What are the surrogate regulators that influence organizations to focus on sustainability? Why are these influential?
What is the relationship among the mission, vision, and value statements to an organization's sustainability? Provide an example of how this relationship works.
What strategies related to environmental policies do companies use to report sustainability? What area of focus would make the greatest effect? How?
What are marketplace considerations for implementing ISO 14000? Does implementing ISO 14000 provide a company with a competitive advantage? If so, how?
First, "certain market forces have served to pressure [businesses]" (Dupont, Theodore & Baxter, 1998, p. 5) to continue observing and honoring regulations well beyond their effectivity.
Second, some of the surrogate regulators that influence organizations to focus on sustainability are the following:
1. Investors such shareholders and creditors including banks
2. Insurance companies
3. Accounting firms
4. International standards such as the ISO
5. The public
Investors such as banks "regularly lend large amounts of money to corporations to enable them to conduct business and to grow" (Dupont, Theodore & Baxter, 1998, p. 13). Naturally these large amounts of money do not come without strings attached. One of these strings is the right conferred to the bank to regularly check into the company. For example, the ability of corporations to pay the money they owe the bank and the interest is directly affected by the firms' other liabilities such as environmental liabilities incurred for violations of environmental laws. Thus banks can indirectly pressure companies to enforce environmental and other relevant laws and hence, indirectly dictate management actions towards sustainability.
Furthermore, these surrogate regulators can increase their influence over organizations' focus on sustainability by being more vocal on their opinions especially as ...
The solution examines surrogate regulators in the marketplace. The relationship among the mission, vision and value statements to an organization's sustainability is determined.