17 09 2008 Ms Jorgensen Env Mgmt Transnat Product Chains


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17 09 2008 Ms Jorgensen Env Mgmt Transnat Product Chains

  1. 1. Environmental management in transnational product chains: The case of pesticides Michael Søgaard Jørgensen, DTU Management Bruno Milanez, CESTEH/ENSP/FIOCRUZ
  2. 2. What does transnational product chains imply for environmental protection? <ul><li>The level of environmental protection is often lower in developing countries and newly industrialised countries </li></ul><ul><ul><li>May pose a problem when products are manufactured and/or sold there </li></ul></ul><ul><li>The questions in focus: </li></ul><ul><ul><li>What type and level of environmental protection in transnational product chains? </li></ul></ul><ul><ul><li>What role do international guidelines and standards like ISO14001 have? </li></ul></ul>
  3. 3. 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
  4. 5. Cross border environmental management – between local adaptation and global integration (Hansen 1999)
  5. 6. Several aspects shape cross border environmental management <ul><li>Regulation: international, home country (of ownership), host country (where manufacturing or sale take place) </li></ul><ul><li>Market: focus of competition: quality, innovation, price, responsibility etc. </li></ul><ul><li>Industrial sector: shape of product chains: few or many links from cradle to use => easy to influence and/or control? </li></ul><ul><li>Company: the commitment of the specific company: front-runner, reactive, back-lagger? </li></ul>
  6. 7. Local adaptation and/or global integration? <ul><li>Taking advantage of weak environmental governance of industry and/or products in a country? => local adaptation </li></ul><ul><li>Recognising the need for capacity building? => aiming at global integration: </li></ul><ul><ul><li>Transfer of corporate policy? </li></ul></ul><ul><ul><li>Transfer of technology? </li></ul></ul><ul><ul><li>Transfer of experience through networking, training etc.? </li></ul></ul><ul><li>STEP-model: starting with adaptation to local conditions and gradually moving towards global integration </li></ul>
  7. 8. Four corporate responsibilities discussed by some authors: <ul><li>The economic responsibility </li></ul><ul><ul><li>to be profitable </li></ul></ul><ul><li>The legal responsibility </li></ul><ul><ul><li>to obey the laws etc. – what is required by society </li></ul></ul><ul><li>The ethical responsibility </li></ul><ul><ul><li>to do what is right, just and fair – even if the laws don’t tell what (not) to do – what is expected by society </li></ul></ul><ul><li>The philanthropic responsibility </li></ul><ul><ul><li>contributions to social, educational, recreational and cultural purposes – what may be desired by society </li></ul></ul>
  8. 9. Practice: A Danish pesticide company in transnational product chains <ul><li>The environmental management of the Danish manufacturer Cheminova has been criticized of: </li></ul><ul><ul><li>Lack of information to users of their pesticides in other countries </li></ul></ul><ul><ul><li>Production of pesticides in Denmark for export that is not allowed for use in Denmark </li></ul></ul><ul><ul><li>Production of pesticides in India that is not allowed to be produced and used in Denmark </li></ul></ul><ul><ul><li>Not supporting the re-evaluation of pesticides in Brazil </li></ul></ul><ul><li>Cheminova has been forced to focus more on its responsibility towards its customers and suppliers </li></ul><ul><li>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 </li></ul><ul><li>Recently Cheminova Brazil says they will not go for approval of pesticides in states where irregular use is likely to happen </li></ul>
  9. 10. Danish-Brazilian research about transnational product chains: Cheminova as the first case <ul><li>How does Cheminova understand the different contexts where it operates? </li></ul><ul><ul><li>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 </li></ul></ul><ul><li>To what extent is Cheminova aware of the differences among the various contexts where it operates? </li></ul><ul><li>To what extent do different contexts influence Cheminova’s practices? </li></ul><ul><li>To what extents are Cheminova’s practices consistent? </li></ul><ul><ul><li>Do Cheminova have a practice which is responsible in the different contexts? </li></ul></ul><ul><ul><li>Do Cheminova have practices which are in line with the values, promises etc. in reports, website etc. </li></ul></ul>
  10. 11. Research in social metabolism <ul><li>The changes in production and consumption patterns </li></ul><ul><ul><li>… .when national and international regulation changes </li></ul></ul><ul><li>For example: Double Standard and Unfair Trade of Pesticides: the Brazilian case </li></ul><ul><ul><li>Who sells pesticides in the process of being banned in the US and/or the EU to Brazil? </li></ul></ul>
  11. 12. Types of regulation shaping transnational businesses <ul><li>International guidelines: </li></ul><ul><ul><li>OECD Guidelines for Multinational Enterprises </li></ul></ul><ul><ul><li>Basel Convention: transnational regulation of waste </li></ul></ul><ul><ul><li>Product regulation: E.g. EU ban of many azo dyes in textiles </li></ul></ul><ul><li>Home country regulation: </li></ul><ul><ul><li>Only few possibilities for influence for the nation state: Environmental and work environmental conditions for Danish governmental support of FDI (Foreign Direct Investment) </li></ul></ul><ul><ul><li>Often some regulation of domestic and foreign products </li></ul></ul><ul><li>Host country regulation (developing country; transition country) : </li></ul><ul><ul><li>Protection of local industry from import </li></ul></ul><ul><ul><li>Regulation of ownership to companies operating in the country </li></ul></ul><ul><ul><li>IFZ: Industrial Free Zones where regulation os not enforced </li></ul></ul><ul><ul><li>Often weak or lacking product regulation </li></ul></ul>
  12. 13. ISO14001: Weak demands for environmental management in product chains <ul><li>Section 4.3.1 Procedures for identifying environmental aspects </li></ul><ul><li>“ The organization shall establish, implement and maintain a procedure(s) </li></ul><ul><li>....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”. </li></ul>
  13. 14. (De)constructing scenarios and visions for future practice <ul><li>Technology as a network of human and non-human actors (actants) </li></ul><ul><ul><li>What is needed to make a pesticide work in a more sustainable way……….. </li></ul></ul><ul><li>Scenarios: </li></ul><ul><ul><li>Scenarios are stories about people and their activities </li></ul></ul><ul><ul><li>Scenarios presuppose a setting </li></ul></ul><ul><ul><li>Scenarios include various actors with goals and objectives </li></ul></ul><ul><ul><li>Scenarios have a plot by including a sequence of actions and events </li></ul></ul><ul><li>Script: </li></ul><ul><ul><li>The roles supposed to be played by </li></ul></ul><ul><ul><li>the objects </li></ul></ul><ul><ul><li>the supporting infrastructure </li></ul></ul><ul><ul><li>the humans (e.g. users, governmental authorities). </li></ul></ul>
  14. 15. Pesticides as a socio-technical system <ul><li>Which roles do the following elements and stakeholders have in a safe use of pesticides when products and application strategies are developed: </li></ul><ul><ul><li>the active ingredient </li></ul></ul><ul><ul><li>the formulation </li></ul></ul><ul><ul><li>the packaging </li></ul></ul><ul><ul><li>the labelling, including pictograms </li></ul></ul><ul><ul><li>the Cheminova sales staff </li></ul></ul><ul><ul><li>the local vendor of pesticides </li></ul></ul><ul><ul><li>the landowner </li></ul></ul><ul><ul><li>the farm worker </li></ul></ul><ul><ul><li>the equipment used for mixing, spraying etc. </li></ul></ul><ul><ul><li>the gear used by the user </li></ul></ul><ul><ul><li>the knowledge of the user </li></ul></ul><ul><ul><li>the local government </li></ul></ul><ul><ul><li>the water quality in the area where a product is mixed </li></ul></ul><ul><ul><li>the local climate </li></ul></ul><ul><ul><li>etc. </li></ul></ul>