Environmental Strategy Concepts and Development

1
Environmental Strategy Concepts and Development

• Four Readings related to Business Strategy and
  the Environment
• Porter and van der Linde
• Walley and Whitehead
• Respondents to Walley and Whitehead
• Stuart Hart
• What is meant by Win-Win?
• http//www.epa.gov/region5/defs/html/caa.htm

2
Green and Competitive Ending the Stalemate

• What stalemate?
• Regulation and the Environment a good thing for
  organizations? Traditional vs. New thought?
• Pollution Inefficiency
• Resource Productivity? Why is this important?
• How does this argument relate to quality
  initiatives?
• How might TQM work with Environmental programs?
• Innovations role with Environment and
  Competitiveness
• Two innovation types
• End-of-pipe
• Prevention
• Examples?
• Does Regulation drive innovation?

3
Green and Competitive Ending the Stalemate

• Why is Regulation needed for Innovation?
• A market drive may be needed to aid innovation.
• What is meant by the rarely see 10 bills on the
  ground?
• Inexperience causes a barrier to environmental
  innovation.
• Organizational inertia is a barrier
• What to do?

4
Green and Competitive Ending the Stalemate

• Environmental Innovation Friendly Regulations
• Create pressure that motivates companies to
  innovate.
• Make sure regulations improve environmental
  quality
• Alert and educate companies about ineffeciencies
  and areas for technological improvement
• improve likelihood that innovations are
  environmentally friendly
• create demand for environmental improvement
• level the playing field making sure every one
  makes environmental investments

5
Green and Competitive Ending the Stalemate

• What needs to be done Overall?
• Remove Static thinking (organizations)
• Make Regulations less adversarial more
  cooperative
• Less specific regs.address whats let
  organizations worry about hows
• Managers need to realize that environmental
  improvement is a competitive opportunity. (org)
• Make environmental decisions internal.not just
  delegated to adversarial external parties (org)
• resource-productivity rather than pollution
  control model must govern decision making (org)

6
Green and Competitive Ending the Stalemate

• What do they recommend to managers?
• Measure direct and indirect environmental impacts
  (cant manage what you dont measure).
• Learn to recognize the opportunity cost of
  underutilized resources
• create bias in favor of innovation based,
  productivity enhancing solutions
• develop proactive relationships with
  regulators/environmentalists.

7
Its Not Easy Being Green

• Should win-win be at the core of an
  organizations environmental strategy?
• Yes? Why?
• No? Why not?
• Do they say lets go back to the old ways?
• What should be maintained?

8
Its Not Easy Being Green

• Two eras of environmental management
• (Fischer and Schot)
• resistant adaptation
• embracing environmental issues with no innovation
• win-win derived from second era.
• Tradeoffs -Where are the tradeoffs?
• What is meant by low-hanging fruit?
• Where to make innovations? Is rabbit-out-of-the-ha
  t a way to solve problems?

9
Its Not Easy Being Green

• What is the trade-off zone?
• What is the value based approach?
• What framework do they recommend?
• What is The Triage Framework?
• Does it make sense?
• Does it help to more efficiently and effectively
  guide environmental spending?

10
Which way?

• Not all win-win opportunities are insignificant
  (Clarke)
• more efficiency in regulatory system still needed
  (Clarke)
• more strategic vision, not operational as win-win
  assumes. (Clarke)
• Are regulations good/bad for competitiveness?
  (somewhere in between).(Stavins)
• What about the rest of the world? (Greeno)
• Are they short-sighted? (Bavaria)
• Regulations inefficient and political
  (Cairncross)
• Porters arguments were for both sides,
  regulators/industry (Esty) etc.
• Anything interesting of note that you found?

11
Green Management Theories

• Resource based view of firm (Hart)
• making the environment a strategic and
  competitive part of the firm.
• Three categories
• PP
• Product Stewardship
• Sustainable development
• Should not only be theory..but actual normative
  practice.