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Thinking Clean
Training Clear
Connecticut companies find that becoming better stewards of the environment can involve a learning curve
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Business New Haven
08/04/2003
By: Lisa MiCali
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In recent decades, the conception, practice and enforcement of corporate social responsibility have evolved into an important and fundamental aspect of good business practice but this wasn’t always the case.
It’s not easy to comply with the myriad environmental, health and safety guidelines, regulations and codes stemming from the various regulatory agencies. Many companies, however, are seeking higher ground, where risk is mitigated and profits maximized. And where the two goals are not in conflict.
A number of prominent corporate environmental crises such as the Exxon Valdez spill and the explosion of the Union Carbide plant in Bhopal in the1980s prompted public and private indignation about corporate (mis)behavior. These events acted as a driving force that brought the issue of corporate responsibility to the forefront of the public’s interest.
Both disasters led to stringent new guidelines for environment, health, and safety standards (EH&S) along with new efforts to promote communication and transparency inside-and-out of the corporation. In the instance of the Exxon Valdez, oil spill for example, external pressure heightened the call for environmental management and reporting, and led to public coalitions for corporate responsibility to the community. Both these crises, also demonstrated the power of public social activism and the so-called trial in "the court of the public opinion" as we have never witnessed before.
In many ways, disasters such as these have evolved into a wake up call for businesses to start acting in the best interests of the environment say industry experts. Perhaps there is some true to the fact that an environmental catastrophe may be necessary and inevitable (without an environmental crisis, most warnings are not taken seriously and neither the businesses involved nor the regulators are willing to act), to achieve the formation of landmark regulation around environment, safety and health issues.
Brad T. Garber, professor and director of the academic programs in occupational safety and health and chair of the professional studies department at the University of New Haven for over 20 years says that in recent years, the global business community has become painfully aware of
the importance of safety procedures and precautions within the organization. "No employer today can afford to relegate safety to a minor role within the organizational hierarchy," says Garber. "Businesses today need competent safety specialists whether they are full-time professionals or part-time consultants. The demands placed upon the safety professional require a broad background in chemistry, physics, engineering, psychology and biology as well as specific knowledge in the safety sciences."
Environmental responsibility is a sensitive area for many businesses, though, laden with minefields and the looming threat of litigation, but, continues Garber, it is in business’ best interests to promote ethically sound and safe practices for its stakeholders and the community. While businesses today face diverse and even conflicting interests and pressures, the importance of responsible environmental practices has grown considerably over the last few decades and is set to grow even further in the foreseeable future. But, most companies, do not intentionally misbehave. Most small to mid-size manufacturers are doing everything they can to comply. Sometimes, they may not be totally aware of new regulations, but once they know, they work to implement training," says Judy Wlodarczyk, an environmental management specialist at the Connecticut State Technology Extension Program (ConnbSTEP), which works to help small Connecticut manufacturers develop the capability to implement lean and safe manufacturing techniques.
Many corporations have increased their awareness of their important social role and the impact their business has on the environment by recognizing the need to enhance its processes through proactive training programs, and increased supervision and regulation. Recommendations and guidelines adopted by international and federal agencies or other bodies provide broad orientation, but in most cases, no benchmarks or role models exist for industry specific situations.
"Currently, most managers are unequipped to handle the issues that good corporate citizenship encompasses," says Garber. "Most advanced business management programs have little or no offerings in their curriculum that would help managers begin to understand the dynamics that citizenship encompasses. At the UNH, we are innovative in that we have required environmental, safety and health programs for our students arriving from management tracks in business, engineering, science, legal, or other backgrounds to provide basic training necessary to tackle social responsibility issues brought about by environmental or safety impacts. It makes a lot of sense to train business students both from an ethical standpoint as well as from a business standpoint. But that’s not the case for the majority of universities throughout the country."
Managers at small firms, admits ConnSTEP’s Wlodarczyk, generally find it difficult to keep abreast of developments concerning new and revised recommendations, guidelines, codes and reporting formats aimed to promote social and environmental responsibility of business. Most are likely to seek help with outside professionals and agencies or with business partners specialized in these areas to achieve compliance adds Wlodarczyk. "Managers are confused not only by the definitions and requirements but also by overlapping business initiatives in a tough economic environment," says Wlodarczyk. "They appreciate the complexity of the issues, but point out that codes and guidelines often cause additional costs and inefficiencies, and slow down practical action when deadlines are looming. Smaller companies may just be unable to cope with new requirements on time but eventually, they do comply."
Likewise, capitalism seemingly creates opposition to the petitions for higher corporate social responsibility. Garber is quick to point out that there is in fact no dispute between the aims of profit maximization and corporate responsibility. In fact, the argument goes, good corporate citizenship is increasingly becoming a necessary strategy to achieve and maintain shareholder wealth. Advocates contend that by managing and building relationships with key stakeholders, everyone – including shareholders — benefit in the long run.
Companies, though, are looking to do things differently than they did in the past says ConnSTEP’s Wlodarczyk. "Call it ‘clean thinking’. They know that there is a high cost and high risk with worker health and safety issues as well as environmental issues. What they’re doing is changing practices and processes to minimize the risks and the impacts from them. Those are the kinds of companies that are going to in the long run save money and sustain their business practices."
Verizon Wireless spokesperson, J. Abra Degbor, says their organization does not see it as a conflict either. "Accidents cost Verizon Wireless both directly and indirectly. A good safety program reduces expenses in the long run and keeps our employees healthy and more productive. It is an integral part of our code of conduct and we emphasize it every year through our code of conduct training. It never comes down to putting the safety and health of our employees before profits or the bottom line. It’s the way we do business."
Verizon’s major safety issues are fall protection on towers or what they call "cell siting towers", handled by outsourced contractors and not direct Verizon personnel, ergonomics, and mold in offices. Degbor says they provide on-going classroom training to supervisors and managers that teaches them corporate responsibility and safety through their in-house safety consultants about how to deal with hazards and accidents on the job.
United Technologies Corp.’s (UTC) environmental health and safety policy statement begins like this: "The corporation will not be satisfied until its workplace is safe from hazards, its employees are injury free, its products and services are safe and its commitment and record in protecting the natural environment are unmatched." This statement made back in 1995 has guided UTC to significant strides over the years in dealing with a variety of environmental, health and safety issues says vice president of environment, health and safety, Richard Bennett. "We will leave no step untaken to ensure the safest possible workplace and protect the environment," adds Bennett.
"UTC’s most rewarding accomplishment last year was a further 27 percent reduction in our worldwide lost workday incidence rate, on the heels of a 30-percent reduction the year before. These are great results and bring the total reduction over the past decade to 88 percent," says Bennett.
Hartford-based UTC is a $28.2 billion global corporation, with six operating companies (Carrier, Hamilton Sundstrand, Otis, Pratt & Whitney, Sikorsky, UTC Power and United Technologies Research Center) and employs approximately 155,000 people worldwide, operating in 180 different countries. It is the 49th largest U.S. corporation and one of Connecticut’s largest employers.
UTC’s EH&S measures include manufacturing waste as well as resource consumption and employee injuries. Measurements are key to the success of UTC’s EH&S. From the mid 1980’s to the mid 1990’s, UTC decreased its process emissions by approximately 90 percent. "In 1997, CEO George David set goals to further reduce process emissions at
UTC," says Bennett. "We’ve not only set goals, but we’re on track to meet them by January 1, 2007. These goals were clearly ambitious and we made great strides in the 1990s. UTC was very forward-thinking in looking at these measures. We have had tremendous EH&S gains since our renewed and revitalized commitments in the early 1990’s. We are proud of these achievements and continue to create innovative operational approaches to compliance, and work to prevent liability and achieve environmental excellence. But more importantly, the confidence gained from past accomplishments drives us to achieve significantly higher goals in the future. Something that benefits not only UTC, but the community."
"Our objective is to eliminate all employee injuries by making the workplace free from hazards and unsafe actions. Drive pollutants in manufacturing processes to the lowest achievable levels and conserve natural resources in the design, manufacture, use and disposal of products and delivery of services. By establishing safety and environmental protection standards that both comply with local laws and go beyond, when necessary, to achieve the goals of our policy, we hold our operating managers accountable for safety and environmental performance and for provide leadership and training resources to meet our objectives," adds Bennett.
Verizon too, focuses on measurements as a key way to gauge progress. "Our goal is zero accidents but, that is not realistic. So, we measure success by reducing the number of accidents and reducing lost days. The true measure is intrinsic — when we know safety has truly become apart of our culture, once employees internalize it and are not reacting to it – we are successful."
Another way companies today are taking a proactive approach to safety, health and environmental issues is by implementing an environmental management system, or ISO 14001 says Wlodarczyk. "There is a new standard out, 18001 that deals specifically with health and safety. It’s a systematic way to look at what the issues are and what the requirements are. Both have a continuous improvement system prevention piece that encourages, and almost requires them, to look at things and make them better. But, that has to come from the top down in an organization."
Like Algonquin Industries in Guilford, which went through ISO 14001 registration because, says Wlodarczyk, they wanted to do the right thing. "They didn’t want to create a negative impact on the environment. But this initiative [from Algonquin] came from the CEO who felt this was the correct route to take."
In the changing world of environmental regulation, new challenges are always on the horizon. U.S. environmental legislation traditionally focused on the manufacturing process to reduce environmental damage and reverse its effects.
But, new legislative trends are coming from Europe, where governments are focusing on product content and life cycle to reduce environmental impact. Climate change, diminished resources and reducing waste are key drivers, too. Bennett of UTC says, "I work with those who develop, design and source our products to make sure we are proactively meeting the new regulatory challenges.
We can’t wait until a product is designed before we address its environmental impact." Proactively designing in sustainability is good business sense, he adds. Companies have to work at all levels of the business hierarchy – from research and development to supply chain management, manufacturing, sales and service to meet their corporate responsibilities. The entire life cycle of a product or service has an impact on the environment, and safety and health. For EH&S, it’s all tied up in one thought: Social responsibility must be held today as a core company value and implemented as a means for translating that commitment into reality.
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