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Business and the Environment

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!)

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Business and the Environment

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  1. Business and the Environment “Clean, Green, and Rich”

  2. MNCs and the EnvironmentThe 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

  3. 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 achievements. • Started by the Canadian Chemical Industry Association, 1985

  4. 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 measured. • Open communication on health, safety and environmental matters • -www.ccpa.ca/ResponsibleCare/

  5. Exporting Environmentalism: RC Member Associations

  6. The Chemical Industry: Exporting Environmentalism • Level playing field • Gain a competitive advantage • Community and government relations • Pre-empt regulations • Reduce transaction costs • Pressure from transnational markets and associations • Examples: Latin America, Eastern Europe

  7. MNCs and the EnvironmentSHELL • 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 Africa

  8. Demand rights, social, economic, and environmental justice Lead by Ken Saro-Wiwa Shell “persona nongrata” in Ogoniland Ken Saro-Wiwa sentenced to death and executed Shell sued in NY court by Saro-Wiwa widow and human rights organizations Movement for the Survival of the Ogoni People (MOSOP)

  9. 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? • http://www.shell.com/

  10. What factors explain the greening of Shell and the chemical industry?

  11. Is this Greening or Greenwashing?

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