International Environmental Regimes by 72b3i16T


									Business and the Environment

           “Clean, Green, and Rich”
MNCs and the Environment
The Chemical Industry

   Union Carbide: Bhopal, India, 1984
    –   Toxic gas leak
    –   3,000 + 2,000 deaths
    –   Estimated 578,000 people affected
    –   Poor safety procedure and maintenance
    –   Poor compensation ($500!)
    –   Poor medical facilitates
    –   Long term damage
    –   No one accountable
The Greener Chemical Industry

 The Responsible Care Program
Under Responsible Care ®, the worldwide
  chemical industry is committed to continual
  improvement in all aspects of health, safety
  and environmental performance and to open
  communication about its activities and
 Started by the Canadian Chemical Industry
  Association, 1985
Responsible Care

   After the Rio Summit (1992) the number of
    RC member associations grew from 6 to 47
   Components:
     – Commitment by each company to a set of guiding principles
     – codes, guidance notes and checklists to help companies to fulfill
       their commitment (Emergency Response, Research and
       Development, Manufacturing, Transportation , Distribution,
       Hazardous Waste Management )
     – Indicators against which improvements in performance can be
     – Open communication on health, safety and environmental matters
Exporting Environmentalism: RC
Member Associations
The Chemical Industry: Exporting

   Level playing field
   Gain a competitive advantage
   Community and government relations
   Pre-empt regulations
   Reduce transaction costs
   Pressure from transnational markets and
   Examples: Latin America, Eastern Europe
MNCs and the Environment

   Shell in Nigeria
    –   Development
    –   Corruption/lack of transparency
    –   Few benefits for the local community (1.5% to 3%
        to 13%)
    –   Environmental impacts
    –   Human rights violations
   Similar record in Louisiana (US) and South
Movement for the Survival of the Ogoni
People (MOSOP)

   Demand rights, social,
    economic, and
    environmental justice
   Lead by Ken Saro-Wiwa
   Shell “persona nongrata” in
   Ken Saro-Wiwa sentenced
    to death and executed
   Shell sued in NY court by
    Saro-Wiwa widow and
    human rights organizations
The Greener Side of Shell

   Triple Bottom Line reporting
   Industry leader in social policy
   Industry leader in mitigating environmental impacts
   Climate friendly policies and technology
    –   GHG emission 5% below 1990 levels by 2010
    –   Solar panels
    –   Hydrogen fuels cells
   Partnerships with IOs and NGOs: Examples?
What factors explain the greening of Shell and
 the chemical industry?
Is this Greening or Greenwashing?

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