Reprint No. 10.

s/2-109
ISSN 1066 7938

Corporate

Environmental
Volume

Strategy
1. .IsS"Lle5 .( I\la)! 2003) 0,

International Journal of Corporate Sustainability

Contents

Don C. Smith

Editorial Mid-Term Assessment: Environmental Policy

Bush Administration

1-9

Adisa Azapdgic Siobodan Perdan Sandra Rothenberg Monica Becker Richard Steckel

Managing Corporate Social Responsibility: Translating Theory into Business Practice Pictorial Offset Corporation: Simultaneous ISO 902 and 14001Registration
Commentary

2-97

2-19

Social and Cultural Trends: The Emotional Logic of Consumer Activity Gregory Wetstone
Commentary
Corporate Responsibility Environmental Policies and Bush Administration

4-17

4-21

Michael R. Jones

Conference
Launch

Review
EMS Standard (BS 855:2003)

of New British

5-9
7-21

In the New:;

May 2003

People in the News

7-24 8-1
5
10-1

Calendar
Index

June -December

2003

Index for Volume 10, Issues 1 through

Volume 10, Issue 5 -Contents Corporate Environmental Strategy: International Journal of Corporate Sustainability Vol. 10, Issue 5 (May 2003) ISSN 1066-7938 C>2003 Netlogex, llC. All rights reserved.

Editors
Don C, Slnith; J.P.
,. Editor c ~ In .' ChIef

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Simultaneous

www.corporate-env-strategy.com

Sandra Rothenberg is currendy an assistant professor at Rochester Institute of Technology's (RIT) College of Businessand a research associatefor the SloanPrinting Industry Center at RIT. Her researchfocuses on environmental management within the automobile and printing industries. She previouslyworked as a researchassociatefor the Harvard Global Environmental AssessmentProgram, Massachusetts Institute of Technology (MIT) Consortium on Environmental Challenges,MIT International Motor Vehicle Program, U.S. Office of Technology Assessment,and MIT Technology, Business and Environment program. Monica Becker is currendy consulting to the Printing Industry Center at the RochesterInstitute of Technology (RIT). For the past 15 years Ms. Becker has been engagedin industrial pollution prevention research and consulting with a variety of organizationsincluding Tellus Insitute, Massachusetts Institute of

Technology, MassachusettsToxics Use Reduction Institute, and the Nati<j>nal Center for Remanufacturing and Resourc~ Recovery at

RIT.
Corresponding Author: Sandra Rothenburg, Rochester
Institute of Technology, College of Business, 10B Lomb Memorial Drive, Rochester, NY 14623, Tel: 716-475-6032,
Fax: 716-475-5989, Email: slrbbu@rit.edu.

Introduction "Last year the average printer in this country saw a drop in rev~nue of between 15% to 20%; we had ~% growth. We have found a way to rJn a quality process, at the lowest cost, and create a profitable business." Lester Samuels, Pictorial Of{set

Sandra Rothenberg and Monica Becker Corporate Environmental Strategy: International Journal of Corporate Sustainability Vol. 10, Issue 5 (May 2003) ISSN 1066-7938 @ 2003 NetLogex, LLC. All rights reserved.

2-109

Simultaneous ISO gO02 and 14001 Registration

!

ISO 14001

s a continuation of the ISO 9000 series of quality standards, the ISO

14000 serieswas developed to incorporate environmental aspectsinto operations and product standards. In September 1996, the international committee fInalized the ISO 14001 standards for environmental management systems Similar to the Quality ManI. agement System (QMS) implemented under ISO 90012,ISO 14001 requires implementation of an Environmental Management System (EMS) as set forth in the ISO 14001 specification. The ISO 14001 standard specifies requirements for establishingan environmental policy, determining environmental aspects and impacts, planning environmental objectives and measurabletargets,implementation and operation of programs, checking, corrective action, and management review. As with ISO 9001, the key to a successful ISO 14001 EMS is having documentedprocedures that are implemented and maintained such that environmental goals are achieved. ISO 14001 standards include a requirement to document, and make available to the public, an environmental policy. In addition, procedures must be establishedfor ongoing review of the environmental aspectsand impacts of products, activities, and services, consistent with the policy. Programs must then be set in place to implement these activities. In similar fashion to the QMS, internal audits of the EMS must be conducted routinely to ensure that non-conformances to the system are identified and addressed. Top management must be involved in the crafting of the EMS. For many companies, conformance to ISO 14001 may become a contractual requirement of customers in both the U.S. and the Euro1 ISO 14001:1996 Environmental Management Systems-Full-text version availableat:

pean Community (EC). Because the ISO 14000seriesis a continuation o{ the ISO 9000 Product Quality sta:ndard series,it is expected that lSO 14000 will eventUallybecome a requirement for attaining ISp 9000 recertification. Thus, many companies are setting goals to establish enviro*mental managementsystemsthat conform ito ISO 14001 guidelines in order to remain <::ompetitive in the global marketplace.As des(:ribed by one researcher, "although the [Environmental Protection Agency] can encourage adoption of the standards,the real driver of widespread adoption is the global marketp!ace.As more international companiesregisterto ISO 14001 and require ISO 14001 certific~tion as a precondition of doing business,U~S.companies are going to have no choice but to get on the ISO 14001 bandwagon." 3 Within the printing industry, while the 'level of ISO 9000 certification is increasing,very few printers have made the move to adopt ISO 14000. One of the major reasonsis the large number of small and medium sized ft.rms in the industry, for whom certificalion would be a significant strain on resources;This is especially true for those plants that have already
devoted resources to 9000 i$plementation

and are hesitant to restart the iprocess. One printer, Pictorial Offset, realized that one way to reduce the costs of ISO 14000 certifications was to simultaneously s4ek 9000 and 14000 certification. Despite the lack of institUtional supports to implement ,dualcertification, the f1rm went aheadwith its plan. This a:rticle traces the compan;y'sincreasing sophistication in managing its ~nvironmental impacts, its decision to simulta:neously adopt ISO 9000 and 14000, and the unexpected results that it hasachieved.

http:/ /www.iso.ch/iso/en/prods-services/ISOstore/
store.html. 2 Full-text version availableat: http:/ /'-\'W\v.iso.ch/ iso/ en/ prods-services/ISOstore/ store.html .
2-110

3 Murray, Paula C., "Inching towattd environmental regulatory reform-ISO 14000: Much iado about nothing or a reinvention tool?" Americatt Business Law Journal, 37 (1999)pp. 35-71.

Sandra Rothenberg and Monica Becker Corporate Environmental Strategy: International Journal of Corporate Sustainability Vol. 10, Issue 5 (May 2003) ISSN1066-7938@ 2003 NetLogex, LLC.All rights reserved.

..Simultaneous

ISO 9002 and 14001 Registration -~~~ ~ =-.

The Growth

of a Printing

Company

Pictorial Offset Corporation, located in Carlstadt, New Jersey,is a graphic arts organization specializing in both sheet fed and web offset lithographic printing. This familyowned and operated company traces its history back to 1938. Pictorial was fIrst run and owned by Harry Samuels. The company was passedon to his son Jay Samuelsin 1963. In 1980 there was a drastic change in the company. After a move to New Jersey,the company was on the edge of bankruptcy, and Jay died in a car accident in April 1980. Jay's sons, Donald (Don), Gary and Lester Samuels, took over the managementof the fIrm and started to grow the company. The three brothers each took over a specific area of management.Gary Samuelsis in charge of manufacturing and distribution. Don Samuels is responsible for salesand marketing. Lester Samuels is in charge of financial and environmental management. Each brother bring~ a unique expertise and personality to the business and it is through the well-coordinated efforts of the three brothers, and the employeesat Pictorial Offset, that the company has achievedeconomic success and improved environmental performance. Today, the company's275 employees generate $50 million in sales annually. The 197,000 square foot facility operatesaround the clock producing printed corporate communications, advertising, direct mail, and sales collateral and promotional material. Pictorial counts among its customersseverallarge automotive, communications, cosmetic, and pharmaceutical corporations. Pictorial also works with severallarge advertisingagencies. Their typical print job is relatively large, averagingbetween $25,000to $35,000,with some projects ranging into the millions. Pictorial prides itself on stayingat the cuttingedge of new technologies in the printing industry. By the end of the year 2000, Pictorial completed its transition to full digital com-

puter-to-plate technology. By the beginning of 2001, the company installed its second Lotem automated plate setter, enabling last minute changes in press scheduling, paper selection,ink combinations and other settings. Developing Awareness Environmental

Throughout its history, Pictorial was proactive environmentally, to the extent that they were concerned about complying with applicable regulationsor, in some cases,e~ceedingthem. They also attended to non-re~ated areas of environmental performance. Fdr example,the company started recycling much earlier than most. As a small printer in Manhattan, Pictorial utilized the services of a typical wastepaper recycler. When it moved tQNew Jerseyin 1979, the company implemented a sophisticated recycling process. The systeminvolved baling and shipping wastepapet direcrly from the plant to a mill. In the late 1970's to early 1980's,this was atypical for a printer of their size. Another area of environmental management that Pictorial tackled was the use of silver in fi1rrtprocessing. There were several.key events that led all three brothers to support a more aggressive environmental managementprogram. First, one of the brothers, Don Samuels,was motivated by a television program in the early 1980s. He recalls this pivotal event in this way: "I sawa program on [the Ptiblic BroadcastingSystem] about a plant in Braintree, Massachusetts....Tlile Maintenance Department was washing machine parts with trichloroethylene and then tossing [the spent] tri~hloroethylene out in the backyard. This was not done maliciously, but it ended up polluting local wells. I said 'what happened in Braintree could happen to us.' And that was the beginning of, I'll call it, an environmentalconsciousness."

Sandra Rothenberg and Monica Becker Corporate Environmental Strategy: International Journal of Corporate Sustainability Vol. 10, Issue S (May 2003) ISSN 1066-7938 @ 2003 NetLogex, LLC. All rights reserved.

2-111

Simultaneous

ISO 9002 and 14001 Registration ---I

These environmental concerns struck a chord with Lester Samuels, who held strong memories &om childhood, when he would go to the beach everydayand see somethingwashed up on-shore, preventing him from going in the water. He wanted to try to change that and leave a cleanerearth for his grandchildrenand greatgrandchildren. Don and Lester Samuels started to make changes at Pictorial in seeminglysmall steps. Surprisingly,when they tried to institute a new wastewatermanagementpolicy. they got their first taste of resistance to change. Don Samuels explained: "No one at Pictorial understood environmental issues at that time. I think up until maybe the late 70's [everyone thought that} the world was one giant sewer and everything would just disappear." As managementbeganto take a closer look at chemical use and environmental management in the flrm, they started to realize that real changewould require more than simply altering a few housekeepingpractices. In order to take control of the situation, Don Samuels took stock of all the chemicalsbeing used in the firm. He realized that every pressman,in order to make the ink work better, was runningeach job as "his own little mad chemistry factory," adding their favorite additives. Moreover, there was no scientific understanding of why different materials were being

cost Pictorial $30,000,a large sum of money in those days. This incident added an econoriUc imperative to the environmental one. Refl~cting on their experience with incremental, ad hoc corrections to operating practices, Gary Samuels realiZedthat fundamental changewas needed. He announced that every cheriUcal in the plant that was used as an ink a~ditive was to be collected and properly disposed of. As expected,there was si~ficant resistancefrom the press operators who insi$ted that the cheriUcals were critical to their operation. Don Samuels explained why this type of problem was particularly troub~esometo the printing industry: "The mad chemistry approach comes from the craft not the techtl1ology side of printing. The operators kriow if they use a certain additive it makes the ink work a little bit better, another has an effect of a different type. By the time they finished, they have changed the chemistry of the ink and its performance in the drying processand [created] an unknown operating situatJion. Each press operator had their own chemistry sets that they had accumUlated over time, and insisted were necessary doto ing their job." Despite the protests, Gary Samuels persevered. In then end, Pictorial di~posedof between 50 and 100 different ink additives. This experienceprecipitated a larger effort to improve operational efficiency, for both economic and environmental reasQns. Pictorial conducted a systematicreview of their operations, looking for opportunities to reduce wasteand increaseefficiency. Don and Lester Samuels carried out a comprehensive waste audit. As a result of this effort, Pictorial found that there was a si~ficant amount of wrapping material coming in with \:he paper, all going to landfill. One of the major constituents of this waste stream was the steel strapping on skids of paper. They reduced this

used.
In Al;lgust 1990, a pivotal event spurred Don and Gary Samuelson to a more drastic course of action. A large print job was scrapped because an employeehad added too much of a particUlar high VOC4 chemical, "Gold Magic," to the ink formulation. This mistake

4 VOC, or Volatile Organic Compounds, are defined as any organic compound that reacts with nitrogen oxides (NOx), in the presenceof sunlight, to form ozone. Ozone in the lower atmosphere acts as a lung irritant.
2-112

Sandra Rothenberg and Monica Becker Corporate Environmental Strategy: International Journal of Corporate Sustainability Vol. 10, Issue 5 (May 2003) ISSN 1066-7938 @ 2003 NetLogex, LLC. All rights reserved.

Simultaneous

ISO 9002 and 14001 Registration -T~

waste and the cost of disposing it by purchasing a machine that chipped up the steel straps and dumped them into 55-gallon drums. While the chipped steelwas recycled,it was by no means an economic windfall, offering at best a breakevenreturn.
Formalizing Environmental Management: Adopting ISO

Changes in Culture and Practice One of the f1rstchangesas a J!esultof implementing ISO 14001 was the formulation of a formal environmental policy. Prior to this, the top managerstried to estaplish a cultural norm that was summed up by tbe phrase "you have to work safe and you "have to work clean." But, the ISO process'motivated the company to more formally articulate their environment~ values and management goals (SeeFigure 1).

Standards
Ih 1997, Pictorial was exploring the possibility of adopting ISO 90025standards.One of the ISO consulting flrms told Pictorial about the new 14001 standard, which they were not aware of at the time. Gary Samuelswas the driver behind adoption of the 9002 standard and instrumental in pursuing ISO 14001.Gary Samuelsarguedto his brothers that if Pictorial was going to adopt 9002, and build a new operational system, why start the process again for 14001. He su,ggested that the company integrate the two systems and adopt them both at one time. This was a rather novel idea at that time and the consultants informed tHem that no one had ever done that before. Gary Samuels said "Well, we're going to be the fIrst ones in the world." And they were; the companyreceived dual r~gistration in December 1998. . Being the fIrst to simultaneouslyadopt 9002 and 14001 was easier said than done. The most difficult part was that the registration companieshad not yet attempted double registration. Pictorial approachedfive registrars to seeif it could be done. Only one registrar was positive about completing the double registration. Another said that they would think about it and the rest said that they could not do it. A major obstacle was that most registrars train their auditors to specializein either 14000 or 9000, but not both. Eventually, they found a registrarwilling to use two lead auditors simultaneously,one for eachstandard.
5 This standard is now obsolete and was replaced

ISO standardsalso had a significant impact on the types of performance measuresthat Pictorial tracked. Under ISO 14001; a plant needs to show how their performance compares to operational goals that they ha~e set. Therefore, starting in 1997, the comlJ>any began expending a great deal of effort to collect and make available performance information and to improve the accuracyof the information. For each process, they investigated operational inconsistencies and soUFces waste, of starting with the largest problcms first. As explained by Lester Samuels: "We used to 'look' at a press and say it had excessive waste. Now we measure it. We set standardsthat our press crew has agreed to so that they can accomplish their task and we can give them feedback based on the goals that they had a hand in setting.. Someipeoplewill never buy into it, but the fact is it gives us, as the company grows, !operational

by ISO 9001 :2000.

Simultaneous ISO 9002 and 14001 Registration -

conformances that emerge from the ISO audits, it is easyfor the progr;am lose its effecto tiveness.As explained by Pictorial's ISO manager, "You just have to make up your mind that if you do it you will do it with no exceptions. The second you bend, your employees understand that the dollar just overrode the ethics."

Conclusions
ictorial Offset, through the commitment of strong le~ders~p,.wasable to approachISO certIfication m what was, at that time, a unique way. While there were no institutional structures in place within the certification community to jointly implement the 9000 and 14000 standards,the leadership saw' that it was clearly in the best interest of the fIrm to push the existing institutions to develop these capabilities. By Jointly implementing the two programs, the fIrm was also in a position to compare the relative influence of the two programs. To their surprise, they found that it was the adoption of ISO 14000, somewhat of a rarity in the printing industry and more of an a.fterthoughtto the decision to adopt ISO 9000, which motivated the greatest improvements in not only environmental performance, but also operationalefficiency, cost reduction, and evenquality. Pictorial's experience points out that the original intent of ISO 9000 was to guarantee the effectiveness,but not necessarily effithe cien~y,of an organization. A major objective of the ISO 9001:2000 revision was to address this lack of attention to process efficiency. While Pictorial overcame this shortcoming through its implementation of 14000, fIrms can now fmd guidance in the new ISO 9004:2000 Quality Management Systems Guidelines for Performance Improvement6. While explicitly designednot to be a certifica6 ISO 9004:2000 Quality Management Systems, Guidelines for Performance Improvements. Full-text version available at: http://www.iso.ch/iso/en/prodsservices/ISOstorel storc.html.
2-116

tion standard, 9004 is a set of guiding quality managementprinciples intended to assist an organizationin continual improivementaimed at increasing efficiencies throuf?;houtthe organization. It is not clear, hdwever, in the short term how much of an effect 9004:2000 will have. Many fIrms are co~centrating on implementing the new requirem~ntsunder the revised ISO 9001:2000. Firms Jinust recerbe tified under the new standard !by December 15,2003. As a fmal note, Pictorial and o~er firms that have integrated their QMSs and EMSs will be able to take advantage of a newly released common 9000/14000 auditing standard-ISO 19011. This new standardrepl~cesthe existing ISO 10011 and ISO 14010/14011/14012 documents. Acknowledgements The authors would like to thank Pictorial Offset Corporation for generously agreeing to share their experiencesand insights on ISO adoption, as well as the Printing ~ndustryCenter at RochesterInstitute of Technology and the Alfred P. Sloan Foundation ~ndustryCenters project for supporting this research.

Sandra Rothenberg and Monica Becker Corporate Environmental Strategy: International Journal of Corporate Sustainability Vol. 10, Issue 5 (May 2003) ISSN 1066-7938 @ 2003 NetLogex, LLC. All rights reserved.

.
-International..Journal of Corporate~Sustainabilitv
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Achieving corporate social responsibilityis one of the most vexing, yet most promising, issues ever to face the businesssector. On the one hand, the importance of traditional busin~ssimperatives such as revenue and profit growth are universallyacceptedcomponents of corporat~ strategy. On the other, stakeholdersas well the public are increasinglydemandingmore attention blegiven to new businessimperatives suchas corporate socialresponsibility. In these challenging,and yet opportune times, Coporate Environmental Strateo: International Journalof CoporateSustainabtlity (CES Journa~offers credible, reliable, and timely guidance in the form of thought-provoking editorials, commentaries, articles, and case studies on how corporations can achieve corporate sustainability. Beginning its 10th year of publication, CES Journalis the pre~ eminent international information source consideringcorporate sustainability. Don't you want CBS Journalworking for you? CESJournal is published in a loose-leafformat (81J2 inches-letter size). The subscriptionprice xll includes a sturdy three-ring, tabbed binder in which to hold the 10 issues which are published monthly except in August and December. For subscription information call +1 303 316-8435, or email sales@corporate-env-strategy.com., visit the CBSJournalweb site at: or www.corporate-env-strategy.com

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