Improving Understanding on the social aspect of IE

IS ECOINDUSTRIAL DEVELOPMENT PERCEIVED AS A WAY TO OVERCOME THE CRISIS IN REGION X?

Ecoindustrial development refers to a group of practices found within a collaborative community of manufacturing and service companies striving for improved environmental and economic performance by managing resources such as the energy, water and minerals (Cote, 2000).
The eco-industrial development has proved to respond to the aims of corporate social responsibility and environmental management between organizations. For centuries this kind of development has been applied to preserve valuable resources, innovate and to increase the economic profit of the participating firms (Trillium Planning and Development, 2003). However these practices have emerged from spontaneity and without a conscious and systematic approach that potentializes these linkages. Currently the eco-industrial development has found restrictions due to market distortions, regulatory barriers and mainly a lack of comprehensive models to evaluate projects of this nature(Desrochers, 2002). Considering the above and facing the current economic and environmental crisis, we want to know how conscious and systematic is the application of ecoindustrial development in order to comply with environmental law and still make profit. This research objective will be answered through direct interviews with the most representative private sector and the public sector of region X, and by exploration on scientific literature and news of different media related to these practices. By doing so it will be determined the knowledge of an ecoindustrial approach, the frequency of its application within and among firms, and the support (or lack of it) that such strategy has obtained from the public sector.

HYPOTHESIS:
1. Less than 50% of the private companies and public entities from region X has a conscious knowledge on ecoindustrial development.

2. projects and activities related to ecoindustrial development are scarse and don´t show a tendency to grow over time

3. The participation of the public sector on ecoindustrial projects or activities is nule or negative

VARIABLES:
1.
Independent: percentage of private and public entities with clear knowledge about ecoindustrial development
Dependent: Knowledge on ecoindustrial development
Categories:the concept is in practice, the application of this strategy is in development, there are unconscious practices, know the theory but there is no practice, has heard of it, never heard before.

2.
Independent: frequency and tendency of ecoindustrial projects /activities in region X
Dependent: number of ecoindustrial projects /activities in region X and year of implementation

3.
Independent: participation of public sector on ecoindustrial development
Dependent: regional and/or national existing policies, rules, subsidies, etc. related to ecoindustrial activities
Categories: involved with regular requirements, there are restricting policies, subsidies are given, etc.

Resources:
Agarwal, A. and Strachan, P. 2006. Literature review on eco-industrial development initiatives around the
world and the methods employed to evaluate their performance / effectiveness. The Robert Gordon University URL:http://www2.rgu.ac.uk/abs/National%20Industrial%20Symbiosis/Report%20for%20Databuild%20New.pdf

Cote, R. P. 2000. A primer on industrial ecosystems: a strategy for sustainable industrial development. Halifax, Industrial Ecology Research and Development Group, Dalhousie University.

Desrochers, P. 2002. Industrial ecology and the rediscovery of inter-firm recycling linkages:
historical evidence and policy implications. Industrial and Corporate Change, 11, 1031-1057.

Trillium Planning and Development Inc. 2003. Eco-industrial development feasibility study: City of Fairborn, Bath and Mad river townships. Wright State University, B-W Greenway Community Land Trust.

LCA IMPLEMENTATION BY THE GOVERNMENT

Using external control as coordination

The government could make mandatory for the companies the declaration of data on solid, liquid and aerial wastes per production or monetary unit; by doing this it would allocate value on the environmental aspect of supply chains.

       This new policy accompanied by a new governmental entity, the ‘LCA department’ would encourage LCA implementation by providing theoretical and technical support to companies. The success of this process would generate a certificate of compliance that could mean a reduction on taxes. The failure on the implementation of clear processes (like LCA) to declare wastes and emissions could be penalized by an increase in taxes, a fee or temporary financial blockage with banks. These measures would alter the market conditions in a company-individual basis.

Other mechanism can be a policy that establishes top limits on emissions and wastes. This must provide reasonable deadlines to reach those goals, during which companies would seek for solutions, among those hiring a consultancy or implementing their own environmental department that would approach the problem with tools such as LCA. This policy can also have the goal to improve the statistics that can support the country´s participation on international meetings on environmental issues.

Setting boundary conditions

Altering available information:

The government can start a media campaign to exert pressure on companies to reach sustainability by the implementation of tools such as LCA. This public governmental program can also include the promotion of links between companies and educational institutions. Little by little these mechanisms can be ruled so companies will be audited (monitored) for it, and will generate a certificate which will be the way to acknowledge population about the company´s practices and therefore will improve or not its image and sales.

The analysis of the previous options with Sabatier and Mazmanian (1980) Implementation process flow diagram, presents the following insights:

For all the options to implement LCA through external control, the availability of technology and technical theory wouldn´t be a constraint since there is abundant information on LCA theory and case studies; although preference should be given to the literature developed in similar contexts. This is crucial to avoid unambiguity on the interpretation of the policy. The target companies would be varied in terms of their activities but in order to promote and consciously monitor the policies’ implementation it would be important to narrow the target companies by criteria such as their relevance in the market, time of operation, level of industrialization, profits, etc. This selection would avoid failure for example in the case of financial constraints when new personnel be needed to implement the policy. In the long term and according to the feedback on the first experiences, more companies can be included.

It is important that the given options can develop for a time frame that considers the requirements in economic and social investment to comply the policy in a company’s practices; also they must be constantly informed about obstacles in general and specific cases, otherwise the policy implementation would fail.

In one of the options provided, the hierarchical integration among integrating institutions is intrinsically contemplated with the idea to develop links between companies and educational institutions. This integration could also happen based on existing social networks, or not happen at all. In this order of ideas, the decisions or rules to implement the new policy can also be completely innovative and/or easily copied and adjusted.

The way considered in the options for outsiders (population) to have access, is by the certificates. Many companies include these symbols in the packages of their products or in their propaganda.

As the options only consider a relative small percentage of the population, the strategy of the media campaign would focus the attention on this group. This can work on contexts where big companies have even more power than the government.

The last consideration is about the availability of people with the knowledge and leadership to implement the policy, since this is a common topic for developed countries but very recent for developing countries.

References: 

Sabatier, P. and Mazmanian, D. 1980. The Implementation of Public Policy: A Framework of Analysis. Policy Studies Journal 8(4):538-560 

THE OCEAN, A COMMON POOL RESOURCE

To harvest the ocean in a sustainable way and with the new possibility to communicate among teams, I offer different conditions to try to play all proposed rounds (8)

1. The 5th round should be a selective ban where only teams with at least 2 or 3 good points can harvest. How this selection takes place?
The facilitator gives a good point (can be a check mark on the paper) for teams choosing sustainable numbers (4 or below), and a bad point (an x can be) for teams choosing unsustainable numbers (5 and above). The ban can potentially even teams points.
Some teams will strive to get the 3 points, but still will have a round to "maximize profits". 
Some teams may have the strategy to maximize profits the first rounds, voluntarily refraining to harvest on the selective ban. 
Considering all this possible behaviors, I still think this set would incentivate long term sustainability. This condition doesn´t need team communication but will make evident which groups have overfished when the selective ban comes.

2. After each round all teams must say loud their catch (either if it is true or false), so a tentative report table can be built and will be considered for next harvest.
With this condition, all teams will be pushed to reach legitimacy, at least in public, and their trust will be tested. 

                                www.thebeachfrontclub.com

YUMBO ENTERPRENEURS, MEN OF FEW ALLIANCES

    The Pacific Pound Point, Yumbo and Industrial Zone Icon

INTRODUCTION TO THE STUDY CASE

Yumbo is the oldest and one of the most relevant industrial zones in Colombia. Currently there are located 461 big companies. Why? for its advantageous geographical position (close to a maritime port (Buenaventura) and to the airport), good road infrastructure and municipal tax incentives. These reasons together with an increasing urban growth and the high possibility to access the national market were and still are fundamental to attract foreign investors (1).

The entrepreneurial sector in Yumbo is apparently well organized; in 1982 it created FEDY, which is the Entrepreneurial Foundation for Yumbo´s Development. This is a non-lucrative organization that aims to improve the life quality of the inhabitants by promoting, leading and executing social, economic, political and cultural development in a cooperative network between the government, firms and the community. Business management is one of the working branches of this entity, which projects have been related to topics such as road infrastructure, public services, environment, mobility, security, local taxes and municipal development plan. Recently it is working in a project called PREZI that aims to improve the regional infrastructure to avoid damages from floods (4). It is also coordinating the MEPY, an entrepreneurial table pro-Yumbo to support local government plans (2).

Although less common, there are also strategic connections related to products and their production processes. For example, companies such as The Paper Producer S.A., Propal and Colombian Cardboard strategically set in the region to produce paper from the sugar cane bagasse, which is the prime culture of the entire state (Valle del Cauca). The local government currently allocates around €117000 to the promotion of associations and alliances for entrepreneurial and industrial development (1). Public information of these alliances is not easily available.

In spite of all previous information, in May of this year was published an article titled “Yumbo Enterpreneurs, men of few alliances”. In here is concluded that “Yumbo´s entrepreneurs are not prompt to strategic alliances (49%), neither go to the academy in search for innovations. Most don´t know the governmental entities that can boost their new ideas; they look for alliances only to have access to financial resources” (3).

In October of 2012 the entrepreneurial sector and local government signed The Agreement for Transparency, where all actors committed to work for Yumbo´s development under ethical parameters that allows the achievement of common goals (2). This clearly shows there is an evident lack of trust mainly between entrepreneurs and the local government that needs to be reestablished for the good of the whole region.

WHICH TYPE OF NETWORK IS THIS?

Yumbo industrial zone seems to fit better into the coordination mechanism of private interest and government, because the entrepreneurial sector is constant compared to the changing local government. There is a constituted entity even physically located (5), that represents the sector (2).

However the relations created within this network are not based on material, energy or knowledge exchange, and even though there is not enough information to clearly explain the relation of Yumbo firms with external parties, it can be assumed there are many, as in most cases the consumers and providers are located out of the region/system(3). This network is mainly based on the creation of value as FEDY´s projects are especially about social responsibility. Also, around 60% of the companies were or are in the process of ISO certification to fulfil environmental standards and industries’ grouping is stimulated by issues such as public security.  

There is a slight reference to a network based on rule construction, as there is one that avoids selling properties bigger than 300m² and only 30% of it can be built; the remaining 70% must be restored and or preserved (4). This is an obvious restriction to the establishment of new companies but is being reassessed.

INDUSTRIAL ECOLOGY OR INDUSTRIAL COOPERATION?

Personally, this type of network doesn´t fit tightly into any of the categories given by Gordon and MacCaan (2000). It is an agglomeration because the region offers good conditions for industrial development and entrepreneurs come together to solve common issues like road infrastructure, public services and local taxes. It is a social network because social responsibility is a feature of every project, by directly promoting training and employment and indirectly by common issues mentioned above. The industrial cluster is the less evident from the three categories and owing to low trust this information may not be found on the web.

As an Industrial Ecologist I would find both, constrains and advantages from the current situation. Constrains because of the very few material-based connections. I wouldn´t assure this is  to avoid dependence, it simply seems that firms don´t know their neighbors, at least in terms of their internal processes, less on their by-products and their possible use. They are reserved, their innovations come from their own employees and don´t trust the local government to support them.

The great advantage is the clear starting point for a future implementation of the field of Industrial Ecology; this is FEDY. Its background together with the current projects can prepare the network for a stage that focuses on internal potential connections and the settlement of new resulting industries.  

  

References:

1. http://www.yumbo.gov.co/portalcamy/index.php/indus
2. http://www.fedy.org.co/alianza-empresarial-por-yumbo.html
3. http://www.eltiempo.com/colombia/cali/investigacion-de-caracterizacion-de-tejido-empresarial-de-yumbo/14024736
4. http://elpueblo.com.co/el-pezi-y-yumbo-una-apuesta-al-futuro-industrial-del-valle-del-cauca/
5. https://www.youtube.com/watch?v=EXoQ1CmxvcA

NOKIA IN CHINA, A MULTINATIONAL INSPECTION

Nokia is striving for legitimacy by:

·        Creating corporate social responsibility by belonging to the Dow Jones Sustainability Index and FTSE4good index

·         Building a methodology that includes the education of their own people in this topic and the implementation of external ethical audit for one of its suppliers in the aim to know better their businesses

·         Nokia wants to make sure the supplier´s manufacturing process is legal in terms of the working conditions.

Chinese company in Schengen strives for legitimacy by:

·         Being aware of the risk prevention of every activity at every department (for example hearing protection in the copper wire braiding department); having fire extinguishers.
·         Establishing a welfare committee for the workers
·         At least on the paper, determining legal working times of 8 hours
·         Having a good record keeping system
·         The acceptance of the external audit and the openness to audits´ questions and suggestions
·         The willingness to have a contract for every employer in the future

Nokia´s approach to diffusing sustainability is effective because

·         They talk to the top managers in an assertive way (specially Hanna) as she explains why Nokia is doing this and also recognizing Nokia is new at implementing sustainability criteria in their company. She explains they had to start by reeducating their people. Accepting that they do not know enough about their suppliers and therefore cannot simply incrase expectations by only judging them.

•          As she speaks with the top manager, she explains how Nokia is creating a system for being sustainable, therefore indirectly teaching them how to do it themselves. For example determining the ethical requirements expected from suppliers, the communication and monitoring of these.

•          She explains the economic advantages of such audits to Nokia, like incrasing product price and also protecting themselves from any disadvantageous news; in general terms reducing the the risks to damage the company´s good will.

•          The general feedback from the audit starts with a very possitive output, the indication of the aspects to be improved is clear and consistent.

•          They communicate with managers of different levels, allowing them to individually think on what is wrong and how it could be improved. This is a simple way to multiply the message.

How could another coordination mechanism improve on this?

Clearly, the Chinese company has already managed to overcome legal aspects set by the government. So I consider a worker union as a self-governance coordination mechanism that can improve working conditions for the factory. If workers are given a higher voice, where first, they know the law, second, keep track of its compliance in the factory, the conditions would be more ethical not only within the company but in the country and for the European suppliers. 

TAYRONA´S GRANT: A PERFECT MIRROR OF FRIEDMAN STATEMENT

"YOUR HEART IS CLEAN

DO NOT CONTAMINATE IT WITH TRASH.

TAKE IT OUT OF THE PARK"

Friedman´s theory is well reflected in the current situation of Tayrona National Natural Park (PNNT) The park was granted to a big touristic company, which set a touristic monopoly. This almost eliminated the free touristic market among locals. Some had to decide between working for the company or perish.

I visited the park in 2000, before the grant and this year after 9 years of grant, and I have to admit that the natural resources are evidently better preserved. The place looks cleaner and better organized. At the entrance all visitors must sit for half hour and listen to instructions to follow inside the park. There are many pathways above ground level from which I could see a whole variety of fauna, not afraid of observers. During high season the charge capacity is respected, which means there is a limit of 400 visitors at any time.

The grant is supposed to finish in a years, but there are already rumors of an extension. Locals complain and the public point of view is that the park is being privatized. Indigenous tribes are regaining decision power over this land. But in conclusion the management done by the grant has proved the locals aren´t capable of self-organizing and that a profitable company has done a better job at preserving this complex SES. The original purpose was looking for this change but it seems that the company hasn’t organized to leave the business to previous managers, which means there isn´t a guarantee that after they leave, situation will maintain or even improve.

References:

Ojeda, Diana. 2011. Whose Paradise? Conservation, tourism and land grabbing in Tayrona Natural Park, Colombia. LDPI International Conference on Global Land Grabbing. University of Sussex, Brighton, UK.