Business and the environment
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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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Business and the environment

Business and the Environment

“Clean, Green, and Rich”


Mncs and the environment the chemical industry

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


The greener chemical industry

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


Responsible care

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/


Exporting environmentalism rc member associations

Exporting Environmentalism: RC Member Associations


The chemical industry exporting environmentalism

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


Mncs and the environment shell

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


Movement for the survival of the ogoni people mosop

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)


The greener side of shell

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/


Business and the environment

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


Business and the environment

Is this Greening or Greenwashing?


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