Reflecting on voluntary environmental partnerships: Lessons for the next century

Reflecting on voluntary environmental partnerships: Lessons for the next century

CES FOCUS ON ENVIRONMENTAL PARTNERSHIPS Reflecting on Voluntary Environmental Partnerships: Lessons for the Next Century By Thomas S. Davis The wo...

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CES FOCUS ON ENVIRONMENTAL PARTNERSHIPS

Reflecting on Voluntary Environmental Partnerships:

Lessons for the Next Century By Thomas

S. Davis

The word “partnering” and the concept are everywhere these past few years, from corporate boardrooms to the White House. The concept, if properly applied, provides an excellent opportunity to leverage resources and experience so as to accomplish a project more effectively and efficiently than otherwise might be possible. Indeed partnerships appear to be a “win-win” for everyone, and indeed, they just might be. In this article, Tom Davis discusses his expe-

T

he concept

of partnership

and partnering

isn’t

new; its use derives in part from the “business partnership” where two people join together to accomplish

mental

a common

external

result of partnerships nerships”

objective.

relationships

Usually,

environ-

that are formed

are not business

as a

nor legal “part-

in the strict sense of the word, but thev are

people bound together to reach some common.goal. Corporate leaders, like Procter clr Gamble’s Deborah Anderson

and

Clair

Krizov

of AT&T,

frequently

speak on the subject. They feel that partnering

can be

used

in the

to strategically

position

a company

marketplace. New working partners

relationships

capitalize

backgrounds

with nontraditional

on the diversity of the respective

of the participants;

parties at the table

are able to leverage their creativity and generate a wider range of solutions while managing confrontation and avoiding

duplication

employees-often work-can

isolated

work much

of efforts. Corporate by the nature

of their

more closelv with key stake-

riences with partnering initiatives in an effort to

holders, such as regulators, community social groups, government agencies and public interest groups.

understand how partnering works best.

While

building

trust, an essential

ingredient

to suc-

cess, each partner learns from the others about how he/she would approach similar situations. There are a number of basic elements that initiators should consider in planning a successful partnership: commitment, trust building and early successes. These

Thomas S. Davis is president of Tom Davis Associates, LLC., an environmental affairs management consulting firm located in Washington, D.C. and Basking Ridge, New Jersey. He specializes in environmental external affairs, issue management, stakeholder involvement, process management and outreach activities to corporate, media, government and the environmental communities. Prior to starting his own company, Mr. Davis was director of Global External Affairs for AT&T and Lucent Technologies. Tom Davis has been involved with private sector environmental initiatives, including the formation of the Global Environmental Management Initiative (GEMI) for which he managed the annual conference for six years and was a member of the Board of Directors. Additionally, he was a founder of the Corporate EH&S Management Roundtable, the National Association of Environmental Managers (NAEM), and the Industry Cooperative for Ozone Layer Protection, which became a model for future programs of corporate and government partnerships.

Winter 1999 (Vol. 6, No. 1) OElsevier Science Inc.1066-7938/99/$20.00+$6.00

elements

are detailed

in Exhibit

1 on page 56.

Fundamental Kinds of Partnering A review of some current

and past partnerships

helps to understand the values and the process. Partnerships take a variety of forms, including: Corporate-Government, Corporate-Environmental Organizations

Non-govemmental

(NGOs),

Corporate-Corporate, Educational

Institutions,

and

Govemmental improvement programs policies involving all stakeholders.

Corporate-Government

Partnerships-Revisiting

and

ICOLP

McDonald’s/Environmental Defense Fund (EDF) partnership is well known to many as an example of

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CES FOCUS ON ENVIRONMENTAL PARTNERSHIPS

how environmental

partnerships

can actually

work;

but another receiving less public attention-the Industry Cooperative for Ozone Layer Protection (ICOLP)--’ mvo 1ve d a more complex set of participants dealing with a truly global concern.

ICOLP was

created in 1989 by teaming members of the U.S. Environmental Protection Agency with leaders in the electronics

industry.

most unusual nerships.

The

fluorocarbon

Currently,

it stands

as one of the

and viable business-government group,

primarily

funded

part-

by chloro-

users, was able to pool research

(CFC)

efforts and cooperate with many key players in the user and producer communities. This unlikely alliance of competing firms, such as AT&T, Northem Telcom and Motorola, joined with Dr. Steve Anderson of EPA to find solutions nating

ozone-depleting

were representatives the Departments

on reducing

substances. from federal

of Defense

governments,

trade

stakeholders.

By disseminating

and elimi-

Also present agencies

and Energy,

associations

and other technical

such as foreign vested informa-

tion and the message of “elimination” around the world, the electronics industry and EPA representatives were able to demonstrate cost savings and, just as importantly, the value-bottom-line value-to the partnership.’

cading type of change not normally available to environmental regulators. In this case, it was the champion who made the difference. Steve Anderson, one of the visionary leaders in EPA, was instrumental in supporting and nurturing the young organization. Relationships such as this one between EPA and AT&T can and do lead to subsequent example

The elements of successful partnerships include commitment and participation by both employees and senior management. With all stakeholders working jointly to develop an agenda, responsibility increases for all involved. Senior-level buy-in on all sides is vital. Partnerships often work best with a “champion” who can get the ball rolling-but the support of top level managers not only makes acceptance that much easier, it helps to guarantee commitment. This is similar to the dynamic at work when a corporate champion moves the environmental goals forward through the business units for overall corporate acceptance. In both situations, there is compromise and “give and take” along the path to eventual acceptance. Trust Building trust is essential if the partnership is to work. Developing atrusting partnership often requires a monumental use of human resources-relationship building through conversations and what may appear to be endless meetings. The secret is to focus not on the differences in beliefs but rather in the commonalties. An early “win” can help instiiionalize the process within each organization and move the partnership forward. The first win need not be a large one; it is more important that the participants see the possibility to achieve a result, a greater good, by working together rather than separately. Exhibit I

positive interactions.

of corporate-government

part-

nering is the Lucent Technologies Inc. (Lucent, the manufacturing spin off of AT&T) and EPA partnership on control of global greenhouse gases. In 1997, the Microelectronics Group of Lucent signed a voluntary agreement to reduce the emission of greenhouse gases at its facilities that manufacture integrated circuits. Lucent will collaborate with the EPA to research environmentally responsible and costeffective solutions for controlling emissions of two major contributors (perfluorocompounds and hydrocarbons) that are believed to lead to global warming.

56

Commitment

Early Success

According to the EPA, the value of the ICOLP partnership was that it was able to create a contagious cas-

Another

Core Elements of Partnering

Corporate-Environmental

PlGOs

Formosa Plastics Corporation, USA spent considerable human capital in their attempts to partner with a leading environmentalist at a facility located in Texas. Their efforts paid off, and last year that person attended corporate environmental meetings in support of the firm’s activities, rather than in dissent. This partnership demonstrated that the company and the community should and could work together, even though the crucial relationship took a long time to mature.

CORPORATE

ENVIRONMENTAL

STRATEGY

CES FOCUS ON ENVIRONMENTAL PARTNERSHIPS

Corporation-Corporation-The About

ten

years

GEM/ model

ago, the

world can support

Corporate

EH&S

and enhance

Through

a corporate

provides

facility field-trips,

Roundtable, a collection of forty senior corporate officers for environmental, health and safety combined

career guidance

forces to discuss their common

make the environment

problems and possible

solutions. One of the initial efforts was the early support of a group called The Global Environmental Management Initiative ognized

(GEMI). GEM1 went on to become rec-

as a source of innovative

information

through

its annual

and cutting conferences,

edge and a

corporate

to youngsters

speakers,

and

who have decided

to

Pfizer and others are reaching

out to the future environmental crs through the high school.

Leadership,

lessons.

their career focus. Firms like

Novartis, Bell Atlantic,

Still another,

classroom

advisory board, the high school

The

leaders and

Institute

COIISUIII-

for Conservation

a Washington-based

grass roots educa-

prominent organization dedicated to quality application in environmental management systems. GEM1

tional group, manages

M’as also the springboard

cation for fledgling environmental groups and newl) appointed managers of such groups. To their credit,

business”

solutions.

for many “business

GEMI’s

publications

have included primers on environmental lu)OO, and total environmental

Educational Institution

helping

over time

auditing, IS0

quality management.

a technical

program. This group specializes

assistance

the group is using the partnership decisions

grants

in management

approach

on the process and the approach

edu-

to make of an:arcl-

ing these grants.

Partnering

R wry unlikely and unique partnership is one being supported by the National Environmental Edu-

Government improvements Programs-Positive Changes in Compliance in Massachusetts

cation

Some state regulators are acting to remove roadblocks and allow for more flexibilitv in regulation

and Training

Foundation

(NEETF),

as it

attempts to promote “business helping business” through a series of mentoring projects and activities. Project Director

Debbie

value to industry Donnelly

leaders like Lockheed-Martin,

& Sons Publishing

the foundation ability

Sliter has demonstrated

R.R.

and 3M. The work with

and trade associations

of larger companies

its

showcases the

to reach out and help

smaller businesses achieve greater compliance for a cleaner environment. In addition to greening the suppl!. chain, there is community

value as small and micl-

size companies learn that being “green” is frequenth beneficial to the bottom line when cost savings are realizcd and technological processes are shared. Many academic programs in the environmental ficlcl have realized the value of partnering. The Emironmental Management and Policy Program at Rensselaer Polytechnic Institute is itself a founder of a unique partnership.

l’hrough

their Corporate

Affiliate

Program, corporations, trade associations, media and environmental leaders come together to provide future environmental managers with first-hand experience and skills necessarv to make strong business cases fol- social and environniental responsibility In another educational initiative, The New York High School for Environmental Studies and AT&T’s Clair Krizov are demonstrating that the external

Winter 1999 (Vol.6, No. 1)

without

diminishing

strong complial;ce

goals. A ke!

example is the Commonwealth of Massachusetts, which recently reviewed the morass of regulations facing business were achieving

and found

ance was a staggering ‘I’he Massachusetts tal Protection

that some

little reduction

(DEP)

thirtv-three

Compli-

percent.

Department studied

l(,,OOO permits

in pollution.

the

of Emironmcnsituation

and

devised a performance-based set of standards that enable a company to annuallv certifv that the standards are being met. This certificate is signed by the owner or the corporate officer responsible for the plant, and the certifications are subject to spot check and review. ‘l’oday, compliance is around seventv pcrcent and climbing. The DEP staff is freed from the task of writing permits so thev can do what thev kno\fv best: assist companies \\.itli C.onipliancc. This example presents a major change in how a pollution problem is addressed ancl how to solve it. In Massachusetts, DEP Commissioner David Struhs and Deputy Allan Bedwcll called on the Massachusetts Public Interest Research Group (PIRG), the Environmental League of Massachusetts, the COIIscrvntion Law Foundation of Boston and other local environmental groups to build a partnership. At the

57

CES FOCUS ON ENVIRONMENTAL PARTNERSHIPS

58

CORPORATE ENVIRONMENTAL STRATEGY

CES FOCUS ON ENVIRONMENTAL PARTNERSHIPS

same time,

they approached

the business

commu-

leading environmental

and corporate

Industries

of Massachu-

Chemical

Technology as

question whether environmental protection as we have known it may have gone as far as it cm. This

well. Also joining the design team were Region I of EPA and the Boston Bar Association. This partner-

group senses that it is possible that the future of environmental legislation and regulation may well lie in a

ship had a common

new

nity through setts,

the

the Associated Massachusetts

Alliance among others, seeking their participation

goal: faced with a permitting

tem and process that was seriously broken, needed

sys-

the state

formally

concept,

approach

convenes

leaders. When

the forum

such

as Industrial

offers a non-adversarial

toric baggage of twenty-five of this effort is that a very disparate

group of organizations

and individuals

were, nonethe-

less, able to make it work. There have been meetings which national

environmental

the Massachusetts because

in

groups have defended

DEP to the EPA. Success came

the various stakeholders

were included

early

and often, and all felt some ownership

in the final prod-

uct. This situation

a value that can

also demonstrates

accrue in some partnerships.

If a group creates a favor-

able community of interest before a crisis arises, they will very likely have friends when they most need them.

Imagine

the results

Ecology. meeting

had the Massachusetts

and control the

thinking They

for National

forum

with

leaders

will begin

from

mental

plus years of command Policy will formally con-

around diverse

fifty

progressive-

stakeholder

a series of discussions

where the economy That

the his-

enforcement.

The Center vene

This ground

where people can come to the table without

a new way to ensure compliance.

The upshot

in early 1999, it will

protection, vital agenda

groups.

looking

at

has been on the issue of environand where it can go in the future. is shared by all the stakeholders,

unlike some other well-intentioned

similar activities

of the past.

In closing, remember

that in this world of buzz

DEP designed the program in secret and then called a press conference to announce their new program. No

words, “partnerships”

one would have-or could havesupported manner of developing the new certification

becomes institutionalized, it is our respective personal commitments that can and will make a differ-

it. This program

ance” or “teaming”

may become

ence in how our partnerships

greatly improved stakeholders.

Endnote

of the inclusion

of all the

rute Environmental

In the past several years, AT&T has formed sevunder the leadership

of Brad

Allenby and Clair Krizov, such as the imlovative partnership fomred with the Center for National Policy. This partnership brings together members of Congressional staffs, trade associations, regulators, and

Winter 1999 (Vol. 6, No. 1)

succeed.

*

1. CESE:ditor-in-Chief Bruce Piasccki’s seminal work, Corpo-

A New Agency For Partnering Involving All Stakeholders-The Center for National Policy eral strong partnerships

alli-

of tomorrow, but as the concept

may have taken a little longer and certainly it required some complex orchestrations, but the end result was because

the “strategic

Strategy:

The Avalanche

Since Bhopal, John Wiley and Sons,

of

Change

NewYork,1998, pp. 75-

05, discusses this partnership in greater depth and makes note that one of the values of such a partnership became evident several years later when AT&T won the Council on Economic Priorities’ Corporate Conscience Award for Environmental Responsibility. ‘The power of the result of this partnership is even more evident when one considers that AT&T’s environmental management was more frcquently asked, “what kind of cnvironmcntal problems can the phonic company possibh ha\,e?”

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