in US and Canadian SMEs

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8 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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Role of the Environmental Manager
in US and Canadian SMEs

Professor Scott B. Wolcott, PE

Rochester Institute of Technology


Bocconi University

June 8 and 9, 2009


Bocconi

Bocconi

Workshop Overview


US and Canadian definitions of Small and
Medium
-
sized Enterprises (SME)


Who is the Environmental Manager around
here?


Options for the SME Environmental Manager
in North America


Strategic options for Italian SMEs


SME = SB (US) = SME (Canada)


United States
-

Small Business (SB):


< 500 employees for manufacturing facilities


< $7M annual receipts for non
-
manufacturing facilities


99.7% of all employer jobs


Many exceptions: e.g. Florida SB < 100 employees


98% of businesses in Florida are SB


Private, non
-
farm SB contribute to 50% of US Gross
Domestic Product (GDP)








Bocconi

US continued: 16 Small Business Sectors

% contribution of Small Business towards Sector GDP
(2002)



20% Information


23% Utilities


33% Mining and manufacturing


40% Finance and insurance


41% Transportation and
warehousing


44% Holding companies


49% Trade


49% Waste management
services

















50% Education services


56% Health services


58% Accommodation and
food services


70% Professional and
technical services


75% Arts and entertainment


79% real estate and Leasing


85% Construction


85% Other Services


Bocconi

SME = SB (US) = SME (Canada)


Canada
-

SME


SME is an organization with < 500 employees


Small business < 100 employees


Medium business is between 100 and 499 employees


99.8% of Canadian companies are SMEs


SMEs account for 45% of Canadian GDP


Small businesses with < 50 employees account for 26%
of Canadian GDP




Bocconi

SME = SB (US) = SME (Canada)


Individual economic and environmental impact is tiny


Collectively, SMEs are contribute ~50% of US and
Canadian GDP


Collectively, SMEs are estimated to be responsible for:


60% of all carbon dioxide emissions and


70% of all pollution


73% of Canadian SMEs have not heard of ISO 14001






Bocconi

Who is the Environmental Manager?


No one!


Everyone?


The activities performed by an environmental
manager in a large organization are performed by
one or more people at an SME.


Owner, general manager, facility manager,
production manager, line employees, etc…

Bocconi

Roles for the

“Environmental Manager
s



Purchasing


Develop controls for materials
purchases


Human Resources


Employee training, rewards


Maintenance


Preventive maintenance
programs, ID environmental
aspects


Accounting


Track environmental costs,
budgets, economic feasibility



Engineering


ID pollution prevention
opportunities, consider
environmental impacts of
products & processes


Top Management


Communicate importance of
activities, provide resources,
review progress


Line workers


Provide 1
st

hand knowledge
of environmental aspects,
mentor new employees

Bocconi

Role of the “Environmental Manager”


Strategic choices in the environmental context


External pressures


Governmental agencies


Federal, state, and municipal


Competitors


Community Associations

Bocconi

Strategic choices

for the SME “Environmental Manager”

Proactive


Actions


Cooptation


NBAA (Northwest Baltimore
Automotive Association)


Resource Sharing


Laundry service


Environmental Enacting



Reactive or resistant


Actions


Maintain status quo


Solo protective measures


Reactive Risk Management

Bocconi

Strategic choices

for the SME “Environmental Manager”

Proactive


Outcomes


Greater eco
-
literacy


Enhanced environmental
performance


Better financial performance



Reactive or resistant


Outcomes


Sustained external threats


Forced closings

Bocconi

Options for the Proactive

“Environmental Manager”


Environmental Initiatives (i.e. Low hanging fruit)


Environmental Management Plan


Actions of an organization with regard to environment, regulatory
compliance, establishing and meeting goals and targets


Environmental Management System


Incorporates quality improvement principles


“Plan
-
Do
-
Check
-
Act”


Does not have to include ISO 14001 certification

Bocconi

Incentives and Barriers facing the

“Environmental Manager”

Incentives/Advantages

Barriers/Disadvantages


Lack of resources (e.g. time)


Delays development


Maintain plan


Lack of resources (e.g. staff)


Implementation


review


Promotion of environmental
activities to employees


Starting fresh (w/o previous
exp. ISO 9001)







Enhanced compliance


Improved documentation


Competitive advantage


Cost savings


SME employees multi
-
task


SME Less complex hierarchy


Starting fresh (no EM plan
to replace)







Bocconi

Summary of the Italian SMEs
“Environmental Manager”


Current Business Structure of SMEs


Very small, < 50 employees


Family owned and generational succession


Not always a straightforward succession


Unlikely to learn about innovative ideas w/o economic
driver


Often connected to each other


Part of the same supply chain


Districts








Bocconi

Summary of the Italian SMEs
“Environmental Manager”


Current Regulatory Environment of SMEs


Lots of regulation


Inconsistent enforcement of regulations


Culture of interpreting laws and regulations at all
levels


Little neighborhood influence on SMEs


Slow judicial system


Large bureaucracy system







Bocconi

Bocconi


What to do?


Reactive: Address external threats as SME
group


Initially for economic reasons


Later, environmental compliance


Strategic, proactive initiatives


Lobbying financial sector


Environmental competitive advantage











Strategic Options of the Italian SME
“Environmental Manager”