Seventh Environmental Management Leadership Symposium

Seventh Environmental Management Leadership Symposium Responsibilities in Sustainable Industries ROCHESTER INSTITUTE OF TECHNOLOGY J. Morelli L. Greenwood K. Lockwood C. Portillo

Where should responsibility reside? • Business organizations are consumers as well as producers • Sustainability-related consumption and production is influenced by where within the organization responsibility resides • Essential to understand how to most effectively allocate responsibility among the organization’s functional units

Description of the Study • 7,400 professionals surveyed • 20 functional areas • 523 respondents • 45 questions • Derived from 220 action items in ISO26000 • 16 related to sustainable production, consumption, and communication • Survey premise: Organization declares its commitment to social responsibility & sustainability; what level of responsibility will you hold?

Sustainable Consumption Ensuring that the organization offers consumers socially and environmentally beneficial products Providing consumers with accurate information about environmental and social factors related to products and services Self-Indicated Marketing/Sales – 29% Perceived by Others Marketing Communications/Public Relations Legal Self-Indicated Few Perceived by Others Marketing Operations/Production Environmental, Health and Safety

Protecting Consumers’ Health and Safety Ensuring that the organization will provide products and services that, will be safe for users and the environment Instructing consumers in the proper use of products and conveying appropriate safety information Self-Indicated Environmental, Health & Safety – 89% Perceived by Others Marketing Legal Health & Safety Operations/Production Self-Indicated Environmental, Health & Safety – 92% Perceived by Others Operations/Production Health & Safety:

Fair Marketing Sustainable Resource Use Ensuring the organization will not engage in any deceptive, misleading, fraudulent or unfair practices, including omission of critical information Implementing programs and practices for sustainable material, energy and environmental resources Self-Indicated Environmental, Health & Safety-70% Perceived by Others Operations/Production Facilities Environmental Health & Safety Purchasing Self-Indicated Finance and Accounting – 80% Human Resources – 50% Environmental - 48 Operations/Productions – 48% Perceived by Others Human Resources Environmental Operations/Productions

Climate Change and Mitigation Considers environmentally and socially responsible performance when evaluating and selecting suppliers and contractors. Identifies potential adverse impacts on ecosystems and biodiversity; and implement planning, design and operating practices to eliminate or minimize them Self-Indicated Environmental, Health & Safety-64% Perceived by Others Operations/Production Environmental Facilities Health & Safety Self-Indicated Purchasing-60% Perceived by Others Purchasing

Climate Change and Mitigation Considers market mechanisms, such as carbon emissions trading, to internalize the cost of environmental burdens resulting from the organizations’ activities, products and services. Incorporates the protection of natural habitat, wetlands, forest, wildlife corridors, protected areas and agricultural lands into land development projects. Self-Indicated Environmental, Health & Safety-49% Perceived by Others Environmental Operations/Production Self-Indicated Environmental, Health & Safety-48% Perceived by Others Operations/Production Environmental

Prevention of Pollution Ensuring that the organization measures, records, reports and publically discloses the amounts and types of toxic and hazardous materials used and released, and makes known the associated risks to human health and the environment. Implementing measures to minimize waste, prevent pollution and properly manage that which is unavoidable Self-Indicated Environmental, Health & Safety – 86% Operations/Production-61% Perceived by Others Operations/Production Environmental Facilities Health & Safety Self-Indicated Environmental, Health and Safety – 84% Perceived by Others Environmental, Health and Safety

Promoting SR in Sphere of Influence Community Involvement & Development Giving preference to local suppliers of products and services and contributing to local supplier development where possible and practicable Ensuring the organization participates in raising the environmental and social responsibility awareness of those with which it has relationships Self-Indicated Environmental-58% Perceived by Others Human Resources Purchasing Environmental Operations/Production Self-Indicated Purchasing-89% Perceived by Others Purchasing

Organizational Governance Human Rights Due Diligence Ensuring that the organization does not partner with those who engage in human rights or environmental abuses. Ensuring the organization is governed in a manner that balances the needs of the organization and its stakeholders, including immediate needs and those of future generations Self-Indicated Operations-67% Environmental, Health & Safety-54% C-Level-89% All Functional Areas-44%/80% Perceived by Others Operations Human Resources Environmental Health & Safety Self-Indicated Environmental, Health & Safety-42% Perceived by Others Human Resources Purchasing Legal Op/Prod:

Conclusions • Opportunities for collaboration • Environmental, Health & Safety and Operations • Environmental, Health & Safety and Purchasing

Conclusions • Evidence that organizations are engaged in some sustainable production activity • No significant commitment to socially responsible products • Offer environmentally/socially beneficial products • Accurate consumer information on environmental and social factors for products

Conclusions • Future research: • Executive level • Target more response in particular functional areas • http://media.rit.edu/faculty/jxmctp/NTP/Game_Iteration3.html

Conclusions • . • http://media.rit.edu/faculty/jxmctp/NTP/Game_Iteration3.html

Questions?

Thank you for your kind attention.

Seventh Environmental Management Leadership Symposium