Environmental management in transnational product chains: The case of pesticides Michael Søgaard Jørgensen, DTU Management Bruno Milanez, CESTEH/ENSP/FIOCRUZ
What does transnational product chains imply for environmental protection?
The level of environmental protection is often lower in developing countries and newly industrialised countries
May pose a problem when products are manufactured and/or sold there
The questions in focus:
What type and level of environmental protection in transnational product chains?
What role do international guidelines and standards like ISO14001 have?
A focus on the product chain, the developmental network, the regulatory network and the local networks around a (transnational) product chain. Local network 1: Workforce, supply, regulation etc. Supplier A Supplier B Customer1 Regulatory network 2: Government, Civil society organisation Regulatory network 1: Government, Civil society organisation Local network 2: Workforce, supply, regulation etc. Company Developmental network – here with supplier and customer Final user
Taking advantage of weak environmental governance of industry and/or products in a country? => local adaptation
Recognising the need for capacity building? => aiming at global integration:
Transfer of corporate policy?
Transfer of technology?
Transfer of experience through networking, training etc.?
STEP-model: starting with adaptation to local conditions and gradually moving towards global integration
Four corporate responsibilities discussed by some authors:
The economic responsibility
to be profitable
The legal responsibility
to obey the laws etc. – what is required by society
The ethical responsibility
to do what is right, just and fair – even if the laws don’t tell what (not) to do – what is expected by society
The philanthropic responsibility
contributions to social, educational, recreational and cultural purposes – what may be desired by society
Practice: A Danish pesticide company in transnational product chains
The environmental management of the Danish manufacturer Cheminova has been criticized of:
Lack of information to users of their pesticides in other countries
Production of pesticides in Denmark for export that is not allowed for use in Denmark
Production of pesticides in India that is not allowed to be produced and used in Denmark
Not supporting the re-evaluation of pesticides in Brazil
Cheminova has been forced to focus more on its responsibility towards its customers and suppliers
After public and political pressure and pressure from shareholders Cheminova accepted to start phasing out pesticides banned in EU and after further pressure from FAO, Cheminova accepted to accelerate the phasing out
Recently Cheminova Brazil says they will not go for approval of pesticides in states where irregular use is likely to happen
Danish-Brazilian research about transnational product chains: Cheminova as the first case
How does Cheminova understand the different contexts where it operates?
How does Cheminova see the role of Cheminova, its customers, the end-users, the government regulating that context etc. in securing least possible impact on health and environment
To what extent is Cheminova aware of the differences among the various contexts where it operates?
To what extent do different contexts influence Cheminova’s practices?
To what extents are Cheminova’s practices consistent?
Do Cheminova have a practice which is responsible in the different contexts?
Do Cheminova have practices which are in line with the values, promises etc. in reports, website etc.
The changes in production and consumption patterns
… .when national and international regulation changes
For example: Double Standard and Unfair Trade of Pesticides: the Brazilian case
Who sells pesticides in the process of being banned in the US and/or the EU to Brazil?
Types of regulation shaping transnational businesses
OECD Guidelines for Multinational Enterprises
Basel Convention: transnational regulation of waste
Product regulation: E.g. EU ban of many azo dyes in textiles
Home country regulation:
Only few possibilities for influence for the nation state: Environmental and work environmental conditions for Danish governmental support of FDI (Foreign Direct Investment)
Often some regulation of domestic and foreign products
Host country regulation (developing country; transition country) :
Protection of local industry from import
Regulation of ownership to companies operating in the country
IFZ: Industrial Free Zones where regulation os not enforced
Often weak or lacking product regulation
ISO14001: Weak demands for environmental management in product chains
Section 4.3.1 Procedures for identifying environmental aspects
“ The organization shall establish, implement and maintain a procedure(s)
....to identify the environmental aspects of its activities, products and services within the defined scope of the environmental management system that it can control and those that it can influence taking into account planned and new developments, or new or modified activities, products and services”.
(De)constructing scenarios and visions for future practice
Technology as a network of human and non-human actors (actants)
What is needed to make a pesticide work in a more sustainable way………..
Scenarios are stories about people and their activities
Scenarios presuppose a setting
Scenarios include various actors with goals and objectives
Scenarios have a plot by including a sequence of actions and events
The roles supposed to be played by
the supporting infrastructure
the humans (e.g. users, governmental authorities).