50 Long Range Planning, Vol. 25, No. 3, pp. 50 to 59, 1992 0024-6301/92 $5.00 + .

OO
Printed in Great Britain Pergamon Press Ltd

Environmental Issues The :

Challenge for The Chief Executive

Colin Hutchinson

Businesses are under pressure to adopt environmental policies have divided up the task and many top executives
and incorporate them into their strategic business planning as have been drawn in to work with the Department
a matter of routine. These pressures are coming from at least
of the Environment.
five sources-stricter legislation, consumer demand, competi-
tive advantage, staff concerns and community pressure. The
challenge is enormous but there is growing evidence that Similar initiatives are being taken by other countries
sound environamental management provides pay-off in bot- around the world and there is no doubt that all
tom line results. Business organizations have a vitalrole to play commercial and industrial organizations are now or
and its good for them. There are opportunities for new business
soon will be taking their environmental responsi-
as well as threats to those organizations which continue to
ignore the trends. bilities seriously. Sir Denys Henderson of Imperial
Chemical Industries plc has said ‘As individuals, we
care about our environment and as a company we
are increasingly judged on our environmental
record as much as on any other aspect of our overall
For the first time ever, a World Summit has been performance.’
called and is due to take place in Brazil from 5 to
19 June 1992 under the title of the United Nations
Conference on Environment and Development What are the Environmental Issues?
(UNCED). Th ere is sufficient concern about the
health of planet Earth to attempt the formidable task In this article a very brief outline is provided but a
of getting all national leaders together in one place at more comprehensive coverage of the issues is
the same time to agree some crucial principles. contained in Business and the Environmental Chal-
lenge: A Guide fir A4anagers.3 This guide contains
Maurice Strong is Secretary-General of UNCED references to some 60 books as well as a brief
and he has appointed Dr Stephan Schmidheiny, a description of 20 threats to the Earth’s life support
prominent Swiss businessman, to head up the systems.
Business Council for Sustainable Development
(BCSD).’ The Ch airmen/Chief
. Executives of 50 Population
major organizations from around the world are In 1900 the world population was estimated at 1.5
members of BCSD-including Norsk Hydro, billion, by the year 2000 it is expected to exceed 6
Volkswagen, 3M, Ciba-Geigy, Nissan Motors, billion and is unlikely to stabilize until it exceeds 10
John Laing, Dow Chemicals and Royal Dutch billion in the latter half of the next century. The
Shell. Their mission is to stimulate active partici- average annual increase in each of the last five
pation of the business community in the prep- decades is shown in Table 1.
arations for Brazil with particular emphasis on
environmentally sustainable development. As world population grows the impact on the
environment grows with it. Every extra mouth to
In the U.K., Michael Heseltine, Secretary of State feed, every extra person to consume energy, every
for the Environment has appointed a committee addition to resource consumption and the resulting
under the chairmanship of John Collins, Chief pollution creates further demands on the capacity of
Executive of Shell UK Ltd, to address similar the Earth to cope and to provide healthy habitation
questions in this country.* Three subcommittees for all living things.

Cohn Hutchinson is a Management Consultant in Environmental Consumption

Affairs and chairman of the Conservation Trust. The pattern of consumption varies widely, so the
 The Challenge for The Chief Executive 51

Table 1. World population growth by decade or buy enough food to maintain their health; they
1950-2000 are predominantly illiterate and therefore lack the
ideas and information which would enable them to
Increase Average escape from their predicament.
Population bY annual
Year (bn) decade increase
One comparative measure which highlights the
1950 2515 disparity of wealth and poverty in rich and poor
1960 3019 504 50 countries is GNP per capita as is shown in Figure 2.
1970 3698 679 68
1980 4450 752 75
5292 842
At least 80 per cent of the world population, not
1990 84
2000 6251 959 96 only in poor countries, wish to improve their
standard of living-the poor in developing coun-
Source: Lester Brown et a/.. State of the World 1990. tries for very good reasons. If this improvement in
living standards is achieved by conventional forms
of development then the problems of the environ-
impact on the Earth from relatively small numbers ment which are now widely discussed-global
of high consumers is much more significant than the warming, ozone depletion, loss oftop soil, pollution
low levels of consumption of the vast majority of in all its forms, destruction of rain forests, water
the people who live on Earth. About one quarter of quality, acid rain etc.-will reach even more
the world’s population live in the developed horrific proportions.
countries and they account for two thirds of the
Earth’s energy consumption. The remaining three Pollution and Use of Resources
quarters of the world’s population live in develop- The scale and nature of the threats to the environ-
ing countries and account for only one third of the ment have been widely reported in many books, on
energy consumed. This is shown in Figure 1. television and in the press. An interesting report
published in 1991 entitled Industry and the Environ-
It is estimated that of the world’s population of 5.3 ment: A Strategic Overview4 lists 12 key environmen-
billion in 1990, one billion live in countries whose tal problems as shown in Table 2. The interesting
standard of living (health, housing, diet, education aspects of this report are that the environmental
and material possessions) have improved over the significance of each problem is tabulated together
last century. The remaining 4.3 billion have not with the main causes and an estimate of the
improved their standard of living significantly quantities of pollutant released. The industries
during this period and one billion of these people which contribute to each problem are identified,
live in absolute poverty-they are too poor to grow developments in legislation are discussed, the tech-

DEVELOPING COUNTRIES

DEVELOPED COUNTRIES

0.0 7.5 15.0 22.5 30.0 37.5 45.0 52.5 60.0 67.5 75.0
Percentage figures
I Consumption % I7 Population %
Source: Gala Peace Atlas
Approximate figures
L

Figure 1. World energy consumption and population

52 Long Range Planning Vol. 25 June 1992

GNP Per Capita

OECD Members

Europe, M East, N Africa

South Asia
D

East Asia
D

Sub-Saharan Africa
h
P I I I I I I I I I I
0.0 1.5 3.0 4.5 6.0 7.5 9.0 10.5 12.0 13.5 15.0

In Thousands
Source: World Development Report 1989 GNP Per Capita $
World Bank weighted average figures 1987

Figure 2. The gap between rich and poor countries

Table 2. Key environmental problems cent), Nitrous Oxide (6 per cent) and others (13 per
cent). Virtually every industry is involved in
Estimated expenditure (fbn
making their contribution to this environmental
1991-2000)
Issues U.K. E.C. U.S.A. issue. Remedies include landfill gas collection and
flaring, afforestation, m-use of waste heat, district
Greenhouse effect 48 237 443 heating, recovery of methane at coal mines, landfill
Water quality 25 75-l 00 71 sites, farms and abattoirs, use of efficient boilers,
Waste manage-
motors and domestic appliances, better insulation,
ment 19 180-200 120-I 70
Acid rain 11 51 25
energy management systems, traffic management
Heavy metals 9 80 52 systems, and use of more renewable energy (solar,
Ozone depletion 7 70 76 tidal, wind, wave geothermal and hydro).
Air quality 7 34 17
Noise 6 32 33
The countries which contribute the most to the
VOCs and smells 3 26 27
Persistent orga-
greenhouse effect are the U.S.A., C.I.S. (former
nits 2 23 15 U.S.S.R.), Brazil, China, India, Japan and the U.K.
Contaminated which between them account for 60 per cent of the
land 2 25 150 global problem, as shown in Figure 3.
Major spills 1 7 7

TOTAL 140 860 1060 One question that inevitably arises concerns the
ability to find the capital expenditure required to
Source: Industry and the Environment: A Strategic Overview, The
Centre for Exploitation of Science & Technology tackle the problems that undoubtedly exist, at a level
that will make a significant difference.

nologies most likely to abate or remedy the

problems are explained and the probable expendi-
ture in the U.K., Europe and the U.S.A. are
Military Expenditure
estimated. World military expenditure is now approaching
$lOOObn each year and 70 per cent of this is incurred
The greenhouse effect tops the list of problems by the super powers and their allies. The pattern of
assessed by CEST. Carbon dioxide accounts for military expenditure relative to the expenditure on
nearly half the greenhouse gases with methane health and education varies enormously from
(18 per cent), Chlorofluorocarbons (CFCs-14 per country to country. For example Iraq’s military
 The Challenge for The Chief Executive 53

17.60
U.S.A.

10.50
Brazil

6.60
China --I

U.K. 40.00
Other

Source: The Guardian June 15th 1990

U.S.A. have Highest G-gas
Emissions Per Capita (Mn Tonnes p.c.1

Figure 3. Estimates of greenhouse gas emissions from specific countries

expenditure is 90 per cent compared with only around $500bn a year for 10 years. Even at this level,
10 per cent on health and education. Iran, Uganda, it is still only half the annual global military
Oman, and Pakistan are all over 75 per cent on expenditure.
military spending and under 25 per cent on health
and education. This contrasts with Costa Rica with
It is considerations like these that have led to the
only 2 per cent military spending and 98 per cent
50 per cent initiative by Saferworld.’ They also give
health and education. Mauritius, Trinidad &
some interesting figures of the trade-off between
Tobago, Jamaica, Panama, Botswana and Brazil
spending on specific military priorities and an
keep their military expenditure under 30 per cent
environmental priority which might be an appro-
with over 70 per cent on health and education.
priate alternative. For example, 10 days of European
These figures suggest that it is possible for national
Economic Community military spending is kl.5bn
governments to exercise choice and that the com-
which could, as an alternative, be spent each year on
parative levels of expenditure are more a matter of
cleaning up hazardous waste sites in 10 European
policy than necessity.
Economic Community countries by 2000. They
also draw attention to the proportion of Research 81
Some interesting figures are quoted by Norman
Development expenditure that is directed into
Myers in the Guia Atlus of Future Worlds5 drawing
military R & D. In Israel, U.S.A. and U.K. over
on calculations made by Lester Brown of the
50 per cent of public R & D is for military purposes.
Worldwatch Institute. The estimated expenditure
required to restore environmental security amounts
to no more than 8 weeks global military expendi-
ture at the levels being incurred in the late 1980s.
Table 3 gives the details.
A Key Role for Business
It will already be apparent that industrial organiza-
Barry Commoner in Making Peace with the Planet6 tions of every kind are directly involved in the
also provides some comparable estimates. He con- environmental challenge. The target for the foresee-
siders that the expenditure required to effect a global able future is to strive for sustainable development.
transition to an ecologically sound system would be This is defined by Gro Harlem Brundtland in Our
54 Long Range Planning Vol. 25 June 1992

Table 3. Estimated expenditure to Table 4. The challenge to business

‘Repair the Environment’
To make the present business effective and the
Sbn environmental impact acceptable

To identify and realize its potential, including the

Protect World’s top soil 9 potential for:
Restore World’s forests 3 6 reducing pollution
Halt the march of deserts 4 $r using resources economically and efficiently
Raise energy efficiency 10 * developing new business opportunities
Develop renewable energy 5 A providing fulfilling work for staff at all levels
Slow down population growth 18
Supply World with clean water 30 To make your business into a different, sustainable
Write-off Third World debt 30 business for a future that will inevitably be different.

All three challenges have to be faced in the present.

Total 109

Total by year 2000 170

N.B. The equivalent of 8 weeks global military the money might come from to tackle the issues. It is
spending. now necessary to look at the issues from the
Source: Myers, Gaia Atlas of Future Worlds
(p. 162).
perspective of the individual business.

John Davis, who was at one time Chairman and

Common Future8 as ‘development that meets the Managing Director of Shell Composites Ltd and
needs of the present without compromising the IBE Ltd, recently wrote Greening Businesx.9 In
ability of the future generations to meet their own undertaking to write this book he decided that the
needs’. Since that report was published many best approach would be to think in terms of a Chief
national governments have produced their own Executive facing the challenge of changing his
documents and white papers, set up committees to business into one that would be sustainable.
work out what should be done and how it might be Throughout the book he retains a highly practical
implemented etc. Britain is no exception. approach and quotes examples which demonstrate
that very significant progress can be made.
The challenge facing any business inevitably focuses
on current performance. For many companies the From that and other sources it is possible to identify
struggle to manage short term cash flow takes some of the consequences for businesses that decide
precedence over other matters. During periods of that the environmental challenge is not for them.
rapid external change there is also a pressing need to They are likely to find that there are adverse
assess the organizations potential and find ways to consequences of many kinds for their business.
include time to attend to this perspective. If it is These will not all emerge at one time and they will
ignored then the business may emerge from the not affect businesses in different sectors to the same
recession having been overtaken by events. There is degree. It is quite possible that many directors and
also a third, equally important, perspective which senior executives already experience a general
concerns changing the business because the future malaise but find it hard to be specific. In these
will inevitably be different. All three elements can circumstances it is worth considering the degree to
be applied to environmental issues as well as which the checklist in Table 5 is relevant to your
conventional business performance. When this is business now or could become relevant in the future
incorporated the third dimension becomes chang- if nothing is done.
ing the business into one that will be sustainable.
The three dimensions of the challenge are summar- The case for early action is powerful and is already
ized in Table 4. being borne out by companies who are leading the
way in adopting a responsible attitude towards the
In undertaking this challenge many organizations environment. The benefits which many of them
will be daunted. The three elements cannot be have already identified range from an enhanced
tackled sequentially. If that is attempted, urgent reputation or higher market profile, through
work constantly takes precedence over important attracting environmentally aware customers, to
work and it becomes very difficult to get beyond the saving money through pollution control and
first challenge. Methods have to be found to explore resource conservation and to providing more
untapped potential, to allocate resources to do this satisfaction to their staff. Table 6 provides a
work and do it in ways that bring about continuous summary of tangible benefits that have been
change. obtained by some named companies.

The arguments in this article so far have centred

around the global perspective, the threats to the
Sustainable Business Opportunities
Earth’s life support system, implied consequences
for all life on Earth if there is no change to current It is easy to recognize the potential for new business
trends and some worldwide perspectives on where growth for some sectors of the economy. For
 The Challenge for The Chief Executive 55

Table 5. Potential threats if the environment is Table 6. Potential benefits for environmentally
ignored aware companies

Corporate image deteriorates Enhanced reputation, or greater prominence in the

market (e.g. Norsk Hydro have acquired a reputation for
Customers prefer products and services which do less being at the leading edge of concerned companies)
damage to the environment
Attracting the Green Consumer (e.g. Safeway,
Investors become more difficult to attract. The company
Sainsbury and Tesco who are vying with each other for
cannot meet the criteria for environmental and ethical
this growing market in their supermarket stores)
screening
Achieving positive investment screening (e.g. The
Material costs rise faster than for competitors who use
Merlin Jupiter Ecology Fund Portfolio includes
materials more sparingly and recycle resources
companies such as Body Shop International, Freeman
Penalties for pollution become greater-in money terms Group, Rotork, Shanks & MacEwan, Ultramar)
as well as in damage to reputation and possibly health
Reducing material costs through recycling and better
Insurance premiums increase because environmental control of pollution (e.g. Dow Chemicals with their
damage is likely to be greater than it is for competitors WRAP-Waste Reduction Always Pays-and 3M with
who reduce their pollution risks their PPP-Pollution Prevention Pays-have found on
repeated occasions that their slogans are true)
Recruitment becomes increasingly difficult and it
becomes harder to keep good people as more seek Saving money through efficient management of heating
companies which provide scope for personal growth and lighting of buildings (e.g. Ernst & Young have
and development as well as a company that cares for achieved very worthwhile savings in many of their
the environment offices)
Failure to give early attention to re-focused R & D and Avoiding excessive insurance costs (e.g. several
management development create a time lag so it insurance companies, especially in the U.S.A., are re-
becomes increasingly difficult to catch up with assessing risks and increasing premiums or refusing to
competitors re-insure unless money is spent on risk reduction)
Alienation from the local community with the Attracting and keeping environmentally aware staff (e.g.
consequences of a hostile neighbourhood companies involved in graduate recruitment are finding
that they are closely questioned about attitudes towards
Failure to act may provoke stricter legislation or closer
the environment and surveys have revealed that this is
attention from regulatory authorities
an area of growing concern among prospective recruits)
Royal warrants may be withheld or withdrawn
Becoming better integrated with the local community
The long term future for the Company may be (e.g. Pilkington have a reputation in St Helens of being
jeopardized well integrated with the community and to have gained
from this reputation as well as in more tangible ways)
Being a supplier of ‘green’ goods and services (e.g.
3M’s subsidiary Varta raised their market share from 4
example, those companies, like Emstar, which are in
to 15% with their new cadmium-free battery; Emstar, a
the heating service business have done well. How- subsidiary of Shell have done very well with their
ever, they have found that even though the heating services business and have experienced
economic argument for economical heating and considerable expansion)
lighting has been there for years, it is the new trend
in environmental concern that has done more to
stimulate expansion in demand for their services. report and the very clear indications it provides for
They also point out that the environment would be the potential for business expansion to combat
better protected if the extent of pollution from environmental threats and the opportunities that
inefficient heating was reduced even more rapidly will arise for many different industries. Another
and this could be greatly helped with more tangible perspective is provided by Lester Brown, President
government incentives. of the Worldwatch Institute. His institute publishes
an annual State of the World Report” and the
Another area for predictable increase in demand is in Worldwatch Papers,” but he has also written an
those services that provide information and advice article A Stlstainable Ftlttlre13 which looks ahead to
on environmental management. Sure enough there the year 2030 and describes a global community that
has been rapid growth in this area which is being can endure. Some of the examples from this article
taken up by new ventures in many of the major include the development of different kinds of
consultancies such as Coopers & Lybrand Deloitte sustainable energy such as solar, wind and geother-
(they have just published a D-I-Y guidelo), mal to suit local conditions, more efficient heating
Arthur D. Little, PA Consulting Group and Ernst & systems and long life light bulbs which consume less
Young. primary energy. In the field of transport, more
economical cars capable of 100 mpg are described as
Fisons have a range of organic products under the technically feasible now. As fuel costs rise and
brand name Fisons Originals for gardeners which congestion gets worse people might well live nearer
are becoming more prominently displayed in their place of work and increased travel by bicycle is
garden centres and more widely advertised. probable as well as more use of greatly improved
public transport. The development of telecommu-
Reference has already been made to the CEST nications could well result in more conferences or
56 Long Range Planning Vol. 25 June 1992

use of electronic mail to reduce the need for people Table 7. Some specific business opportunities
travclling long distances for meetings.
Solar energy, especially in Asia, Africa and the
Middle East, Southern U.S.A., Central America and
Clearly pollution control and recycling technology
the Mediterranean using solar thermal power as well
will develop rapidly. The latter is already relevant as photovoltaics
for glass, paper, aluminium and garbage. In the case
Geothermal energy, especially around the Pacific rim,
of glass and other containers there is also scope parts of the Mediterranean and Africa’s Great Rift
for greater standardization and re-use as well as Valley
recycling. For new product development, environ-
Wind energy, especially in parts of Northern Europe
mental ideas will be taken into account at the
Telecommunications which help to reduce certain
conception stage and create demand for significant
kinds of travel and enable more people to work from
changes in the design and engineering disciplines. home

Recyling technologies applied to water, bottles,

It may seem unrealistic to think in terms of a 40-year
paper, aluminium, garbage, plastics, and metals of
time horizon for many of today’s businesses especi- various kinds
ally when they are struggling with immediate cash
Engineering developments especially in the field of
flow problems. However, for many organizations, greater efficiency in fuel consumption and less
the question of investing capital for the future pollution
continues, new products are developed, new busi- Organic farming and gardening and new ways to
ness opportunities are sought and replacement for control pests through biological methods
declining business becomes a recurring challenge.
Re-use (rather than recycling) of containers which
Some companies will tackle these problems from would mean greater standardization
the perspective of a continuance of passed trends
Service industries growing up in the new field of
whilst others will look ahead with more imagina- environmental management and appropriate
tion and courage. processes

Transportation with greater emphasis on efficient,

There arc many signs that the 1990s will see the convenient public transport services, less use of the
concept of sustainable development becoming more car (which would be more economical-lOO+mpg),
clearly defined with more industries feeling the and more use of the bicycle
effects. Those companies which invest in buildings, Replacement for CFCs, especially in refrigerators
plants, machinery and products without taking into
Fertilizers made from treated human sewage
account the evolving concept of sustainable dc-
Desalination of sea water to supply fresh water,
velopment arc likely to find that they arc wasting
especially in coastal areas, using renewable energy
money because obsolescence is more rapid than they such as wind, solar and geothermal rather than fossil
ever imagined. Conversely a rash guess about the fuels
future with relatively unproven technologies and
New methods of assessing corporate environmental
products is also likely to lead to failure. Strategic performance-a challenge to accountants and others
planning which takes account of the environment involved in various forms of performance
will bc a demanding discipline but which will have measurement
many rewards for those who do it well. Computer software programmes providing
information to manage many aspects of the
Some of the possibilities for business expansion are environment

identified in Table 7.

Sometimes when a new appointment of this kind is

made others use it as an opportunity to refer all
Implementing an Environmental environmental issues to this person. Alternatively
the newly appointed person tends to be ignored or
Policy rebuffed for fear of ‘interference’. Success often
You may be reading this article believing that your depends on assessment of the contribution that will
company has done little or nothing about its impact make a significant difference, a carefully planned
on the environment. You may recognize a few approach which takes account ofothers’ needs, and a
initiatives that your organization has taken but strategy which identifies and builds on the support
believe that much more could be done. You may be of those who are committed to this kind of change,
one of those few executives who is directly involved coupled with appropriate confrontation on really
and in the forefront of environmental initiatives important issues.
within your company but now see some additional
possibilities. Some apparently obvious first steps that have been
tried tend to work well only if they are given
In every case the dilemma with any individual, thorough preparation. An environmental audit may
irrespective of seniority, is to find a way to tackle the seem to be a good starting point but many have
issue that will lead to productive outcomes and not found that the audit itself changes nothing-prior
bc seen as working a personal or vested interest. briefing and follow-up are both crucial. The process
 The Challenge for The Chief Executive 57

should begin with building understanding and way of working and reporting relationships are all
commitment at top level that an audit is worth important. How the interface with each departmen-
doing, defining the objectives and scope, setting tal head is managed and how the committee relates
time frames, deciding who will do it and the nature to the board are important considerations for
of involvement of internal staff, agreeing how the smooth working.
audit findings will be reported and appreciating the
obligations that are likely to arise for follow-up
action. If the preparatory work of this kind is not Sound environmental management will lead to
done thoroughly, then much time is wasted after the changes affecting every aspect of the business and the
audit report is delivered and with the passing of time basic principles of change management will be
the momentum dissipates and other priorities take helpful. Part of the process must be effective
precedence. Sometimes the report is filed with no communication both internally and externally.
action and the whole initiative remains an expensive Keeping people informed so that they understand
mistake. Getting value from an environmental audit what is happening and why is a vital part of the
depends on building readiness before the audit is process. If this is done well, then every member of
started. staff becomes an ambassador for the company and its
increasingly responsible attitude towards the en-
vironment, and should be able to describe how it
Another self-evident starting point is to locate
relates to his/her job.
responsibility for the environment with a named
executive. This can work well, it can have success in
certain areas, or be futile depending again on how it An issue that is often overlooked or given inade-
is done. If the person is insufficiently senior then the quate attention is the question of how an individual
degree of importance will be assessed from that regards a new responsibility and the way in which
individual’s standing, especially in hierarchical or- performance will affect his/her tangible and intang-
ganizations. The success of a specialist will be ible rewards. This is particularly important when an
influenced by the way in which other specialists are individual has, for example, some environmental
regarded and the reputation of the department in responsibility added to an existing job. That
which the new appointee is located. A general individual’s immediate boss may not have been
management appointment of a top executive who is involved in the appointment and could easily ignore
already widely respected will give clear signals to all aspects of the environmental responsibility or
the organization that the appointment is important even penalize him/her for giving it undue attention.
and has strategic significance. Even when the whole job is an environmental
responsibility the criteria of performance may be
Combining an environmental appointment with vague unless there is specific attention given to it.
Public Affairs carries an immediate connotation that The integration of new responsibilities into the
the environmental responsibility is primarily a reward structure is seldom given sufficient attention.
question of protecting the corporate image, rather
than influencing the future direction of the business. Davis, who wrote his book from the standpoint of a
Chief Executive, begins with a discussion of
A board level appointment does not necessarily sustainable development and follows on to visions
mean that the environmental perspective and and values. Sooner or later any Chief Executive
initiatives will be appropriate to the situation. Every wishing his or her organization to become greener
director soon learns that it is not easy to influence will need to face this issue. Without the underpin-
board colleagues, all of whom have their own nings of appropriate, shared values and beliefs
particular responsibilities and interests which they sustainable development will have a transient
try to optimize through the way in which the board existence. If these values are specific to an individual
functions. Some degree of collective responsibility then they will disappear when that individual moves
helps to ensure that the whole organization recog- on. As with any other aspect of organization culture
nizes the importance of sound environmental it is important that values are shared and that a
management and all that that implies for strategic significant degree of common understanding is
management of the business. It is worth giving some generated. This will be part of the implementation
time at a board meeting to consider the options, to programme for any organization that takes this issue
build understanding and gain a degree of commit- seriously and will contribute to making the business
ment to any new appointment. This will help to into a different, sustainable business for a future that
ensure that the environmental issue is an integral will inevitably be different. The actual values that
part of business strategy rather than a temporary will be appropriate for a particular organization and
adjunct. its situation will need to be worked out by key
people within that company. It cannot be done by
Some organizations have had success with environ- consultants alone but good, facilitating help and
mental committees so that inter-departmental issues support can be invaluable. One example of some
can be addressed. This can work well but as with all values of a hypothetical company are given in
committees the terms of reference, composition, Table 8.
58 Long Range Planning Vol. 25 June 1992

Table 8. Values and beliefs for a sustainable effect. That is not a successful way to change
business attitudes as many have found to their cost. Culture
change comes about through involvement and
Q Social and environmental results are as important as
experiencing what it is like to live and work in
economic
accordance with the culture that is desired for the
Q The essential purpose of business is to meet some future health of the business.
specific aspect of market demand

Q The costs of doing business and staying in business There is now more work being done to identify
both need to be managed well in the interests of all
materials that are suitable for management develop-
stakeholders
ment from among the thousands of educational aids
Q The company should behave in every way as a good that exist for education in general. New materials
citizen and accept that it does not own all its
are also being produced in response to demand. One
resources but is their custodian for future generations
organization that is cataloguing these materials is
ti Sound environmental management is not an option
The Conservation Trust,14 with the intention of
but a necessity
making this information available in an accessible
A New business development needs to take account of form. Amongst the materials that are already
the environment from the design stage
available are self-administered environmental
Q Environmental management should be the audits, business games, outdoor activities, videos,
responsibility of staff at all levels as an integral part
slides, audio tapes, short courses (The Brunel
of their job
Management Programme and the British Institute
Q Environmental performance should be built into the of Management15 run courses on a variety of
reward structure of the organization
environmental topics), audio-visual learning aids,
* Product and process responsibility should be from consulting services from individuals and organiza-
cradle to the grave
tions and some interesting developments from IBM
b Agreed values and beliefs should be used as the in the form of a multi-media package. This last can
guiding principles for conducting all business be adapted by any organization to describe its own
N.B. These are incomplete statements for a hypothetical environmental policy to their staff or the public or
organization. both, and has been used in interesting ways to gain
understanding of environmental problems.

The challenge for Chief Executives is to make the

right appointment at the right level to head up
Management and Staff Development Environmental Affairs. The challenge for Personnel
Because environmental responsibility will permeate Directors, Training Managers and management
the whole organization, it is necessary to plan how it development specialists is to work alongside the top
will be taken up in terms of management develop- people to interpret the strategic decisions into
ment and the follow through to staff at all levels. appropriate development for managers and staff at
There is little doubt that for those companies which all levels.
take this issue seriously basic attitudes and beliefs
will alter and there will be a very significant effect
on the organization’s culture. Several organizations
have embarked on culture change programmes for
References
various reasons, not necessarily environmental, and
know that this cannot be taken lightly nor achieved (1) Business Council for Sustainable Development, World Trade
Centre, 3rd Floor, 10 Rue de L’Aeroport, CH-1215 Geneva 15
quickly. A carefully planned programme is essential (Tel: 010 41 22 788 32 02).
which involves staff at all levels but must be led from
the top, by example. This will be equally true of (2) Mr John Collins, Environmental Protection and Industry Depart-
ment of the Environment, 43 Marsham Street, London
sound environmental management. SW1 P 3PY (Tel: 071 276 3000).

(3) Colin Hutchinson, BusinessandtheEnvironmenta/chal/ange:A

There are few examples in the U.K. where the Guide for Managers, The Conservation Trust (ISBN O-9071 53-
environment agenda for management development 38-0), George Palmer Site, Northumberland Avenue, Reading,
Berkshire RG2 7PW (Tel: 0734 868464).
is being addressed. In Sweden, however, Volvo
Strategic Overview, The Centre
have taken all their managers through a three day (4) industry and the Environment:A
for Exploitation of Science and Technology (CEST), 5 Berners
programme, Perstorp Ferguson Ltd have under- Road, London Nl OPW (Tel: 071 354 9942).
taken a comprehensive programme and a few other
(5) Norman Myers, Gaia At/as ofFuture Worlds, Robertson McCarta
companies have introduced short sessions into their (ISBN l-85365-128-1). p. 162 (1990).
management programmes or run discrete events for
(6) Barry Commoner, Making Peace With the Planet, Gollancz
small numbers of their managers. It is inevitable that (ISBN 0-575-04903-O). p. 173 (1990).
this aspect of management development will in-
(7) Saferworld, 82 Colston Street, Bristol BSl 588 (Tel: 0272
crease as the momentum for environmental change 276435).
develops and more companies wish all their staff to
(6) Our Common Future, World Commission on Environment and
become familiar with environmental issues. If this is Development, Oxford University Press (ISBN O-l 9-282080-X)
done in a didactic way it is unlikely to have any real (1987).
 The Challenge for The Chief Executive 59

(9) John Davis, Greening Business, Blackwell (ISBN 0-631- (15) Brunel Management Programme, Brunel University, Uxbridge,
17202-5) (1991). Middlesex UB8 3PH (Tel: 0895 56461). British Institute of
Management, Management House, Cottmgham Road, Corby,
(10) Your Business and the Environment-a D-l-Y Review for Northants NN17 1TT (Tel: 0536 204222).
Companies, prepared by Coopers & Lybrand Deloitte and
published bv Business in the Environment (ISBN l-85271 -193-
0,. Additional Readings:
(11) Lester Brown eta/., State of the World 1990, Unwin Paperbacks Frances Cairncross, Costing the Earth, Business Books, The Economis
(ISBN 0 04 440711 4) (1991). Books (ISBN o-09-174918-2) (1991).

(12) Hilary F. French, C/earing the AirtA GlobalAgenda, Worldwatch John Elkington, The Green Business Guide, Victor Gollancz (ISBN
Institute, Worldwatch Paper 94, January (1990). o-575-04675-9) (1991).

(13) Lester Brown, A sustainable future, Resurgence, 8-l 3, July/Au- Ervin Laszlo, The Inner Limits of Mankind, Oneworld (ISBN l-851 68-
gust (1991). 009-8) (1989.

(14) The Conservation Trust, George Palmer Site, Northumberland David Pearce et al., Blueprint for a Green Economy, Earthscan
Avenue, Reading, Berks RG2 7PW (Tel: 0734 868442). Publications (ISBN l-85383-066-6) (1990).