6 - Regulatory and Social Processes Flashcards
What must companies do to operate in their communities?
Companies must continually earn the right to operate in the communities and countries in which they produce and sell.
What are the main regulatory standards companies need to comply with?
National and local regulations on the environment, employee health and safety, and hiring and employment practices.
Why do companies aim to exceed minimal regulatory standards?
To develop a reputation as an employer of choice in every community in which they operate.
Who emphasized the importance of integrating social and environmental accounting into accountability reports?
Marc Epstein and Bill Birchard.
What does Nova Chemicals aim for in its community initiatives?
Outstanding performance concerning safety, health, and environmental standards.
What enhances a company’s commitment to the community, according to Nova Chemicals?
Corporate sponsorships and donations.
What is the relationship between regulatory performance and shareholder value?
Failure to perform adequately on regulatory and social processes puts at risk the company’s ability to operate, grow, and deliver future value to shareholders.
How can an excellent reputation in regulatory and social dimensions affect a company?
It assists in attracting and retaining high-quality employees.
What changes did BellSouth implement to improve its HR practices?
Added benefits for domestic partners and included a diversity measure on HR department scorecards.
What are the dimensions along which companies manage and report their regulatory and social performance?
- Environment
- Safety and health
- Employment practices
- Community investment
What are the components of environmental performance reports?
- Energy and resource consumption
- Water emissions
- Air emissions
- Solid waste production and disposal
- Product performance
- Aggregate environmental measures
How do companies typically measure energy consumption?
Total energy consumed or normalized by units of output, sales revenue, or cost of goods sold.
Why is clean water considered a scarce resource for companies?
Due to the demands made on clean water supplies and the total wastewater released.
What types of air emissions do companies commonly report?
- Toxic gases
- Air carcinogens
- Carbon dioxide (CO2)
- Nitrous oxide (NO)
- Sulfur dioxide (SO2)
What is the purpose of product performance reporting?
To address the environmental impact of products even after they have been sold.
What are some design considerations for environmentally friendly products?
- Identify design changes that reduce environmental impact
- Eliminate hazardous or toxic materials
- Use molded-in colors instead of paint
- Design for easy disassembly and recyclability
What does the ISO 14000 family of standards focus on?
Environmental management, including monitoring the quality of air, water, and soil.
What is an example of a measurement for hazardous waste reported by companies?
The amount of hazardous waste sent off-site for disposal.
True or False: Companies aim for compliance with regulations only to avoid shutdowns.
False.
Fill in the blank: Companies with outstanding reputations enhance their images with _______.
[customers and socially conscious investors]
What does Coca-Cola’s stewardship initiatives focus on?
Forming alliances to seek solutions to environmental challenges.
What is the main goal of Novartis’s annual Sector Reviews?
Continuous improvement in health, safety, and environmental performance.
What type of waste did IBM report reducing despite increases in production?
Hazardous waste generation.
What is the ISO 14000 family of standards?
A set of standards developed for environmental management, including over 350 specific standards for monitoring air, water, and soil quality
Established in 1996 to make development, manufacturing, and supply of products and services more efficient, safer, and cleaner.