Abstract
CORPORATE CONDUCT AND ENVIRONMENTAL REFORM
by
Gregory Matthison
May 1994
A new corporate environmentalism is seemingly upon us.
Faced with increasing pressures from legislators, regulatory
agencies, courts, stockholders, employees, consumers and
the general public, corporations are beginning to construct
and implement meaningful environmental programs. Many firms
are also realizing that adopting more proactive programs
makes good business sense. The contributions of private
sector business activities to national and global environmental
problems are well documented. Given the leadership role
assumed by corporate America, there is a need to better
understand the motivation behind this heightened commitment
to environmental reform and its manifestations.
This masters project investigates the progress of large
U.S. corporations in the area of environmental management.
A survey was distributed to a target group of senior environmental
executives at approximately 100 large companies in diverse
industries. The survey requested information on the attitudes
and beliefs of these managers in an attempt to better understand
the motivations behind recent changes. The survey also requested
general information on the structure and inner-workings
of environmental programs in order to learn how leading
corporations are approaching implementation. A response
rate of approximately 40 percent was achieved.
The results indicated that while the companies surveyed
continue to be motivated by the need to reduce liability
and compliance costs, a longer term, strategic perspective
is also driving changes in environmental practices. Moreover,
engineering based approaches to environmental management
are still predominant in heavy industry, but the advent
of a more consumer driven market has expanded the scope
of company environmental programs. Difficult trade-offs
between economic gain and environmental stewardship are
still a reality, but innovative programs are believed to
be a source of competitive advantage and are seen as a necessity
from a business standpoint. Where business fails to acknowledge
broader societal responsibilities, the government continues
to institute a command and control approach to safeguard
the environment. A change in the relationship between business
and government is necessary if further progress is expected.
