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business, British Gas is spending heavily on its land cleanup, ICI continues to publicize its painful reinvestment program, British Petroleum continues with its massive emissions reduction, National Power struggles with trying to assess the necessary standards for its new generating plant, and British Airways continues to poke its environmental audit into every nook and cranny. These are expensive and painful experiences for leading, well-run companies. The financial benefits are far from clear for any one of them, but they are the costs of staying in business—the costs of their license to operate in today’s world. More flexible government regulations create opportunities for environmental initiatives, but corporate management systems must take advantage of them. Traditionally, government regulations have focused on an imbalance between private and social costs as the basis for regulations. Recent initiatives, such as the Toxics Release Inventory and the EPA’s 50 Program, have sought to provide better information for corporate, customer, and stakeholder environmental decisions. Environmental performance measures must be tied to financial data to determine whether improvements contribute to shareholder value. On the cost side, TQM, which Walley and Whitehead dismiss much too readily, compares the costs of internal failure and external failure to the potential savings from prevention. Those costs must be allocated to specific products and processes in capital-budgeting and costing decisions. In terms of traditional shareholder value, waste-treatment systems also tie up valuable capital compared with less capital-intensive prevention methods. On the revenue side, TQM helps us understand customer requirements and the contribution of environmental performance to customer satisfaction and shareholder value. The companies that survive the next 20 years will produce goods and services whose environmental effects are tolerable to all stakeholders. The environmental “value” of products will have to be weighed against their financial value and consumer preferences. Environmental issues will have to be evaluated according to their relative importance. Executives, therefore, must develop a vision of how a sustainable company operates or at least of how to find the way to do it. But most of the choices we as a society must make and businesspeople must make if their companies are to survive are far more complex with far less empirical decision-making support. Companies in some industries must challenge their reason for being, or their core competencies. Is an oil company in the oil business long term, or in the fuel business, or in the energy business? Is an automobile manufacturer a transportation company? Read carefully between the lines, Al Gore’s book is much more than environmental happy talk; it is a challenge to industry to find solutions by thinking globally and long term. Some industries will bump into scarce resources

national hockey league buffalo sabres full printing flip flops 2
national hockey league buffalo sabres full printing flip flops 2

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