Thursday, August 20, 2009

Torn Between Compliance and Commitment

Regulatory agencies expect companies to be committed. More often than not, the usual third world company is just complying to environmental standards because commitment to environmental standards or eventual improvement in environmental performance is not the usual goal to achieve a company's bottom line.

In my experience working with ISO14001 firms, getting certified is a requirement by their customer,  often a multinational company with a Triple Bottomline Agenda which in turn forces the toll manufacturer to comply with domestic environmental regulations since to the cost to lose a certification will amount to losing a contract that a business is wholly dependent on.

What if the customer does not require a certification on the part of their suppliers? The motivation of suppliers to comply to comply with environmental regulations is very minimal since it has no effect on their bottomlines.