Role of legal compliance in sustainable supply chains, operations, and marketing

162 Pages·2014·0.96 MB·English

by  John Wood, Legal Scholar Sustainability Advisor

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John D. Wood is the Executive Director of Econautics Sus- E
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free trial, or to order, contact: 
Environmental and Social
[email protected]
Sustainability for Business
www.businessexpertpress.com/librarians Advantage Collection
Chris Laszlo and Robert Sroufe, Editors
ISBN: 978-1-60649-906-1
www.businessexpertpress.com www.businessexpertpress.com
The Role of Legal
Compliance in Sustainable
Supply Chains, Operations,
and Marketing

The Role of Legal
Compliance in Sustainable
Supply Chains, Operations,
and Marketing
John D. Wood, Esq.
The Role of Legal Compliance in Sustainable Supply Chains, Operations, and
Marketing
Copyright © Business Expert Press, LLC, 2014.
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted in any form or by any
means—electronic, mechanical, photocopy, recording, or any other
except for brief quotations, not to exceed 400 words, without the prior
permission of the publisher.
First published in 2014 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-60649-906-1 (paperback)
ISBN-13: 978-1-60649-907-8 (e-book)
Business Expert Press Environmental and Social Sustainability for
Business Advantage Collection
Collection ISSN: 2327-333x (print)
Collection ISSN: 2327-3348 (electronic)
Cover and interior design by Exeter Premedia Services Private Ltd.,
Chennai, India
First edition: 2014
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
Abstract
This book on sustainable business is for advanced business education
students, practicing managers and executives, and environmental lawyers.
Sustainability is a global megatrend with ramifications across all func-
tional areas of business. This book addresses an underdeveloped topic in
the field of sustainable business, specifically, the use of corporate resources
dedicated to legal compliance. Supply chain, operations, and marketing
professionals must know what the applicable legal frameworks are in
order to comply with the law. In order to promote sustainable business,
these same professionals must go beyond mere compliance with these
laws. This book assists readers in both respects by (1) offering concise dis-
cussions of the primary legal frameworks governing the social, economic,
and environmental dimensions of supply chain management, operations
management, and marketing; and (2) making the business case for going
beyond mere compliance with legal requirements. Each chapter ends
with Practical Applications in the form of instructions for practition-
ers to apply what they have learned in the previous chapter. Written by
an expert in environmental law and public policy, this book argues that
companies that go beyond mere compliance with social, economic, and
environmental safeguards inherent in legal regimes will capture greater
benefits and incur fewer risks from their supply chain, operations, and
marketing activities. A sustainable company will go beyond mere compli-
ance with the law.
Keywords
environmental law, marketing, operations, legal compliance, social license
to operate, supply chain management, sustainable business

Contents
Disclaimerxi
Part I The Role of Legal Compliance in Sustainable Business ����1
Chapter 1 Introduction ....................................................................3
What Are We Doing Here? ..........................................3
Let’s Get the Controversy Out in the Open ..................4
Sustainable Business in Context ...................................5
The Good, the Bad, and the Ugly News .......................7
Where Do We Go From Here? .....................................7
Key Terms ....................................................................8
Practical Applications ...................................................8
Chapter 2 L egal Compliance is Merely a Step Toward
Sustainable Business .......................................................11
Compliance as Bare Minimum Care ..........................11
Relationship Between Compliance and
Risk Management ......................................................12
Why Companies Go Beyond Mere Compliance .........14
The Importance of Maintaining Social License ...........16
Violations of Environmental Law ...............................17
Regulatory Arbitrage ..................................................20
Key Terms ..................................................................20
Practical Applications .................................................21
Part II L egal Compliance in Sustainable Supply
Chain Management ���������������������������������������������������23
Focusing on Impacts Upstream and Downstream .......23
Chapter 3 SCM Social Impacts: Human Trafficking ......................25
Key Terms ..................................................................28
Practical Applications .................................................28
viii CoNtENtS
Chapter 4 SCM Environmental Impacts ........................................29
Extended Producer Responsibility ..............................30
Product Design ..........................................................31
Key Terms ..................................................................35
Practical Applications .................................................35
Part III L egal Compliance in Sustainable
Operations Management �������������������������������������������37
Chapter 5 Operations Management and Water Pollution ...............39
History .......................................................................39
Scope and Applications ..............................................39
Business Ramifications ...............................................44
Key Terms ..................................................................46
Practical Applications .................................................46
Chapter 6 Operations Management and Air Pollution ....................49
History .......................................................................49
Scope and Applications ..............................................51
Business Ramifications ...............................................55
Key Terms ..................................................................56
Practical Applications .................................................57
Chapter 7 Operations Management and Industrial Waste ..............59
History .......................................................................59
Scope and Applications ..............................................60
Business Ramifications ...............................................63
Key Terms ..................................................................66
Practical Applications .................................................66
Chapter 8 O perations Management and Workplace
Health and Safety ..........................................................69
History .......................................................................69
Scope and Applications ..............................................70
Business Ramifications ...............................................77
Key Terms ..................................................................80
Practical Applications .................................................80
CoNtENtS ix
Part IV Legal Compliance and Sustainability Marketing �������83
Chapter 9 Truth-In-Advertising and Sustainable Product Design ....85
S.C. Johnson & Son, Inc. and the
Greenlist™ Lawsuit .....................................................85
Federal Trade Commission Green Guides ....................87
Key Terms ..................................................................90
Practical Applications .................................................90
Chapter 10 Truth-in-Advertising and Sustainable Product
Supply Chains ...............................................................93
Greenwashing ............................................................93
FIJI Water and the “Carbon Negative” Lawsuit ..........95
Nike, Inc. and the Sweatshop Lawsuit ........................97
Key Terms ................................................................100
Practical Applications ...............................................100
Part V Legal Compliance and Climate Change Mitigation �103
Chapter 11: EPA’s Climate Change Programs to Date ....................105
The Scientific Rationale for Carbon
Dioxide Regulations .................................................105
Current and Prospective Regulation
of Greenhouse Gases ................................................109
Key Terms ................................................................116
Practical Applications ...............................................117
Conclusion ........................................................................................119
Notes 123
References 133
Index 143