Talk:Chem395:April 25 discussion

How could one change the corporate culture within a company from a traditional view (environmental regulations are just a burden) to a progressive view, where environmental factors are considered right from the start in product & process design, as well as in the accounting. Today's discussion will consider how best to convince both managers and workers. See the article page for background information.

Preparation

• Chem395:Unit 12

Agenda

• What strategy should we use for changing the corporate culture at a company like Acme? At a major company, like Du Pont?
• How could we convince management to support such a change?
• How could we convince ordinary workers to support such a change?

Some of the Acme people may drop in to help the discussion.

Discussion

Is everyone here now? Walkerma 15:59, 25 April 2008 (EDT)

Hello! J-Fed 16:01, 25 April 2008 (EDT)

Yes sir. Murphy44 16:02, 25 April 2008 (EDT)

OK. You're an enlightened 21st Century executive in a company. How do you go about changing the corporate culture? What's the best strategy to make the environment a real priority, instead of just something you tack on for PR for marketing? Walkerma 16:05, 25 April 2008 (EDT)

The Three-Factor Scorecard is an excellent method for the company. The scorecard measures long-term strategies for competitive success. It will help cover performance indicators and develop management systems that cover: economic, environmental and social performances. According to Dorff (435) "The advantage of the scorecard approach is that it trains business attention on a range of different performance measures." "[...]A well-developed TFSC provides a company's strategy and vision and serves to create shared understanding." "It enables learning at all levels of the organization." J-Fed 16:09, 25 April 2008 (EDT)

Quality of life (QOL) can be measured as well as improved (Dorff 435). This allows questions concerning results, outputs, performance etc to be asked. J-Fed 16:11, 25 April 2008 (EDT)

Balance is needed in the economic sector, community broad participation and measurable goals are the components of QOL. It is necessary to follow these in order to evaluate QOL in the company. J-Fed 16:13, 25 April 2008 (EDT)

It is important for social investing and innovation to take place within the company. Fostering the knowledge and improving morale is important to boost productivity. J-Fed 16:15, 25 April 2008 (EDT)

I completely agree with what J-Fed is speaking about, This idea of a TFSC "provides a company's strategy and vision and serves to create shared understanding." Dorrf (435) thus understanding is created through a medium that big business can relate to. The goal will be to create a greener world and the TFSC is the medium to get there. Murphy44 16:17, 25 April 2008 (EDT)

Corporate culture has thus been altered in such a way that will be beneficial to the environment. Murphy44 16:19, 25 April 2008 (EDT)

For the TFSC I would break down the company as follows - Main Factors include objectivity, performance and output. These are combined with the company's management strategies, vision and goals. These combine with the customers / community and the business (processes/ outputs/inputs). All of these stem from the learning and growth from th employees and supervisors. J-Fed 16:18, 25 April 2008 (EDT)

Social investing is a major factor in business. I'm assuming the company is public, but if not private companies still require their board members (shareholders) to be socially responsible managers.J-Fed 16:23, 25 April 2008 (EDT)

How would this work at a company like Acme? Walkerma 16:21, 25 April 2008 (EDT)

A company like ACME the social investing and Innovation that J-Fed talked about would be a great way to get the ball rolling. New R&D could result in new greener processes that could benefit both the environment and ACME in the long run. Murphy44 16:23, 25 April 2008 (EDT)

R&D is all well and good, Murphy, and I agree it goes a long way, though it's also expensive, and equally important that a company keep a finger on the pulse of the industry so to speak.. be ready to take advantage of ingenuity elsewhere. Don't be afraid to stand on the shoulders of giants (IE.. subscribe to some trade journals,they're worth it). JGrinst21 16:25, 25 April 2008 (EDT)

I'm the Chief Financial Officer at Acme, and I'm sorry to say we can't afford to do all these things. The company is really hurting in the current economic climate, so we can't afford to indulge in these sorts of programs any more, however laudable they may be. We need to be cutting costs, not adding to them. JaneDoe 16:27, 25 April 2008 (EDT)

The TFSC would work at ACME because of the strong environmental and social influence it possesses (with the ISO 14000 certification!). The strategies ACME has been pushing for are easily mapped onto a TFSC. Utilizing such a system is beneficial for all of the workers there. Having a clear vision and goal (strategies), looking at the customers and suppliers, the financial aspects as well as the business itself allow for discussion and social investing. Social investing will reduce risks at ACME and provide more stable returns. J-Fed 16:27, 25 April 2008 (EDT)

I propose a drive towards sustainability. Called Servicising. "An increasingly utilized business model centered around selling the services a product delivers, rather than the physical product itself (Dorff 458)."An example of this is FORD and DuPont. In servicizing, buying and selling are not the major concern, rather, leasing, take-backs, and sharing. value becomes the main target - the creation of the product and its benefits - not the money. J-Fed 16:33, 25 April 2008 (EDT)

SO in doing this ACME's quality and productivity would increase, there by increasing the profit margin. Murphy44 16:37, 25 April 2008 (EDT)

Could we perhaps start a bit more simply, and offer a percentage of savings (say, 10%) of any innovations rendered by one of our employees, as a bonus to said employee (or group if more than one person was involved in said idea. I received some very nice christmas presents as a kid because of a policy like that at ALCOA. JGrinst21 16:35, 25 April 2008 (EDT)

Ms. Doe, is this plan economically feasible at ACME?Murphy44 16:39, 25 April 2008 (EDT)

The Three E's are something that ACME needs to take into consideration Jane. They are environmental quality, economic health and social equality.The government has many councils and agencies that deal with these sorts of things. There are documents called master plans that each state and city create (Dorff 462). These documents allow the community to be involved in the company as well as making the company comply with a varietey of standards. Incentives are offered in the private sector, sustanability through municipal operations, leadership tactics and environmental/business collaboration are all ways that ACME can utilize the TFSC method. J-Fed 16:40, 25 April 2008 (EDT)

I really like the servicizing idea, though it probably isn't so appropriate to a company that specializes in custom chemical manufacture (they only get the specialist expertise after they get the order). Jason's idea is a nice one; it won't change the entire corporate culture, though it will nudge it in the right direction. As for the 3Es, people will remain skeptical of the costs. It's scary, this new unknown, territory. Walkerma 16:43, 25 April 2008 (EDT)

It is possible to change ACME's production patterns - not just consumption. Each of these proposals though can be integrated together though, at least on some small level like incentives. It is possible to adopt new methods of handling these types of questions / scenarios.J-Fed 16:45, 25 April 2008 (EDT)

I think Jason's idea is economically feasible, especially if it encourages people to work on such things. As for getting the community involved in our company, this all sounds a bit hippy-ish to me. Incentives are all very well, but I don't want us to become dependent on government handouts, I'd rather put my trust in us making products competitively and safely. Let's comply with the regulations, but if EPA doesn't require it we're stupid to go beyond the minimum requirements. Our basic need is to make money by making chemicals, period. If we get off onto all this sustainability stuff, our competitors will just come along and take our business. JaneDoe 16:49, 25 April 2008 (EDT)

How are we as a company to make any progress towards sustainability if we are only doing the bare minimum? I thought our goal at here at ACME was to be an industry leader in this area. I understand that we need to make a profit on the chemicals we produce to stay in business, could we charge a larger amount for more eco-friendly chemical production perhaps? Murphy44 16:54, 25 April 2008 (EDT)

I'm Joe Smith, Union organizer at Acme. Jane may have a point. I've always been very supportive of environmental initiatives, and I've backed Jesse's ISO14000 initiative. But with the recent layoffs in the town, some of my members are getting worried. What if we make ourselves so environmentally responsible we become uncompetitive? Then we all lose our jobs, and the work goes to some factory in China where they just dump the toxic waste in the river! The guys on the plant will need a lot of convincing that we can afford to do this. Joe Smith 16:51, 25 April 2008 (EDT)

Yes, it is difficult to balance these things out. I believe that the amount of money ACME has saved through insurance, audits, as well as the lower risks associated with the chemical processes, has offset the "losses" we are talking about. The approach ACME has been taking is working very well.J-Fed 16:56, 25 April 2008 (EDT)

My impression is that you are presenting some very good arguments for making the move, but in practice you would find many in the company remaining skeptical or suspicious. I think you need not only a strategy for introducing an environmental plan, you need a strategy for winning people over to the idea. Unit 12 talks about this. You often have to show in small ways first – try the idea on one process, and then when (hopefully) it is successful you will find people much easier to convince. I've seen a company turned around on safety with such an approach.

OK, we'll close there! Homework is due tonight, don't forget. Have a good night, User:Walkerma 17:01, 25 April 2008 (EDT)

Great! Thank you! Have a great weekend everyone! J-Fed 17:02, 25 April 2008 (EDT)

Night all Murphy44 17:03, 25 April 2008 (EDT)