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April 30, 2007

Innovation Driven By Challenge

In the past, innovation has been driven by need. Need is still a major driver of innovation today; except that the need for innovation is no longer situational and isolated but is instead all encompassing and omnipresent.

Below is a sample of how need has created challenge markers that make innovation not only awe inspiring but also accountable. Guidelines like below are being placed before every organization on the planet as guidelines for their own success - as well as humanity's 'success'.

Take the test. How does your company compare?

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From SustainAbility

The Global Compact Challenge (download pdf)

What is ‘The Global Compact Challenge’?

The Global Compact Challenge is a tool aimed at stimulating Global Compact participants to scrutinize their approach to corporate responsibility (CR). The focus of the tool is not on the UNGC principles themselves, but on the need for participant companies to mobilise wider improvements in performance across industry sectors, along value chains and through links with public policy. In this way, the challenge represents a companion piece to the UNGC publication Raising the Bar.

The original challenge is set out in the report Gearing Up, which was prepared by SustainAbility at the request of the Global Compact Office. This report concluded that while CR initiatives have the potential to bring about positive change, this will only be realised if such initiatives focus on achieving critical mass across all industry sectors, and are connected to wider public policy efforts that address the root causes of the problems. For more information on Gearing Up including free copies of the report please see www.sustainability.com/publications/gearing-up.1


The Corporate Responsibility Gearbox

To help companies review their approach to corporate responsibility generally, the report sets out a ‘CR Gearbox’ that describes the different approaches or ‘gears’ that companies can take to CR.

The report concludes that most companies should be operating in the higher gears.

1st Gear: Comply
2nd Gear: Volunteer
3rd Gear: Partner
4th Gear: Integrate
5th Gear: Re-engineer


1st Gear: Comply

Companies operating in first gear do not generally recognize any responsibility to stakeholders beyond making a profit. For companies at this stage:

􀂃 PR and legal departments often play a major, defensive role.

􀂃 Stakeholder engagement is seen primarily as philanthropy.

􀂃 Relations with government are seen as primarily a compliance issue.

􀂃 No business case is perceived for going beyond compliance.

􀂃 Key drivers are NGOs, the media and government.


2nd Gear: Volunteer

In second gear, companies begin to move ‘beyond compliance’, but the CR emphasis is on:

􀂃 Measuring and managing direct operational impacts – though primarily for PR benefit.

􀂃 ‘Communicating to’ rather than ‘engaging with’ stakeholders.

􀂃 Participating in the development and trialling of voluntary industry standards.

􀂃 Risk management and eco-efficiency as key elements of the business case.

􀂃 Responding to peer pressure as a key driver.


3rd Gear: Partner

In third gear, CR is increasingly something that companies can only do well in partnership with other actors such as NGOs, suppliers, customers and industry peers.

1 SustainAbility is grateful for the financial support the project received from Novartis, Pfizer, SAP, DaimlerChrysler and Novo Nordisk.

In this gear:

􀂃 CR experts take centre stage, with CEOs ‘wheeled out’ for major events.

􀂃 Stakeholder engagement evolves into a two-way dialog with wider society.

􀂃 There are close relationships with governments, for example through tri-sector or public-private partnerships.

􀂃 The business case focuses on proactive risk management and reputation building.

􀂃 Key drivers are NGOs, some parts of government and leading businesses, with much of the media (because there is less drama) beginning to lose interest.


4th Gear: Integrate

In fourth gear CR issues are seen as strategic, requiring integrated responses across companies and value chains, but prioritisation also becomes increasingly important.

􀂃 Top management and boards are actively involved.

􀂃 The company engages civil society and governments in ‘progressive alliances’ working towards common objectives.

􀂃 The focus is on embedding CR goals in all business processes.

􀂃 The business case is strategic as businesses begin to connect long-term corporate objectives with wider societal challenges.

􀂃 The drivers are many and various, including from the financial sector, but companies pushing the envelope still often find that the drivers are inadequate in key areas.


5th Gear: Re-engineer

In fifth gear the focus shifts to systemic change, addressing future markets, market frameworks and business models.

􀂃 New players come to the table, including ‘change agents’ like inventors, entrepreneurs, venture capitalists and investment bankers.

􀂃 Progressive alliances target system change, focusing on governance and markets.

􀂃 CR moves beyond products or services to re-examine business models.

􀂃 The business case maybe negative with a ‘first mover disadvantage’ in the short term.

􀂃 There are many drivers of change, including growing financial sector activity, but governments and governance systems once again must play a central role.


And Reverse…

Many companies, while operating primarily in forward gears, keep their public policy lobbying in ‘reverse’ – hampering progress on key social and environmental issues and preventing the development of the levels of trust necessary to develop genuinely shared solutions.


Take the Challenge

The following questions are intended to help companies assess whether their CR
programmes are likely to provide foundations for long-term business success and deliver solutions to pressing social and environmental problems.

Q1 Which gear are we in today?

− Who in our company is engaged in CR, and are top executives involved?
− How do outside actors influence our decision-making around CR?
− Are we working to drive improved performance across our industry?
− Are different parts of our organisation in different gears?
− If so, why, and with what potential implications?


Q2 Where do we want to be by the end of 2007?

− Which gear do we need/want to be in by 2007?
− Who will need to be involved internally and externally?
− What are the main barriers to change, and how can we overcome them?
− How can we help co-evolve wider governance frameworks to address key issues?


Q3 How can we achieve scale?
− Who in our organisation thinks in terms of ‘scalability’ and system-level change?
− What changes externally are needed to ensure real progress on our CR priorities?
− Are there ‘progressive alliances’ involving government and civil society to tap in to?

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For more information on building Corporate Responsibility into your organization, see SustainAbility's article on "Scaling up corporate responsibility to address global challenges"

April 29, 2007

Innovation and Religion

There are many factors that underlie innovative action. Most come from underlying factors that are based in prevaiding cultural belief systems; yes .. more specifically how you believe in gGod. What is gGod to you, and how does the way you bring design into the world reflect your belief in that higher power? You're right, this is not a short essay. For now, I urge you to consider how your innovative nature relates to humanity's greater "Nature" and its understanding of who we think gGod is.

Case and point below, which is a reference to something that I have been waiting to come for a long time ... HA!; some may even call it the 'second' coming! The most powerful religious forces in the world - the Catholic Church - is announcing its position on 'green'. They are one of MANY religious systems that are stepping forward to announce there position on the Planet's wellbeing; in the name of their gGod. Do you think all this will change the way you innovate? You can bet your belief in your gGod that it certainly will. As John Luke would say, "make it so".

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PROTECT GOD'S CREATION: VATICAN ISSUES NEW GREEN MESSAGE FOR WORLD'S CATHOLICS
By John Vidal and Tom Kington in Rome
The Guardian
April 27, 2007

The Vatican yesterday added its voice to a rising chorus of warnings from churches around the world that climate change and abuse of the environment is against God's will, and that the one billion-strong Catholic church must become far greener.

At a Vatican conference on climate change, Pope Benedict urged
bishops, scientists and politicians -- including UK environment
secretary David Miliband -- to "respect creation" while "focusing on
the needs of sustainable development".

The Pope's message follows a series of increasingly strong statements
about climate change and the environment, including a warning earlier
this year that "disregard for the environment always harms human
coexistence, and vice versa".

Observers said yesterday that the Catholic church is no longer split
between those who advocate development and those who say the
environment is the priority. Cardinal Renato Raffaele Martino, head of
the Pontifical Council of Justice and Peace, said: "For environment
. read Creation. The mastery of man over Creation must not be
despotic or senseless. Man must cultivate and safeguard God's Creation."

According to Vatican sources, the present Pope is far more engaged in
the green debate than John Paul. In the past year Benedict has spoken
strongly on the need to preserve rainforests. In the next few weeks he
visits Brazil.

"There is no longer a schism. The new interest in climate change and
the environment is not surprising really. Benedict comes out of 1960s
Germany, where environment and disarmament were major issues. It's
conceivable that his ministry could even culminate in a papal
encyclical on the environment," said one analyst. This would be the
most powerful signal to the world's Catholics about the need for
environmental awareness at every level.

The Catholic church is just one major faith group now rapidly moving
environment to the fore of its social teachings. "Climate change,
biotechnology, trade justice and pollution are all now being debated
at a far higher level by the world's major religions," said Martin
Palmer, secretary general of the Alliance of Religions and
Conservation (Arc).

In some cases the debate is dividing traditionalists from younger
congregations. In the US the diverse 50m-strong conservative
evangelical churches are increasingly at war about the human
contribution to global warming.

Many evangelical leaders say they are still not convinced that global
warming is human-induced and have argued that the collapse of the
world is inevitable and will herald the second coming of Christ.

But most younger leaders have broken ranks. About four years ago the
progressives began to argue strongly that man had a responsibility to
steward the earth. Redefining environmentalism as "creation care",
they are now lobbying President Bush and the US administration to take
global warming far more seriously.

"They are the most effective lobby," said one observer yesterday.
"They represent the conservative vote so Bush has to listen to them."

Although the World Council of Churches in Geneva has had a department
to investigate climate change since 1990, churches have come late to
the debate. "The [environment and religion] is a no-brainer, but we
are all only now realising it", said Claire Foster, environmental
policy adviser to the Church of England.

Many faiths also realise their potential to influence politicians and
financiers. A survey by US bank Citigroup found that the 11 major
faiths now embrace 85% of the world's population and are the world's
third largest group of financial investors. In the US the United
methodist church pension fund alone is worth $12bn-$15bn (£6bn-£7bn).
Total investment of US churches is nearly $70bn. Switching to ethical
investments would be hugely significant.

One Catholic priest impatient for change is Seán McDonagh, a Columban
missionary and author of books on ecology and religion. "The Catholic
church's social teaching on human rights and justice has been good,
but there has been little concern about the impact on the planet. The
church has been caught up on its emphasis on development and on
resisting population control, but if we are pro-life we should be
banging the drum now about climate change."

Backstory

Most of the world's mainstream faiths have at their core a deep
respect for nature, but over hundreds of years many have developed an
ambivalent attitude towards ecology and the pressures put on the earth
by humans. Church leaders have largely stayed silent on the extinction
of species and natural capital and have concentrated their ethical
teachings on the need to relieve human poverty. But the reality of
impending climate change and the effects it will have on the poor is
concentrating minds and causing many to fundamentally reassess their
understanding of man's place in the world.

From The Guardian

April 27, 2007

Sustainability Reporting as Anchor for Innovation

The emerging 'sustainability reporting' movement has begun and is growing in leaps and bounds. This process can be much more than a way to report how a company is doing regarding sustainability. More so, it becomes the anchoring point for defining what and how new forms of innovation witll emerge within the organization. Sound strategic methods for managing and accessing sustainability reporting information will become crucial for generating 'whole system' innovation within and across organizations.

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From GRI (Global Reporting Initiative)

Sustainability reports are produced in so many different formats – hardcopy, web based, PDFs and others – that it is sometimes hard to immediately find the data you’re looking for. Common application of the XBRL taxonomy will change this and means information can quickly and effortlessly be exchanged.

Podcasts on XBRL and Sustainability


Sustainability Reporting Resources Below -

Registers:
Sustainability Reporting Management
CSR Reporting Register

Case Study Reviews:
Case Studies

Reporting Notices/Alerts:
CSR New Reports Alert
CSR conferences & events
GRI (global reporting initiative) enewsletter

Climate and resource dependencies:
California Climate Action Registry
Extractive Industries Transparency Initiative
Oxford Health Alliance

April 24, 2007

Future Social Innovators? ... The Youth

Youth are the receivers of today's innovation. They are also the carriers of humanity's future. Engaging them is crucial to realizing deeper forms of innovation - both for ourselves and for the wellbeing of this small little planet we call Earth.

When is the last time you asked anyone under the age of 25 what innovation means to them? Michael DelPonte of Conscious Lifestyle is 'making it so'. Read up and tell the young ones in your life to check it out. Maybe they will become the next recognized "social innovator".

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By Michael Del Ponte of Conscious Lifestyle

Conscious consumerism is a growing trend that allows people like you to
vote for the environment and human rights every time you open your
wallet. But we need your help to spread the movement! That’s why
Conscious Lifestyle is offering up to $1,000 to high school and college
students with socially innovative ideas.

Conscious Lifestyle is a nonprofit organization that helps people become
socially conscious consumers. We educate people through our student
chapters and our website (consciouslifestyle.org). We are looking for
social innovators who will educate students about the importance of
conscious consumerism and make their schools more socially responsible
institutions. For example, you can:

• Start a film series and show movies like An Inconvenient Truth, Who
Killed the Electric Car?, The Future of Food, etc.
• Lead trips to local green businesses and organic farms to learn about
innovative practices in your community and conscious companies to support.
• Publish a buyer’s guide that students can carry with them when they go
shopping that includes the best stores patronize and products to buy.
• Organize an art exhibit that demonstrates how workers and the
environment can be uplifted or exploited in our globalized world.
• Lead a campaign to get organic food in your dining halls or
sweatschop-free clothing in your bookstore.

Every social innovator has his or her own idea on how to change the
world. We want to hear yours!

10 Social Innovators will be selected to lead Conscious Lifestyle
ventures and receive up to $1,000 in funding, a web page, t-shirts,
business cards, personalized support, and everything else you need to
make your venture a success.

Apply Now at http://www.consciouslifestyle.org/chapters/index.html.

Application deadline: May 11, 2007.
Contact: Michael Del Ponte
Email: mike@consciouslifestyle.org
Phone: 925-360-4149

April 18, 2007

Cultural Creatives: The New Innovators

Rebecca St. Martin has started a great network called the 'Cultural Creatives Network'. This periferal concept is now heading for business center stage - otherwise known as "Social Entreprenuership". Thank you Rebecca for helping to create the next level of innovator from a business perspective.

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Creativity & the Entrepreneurial Spirit

I doubt I've ever met an entrepreneur who wasn't also creative. Being able to envision a way out of the rat race alone requires creativity -- not to mention the creativity needed to manifest a new source of income.

But what is the relationship between the Creative Entrepreneur and the Cultural Creative Entrepreneur?

Qualities of an Entrepreneur

Robert T. Kiyosaki, author of Before You Quit Your Job, explores what qualities people need to successfully transition from employee to entrepreneur-- and from entrepreneur to business leader.

Kiyosaki's main ideas are:

1. A successful entrepreneur finds the right idea, the right people to act on the idea and the right money to leverage the project.
2. A successful entrepreneur operates from freedom and opportunity rather than security and resources.
3. The best time to answer the tough questions about starting a business is before starting the business. Some of these questions are:

a. How badly do I want my own business and why?
b. How much will I extend myself to succeed?
c. Am I afraid to fail? If so, how can I make this a strength?
d. Am I willing to educate myself on the essential components of a successful business?

An Entrepreneur Plus Cultural Creative Values = A Social Entrepreneur
Cultural Creative entrepreneurs, more often referred to as social entrepreneurs, are those entrepreneurs who focus on creating innovations and inventions that improve life for everyone.

Bill Drayton of Ashoka, an organization dedicated to supporting and promoting social entrepreneurship as well as transforming the face of social innovation, points out that social entrepreneurs "are not content just to give a fish...or to teach someone how to fish. [Social entrepreneurs] will not rest until they have revolutionized the fishing industry."

We could easily say that the social entrepreneur has a bit more to chew than the average entrepreneur: the concern for people, planet and profit.

And yet social entrepreneurs have taken a step in a new direction -- from the non-profit and charitable forms into the commercial sector. Now social entrepreneurs are realizing that it's okay -- nay, preferable to capitalize on their good works.

* Profit is one characteristic of a healthy organization because it is the result of
* Profit creates an obvious incentive to work and produce.
* The commercial sector has more flexibility and agility than the non-profit sector.
* Jerr Boschee notes that: "Living from year to year does not ensure the future, and that is the moment when [founders] begin migrating from innovation to entrepreneurship." (Batstone)
* Donald Trump believes that charity creates a culture of entitlement.
* Robert Harrington: "If you want to help poor people of the world, step one is to make sure you're not one of them."
* Molly Gordon: "When we keep our businesses on starvation diets, they present famished faces to the world."


So what's the problem with non-profit?

Paraphrasing Mathew Richter, non-profit creator:

* Because there are so many non-profits, there's far less money for individual nonprofits now than there was 30 years ago.
* The government requires quantified results vs. qualified results -- prioritizing performance over mission. And this means lots of paperwork.
* The nonprofit structure hampers nonprofits' ability to compete with for-profits in the commercial realm. A nonprofit has the same opportunity as a for-profit, but because a non-profit isn't allowed to capitalize, they have to grow the business through programs and fundraising. By the time this happens, the opportunity has passed.

Regina Herzlinger says that neither nonprofits nor government are to be trusted. She writes that "they lack the three basic accountability measures that ensure effective and efficient business operation: the self-interest of owners, competition, and [because of the "decision by committee" structure] the ultimate bottom-line measure of accountability." Everyone and no one is accountable

The 'tyranny' of a board of directors is at the crux of the problem of whether the nonprofit structure works for an organization," continues consultant Claudia Bach.


Share Your Wisdom

* How did you start your business?
* What internal resources , or qualities, made it possible for you to make it a reality?
* What advice would you give other budding Cultural Creative / social entrepreneurs?
* What legal status (for-profit or non-profit) is your business and why did you choose that status?

Subject Matter: business wisdom, small business, entrepreneurs, entrepreneur, big business, courage, starting a business, business startup, business start-up, micro business, book report, book review, book summary, book synopsis, book abstract, Robert T. Kiyosaki, Robert Kiyosaki, Rich Dad Poor Dad, Before You Quit Your Job

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Take a look at Rebecca's Cultural Creatives website, sign up for the C.C. network, or contact her.

April 17, 2007

A Call For Innovation: The Failure of Technology

Innovation carries many assumptions. All of us carry an underlying set of beliefs. For example: We often assume that because we can make it and it holds high potential for monetary profit that someonen will make it. Why is this usually the case? The idea of technical innovation being left unmonitored at the design stage can carry dangerous results without necessary check systems.

I propose that we use a cross-over model for creating and assessing innovation: 1-social innovation, 2-organizational innovation, and 3-technical innovation. Each carries their own weight in terms of being able to create cool stuff - to innovate. However, when actively used and considered together at the same time during an innovation process, the triad relationship can help to monitor each other's outcomes by helping the core stakeholders of the innovation to make better decisions. Otherwise, to release an innovative idea that has no interplay such as this, the outcome of an innovation may end up to be detrimental.

Here is an example:

The bees are dying ...
The implications of the spread are alarming. Most of the world’s crops depend on pollination by bees. Albert Einstein once said that if the bees disappeared, “man would have only four years of life left”.
Loss of brain cells in children ...
Equally alarming, blue-chip Swedish research revealed that radiation from mobile phones killed off brain cells, suggesting that today's teenagers could go senile in the prime of their lives.

This situation is serious and points directly to the idea of "Sustainable Innovation" processes. Are cell phones the culprit? Don't know yet. But it sure seems to me that something was missing during the innovation stage of this product. What might it be?

......

Here's an interesting update on this issue:

Organic Bees Are Thriving While commercial bee populations are plummeting. What's with that? Seems it may not be cell RF but pesicides. The same question arises: Something was missing during the innovation stage of pesticide products. What might it be?

April 15, 2007

What is the Color of Innovation? It's 'GREEN'

This landmark article by Thomas Friedman is on how the U.S. can retake its role as a global leader and address the three major issues facing every American today: jobs, temperature, and terrorism. Think there may be a need for new forms of innovation here? : )

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The Power of Green
By THOMAS L. FRIEDMAN (video: meet the man)
Published in New York Times: April 15, 2007

Excerpts from article ...

"... The good news is that after traveling around America this past year, looking at how we use energy and the emerging alternatives, I can report that green really has gone Main Street — thanks to the perfect storm created by 9/11, Hurricane Katrina and the Internet revolution. The first flattened the twin towers, the second flattened New Orleans and the third flattened the global economic playing field. The convergence of all three has turned many of our previous assumptions about “green” upside down in a very short period of time, making it much more compelling to many more Americans.

But here’s the bad news: While green has hit Main Street — more Americans than ever now identify themselves as greens, or what I call “Geo-Greens” to differentiate their more muscular and strategic green ideology — green has not gone very far down Main Street. It certainly has not gone anywhere near the distance required to preserve our lifestyle. The dirty little secret is that we’re fooling ourselves. We in America talk like we’re already “the greenest generation,” as the business writer Dan Pink once called it. But here’s the really inconvenient truth: We have not even begun to be serious about the costs, the effort and the scale of change that will be required to shift our country, and eventually the world, to a largely emissions-free energy infrastructure over the next 50 years. ...

Read more of this New York Times article "The Power of Green"

April 12, 2007

California: How the Golden State Went Green

From The Independent
12 April 2007 09:52

The dreams of tiny Catalina are, in many ways, the embodiment of what California as a whole hopes to achieve. While the Bush administration in Washington has preferred to kowtow to the short-term interests of the big energy companies and flirt with those who would deny that global warming poses any threat at all, the Golden State has taken matters into its own hands.

Indeed, California has, almost single-handedly, pushed the debate forward across the United States. Since 2005, when he issued his first executive order establishing emission reduction targets over the next half-century, Governor Arnold Schwarzenegger has staked much of his reputation and legacy on finding ways to roll back the effects of global warming.

From The Independent
12 April 2007 09:52

In the state where the car is king and the freeways go on forever, revolution is in the air - and the water, and the landfills. California is bravely blazing a trail in the fight against climate change. Now its Governor, Arnold Schwarzenegger, is being hailed as a global eco-hero
By Andrew Gumbel
Published: 10 April 2007

Afew weeks ago, residents of Catalina Island off the coast of southern California were invited to a screening of Al Gore's global warming documentary An Inconvenient Truth. The mayor of Avalon, Catalina's one and only town, didn't have high expectations; the island, 20 miles out from the twin ports of Los Angeles and Long Beach, is known for its conservative politics and its population of affluent weekend yachting types who don't believe in crimping their lifestyles for anything as nebulous as the future of the planet.

The event, though, was a sell-out - attracting about 400 people, or almost 12 per cent of Avalon's population - and the crowd stayed at the end for a lively question and answer session.

Anyone who has seen Gore's film can guess why it had such a powerful impact. If global warming causes the oceans to rise, Catalina will be the first place on the US West Coast to feel the effect; mostly probably, it will split into two islands at the point where its two mountain ranges meet. The Pacific would quickly swallow up Avalon's pretty semi-circular waterfront, with its pedestrian walkways, cafés, ice-cream parlours and surf and diving equipment stores, which attract hordes of weekend and holiday visitors.

Global warming is likely to hit Catalina hard even before matters reach such a dire point. An hour's ferry ride from the mainland, it is just far away enough to feel, in some ways, eerily uninvolved in the problems of civilisation at large, but also close enough to feel, in other ways, crucially bound up in them.

The island already suffers water shortages, which will only get worse if temperatures rise and water supplies on the Californian mainland become scarcer. If fuel costs rise, so too will the price of living on an island almost wholly dependent on diesel barged in from the mainland and burnt in an electricity generation facility.

Catalina is hitting the limits of sustainability in other ways, too. Its landfill for household waste is projected to fill up in about 20 years, raising the prospect of shipping the waste back to the mainland, at huge cost. Its saltwater sewage system is falling apart because the salt is attacking the pipes, causing liquid effluent to bleed into the very Pacific waters that attract the tourists, who are the principal engine of the island's economy.

All this comes as a profound psychological shock to an island that has enjoyed an idyllic existence as a carefree getaway for the past 90 years, ever since the Chicago chewing-gum king William Wrigley bought it for $3m and turned it into a resort, complete with casino, beachfront attractions and tours of the surrounding ocean in glass-bottomed boats.

Present-day Catalina is not shying away from its problems; rather, it is confronting them head-on. Its aim is a complete rethink of the way it manages its lifestyle, so that it becomes as close to self-sustaining as possible. Cutting carbon and other greenhouse gas emissions to zero may be too much to ask, but it hopes, in the next few years, to become an emblematic trailblazer in the fight against global warming, inspiring and influencing communities on the mainland and beyond.

"What can a small town of 3,500 residents do to solve the problems of the world?" asks Avalon's mayor, a diving-shop owner and long-time Catalina resident called Bob Kennedy. "We can educate a million visitors a year. We can plan for a model community. We want to be more responsible custodians of the environment, whether global warming is truly a phenomenon or not."

The dream scenario, as laid out in a local blueprint known as the 2020 Vision Plan, would have Catalina generating most, if not all, of its power from renewable solar, wind and ocean resources. The landfill waste would be recycled as ethanol or used as a fuel source in itself by being burnt using state-of-the-art, clean technologies. The cars and golf carts the residents use to get around the small network of paved roads would be zero-emission electric vehicles. Much of the island's potable water would be produced by an energy-efficient desalination plant.

The solid waste in the sewage system would be processed into hydrogen and other fuels using bacterial fuel cells. The liquid waste would be recycled for use as irrigation water, or pumped back into the island's aquifer, or reused more directly to flush Avalon's household toilets. As Bob Kennedy puts it, with just a hint of mixed metaphor: "We're throwing 60 eggs in the henhouse and hoping that 20 or 30 of them will make sense for Avalon."

The dreams of tiny Catalina are, in many ways, the embodiment of what California as a whole hopes to achieve. While the Bush administration in Washington has preferred to kowtow to the short-term interests of the big energy companies and flirt with those who would deny that global warming poses any threat at all, the Golden State has taken matters into its own hands.

Indeed, California has, almost single-handedly, pushed the debate forward across the United States. Since 2005, when he issued his first executive order establishing emission reduction targets over the next half-century, Governor Arnold Schwarzenegger has staked much of his reputation and legacy on finding ways to roll back the effects of global warming.

Last summer, he signed a landmark bill requiring California to bring its emissions down to 1990 levels by the year 2020. He has accelerated a programme to convert 20 per cent of California's energy to renewables by 2010. He has taken advantage of California's long history of air pollution controls and car-exhaust regulations to offer incentives to drivers of hybrid petrol-electric vehicles, and he has thrown his support behind the long-term construction of a "hydrogen highway" - a possible future in which gasoline has been entirely replaced by compressed gas in private cars and trucks.

As Schwarzenegger put it, with characteristic bluntness, back in 2005: "The debate is over. We know the science. We see the threat. And we know the time for action is now."

In a political system notoriously susceptible to the lobbying power of special industry interests, it's easy to be a little cynical about how wide-ranging any reforms might be. The car and oil giants, in concert with state authorities, killed an early experiment with electric vehicles in the late 1990s, and they have successfully resisted any attempts to impose significantly higher fuel-efficiency standards.

But the symbolic value of California's involvement is huge. It is the world's sixth-largest economy, and also the 12th-largest source of greenhouse gas emissions. And Schwarzenegger has done something else the Bush administration has resisted - he's joined forces with partners, nationally and internationally. David Cameron has announced that Schwarzenegger had accepted his invitation to speak at the Conservative Party conference in Blackpool this autumn. Last summer, the Governor signed a highly unusual joint memorandum of understanding on global warming with Tony Blair.

California's regulators are now drawing up plans for an emissions trading system along the lines of the one operating in the European Union; in fact, a delegation from the California Environmental Protection Agency was in Europe on a fact-finding mission a week ago. Its members visited London to speak to officials at the Foreign Office, the Department for Environment, Food and Rural Affairs and the Department of Trade and Industry to find out what works and what doesn't. (In return, British officials are interested in California's pioneering air quality and vehicle exhaust regulation system, which has significantly reduced the smog hovering above Los Angeles.) California has also signed cross-border emissions regulation agreements with its near-neighbours Oregon, Washington, Arizona and New Mexico, so that companies won't have the option of dodging new standards by moving to a nearby state.

One person excited by these developments is Sir Nicholas Stern, the British Government's top adviser on global warming policy. Sir Nicholas was in the Golden State last week. "California joining up [to the global emissions trading market] would be a big signal, not just for the size of the market but of the direction the United States and the world is going," he told a San Francisco newspaper. "It would really move the debate in Europe, in China and elsewhere."

Schwarzenegger makes very similar arguments to Tony Blair's when he says that combating global warming and finding ways to curb emissions are actually a potential boon to the economy, not a drawback - because of the energy savings involved and, in California, with its vast scientific research infrastructure, because of the huge revenues that could accrue from developing new green technologies.

A report by Schwarzenegger's Climate Action Team last year suggested that reducing emissions to 1990 levels by 2020 would, in itself, create an estimated 83,000 jobs in California and an extra $4bn (about £2bn) in income. That sort of talk has, in turn, seduced some of the state's big electricity providers and other companies. Others are being chivvied on by the nature of the emissions cap-and-trade system - there are tangible financial incentives to meet the mandated targets.

There is, naturally, some resistance - on the right, from companies who instinctively distrust government regulation in and of itself, and on the left, from environmental lobbyists who fear that the emissions trading system will give companies greater rewards than their progress on cutting greenhouse gases really deserves. That has been a criticism in Britain, where carbon dioxide emissions actually rose last year in spite of the flurry of regulatory efforts to cut back.

If anywhere, though, is destined to be the grand stage on which the global warming policies of the future are to be forged, it is California. In part, that is a matter of political culture; no other place on the planet is more imaginative in putting green ideas into practice, whether it is putting solar panels on the roofs of private houses, or whether it is Hollywood stars ditching the traditional limo and having themselves driven to the Oscars in a hybrid Toyota Prius. It does no harm that Schwarzenegger, Republican though he is, is a part of the Hollywood mindset that likes to lavish its patronage on groups such as the Sierra Club and the Natural Resources Defense Council.

But California's interest in the subject goes well beyond trendy political fads. It is, literally, a matter of survival. The state is, in many ways, on the front line of global climate change. Its heavily populated coast, especially around Los Angeles and San Francisco, is under direct threat from rising ocean levels. Its suburbs are at greater risk from forest fires. If the snowpack in the Sierra Nevada mountains is allowed to melt (estimates suggest a loss of 70 to 90 per cent over the next century), a key water source for an already thirsty state will dwindle away.

Rising temperatures would pose many direct threats to the farming region in the Central Valley, the world's largest single food-producing area, including lack of irrigation water, lower soil fertility, disruption of the region's dam and flood control systems, and the possibility of salt-water contamination. The Napa and Sonoma valleys may get too hot for premier wine production. Smog would return with a vengeance, both in Los Angeles and the agricultural San Joaquin Valley south of Sacramento.

What are the prospects of forestalling these trends? Certainly, government regulation is a big part of the answer. But it is also about creating a sufficient sense of urgency to muster the political will for change - perhaps even radical change.

Catalina Island is as good a place as any to test the political and popular mood. Sure, it's on the coast, so it is very different from the state's farming or desert regions (where population increase has been fastest in recent years). Sure, it is a community that, unusually, coexists with a vast natural wilderness.

But it is also distinctly detached from the progressive politics of LA or San Francisco. Many of its residents have moved in from Orange County, the suburban area south of LA that was once synonymous with conservative Republican white males. Their ethos is the ethos of the American West - let me have my property and leave me alone. When Bob Kennedy first ran for office a couple of years ago, he did not so much as mention the environment in his campaign; he knew it was not a vote-winner. Too many people, he said, were "not as concerned with the environment as they are with their pocket-book". As one Avalon resident who did not want to be named put it: "People here are very independent and don't like to be told what to do. It's as far west as you can go."

Because of the layout of the island - most of the human transport is restricted to the couple of square miles of the town of Avalon - the most common vehicle is the golf cart, which is certainly a good start where emissions are concerned. But most of the golf carts run on fuel, not electricity. When a batch of Ford Think electric carts was introduced as an experiment a couple of years ago, residents complained that the charging stations were too few and far between, and developed an aversion to all electric vehicles. The authorities haven't pushed the issue - not least because the electricity for any low-emissions vehicles would have to be generated by the same dirty diesel fuel the island depends on (for the moment) for everything else.

Avalon's population has also given the thumbs-down to proposed car-sharing schemes. Americans think of their cars as extensions of their houses, taking personal pride in them and filling them with all sorts of personal junk. Residents of Catalina are no exception. "People can't visualise it yet," says a wistful Sue Rikalo, who introduced a flex-car proposal as a member of the island's planning commission. "If it was in place, everyone would love it. But getting them to change is a real challenge."

That said, Catalina has several built-in advantages. It doesn't have a major industry to mount significant opposition to the anti-global warming measures. The power brokers on the island, relatively few in number, include: the elected leadership of Avalon; the power company, which handles electricity, water and gas; a foundation called the Catalina Conservancy, which keeps the wilderness covering some 90 per cent of the island thriving; the Santa Catalina Island Company, which owns most of the rest of the land; the Chamber of Commerce; and the University of Southern California, which maintains an environmental and marine research facility funded by the Wrigley family. Together, these players all agree on the need to fight global warming and are reasonably confident they can steer popular opinion their way over time.

Making the 2020 Vision a reality has, so far, largely involved entertaining offers from cutting-edge scientific research companies who say they have come up with one dream technological breakthrough or another and want to use Catalina as their shop window. Bob Kennedy, who readily admits that he's dealt with a lot of "snake-oil salesmen", isn't willing to spend serious money until he's quite sure of what he's getting. Ann Moscot, the director of the Catalina Conservancy, says she wants to rely only on proven technologies. She expects the initial transition to take anything from five to 10 years.

Some of the enthusiasm for the anti-global warming project has taken forms that even a dyed-in-the-wool conservative can relate to. The chairman of the Island Company, Paxson Offield, known as Poppy, is enthralled with the idea of building a golf course at an idyllic spot called Descanso Beach that would rely entirely on recycled liquid waste - essentially, golf without guilt.

Sometimes, it's enough to lead by example. Just one house on Catalina has solar panels on its roof, a large pink residence on a hill overlooking the Avalon pier, belonging to a retired dentist called Frank Blair. The tenant who lives in Blair's guest-house just happens to be Avalon's city manager, Tom Sullivan. Sullivan can't help but notice that, while the rest of the island had to endure a recent 50 per cent spike in its electricity bills, he and his landlord pay nothing; the panels supply everything they need.

Sue Rikalo, the planning commissioner, runs the restaurant next to Catalina's small airport. She is introducing compostable bamboo plates and napkins, business cards made of recycled paper, non-toxic toilet cleaner and "green" office-supplies. She is trying to get every other business owner on the island to follow her example - with some success. "We're just dropping seeds, getting things started," she says.

Mayor Kennedy and others argue that these are more than token gestures - they are the inevitable wave of the future. He's staking his reputation, and his re-election bid next year, on the proposition that people will have to change, whether they like it or not. "Sure, people here are anti-growth, anti-change," he says. "But they forget that if things carry on as they are, one day they are going to flush their toilet and nothing is going to happen. Nothing is going to work."

April 6, 2007

Innovation Generated Through Ecological Management

Here is a book that provides an excellent framework for extracting unusual forms of innovation within your company. Below I have posted the book's content, which includes insights on the future of business and checklists for tranforming your company's operations into a sustainable enterprise.

'Ecomanagement: The Elmwood Guide to Ecological Auditing and Sustainable Business'

Written by Ernest Callenbach, Lenore Goldman, Fritjof Capra, and Rudiger Lutz, and Sandra Marburg.

You can purchase the book at Amazon


THEORY AND PRACTICE OF ECOMANAGEMENT

How to plan a full ecological audit based on business, personnel, organizational, human, and psychological considrerations. Checklists dealing with questions of implementation with suggestions on how to set priorities.


CHECKLIST GUIDE FOR THE ECOLOGICAL TRANSFORMATION OF BUSINESS

ENERGY AND MATERIALS: INFLOWS
CHECKLIST #1 ENERGY
CHECKLIST #2 MATERIALS

DESIGN, PROCESSING, AND MANUFACTURING OPERATIONS
CHECKLIST #3: PRODUCT DESIGN AND DEVELOPMENT
CHECKLIST #4 MANUFACTURING AND PRODUCTION
CHECKLIST #5 RECYCLING

SALES/ MARKETING, VVASTE, AND EMISSION OUTFLOWS
CHECKLIST #6 MARKETING AND SALES
CHECKLIST #7 WASTES AND EMISSIONS

FINANCIAL, HUMAN RESOURCE, AND OTHER SUPPORT STRUCTURES
CHECKLIST #8 FINANCE
CHECKLIST #9 INVESTMENTS
CHECKLIST # 1 0 THE WORKPLACE
CHECKLIST #11 TRANSPORTATION
CHECKLIST # 1 2 THE PHYSICAL PLANT AND ITS ENVIRONS
CHECKLIST# 1 3 INTERNATIONAL BUSINESS RELATIONS

Read on for detailed descriptions for each chapter ...

ENERGY AND MATERIALS
INFLOWS
CHECKLIST #1

ENERGY

Energy costs can decisively affect competitiveness. Looking at how energy is managed can sometimes generate new ideas for optimizing the manufacturing process.

1. Integrating an Energy Team into the Company Structure
A. Set up a project group (consider including randomly selected staff, volunteers, or rotating appointments) with employees from production, planning, purchasing, and personnel. Make sure that employees' job descriptions include their function in this group.
B. If company is large, consider having additional energy project monitors responsible for particular areas, workplaces, work¬shops, or departments.
C. Arrange meetings of top management with project group and an energy specialist who can help direct discussion on given topics.

2. Becoming Informed about Energy
A. Research and gather information on relevant energy-conserv¬ing technologies or products.
B. Brainstorm alternatives; conduct employee education work¬shops to solicit employee suggestions.
C. Conduct a model energy audit:
· Find which departments of the company consume most electrical or heat energy, and determine costs.
· Calculate the total cost of energy purchased from non¬company sources.
· Discuss what financial savings are possible and the poten¬tial effects, especially employee benefits, of the proposed reduction measures. Make financial savings clear to top management and financial departments.
· Centrally collect and review audit data on a regular basis.
D. As appropriate, solicit new ideas, formulate new objectives, and consider new technologies for reducing energy consumption.

3. Implementing Short-Term Energy Measures
A. Consider making small-scale changes in the workplace, for example, installing temperature regulators, providing extra insulation for hot water pipes, frequently cleaning surfaces of heat exchangers and air conditioner filters for maximum efficiency, and so on.
B. Install state-of-the-art monitoring equipment, when economi¬cally feasible.
C. Use heat exchangers to recover exhaust heat, and consider recirculating exhaust heat into production processes or gener¬ation of electricity.
D. Establish optimal temperatures for water used in the compa¬ny in order to reduce continuous energy use.

4. Implementing Long-Term Conservation Measures
A. Check whether large amounts of energy are required for
manufactures Energy requirement per working hour a Energy requirement per product unit
B. Check whether consumption, use, and maintenance by the user will involve high energy consumption or air, water, or soil pollution.
C. Check whether materials used for the product will allow it to be easily integrated into the ecological and raw materials cycles. Pay special attention to the following:
· Energy requirement for recycling (reuse)
Energy requirement for waste disposal
D. Optimize energy-efficient design, bearing in mind all prelimi¬nary production stages and the energy required for disposal.
Remember: * Less weight saves energy and Ceramic elements improve heat insulation

5. Communicating Progress
A. Inform employees of results in a report, and regularly in com¬pany newsletters.
B. Demonstrate energy savings achieved to interested groups both within and outside the department.
C. Inform other companies and media of successful practices.


CHECKLIST #2

MATERIALS

Raw material flows are vital to the global economy. Hence politics, technology, social organization, attitudes, economics, and other fac¬tors of production are all essential in developing a systemic approach to materials management. Creative input from political scientists, global thinkers, and others will be valuable for initiating a responsi¬ble policy.
The key to change ties in developing rewards for responsible suppliers and firms. Trust and loyalty between purchasing depart¬ments and subcontractors are crucial to a successful ecological program.
Since the materials eco-team will be involved in shaping inno¬vative policies, and may require international producers to instigate large-scale change, this group needs the independence to evolve standards relevant to the company and its environment. It should also have the authority to network with other similar groups, and to direct purchasing departments to introduce its standards into con¬tracts. To ensure compliance, this group must also be empowered to take such steps as testing sample materials in outside research labs, or sending unannounced on-site inspectors to work sites.


1. Fact-Finding
A. Collect information on raw materials used by the company and its suppliers.
· Identify basic materials requirements for present produc¬tion processes and products.
· Determine points-of-origin for imported materials.
· Note any special problems of in-house use of materials, such as hazardous or environmentally damaging charac¬teristics under various possible conditions.
Identify other characteristics of materials, such as associ¬ated labor savings
* Produce separate costings for water used for different pur¬poses, and cost distribution accordingly.
* Make sure the company is in compliance with federal, state, and local laws regarding emissions, hazardous sub¬stances, and so on.

B. Collect and evaluate information from suppliers about any materials you purchase from them.
· In particular obtain details of production processes, for example:
· Short-bath or long-bath process in the textile industry
· Use of economical rinsing process in electroplating
Use of magnesium bisulfide process instead of calci¬um bisulfide process in paper manufacture
· Ask for details about special ecological problems arising from disposal, or remobilization into the biosphere, litho¬sphere, and so on.
* Collect details about pollutants during use, for example, pollutant volume and emission levels. A staff member should follow developments in legislation dealing with release of substances into air and water (see Checklist #7, Wastes and Emissions).
· Ask for information on issues such as
· Environmental effects of alternative raw materials
* Materials and labor savings of substitutes 0 Workplace conditions in factories, mines
· Ascertain independently the reliability of information from suppliers, and check their business policy and eco¬nomic status, the efficiency of transportation, and so on.
C. Solicit and catalog ideas from industries, nonprofit environ¬mental institutes, research laboratories, ecology journals, and, where appropriate, from company engineering, research, and development departments.
D. Centralize information on alternative products, raw materials substitutions, and new technologies; make this information accessible to all employees, even those not involved in the materials eco-team.
E. At regular meetings, brainstorm ideal and contractual stan¬dards for basic environmental and social goals. The participa¬tion of outside consultants is strongly recommended.

2. Adopting Ecological Strategies and Practices
A. Improve on-site storage of raw materials.
· Label and restrict access to all hazardous substances.
· Apply ecological principles in designing and maintain¬ing storage facilities, for example:
Low-exhaust forklift trucks
Reusable containers
B. Install advanced equipment.
Use modern painting equipment.
C. Improve efficiency.
• Use catalysts and converters to improve yield from raw materials or reduce emissions.
• Use minimal amounts of cooling water.
• Install state-of-the-art automatic measuring and control technology.
• To monitor water use, install thermometers, expansion valves, and flow reducers.
• Substitute rainwater rather than groundwater, if possible.
D. Recover/Recycle.
· Always recover heavy metals, acids, and organic solvents.
· Devise techniques to facilitate raw materials recovery (for example, do not mix substances; in wet processes, reduce rinsing and cleaning water).
· Recycle rinsing and cleaning water.
· Recycle, recirculate, or reuse useful substances in effluent or convert them into other useful products.
· Separate and reprocess industrial sewage water.
· Use grey water for toilet flushing.
E. Replace hazardous materials with less hazardous ones.
· Replace cadmium coatings with zinc.
Use low- rather than high-sulfur coal.
· Replace asbestos in brake and coupling linings.
· Replace chlorinated hydrocarbons in cold cleaning sol¬vent.
Replace PCB transformers.
F. Increase efficiency of international, national, and intercompany transportation.
Optimize routes and shipment schedules to avoid waste of resources.
Favor transportation methods that have reduced environ¬mental costs.

3. Managing Component Parts
A. Conduct components inventory.
· Catalog product components for all manufactured prod¬ucts, and, as far as is compatible with trade secrets, for supplied products.
· Check whether components can be recycled:
Transformers containing PCBs need special disposal
Fluorescent lamps contain dangerous metals and
should be carefully returned to the manufacturer

4. Negotiating with Suppliers
A. Specify new ecological and workplace standards. in contracts with suppliers and subcontractors; communicate to them your corporate strategy or mission.
B. In negotiating contracts, detail exceptional circumstances, such as political repression or flagrant national disregard for human rights, which would make a region or nation unacceptable for your business.
C. Favor suppliers and subcontractors who meet your new stan¬dards and timetables, and show willingness to negotiate about longer-term goals.

5. Implementing More Ecologically Advanced Strategies and Practices
A. Stimulate markets for new sustainable technologies and less environmentally damaging production processes.
* In mining, for example, favor suppliers who have inte¬grated processes of wastewater reclamation, erosion con¬trol, habitat restoration.
· In agriculture, favor suppliers who practice biocontrol, use minimal or no artificial fertilizers or pesticides, and so forth.
· Favor suppliers who use alternative fuels, energy, or trans¬portation that is less environmentally damaging.
· Encourage technologies and processes that foster ecolog¬ical innovation and long-term sustainability.
B. Independently verify whether contract goals are being met by subcontractors.
· Consider requiring bills-of-lading, certifications (if points-of-origin may be obscure), clearance certificates, quality analyses results.
· Involve own engineering or research and development departments as well as independent labs to analyze dan¬gerous materials and contaminants and to assess alterna¬tives.
C. Form cooperative buying groups with similar companies in order to stimulate markets for environmentally responsible production.

CHECKLIST #3
PRODUCT DESIGN AND DEVELOPMENT

For long-term environmental changes to occur, ecological thinking must be introduced into the design and development stages of pro¬duction. If the firm is large enough to have managers for each prod¬uct line, give them a significant share of responsibility for the environmental impact of their product.
Innovative product design can be enhanced by looking at the larger service or process goal that a product addresses. For example, when AT&T redefined themselves not as a telephone company but as being in the business of communication, a myriad of product and service options opened up, from voicemail to video. Volkswagen sees itself as in the business of transportation, not exclusively as a car com¬pany. Looking at the process rather than the product can broaden the conceptual framework for product development and generate new ideas for serving the customer, while making it easier to change or let go of specific, ecologically unsound products.
Keep a special eye on developing new products from current manufacturing by-products. This can eliminate waste and create products at tremendous cost savings on both the raw material and waste disposal sides (see Checklist #4, Manufacturing and Production).

1. Catalog Current Products to Determine Which Could Be Improved by Eco-Friendly Design
A. Integrate ecological thinking into the evaluation of the full cycle of product conception, specification, production, use, reuse, and ultimate disposition.
B. Research possible new uses for obsolescent products.
C. Make new products adaptable to foreseeable improvements in science and technology.
D. Design parts to have multiple uses and to be useable in differ¬ent products. To this end, aim for standardization of parts used.
Make use of ASA/DIN standards.
E. Provide room for additional components by avoiding integrated construction.
E Make technical provision for enlargement of product capacity, include
Capacity reserves
Multiple connectors

2. Design Products for Effective Maintenance and Durability
A. Increase the functional life of products.
B. Store unfinished products so that wear and tear are minimized.
C. Design products to facilitate repair and the recycling of com¬ponent parts.
D. Avoid frequent design changes for stylistic and marketing pur¬poses; make classic, durable design your trademark.
E. Especially avoid "disposable" products.
F. Seek ways to limit the energy required to use, maintain, and repair products.

3. Make Sustainable, Ethical Use of Raw Materials in Design
A. Favor use of materials derived from sustainable systems of pro¬duction (or from recycled products). Place a high priority on designing products that use raw materials that are by-products from the company's existing production processes.
B. To facilitate recycling, consider whether constituent raw mate¬rials can be reused or recycled, and how much energy is required for this process.
C. Avoid combining materials that are incompatible for future reuse or recycling.
Avoid using aluminum cans with steel tops.
Carefully select printing inks and dyes when using them on products destined for recycling.
D. Use fewer raw materials per product.

4. Product Testing
A. Establish guidelines for dealing with the issue of animal experimentation.
· Substitute computer modeling or cell culture for whole animal studies.
· If whole animal testing is essential, provide stringent guidelines for humane treatment of test subjects (e.g., press for alternatives to "sacrifice" of test individuals).
· Take an absolute position against testing on animals taken from the wild and of course on endangered or threatened species.
B. For aerodynamic products, use computer simulation or exper¬iments to facilitate efficient design.
C. Test products for the diversity of consumers who will use them, even if in smaller numbers.
* Test for differences between men and women. (Catheters for heart attacks, for example, have been sized for men's bodies.)
* Test for differences between cultural groups. (Genetic dif¬ferences or predispositions, dietary constraints, social taboos, and religious restrictions are among the issues that can impact on appropriate product use. This is par¬ticularly true for internationally marketed products.)
· Test for differences between socioeconomic groups, job categories, and education levels. (Working night shifts and swing shifts, working double shifts or doing extremely hard physical labor, level of literacy, and access to technology, such as refrigeration, telecommunica¬tions, and efficient transportation, are among the fac¬tors that can influence appropriate product use and effectiveness.)
· Test for differences in sexual orientation, life-style, and physical abilities.
A good source of ongoing information: The Green Business Letter, 1526 Connecticut Avenue, NW, Washington, DC 20036. Telephone:
(800) 955-GREEN.

5. During Design Phase, Aim to Reduce or Eliminate Toxic Materials in Both Products and Production Processes
A. Find suitable substitutes for hazardous dyes and preservatives on paper, cloth, wood, and so on.

6. Design for Consumer Health and Well-Being
A. Consider health of customers during design.
· Design apparel that complements the biological needs of the human body.
· Minimize or eliminate harmful preservatives, fats, trace contaminants, and so forth in food products.
B. Make products easy to use; include clear instructions to mini¬mize risk of accidents and injury, and to prevent stress.
· Make machines as self-explanatory as possible.
· Use icon markings for control knobs.
· Incorporate health warnings into the design of the product itself, on the side of a machine, on hangtags, on containers.
C. Make provisions for those who fall outside the scope of normal marketing stereotypes in terms of weight, physical ability, lin¬guistic fluency, literacy, and so forth.

7. Design to Reduce Social, Cultural, and Economic Inequality
A. It is unethical to reinforce stereotypes based on race, ethnici¬ty, gender, and sexual orientation in designing and selling products.
B. Do not make high cost and inaccessibility the selling point of products.

8. Respect Life Forms and Ecosystems
A. Avoid using products or parts of animals taken from the wild, especially endangered or threatened species.
B. Consider alternatives for the use of animal parts as raw materials.
C. With regard to plants, avoid supporting exploitation of endan¬gered and threatened plant species, or deforestation/defoliation that endangers bioregions.
D. Consider introducing a high-prestige line of products that rep¬resents the culmination of advanced ecological thinking.
E. Consider using ecological and preservation themes in fabric patterns, decorative designs on products, and so on.

9. Avoid Wasteful Packaging
A. Establish whether suppliers are able to use minimal return¬able/recyclable/organically degradable packaging.
B. Use standardized packaging in order to make optimum use of transport and storage space.
C. Select the packaging material with the lowest energy input requirements.
D. Design packaging to be reusable, either as packaging or for other purposes.
E. Collect paper and cardboard for recycling.
F Minimize use of plastics, styrofoam; consider popcorn and other biodegradable or recyclable materials.
G. Consider eliminating all packaging by a set date. Consider a policy to refuse materials received from suppliers who don't eliminate packaging.


CHECKLIST #4
MANUFACTURING AND PRODUCTION


1. Establish a Fact-Finding and Research Group
A. Analyze existing manufacturing processes and technologies.
B. Propose ecologically favorable alternatives in the short term.
C. Keep informed about relevant innovations (emerging tech¬nologies, new processes, and products) that would improve the company's ecological and social performance over the long run, even if expensive in the short term.
D. Make certain that company is complying with, or exceeding, existing environmental protection standards.

2. Improve the Ecological Performance of Existing Systems and Materials in the Short Term
A. Introduce additives and catalysts that will improve raw materi¬als yield and/or reduce harmful emissions in manufacturing.
B. Increase energy efficiency by insulating, sealing, or otherwise protecting equipment and materials to be used at high or low temperatures.
C. Check and repair all leaks in existing equipment used for cir¬culating or storing gases and liquids (e.g., valves, pumps, pipes, shut-off devices).
D. Regularly check pollutant treatment equipment for proper operation and efficiency.
E. Reduce noise by isolating machinery, insulating, and other means. (Provide employees with comfortable ear protection against noise.)
F Reduce vibrations generated by equipment.
G. Make employee safety a priority.
· Provide basic employee training in first aid, workplace hazards, and so forth.
· Conveniently locate first aid equipment and stations (e.g., eyewashes, showers).
* Monitor employee health complaints for early indication of hazardous and toxic contact.
* On a voluntary basis, have blood and urine samples analyzed for employee uptake of hazardous and toxic chemicals.

3. Continuously Upgrade and Redesign Production for Long-Term Benefits
A. Replace hazardous chemicals with ones that pose fewer human health hazards and/or cause less pollution (see also Checklist #2, Materials). This will significantly benefit employees and the community.
* Find substitutes for known carcinogens and other major hazards.

* Do not store/use explosives or corrosives near toxics, which could create a costly environmental accident.
B. Upgrade with technologies that improve company's ecological and human health record (see also Checklist #7, Wastes and Emissions).
· Favor technologies that give improved input and output ratio.
· Choose more reliable automatic measuring and control technologies.
· Install automatic monitors and warning systems for emergencies.
C. Aim to improve postproduction, or "end-of-pipe," environ¬mental protection equipment.
Install sophisticated "scrubbers" for reducing hazardous emissions from air stacks.
· Adopt "Best Available Technology" as a standard.
D. Replace inefficient and highly polluting energy systems with efficient ones that are less damaging to the environment.
Use alternative sources such as solar and wind; investigate photovoltaics.
· Design systems to reuse process waste heat; consider co¬generation (see also Checklist # I, Energy).
E. Avoid intermediate storage by switching from discontinuous manufacture to continuous processes.
F Adopt hermetic processes especially for dangerous dust¬producing substances, such as asbestos and fiberglass.

4. Recover, Recycle, and Reprocess
A. Recycle or reuse effluents that contain useful substances (see also Checklist #5, Recycling).

B. Responsibly recycle, reprocess, recover or, if necessary, dispose of wastes that contain harmful substances.

5. Responsible Manufacturing
A. Redesign manufacturing processes to eliminate unwanted sub¬stances from the production stream.
B. If a product is found to be manufactured or produced in an unsafe manner given current specifications, then redesign the product and/or production process.
C. If a product cannot be manufactured or produced in a safe manner under current specifications, then eliminate-or find suitable alternatives for-the product and/or its production process.


CHECKLIST #5
RECYCLING

Recycling is a popular, labor-intensive strategy to mitigate some effects of raw materials exploitation. To be effective, strong markets for recycled components and finished goods must be stimulated. Ecologically conscious firms should therefore not only support these markets but also inquire whether or not materials designated for recycling are actually being reprocessed and for what products. Political influence should be used to promote government backing for use of recycled products.

1. Fact-Finding
A. Set up a recycling management team-with representatives from product design, materials, purchasing and marketing, and independent specialists-to oversee and evaluate all recycling and use of recycled products. Ensure that the team is empow¬ered to make necessary changes.
B. Note departments of the corporation that consume products that can be replaced by recycled products.
· Weigh costs of switching to the alternatives against the estimated environmental benefits; consider relative "visi¬bility' of changes.
· Assess regional or large-scale environmental impact of particular recycling operations, and develop guidelines for deciding when recycling is appropriate.
· Consider especially the energy, labor, and capital require¬ments of recycling versus any pollutant effects of current disposal arrangements. Analyze consumer demand for the recycled product.
· Weigh the practical costs of recycling against estimated environmental benefit.
C. Ensure that recycled products are not hazardous to those who produce or use them; for example, favor recycled paper that is free of dioxin.

2. Recycling in Production Facilities, Offices, Retail Outlets, and Similar Locations
A. It is preferable that product design facilitate recycling (see also Checklist #3, Product Design and Development) .
Use fewer or more easily separable raw materials. Standardize components.
Avoid nonbiodegradable materials.
B. Change mix of products or services, organizational structures, transportation or communication systems, and so on, to opti¬mize recycling.
C. Recover raw materials and reduce waste in the production process.
Using materials and components inventories, note any possibilities for recycling waste produce into own or external production.
D. Conveniently place and label recycling bins for selected materials.
E. Provide opportunities for employees to bring materials from home for recycling if they have no other alternative.
F. Bring in an outside contractor to facilitate recycling.
G. Within the company, substitute computer "e-mail" for typed paper memos and communications.
H. Educate customers (using product labels or hangtags) to emphasize recyclable components of products.
I. Offer customer rebates for recycling your products (e.g., for
returning worn cotton goods to become cotton rag paper).

3. Negotiating with Recycling Firms
A. Research and select firms that meet criteria determined by recy¬cling management team, seem willing to negotiate, and are not owned by corporations with a history of mistreating the envi¬ronment or employees.
B. To reduce costs, consider purchasing directly from firms that produce goods from recycled materials.
C. If possible, purchase recycled products from the same compa¬nies that recycle your waste.
D. Should suppliers of materials and components be in a good position to recycle associated by-products, incorporate recy¬cling requirements into contracts.
E. Negotiate optimal transport routes with recycling firms and other companies that recycle.
F. Make sure that the recycling firm is responsibly handling
materials.

4. Implementing More Ecologically Advanced Strategies and Principles
A. Aim to stimulate the market for recycled products by infor¬mative advertising, displays in retail outlets, and product labels.
B. Form computer information networks with other corpora¬tions about suppliers and recyclers, to facilitate flow of reusable and recycled materials.
C. Form computer information networks with other corporations about responsible recyclers and suppliers of recycled goods.
D. Progressively change product and package design in ways that make recycling easier (see also Checklist #2 ' Materials, and Ckecklist #3, Product Design and Development).
E. Increasingly try to use biodegradable substances in all your processes.
F Find ways to recycle waste produced by the company into other products. Create your own closed-loop system.

New German Recycling Law

A sweeping new German recycling law went into effect April 1, 1992, requiring all businesses to collect and recycle the packaging they use for their products. By January 1993, 50 percent of all consumer products packaging will have to be recycled; and by 1995, 80 percent must be recycled.
Although companies originally claimed that the law would be unworkable, 600 firms eventually banded together to form Duales System Deutschland, a corporation that assists local governments in collecting materials and recycling them. Duales System has distributed large yellow recycling bins to half the German population-40 million people¬and hopes to reach 90 percent of the population by the end of the year.
Packagers pay Duales System a fee ranging from one cent to $2 per product. In return, their product is marked with a distinctive green dot, and its packaging is collected and recycled in the Duales System program.
Environmentalists fault the German law for placing too much emphasis on recycling instead of promoting reusable packaging or waste reduction. The system has also created an urgent need for more sorting and recycling plants, which are slowly being built. Despite these problems, how-ever, the German law has rapidly produced one of the most ambitious and exciting national recycling programs in the world.

CHECKLIST #6
MARKETING AND SALES

Marketing is comprised of the aggregate steps involved in getting your product to consumers. This includes how you promote, price,and distribute your products.


I - Set Up Teams To Evaluate and Reconsider Current Marketing

2. Promotion
A. Package Design (see also Checklist #3, Product Design and Development) Evaluate and reconsider current designs.
* In conjunction with the materials team, devise sensible packaging made from environmentally acceptable mate¬rials.

* Avoid overpackaging (i.e., using unnecessarily large con¬tainers or double wrapping).

* Consider developing packages that travel well but use minimal materials.

· Use "eco-scals" on your packaging to highlight your product's environmentally positive features (see Callen¬bach 1990).
B. Sales Evaluate and reconsider current style.
• Provide information to your customer on the ecological benefits of your products.
• Provide post-sales and advisory services to ensure that the product is used and disposed of in an acceptable manner.
• If higher prices cannot be avoided as a result of ecologi¬cally sound manufacturing processes, make it clear to dis¬tributors and consumers how the costs are calculated (discuss price differentials based on ecological factors).
• If you work through retailers, consider providing an 800 number (in the United States) to answer the final cus¬tomer questions about the ecological effects of your prod¬uct.

C. Retailing
Evaluate and reconsider current arrangements.
Negotiate with your retailers to present your product in a manner that is in accordance with your ecological mar¬keting strategy.
* If you feel your retailers are not in accord with the image you wish to promote, consider opening your own stores where you have more control over your company image and the presentation of your products, and where you can more easily monitor consumer preferences.
D. Advertising
· Evaluate and reconsider current media and levels of effort.
· Avoid use of advertising media that is not ecological (i.e., coated papers and toxic inks).
· Use "eco-seals" in your advertisements to emphasize the eco-friendly features of your product.
· If you use direct mail, avoid duplication in mailings; con¬sider targeting different catalogs to different audiences.

3. Distribution
A. Evaluate and reconsider existing systems.
Give preference to existing transport systems that have reduced environmental costs in terms of energy con¬sumption and pollution.
Research and support the development of more ecologi¬cally sound transportation systems.

4. Establish and Implement Strategy (based on above considerations)
A. Determine and target customer sectors most likely to be affect¬ed by advertising that stresses ecological factors.
B. Prioritize products or product categories to promote in an eco¬logical campaign.
C. Periodically monitor the success of the above strategies in eco¬nomic terms and revise if necessary.
D. Work with the public relations group to monitor the compa¬ny's profile with respect to these decisions, and revise strategy if necessary.
E. Provide monetary bonuses or other incentives for achieving or surpassing targets.
E Consider implementing (and publicizing) marketing or sales strategies that directly benefit environmentally or socially significant programs and/or projects.
* Designate a percentage of total company sales or profits for this purpose.

· Designate a portion of profits from a specific product line for this purpose.

· Consider including local and regional, as well as interna¬tional projects in this category.


CHECKLIST #7

WASTES AND EmiSSIONS

Every part of a company creates pollution of some kind. Often, the various divisions produce very different types of pollution. Thus, you may find it useful to divide your teams into such categories as research and development, manufacturing, and office.

1. Set Up Teams to Evaluate
· Waste production and disposal
· Emissions and emission controls
A. Consider including both employees and representatives from other companies with specific technical knowledge of the pro¬cesses producing waste and emissions, disposal arrangements, and emission controls.
B. Randomly select several team members from your employees to encourage creative solutions.
C. Consider asking representatives from your suppliers, from other companies in your industry, and from your disposal companies to join your effort.
D. Select several people well versed in legal and technical matters who would be able to knowledgeably investigate existing envi¬ronmental laws with respect to emission controls, noise, toxic waste, water pollution, and so forth.

2. Identify Waste Products and Current Means of Disposal
A. Specify the individual by-products (e.g., wood, paper, chemical compounds, asbestos).
B. Note the origins of these by-products (production process, office waste, development waste), specifically indicating the process by which the waste is produced (i.e., the actual chemi¬cal and physical processes).
C. Identify and rank the toxicity, lifetime, and general disposal problems of all waste (noting medical hazards to workers, land and water pollution, special disposal conditions for the item to biodegrade, and so on).
D. Evaluate existing disposal arrangements, noting their effective¬ness given the above ranking and their compliance with cur¬rent laws.

3. Identify Emissions and Current Emissions Levels
A. Itemize all emissions emanating from your factories or build¬ings (including noise, gases, particulates, odors).

B. Indicate the origins of these emissions, noting the specific pro¬cesses that produce the emissions.
C. Identify and rank the medical and ecological consequences of each emission.
D. Note emissions controls currently in place for each discharge, indicating inadequacies and degree of compliance with current laws.
E. Prioritize current emissions and control measures that must be changed.

4. Investigate Alternatives for Reducing or Eliminating Waste and Emissions
(Note.- consider getting help or referrals from sources such as the
Environmental Protection Agency.)
A. Use your two lists of priorities as a starting point for this investigation.
B. Seek other production methods whereby the creation of emis¬sions and waste could be avoided altogether.
C. Seek alternative methods that would reduce their production.
D. Consider physical or chemical processes that would render the waste harmless (i.e., a mixture of methyl alcohol, formic acid, acetic acid, and ester heated to 900-1 000 degrees Celsius will form carbon dioxide and water).
E. Consider whether any waste products could be used as raw materials for another production process within the company or could be sold to another company (in office situations, paper can be shredded and reused for packing materials or note pads).
E Research more appropriate disposal methods (i.e., those with a higher degree of safety, or those that would more readily cause the waste to biodegrade).
G. Rank each alternative in terms of its results, ease of imple¬mentation, and financial cost (paying particular attention to the possibility that a new method may decrease noxious emis¬sions while yielding another harmful by-product).
H. Select alternatives to pursue immediately (those which are most urgent from your above lists of priorities, followed by those producing the most results or costing the least).

5. Design a Strategy and Set Up Infrastructure to Support It
A. Devise an action plan (note steps to be taken, make a dead¬line, assign a task force and review committee who will ensure that environmental objectives are continually met).
B. For the long term, assign an experienced staff member or con¬sultant to continually inform your decision makers of laws
and regulations pertaining to environmental protection (make sure he or she provides you periodically with written reports).
C. Attend to all waste management systems.
Provide conveniently located receptacles for storing by¬products.
· Install collection points for used oil, solvents, solutions, acids, dyes, and so on.
· Store toxic waste in well-ventil'ated areas away from employees and heat.
D. Provide office containers for waste paper, plastics, glass, alu¬minum, and metals, such as staples, paper clips, and bottle caps (see also Checklist #5, Recycling).
E. If you have your own retail store, establish recycling centers for your customers.
E If you are the distributor, set up recycling channels for your customers.

6. Negotiate with Your Suppliers and Disposal Firms
A. Have suppliers arrange for pick up of waste associated with their product (i.e., suppliers pick up waste that they can reuse, or they contract with a local recycling company).
B. In contracts with suppliers, add a clause requiring them to pro¬vide full information on product characteristics and materials (thus, the supplier is liable for any misinformation),
C. Make spot checks to ensure that disposal conditions are ade¬quate (perhaps even form an organization with other clients that would monitor the disposal process).

CHECKLIST #8

FINANCE

As governments increasingly seek to shape corporate choices to min¬imize ecological damage, a great variety of financial implications are emerging. Thus, tax write-offs are sometimes given for the adoption of emission-minimizing equipment; utility rates (and hence profits) are allowed to rise to finance energy-conservation measures; procure¬ment policies are designed to favor ecologically desirable products such as recycled paper; the location of new or expanded facilities is subject to increasingly stringent environmental impact reports. Hence, investment strategies must more and more be framed in terms of the ecological context.
In England and Germany, some government grants are avail¬able for certain kinds of environmental protection research or improvements. The German government offers various important tax advantages and low-interest loans. In the United States, indus¬trial waste-water treatment may be eligible for federal grants; some loans and grants are also available from state sources. The European Development Bank in Luxembourg offers loans for investment in environmental protection, often on better terms than those of national banks. The Commission of the European Communities in Brussels offers funds for demonstration or model projects.
All investments should routinely be subjected to ecological evaluation. Ask, for example:

s Will it increase pollution?

· Will it increase ecological risks?

Will it protect the environment?

· Will it protect the environment and also increase profitability?

The phasing of new investment can be ecologically sensitive. If a new lower-pollution technology is in the offing, it may be reason¬able, regulations permitting, to delay replacement or fixes of the cur¬rent generation of equipment. Sometimes accelerated replacement of polluting equipment may be desirable.
If a particular investment is likely to cause or increase pollu¬tion, the financial dimensions of the costs and risks involved must be considered. The following are special factors that can be costly to ignore:

* Probable future costs for disposal of wastes

· Possible changes in regulatory thresholds

· Possible income from developing sales of by-products that would be pollutants if released

The "parking" of company funds can have ecological implica¬tions. Consider whether using banks within the company 5 s bioregion will help keep capital local and thus foster local communi¬ty strength, including environmentally desirable investments.
Evaluate whether employee 401 (k) or other corporate pension plans include environmentally and socially responsible investment options.
Traditional investment costing methods usually discriminate against long-term projects, which bear most of their fruit in later years. So-called "dynamic" costing methods, that is, the capital value method and the internal interest method, may be preferable.
Investing solely in end-of-the-pipe measures is generally far more expensive in terms of results than making more systemic changes. Paying attention to only one troublesome aspect of a pro¬duction process at a time, rather than the whole, is also generally needlessly costly.
The buying or selling of emissions allowances, while contro¬versial among environmentalists, can have very large investment con¬sequences. Specialists in "environmental property auditing" investigate potential ecological risks in the buying and selling of real property and corporations.
Insurance against massive ecological risks is being explored, sometimes through government, as with oil spills; it already exists for nuclear accidents (though on an extremely limited scale consid¬ering potential damages). In most European countries, national health services and other measures provide a certain basic "insurance" for employees and citizens. In special-risk industries, such as mining and chemicals, companies sometimes provide accident and life insurance.
while normal liability insurance offers a good deal of protec¬tion for most business risks, the liability consequences of some indus¬trial processes, as has been demonstrated by asbestos, can be immense and are seldom insurable; companies and their executives persist in them knowingly at great peril. Since the law is evolving rapidly in this area, a company using risky technologies must make it a high priori¬ty to keep abreast of developments.
Facilities insurance should be reviewed to ascertain its cover¬age of ecologically related damage. Insurance also exists to cover interruption of production from such ecological causes as toxic spills.

CHECKLIST #9
INVESTMENTS
1. Establish an Eco-Investment Strategy
A. Determine ecological criteria you wish to follow in your investments.
· Rank these criteria in terms of urgency to environment and society.
· Target your investments toward companies and govern¬mental and nongovernmental agencies that follow your ranking.

2. Make the Investments
A. Seek out investment institutions whose investment philoso¬phies support your ecological criteria.
B. Use your "investor power" to move your own financial institu¬tion toward considering adopting more ecological investment principles.
· Think about purchasing local, state, or federal bonds sup¬porting ecologically sound investment measures.

Research potential eco-friendly investments (e.g., compa¬nies that need financing to make ecological improve¬ments) -
C. Justify your ecological investments to your stockholders.
D. Invest in your employees: provide incentive stock purchase plans and compensation benefits to reward improved ecologi¬cal performance on all levels within the company.

3. Lobby for Eco-Investment Incentives
A. Organize a group to lobby for tax credits for specific environ¬mental investments made by companies.
B. Support government or private aid for environmental improvements,

4. Support Community Organizations
A. Offer grants for organizations, local groups, and institutions involved in ecological or human-services projects.


CHECKLIST # 1 0

THE WORKPLACE
WORKING CONDITIONS

The internal environment of a company is of critical importance to the physical and mental health of everyone who works there, and hence to the overall welfare of the company. Indeed, since people in the company spend a large proportion of their waking hours in the company "habitat," working conditions there may be thought of as an important "product" that is consumed by these people, along with the products that are sold to customers outside the company. Work¬ing conditions include many factors besides those narrowly connect¬ed with work tasks.
Moreover, if stressful conditions of bad lighting or ventila¬tion, noise, dust, toxics, or physical danger are not avoided, employ¬ees can hardly be asked to take a creative interest in general environmental matters. The same holds true if workers face poor social conditions, such as no job security, poor supervision, limited opportunities for promotion or learning, discrimination, or punitive motivation systems. Internal and external environmental concerns are thus tightly linked, and need to be treated with an integrated approach.

Noise, including Low-Frequency Vibration

Noise from machinery can often be reduced, through cushioning or springs, shielding, sound-absorbent enclosures, venting to the out¬side, and so on. Noise from subsidiary activities can also be severe and must be considered. Intermittent noises may be especially irritating and distracting. In general, noise can be contained by interposing con¬tinuous mass (no cracks or holes) between source and hearers, for example, heavy plate glass, metal, or concrete. Structural isolation may sometimes be needed to prevent transmission of sound. Persons exposed to loud noise should use personal protective muffling equip¬ment, and need regular medical check-ups.

Lighting and Colors

Minimum lighting intensities for different tasks are often prescribed by regulations. Many other factors affect employee comfort and per¬formance, however, some of which may also be subject to regulations: contrast ratios between light and dark areas, reflectance of surfaces, direction of light sources, and so forth. (For example, computer ter¬minals require relatively low-level and indirect lighting.) Since employees are the best judges of their own lighting needs, they should be given considerable latitude in choosing and arranging light sources.
Fluorescent lamps, which are environmentally attractive because of their high energy efficiency, pose some special problems. Combining tubes of different light colors is desirable to approximate full-spectrum sunlight, which is most comfortable for people; spe¬cially made tubes also achieve this, as do some bulb-shaped lamps. Flickering can be avoided by replacing worn-out ballasts, or using electronic devices or three-phase switching.
Colors in a work environment can have strong effects, but there is great debate over particular color effects-some "reds" are more rest¬ful than some "greens," for instance. It is generally felt that a light¬colored ceiling seems higher than the same ceiling painted a dark color. A skillful decorator, in consultation with employees, will apply many such rules of thumb to producing a comfortable environment.

Electromagnetic Fields

Recent research has indicated that people (especially children and pregnant women) are affected by relatively low-level magnetic and electric fields, which are generated by much modern machinery (as well as by such devices as electric blankets) and pass through ordinary walls and floors. International attitudes vary in caution, with some researchers holding that danger levels are very low or nonexistent. Nevertheless, the level of concern among scientists has been rising steadily, leading to an array of considerations.
Video display terminals, for example, produce strong electro¬magnetic fields to the sides and rear especially, and should not be grouped closely or in large numbers. Women who are newly pregnant or about to become pregnant should not work with them. Spaces near transformers or other equipment or wires carrying large electri¬cal currents, whether inside or outside of buildings, are not good places for people to spend large amounts of time. Facilities with human occupants should not be located under or near high-voltage transmission lines.

'Climate'

From the point of view of people's comfort, quiet natural ventilation is preferable to closed forced-air ventilation systems for much of the year in many climates. Architects are learning how to use solar energy, natural wind input, buildings' capacities for heat retention and exclu¬sion, and similar advanced techniques, to produce structures whose energy consumption is modest even under quite severe conditions.
Where closed systems are employed, particular attention is required for humidity, variations in air speed with respect to vents, drafts, temperature gradients between head and foot levels, and so forth. Radiative heat from warm surfaces can be a cause of discom¬fort, requiring attention. If heat generated by amps, equipment, and human bodies cannot be dissipated through natural ventilation, solar-driven air-conditioning equipment can be considered.

Hazarclous Substances

See Checklist #7, Wastes and Emissions.

Equipment

A large number of considerations bear on equipment design; thus, we can only suggest a sampling here. The principle of one-function, one-switch should be followed to minimize operator errors; emergency "off" switches should be clearly marked and easily acces¬sible. Ergonomic design of all equipment should be the rule, to min¬imize fatigue. Equipment and work tasks should be designed to provide frequent interruptions of repetitive movements and to min¬imize physiological hazards. Asymmetrical and excessive muscular exertion are to be avoided. Balance and variety are desirable between Ccprivate" areas on machines and those that are shared for tasks on which people cooperate.

Safety

Many work environments are inherently dangerous, and yet safety precautions easily become part of the ignored "background." An audit can bring them to everybody's attention again. Danger signs and sym¬bols (including color coding) should be reviewed. Protective devices and equipment may need to be installed or repaired; in some cases, workers under production pressure may have disabled safety devices¬a sign that they require redesign so as not to inhibit production. Anti¬dazzle and anti-spatter devices must be reviewed. Traffic routes should be defined and clearly marked to eliminate collisions of moving equip¬ment and people. The wearing of necessary protective clothing or other personal equipment must be ensured.
Areas around automatic machinery require particular atten¬tion; safety barriers or fences are needed to prevent people from entering dangerous areas. If machinery can throw waste or parts, pos¬sible trajectories must be guarded. Take particular pains with safety during periods of installation or maintenance, when normal safety equipment is dismantled or not yet in place.

Work Organization

The apparent advantages of a rigid assembly-line division of labor are often undercut by its human disadvantages: high absentee and error rates, employee dissatisfaction and rapid turnover. Developing a sat¬isfactory internal environment is therefore inevitably concerned with the description and content of jobs. While every company's needs and possibilities are different, and employee "cultures" vary from community to community, certain principles are widely believed to help provide a healthy working environment:

Job Design

· Organize operations to include teamwork; groups that have some degree of authority over how they collectively do their work are generally more efficient, creative, and contented.

· Design jobs to prevent the stress of excessive repetition, rigid timing, social isolation, physical strength, and precision of movement.
· Provide regular, on-the-job learning experiences for employees at all levels. Recognize that mistakes are part of the learning process.

Stake in Organizational Performance

* Create opportunities for participation in decision making.

* Link responsibility for a task with the authority required to carry it out.

· Share rewards from productivity improvements. This can include profit sharing, employee ownership, recognition, pro¬motion, pay, and other benefits.

Motivation

· Motivate employees positively, not punitively. Assure that indi¬viduals are rewarded for a job well done and receive concrete, constructive feedback and training, if appropriate, in areas that need improvement.
· Provide means for employees to responsibly balance work and family life, including flexible work times.

· Work toward diversity within and reduce distinctions between all levels of the organization by compensation, culture, gender, sexual orientation, and so forth.

Basic Rights

· Provide fair pay, benefits, and job security.

· Guarantee the right to free speech and access to information.

· Enable employees to raise concerns with those in authority and guarantee due process for those who feel unfairly treated.

FOOD

Meals eaten in company cafeterias often make up a major part of employees' diets, and are therefore important for the maintenance of health and productivity. Healthy eating patterns at work may carry over to home dietary practices. Moreover, a company's expenses for health insurance, as well as losses through medical absences, can be reduced by improving the employees' overall health.
A company is wise to provide a wide range of nutritional and health information to all employees. Basic and well-established facts about the bad effects of diets high in fat, salt, and sugar should be made available through booklets, bulletin-board materials, and after¬hours lectures to which spouses, domestic partners, and friends are invited. Some companies provide gyms or other exercise facilities (and conduct classes to augment individual alcohol and weight¬reduction programs). Others provide shower and changing rooms so that some employees can obtain desirable exercise by bicycling to work.
If an outside food concessionaire runs the company cafeteria, its menus should be nutritionally audited; if the concessionaire is unable or unwilling to make needed improvements, the company should consider operating its own kitchen. Having a kitchen on the premises generally provides fresher and more nutritious meals, better matched to the tastes of the employees. Edible wastes, if they cannot be avoided, can sometimes be donated to nonprofit food kitchens. The surroundings in the cafeteria should be pleasant, with natural light, ventilation, and greenery. Plastic and "dispos¬able" plates, cups, and utensils should be avoided or carefully recy¬cled. Inedible food wastes should be composted for use on company landscaping.
People' feelings about food habits run deep, so improving the healthiness of cafeteria food (while preserving or encouraging ethnic as well as international tastes) needs to be accomplished by gentle stages. Nevertheless, it should include such basic goals as:

· Lower fat, salt, and sugar content
More fiber content
· More (fresh) vegetables and fruits

It can be helpful to label cafeteria dishes and foods with pro¬tein, sodium, calories, and fat content as well as prices. Menus should provide sufficient alternatives for vegetarian employees. When break¬fast is offered, it should include low-fat yogurt, oatmeal, whole-wheat rolls, and other alternatives to the "standard" high-cholesterol break¬fast. Teas, including noncaffeinated or herb teas, should always be available.
Vending machines inside or around company facilities should also be reviewed, to make sure they offer fruit juices and low- or nonfat milk as an alternative to soda drinks and coffee; and nuts, sunflower seeds, and healthy snack bars as alternatives to candy bars and chips. If concessionaires are unable to provide these, the compa¬ny should operate its own machines.

Household Counseling

While industry is the greatest single source of pollution, households are estimated to be responsible for around 30 percent of total envi¬ronmental burdens. Encouragement of employee families to adopt less damaging practices is therefore of great importance: driving less, conserving water and energy, using alternatives to pesticides in the home and garden, using returnable containers and recycling paper, avoiding excessive packaging, and so on. Excellent popular guides, such as Fifty Simple Things You Can Do To Save The Earth (Earth¬works Group 1991), contain handy tips easy to put into practice, and should be brought to the attention of all employees.

HUMAN RELATIONS

Experienced and successful managers know that good relations with and among employees are essential to a healthy company. The litera¬ture on human relations in industry is extensive, and we offer here only a few observations that particularly relate to the company as an environment for the people who inhabit it.
A company's internal human environment cannot be considered in isolation from its community, any more than the company’s wastes or emissions. Company policies on such basic matters as wage levels, child care, and family care leave, for instance, ramify throughout a community, producing either economic stress or eco¬nomic comfort in families. These have major effects on children's performance in schools and later on adults' performance at jobs, and on levels of social services that need financing by the community. If relations with employees on the job are highly combative, it is unlikely that there can exist a productive cooperation between the company and citizen groups partly made up of employees. In recent years many techniques for improving human relations and securing full cooperation between management and employees have been developed. Aside from the work-organization matters mentioned above, these include:

* Providing employee stock ownership as a means of giving
employees a direct stake in the success of the company. This seems to work best when combined with employee representa¬tion in management. (In Germany, workers often have one seat on the company board of directors.) Customer and community ownership of stock might also be encouraged.

* Managing to promote cooperation rather than interpersonal competition. It has been demonstrated through hundreds of psychological experiments that people learn and perform better in cooperative situations (see Kohn 1986).

· Offering mediation processes to resolve on-the-job problems quickly, without having to resort to official grievance proce¬dures.

· Rewarding employees (and employee teams) for useful sugges¬tions through substantial awards of money plus public atten¬tion.

· Evaluating corporate "social performance" on equal treatment of all employees irrespective of race, sex, ethnic identity, religious preference, sexual preference, physical health, and so on. Ana¬lyze relevant company statistics on employee hiring, promotion, compensation, and other personnel-related matters. Educate all employees about problems such as sexual harassment and racial stereotyping.

Developing cooperative working relationships with unions and regulatory agencies on such matters as health and safety.

CHECKLIST #1 I
TRANSPORTATION

1. Implement Antipollution and Energy-Saving Measures in the Short Term
A. Use unleaded fuel. Consider propane, natural gas, or electric propulsion for such equipment as forklifts and pickup trucks.
B. Safely dispose of used antifreeze and other hazardous sub¬stances; recycle used engine oil.
C. Consider improving maintenance and retrofit options on com¬pany vehicles.
* Keep vehicles well tuned to reduce emissions and increase energy efficiency.
* Retrofit older vehicles with improved exhaust- and noise¬control devices.
· If company vehicles need air conditioner servicing, have it done by a shop with "vampire" equipment to capture CFCs.
D. Choose asbestos-free brake and clutch plates.
E. Consider purchasing retreaded tires.
E When purchasing new vehicles,
· Inquire about energy-efficient vehicles, fitted with advanced exhaust and noise-control devices even if not legally required in your country.
· Make safety a priority: include options such as air bags, automatic seat belts, and other safety devices.
· Request information on ecological and health effects of different paints used on vehicles.
G. Support or offer partial payment for driver-efficiency courses for employees.
Recommend unaggressive driving:
Reduces fuel use
Reduces noise pollution
Lessens stress for the driver

2. Reduce Unnecessary Transportation
A. Analyze travel schedules of employees in all departments.
* Coordinate events to minimize travel, especially cutting down on jet travel which causes air pollution in the strato¬sphere.
· Rely on facsimiles rather than courier services when appro¬priate.
B. Consider purchasing more supplies locally.
C. Consider subsidizing employees who are willing to live nearer their place of work.

3. Support Efficient Transportation
A. Plan movement of goods and components internal to the com¬pany to optimize energy efficiency.
B. Consider using electric vehicles, taking into account environ¬mental damage caused by the generation of the electricity.
C. Provide bicycles and/or motor scooters for on-site trips.
D. Buy vans to be shared by employees who commute.
E. Reward employees who use alternative transport such as car¬pooling, vanpooling, mass transit.
* Provide free parking in areas where parking spaces are few or costly.
* Consider paying substantial sums to employees who form car pools.
· Give rebates to employees who use public transit; provide company site for selling of reduced-price tickets.
· Provide free shuttles to and from local public transit stations.
CHECKLIST # 1 2
THE PHYSICAL PLANT AND ITS ENVIRONS

1. Site Selection
A. Inspect the site and official environmental data to determine what pollutants might be present.
B. Evaluate site in terms of potential "natural" risks from active geological faults, floods, radon gas, and other elements.
a If occupying site, take risks into account when planning buildings and open spaces.
C. Research regional pollution problems that might endanger employees, for example, nearby nuclear plants, oil refineries.

2. Design/Redesign Buildings for Well-Being of Users (see also Checklist #10, Workplace)
A. Take account of topography and climatic conditions in fixing ecologically efficient design.
Position work space for efficient heating and cooling.
Install appropriate energy-efficient window coverings.
· Upgrade insulation.
B. Plan internal organization and working procedures so that one workplace does not adversely affect another; consider, for exam¬ple, noise, dust, fumes, chemicals, electromagnetic radiation.
C. Use human health and energy-economy criteria in planning heating, air-conditioning, and ventilation systems.
· Hire professional firm to conduct an initial air quality audit so that some potential problems can be eliminated by increasing fresh air flows.
· Monitor employee complaints and illness (even blood and urine samples if volunteered) to help identify so-called CC sick building syndrome." Act quickly to identify and resolve interior pollution problems.
Select windows that can be opened.
Aim to use energy systems that allow employees to set tem¬peratures local to their workplace.
D. Have daylight, when possible, in all workplaces, corridors, and stairways; it is preferable to artificial light.
E. Create an aesthetic workplace, giving employees a say in the decor, and providing for ethnic and cultural differences.

3. Building Materials and Interior Maintenance
A. Select interior materials that do not pose a health risk.
Avoid new furnishings or carpets that release formaldehyde or pesticide fumes.
· Make cautious use of wood that has been impregnated with volatile preservatives.
· Favor relatively problem-free paints.
B. Remove or seal all asbestos or other similar health hazards if present.
C. Avoid using wood from depleted species, such as teak or mahogany; rely on species suited to sustainable production.
D. Choose natural local materials when possible.
E. Seek alternatives for interior pesticides, rodenticides; warn employees in advance of spraying.
F. Choose cleaning supplies that minimize or eliminate exposure to hazardous substances.

4. Transforming the Landscape
A. Design or retrofit building to respect the local landscape and nearby architecture.
B. Extend foliage areas by planting vines on trellises or walls, for shade and energy-saving as well as pleasing appearance and habitat development.
C. Reduce energy requirement for building by planting wind¬breaks of fast-growing trees and shrubs.
D. Increase energy efficiency by planting deciduous trees near windows that face south.
* Warn employees if and when pesticides or herbicides are used
on the grounds.
· Seek alternatives to chemicals for weed and rodent control; investigate Integrated Pest Management techniques.
E Create a tranquil outdoor space in which employees can relax.
· Consider foot and bicycle paths, single and multiple seating accommodations, pleasing visual and fragrant surpris¬es, wind and weather monitors, seasonally varying landscapes, and so forth. Consider ponds or fountains (with recirculated water).
G. Consider allocating vacant land for neighborhood residents to create gardens; if food plants are to be grown, check before¬hand for possible contaminants.
H. Even if on a small scale, designate a portion of the site for a wild open space. Employ habitat restoration techniques in these areas. On substantial properties, hire local restorationists to reestablish appropriate indigenous ecosystems.
· Intersperse plants that supply foods, such as berries or fruits, for local wildlife.
Sow wildflower meadow for color and nectar.
Design special niches for animals, lizards, toads, butterflies, and other fauna.
Create dense thickets to provide protection for wildlife.
If appropriate, construct bird houses or nesting platforms.
Reintroduce rare natives as specimen plants if they can be protected.
I. To reduce water consumption and gardening labor costs, use indigenous plants for landscaping.
J. If certain areas on company property are especially suited for wildlife, designate these as "habitat preserves." Such areas could include: Ponds, Stream beds, Marsh areas, Dry washes and intermittent creeks Hillocks
Rocky outcrops, · "Natural" corridors or congregation areas for insects, birds, lizards, mammals, and other fauna
K. Check site for historic or archaeological features, and make them a special point of interest.

5. Planning for On-Site Environmental Emergencies
A. Develop an environmental accident response plan (evacuation procedures, backup energy and water supply, first aid, radio and phone links, etc.) in preparation for
Severe earthquakes Tornadoes, cyclones, hurricanes
* Chemical explosions Hazardous waste spills Floods
· Fires
· Toxic fume emissions
B. Educate employees about their responsibilities (and suitable safety equipment) in the event of emergencies.
C. Include neighbors in emergency planning. Educate the com¬munity about possible risks engendered by the company's operations and what they can do to protect themselves in the event of emergencies.
D. Schedule drills for different eventualities with employees and within the community.
E. Install automatic emergency monitoring and shutdown tech¬nologies for operations that involve potentially hazardous substances.
G. Install automatic alarm systems to alert employees and nearby community of accidental pollutant releases or other dangers requiring immediate response.


CHECKLIST# 1 3

INTERNATIONAL BUSINESS RELATIONS

Environmental and social legislation functions most effectively within countries where the spirit as well as the letter of the law can be relatively well understood. By contrast, in international contexts where cultures and values diverge, the system of laws and conventions tends to break down. There is a global economy, but no simple mechanism for ensur¬ing global responsibility. As a consequence, international business rela¬tions need special attention from an ethical standpoint.
The following Elmwood Institute principles can serve as a base for formulating international corporate goals.
· Awareness of global interdependence
· Peace and nonviolence
Human rights
· Social and economic justice
· Personal and social responsibility
· Decentralization of economic and political power
· Cultural diversity
* Postpatriarchal consciousness
· Ecological wisdom

Social and legal conditions, economic resources, and cultural factors must be considered in developing international corporate con¬ventions, but these should not overwhelm ecological and humanistic aims.
1. Establish Goals
A. Brainstorm ideal standards for basic environmental and social goals for overseas production sites. Various United Nations Educational and Cultural Organization (UNESCO) materials may help in defining ethical relations among disparate cultures.
B. Collect information on goods produced or consumed (in whole or in part) in foreign countries.

2. Respect the Community
A. Develop knowledge about the history and culture of foreign areas where you do business.
B. Respect the local architecture, food, language, and culture.
C. Reconsider your advertising, selling, and marketing strategies.
Be sensitive to the problem of racial, class, ethnic, reli¬gious, or sexual stereotyping.
· Be sensitive to the problems created by introducing non¬sustainable life-styles that may be disruptive to the community.
D. Respect cross_cultural differences in the way people organize and shape their relations with the biophysical environment.

3. Negotiate Standards
A. Aim to use foreign producers who apply labor and safety stan¬dards comparable to, or better than, those maintained for sim¬ilar activities in the home country.
B. Write new materials, components, and labor standards into contracts with existing subcontractors.
C. Favor reliable suppliers who express a willingness to negotiate and are sympathetic to the corporate vision.
Verify that subsidiaries and subcontractors are maintaining standards by making periodic on-site checks.
D. Develop guidelines for disinvestment or economic boycott of businesses operating in countries whose governments flagrantly disregard international environmental, civil, or social standards.

4. Implement International Standards (see also Checldist #2, Materials)
A. Ensure that goods intended for export meet or exceed the stan¬dards for protection of the environment and human health applied to comparable domestic products.
B. Aim to pay comparable, fair, and nonexploitative wages to all employees in subsidiary and subcontracted operations.
C. Avoid meddling in local politics.
D. Incorporate International Labor Organization (1988) con¬ventions regarding wages, hazards, unionizing, race and gender discrimination into contracts; require that these be met or exceeded by firms in all signatory and nonsignatory nations.
E. Aim to eliminate categories of race, gender, ethnicity, religion, and so forth as discriminating factors in employment, promo¬tion, compensation.
E Do not use countries with lower legal standards as a repository for dangerous production processes or wastes.
G. Provide employees and consumers concise information on how to use, transport, store, and dispose of goods to minimize neg¬ative environmental or human health consequences.
* Provide technical training or information about products that are intrinsically dangerous.
* Label hazardous products in the language of the country of use.
H. Restrict or discontinue products if necessary for the protection of the environment or the health of the community.

5. Bioregional Considerations
A. Study applications to foreign operations of such concepts as
· Sustainability
Biodiversity
Appropriate Technology
Culture
6. Resources
A. In your strategy sessions, consider whether extreme concentra¬tion of economic and political control over resources is a desir¬able outcome.
B. Support sustainable resource economies.
C. If you incorporate small scale crafts economies into your oper¬ations, do so in a fair manner.

7. Respect Life
A. Boycott trades (ivory, turtle shell, and other goods) that depend on endangered, threatened, or otherwise rare species, such as the elephant and walrus, green sea turtles, rhinoceros.
B. Find substitutes for goods obtained through technologies and techniques (such as drift nets) that are unnecessarily destructive to wildlife or habitat.

8. Implement More Advanced Ecological Strategies and Practices
A. Centralize information on alternative sustainable production processes in fisheries, agriculture, forestry, and so forth.
B. Stimulate markets for new sustainable technologies.
C. Communicate ecologically successful practices and technical improvements in production processes to other companies (unless economically unfeasible).
0 Consider forming co-op buying groups.
D. Start a computerized network of information among ecologi¬cally conscious corporations.
E. Publicize your efforts to become ecologically and socially responsible, in your catalogue, brochure, company newsletter, annual report, and to interested environmental organizations.


GETTING STARTED: PRIORITIES ANDACTION PLANS

n planning a company's approach to ecomanagement, it is not possible or desirable to do everything at once. Developing eco¬logically sound practices in a company will require years of con¬sistent effort, carefully planned and put into effect with good business judgment. Here are some priority considerations that can help orga¬nize the effort. Business priorities dictate paying attention first to legal requirements, then to steps that will save the company money or increase profits, then to steps that are neutral economically, and finally to measures that may be a burden on the company or are of high risk in that connection.

ECOLOGICAL PRIORITIES

The Environmental Protection Agency (EPA) has recently rated the
worst ecological problems facing the world as follows (Roberts 1990).
The rank order is not of great significance.
· Global climate change
· Stratospheric ozone depletion
· Habitat alteration
· Species extinction and biodiversity loss
· Air pollutants (e.g., smog)
· Toxic air pollutants (e.g., benzene)
· Radon gas
* Indoor air pollution
· Drinking water contamination
· Occupational exposure to chemicals
* Applications of pesticides

It can be reasonably argued that company actions that may affect endangered species and the biology of large areas (e.g., rain forests) can have irreparable consequences, and should thus be first in line. (Where company activities have disturbed wildlife habitats, restoration work should be undertaken.) The elimination of CFCs is also a very high priority. Discharges that affect air quality or drink¬ing-water aquifers also require priority attention; in some cases, indoor air quality in plants (or even offices) may present surprisingly severe risks. Possibilities of catastrophic accidents are also very high on the list for individual companies, followed by health hazards on the job or in the neighborhood of company facilities, which can have grave legal, economic, and public relations aspects. Emergency and evacuation plans, drills, and other emergency measures should be worked out and publicized (including earthquake plans in seismic areas).
The public ranks toxic waste problems at the top of its ecolog¬ical worries, along with nuclear hazards, oil spills, acid rain, and other concerns. N"ile these issues are not rated as overwhelmingly impor¬tant by the EPA science committees, they do of course require atten¬tion from the industries in question.
On the next level of importance, turn to considerations of cut¬ting water, energy, and raw material use in present processes. After that, attention can be given to process inputs: using more ecological¬ly desirable materials. Processes themselves can then be altered by adopting different technologies or improving existing ones. Emittedsubstances and heat can be redirected, recycled, or reused. Once that is accomplished, residual detrimental materials (and noise) can be contained and managed for the protection needed to avoid special clothing or equipment for employees.

HUMAN RESOURCE AND ORGANIZATIONAL PRIORITIES

It is best to begin in departments of the company where employees are already interested in ecological improvements. When new staff are being hired for any department, their environmental knowledge should be taken into account. Environmental managers should be people who are qualified in ecology, business economics, and psy¬chology. In large companies, it is unwise to set up a massive central¬ized bureaucracy for ecological matters; self-regulating ecological units throughout the company with some central coordination are a better ideal, but require real and lasting commitment from top management. Through proper training and motivation, all managers in the compa¬ny should become ecologically minded.

HUMANHEALTH AND PSYCHOLOGICAL PRIORITIES

From a social standpoint, first in line are health hazards, which can have grave legal, economic, and public relations impacts. For exam¬ple, restrict the use of carcinogenic pesticides, consider alternatives to formaldehyde-laden new carpets in the office, and monitor any toxins which are stored, used, created, or released by the company. Good corporate citizenship requires vigilance with regard to the health of the employees and the neighboring community.
Give priority to habit-forming or example-giving steps; for example, adopting recycled toilet paper and office stationery sends a message to all who use them. Use human-interest stories to dramatize the importance of ecological measures. When steps are taken with dra¬matic and rapid positive effects, such as the adoption of energy-efficient lighting, make sure all employees are aware of the benefits to the com¬pany. Try to move first on matters where a consensus exists among employees, for example, the need for dust reduction; and later, on mat¬ters where there are strong divisions of opinion, for example, provid¬ing smoke-free conditions for nonsmokers in places where no public health regulations yet exist.

PLANNING THE Eco-AUDIT

As with any activity in business, careful planning is essential if eco¬auditing is to be successful. It is important that the people organizing and carrying out the auditing work share an understanding of the auditing process: its objectives, its methods, and its relation to com¬pany policies and structures. This process must also be explained beforehand to the company departments that will be examined during the audit.
Experienced people in the field, including the EPA, view the audit process as an orderly series of actions and conditions, all of which are necessary if the audit is to be productive. These are summarized below. (For large companies, a written description of the auditing pro¬cess is necessary, both for the auditing teams and the auditees.)

1. Definition of the Objectives and Scope of the Audit Program

Some audits, especially in the United States, have the easily defined objectives of ensuring that manufacturing units are in compliance with emission limits or other regulations. As eco-auditing objectives become broader, all aspects of a company's operation may be examined, and questions raised about company operations may seem to infringe on general management matters. Such broadening of scope is therefore probably best accomplished in stages, accompanied by ample educa¬tional work within the company. It is also important to define whether an audit is a one-time activity, or to be repeated on some regular basis, or even a continuing normal activity within the company.
Questions on the confidentiality and custody of the audit report, its distribution, and the relation of the legal department to the audit process must be settled before work begins. The auditing team should have a clear understanding of whether it is expected to make recommendations or merely state facts. A time line for the audit pro¬cess must Aso be established.

2. Top Management Commitment to the Program

As we have emphasized earlier, if strong support is not forthcoming, the audit program will almost certainly be ineffective. Written policy statements approved at the top are one indication of support, but informal signs are equally important: being involved in top-level reporting loops, receiving frequent attention from top managers, and having problems dealt with speedily and thoroughly. The long-term success of an auditing program is closely linked to its ability to involve lower-level personnel in achieving ecological objectives. This can only happen if top management is genuinely and persistently interested. It must also be kept in mind that auditing reports that describe problems can even become a liability for a company if man¬agement does not support prompt remedies for the problems.

3. Independence of Auditors from Audited Activities

Since auditing, especially of the compliance type, may involve criti¬cism of company people, the auditors must have independent status within the company (or as outside consultants brought into the com¬pany). To ensure objectivity, if company employees are used as audi¬tors, they should not be expected to audit activities they formerly supervised, or currently have a connection with. Some tension between auditors and auditees is normal, as in financial auditing; but experienced auditors are skilled at avoiding a posture of blam¬ing. They understand the auditees' point of view and help to devel¬op a cooperative atmosphere for positive solutions that will help the company and all its component parts.

4. Proper Staffing and Training

Auditing work often demands considerable depth of technical knowl¬edge, and a familiarity with industrial processes and practices. The auditing team chosen must possess credible competence in the required areas. If further specialized expertise is required on occasion, the auditing team should know where to find it. In companies where in-house auditing capacity is being established, staff members can join the newly developing professional associations of environmental auditors (see Appendix A), perhaps enter training programs, and develop personal contacts to take advantage of the large body of col¬lective experience that is being built up. The level of quality in audit¬ing work should thus rise steadily. Consultants may also be engaged periodically to help assess the auditing process.

.5. Formal Audit Procedures

Auditing teams customarily prepare protocols, questionnaires, check¬lists, and other aids in organizing their work. This is part of the nec¬essary planning and preparation process and must not be scanted. Much of an auditor's work is time-consuming: interviewing, check¬ing of records, inspecting facilities, and sometimes obtaining labora¬tory tests. The necessary time for such work must be provided for in the audit budget.

6. Reporting

Auditing teams usually report informally on their findings during the audit "field work," sometimes verbally and sometimes through trans¬mitting working papers to the managers involved. These serve as a basis for discussion meetings. During these discussions, misunder¬standings can be corrected, solutions to problems that have been rec¬ognized may be developed, or alternative possible actions laid out. These can then be incorporated into the final report which the audi¬tors deliver to top management; such reports often reflect a consen sus on the problem involved. (More detailed material may be included in reports to facilities managers.) Sometimes responsibilities for corrections or improvements are indicated in the final report, to facilitate later follow-up checks. A closing conference based on the report is generally the conclusion of the audit process.

7. Quality Assurance

Like any business activity, the auditing itself needs scrutiny to ensure its quality. Some checks should be carried out during the process by the auditing team; some, involving the auditees, should be done not long after. Others can be done periodically. A textbook, Environmen¬tal Auditing Quality Management by Ann C. Smith and William A. Yodis (1989), may be helpful in the audit-planning and evaluation process.


CONCLUSION: THE ECOLOGICAL TRANSFORMATION OF BUSINESS

From its small beginnings, the ecological transformation of business has now become a wide and complex movement, characterized by strong currents but also eddies and back¬waters. Few companies can now afford to proclaim themselves unin¬terested in improving their environmental performance. On the other hand, costs and risks remain to be dealt with by managers, and change in some companies seems bound to be both erratic and slow.
In the past few years, cooperation and collaboration between environmental groups and corporate managers has become much more common. Environmentalists have had to overcome their suspi¬cions of business motives, their (often justified) fears of co-optation, and a certain lingering technophobia. While criticism back and forth will continue and even prove productive, it seems likely that we are well into a new period in which all concerned are seeking to minimize the impacts of industrial technology, wherever change is possible, rather than to assess blame or to defend the status quo.

Four areas of concern stand forth:

* The need for innovation, whether in product design or process design and operation.
· The need for responsible controls in adhering to envi¬ronmental standards, whether these are subject to com¬pliance regulations or not.
· Public information on an honest and technically reliable basis, to fiilfill the public's right to know what industrv's impacts are.

· Continued training and education of employees, who are essential to improving a company's environmental performance and whose health and welfare often depend on company policies.

hese comprise an ethical standard for business, along the lines of the German philosopher Hans Jonas's saying: "Always act in such a way that the effects of your actions are not destructive for the future possibilities of human life."

Personal and organizational standards, however, do not always suffice. just as child labor could not be done away with by individual companies but required nationwide prohibition by law, some environ¬mental innovations must be instituted through government regula¬tions that can ensure a level playing field for all companies. In case after case, industries that fought new standards on the grounds that they could not meet them have earned lasting public ridicule when they in fact found it easy to meet the standards. Sometimes, also, international competitive situations require governments to try and bring their nation's companies up to advancing international standards.
Companies that engage in thorough programs of ecomanagement have important marketing advantages as well as, often enough, reduced costs and improved profits. As we enter the twenty-first cen¬tury, it seems likely that the ecological transformation of business will become ever deeper. This change will challenge the very foundations of economics as we have known it (see Figure 7 below, "Perspectives of Ecological Transformation in Industry.") New priorities will have to be defined for institutions and organizations, based on the princi¬ples of sustainability instead of exponential growth. A continual search for new strategies of change seems inevitable, in which eco¬management will have an important role.

--------------------------
Table below is flattened out

I INDUSTRIAL SOCIETY II SUPER-INDUSTRIAL SOCIETY III POST-INDUSTRIAL SOCIETY

Patriarchal, Hierarchic top-down structures
Change and break of roles, hierarchy conflicts Flexible network-like models, synergism
Growth Ephoria Growth limits Principle of Sustainability

Quantitative Fixing
“Qualitative” growth
Integrative growth

Exploitation of raw materials
Recycling, savings
Artificial “natural” products”

Environmental Pollution
Environmental Laws
Environmental restoration

Refuse/waste problems
“Intelligent” closed systems
Nature-integrative processes

Material basic attitude
Saturation, stagnation
Post-material orientation

Product Orientation
Experience Orientation
Insight Orientation

Territorial Expansion
Globalization, planetarism
Worldwide regionalization

---------------------

'Ecomanagement: The Elmwood Guide to Ecological Auditing and Sustainable Business'

Written by Ernest Callenbach, Lenore Goldman, Fritjof Capra, and Rudiger Lutz, and Sandra Marburg.

You can purchase the book at Amazon

Innovation Through Community Collaboration

Below is a concept that validates a vision that I had 15 years ago: The vision was that innovation will no longer be based on IP rights (intellectual property). Instead, inventions will emerge in an open, collaborative, non-secretive way. Of course this is an ideal world - as least for me. However, the concept of innovation ownership and the idea that 'real' innovation only shows up in the bellies of R&D labs, is rapidly fading. Read up below ...

Wikinomics is a new term for harnessing mass collaboration for innovation, growth and profit. The term was coined by Don Tapscott, author of "Paradigm Shift" and "The Digital Economy," and is the title of his newest book. Mass collaboration has created notable breakthroughs like Wikipedia, an encyclopedia with a million authors that's 12 times larger than Britannica; an operating system, Linux; and 150,000 open source applications projects. Mass collaboration means each is constantly updated, revised and corrected by unpaid volunteers. "It's an amazing thing how this organism brings out the antibodies to attack a virus," Tapscott says. The winds of mass collaboration are also changing the way corporations innovate. About five years ago, Tapscott points out, P&G was struggling and its market value had plunged. New CEO A.G. Lafley decided to open the company's R&D to outsiders, tapping their expertise to supplement P&G's staff scientists. Result: P&G is developing deep expertise in what Tapscott calls Wikinomics. "Rather than the 'Not Invented Here' syndrome, P&G has this thing called PFE: 'Proudly Found Elsewhere.' You'd think they'd be threatened by that, but in they actually encourage their researchers to go outside and look for innovations." P&G has even set up reward systems so that their researchers benefit from innovation occurring. They don't have to develop it themselves to reap the rewards. (TomPeters.com)

Read the full interview with Don Tapscott at Tom Peter's blog site. Especially note in the interview that a new approach to creating and/or aquiring innovation has emerged called Innocentive. InnoCentive® is a web-based community matching top scientists to relevant R&D challenges facing leading companies from around the globe. It provides an online forum enabling major companies to reward scientific innovation through financial incentives.

April 5, 2007

Innovation Emerges as Global Transformation and Action

One of inKNOWvate's guiding frameworks is the triad model for innovation that seeks to balance the outcomes of innovation. This triad seeks to balance social, technical, & organizational forms of innovation. Using this 3-lens perspective, one can balance and monitor effectiveness with efficiency in solutions that emerge. Below is one of the most prevailing applications of this model: SOCIAL ENTREPRENEURSHIP, which is becoming a hot movement in world of innovation.

-------------------------------------------------------
Growing Opportunity: Entrepreneurial Solutions to Insoluble Problems

A growing array of apparently insoluble socio-economic, environmental, and governance challenges presses in on decision-makers — including climate change, the risk of global pandemics, the growing threat to natural resources like water and fisheries, and the ever-present issues of poverty and hunger. Growing Opportunity — the first in an annual series of surveys conducted by SustainAbility in partnership with The Skoll Foundation — explores the potential for more entrepreneurial solutions to such challenges.

A New Breed of Leaders Tackles World's Big Problems
Source: GreenBiz.com

WASHINGTON, Mar. 29, 2007 -- Renewable energy, affordable and effective health care, and fighting climate change are just three of the major global problems currently being addressed by a new model of entrepreneurship, according to a new report by SustainAbility, an independent think-tank and consultancy.

Drawing on the results of a survey of more than 100 'social entrepreneurs' -- leaders of organizations whose goals prioritize improving the quality of life for marginalized populations -- the report, "Growing Opportunity: Entrepreneurial Solutions to Insoluble Problems," finds that these organizations have already penetrated deep into industries and markets that large corporations have barely scratched the surface of.

"Individuals from Bonn to Bangalore are seizing the chance to turn challenge into opportunity, in the process pioneering new markets," according to Paul Achleitner, CFO of the financial services company Allianz, which was a major sponsor of the report. "Microfinance, as an example, is now a $9 billion market that is increasingly empowering citizens to realize their full potential in society. Our hope is that collaborating with creative thinkers will help our people realize their full potential -- and to better serve the needs of present and future customers."

Microfinance is an especially fitting example, as Muhammad Yunus, a luminary of the field, was awarded the Nobel Peace Prize this year for his work at Grameen Bank over the last 30 years. The wide success of these small community-based finance projects shows the potential of social entrepreneurship across sectors, according to the report.

The findings from the survey show that although social entrepreneurship is growing quickly, it is still a small field, receiving only an estimated $200 million in financing globally, compared with $200 billion in philanthropic investments each year in the U.S. alone. This lack of access to funding was cited as the primary challenge faced by 72 percent of the survey's respondents, followed by promoting and marketing their organizations.

Social entrepreneurship is fundamentally different from previous, similar enterprises because they are not reliant on funding by governments or foundations to do their work. "NGOs get hooked on a sense of getting when they rely on foundation or non-sustainable funding sources," Keerti Pradhan of Aravind Eye Hospitals told the report's authors. "As a result, people don't apply their brains to different ways to break that barrier of dependency on foundations.... NGOs have huge potential, but huge knowledge gaps exist about how to access market-rate funding sources that could help support non-profit work."

The organizations profiled by SustainAbility differ from most NGOs by their interest in working with businesses to achieve their goals. And the time is right for these kinds of partnerships: the growing global concern about environmental crises is leading to a fundamental shift in how businesses operate.

"Growing Opportunity" describes three phases of business operations with regard to sustainability: an early engagement, often driven by the need to comply with regulations, which the report calls Mindset 1.0; followed by a shift in focus to corporate citizenship (Mindset 2.0); and Mindset 3.0, the coming business trend, ties the growth and success of a business to sustainable operations.

The report's authors identify several reasons why social entrepreneurship is important for businesses to engage. "The world is changing — and with it markets," the authors write. "Social and environmental entrepreneurs do not have all the answers, but they do see the world and markets differently, and the more innovative are experimenting with new business models that could potentially break out of their niches and help transform key elements of the global economy."

This new "Mindset 3.0" has the ability to, and even at times the express goal of, rebooting entire economic and political systems, replacing inefficient or corrupt practices in exchange for community-tested, market-driven solutions. "Growing Opportunity" looks in-depth at two industries -- health care and energy -- that have already benefitted from an upheaval of social entrepreneurship.

"Social entrepreneurs ... are set to have a profound impact on the world's most complex societal and environmental challenges," said John Elkington, founder and Chief Entrepreneur of SustainAbility. "Their impact may be limited by their current scale, but could be limitless with the right business partners."

The full report pdf downloadable file, "Growing Opportunity: Entrepreneurial Solutions to Insoluble Problems," is available for download from GreenBiz, and more information is posted at SustainAbility.com.