmental management initiatives -- VEMI are not the same as those environmental management systems -- EMS that companies or facilities establish with the objective of obtaining a certification like ISO 14000. Hence the criteria we use to evaluate the former should necessarily be somewhat different from those we use for the latter. Nevertheless, since the outcomes in both the cases are likely to be similar, some of these criteria will be the same for both. To start with, one of the ways we can differentiate between VEMI and EMS will be whether the company considers this a cost or an investment. This defines the basic approach the company takes in implementing the system. If the focus is on compliance, then the benefits that the company will expect are reduction in their liabilities. (A Strategic Approach to ISO 14001) This is an EMS and the company is likely to consider it a cost. On the other hand, if the company's objective is to improve their products, design and processes, with the attendant benefits of pollution reduction, but more importantly customer satisfaction, then it could be a VEMI and the company would consider this an investment. The company, in this case, will not be worried about the certification per se, but about the satisfaction of the stakeholders. This does not, of course, mean that the certification is not necessary or is useless, but the company in question is pursuing real results in terms of pollution reduction and improvement in the processes and products, leading to customer and stakeholder satisfaction. (A Strategic Approach to ISO 14001) To answer the question - 'Why are VEMI's important' - The first thing that we need to understand is that it is more realistic than an ISO 14000-oriented EMS. To elaborate, there can be no uniformity in the framework to be used to implement EMS systems - this will differ from company to company, industry to industry. For instance, a retailer may focus on how environment friendly the suppliers are; while a chemical company may focus on how to develop products that cause less harm to the environment and how to recycle the waste products. Even the expectations in the ISO context - that the company has a commitment to ensure compliance, that it seeks to improve its systems on a continuous basis and that it aims to control pollution - cannot be evaluated in the same way for different facilities. (A Strategic Approach to ISO 14001) To take the example of the first expectation - commitment to compliance - different nations have varying levels, strictness and coverage in their environmental regulations. Since ISO 14000 stipulates compliance with regard to the location of the company seeking certification, it may be that a company located in a country where there are less number of laws, will be able to show compliance sooner and with much greater ease. (A Strategic Approach to ISO 14001) The chance of companies getting the certification by adhering to certain minimum regulation requirements is also high. Hence, for real environment management in letter and spirit, it may be necessary to motivate companies to take up VEMI, where they are genuinely interested in environmental improvement. VEMI will therefore be the instrument through which real environment management systems with responsible environment friendly actions take place. Voluntary initiatives or programmes are of three types, according to Lyon and Maxwell. They can be unilateral commitments in which case business organisations voluntarily set up environmental initiatives or programmes. The organisation and not the government take the initiatives in this kind of programme. They can also be public voluntary programmes, where more than one firms agree to adapt the standards established by a public body, like an environmental agency. They can also be negotiated agreements where the government industry come to an agreement regarding standards to be followed, usually also laying down clear targets and deadlines for achieving them. Lyon and Maxwell further aver that public voluntary programmes are more common in Europe than in the USA and have been increasing in number. In the case of the third type of initiative also, the authors are of the opinion that cooperation between business and government tend to be characteristic of European nations, while in the USA, the two agencies are much more likely to be in conflict. (Voluntary Approaches to Environmental Regulation) Let us now look at the criteria that can be used to evaluate an EMS that aims to achieve ISO certification. Capaccio Environmental Engineering, Inc. has listed some of the commonly used measures to evaluate environmental performance. These are: efficient use of resources for production, waste reduction, effective handling of audit findings, greater awareness in the organisation about EMS, timely submission of reports and applications for permits. (Environmental Performance: Getting the Most Out of Your EMS) Capaccio also emphasises the importance of management commitment to the success of EMS and the need for tangible improvements that are more important than the registration itself. Capaccio again, while discussing the setting of objectives and targets, highlights the importance of involving the employees in the EMS to ensure its long-term success. According to the argument put forth, employees need to feel that they are contributing to the EMS in a significant way. This acts as a morale booster as well as provides a sense of belonging and pride to the employees. (Establishing Targets and Objectives) This is an important aspect of any EMS - people should be involved in the EMS; it should not be handled by only the environment department. Projects that engage the employees at large should be initiated for this purpose - for example, recycling and community projects like cleaning up the town / city. Meanwhile, ISO 14000 does not stipulate the method to be used for environmental management or the evaluation standards. ISO 14031 is a tool that was later developed to enable organisations to evaluate their environment performance. In fact, this tool can be used even in a non-ISO context by organisations; that is, by VEMI's too. It provides guidance in designing and using environmental performance evaluation tools for all kinds of organisations, irrespective of their size, location or industry. (ISO 14000 Information Centre, Environmental Performance Evaluation) Spivac and Brenner too mention that ISO 14031 contains a generic methodology for environment performance evaluation. (Spivac; Brenner, 2001, p. 103) Environmental indicators fall into three groups, viz. operational performance indicators which include the influence of the environment of the organisational functions, management performance indicators which include the organisation's ability to deal with issues affecting environment and environmental condition indicators which is inclusive of the status of the environment around. In this context, Dr. Markovic also discusses the tools and parameters for eco-efficiency, some of which are eco design, outsourcing, clean production, environmental labelling, life cycle assessment, EMS, environmental audit, etc. (Reading 4: Environmental Performance Indicators) The US Environment Protection Agency, in its 'National Environmental Performance Track', mentions some benefits of EMS, which also are parameters for measuring their performance. These are reduced risk due to hazards, cost savings on the legal and insurance fronts, improvements in product and process and enhanced profits due this, better relations with the community and better employee satisfaction. (Environmental Management Systems) Added to all these is the emphasis on documentation and procedures that characterise ISO certification. Even though the documentation can be designed to suit the organisation and its concerns, this aspect is very important and procedural compliance plays a major role in the certification process. When we consider the different criteria and parameters used for evaluating an EMS that is aimed at 'ISO 14000' certification, the process has many advantages and disadvantages. The focus of an organisation can be skewed to highlight the certification itself rather than real environmental impact and ways of reducing it. In some cases, it is also possible that a voluntary EMS could have a better and clearer focus while the certification requirement can make an organisation put in the minimum effort required to obtain it. (Parry, 1999, p. 178) Based on the parameters identified above, let us now look at the criteria that can be used to evaluate a voluntary environmental management initiative. Many of these criteria will be the same as those used for an EMS, but the priority given to real improvement would be much more in the case of a VEMI. The steps to evaluate A VEMI will not be the same as for an EMS. The systematic evaluation for EMS may contain six steps, viz. (1) scope and the facility for which the certification is sought (2) relevant applications (3) review of documentation on the organisation's EMS (4) assessment for readiness of certification (5) certification and (6) follow up and monitoring. (Parry, 1999, p. 178) VEMI will have to be evaluated differently. Some of the criteria that can be used are described here. We can consider the criteria as being two types - internal and external. Internally, management commitment and employee involvement will be the main criteria. The organisation, in its entirety, should believe that the environment management initiative is good for itself and for the company. It is not enough to have an environment department taking care of the initiative. While the technical aspects like redesigning a product could be a technical matter, the entire population should be involved in projects that give them a chance to feel they are contributing to the initiative. This takes us to the next point, viz. communication. The objectives, targets, progress and achievements should be communicated to all stakeholders, including employees, who also need to see the results of their contribution. Communication not only creates awareness in all about the need for and the aspects of the initiative, but also enlists support for the activities. For communication to work well there should be strong indicators like clarity in objectives, comprehensive planning, focus on implementation and results but do not include not procedures. These are important to give direction and purpose to the initiative. The outcomes should also be measured as in any business activity. In this case, it will be improved eco-friendly products, a more efficient production process, and reduction in operating costs, improved overall performance and creation of a market for the improved products. These are what will provide the motivation to take the initiative forward and a sense of purpose and involvement in the people. Where the process of implementation is concerned, the important factor will be training, especially training aimed at identifying and measuring potential environmental impacts of the organisation's activities. Continuous monitoring should become a habit with the entire organisation to ensure that the initiative does not remain short term. On the external side, the most important criteria would be the reduction in environmental impact of the organisation's activities, as for example, reduction of pollution. The public image of the organisation is another indicator of how the initiative is being viewed by the public. Finally, the organisation would develop better relations with the community, which will result in mutual support and concern. This last factor is an important one to ensure continued and smooth functioning of the organisation in the locality, town, city or country. Where applicable, the organisation's contribution to conserving natural resources for example, water sources, forests or heritage monuments is another criterion that will indicate the success of the initiative. Labatt and Maclaren have also listed some criteria for evaluating voluntary initiatives, which include need for compliance with regulation, public image, financial gains and peer pressure. (Labatt, S; Maclaren, V. W. 1998, p.194) For a genuine VEMI, compliance with regulation comes naturally and should not be the sole reason for participating in a voluntary initiative. Public image and financial gains are valid criteria since they are practical considerations that need to be kept in mind. The public image can earn an organisation a better market share, though may not be very tangible as an outcome. Financial gains come out of improved product, increase in market share, reduced operational costs and better processes. The authors also raise concerns about the non-statutory nature of such initiatives and the high degree of flexibility they provide the organisation. They conclude that more research is required to confirm or negate the positive and negative aspects of voluntary initiatives. While some of these are valid concerns, it should also be noted that the flexibility that this kind of initiative gives, also provides the organisation a chance to go beyond the statutory and procedural requirements and make a difference to the environment and the community. (Voluntary Approaches to Environmental Regulation) In this context, we should again go back and take a quick look at what Lyon and Maxwell have to say about the three kinds of voluntary environmental programmes. According to them, all the three types of initiatives are possibly aimed at avoiding regulatory processes. They are also meant to placate environmental agencies that are getting stronger by the day. They also explode some common myths like large organisations and those with high R & D investments, and those with poor environmental records are likely to take up voluntary programmes. The authors highlight the fact that empirical evidence points to the opposite being true. (Voluntary Approaches to Environmental Regulation) Be that as it may, it is true that there are firms which are truly committed to creating a better environment because they sincerely believe it to be good for their business, their customers and the planet itself. While looking at the criteria for evaluating voluntary initiatives, the purpose is not to undermine the ISO 14000 certification. In fact, while voluntarily participating in environment initiatives, it would be a good idea for an organisation to also get certified, since it does have acceptability and ensures a certain systematic implementation and monitoring of the activities. Besides it will also ensure that compliance with regulation is being taken care of. Above all, the certification could become a requirement for industry at some point of time and preparedness for it would give the organisation an upper hand where implementation is concerned. The audit and assessment the certification requirement ensures, is a good monitoring system to identify priorities and take corrective action. It also ensures that the organisation bases its environmental function on a system rather than an individual or individuals and their experiences and interests. (ISO 14031: Environmental Performance Evaluation) This is a real threat in organisations where the head establishes an environmental management system out of interest and genuine belief, but his successor may neglect it as he does not share the same interests. A certification and the need to keep it alive and improve it obviate the necessity of such dependence. System improvement may also become more possible when a regular audit is carried out by a third person and suggestions recorded and followed up. And when a formal system is instituted, the Environmental Performance Evaluation -- EPE that will also need to be set in motion by the management will provide a basis for benchmarking the organisation's performance on various fronts like managerial, operational and environmental. The EPE put forth by ISO 14031 can be used even by organisations that do not have an EMS to understand their environmental aspects and which of them to deal with on a priority basis. (ISO 14031: Environmental Performance Evaluation) Hence, overall, the benefits by going in for ISO certification can be extremely good, if done with the right attitude. Having looked at the criteria that can be used to evaluate voluntary environmental management initiatives, having compared VEMI's with EMS, and having considered the advantages of securing ISO 14000 certification, we will now quickly evaluate ISO 14000 itself against the criteria we have developed for VEMI. Can these criteria be applied to ISO 14000 and see if it is effective as a certification The first two criteria that we had used for VEMI - management commitment and employee motivation - are applicable to ISO 14000 also. Without management commitment, it will not be possible to go through the processes required for certification. The only negative impact would be that the management could be committed just enough to gain certification and not take enough interest in analysing the outcomes and prioritising activities to make a real difference to the environment. Tibor and Feldman also mention that the success of EMS' requires strong management commitment. (Tibor; Feldman, 1996, p. 71) Employee involvement is also important in ISO 14000, but here there is a good chance that the only employees who will be involved would be the environment team, whose job it will be to ensure that the benefits and requirements of the certification are extracted. The others may merely hear of the activities with no real awareness or involvement. The next criterion of communication can also be used minimally to announce the various stages being covered in the process of certification, without really giving useful information. This can be detrimental when employee support is required to fulfil commitments. On the other hand, communication will probably be used by the company externally to publicise the fact of certification having been obtained in order to gain mileage with the public. This can, in fact, create conflict in employees who feel their contribution to the EMS is not valued. Communication, if used judiciously, can create a firm belief in the organisation that EMS is important as a contribution to society itself. Clarity in objectives, comprehensive planning and focus on implementation and results - these three are definitely part of ISO 14000. These have to be followed very rigorously for successful completion of the certification. Measurement of outcomes in terms of eco-friendly products, efficient processes, reduction in cost, improved performance and better market potential, are indicators that are important on the route to ISO certification. In fact, it is these that will probably motivate an organisation to go in for the certification at all. These are internal parameters that any company will want to use to improve its bottom line. On the other hand, whether reduction in environmental impact of the organisation's activities will be high on the priority list cannot be guaranteed. Depending on the attitude of the company, it may merely look for the visible aspects and refuse to go beyond the obvious requirements. Improved public image is something any organisation would welcome and if ISO certification can ensure this, it might be a great benefit. Better community relations will be tied to the just mentioned criterion of public image, because, if genuine concern is not present in the management, these aspects could become merely superficial. The organisation's contribution to conserving resources or heritage, likewise, will remain largely superficial if the commitment of the management is only functional. In brief, we can go back to Tibor and Feldman who have very succinctly summarised this aspect with the idea that there is a difference between having a system and acquiring performance standards; the goals and reports may look good, but actual practices may not match up. Above all, environmental goals that have been established and that have been actually met may differ considerably. In favour of voluntary initiatives, the same authors iterate that when companies have the flexibility to plan and achieve their goals, their efficiency may improve much more than when they are regulated through an agency. (Tibor; Feldman, 1996, p. 73) Thus, we can see that ISO 14000 can be an advantage or a disadvantage, depending on what the organisation's attitude and commitment is. Needless to say, ISO 14000 is here to stay like ISO 9000 and is likely to make an impact on business and create a trend in environmental standards and responsibility, much as ISO 9000 did for quality standards the world over. In fact, organisations like Capaccio Environmental Engineering, Inc. even suspect that eventually ISO 14000 may become a requirement for obtaining ISO 9000 certification. Nevertheless voluntary initiatives will show the way for business to take on environmental responsibility without waiting for regulatory measures. References Capaccio Environmental Engineering, Inc. 2000. Environmental Performance: Getting the Most Out of Your EMS. August-September. Accessed 14 March, 2006 from the World Wide Web: http://www.capaccio.com/Tools/RevArt/Article1.htm Capaccio Environmental Engineering, Inc. Establishing Targets and Objectives. Accessed 14 March, 2006 from the World Wide Web: http://www.capaccio.com/Tools/RevArt/Article8.htm Hamner, Burton. A Strategic Approach to ISO 14001. Accessed 14 March, 2006 from the World Wide Web: http://cleanerproduction.com/Pubs/pubs/ISO14-P2Article.html ISO 14000 Information Centre. ISO 14031: Environmental Performance Evaluation. Accessed 14 March, 2006 from the World Wide Web: http://www.iso-14001.org.uk/iso-14031.htm "ISO 14001: Is it time for your company to become certified' Accessed 14 March, 2006 from the World Wide Web: http://www.iso14000.com/Docs/WhatISO14000.pdf Labatt, S; Maclaren, V. W. 1998. Voluntary corporate environmental initiatives: a typology and preliminary investigation. Environment and Planning C. Government & Policy [Environ. Plann. C.]. Vol. 16; No: 2, pp. 191-209. Leon, Thomas P; Maxwell, John W. 2001. Voluntary Approaches to Environmental Regulation. Accessed 14 March, 2006 from the World Wide Web: http://www.indiana.edu/workshop/papers/lyon031901.pdf Markovic, Boban. Reading 4: Environmental Performance Indicators. Accessed 14 March, 2006 from the World Wide Web: http://www.safesci.unsw.edu.au/gens8005/docs/read4.pdf Parry, Pam (ed). 1999. The Bottom Line. CRC Press. Putnam, David. 2002. ISO 14031: Environmental Performance Evaluation. Accessed 14 March, 2006 from the World Wide Web: http://www.altech-group.com/ftp/EPEarticle.pdf Spivac, Stephen M; Brenner, F Cecil. 2001. Standardisation Essentials: Principles and Practice. Marcel Dekker. Tibor, Tom and Feldman, Ira. 1996. ISO 14000: a Guide to the New Environmental Management Standards. Chicago: Irwin. US Environmental Protection Agency. Environmental Management Systems. http://www.epa.gov/performancetrack/tools/ems.htm Accessed 15 March, 2006 Read More