Case Example of Corporate Environmental Strategy in Practice

In this new century, there is considerable pressure on the top six automakers to reduce their environmental and ecological footprint calculation. The automaker that wins the race to build and sell the superior car will shape consumer preferences, thereby boosting sales and profits. The winning firm will fashion a corporate strategy that drives automobile emissions to near zero while simultaneously providing high levels of performance, safety, and comfort. (more…)

Relating Corporate Environmental Strategy to Product Innovation and Strategy

In the pursuit of superior cars, electronic products, and computing, several leading multinational corporations began in the last quarter of the 20th century to tie Corporate Environmental Strategy to their product strategy. Leaders such as Toyota and Honda are classic examples in the automotive industry, as are Shell and BP in the petroleum sector.

Those firms that had successfully integrated Corporate Environmental Strategy into their normal business functions by the new century shared a common set of attributes. These attributes are described below as ‘‘generic’’ elements of allowing Corporate Environmental Strategy to be elevated within a corporate setting, as they often depend on organizational dynamics or a unique set of executive interests and needs. (more…)

Relating Corporate Environmental Strategy to Corporate Change Initiatives

There are several options that, ultimately, must be integrated when attempting to realize a change in corporate culture: the legal remedy, which is necessary to spur on the slow movers; the money remedy, which does not mean blindly throwing money at an environmental problem, but instead taking a more strategic approach; and finally, the regulatory remedy, which moves beyond simple regulatory compliance to a level of strategy that allows a company to stay ahead. (more…)

Corporate Environmental Strategy: Honda, Toyota, Shell & BP

Corporate environmental strategy (CES) involves the tools, management programs, processes, and product development choices that allow a firm to pursue competitive advantage through environmental management strategies.

Management scholars such as Deming and Juran spent several decades after World War II making sure that quantity and quality processes entered the plans of corporate strategy, along with the classical concerns of price, technical quality, and distribution matters. In a similar but often more diffuse manner, the proponents of corporate environmental strategy began, in the l970s through the l990s, to alter the standard decision models of corporate strategy to include externalities that challenged the future growth of corporations, such as new environmental regulations or irregularities in energy markets and pricing. (more…)

Reducing the Use of Gasoline | Corporate Average Fuel Economy

gasoline consumption

Whatever the actual motivation, American policymakers perceived a need after 1973 to restrict automobile and light truck consumption of gasoline. How The Energy Policy and Conservation Act of 1975 imposed Corporate Average Fuel Economy (CAFE) standards on all auto and light truck manufacturers who sold vehicles in the Unite d States. The weighted average of miles per gallon (MPG) for each manufacturer’s car sales was required to be at least 18 MPG by 1978 and 27.5 MPG by 1985. Manufacturer s that failed to meet this standard were to be fined $50 per vehicle sold for each gallon (of MPG rating) by which they failed. (more…)