Business Management Articles / Asian
and Business Management
RECONCILING GROWTH AND THE ENVIRONMENT IN ASEAN
By
Rene T. Domingo (email comments to rtd@aim.edu)
It seems that every third world country wants
to be a tiger. As year 2000 looms nearer,
ASEAN governments are planning and hoping
for more accelerated industrial growth to
cap the century. While development is essential
to support and employ an increasing population,
it can take its toll on the environment if
not properly managed. Western nations and
Japan can teach ASEAN a few lessons on the
dire consequences of disregarding the environmental
impact of rapid industrial development. The
governments of industrialized countries have
mostly been reactive in environmental issues,
taking corrective action only after disaster
has struck or mass protest forces them to
do so. Only after companies and enterprises
have wreck havoc on the environment and lives
have been lost that legislation are enacted,
fines imposed, arrests made, and compensation
paid to victims.
ASEAN nations need not prepare for fruitless
crisis management and costly damage control
. They can plan for the preservation and protection
of the environment as they plan for industrial
development. They can take a more proactive
stance now rather than repeat the mistakes
of the West. While forests have been denuded
and rivers polluted in many parts of the ASEAN
region, it is not too late to enact more stringent
legislation to avert industrial disasters
and environmental crimes of the magnitude
experienced by industrialized states. With
its lack of environmental concern, ASEAN is
still fortunate not to have catastrophes as
horrific as Minamata (Japan), Thalidomide
(Germany), Three Mile Island (USA), Exxon
Valdez (USA), and Chernobyl (Russia). But
the region may soon run out of luck for the
most recent and deadliest environmental disaster
occurred in Bhopal, India which is much closer
to home and is very similar to ASEAN conditions.
While ASEAN have enacted some laws on the
environment, these are not comprehensive and
tough enough to change corporate behavior.
Penalties for violation - e.g., for polluting
the river - may amount to less than $10. With
this degree of threat, corporations will not
be excited to invest in multi-million dollar
equipment to process industrial wastes before
discharging them into the environment. With
little or no legislation, profit-oriented
companies will not voluntarily spend money
on investments -- equipment and safety training
-- which, in their view, will not give immediate
payback and benefit to their stockholders.
As we move full speed along the road to development
without minding the environment, every ASEAN
town or city becomes a potential Bhopal or
Minamata.
There are various ways in which legislation
and corporate policies can help preserve the
environment to make it more safe, healthful,
and life-sustaining. Preserving the environment
is not just about making it "clean and
green". It is not just about dredging
rivers and planting trees. There are two ways
man destroys the environment - he dirties
it or he consumes it. Dirtying it means polluting
it or littering it. The countermeasures are
reprocess (e.g. waste water or industrial
fumes treatment ) and recover (e.g. oil spills
recovery). Reprocessing and recovery are steps
in damage control and prevention.
While polluting the environment may be more
sensational and newsworthy, the equally important
crime is wanton consumption of natural resources
and use of environment-unfriendly materials.
The countermeasures in this regard are: replenish,
reduce, replace, reuse, and recycle. These
steps have to do more with increasing operational
efficiency, rather than damage control or
crisis management. We replenish when we replant
trees used in logging. When designing or redesigning
a product, companies can reduce its usage
of scarce materials like wood or animal skin,
or its usage of environment-unfriendly materials
like non-biodegradable plastic, asbestos,
or freon. The other option is to replace parts
and materials with more abundant or more environment-friendly
ones. To reuse materials, especially packaging
materials (e.g. Coke bottles) is another way
to reduce consumption and litter. Finally,
if materials cannot be reused, they can be
recycled. Some commonly recycled waste materials
are paper, plastic, glass, metal, rubber.
As an offshoot of Total Quality Management
(TQM) to improve product and service quality,
some companies in the West are going into
Total Quality Environmental Management (TQEM).
TQEM is a refreshing development and a powerful
business philosophy that can reconcile the
corporate goals of growth and profitability
with social responsibility to the community
and environment. Companies are now beginning
to realize that the quality and safety of
the environment they operate in are just as
important as the quality of the products and
services they sell. It also means that customers
include not only people who buy and use products,
but also the community the companies do business
in.. TQEM ranks safety the same as the business
goals of quality, cost, and delivery. ASEAN
governments and companies should look into
TQEM as a useful framework and guide in reviewing
and formulating legislation and policies that
impact on the environment.
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