2. Stakeholder, Definition of Eco-Controlling, Environmental Performance measurement Flashcards
What is Eco-controlling?
Eco-Controlling is the coordination of environmental related actions (and social) in a company in order to increase environmental performance.
EC involves Analysis, Control and Planning with instruments such as Env. cost accounting, LCA, Material Flow Management, Env. performance indicators.
What are the aspects of Eco-Controlling?
–Products and processes of a company with existing or potential environmental risks
–Laws and regulations
–Market and Customer needs and opportunities
–Stakeholder demands
What are the activities and tasks of EC?
- Provide data and information about the environmental performance
- Prepare data for management decisions
- Identify goals and actions
- Ongoing monitoring of environmental related developments, goals and actions
Provide-Prepare-Identify-Evaluate (PPIE)
Shorty, what comprises Strategic Eco-Controlling?
–Sustainability Management and corporate sustainability strategies
–Sustainability Balanced Scorecard
Shortly, what are the instruments of Eco-controlling?
–Environmental-Cost-Accounting
–Environmental performance measurement
–Material flow management
–Life Cycle Assessment
The relevance of ecological and social aspects
of an organisation is dependent on.. What?
•Number of Stakeholders
–Customers, suppliers, authority, neighbour, (labour) unions, NGO´s, …
•Intensity of Stakeholders demands/claims
–e.g. Brent Spar incidents in 1995 (Shell)
•Controversial activities
–Chemicals industry
–Automotive industry
–Genetic engineering
–Nuclear energy
–…
•Influence on organisation´s objectives
Define Stakeholers?
•Stakeholder are people who have an interest in a company’s or organization’s affairs. (Interview with Edward Freeman http://www.youtube.com/watch?v=17hnaKFjDU8&feature=relmfu)
What are the types of Stakeholders?
•Primary stakeholder
–Groups of interest, who are essential for the company’s continuity and success (e.g. staff members, customers, supplier, shareholder)
•Secondary stakeholder
–Groups of interest, who can influence the goals of a company or who are affected of the activities of an organisation (e.g. authorities, NGOs, competitors, …).
What is Stkeholder Engagement?
Stakeholder engagement is the process by which an organisation involves people who may be affected by the decisions it makes or can influence the implementation of its decisions. They may support or oppose the decisions, be influential in the organization or within the community in which it operates, hold relevant official positions or be affected in the long term.
Stakeholder engagement is a key part of corporate social responsibility (CSR) and achieving the triple bottom line. Companies engage their stakeholders in dialogue to find out what social and environmental issues matter most to them about their performance in order to improve decision-making and accountability. Engaging stakeholders is a requirement of the Global Reporting Initiative, a network-based organisation with sustainability reporting framework that is widely used around the world. The International Organisation for Standardization (ISO) requires stakeholder engagement for all their new standards.
Involving stakeholders in decision-making processes is not confined corporate social responsibility (CSR) processes. It’s a tool used by mature[1] private and public sector organisations, especially when they want to develop understanding and agree to solutions on complex issues or issues of concern.
How stakeholders can be engaged?
•Information
–Stakeholder are informed about the decisions of a company
•Consultation
–Stakeholder get the opportunity to present their point of view concerning different topics.
•Participation
–Stakeholder are part of the decision-making process.
What is controlling (management)?
Control, or controlling, is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner.
According to modern concepts, control is a foreseeing action whereas earlier concept of control was used only when errors were detected. Control in management means setting standards, measuring actual performance and taking corrective action.
What are the types of Controlling?
•Strategic Controlling
–Establishing new potentials for success
–Long-term success
•Operational Controlling
–Planning and controlling of operational goals
–Securing liquidity
–Implementing strategic plans and goals
•Eco-Controlling
–Integration of environmental (and social)* matters within management control systems of a company
–Manage (direct and indirect) ecological and social (side) effects of the company´s actions
*classical eco-controlling focuses on environmental issues only, in a broader understanding it covers also social impacts in the sense of sustainability controlling
Eco-controlling in a company: What often happens in reality?
- Not enough information about the company‘s environmental and social situation
- Inadequate integration of environmental matters within the strategic objectives of the companies
- The importance of proactive stakeholder engagement is often ignored
- short-termism
- Focusing on quantitative data, lack of competence in dealing with „soft facts“/qualitative information
- sustainability issues, still in most cases remains a “buzz word”
What are the potential goals of EC in terms of organisation's components? Life-Cycle: Input (resources, materials, energy) Production Product Waste disposal Transport
Life-Cycle→Potential Measures:
Input (resources, materials, energy)→ e.g. reduction of dangerous substances
Production→e.g. Cleaner Production
Product use→minimisingtheenergyconsumption
Waste disposal→e.g. withdrawal of products for recycling
Transport→e.g. optimisation of logistics
What is the role of Environmental performance in EC?
Environmental performance of an organization.
- can be measured with key performance indicators and assessments.
•Central objective of Eco-Controlling
•Environmental Management Systems require the increase of corporate environmental performance
–EMAS: “…supports continuous improvement of environmental performance“
–ISO 14001: „…continuous improvement (of environmental performance) is obligated and should prevent environmental damage”
Stahlmann/Clausen (2000):
–„…direct and indirect reduction of environmental impacts based on global, international, national, regional and organizational environmental objectives”
