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PREPARED BY SAY PUNNAREAY, MBA

saklviTüal½yCatiRKb;RKg NATIONAL UNIVERSITY OF MANAGEMENT karRKb;RKgbriyakasGaCIvkmµ ENVIRONMENT BUSINESS MANAGEMENT. CHAPTER VII ENVIRONMENTAL POLITICS. Creating the Conditions for the Completion of the Product Cycle. PREPARED BY SAY PUNNAREAY, MBA. 1. SOCIAL INFRASTRUCTURE

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PREPARED BY SAY PUNNAREAY, MBA

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  1. saklviTüal½yCatiRKb;RKg NATIONAL UNIVERSITY OF MANAGEMENT karRKb;RKgbriyakasGaCIvkmµ ENVIRONMENT BUSINESS MANAGEMENT CHAPTER VII ENVIRONMENTAL POLITICS Creating the Conditions for the Completion of the Product Cycle PREPARED BY SAY PUNNAREAY, MBA

  2. 1. SOCIAL INFRASTRUCTURE  Reasons why businesses need to participate in social infrastructure  Policy instruments  Main Actors - Government: international, national - Non-governmental Organizations - Industry associations and other third parties - Public-private agreements

  3. 2. REASONS WHY BUSINESSES NEED TO PARTICIPATE IN SOCIAL INFRASTRUCTURE  Compliance with regulations, policies and other pressures  Information acquisition  Cost and risk sharing  Credibility

  4. 3. CORPORATE CONCERNS IN SOCIAL INFRASTRUCTURE DEVELOPMENT Implementation and enforcement of polluter pays principle (fairness or maintaining first mover advantages).  Cost efficiency  Technology and product development freedom  Time (and resources) to develop responses  Social acceptance (local, national, international)

  5. 4. TRANSACTION COSTS  Cost efficiency and competition  Information,  Searching for partners,  Monitoring and enforcing performance,  Compliance needs,  Opportunism.

  6. 5. GOVERNANCE: TWO BASIC TYPES BINDING OR LEGAL GOVERNANCE GUIDANCE • Forms of governance • - Moral persuasion (guidelines, principles, purchasing, publicity). • - Command and Control (emission standards, bans, BAT [best available technology], EIAs) • - Market mechanisms

  7. Governance: two basic types • Binding or legal governance • Guidance Forms of Governance • Moral persuasion(guidelines, principles, purchasing, publicity) • Command and Control(emission standards, bans, BAT [best available technology], EIAs) • Market mechanisms Monetary(taxes and fees; subsidies; licenses; deposits; quotas; emissions trading; removal of subsidies, monopolies and other distortions). Information(Emissions release inventory, product labeling, materials imprinting) • Extended Product Responsibility (product stewardship; voluntary/subsidized recycling and compulsory EPR laws) • Government investment(prevention, regeneration, information dissemination, research, education)

  8. Government: International • Identification and definition of global or trans-boundary problems • Politicization and agenda setting by national and international advocacy groups • Policy formation through negotiations • Establishment of binding agreements, conventions and protocols, action plans • Implementation by national governments

  9. Non-governmental Organizations Mutually Beneficial Partnerships Company Perspective • Market demand • NGO credibility • External challenge • Cross-fertilization • Greater efficiency • Protect image • Engage stakeholders NGO Perspective • Markets are powerful • Government insufficient • Need for funding, expertise • Business is credible • Cross-fertilization • Impact on value chains • Greater leverage

  10. Industry Self-governance To beat costs of escalating regulation requirements, monitoring, reporting and image • Industry Associations • Cross-industry associations • Certifying authorities • Government led agreements (covenants)

  11. Value Cycle Parts Manufacture Materials Processing Product Assembly Value Cycle supported by Physical and Social Infrastructures Resource Extraction Distribution Recycling Consumption Materials Collection Material & Energy Inputs Pollution Outputs Transfer Impacts

  12. What are the infrastructure needs of your company? • What kind of physical infrastructure (roads, electricity, other fuels, sewage, buildings,recycling systems, etc) does your company need or could it convert to? • Should you work with the government, other companies (competitors, suppliers, distributors, recyclers), or NGOs to build these infrastructures? • What kind of values can be created at each stage of the industrial loop to ensure transaction are undertaken? • What kind of regulatory, guideline, membership, or social conditions are necessary to ensure that transactions are undertaken? • Is it feasible to expect the creation of these infrastructures in the short, medium, or long run?

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