Corporate Environmentalism Radical Change or Greenwash

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Corporate EnvironmentalismRadical Change or
Greenwash?
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• In 1970, University of Chicago economist Milton
  Friedman wrote in the New York Times Magazine
  that any company making pollution control
  expenditures beyond what was "required by law in
  order to contribute to the social objective of
  improving the environment" was practicing "pure
  and unadulterated socialism."

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• In 1995, Harvard strategy professor Michael
  Porter wrote in the Harvard Business Review that
  environmental protection was not a threat to the
  corporate enterprise but rather an opportunity,
  one that could increase its competitive advantage
  in the marketplace. Put another way, he was
  arguing that any company that made pollution
  control expenditures beyond what was required by
  law was now practicing pure and unadulterated
  capitalism.

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Corporate Social Responsibility
A concept whereby companies integrate social and
environmental concerns in their business
operations and in their interaction with their
stakeholders on a voluntary basis. (European
Commission) The commitment of business to
contribute to sustainable economic development,
working with employees, their families, the local
community and society at large to improve their
quality of life. (World Business Council on
Sustainable Development)
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Corporate Environmentalism/Social Responsibility
a History

• From the 1960s

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Four periods of Development of Environmentalism
Industrial Environmentalism (1960-1970)
Regulatory Environmentalism (1970-1982)

Environmentalism as Social Responsibility
(1982-1988)
Strategic Environmentalism (1988-1993)
Environmentalism as brand (1993-)
From Heresy to Dogma An Institutional History
of Corporate Environmentalism. Hoffman, Andrew
J.(2001) Stanford University Press
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The 60s

• The chemical industry had fervently rejected the
  conclusions of Rachel Carson's The Silent Spring
  in 1962, denouncing her personally and parodying
  her book with a version produced by the chemical
  company Monsanto called The Desolate Year.
• The oil industry had denied the environmental
  effects of the 1969 Santa Barbara oil spill and
  the health effects of lead, arguing at one point
  that politically inspired air pollution
  regulations would put the automobile out of the
  reach of the average American.

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The 60s

• Industry fundamentally free to determine its
  environmental management system. Corporate
  environmentalism came into existence early 60s
  for chemical industry (pesticides) and mid 60s
  for oil industry (emissions and spills).
  Environmentalists not influential seen as
  political extremists, not scientifically
  respectable.

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Regulatory Environmentalism 1970-1982

• The EPA was formed in USA.
• Industry became increasingly defensive and
  efforts directed at technical compliance with
  regulation. Environmental Management had a low
  status and ancillary role.
• Limits to growth argument of the
  environmentalists not bourn out

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Environmentalism as Social Responsibility
(1982-1988)

• In USA Reagan failed to rein in the activities of
  the EPA. Environmental activists grew in strength
  and influence. Worried about public confidence
  industry began to establish environmental rules
  as a sign of social responsibility became more
  cooperative with government. Managerial
  structures developed to achieve emissions
  compliance. Environmental credentials became an
  important aspect of the brand.

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Strategic Environmentalism (1988-)

• Power balance between industry, government and
  activists began to equalize. Industry began to
  adopt a proactive stance on environmental
  protection.
• Board-level environment committees publication
  of environmental reports.
• Environmental concerns reached cognitive level.
  Accepted norm.
• Incorporation of a public relations component in
  environmental strategies.

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Environmentalism as brand (late 90s to date

• Stakeholder dialogues
• Incorporate the environmentalists image transfer

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Greenwash?
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In 1999, "greenwash" entered the official lexicon
of the English language through its inclusion in
the Concise Oxford English Dictionary. Oxford
defines greenwash as  "Disinformation
disseminated by an organization so as to present
an environmentally responsible public image.
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Greening the World or 'Greenwashing' a
Reputation? Exxon's role in Stanford's huge
environmental-research project attracts attention
and questionsIt's hard to pinpoint what is most
jaw-dropping about Stanford University's new
Global Climate and Energy Project the sheer size
of the 225-million, 10-year project or that
Exxon Mobil is the chief sponsor.The project,
hailed by Stanford leaders as "a revolutionary
collaboration," is stirring both marvel and worry
among scientists and activists who focus on
energy and global-warming issues. Landing a
project of this size and scope is clearly a coup
for Stanford. The project will involve
researchers from Stanford and institutions around
the world in developing a portfolio of
clean-energy technologies, as well as techniques
for controlling greenhouse gases produced by
traditional fuels. The amount pledged to this
project is greater than all of Stanford's
corporate research support combined over the past
10 years
http//chronicle.com
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BP

• BP (corporate web site)
• B
• BPs profits expected to be around 11bn this
  year

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• In  1989, as British Petroleum, at a cost of
  about 100 million it  shortened  its name to BP,
  redesigned its logo and  refurbished  its petrol
  stations to promote a greener, more  socially
  responsible image.
•  Jolyon Jenkins wrote in  the  New Statesman and
  Society that BP, a  company  responsible for
  clearing large areas of rainforest  in  Brazil,
  responded to a rise in environmental 
  consciousness in the late 1980s with "a 20 
  million  'reimaging campaign' in which it daubed
  all its  property in green paint and advertised
  its annual  report under the slogan 'Now We're
  Greener Than  Ever.'" 6

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• In 1990 BP had to apologize for an ad  campaign
  that claimed that its new unleaded petrol  caused
  no pollution. 7

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In 1997 BP left the Global  Climate  Coalition
(GCC), a group of 50 corporations and  trade 
associations that had been claiming global
warming  was  unproven and action to prevent it
unwarranted. In  several speeches that year, CEO
John Browne argued  it  was time to act to
prevent greenhouse warming  rather  than continue
to debate whether it would occur.  8    The
question, though, is whether BP's move was an 
indicator of environmental leadership or a
cynical  attempt to manage its reputation. When
BP  left  the GCC, it was receiving adverse
publicity  because  of  its activities in
Colombia. The dramatic break  with  other oil
companies on the issue of global warming 
provided a useful diversion as well as a 
much-needed  refurbishment for a reputation under
attack on  human  rights grounds. In 1997, amid
favorable publicity  about its stance on global
warming, BP's share  price  and profit rose.
Sharon Beder, 'bp Beyond Petroleum?' in Battling
Big Business Countering greenwash, infiltration
and other forms of corporate bullying, edited by
Eveline Lubbers, Green Books, Devon, UK, 2002,
pp. 26-32. http//www.uow.edu.au/arts/sts/sbeder/b
p.html
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BP in Columbia

• Columbias appalling record on human rights
  BPs activities target for terrorists BP
  relied on the  Colombian  army, which created a
  special brigade of 3,000  soldiers toprotect
  installations. In 1996, BP agreed  to  pay the
  Defense Ministry between 54 and 60  million 
  over three years to augment the battalion with
  150  officers and 500 soldiers.

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Only the Logo is Green

•  1991  bp was cited as most polluting company in
  the US  based  on EPA toxic release data.
• 1992 Greenpeace  International named it one of
  Scotland's two  largest  polluters.
• 1999 bp was charged with burning polluted  gases 
  at  its Ohio refinery and agreed to pay a 1.7
  million  fine.
• 2000 BP paid a 10 million  fine  to  the EPA
  and agreed to reduce air pollution coming  from 
  its US refineries by tens of thousands of tons.

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Alaska

• "Between January 1997 and March 1998, BP Amoco
  was  responsible for 104 oil spills in America's 
  Arctic,"  according to US PIRG research.
• 1999 BP  admitted illegally dumping hazardous
  waste at its  "environmentally friendly" oil
  field in Alaska and  was  fined 500,000 for
  failing to report it. It paid  6.5  million more
  in civil penalties to settle claims  associated
  with the waste's disposal.

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Alternative Energy

•  bp has invested heavily in solar power and 
  introduced  a program to reduce its own
  greenhouse gas  emissions.  But despite its
  investment in solar energy, the  company remains
  committed to ever-increasing  production and
  usage of oil and gas. Director of  Policy David
  Rice told the Global Public Affairs  Institute in
  London, "We make no secret of our  intention to
  grow our core exploration and  production 
  business and to continue our search for new 
  sources  of  oil and gas."

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Global Warming Giant
And while bp has promised to reduce its own 
emissions,  it does not accept the need to reduce
those  arising  from the products it sells.
Browne argues the  company's contribution is
relatively small "If  one  adds up the emissions
from all of BP's operations  and  from all the
products we sell, it comes to around  one 
percent of the total emissions from human 
activity."  By  1999  BP's emissions were
greater than those of Central  America, Canada or
Britain, according to Corporate  Watch. 41 And
BP's recent acquisitions mean the  company is now
thought to be responsible for about 3 percent of 
worldwide greenhouse emissions.
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bp  is  seeking government permission to explore
in the  Arctic  National Wildlife Refuge (ANWR),
one of Alaska's  last  remaining pristine
wilderness areas, 44 through  lobbying and
donating to politicians and  funding  the lobby
group Arctic Power. 45 President George W. Bush
pledged to open the Refuge to oil drilling during
his election campaign.
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Shell and BP Amoco
Emissions trading etc.
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What do you think?

• Examine the issues
• Draw a conclusion