corporate environmentalism in malaysia · 2008-05-22 · corporate environmentalism in malaysia by...

CORPORATE ENVIRONMENTALISMCORPORATE ENVIRONMENTALISMIN MALAYSIAIN MALAYSIA

by

Dato’ Dr A. Bakar Jaafar1, FASc(E-mail: [email protected])

forThe Inaugural K. Kumarasivam Memorial LectureatSheraton Subang Hotel & TowersSubang Jaya, Selangor, MalaysiaJune 30, 2004

Convened byEnvironmental Management & Research Association of Malaysia(ENSEARCH) (www.ensearch.org)

1Executive Chairmanwww.envirolift.com.my

Abj@Enviro-LIFT@ENSEARCHJune 30, 2004

SOME DEFINITIONSOME DEFINITION

CORPORATE:

being or belonging to a group or corporation made up of persons authorized to act as individual

ENVIRONMENTAL-ISM:

Movement for the protection and preservation of The Environment which is made up of “mass” or “energy” in “space and time” equivalent


CORPORATE PLAYERS: CORPORATE PLAYERS: DIFFERENTIATED ROLE, DIFFERENTIATED ROLE, RESPONSIBILITY & ACCOUNTABILITYRESPONSIBILITY & ACCOUNTABILITY

GOVERNMENT

NON-PRIVATE(NPO) PRIVATE

NON-GOVERNMENT

(NGO)

Public Interest Malays

ia-Inc

Civil

"Vested" or

"Specific" Interest


CORPORATE PLAYERS: CORPORATE PLAYERS: DIFFERENTIATED ROLE, DIFFERENTIATED ROLE, RESPONSIBILITY & ACCOUNTABILITYRESPONSIBILITY & ACCOUNTABILITY

GOVERNMENTInstitutions

NON-PRIVATEOrganisations

(NPOs)

PRIVATECorporations

NON-GOVERNMENTORGANIZATIONS

(NGOs)

Civil Society Vested or SpecificInterest

Public Goods &Services Malaysia-Inc

PublicInterest Dialogue

?

?

Interestsabove

all


ENVIRONMENTAL DISASTERS:ENVIRONMENTAL DISASTERS:& DEATHS& DEATHS

LONDON (18th Century): Diarrhoea and Well-water contaminated by untreated sewage

MEUSE VALLEYBELGIUM (1930): Air pollution

PITTSBURGH (1949): Air pollutionLONDON (1952): “Smog”MINIMATA, (1956)

JAPAN (1965): “Poisoning” due to mercury, and cadmium (Itai-itai)

ILLINOIS, USA (1960s): “Blue Babies” due to excessive application of chemical fertilizer and build-up of nitrate in drinking water

BHOPAL (1984): Union Carbide Chemical accident


THE GROWTH OF POPULAR THE GROWTH OF POPULAR LITERATURE: FOUNDATION FOR LITERATURE: FOUNDATION FOR ENVIRONMENTALISMENVIRONMENTALISM

Rachel Carson (1965), SILENT SPRING

The Club of Rome (1970), THE LIMITS OF GROWTH

Barry Commoner (1972), THE CLOSING CIRCLE

Garrett Hardin (1974), “The Tragedy of Commons,” in Science

Rowland & Molina (1974), “Chlorofluorocarbons (CFCs) and the Depletion of Stratospheric Ozone Layer” in Science

World Commission on Environment & Development (1987), Our Common Future, Oxford University Press


MANDATORY MANDATORY visvis--àà--vis vis VOLUNTARY RESPONSEVOLUNTARY RESPONSE

Pollution Control (Curative Measure):Imposition of Mandatory standards, rules and procedures

Prior Assessment to Development (Preventive Measure):Mandatory conduct of Environmental Impact Assessment (EIA), and [post-development Auditing?]

Other Measures:Safety & Health

Resource-Use(Against Abuse)

Anti-Littering

Environmental Management System (EMS)(ISO 14000 series of standards)

Product Stewardship(e.g. LCA & Take-back Policy)

Quality Management System(ISO 9000 series of standards)

Safety & Health Management Systems(ISO 18000 series of standards)

Sponsorship for Public Education Awareness, Conservation, and Material Recycling


THE REPORTING TOWARD A THE REPORTING TOWARD A SUSTAINABLE FUTURE:SUSTAINABLE FUTURE:A RESPONSE TO CAPITAL MARKETA RESPONSE TO CAPITAL MARKET

Environmental CurrentSustainability

FutureSustainability

EnvironmentalManagementSystem (EMS)

Resource Use

EmissionReduction

ProductStewardship etcincluding

Safety & Health

Environmental

Social

Economic

Governance

Diversity

Productivity etc

Adapted by Abj@ASMA-Malaysia from the source of GRI(Ref: Bateman, 2000)


AGENDA 21: CHAPTER 30AGENDA 21: CHAPTER 30STRENGTHENING THE ROLE OF STRENGTHENING THE ROLE OF BUSINESS INDUSTRYBUSINESS INDUSTRY

“BUSINESS & INDUSTRY, INCLUDING TRANSNATIONAL CORPORATIONS, AND THEIR REPRESENTATIVE ORGANIZATIONS SHOULD BE FULL PARTICIPANTS IN THE IMPLEMENTATION AND EVALUATION OF ACTIVITIES RELATED TO AGENDA 21” inter alia (i) Promoting Cleaner Production and (ii) Promoting Responsible Entrepreneurship


PROMOTING CLEANER PROMOTING CLEANER PRODUCTIONPRODUCTION

Objective:To increase the efficiency of resource utilisation, including increasing the reuse and recycling of residues, and to reduce the quantity of waste discharge per unit of economic output.


PROMOTING RESPONSIBLE PROMOTING RESPONSIBLE ENTREPRENEURSHIPENTREPRENEURSHIP

To encourage the concept of stewardship in the management and utilisation of natural resources by entrepreneurs; andTo increase the number of entrepreneurs engaged in enterprises that subscribe to and implement sustainable development policies


WHAT’S CONSIDERED A GOOD WHAT’S CONSIDERED A GOOD COMPANY?COMPANY?

Quality ofmanagement Innovativeness

Ability to attract,develop and keeptalented people

Quality of productor services

Value as a Longterm investment

Community andenvironmentalresponsibility

Financialsoundness

Efficient use ofcorporate assets

PQ

R$

Adapted by Abj@Peremba-Malaysia(Ref: Fortune Adviser (1998) “America’s Most Admired Companies, 1997, p.243)


REPORTING & COMMUNICATIONREPORTING & COMMUNICATION

1. ANNUAL ENVIRONMENTAL QUALITY REPORT(www.jas.sains.my)

2. THE ASSOCIATION OF CHARTERED CERTIFIED ACCOUNTANTS (www.accaglobal.com)

3. Global Reporting Initiative (GRI)(www.globalreporting.org)

4. International Survey of Sustainability Reporting 2002, KPMG (www.kpmg.com)

5. Trust Us, Sustainability (www.sustainability.com)6. World Business Council for Sustainable Development

(www.wbcsd.ch)7. Business Council For Sustainable Development In Malaysia

(www.bcsdm.com.my)


ENTRANTS FOR THE ACCA MALAYSIA ENTRANTS FOR THE ACCA MALAYSIA ENVIRONMENTAL REPORTING ENVIRONMENTAL REPORTING AWARDS 2003AWARDS 2003

Home Base ( )1st Silicon (Malaysia) Sdn BhdAluminium Company of Malaysia BerhadEdaran Otomobil Nasional Bhd (www.eon.com.my)Golden Hope Plantations Bhd (www.goldenhope.com)Guthrie Ropel Bhd (www.kumpulanguthrie.com)Hartmann Malaysia Sdn BhdHighlands & Lowlands Bhd (www.kumpulanguthrie.com)Huntsman Tioxide (M) Sdn BhdKumpulan Guthrie Bhd (www.kumpulanguthrie.com)Motorola Malaysia Sdn BhdPuncak Niaga Holdings Bhd (www.puncakniaga.com.my)Shell MalaysiaSony Electronics (M) Sdn BhdSony Technology Malaysia Sdn BhdTelekom Malaysia Berhad (www.telekom.com.my)Tenaga Nasional Berhad (www.tnb.com.my)Tradewinds (M) Bhd

(Home/Global) Based (10/17)


THE MYTHTHE MYTH

“WHAT’S GOOD FOR THE ENVIRONMENT IS GOOD FOR BUSINESS.”

Michael HeseltineUK Minister for the Environment


THE REALITYTHE REALITY


BUDGET 1998 & THE ENVIRONMENT “Stricter enforcement will be implemented on the sources of pollution such as motor vehicles and industries which have yet to comply with the emission levels permitted under the Environmental Regulations.

Industries and developers must thoroughly evaluate the impact of their development projects on environment and take steps to overcome any negative effects.

These can be done through internal self-regulations andenvironmental audit.”

YAB Datuk Seri Anwar Ibrahim, Deputy Prime Minister & Minister of Finance.“Budget 1998”, Business Times, SaturdayOctober 18, 1997, p.20


WHY ISO 14000?WHY ISO 14000?

ImprovingRELATIONS

ReducingLIABILITY

Meeting RegulatoryCOMPLIANCE

IncreasingSAVINGSof Cost

IncreasingMARKETSHARE

EnhancingCorporate

IMAGE

Better Quality of Products & Services

Adapted by Abj@Peremba-MalaysiaOctober 6, 2000


EMASEMAS

Cost savings(31%)

BetterImage(29%)

ImprovedEmployee

Morale(26%)

Top 3Benefitsof EMAS

Implementation

Source: Dr Ruth Hillary, ICCETE-mail: [email protected]

Adapted by Abj@ASMA-Malaysia


SPACE & WATER SAVINGSPACE & WATER SAVING

Design Feature

1. “… diagonally positioned to the washbasin …”

2a. “… using the wastewater from the washbasin to flush …”

2b. “… wastewater stored … in the dual-purpose basin stand / toilet cistern …”

Value-Creation

1a. “… creating a comfortable position …”

1b. “… optimising space …”

2a. “… conserves water …”

2b. “… 30% saving in water consumption …”

Adapted by Abj@Peremba-Malaysia(After: Huibran Glabeek, the Netherlands)

J. of Sustainable Product Design July 1997. p.46)


SOCIOSOCIO--ECONOMIC BENEFITS ECONOMIC BENEFITS OF ECOOF ECO--EFFICIENT DESIGNEFFICIENT DESIGN

Minimum Saving of 15 gals. per day per person

75 gals per day per household

For the Country Malaysia300 Million gallons per day (Mgd)

1.26 million cubic metre per day

RM523 million per year@ RM1.05/m3 (for 40m3+)

Adapted by Abj@Peremba-MalaysiaMarch 9, 2001


Selected COMPANIES demonstrating that ENVIRONMENTAL good practice can be good for BUSINESS:

1.Waste Management Practice Savings per Year

Holden plc Re-Use of Packaging £31,111

2.Energy Efficiency

Joshua Tetley Brewery £43,000

3.Product & Process Design

DuPont Howson Lithographics Printing Plates £477,000

4.Procurement

Leeds Metro Univ. Green Purchasing £9941

Adapted by Abj@ Peremba-Malaysia(Ref: Hutchinson etal (1996: 32p-3)


Adapted by Abj@ASMA-Malaysia


POLITICAL RESPONSEPOLITICAL RESPONSE

INCREASING NUMBER OF QUESTIONS RAISED, (LARGELY BY OPPOSITION MEMBERS)IN MATTERS RELATING TO THE ENVIRONMENT,NOTABLY IN THE 1990’s

THE RELEASE OF NINE-POINT “BARISAN NASIONAL” MANIFESTO:Preserving and enhancing the environment, [before the 1995 General Election]


QUESTIONS ON THE ENVIRONMENT QUESTIONS ON THE ENVIRONMENT RAISED IN PARLIAMENTRAISED IN PARLIAMENT


PRESERVING AND ENHANCING PRESERVING AND ENHANCING THE ENVIRONMENTTHE ENVIRONMENT

The “Barisan Nasional” Government will preserve the environment by:-

Planned and responsible utilisation of natural resources including forests,Reducing air, sea and land pollution,Giving due consideration to the environment when undertaking development,Introducing the latest system of disposing toxic waste and rubbish,Maintaining the cleanliness of the sources of water, beaches, coastal waters, andReplanting trees that are cleared by logging and at the same time beautifying the environment.


GOVERNMENT RESPONSEGOVERNMENT RESPONSE

Third Malaysia Plan (1976-1980):… Balancing development and the environment …

4th MP5th MP6th MP7th MP8th MP (2001-05)

VISION 2020: The 4th

Challenge & Para 78:

The Second Outline Perspective Plan (1991-2000) (OPP2):… long-term sustainability …

OPP3 (2001-10):… sustainable development …


MALAYSIA’S VISION 2020MALAYSIA’S VISION 2020


THIRD MALAYSIA PLAN (1976THIRD MALAYSIA PLAN (1976--80)80)

“… balance the goals for socio-economic development and the need to bring the benefits of development to a wide spectrum of population … against the maintenance of sound environmental conditions”


SECOND OUTLINE PERSPECTIVE SECOND OUTLINE PERSPECTIVE PLAN (1991PLAN (1991--2000)2000)

“adequate attention will be given to the protection of the environment and ecology so as to maintain the long-term sustainability of the country’s development”


OPPOPP--3: DEVELOPMENT THRUSTS OF 3: DEVELOPMENT THRUSTS OF THE NATIONAL VISION POLICYTHE NATIONAL VISION POLICY

Adapted by Abj@Peremba-Malaysia


NEEDNEEDFORFORCHANGECHANGE


EXPECTED TOTAL RESPONSE TO EXPECTED TOTAL RESPONSE TO SELECTED AND OUTSTANDING ISSUESSELECTED AND OUTSTANDING ISSUES

AIR QUALITY, WATER QUALITY, “UNWANTED” RESOURCE (WASTE), RENEWABLE ENERGY, AND THE GREAT IMBALANCE (IN FINANCIAL ALLOCATION)


AIR QUALITYAIR QUALITY

UNCED Principle No. 10 … the right of access by public to information held by the authorities …

Ref: Rio Declaration on Environment & Development, 1992


IMPROVING WATER QUALITYIMPROVING WATER QUALITY

THE NEED TO IMPLEMENT A CABINET DECISION OF DECEMBER 23, 1993: Revisions of the Existing Schedules of Works and Payment

Otherwise:(i) “If a brunette were to jump into our

rivers, she will become a blonde …”; and(ii) “The industries would continue to

discharge ‘virtually clean waters into dirty rivers’ …”


STATUS OF RIVER WATER QUALITY STATUS OF RIVER WATER QUALITY BASED ON ACTIVITY, 1999BASED ON ACTIVITY, 1999


THE NEED TO SOLVING THE THE NEED TO SOLVING THE GARBAGE, RUBBISH, … LITTERS GARBAGE, RUBBISH, … LITTERS EVERYWHERE PROBLEMS, ONCE EVERYWHERE PROBLEMS, ONCE AND FOR ALL …AND FOR ALL …

by applying the proposed“INDIFFERENT PRODUCERS/CONSUMERSMUST-PAY”PRINCIPLE


ILLEGAL DUMPING SITEILLEGAL DUMPING SITE


ILLEGAL OPEN BURNING AT ILLEGAL OPEN BURNING AT ILLEGAL DUMPING SITEILLEGAL DUMPING SITE


POLICY UNDER OPP2POLICY UNDER OPP2

To further improve the Management of solid waste, the Government will consider the adoption of a comprehensive waste management policy including the installation of incinerators for safe and efficient disposal of waste as well as to formulate strategies for waste reduction, reuse and recycling.


THE 6THE 6--BASIC FUNCTIONS IN BASIC FUNCTIONS IN WASTE MANAGEMENTWASTE MANAGEMENT

Adapted by Abj@Peremba-Malaysia


THE NEED FOR PREMIUM TARIFF THE NEED FOR PREMIUM TARIFF FOR RENEWABLE ENERGYFOR RENEWABLE ENERGY

SHARING OF RESPONSIBILITY BY GOVERNMENT Treasury, Fossil-Fuel POWER PRODUCERS, Polluting INDUSTRIES, and ANNEX-I Member Countries of KYOTO PROTOCOL


THE NEED FOR BALANCED THE NEED FOR BALANCED ALLOCATIONALLOCATION

FAMILY PLANNING

PRIMARY EDUCATION

FAMILY PLANNING

SANITATION

BASIC CHILD HEALTH

NUTRITION

NEED, FULFILMENT OF

MILITARY(US$800 BILLION)

BEER(US$160 BILLION)

ADVERTISING(US$250 BILLION)

CIGARETTES(US$400 BILLION)

GOLF(US$40 BILLION)

GREED

GREED AND NEED: THE GREAT IMBALANCE

Adapted by Abj@kGB-Malaysia12 Oct 1995 UNICEF.New Straits Times, Feb 8, 1995, p.39


CONCLUDING REMARKSCONCLUDING REMARKS


AMBIENT LEAD CONCENTRATIONS AMBIENT LEAD CONCENTRATIONS IN THE KLANG VALLEY, 1988IN THE KLANG VALLEY, 1988--19991999


ENVIRONMENTAL IMPACT ENVIRONMENTAL IMPACT ASSSSMENT: THE PENANG HILL ASSSSMENT: THE PENANG HILL EXPERIENCE (EIA)EXPERIENCE (EIA)

“IN THE COURSE OF FOUR (EIA PANEL) MEETINGS, AND A SITE VISIT, CHAIRED ABLY AND IN A SCRUPULOUSLY EVEN-HANDED MANNER BY DOE, …”

“MEANTIME DOE IS TO BE CONGRATULATED ON A JOB WELL DONE.”

Editorial (1992): The Planters 68 (792), pp123-124Abj@ASMA-Malaysia


FINALEFINALE

“THE MAIN MOTIVATION OF THE GOVERNMENT, INITIALLY, TO ADDRESS THE GROWING ENVIRONMENTAL ISSUES WAS NOT SO MUCH FOR THE SAKE OF THE ENVIRONMENT PER SE, BUT FOR THE SECURITY OF ITS PEOPLE AND THE COUNTRY.”


SELECTED READING ON EMERGING SELECTED READING ON EMERGING TECHNOLOGIES, MANAGEMENT, AND TECHNOLOGIES, MANAGEMENT, AND SUSTAINABILITYSUSTAINABILITY

ACCA (2001)An Introduction to Environmental Reporting, March. London: Certified Accountants Educational Trust, 21p

ACCA (2003)Environmental Reporting Guidelines for Malaysian Companies. London: Certified Accountants Educational Trust, 50p

CAPRA, Fritjof and Gunther Pauli (1995)Steering Business Toward Sustainability. Tokyo: The United Nations University.

CHOWDHURY, Subir (2000)Management 21C: Someday We’ll Manage This Way. London: Prentice Hall-Financial Times.

CLARKE, Thomas and Stewart Clegg (1998)Changing Paradigm: The Transformating Management of Management Knowledge for the 21st Century. London: Harper Collins.



CORTADA, James W (2000)21st Century Business: Managing and Working in the new digital economy. Upper Saddle River, NJ: Prentice Hall.

DAY, George S., Paul J.H. Schoemaker & Robert E. Gunther (2000)Managing Emerging Technologies. New York: John Wiley

DUNDHY, Dexter, Jodie Berveniste, Andrew Griffith and Philip Sutton (2000). Sustainability: The Corporate Challenge of the 21st Century. St. Leonards, NSW: Allen & Unwin.

GERMOV, John and Lauren Williams (1999)Get great info.rm@tion fast. St. Leonards NSW: Allen & Unwin

Global Reporting Initiative (GRI) (2002)Sustainability Reporting Guidelines. Boston, MA: GRI, 94p



GREENFIELD, P.F., J.N. Tay, A.C. Liu, C.Y.Liu, G.Q. Lu, and K.C. Toh(1996). Sustainable Energy and Environmental Technology. Singapore: World Scientific.

HAMMER, Michael and James Champy (1993)Re-engineering the Corporation. New York: Harper Collins.

HAWKEN, Paul, Amory Louis, and L. Hunter Louis (1999)Natural Capitalism: Creating the Next Industrial Revolution. Boston: Little, Brown & Co.

HUSSEN, Ahmed H. (1999)Principles of Environmental Economics: Economics, Ecology and Public Policy. New York: Routledge.

KAYA, Yoichi, Keichi Yokohori (eds) (1997)Environment, Energy, and Economy: Strategies for Sustainability.Tokyo: The United Nations University Press



KHALIL, Tarek M (2000)Management of Technology: The Key to Competitiveness and Wealth Creation. Boston: McGraw Hill.

MOORE, Curtis (1995)Green Gold: Japan, Germany, the United States and the race for environmental technology. Boston: Beacon Press.

PACK, Thomas (1997)10 Minutes Guide to Business Research in the Net. Indianapolis, IN: Que-MacMillan.

POWER, Roger, Daryl Ditz, Paul Faeth, Nels Johnson, Keith Kogloff, James J. MacKenzie (1997). Frontiers of Sustainability: Environmentally Sound Agriculture, Forestry, Transportation, And Power Production. Washington, D.C.:Island Press.

SCHMIDHEINY, Stephen (1992)Changing Course: A Global Business Perspective in Development and the Environment. Cambridge, MA: The MIT Press



SENGE, Peter, Art Kleiner, Charlotte Roberts, Richards Rors, George Roth, and Bryan Smith (1999). The Dance of Change: The Challenges of Sustaining Momentum in Learning Organizations. New York: Doubleday.

STENSON, FredThe Last Stack: Entrepreneurism and The Environment. Calgary, CA: CETAC-West

TOFFLER, Alvin (1970)Future Shock. New York: Randem House

WARNECKE, H.J. (1993)The Future Company. New York: Springer-Verlag

WORLD BANK (1999)Making the World Sustainable. Washington, D.C.: IBRD

WORLD BANK (1999)Greening Industry: New Roles for Communities, Markets, and Governments. Oxford: Oxford University Press


SELECTED BIBLIOGARPHY ON SELECTED BIBLIOGARPHY ON ENVIRONMENTENVIRONMENT--FUTURE BUSINESSFUTURE BUSINESS

BAILEY, Ronald (Ed.) (2000)Earth Report 2000: Revisiting the True State of the Planet. New York: McGraw Hill. 362 p.

BANSAL, Pratima & Elizabeth Howard (1997)Business and the Natural Environment. Eds. Oxford: Butterworth-Heinemann. 278 p.

CHARTER, Martin and Anne Chick (1997)“Welcome to the first issue of the Journal of Sustainable Product Design,” J. of Sustainable Product Design. April. p.5.

HAWKEN, Paul, Amory Lovins, & L. Hunter Lovins (1999)Natural Capitalism: Creating the Next Industrial Revolution. Boston: Little, Brown & Co.

HUTCHINSON, Andrew & Frances (1996)Environmental Business Management. London: McGraw-Hill.


SELECTED BIBLIOGARPHY ON SELECTED BIBLIOGARPHY ON ENVIRONMENTENVIRONMENT--FUTURE BUSINESSFUTURE BUSINESS

International Chamber of Commerce (1991)The ICC Business Charter for Sustainable Development. April. (Adopted earlier by the 64th Session of the ICC Executive Board on November 27, 1990)

McGraw, Thomas K. and Jeffrey L. Guikshank (1999)The Intellectual Venture Capitalist. (Eds) Boston: Harward Business School Press. 353 p.

Teoh Cheng Hai & Martin Abraham (1996)Towards Corporate Environmental Excellence: Golden Hope Plantations Berhad.

Van Glabeek Huib (1997)“Gallery: Space & Water Saving toilet & washbasin Combination,” The Journal of Sustainable Product Design. July. P.46.


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corporate environmentalism in malaysia · 2008-05-22 · corporate environmentalism in malaysia by...

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