Literature Review - Balint Bianca - Carina

8/13/2019 Literature Review - Balint Bianca - Carina

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Environmental Management - 1

A REVIEW ON CROSS BORDER ENVIRONMENTAL MANAGEMENT

Balint BiancaCarina

The Bucharest University of Economic Studies

Faculty of International Business Relations

Masters of International Business Management

Introduction

In order to ensure a positive environmental performance, an organization needs to have

an Environmental Management System (EMS) well established. Environmental Management

System is one of the most widely used environmental management tools throughout the world. It

helps the organization to identify potential environmental impacts, to protect the environment

and to manage their activities in an environmental friendly way.

The environmental management is a well described phenomena at the national and plant

level, but little is known about how firms are organizing environmental dimensions as they

become internationalized. In order to capture this international aspect, the concept of cross

border environmental management has been coined.

This study provides a literature review mainly on several areas: EMS related concepts, itsapplication in transnational corporations and the role of Non-Governmental Organizations

(NGOs) as trans-boundary actors in environmental management.

Literature review

Lately, the worldwide business community has seen a growing demand for effective and

integrated environmental management. This has resulted from various factors, such as the

evolution of governmental environmental regulation and legislation, the increasing concern

about environmental issues, growing demands for better resource management and reduced

environmental pollution (Bowers and Cornish, 2000).

Environmental management is considered as a methodology for managing the operations

of an organization to ensure they are performed in an environmentally responsible manner. (Hua

Wang and Wu, 2013).


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At present, there are many environmental management tools in use, such as

environmental auditing, substance flow analysis, environmental impact assessments and

environmental management systems (Ramos et al., 2009). These tools were developed to help

the actors in the struggle towards a more ecologically sustainable development. (Emilsson,

2005).

One of the most commonly used tools in organizations worldwide is the Environmental

Management System (EMS) which is implemented through the International Organization for

Standardization (ISO) 14001 (Hua Wang and Wu, 2013).

At the time of the global economy and integration processes that are conditioned by it,

regionalism becomes an inevitable factor of sustainable development of countries and wider

regions. European space is characterized by significant experience in regionalization, particularly

in member states which are establishing connections in order to achieve their development

interests and be linked with each other (Milenkovic, 2012). The objectives of this regionalization

are primarily: to improve and harmonize of the economy, increase the attractiveness of the

region for investors, promote cultural, educational, scientific and tourist links, and joint

environmental programs,etc (Milenkovic, 2012).

The globalization of economic activity in general, and the growing role of transnational

corporations (TNCs) in particular, have increasingly directed attention toward the environmental

consequences of these developments (Hansen, 1999). A transnational corporation is defined as a

firm having productive activities in two or more countries (Hansen, 1999).

Transnational corporations (TNCs) tend to be very large producers of pollution due to

their size and predominance in pollution-intensive industries such as chemicals, petroleum and

mineral extraction and processing (Levy, 1995). There is a pertinent need to gain better

understanding of the environmental implications of TNC activity in developing countries. To

capture the international aspect of environmental management, the concept of cross border

environmental management has been coined (Hansen, 1998). The cross border environmental

management practices are the environmental bridge between headquarters and foreign affiliates

(Hansen, 1999).

It has been said that a cross border environmental management system will have at least

five elements (Hansen, 1999): general principles for the environmental activities of the entire

corporation, more specific policies and programs that are applicable throughout the corporation,


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various procedures for monitoring and controlling whether the environmental conduct of the

foreign affiliates are operating in accordance with regulation and standards outlined by

headquarters (pre-acquisition assessments, environmental reporting procedures or auditing

procedures), training, education and information exchange programs and activities and a formal

organization, where responsibilities and functions are delineated and allocated between entities

and persons.

Cross border environmental management practices are becoming increasingly widespread

among TNCs and are a discipline within corporate management in the process of being

formalized and standardized (Hensen, 1999).

A significant role in influencing sustainable development is played by Non-

Governmental Organizations (NGOs) in general and Environmental Non-Governmental

Organizations (ENGOs) in particular. They are trans-boundary actors in environmental

management and sustainable tourism development (Sithole, 2005). Recently, the roles of NGOs

have witnessed notable transformation to attain higher levels of competency and influence over

policies in the various sectors they operate, occupying critical gaps as important participants in

environmental management (Sithole, 2005).

As Sithole (2005) said, highly professionalized ENGOs are more likely to influence the

politics of environmental agenda setting both nationally and internationally by using officially

available information and more importantly, information they generate and compile using their

own expertise. But still, a successful management in this area requires a high level of

cooperation with neighboring communities and the development of sound and effective joint

management frameworks that transcend existing political regimes (Sithole, 2005).

Conclusion

This study has contributed to an understanding of EMS concepts, its application in

transnational corporations and the role of Non-Governmental Organizations (NGOs) as trans-

boundary actors in environmental management.

Although relevant studies have been conducted, they still do not provide sufficient

understanding of an EMSs effect on policy formulation, environmental performance and social

influence. Knowledge gaps between the EMS efforts and improved environmental performance

need to be identified; further research on how to evaluate EMS effectiveness is therefore needed.


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Literature Review - Balint Bianca - Carina