Behavior Actions and Communications of the Firm - Case Study Example

DOW Chemicals Company: Behavior, Actions and Communications of the Firm Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission DOW Chemicals Company: Behavior, Actions and Communications of the Firm The increasing concerns on the issues of climate change in the contemporary world create a point of alarm in regard to the global climate sustainability. The ratification of the Kyoto protocol on 11 December 1997 by different nations in the world aimed at addressing the issues of global warming evidences the continued commitment of nations around the globe to tackle the issues of change in the environment. At the companies’ level, Dow chemicals Company has been in the forefront of addressing the treatment of the natural environment in her operations which has been embedded in the firm’s behaviors, communications and actions. This paper explores the efforts geared towards enhancing its behavior, actions and communications of the firm, and their impacts on the society and the stakeholders. In order to achieve a comprehensive insight into the behavior, actions and communications at DOW chemicals, it is imperative to gain an understanding of a brief organizational history of the company. Background of establishment In 1982, the Midland Chemical Company was merged, a step which was founded on the innovation towards the electrolytic production of bromine from brine which was spearheaded by Herbert Dow. Its locality was in Midland, Michigan which was favorable in terms of extensive underground springs which were endowed with bromine content which was relatively high. But perhaps the most exemplary fact about the establishment of this firm is that a group of Cleveland businessmen, none of whom had a contextual attachment to chemistry acted as the financial sponsors of the company (Peter, 1991, 75). However, despite the new technological advantages that were endowed to this firm, there were some inherent impediments that had to be overcome in regard to marketing and technology. This is best exemplified by the fact that in the epoch of DOW chemicals establishment, the bromine market in the United States was chiefly controlled by a cartel which was basically run by two great chemical manufacturers, namely Mallinckrodt Chemical Works of St. Louis and Powers and Weightman of Philadelphia (Peter, 1991,75). Albeit Herbert Dow advocated for his firm to conduct its marketing independently, this proved impossible based on the background of solid reputation of the two firms previously mentioned. Dow Process Company was formed in 1895 in Navalle, Ohio, and engaged primarily in the development of an electrolytic process to extract chlorine from brine but its operations did not entail the commercial production of chlorine. It was taken over in 1897 by the Dow Chemical Company which was established near Midland Chemical Company. In this regard, it received waste debrominated brine from Midland and extracted chlorine for bleach manufacture from it. This saw the birth of DOW Chemical Company. Since then, this firm has gone through diverse dynamics, undergoing modifications. Today, the company operates 150 manufacturing sites in 35 countries worldwide Treatment of the natural environment Majority of people are conversant with the Dow Chemical’s WRAP (Waste Reduction Always Pays) program, which is a corporate program in the environmental realm. To many participants, WRAP is a reminder to them of the diverse benefits endowed to the companies that engage in efforts to reduce the pollution that is emitted through their production processes (Kenneth, 1994, 1). This is just one of the multiple programs by the firm aimed at treating the natural environment to the benefit of both the corporate stakeholders and the larger society. Nonetheless, there is limited knowledge among many chemical producing companies that there are untapped opportunities in the reduction of waste and emissions from a plant that would be fundamental in cutting down their operation cost as well as improving the environment. The rationale of this application was evident in a case study at one of the Dow chemical plant in 1996 which revealed that certain strategies aimed at preventing pollution would save the company more than $ 1million annually(Linda and Christopher, 1997, 418). The efforts by Dow Chemical towards the treatment of natural environment are analyzed in the subsequent section. Waste water management Dow Chemicals Company has a long-term commitment of maximizing the enormous potential in reusable water in the world. This has been through extensive collaboration with industries and communities around whereby the efforts have been directed towards recovering water, nutrients, energy and other valuable components from wastewater streams. Dow water and process solutions (DW&PS) has been instrumental for decades in offering solutions for water treatment which is used in diverse application globally in the realms of wastewater management and reuse (Dow Chemicals Company, 2012, 2). At the societal level, this has a massive impact based on the fact that it is a profound action geared towards fulfilling the water needs in the societies. Reduction of greenhouse gases According to a report by the Dow plant in Canada, there is a widespread belief in Dow Chemicals Company that greenhouse gases (GHG) in the atmosphere are a cause of concern by all. Consequently, efforts should be made to reduce the level of carbon dioxide emission in the atmosphere. This will be key in protecting future economic growth and competitiveness. This can only be achieved through supporting the development of a comprehensive strategy targeting the commercial, consumer, transport and industrial sectors. Towards this end, Dow Chemicals Company plays an integral role in supporting the efforts in the society aimed at reducing the emission of CO2 into the environment through manufacturing products which are environmental friendly. This is best exemplified by products made by the company which lightens automobiles and also make buildings more efficient in terms of energy. On the other hand, the company undertakes a proactive approach in the reduction of its own GHG emissions through innovations in manufacturing and also utilizing cogeneration power plants (Dow Chemicals Company, 2012, 3). This has a great impact on the society in the sense that people are shielded from diverse ailments contributed by the emitted GHG into the atmosphere. In addition, these efforts are of fundamental importance to other environmental conservation stakeholders at the international level, for instance, UNEP (United National Environmental Program). Agricultural Science Dow AngroScience is involved in the development, manufacturing and marketing of products that are aimed in boosting crop production, protecting properties from the damage by pests and also managing insects, weeds and disease. In addition, it is also undertaking rigorous activities aimed at the discovery of radical remedies in the plant genetics and the realms of bio-technology. The latter endeavors target improved health in animals, agricultural traits, seeds and healthy oils (Dow Chemicals Company, 2008, 29). In the recent times, this initiative has had heightened impact in the development of agriculture in different countries, most notably those which primarily depend on the latter economic activity as the basic contributor to their overall GDP (Gross Domestic Product).Moreover, these agricultural solutions have increasingly increased the revenue foundation of the firm, resulting to elevated dividends to the shareholders. Energy and Hydrocarbons Most notable is Dow’s performance in regard to energy enhancement as well as limiting the negative of hydrocarbons in the environment. According to the report by Global Reporting Initiative, the business by Dow Chemicals Company in energy and hydrocarbons is leading in the production of olefins and aromatics. Therefore, it is at front in terms of efforts to capture feedstock position that is advantaged in emerging regions. It is also exploiting new, prospective energy solutions and feedstock sources. This will ensure that the company attains sustainable competitive advantage in the market. Thus, Dow is inimitably positioned and continues to provide alternative energy solutions, intensive raw materials with limited carbon components and other remedies that are yet to be invented. This has had a great influence in the efforts to address the issues of climate change and the increasing demand for alternative energy which has continued to elevate since 1990s. In this regard, the actions Dow chemicals have been aimed at exploring alternative energy sources such as wind, photovoltaics and biofuel which has greatly minimized the levels of energy consumption. This is well embedded in the Dow’s vision of overall sustainability which is reflected in the firm’s 2015 Sustainability Goals which re-emphasizes the commitment of the company to the society whereby it continues to explore diverse solutions that address energy shortage, climate change among other challenges facing the globe today (Dow Chemicals Company, 2008, 29). The aforementioned tenets among others exemplify the behavior and actions of Dow Chemicals Company towards positive treatment of the natural environment. However, this has not been without some major shortcomings which have threatened the viability of the company’s actions and their implications on the natural environment. The case against Dow Chemicals Company It is paramount to be cognizant of the fact that several criticisms have been directed to the intent of the behaviors, actions and communications of Dow and their implication on the wider society and the stakeholders. According to a report by Environmental Protection Agency, the Dow Chemicals company was ranked as the second-largest producer of toxic chemical waste in Michigan. The report showed that Dow was accountable for producing above 600 million pounds of chemical waste which was toxic in the reporting year 2010. However, Ben Morlock who is the spokesman of Dow came forward and denied these claims by citing that the company treated, recycled and reused 97% of its overall waste output through wastewater treatment plants and air pollution controls (Rebecca, 2012). Dow Chemicals Company has also been extensively criticized for violating diverse Acts most notably in Michigan. Some of the most cited Acts include Clean Air Act (CAA), Resource Conservation and Recovery Act (RCRA), Clean Water Act (CWA) among others. This resulted in the company being fined $2.5 million civil penalty to settle these alleged extensive violations in the countries of operation. In addition, actions by Dow Chemicals Company, most notably in the Dow Midland facility have resulted in overwhelming emission of hazardous air pollutants. By 1990, the congress recognized that 187 harmful air pollutants from the firm which pose considerable threat to human health. Consequently, it made an appeal to EAP (Environmental Protection Agency) to formulate and implement severe emission control conditions for these air pollutants which were emitted in a wide range of commercial and industrial facilities. The most recognized diabolical impacts of these pollutants include but not limited to known or suspected cause of cancer, among other health complications such as reproductive or health defects. The most affected demographic category in the society is the urban minority and the communities with low economic scales who are continuously exposed to these environmental perils in their daily operations (Bruce, n.d, 1). Implication to the society and stakeholder The operations of Dow Chemicals Company pose some significant impacts on both the society and the stakeholders. However, it is worth noting that these implications are two fold; positive and negative. On the positive sense, majority of the actions and the behaviors by the company are aimed at improving the livelihood of diverse societies globally. These include efforts geared towards improved agricultural science, energy source, limited effects of hydrocarbons in the environment, disposal of solid waste, recycling of waste water among other operations. These activities are bound to enhance the society in terms of improved health and elevated life expectation. In addition, it is apparent that the operations of this company offer employment opportunities to many people in diverse countries and thus playing an integral part in elevating their standards of living. To the stakeholders in different sectors, the efforts by Dow Company have been vital to advancing diverse courses around the globe. For instance, the environmental concerns by the firm have been of great support to organizations like UNEP among other environmental conservation agencies. This is through disbursement of information and communications to the entire society about the threats posed by climate change and the effects of other hazardous products to the environment. Nonetheless, the negative implication of activities undertaken by this firm cannot go unnoticed. As analyzed in the preceding discourse, Dow Chemicals Company has been engaged in some activities which continue to endanger the environment at different capacities. Most notably was its activity of discharging its waste directly into Tittabawassee River in the early 1990s. This to a large extent endangered the existence of various animal species that inhabited the river at that particular time. However, it is worth noting that despite these negative activities, most of the operations of Dow Chemicals Company have been instrumental in enhancing the lives of people around the globe. Ideal future improvements Albeit the preceding challenges pose significant challenges to the operations of Dow Chemicals Company, there are some unexploited opportunities which can be key to the success of the firm. Firstly, the company ought to make efforts to export most of its programs, for instance WRAP program to and other environmental conservations programs to the global scale, mostly to the developing world. This will be key in their popularity in the world and many people will embrace them based on the background that they will be informed and ready to spread the word to other prospective partners. Secondly, the company ought to effectively institutionalize its waste reduction efforts. This will be through changing its approach to environmental conservation from the traditional top-down model to the more contemporary bottom-up model where the initiatives emanate from the society. This will be instrumental in promoting the acceptability of the programs at the global level which will ensure their sustainability. Lastly, the company ought to formulate and implement effective and efficient policies which will ensure that the efforts towards waste management and other initiatives are adhered to in all levels of its management. This will be imperative in cultivating a common sense of purpose and improve its performance. Conclusion Dow Chemicals Company has undergone an extended evolution to where it is today. It has continued to undertake diverse actions like waste management, agriculture science and new energy solutions which have been instrumental in promoting and improving the societies all over the world. Nonetheless, the company has also been blamed for various undertakings which have endangered both the environment and the society. There is thus an urgent need for the company to implement initiatives which will curtail the negative effects of these shortcomings, both at the national and international level. Bibliography Peter Temin, Inside the Business Enterprise: Historical Perspective of the Use of Information (Chicago: University of Chicago Press, 1991), 75. Kenneth Baker, Dow Chemical Company (A): The WRAP Program (Dartmouth College: World Resources Institute,1994),1. Linda Greer and Christopher Vanloben Sels, When Pollution Prevention Meets the Bottom Line, (American Chemical Society, vol. 31, no. 9, 1997), 418. Dow Chemicals Company. “In the World’s vast Sources of Water, we see potential in every Drop,” August, 2010, , (24 March 2012). Dow Chemical Company, The Dow Canada Public Report, 2002. 2002, < http://www.dow.com/facilities/namerica/canada/ehs/index.htm>. (24 March 2012). Dow Chemicals Company, Global Reporting Initiative Report, 2007,(Midland, Michigan: UN global compact, 2008),29. Rebecca Williams, Dow Chemicals Co. ranked second-largest toxic waste producer in the Nation, Michigan radio, 12, January, 2012. Bruce Fergusson, Dow Chemical Company settlement, (Washington D.C: Special Litigation & Projects Enforcement Division), 1. Read More