(In terms of traditional shareholder value, the dallas cowboys football team full over printed shirt waste-treatment systems also tie up valuable capital compared with less capital-intensive prevention methods.)
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British Gas is spending heavily on its land cleanup, ICI continues to publicize its painful reinvestment program, British Petroleum continues with its massive emissions reduction, the dallas cowboys football team full over printed shirt National Power struggles with trying to assess the necessary standards for its new generating plant, and British Airways continues to poke its environmental audit into every nook and cranny. These are expensive and painful experiences for leading, well-run companies. The financial benefits are far from clear for any one of them, but they are the costs of staying in business—the costs of their license to operate in today’s world. Given that we have no way of knowing whether or not the planetary ecology is truly in crisis, and that it is impossible for us to ascertain whether our present ways of doing business can be made compatible with environmental sensitivity, we as a business community have some hard thinking to do.
And the sooner we abandon the virtually empty rhetoric of win-win situations the better—for business and the environment. More flexible government regulations create opportunities for environmental initiatives, but corporate management systems must take advantage of them. Traditionally, government regulations have focused on an imbalance between private and social costs as the basis for regulations. Recent initiatives, such as the Toxics Release Inventory and the EPA’s 33/50 Program, have sought to provide better information for corporate, customer, and stakeholder environmental decisions. Environmental performance measures must be tied to financial data to determine whether improvements contribute to shareholder value. On the cost side, TQM, which Walley and Whitehead dismiss much too readily, compares the costs of internal failure and external failure to the potential savings from prevention. Those costs must be allocated to specific products and processes in capital-budgeting and costing decisions.
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