Transcript International Environmental Regimes

Business and the Environment
“Clean, Green, and Rich”
MNCs and the Environment
The Chemical Industry
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Union Carbide: Bhopal, India, 1984
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Toxic gas leak
3,000 + 2,000 deaths
578,000 people affected
Poor safety procedure and maintenance
Poor compensation ($500!)
Poor medical facilitates
Long term damage
No one accountable
MNCs and the Environment
The Greener Chemical Industry
The Responsible Care Program
Under Responsible Care ®, the worldwide chemical industry is
committed to continual improvement in all aspects of health,
safety and environmental performance and to open
communication about its activities and achievements.
 Started by the Canadian Chemical Industry Association, 1985
 After the Rio Summit (1992) the number of RC member
associations grew from 6 to 47
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Components:
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Commitment by each company to a set of guiding principles
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codes, guidance notes and checklists to help companies to fulfill their commitment
(Emergency Response, Research and Development, Manufacturing, Transportation ,
Distribution, Hazardous Waste Management )
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Indicators against which improvements in performance can be measured.
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Open communication on health, safety and environmental matters
Exporting Environmentalism
The Chemical Industry: Exporting
Environmentalism
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Level playing field
Gain a competitive advantage
Community and government relations
Pre-empt regulations
Reduce transaction costs
Examples: Latin America, Eastern Europe
MNCs and the Environment
SHELL
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Shell in Nigeria
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Development
Corruption/lack of transparency
Few benefits for the local community (1.5% to 3%
to 13%)
Environmental impacts
Human rights violations
Similar record in Louisiana (US) and South
Africa
Movement for the Survival of the Ogoni
People (MOSOP
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Demand rights, social,
economic, and evironmental
justice
Lead by Ken Saro-Wiwa
Shell “persona nongrata” in
Ogoniland
Ken Saro-Wiwa sentenced
to death and excuted
Shell sued in NY court by
Saro-Wiwa widow and
human rights organizations
MNCs and the Environment
Shell
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Triple Bottom Line reporting
Industry leader in social policy
Industry leader in mitigating environmental impacts
Climate friendly policies and technology
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GHG emission 5% below 1990 levels by 2010
Solar panels
Hydrogen fuels cells
Partnerships with IOs and NGOs
MNCs and the Environment
Which is the true face of SHELL or the
Chemical Industry?
Why does business adopt environmentally
friendly policies and practices?
Becoming and environmental leader
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Improve public relations
Respond to public pressure
Preempt regulation
Set the terms of debate/regulations
Improve profits through eco-efficiency
Product and price differentiation
Claim new niche in the market
Visionary leadership and management
Business Council for Sustainable
Development
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Ecoefficiency and waste minimization
Corporate responsibility
Technological innovation
Information sharing
Partners in SD governance:
Why do companies become members?
-135 companies, $4,000bn turnover, 11mn employees,
affect 2bn people daily.