Gio vanni Azzo ne , Raffae lla Bianc hi, Re nato Mauri and Giuliano No c i De fining o pe rating e nviro nme ntal strate gie s: pro gramme s and plans within Italian industrie s
Enviro nme ntal Manage me nt and He alth
8 / 1 [1 9 9 7 ] 4 –1 9
ava ila b ilit y of fi n a n cia l r esou r ces ca n n ot im p lem en t a “gr een ” st r a t e gy a im ed a t a n t icip a t in g com p et it or s a n d , h en ce, a t a ch iev in g a n en v ir on m en t -b a sed com p et i-t ive a dva n i-t a ge sin ce ii-t s a d op i-t ion u su a lly r eq u ir es sign ifi ca n t in vest m en t s r ela t ed , for exa m p le, t o t h e in t r od u ct ion of n ew p r od u ct d evelop m en t t ech n iq u es (d esign for r ecyclin g or d esign for d isa ssem blin g) or of clea n t ech n ologies. E q u a lly, it is a lm ost im p ossible t o d evelop com p lex en v ir on m en -t a l p r ogr a m m es – a ffec-t in g -t h e w h ole va lu e ch a in of t h e com p a n y – w it h in fi r m s w h ich p r esen t lim it ed “gr een ” com p et en ces. Accor d in g t o it s st r a t e gic or ien t a t ion , t h e com p a n y d efi n es t h e d e gr ee of p r ior it y t h a t m u st b e a t t r ibu t ed t o en v ir on m en t -r ela t ed issu es. To t h is en d , w e p oin t ou t t h a t com p a -n ies op er a t i-n g i-n t h e sa m e com p et it ive en v ir on m en t a n d u n d er t h e p r essu r es of t h e sa m e m a r k et for ces cou ld d ecid e t o a t t r ibu t e a d iffer en t p r ior it y t o en v ir on m en -t a l issu es ju s-t in r ela -t ion -t o -t h eir s-t r a -t e gic or ien t a t ion .
T h e fi n a l st e p of t h e p r ocess of en v ir on m en t a l st r a t e gy for m a t ion d ea ls w it h op er a t ion a liz-in g t h e d e gr ee of p r ior it y a t t r ibu t ed by t h e t op m a n a gem en t t o t h e en v ir on m en t in t er m s of t h e in t en d ed en v ir on m en t a l st r a t e gy. T h is m ea n s t h a t , a ccor d in g t o it s st r a t e gic or ien t a -t ion , -t h e com p a n y id en -t ifi es p la n s, op er a -t in g in vest m en t s, t h e level of in t er n a l com m it -m en t a n d a ct iv it ies of t h e cor p or a t e va lu e ch a in t h a t m u st b e in volved for t h e effect ive im p lem en t a t ion of t h e select ed st r a t e gy.
Accor d in g t o t h e a b ove fr a m ewor k , it em er ges t h a t a n effect ive m od el a im ed a t su ggest in g a t a xon om y of en v ir on m en t a l st r a t e gies m u st b r in g t o ligh t b ot h ch a r a ct er -ist ics p ecu lia r t o ea ch t y p e of en v ir on m en t a l st r a t e gy a n d t h e t y p e of “gr een ” m a n a gem en t n eed ed for it s im p lem en t a t ion . In p a r t icu la r, t h e a ch ievem en t of su ch ob ject ives r eq u ir es t h e in t r od u ct ion of va r ia bles – gr ou p ed in t o t h r ee m a in ca t e gor ies – d escr ib in g:
1 t h e com p a n y ’s ext er n a l con t ext ; 2 it s st r a t e gic or ien t a t ion ;
3 op er a t in g solu t ion s for t h e im p lem en t a -t ion of ea ch en v ir on m en -t a l s-t r a -t e gy. Figure 1
Gio vanni Azzo ne , Raffae lla Bianc hi, Re nato Mauri and Giuliano No c i De fining o pe rating e nviro nme ntal strate gie s: pro gramme s and plans within Italian industrie s
Enviro nme ntal Manage me nt and He alth
8 / 1 [1 9 9 7 ] 4 –1 9
T h e st r a t e gic a t t it u d e in a fi r m r esu lt s fr om t h e com b in a t ion of va r iou s fa ct or s; d iffer en t com b in a t ion s of t h e p a r a m et er s b elow m ay p r od u ce t h e sa m e st r a t e gic a t t it u d e (see F igu r e 3).
The de gre e o f prio rity attribute d to the e nviro nme ntal variable within the o ve rall pro c e ss o f strate gy fo rmatio n
To id en t ify t h e d e gr ee of p r ior it y a t t r ibu t ed by m a n a ger s t o en v ir on m en t a l issu es, w e h ave t o r evea l w h et h er t h e com p a n y in t e-gr a t es t h e “e-gr een ” issu es in t o t h e p r ocess of st r a t e gy for m a t ion or if it sim p ly con sid er s t h e en v ir on m en t a s a sign ifi ca n t m a n a ger ia l t op ic. Mor e p r ecisely, w e a ssu m e t h a t m a n -a ger s c-a n con sid er su ch en v ir on m en t -a l issu es a s:
• A con stra in t; a ccor d in g t o t h is p er sp ect ive t h e com p a n y d oes n ot a d op t a con t in u ou s im p r ovem en t -b a sed p h ilosop h y r ela t ed t o it s en v ir on m en t a l p er for m a n ce bu t it con -sid er s “gr een ” issu es m a in ly a s a t ech n ica l p r oblem t h a t m u st b e a n a ly sed on ly in r ela t ion t o n ew p r escr ip t ion s of r e gu la t or s or in ca se of cu st om er s’ b ou n d in g r eq u est s w it h a h igh b a r ga in in g p ow er.
• A sign ifi ca n t m a n a ger ia l issu e sin ce t h e com p a n y a im s a t con sid er in g t h e en v ir on -m en t a s a n i-m p or t a n t co-m p et it ive p r ior it y even if t h e im p lem en t a t ion of en v ir on m en t b a sed in it ia t ives h a s a su b or d in a t e im p or -t a n ce w i-t h r esp ec-t -t o p r ogr a m m es a im ed a -t im p r ov in g ot h er com p et it ive p r ior it ies a s q u a lit y, cost , t im e, et c.
• A stra tegic elem en tt o in clu d e in t o t h e over -a ll p r ocess of st r -a t e gy for m -a t ion : in t h is sen se, t h e com p a n y d evelop s com p lex p r ogr a m m es, su ch a s r ecyclin gb a sed in it ia -t ives, -t h a -t a ffec-t -t h e w h ole cor p or a -t e va lu e ch a in a n d , a t t h e sa m e t im e, a ch ieves a h igh level of com m it m en t w it h r e ga r d b ot h t o d e p a r t m en t s in volved in t h e en v ir on m en t a l p er for m a n ce im p r ovem en t p r ocess a n d t o fi n a n cia l r esou r ces em p loyed for t h e a d op -t ion of “gr een ” p r ogr a m m es.
Accor d in g t o t h e a b ove issu es, it clea r ly em er ges t h a t t h e com p a n y ’s st r a t e gic a t t it u d e is t h e m ost im p or t a n t d et er m in a n t for t h e id en t ifi ca t ion of t h e d e gr ee of p r ior it y a t t r ib -u t ed t o en v ir on m en t a l iss-u es w it h r esp ect t o t h e ot h er com p et it ive p er for m a n ce (see F ig-u r e 4).
Figure 3
Main e le me nts c harac te rizing the c o mpany’ s strate gic attitude
Figure 4
Gio vanni Azzo ne , Raffae lla Bianc hi, Re nato Mauri and Giuliano No c i De fining o pe rating e nviro nme ntal strate gie s: pro gramme s and plans within Italian industrie s
Enviro nme ntal Manage me nt and He alth
8 / 1 [1 9 9 7 ] 4 –1 9
In d eed , a d a p t ive fi r m s u su a lly con sid er t h e en v ir on m en t a s a con st r a in t sin ce t h ey essen -t ia lly a d op -t s-t r a -t e gies of follow er sh ip a n d , in t h is sen se, even in r ela t ion t o “gr een ” issu es t h ey on ly r ea ct t o ext er n a l p r essu r es a n d d o n ot d evelop a n y p r ogr a m m e a im ed a t a ch iev -in g sign ifi ca n t com p et it ive a dva n t a ges.
On t h e ot h er h a n d , b ot h a n t icip a t ive a n d in n ova t ive com p a n ies sh ou ld con sid er t h e en v ir on m en t a s a sign ifi ca n t m a n a ger ia l t op ic; t o cla r ify t h e r ole a t t r ibu t ed t o en v ir on -m en t a l issu es b et t er, w e h ave a lso t o con sid er fa ct or s r ela t ed t o t h e com p a n y ’s in t er n a l con fi gu r a t ion a n d t o t h e fi eld w h er e it op er -a t es. In d eed , fi r m s w it h -a n in n ov-a t ive st r -a t e-gic or ien t a t ion a n d op er a t in g in a fi eld w h er e en v ir on m en t -r ela t ed issu es d o n ot h ave a sign ifi ca n t r eleva n ce – a s, for in st a n ce, t h e w a t ch in d u st r y – cou ld con sid er t h e en v ir on -m en t a s a -m a n a ger ia l t op ic a s w ell a s fi r -m s w it h a n a n t icip a t ive a t t it u d e w h en t h ey h ave em p loyees w it h h igh “gr een ” com p et en ces, bu t lim it ed fi n a n cia l r esou r ces.
F in a lly, en v ir on m en t -r ela t ed va r ia bles ca n b e con sid er ed a s st r a t e gic issu es on ly w it h in fi r m s w h ich h ave a n in n ova t ive st r a t e gic or ien t a t ion ; in d eed , su ch a d e gr ee of p r ior it y a t t r ibu t ed t o t h e en v ir on m en t a l va r ia ble r eq u ir es m a n a ger s t o a d op t con t in u ou s in n o-va t ion , t o est a blish st r a t e gic a llia n ces a n d con ver t ext er n a l w ea k sign a ls r ela t ed t o t h e ch a n ge of en v ir on m en t a l aw a r en ess in t o op p or t u n it ies for t h e com p a n y.
The re sulting e nviro nme ntal strate gie s At t h is level, w e ca n id en t ify t h r ee en v ir on -m en t a l st r a t e gies, ea ch on e cor r esp on d in g t o a sp ecifi c d e gr ee of p r ior it y a t t r ibu t ed by t h e com p a n y t o “gr een ” issu es. H en ce, w e d ist in -gu ish a m on g a p a ssiv e, rea ctiv ea n d a nin te-g ra ted en v ir on m en ta l stra tete-g y(see F igu r e 5 ), w h er e:
• by a p a ssive st r a t e gy, w e r efer t o com p a n ies in t r od u cin g en v ir on m en t a l p r ogr a m m es on ly in r esp on se t o sign ifi ca n t ext er n a l p r essu r es;
• a ccor d in g t o a r ea ct ive st r a t e gy, t h e com -p a n y in t r od u ces a for m a l sy st em a im ed a t p la n n in g t h e b est “gr een ” p r ogr a m m es for r ed u cin g it s im p a ct on t h e st a t e of n a t u r a l r esou r ces r esu lt in g fr om b ot h p r od u ct s a n d p r ocesses;
• by a n in t e gr a t ed en v ir on m en t a l st r a t e gy, w e r efer t o com p a n ies w h ich in t e gr a t e en v ir on m en t a l issu es in t o t h e over a ll p r ocess of st r a t e gy for m a t ion a n d a ch ieve a h igh level of com m it m en t a s r e ga r d s t h e sy st em of a ct iv it ies a n d h u m a n r esou r ces in volved in t h e d evelop m en t of t h e com -p a n y ’s en v ir on m en t a l -p er for m a n ce. T h e d evelop m en t of ea ch en v ir on m en t a l st r a t e gy d e p en d s on t h e com p a n y ’s st r a t e gic or ien t a t ion , t h e com p a n y ’s in t er n a l con fi gu -r a t ion a n d t h e ch a -r a ct e-r ist ics of t h e com p et i-t ive en v ir on m en i-t w h er e ii-t op er a i-t es; in p a r i-t ic-u la r, t h e id en t ifi ca t ion of t h e la t t er fa ct or s a llow s u s t o id en t ify t h e fea sib ilit y of ea ch “gr een ” st r a t e gy.
Som e com b in a t ion s of t h ese fa ct or s ca n m a k e a n en v ir on m en t a l st r a t e gy m or e su s-t a in a ble.
An in t e gr a t ed st r a t e gy ca n b e m or e effec-t ively d evelop ed w ieffec-t h in com p a n ies w h ich h ave r eleva n t fi n a n cia l r esou r ces, h ave em p loyees w it h a good en v ir on m en t a l cu lt u r e a n d w it h h igh “gr een ” cor e com p et en ces, b ot h fr om a t ech n ica l a n d a m a n a ger ia l v iew -p oin t . Refer r in g t o t h e in fl u en ce t h a t fa ct or s r ela t ed t o t h e com p a n y ’s ext er n a l con t ext exer t on t h e com p a n y ’s over a ll p r ocess of st r a t e gy for m a t ion , w e h ave fou n d t h a t t h e in t r od u ct ion of a n in t e gr a t ed st r a t e gy is con sist en t w it h h igh ly dy n a m ic
Figure 5
Gio vanni Azzo ne , Raffae lla Bianc hi, Re nato Mauri and Giuliano No c i De fining o pe rating e nviro nme ntal strate gie s: pro gramme s and plans within Italian industrie s
Enviro nme ntal Manage me nt and He alth
8 / 1 [1 9 9 7 ] 4 –1 9
p ot en t ia l en v ir on m en t a l a lt er n a t ives d e p en d s on a gr ea t n u m b er of fa ct or s u su a lly r ela t ed t o t h e lea d er sh ip st y le of t h e t op m a n a ge-m en t , t h e coge-m p et it ive en v ir on ge-m en t w h er e t h e com p a n y op er a t es, it s size, a n d t h e a d op t ed en v ir on m en t a l st r a t e gy. H ow ever, t o d escr ib e h ow t h e d ecision -m a k in g p r ocess m u st b e ca r r ied ou t t o su p p or t ea ch en v ir on m en t a l st r a t e gy, w e n eed t o ch a r a ct er ize t h e level of com m it m en t of t h e t op m a n a gem en t in d eci-sion a l p r oced u r e a n d t h e level of d ecieci-sion a l d ecen t r a liza t ion a d op t ed by t h e com p a n y in r ela t ion t o en v ir on m en t a l issu es.
Accor d in g t o t h e a b ove fa ct or s p er m it t in g u s t o a n a ly se in m or e d et a il t h e im p lem en t a -t ion p h a se of ea ch en v ir on m en -t a l s-t r a -t e gy, w e d escr ib e in t h e follow in g u n d er w h ich con d i-t ion s ea ch “gr een ” si-t r a i-t e gic b eh av iou r ca n b e ca r r ied ou t m or e effect ively.
The imple me ntatio n o f a passive e nviro nme ntal strate gy
By t h e a d op t ion of a p a ssive “gr een ” st r a t e gy, m a n a ger s a im a t d evelop in g on ly t h e
in it ia t ives t h a t m in im ize t h e com p a n y ’s en v i-r on m en t -i-r ela t ed exp en d it u i-r es.
Su ch in it ia t ives a r e u su a lly ca r r ied ou t w it h ou t a n y for m a l p la n n in g p r oced u r e a n d , in t h is sen se, t h eir im p lem en t a t ion u su a lly
cor r esp on d s t o r eq u ir em en t s of ext er n a l st a k eh old er s (see Ta ble I).
Accor d in g t o t h ese issu es, it clea r ly em er ges t h a t m ost of t h e p r ogr a m m es a r e d evelop ed w it h in t h e p r od u ct ion d e p a r t m en t a n d , in p a r t icu la r, ca n b e con sid er ed a s en d -of-p ip e solu t ion s – t h is is t h e ca se, for in st a n ce, of som e ch em ica l com p a n ies w h ich h ave in t r od u ced in t h e la st few yea r s n ew eq u ip m en t for im p r ov in g t h e p u r ifi ca t ion of a ir em ission s a n d for r ed u cin g t h e q u a n t it y of solid w a st es. Ow in g t o t h e lim it ed im p or t a n ce a t t r ibu t ed by m a n a ger s t o en v ir on m en t a l va r ia bles, n o sp ecifi c fu n ct ion is in t r od u ced t o m a n a ge “gr een ” issu es. Mor eover, t a k in g in t o a ccou n t t h a t t h e u n iq u e en v ir on m en t a l ob ject ive is t o con for m t h e com p a n y ’s en v i-r on m en t a l p ei-r foi-r m a n ce t o p i-r esci-r ip t ion s of r e gu la t or s, ju r id ica l com p et en ces r e p r esen t t h e k ey in fr a st r u ct u r a l r esou r ces for su p p or t -in g t h e im p lem en t a t ion of a p a ssive st r a t e gy ; in m ost ca ses com m u n ica t ion sk ills a r e n eed ed w h en t h e fi r m ’s a ct ion is d u e t o p r essu r e fr om t h e p u blic. F in a lly, t h e d ecision -m a k in g p r ocess is u su a lly ca r r ied ou t by d ecen t r a lizin g t h e r esp on sib ilit y of t h e d eci-sion m a k er s’ p r oced u r e t o t h e t ea m in volved in t h e sp ecifi c en v ir on m en t -r ela t ed
p r ogr a m m e.
Table I
Manage rial c o nditio ns fo r the e ffe c tive imple me ntatio n o f a passive “ gre e n” strate gy
Passive environmental strategy
Environment-related objective Minimize the c ompany’ s environment-related expenditures Environmental strategy No formal planning proc edures
Environmental programmes
Corporate value chain Produc tion
Produc tion proc ess End-of-pipe solutions
Energetic and water revision and simplific ation of produc tion proc ess Changes related to requirements of external stakeholders
Produc t
Reduc tion or elimination of toxic substanc es Sales
Possible sales of sc raps External c ommunic ation
Open plants Public debates Meetings with students Logistic s
Possible reduc tion of pac kaging expenditures
Possible c hanges related to requirements of external stakeholders
Systemic initiatives Not developed
Environmental department Not required Infrastructural resources
Environmental competences Juridic al and c ommunic ation-related
Environmental culture Not required
Gio vanni Azzo ne , Raffae lla Bianc hi, Re nato Mauri and Giuliano No c i De fining o pe rating e nviro nme ntal strate gie s: pro gramme s and plans within Italian industrie s
Enviro nme ntal Manage me nt and He alth
8 / 1 [1 9 9 7 ] 4 –1 9
The imple me ntatio n o f a re ac tive e nviro nme ntal strate gy
Accor d in g t o t h is st r a t e gy t h e m a n a gem en t of en v ir on m en t a l issu es is con sid er ed a s a n im p or t a n t t op ic for m a n a ger s; in p a r t icu la r, en v ir on m en t a l d ecision s a r e sy st em a t ica lly in clu d ed in t h e over a ll p la n n in g p r oced u r e (see Ta ble II).
Wi t h i n t h i s s t r a t e gi c b eh av i ou r, m a n a ger s a i m a t i m p lem en t i n g en v i r on m en t a l p r o-gr a m m es b ot h i n t h e p r od u ct i on p r oces s a n d i n t h e R&D d e p a r t m en t a i m ed a t op t i m i zi n g
t h e com p a n y ’s r es p on s e t o ex t er n a l p r es s u r es ; i n d eed , P ola r oi d , for i n s t a n ce, by a d op t i n g t h e p r o gr a m m e ca lled “Tox i c Us e a n d Wa s t e Red u ct i on ”, h a s i n t r od u ced a com p lex i n i t i a t ive, a i m ed a t gr ea t ly r ed u ci n g t h e u s e of ch em i ca l s u b s t a n ces a n d t h e p r od u ct i on of s oli d w a s t es, t h a t i s con s i s t en t w i t h t h e d evelop m en t of a r ea ct ive en v i r on m en t a l s t r a t e gy. Si m i la r ly, Be gi n Sa y h a s i n t r od u ced com p lex
p r o gr a m m es for t h e r ecycli n g of w a t er i n i t s s u ga r r efi n er y.
Table II
Manage rial c o nditio ns fo r the e ffe c tive imple me ntatio n o f a re ac tive “ gre e n” strate gy
Reactive environmental strategy
Environment-related objective Develop initiatives optimizing the response to external pressures Environmental strategy Formal planning proc edures
Environmental programmes
Corporate value chain Produc tion and R&D Produc tion proc ess
End-of-pipe solutions Clean tec hnologies
Reuse of industrial waters and energetic rec overy Development of alternative energetic systems
Changes related to requirements of external stakeholders; Produc t
DFD
Development of new produc ts in order to reduc e or eliminate toxic substanc es
Reduc tion of energetic c onsumption Sales
Possible sales of sc raps External c ommunic ation
Open plants
Public debates and press-c onferenc es Meetings with students
Environmental advertising Post-sales
Produc ts rec overy
Extended assistanc e to the c ustomers Logistic s
Possible reduc tion of pac kaging expenditures
Possible c hanges related to requirements of external stakeholders
Systemic initiatives Regulators
Competitors Suppliers Customers Other ac tors
Environmental department Required
Infrastructural resources
Environmental competences Juridic al
Tec hnic al-sc ientific Communic ation-related Managerial
Environmental culture Not required
Gio vanni Azzo ne ,
Gio vanni Azzo ne , Raffae lla Bianc hi, Re nato Mauri and Giuliano No c i De fining o pe rating e nviro nme ntal strate gie s: pro gramme s and plans within Italian industrie s
Enviro nme ntal Manage me nt and He alth
8 / 1 [1 9 9 7 ] 4 –1 9
Table III
Manage rial c o nditio ns fo r the e ffe c tive imple me ntatio n o f an inte grate d “ gre e n” strate gy
Integrated environmental strategy Environment-related objective Ac hieving c ompetitive advantages
Environmental strategy Formal planning proc edures
Environmental programmes
Corporate value chain Inbound logistic s
Suppliers’ selec tion
Purc hase of raw materials/ c omponents with “ green” c harac teristic s
Produc tion and R&D Produc tion proc ess
End-of-pipe solutions Clean tec hnologies
Reuse of industrial waters and energetic rec overy Development of alternative energetic systems Rec yc ling of sc raps resulting from defec tive identified produc t
Produc t DFD
Development of new produc ts Reduc tion of energetic c onsumption De-materialization
Outbound logistic s Carriers’ selec tion
Changes of means of transportation
Changes in quantity, shape and c omposition of the pac kaging
Sales Sales of sc raps External c ommunic ation
Open plants
Public debates and press-c onferenc es Meetings with students
Environmental advertising
Post-sales Produc ts rec overy
Extended assistanc e to the c ustomers
Systemic initiatives Regulators
Competitors Suppliers Customers Other c ompanies Other ac tors
Environmental department Required
Infrastructural resources
Environmental competences Juridic al
Tec hnic al-sc ientific Communic ation-related Managerial
Environmental culture Required
Gio vanni Azzo ne , Raffae lla Bianc hi, Re nato Mauri and Giuliano No c i De fining o pe rating e nviro nme ntal strate gie s: pro gramme s and plans within Italian industrie s
Enviro nme ntal Manage me nt and He alth
8 / 1 [1 9 9 7 ] 4 –1 9
effor t s of t h e com p a n y ; in p a r t icu la r, it s a d op -t ion r eq u ir es -t h e in volvem en -t of m a n y a c-t iv i-t ies of i-t h e cor p or a i-t e va lu e ch a in : for in si-t a n ce, t h e R&D d e p a r t m en t p lay s a cr it ica l r ole in t h e d esign of n ew “gr een ” p r od u ct s w it h a low en v ir on m en t a l im p a ct t o a n t icip a t e m a in com p et it or s’ “gr een ” a ct ion s a n d / or cu s-t om er s’ r eq u ir em en s-t s (see F igu r e 7).
F i n a lly, t h e i m p lem en t a t i on of a n i n t e-gr a t ed s t r a t e gy i s con s i s t en t w i t h t h e i n t r o-d u ct i on of s y s t em i c i n i t i a t ives r eq u i r i n g b ot h t h e i n volvem en t of a ll t h e cor p or a t e fu n ct i on s a n d t h e d efi n i t i on of w ell con s oli d a t ed r ela t i on s h i p s w i t h ex t er n a l s t a k eh old -er s (s ee F i gu r e 8). T h i s i s t h e ca s e, for i n s t a n ce, of t h e i m p lem en t a t i on of t h e d es i gn
of n ew p r od u ct p la t for m s t h a t p er m i t t h e com p a n y t o r ecycle a ll en d -of-li fe m a t er i a ls / com p on en t s : i n s u ch a ca s e t h e i n volvem en t of s h r ed d er s, p u b li c i n s t i t u t i on s a n d cu s -t om er s i s n eces s a r y -t o d efi n e a n effec-t ive r ou t e of en d -of-li fe com p on en t s b a ck i n t o t h e fi r m ’s b ou n d a r i es.
An empirical investigation
To a n a ly se h ow com p a n ies op er a t in g in d if-fer en t fi eld s m a n a ge en v ir on m en t a l issu es in p r a ct ice a n d , h en ce, t o ch eck t h e con sist en cy of t h e su ggest ed t a xon om y of en v ir on m en t a l st r a t e gies w it h r esp ect t o r ea l st r a t e gic
Figure 8
The impac t o f the inte grate d e nviro nme ntal strate gy o n the c o mpany’ s value and supply c hains Figure 7
The impac t o f the re ac tive e nviro nme ntal strate gy o n the c o mpany’ s value and supply c hains Figure 6
Gio vanni Azzo ne ,
Giovanni Bozzetto Chemic al field 1 7 5 8 4
Ilva Polimeri Chemic al field 2 1 5 1 1 0
Ciba-Geigy Chemic al field 2 ,8 0 0 1 ,3 0 0
Dow Chemical Italia Chemic al and plastic fields 5 5 0 8 0 0 Solvay SA Italia Chemic al and plastic fields 2 ,9 0 0 8 1 9 EniChem Chemic al and plastic fields 3 2 ,0 0 0 1 1 ,0 0 0
Fiat Auto Automotive field 1 2 0 ,0 0 0 3 3 ,0 0 0
Iveco Automotive field 3 2 ,0 0 0 8 ,0 0 0
Contitech AGES Supplying automotive field 9 5 0 1 4 3
M acchi Arturo Srl Supplying automotive field 1 5 0 4 5
Rockwell Supplying automotive field 1 2 4 2 8
M GM Sas Supplying automotive field 2 2 4
Pirelli SpA Rubber field 1 0 ,0 0 0 2 ,5 0 0
Contitech AGES Rubber field 9 5 0 1 4 3
Gio vanni Azzo ne , Raffae lla Bianc hi, Re nato Mauri and Giuliano No c i De fining o pe rating e nviro nme ntal strate gie s: pro gramme s and plans within Italian industrie s
Enviro nme ntal Manage me nt and He alth
8 / 1 [1 9 9 7 ] 4 –1 9
• t h e a b sen ce of a n or ga n iza t ion a l u n it sp ecifi ca lly a im ed a t m a n a gin g en v ir on -m en t a l issu es cou ld -m a k e u n fea sible t h e im p lem en t a t ion of ot h er t y p es of “gr een ” st r a t e gies.
Sm a ller com p a n ies oft en r ea ct w it h a com p a r -a t ively r ed u ced or g-a n iz-a t ion -a l in er t i-a .
T h e in d u st r y w h er e a fi r m op er a t es st r on gly a ffect s t h e t y p e of en v ir on m en t a l st r a t e gy a fi r m ca r r ies ou t ; t h e a n a ly sed ca se st u d ies h ave d em on st r a t ed t h a t com p a n ies b elon gin g t o t h e sa m e sect or h ave a d op t ed sim ila r en v ir on m en t a l p r ogr a m m es sin ce t h ey sh a r e t h e sa m e t y p e of p r essu r es fr om ext er n a l st a k eh old er s; in p a r t icu la r, fi r m s w h ich wor k in ch em ica l a n d p la st ic fi eld s (i.e. E n ich em , Bozzet t o, Ilva , Cib a , Solvay a n d Dow Ch em ica ls) h ave d evelop ed a n a n t icip a -t ive or in n ova -t ive s-t r a -t e gic a -t -t i-t u d e w i-t h r e ga r d t o en v ir on m en t a l issu es ow in g t o t h e sign ifi ca n t p r essu r es exer t ed by ext er n a l st a k eh old er s. On t h e ot h er h a n d , com p a n ies op er a t in g in t h e a u t om ot ive fi eld h ave essen -t ia lly d evelop ed a r ea c-t ive s-t r a -t e gy a im ed a -t con for m in g t h e com p a n y ’s en v ir on m en t a l p er for m a n ce t o p r escr ip t ion s set by r e gu la -t or s: in p a r -t icu la r, la r ge, m u l-t in a -t ion a l gr ou p s su ch a s F IAT, by m on it or in g sign a ls follow in g fr om t h e m a r k et , d ecid ed t o sh ift fr om m er ely con for m in g t o en v ir on m en t a l st a n d a r d s t o t h e a n t icip a t ion of fu t u r e evolu -t ion of -t h e ex-t er n a l con -t ex-t , w h ile i-t s su p p li-er s h ave d evelop ed a p a ssive “gr een ” st r a t e gy. Com p a n ies op er a t in g in t h e r u bb er in d u st r y h ave a lm ost a d op t ed a p a ssive st r a t e gy sin ce
“gr een ” cu st om er s a n d p u blic in st it u t ion s h ave con sid er ed , even in t h e la st few yea r s, t h e r u bb er in d u st r y a sect or ch a r a ct er ized by a low en v ir on m en t a l r isk a n d , in t h is sen se, t h ey h ave n ot m a d e a n y en v ir on m en t -r ela t ed r eq u est s t o com p a n ies op er a t in g in su ch a fi eld . F in a lly, t h e in t er v iew ed com p a n ies w h ich op er a t e in t h e t ext ile fi eld h ave m a in ly ca r r ied ou t a p a ssive “gr een ” st r a t e gy sin ce en v ir on m en t a l r eq u est s of “gr een ” cu st om er s a n d p u blic in st it u t ion s h a d a low r eleva n ce; m or eover, su ch com p a n ies a r e lim it ed in size a n d , in t h is sen se, h ave lim it ed m a n a ger ia l a n d t ech n ologica l r esou r ces t o su p p or t t h e effect ive im p lem en t a t ion of m or e p r oa ct ive en v ir on m en t a l st r a t e gies.
In r ela t ion t o t h e com p a n y ’s com p et it ive en v ir on m en t , w e h ave t o d ist in gu ish b et w een m u lt in a t ion a ls a n d cor p or a t ion s w it h p la n t s on ly in It a ly. In ou r op in ion t h e fa ct t h a t t h ey m ay op er a t e in cou n t r ies ch a r a ct er ized by a h igh er en v ir on m en t a l aw a r en ess t h a n It a ly a n d t h e p ossib ilit y of d evelop in g a d ee p er a n a ly sis w it h r e ga r d t o fu t u r e en v ir on m en t a l r eq u ir em en t s r esu lt in g fr om t h e m a r k et , lea d , in a cer t a in sen se, t h e m u lt in a t ion a l com p a n y t o ca r r y ou t m or e p r oa ct ive “gr een ” p r ogr a m m es t h a n a n a t ion a l com p a n y wor k -in g -in It a ly.
References and further reading
An soff, H .I. (1987), Cor p ora te S tra teg y,r ev ised ed ., P en gu in Book s, Lon d on .
ASAM (1992), L a fi gu ra d ell’eco-m a n a ger, ASAM, Mila n o.
Figure 9
Gio vanni Azzo ne , Raffae lla Bianc hi, Re nato Mauri and Giuliano No c i De fining o pe rating e nviro nme ntal strate gie s: pro gramme s and plans within Italian industrie s
Enviro nme ntal Manage me nt and He alth
8 / 1 [1 9 9 7 ] 4 –1 9
Azzon e, G. a n d Ber t elè, U. (1994), “E xp loit in g gr een st r a t e gies for com p et it ive a dva n t a ge”, L on g R a n ge Pla n n in g, Decem b er.
Azzon e, G. a n d N oci, G. (1995), “H ow t o d esign a p er for m a n ce m ea su r em en t sy st em for su p -p or t in g -p r oa ct ive gr een st r a t e gies”, E IASM Br u ssels, T h e Wor k sh op on Gr een in g of Ma n -a gem en t , 12-13 J -a n u -a r y.
Ber gst r öm , S. (1994), “E n v ir on m en t a l con cer n a s a n im p ed im en t t o su st a in a ble d evelop m en t ”, Pr oceed in gs of Con feren ce on th e M a n a gem en t of E n v ir on m en ta l Qu a lity, St ock h olm , 8-12 Au gu st .
Bid d le, D. (1993), “Recyclin g for p r ofi t : t h e n ew gr een bu sin ess fr on t ier ”, H a r v a rd B u sin ess R ev iew, N ovem b er -Decem b er.
Cla r k , R.A. et a l. (1994), “T h e ch a llen ge of goin g gr een ”, H a r v a rd B u sin ess R ev iew,
J u ly -Au gu st .
Ger loff, E .A. (1989), S tra tegie orga n iz z a tiv e, McGr aw -H ill Lib r i It a lia , Mila n .
Gr ay, R. (1990), “Accou n t in g a n d en v ir on m en t a l-ism : a n exp lor a t ion of t h e ch a llen ge of gen t le a ccou n t a b ilit y, t r a n sp a r en cy a n d su st a in a b il-it y ”, E IASM Wor k sh op on Gr een Accou n t in g. H a ss, J .L. (1994), “E n v ir on m en t a l st r a t e gy m od
-els: a r ev iew a n d com p a r ison ”, Pr oceed in gs of th e T h ird B u sin ess S tra teg y a n d th e E n v ir on -m en t Con feren ce, N ottin gh a -m , 15-16 Septe-m ber. H u n t , C.B. a n d Au st er, E .R. (1990), “P r oa ct ive
en v ir on m en t a l m a n a gem en t : avoid in g t h e toxic tr a p”, S loa n M a n a gem en t R eview, Win ter. McKin sey & Com p a n y (1991), T h e Cor p ora te
R esp on se to th e E n v ir on m en ta l Ch a llen ge, McKin sey & Com p a n y, Am st er d a m .
Meim a , R. (1994), “Ma k in g sen se of en v ir on m en t a l m a n a gem en t con ce p t s a n d p r a ct ices: a cr it i-ca l exp lor a t ion of em er gin g p a r a d igm s”, Pr oceed in gs of th e T h ird B u sin ess S tra teg y a n d th e E n v ir on m en t Con feren ce, N ot t in gh a m , 15-16 Se p t em b er.
Me zn a r, M.B., Ch r ism a n , J .J . a n d Ca r oll, A.B. (1991), “Socia l r esp on sib ilit y a n d st r a t e gic m a n a gem en t t ow a r d a n en t er p r ise st r a t e gy cla ssifi ca t ion ”, B u sin ess a n d Pr ofession a l E th ics, Vol. 10 N o. 1.
Mü ller, K. a n d Koech lin , D. (1992), Green B u sin ess Op p or tu n ities – th e Pr ofi t Poten tia l, P it m a n P u blish in g, Lon d on .
N oci, G. (1995a ), “Su p p or t in g d ecision m a k in g on r ecyclin g-b a sed in vest m en t s”, B u sin ess S tra t-eg y a n d th e E n v ir on m en t, Vol. 4 N o. 2. N oci, G. (1995b ), “T h e r ole of en v ir on m en t a l p er
-for m a n ce in su p p ly ch a in m a n a gem en t ”, Pr oceed in gs of th e 2n d In ter n a tion a l S ym p o-siu m on L ogistics, N ot t in gh a m , 11-12 J u ly. Room e, N. (1992), “Develop in g en v ir on m en t a l m a n a gem en t st r a t e gies”, B u sin ess S tra teg y a n d th e E n v ir on m en t, Vol. 1 N o. 1.
Sch ot , J . (1992) “Cr ed ib ilit y a n d m a r k et s a s gr een -in g for ces for t h e ch em ica l -in d u st r y ”, B u si-n ess S tra teg y a si-n d th e E si-n v ir osi-n m esi-n t, Vol. 1 N o. 1.
Sh r iva st a t a , P. (1991), “Cor p or a t e self-gr een w a l: st r a t e gic r esp on ses t o en v ir on m en t a lism ”, 11th A n n u a l Con feren ce of th e S tra tegic M a n -a gem en t S ociety, Tor on t o.
St e ger, U. (1993), “T h e gr een in g of t h e b oa r d r oom : h ow Ger m a n com p a n ies a r e d ea lin g w it h en v ir on m en t a l issu es”, in F isch er, K. a n d Sch ot , J . (E d s), E n v ir on m en ta l S tra teg y for In d u str y, Isla n d P r ess, Wa sh in gt on , DC. Wa lley, N. a n d Wh it eh ea d , B. (1994), “It ’s n ot ea sy
b ein g gr een ”, H a r v a rd B u sin ess R ev iew, May -J u n e, Vol. 72 N o. 3.
Weld for d , R. (1993), “An in t e gr a t ed sy st em s a p p r oa ch t o en v ir on m en t a l m a n a gem en t : a ca se st u dy of IBM UK”, B u sin ess S tra teg y a n d th e E n v ir on m en t, Vol. 2 N o. 3, Au t u m n . Weld for d , R. a n d Gou ld son , A. (1993), E n v ir on m en