IS014001 and Environmental Legal Compliance
at Samancor Chrome.
by
SUSANNA VISSER
Dissertation
Submitted in partial fulfilment of the requirements
for the masters degree
in
BUSINESS ADMINISTRATION
at the
THE UNIVERSITY OF WALES
July 2000
Declaration
Herewith I, Susanna Visser, declare that this research report in my own
unaided work. It is submitted in partial fulfilment of the requirements for the
masters degree in Business Administration at the University of Wales. It has
not been submitted before for any other degree or examination at any other
university.
Susanna Visser
This 12th day of August 2000
ii
Acknowledgements
I want to sincerely thank the following people:
Andrew Pampallis for his time, guidance and support whilst acting as my
supervisor for this dissertation.
Dries Visser for sharing his knowledge and experience with me.
Duard Barnard for triggering my interest in environmental legal compliance
enforced on organisations.
My husband, Hennie for encouraging and supporting me and my daughters
for their understanding and trust.
My father, Frans for proof reading my dissertation and my mother for her
support.
Johnny for his encouragement and proof reading of my dissertation.
My employer, Palmiet Ferrochrome for the opportunity to be involved in the
implementation of SABS ISO 14001 (1996).
My fellow members of Syndicate group C who supported and encouraged
me.
iii
Dedication
This dissertation is dedicated to my dad, Frans
Ferreira, who demonstrated to me how strong the
power of the mind can be. Through his experience I
learnt it is possible to beat all odds, if you have
enough will power and God on your side. This one is
for you Dad, just to say thank you!
iv
Table of Contents
Chapter and Title
Acknowledgements
Table of Contents
Table of Figures
Table of Tables
Acronyms
Glossary of Terms
Page No
ii
xii
xv
xvii
xviii
CHAPTER ONE 1
Introduction and Scope of Research 1
1.1 Background: 1
1.2 Aim 6
1.3 Objectives 6
1.4 Definitions 7 1.4.1 Environment 7 1.4.2 Environmental Liability 8 1.4.3 Environmental Management System (EMS) 8 1.4.4 Integrated Environmental Management System 9 1.4.5 Standards 9 1.4.6 Legislation 9 1.4.7 Environmental Management Programme 9
1.5 Value of the Research 10
1.6 Outline of the Research Report 10 1.6.1 Chapter One 10 1.6.2 Chapter Two 11 1.6.3 Chapter Three 11 1.6.4 Chapter Four 11 1.6.5 Chapter Five 12
Chapter and Title Page No
1.6.6 Chapter Six 12 1.6.7 Chapter Seven 12 1.6.8 Chapter Eight 13 1.6.9 Chapter Nine 13 1.6.10 Chapter Ten 13
CHAPTER TWO 15
Literature Review 15
2.1 Introduction 15
2.2 Literature Review 17
2.3 Research Approach and Design 18
2.4 Triangulation 19
2.5 Research Ethics 19
2.6 Sample Selection 20
2.7 Purposive sampling 21 2.7.1 Extreme case sampling 21 2.7.2 Heterogeneous or maximum variations sampling 21 2.7.3 Homogeneous sampling 22 2.7.4 Critical case sampling 22 2.7.5 Typical case sampling 22
2.8 Primary data - Questionnaires 23
2.9 Secondary data 24 2.9.1 Documentary data 24 2.9.2 Survey-based data 24 2.9.3 Multiple source data 25 2.9.4 Advantages and disadvantages of secondary data 25
2.10 Quantitative vs. Qualitative Research 25 2.10.1 Quantitative Research 26 2.10.2 Qualitative Research 27 2.10.3 The differences between quantitative and qualitative Research 31
2.11 Limitations 32
2.12 Summary: 33
vi
Chapter and Title Page No
CHAPTER THREE 34
Background and History 34
3.1 Introduction 34
3.2 Billiton 34
3.3 Samancor 35
3.4 Palmiet Ferrochrome 37
CHAPTER FOUR 40
SABS ISO 14001 (1996) 40
4.1 Introduction 40
4.2 What is meant by environment? 40
4.3 Global Environmental backlashes 42 4.3.1 Acid Rain 43 4.3.2 Pollution 43 4.3.3 The Greenhouse effect 44 4.3.4 Deforestation 44 4.3.5 Ozone Depletion 44
4.4 Why Standards? 45
4.5 What is ISO? 48 4.5.1 "Consensus 52 4.5.2 Industry-wide 52 4.5.3 Voluntary 52
4.6 What is SABS ISO 14001 (1996)? 54
4.7 What is an Environmental Management Plan (EMP)? 58
4.8 Implementation of SABS ISO 14001 (1996) 60 4.8.1 Initial review (figure 4.4) 60 4.8.2 Commitment and Policy (figure 4.4) 62 4.8.3 Planning (Figure 4.4) 63 4.8.4 Implementation and operation (figure 4.4) 65 4.8.5 Checking and corrective action (figure 4.4) 69 4.8.6 Management review 72
4.9 Continuous improvement with SABS ISO 14001 (1996) 72
4.10 General Environmental Principles 73 4.10.1 Custodianship 73
vii
Chapter and Title Page No
4.10.2 Cradle to grave principle 74 4.10.3 Due process 74 4.10.4 Eco-efficiency principle 74 4.10.5 Increased transparency 75 4.10.6 Integrated Environmental System 75 4.10.7 Internalisation of externalities 76 4.10.8 Polluter pays principle 76 4.10.9 Sustainability principle 77
4.11 Sustainable Development 77
4.12 Sustainability 78 4.12.1 Environmental Sustainability 79 4.12.2 Social Sustainability 79 4.12.3 Economic Sustainability 79
CHAPTER FIVE 80
SABS ISO 14001 (1996) and Management Decision Making 80
5.1 Introduction 80
5.2 Management decision making 80
5.3 What is environmental management? 83
5.4 Why use a system to address environmental issues? 86
5.5 Management with SABS ISO 14001 (1996) 87
CHAPTER SIX 88
SABS ISO 14001 (1996) and Environmental Legal
Compliance 88
6.1 Introduction 88
6.2 The Industrial Environmental Forum 90
6.3 Environmental Liability 91
6.4 Environmental Law in South Africa 92
6.5 Legal basis for public participation 93
6.6 Environmental Legislation 93 6.6.1 The Constitution — Act 108 of 1996
94
6.6.2 The Environment Conservation Act — Act 73 of 1989
96
viii
Chapter and Title Page No
6.6.3 White Paper on Environmental Management Policy for South Africa - Government Notice 1096 of 1998 97
6.6.4 Draft Environmental Management Bill 98 6.6.5 National Environmental Management Act — Act 107 of 1998 99
6.7 World-wide Environmental Actions 102 6.7.1 The Rio Declaration 102 6.7.2 The Basel Convention 105 6.7.3 The World Trade Organisation (WTO) 105 6.7.4 The Agreement on Trade, Development and Co-operation (1999).106
6.8 Legal review according to SABS ISO 14001 (1996) 106
CHAPTER SEVEN 109
The Need for and Benefits of an Environmental Management
System
7.1 Introduction 109
7.2 What type of environmental information do people need? 109
7.3 Survey analysis on ethical investments. 114
7.4 Benefits of an Environmental Management System 118
7.5 Benefits from an Eco-Management system 122 7.5.1 Cost Savings (wwwd, 1996) 122 7.5.2 Customer requirements (wwwd, 1996) 122 7.5.3 Corporate image (wwwd, 1996) 122 7.5.4 Legislation (wwwd, 1996) 123 7.5.5 Investment (wwwd, 1996) 123 7.5.6 Insurance (wwwd, 1996) 123 7.5.7 Marketing opportunities (wwwd, 1996) 123
7.6 Benefits linked to the implementation of SABS ISO 14001 (1996) as an integrated environmental management system 123
CHAPTER EIGHT 125
Management Response to Employee Participation 125
8.1 Introduction 125
8.2 Environmental awareness 126
ix
Chapter and Title
Page No
CHAPTER NINE
132
The Impact of Liability, Accountability, Responsibility and
Authority 132
9.1 Introduction 132
9.2 Why should roles, responsibility and authority be defined? 132
9.3 The RACI technique 135
9.4 The impact of liability 137
CHAPTER TEN 139
Research Findings 139
10.1 Introduction 139
10.2 Questionnaire analysis 140 10.2.1 Objective No 1 140 10.2.2 Objective No. 2 144 10.2.3 Objective No. 3 145 10.2.4 Objective No. 4 146 10.2.5 Is there a need for the implementation of an environmental
management system? 147 10.2.6 Advantages and disadvantages of the implementation of an
environmental management system 148 10.2.7 Objective No. 5 150 10.2.8 Objective No. 6 151 10.2.9 The Aim of the Research 154 10.2.10Question No. 7 The financial, legal and social impacts for
Billiton and Samancor 155
10.3 Environmental reporting at Samancor 157
10.4 Recommendations 159
10.5 Conclusion 160
Bibliography 162
Appendix A 1
Table of Environmental Legislation 1
Chapter and Title Page No
Appendix B 1
1S014001 Questionnaire 1
1S014001 Questionnaire Response No 1 4
1S014001 Questionnaire Response No 2 7
1S014001 Questionnaire Response No 3 12
1S014001 Questionnaire Response No 4 15
1S014001 Questionnaire Response No 5 19
1S014001 Questionnaire Response No 6 23
1S014001 Questionnaire Response No 7 26
xi
Table of Figures
Figure and Title Page No
CHAPTER ONE
Introduction and Scope of Research
Figure 1.1: The Integration of Government, Business and Society. 3
Figure 1.2: Pie chart presentation of an Integrated Strategic Business
Environment. 5
CHAPTER TWO
Literature Review
Figure 2.1: The different types of literature sources available. 18
CHAPTER THREE
Background and History
Figure 3.1: Chrome in Southern Africa. 37
Figure 3.2: Air view of Palmiet Ferrochrome. 39
CHAPTER FOUR
SABS ISO 14001 (1996)
Figure 4.1: The Socio-biophysical model. 42
Figure 4.2: Pie chart depicting the portfolio of ISO 14000 Standards by
technical sector. 53
Figure 4.3: Environmental Management system model for SABS ISO
14001 (1996) 55
Figure 4.4: SABS ISO 14001 (1996) as an environmental management
system 56
Figure 4.5: The Plan-Do-Check-Act Cycle 57
xii
Figure and Title Page No
Figure 4.6: Environmental Management Systems 59
Figure 4.7: The Four Tier Documentation System of SABS ISO 14001
(1996) 67
CHAPTER FIVE
SABS ISO 14001 (1996) and Management Decision Making
Figure 5.1: Management processes of an Environmental Manage-ment
System. 82
Figure 5.2: Dimensions of environmental management process. 85
CHAPTER SEVEN
The Need for and Benefits of an Environmental Management
System
Figure 7.1: Bar chart presentation of the importance of availability of
environmental related information. 110
Figure 7.2: Bar chart presentation on the importance of comparative
information and participation for employees. 112
Figure 7.3: Bar chart presentation of the importance of commitment to
social responsibility. 113
Figure 7.4: Bar Chart presentation of survey information 116
Figure 7.5: Bar chart presentation of positive responses 117
Figure 7.6: Benefits of the implementation of an environmental
management system. 120
CHAPTER EIGHT
Management Response to Employee Participation
Figure 8.1: Generic training and awareness model for environmental
management. 127
Figure 8.2: Elements of a training programme. 129
Figure and Title Page No
CHAPTER NINE
The Impact of Liability, Accountability, Responsibility and
Authority
Figure 9.1: The cross-functional processes of Environmental
Management Systems 135
CHAPTER TEN
Research Findings
Figure 10.1: Bar chart presentation of research findings — Most
important components of SABS ISO 14001 (1996). 143
xiv
Table of Tables
Table and Title Page No
CHAPTER FOUR
SASS ISO 14001 (1996)
Table 4.1: List of ISO Standards dealing with Environmental Issues 51
CHAPTER SEVEN
The Need for and Benefits of an Environmental Management
System
Table 7.1: Survey research analysis — Relative importance of types of
information. 111
Table 7.2: Summary of the research results. 114
Table 7.3: Summary of survey responses. 115
Table 8.1: Types of environmental training. 130
CHAPTER NINE
The Impact of Liability, Accountability, Responsibility and
Authority
Table 9.1: Typical responsibilities of the different levels in an
organisation. 134
Table 9.2: A typical RACI chart
136
CHAPTER TEN
Research Findings
Table 10.1: The link between the questionnaire and the aim and
objectives 140
xv
Table and Title Page No
Table 10.2: The most important components of SABS ISO 14001 (1996).
141
Table 10.3: Advantages associated with the implementation of SABS ISO
14001 (1996). 148
Table 10.4: Disadvantages associated with the implementation of SABS
ISO 14001 (1996). 149
Table 10.5: Environmental expenditure at Samancor during 1996 158
xvi
Acronyms
BiE Business in the Environment
CONEPP Consultative National Environmental Management
Committee
CSIR Council for Scientific Industrial Research
EIA Environmental Impact Assessment
EMP Environmental Management Plan
EMS Environmental Management System
IEF Industrial Environmental Forum
IEMS Integrated Environmental Management System
ISO International Organisation of Standards
KPI's Key Performance Indicators
NEMA National Environmental Management Act, Act 107 of
1998
NGO's Non-Governmental Organisations
OHS Act Occupational Health and Safety Act
QRCA Qualitative Research Consultants Association
RACI Responsibility, Accountability, Consultation and Inform
SABS South African Bureau of Standards
SACCQA South African Certification Committee for Quality
Auditors
SAGE Strategic Advisory Group on the Environment
SANAS South African National Accreditation System
SEMCO Samancor Environmental Management Committee
TC207 Technical Committee No 207
WCS World Conservation Strategy
WTO World Trade Organisation
xvii
Glossary of Terms
The following terms have been used in the text, most of them are specifically
related to environmental issues. The meanings of these terms as defined in
the White Paper on Environmental Management Policy for South Africa
(1998) are as follows:
Ambient Standards Define the maximum pollutant levels in water, air or
land/soil in order to ensure that these are fit to meet
user needs, and avoid unreasonable or significant
environmental impacts or health hazards.
Biodiversity Is the variability among living organisms from all
sources including terrestrial, marine and other aquatic
ecosystems and the ecological complexes of which the
are part; this includes diversity within and between all
species of a ecosystem.
Development A process for improving human well-being through a
reallocation of resources that involves modification of
the environment. It addresses the basic needs, equity
and the redistribution of wealth, and focus on the
quality of life rather than the quantity of economic
activity.
Due Process Following set or agreed procedures and processes in
environmental governance.
Ecosystem A dynamic complex of plant, animal and micro-
organism communities and their non-living
environment interacting as a fictional unit. The major
parts of an ecosystem are the producers (green plants),
the consumers (herbivores and carnivores), the
decomposers (fungi and bacteria), and the non-living
or abiotic component of dead organic matter and
xviii
nutrients in the soil and water. Ecosystem inputs
include solar energy, water, oxygen, carbon dioxide,
nitrogen and other elements and compounds. Outputs
include heat, water, oxygen, carbon dioxide, and
nutrient losses.
Environmental Is a systematic, documented, regular and objective
Audit evaluation to see how well an organisation or facility is
operating in terms of its Environmental Management
System (EMS), and its compliance with statutory
requirements and the organisation's environmental
policy.
Environmental A detailed study of the environmental consequences of
Impact Assessment a proposed course of action. An environmental
assessment or evaluation is a study of the
environmental effects of a decision, project,
undertaking or activity. It is most often used within an
Integrated Environmental Management (IEM),
planning process as a decision support tool to compare
different options.
Environmental Documented procedures drawn up as described in a
Management South African Bureau of Standards code of practice to
Systems implement the requirements of SABS ISO 14000
(1996). Operating, emergency, data collection, and
documentation procedures are set out, along with
procedures for training, the transfer of information and
all the elements of a complete management and quality
control system.
Environmental The ability of an activity to continue indefinitely, at
Sustainability current and projected levels, whilst maintaining or
substituting for social, cultural and natural resources
required to meet present and future needs.
xix
Externalities Economic activities that cause uncompensated
environmental loss or damage to others.
Globalisation Drives to create a single world market, mainly by large
corporations with global standards and economic
approaches by governments and promotes a single
global lifestyle.
Governance Setting of a policy to guide an activity and making
sure that the money, people and institutions to do the
work are in place. It also means making sure that
people are accountable for the work they do,
monitoring what happens and making new plans to
carry the work forward.
Green-house Are gasses in the earth's lower atmosphere, which
Gasses traps heat causing an increase in the earth's
temperature. These gasses include carbon dioxide,
methane, nitrous oxides and other synthetic chemicals.
Habitat The place characterised by its physical properties and
other life forms present, where an organism or a
community occurs.
Holism The term is derived from the Greek word `holos'
meaning complete, integrated. Holism is a worldview
that sees all things as interconnected and getting their
meaning mainly from their connections with other
things.
Integrated Is a code of practice ensuring that environmental
Environmental considerations are fully integrated into the
Management management of all activities in order to achieve a
desirable balance between conservation and
development.
Natural Resources Is any resource provided by the bio-physical
environment.
Sustainable
Development
Defined as development, which seeks to integrate
environmental, social and economic concerns, now
and in the future, and to keep within the carrying
capacity of the environment. The focus is on ensuring
that environmental sustainability, health and safety are
not compromised, and that natural and cultural
resource are not ended. Sustainable development must
ensure that the direction of investments, the orientation
of technolo091, f!rmqffnpflt§ ttIc institutional
mechanism work together towards Ow goal of pLe
sustainable use of environmental resources in a way
and at a rate that will meet the present and future
needs. Sustainable development requires that
particular attention be given to addressing the needs of
previously disadvantaged communities.
xxi
Chapter One Introduction and Scope of Research
1.1 Background:
"There has been an increased concern regarding environmental issues in the
international community during the last couple of decades. Whereas non-
governmental organisations have played an important role in drawing attention
to environmental impacts caused by industrial activities, governments and
international organisations have responded by promulgating increasingly
stringent legislation" (Hall, 1998:3).
As Hall emphasised in the above statement more pressure is placed on
international competing organisations to prove to the international community
that they are committed to positive environmental performance. This is
normally done through the implementation of an integrated environmental
management system, such as the South African Bureau of Standards (SABS)
ISO 14001 (1996) system, followed by third party certification.
A decision was made by the Billiton Board that all its subsidiaries would
implement an integrated, internationally accepted environmental management
system. To ensure that the same standard applies to all its operations it was
decided that all subsidiaries must implement the SABS ISO 14001 (1996)
environmental management system, coupled with third party certification.
Samancor, is a subsidiary of Billiton, who owns operations all over the world.
Thus individuals at each Samancor plant was tasked with SABS ISO 14001
(1996) implementation and certification. Five of the plants already received
SABS ISO 14001 (1996) certification and Palmiet Ferrochrome is currently in
the process of developing and implementing the SABS ISO 14001 (1996)
standard.
1
During the planning stages of SABS ISO 14001 (1996) implementation the
following questions was asked:
Why SABS ISO 14001 (1996) and not any of the other available
environmental management systems?
.=. How could the different environmental legislation's impact on the
organisation?
.> How could we ensure environmental legal compliance with the ever-
changing environmental laws?
Could SABS ISO 14001 (1996) guarantee environmental legal compliance?
In an attempt to find the answers to some of these questions, it was decided to
focus on SABS ISO 14001 (1996), as an integrated environmental management
system for the purpose of this dissertation. This would enhance the knowledge
base of the author, on SABS ISO 14001 (1996).
Through the promulgation of the Constitution, Act 108 of 1996 a totally
changed legal environment was introduced for industry in general. Not only is
it essential to know the letter of the law, but it is critical to understand the
context within which the legal provisions needs to be interpreted.
This is underscored by a recent judgement of a full bench of the Appeal Court
in which appears the following statement: "Our Constitution, by including
environmental rights as fundamental, justifiable human rights, by necessary
implication requires that environmental considerations be accorded appropriate
recognition and respect in the administrative processes in our country.
Together with the change in the ideological climate must also come a change in
our legal and administrative approach to environmental concerns" (Case no.
133/98).
The schematic presentation in figure 1.1 shows that Government, Business and
Society each plays a major role in the development of environmental
legislation, and has a responsibility towards each other to ensure environmental
2
Feedback as interested and affected parties
on implementation of legislation
Feedback as interested and affected parties
on implementation of legislation
Government (law regulations - rules the game)
TECHNIKON INITWATERSR)
LIBRARy
Society , Business
--,, (human rights) Labour (must comply -
Legislation)
•Environmental judgement -Freedom of information
performance standards are met. Government determines the rules of the game
by enforcing legislation and regulations. Business and society must comply
with the different laws. Due to the policy of "transparency" government
depends on business and society, as the interested and affected parties to
respond to legislation and provide them with feedback and possible
recommendations. Labour can be seen as the link between business and the
society. For approximately eight hours a day an individual is employed and as
such forms part of the business environment and for the rest of the day he is an
integral part of society (Barnard and Visser, 1999).
ND
Figure 1.1: The Integration of Government, Business and Society. Source: Barnard and Visser (1999).
According to Connel (1996:1) there is now a concerted global effort to assess
the immediate status of the environment, after which policies and procedures
could be developed to ensure a balance between economic development and a
3
stable, healthy environment. The ultimate goal is to ensure sustainable
development of the environment, not only in one country but globally. Success
depends upon individuals changing their way of life, and organisations learning
to manage their enterprises with clear environmental objectives, and ultimately
on governments enforcing regulations wisely.
The preamble of the National Environmental Management Act (NEMA), Act
107 of 1998 clearly states that: "everyone has the right to have the environment
protected, for the benefit of present and future generations, through reasonable
legislative and other measures that prevent pollution and ecological
degradation; promote conservation; and secure ecologically sustainable
development and use of natural resources while promoting justifiable economic
and social development." Provision is made in section 31.1.b for disclosure of
information "every person is entitled to have access to information held by the
State and organs of state which relates to the implementation of this Act and
any other law affecting the environment, and to the state of the environment
and actual and future threats to the environment, including any emissions to
water, air or soil and the production, handling, transportation, treatment,
storage and disposal of hazardous waste and substances."
According to section 29 of the National Environmental Management Act, Act
107 of 1998, the law protects employees if they refuse to do environmentally
hazardous work and employers are not allowed to discriminate against them if
they "blow the whistle." Section 29, subsection (1) states: "Notwithstanding
the provisions of any other law, no person is civilly or criminally liable or may
be dismissed, disciplined, prejudiced or harassed on account of having refused
to perform any work if the person in good faith and reasonably believed at the
time of the refusal that the performance of the work would result in an
imminent and serious threat to the environment." Subsection 4 and 5 makes it
clear that "No person may advantage or promise to advantage any person for
not exercising his or her right in terms of subsection (1). No person may
threaten to take any action contemplated by subsection (1) against a person
4
because that person has exercised or intends to exercise his or her right in terms
of subsection (1)."
Furthermore the National Environmental Management Act, Act 107 of 1998,
clearly states the duties of the employer in section 29.3.b as to "inform and
educate employees about the environmental risks of their work and the manner
in which their tasks must be performed in order to avoid causing significant
pollution or degradation of the environment."
Considering the above the challenge to any Manpower department is to
determine which response would be required to ensure legal compliance,
within good labour relations. The question is would the implementation of
SABS ISO 14001 (1996), which is an integrated environmental management
system, provide the required direction on how to manage this challenge?
Figure 1.2: Pie chart presentation of an Integrated Strategic Business Environment.
Source: Visser (a) 1999.
In figure 1.2 a pie chart is used to graphically present the different components
forming the strategic environment in which an organisation competes.
5
Complete integration of all these segments is required to achieve a competitive
edge in the global marketplace. No organisation can afford to neglect any part
of it (Visser (a), 1999)! For the purpose of this dissertation the focus would
mainly be on one segment only namely, the legal environment with emphasis
on environmental legislation.
1.2 Aim
The aim of the dissertation is to determine if the implementation of SABS ISO
14001 (1996), as an integrated environmental management system would
ensure environmental legal compliance in the Samancor group.
The different Samancor plants are not only pressurised to become SABS ISO
14001 (1996) certified by the parent company, Billiton, but also by its
customers seeing that most of Samancor's products are exported and sold on
the international market. As a result of these pressures the company is actively
engaged in a dynamic integrated environmental management plan, which deals
with all aspects of air, water, ground and solid waste pollution.
1.3 Objectives
1.3.1 To determine what SABS ISO 14001 (1996), as an integrated
management system comprise of.
1.3.2 To establish if there is a link between SABS ISO 14001 (1996) and
management decision making.
1.3.3 To determine how SABS ISO 14001 (1996) could be used to ensure
legal compliance.
1.3.4 To determine if there is a need for the implementation of an
environmental management system and if any benefit could be derived
thereof.
1.3.5 To establish how management should respond to ensure employee
involvement. (Training, disclosure, participative decision making)
6
1.3.6 To research the impact of liability, authority, accountability and
responsibility.
1.4 Definitions
1.4.1 Environment
"Surroundings in which an organisation operates, including air, water, land,
natural resources, flora, fauna, humans, and their interrelation" SABS ISO
14001 (1996:1).
According to the National Environmental Management Act Act 107 of 1998
(NEMA), "Environment means the surroundings within which humans exist
and that are made up of
the land, water and atmosphere of the earth;
micro-organisms, plant and animal life;
any part or combination of (i) and (ii) and the interrelationships among
and between them;
and the physical, chemical, aesthetic and cultural properties of the
foregoing that influence human health and well-being."
The White Paper on Environmental Management Policy for South Africa
(1998:9) defines the environment as "the biosphere in which people and
organisms live. It consists of
renewable and non-renewable natural resources such as air, water (fresh
and marine), land and all forms of life;
natural ecosystems and habitats; and
ecosystems, habitats and spatial surroundings modified or constructed
by people, including urbanised areas, agricultural and rural landscapes,
places of cultural significance and the qualities that contribute to their
value.
7
People are part of the environment and are the centre of concern for its
sustainability. Culture, economic considerations, social systems, politics and
value systems determine the:
interaction between people and natural ecosystems and habitats;
use of natural resources; and
values and meanings that people attach to life forms, ecological
systems, physical and cultural landscapes and places."
The environment is defined "as the sum of the surrounding elements,
influences and situations, which affect the life, and habitats of individual
organisms, and a collection of organisms" Environmental Conservation Act,
Act No 73 of 1989.
Lastly the guideline document for strategic environmental assessment in South
Africa (CSIR, 1999:ii) defines the environment as "the external circumstances,
conditions and objects that affect the existence and development of an
individual, organism or group. These circumstances include biophysical,
social, economic, historical, cultural and political aspects."
1.4.2 Environmental Liability
According to De Villiers and Visser (2000:14) environmental liability is "A
legal obligation to make a future expenditure due to the past or ongoing
manufacture, use, release or threatened release of a particular substance, or
other activities that adversely affect the environment."
1.4.3 Environmental Management System (EMS)
"The part of the overall management system that includes organisational
structure, planning activities, responsibilities, practices, procedures, processes,
and resources for developing, implementing, achieving, reviewing, and
maintaining the environmental policy" SABS ISO 14001 (1996:2).
8
1.4.4 Integrated Environmental Management System
The guideline document for strategic environmental assessment in South
Africa (CSIR, 1999:iii) describes it as "a philosophy, which prescribes a code
of practice for ensuring that environmental considerations are fully integrated
into all stages of the development process in order to achieve a desirable
balance between conservation and development."
1.4.5 Standards
Was defined during the 29 th World Standards Day in 1998 to "provide the end-
user with a criterion for judgement, a measurement of quality, and a certain
guarantee of compatibility and interoperability" (Cornish, 1997:2).
International standards encourage an improved quality of life by contributing to
safety, human health, and the protection of the environment.
1.4.6 Legislation
Legislation could be seen, as a "prescriptive method of control, entailing set
levels of performance" (Thorne, 1996:2).
According to Barnard and Visser (1999:8) "legislation is a collection of
detailed, legally binding principles, processes and management structures
which originated where weaknesses or relative simplicity of the elementary
common law indicated a need for more sophistication."
1.4.7 Environmental Management Programme
The purpose of an Environmental Management Programme is to ensure that, in
implementing a new development, negative environmental impacts are
managed and monitored, that positive impacts are maximised and affected
areas are rehabilitated.
9
1.5 Value of the Research
Being an employee at one of the Samancor Plants tasked with the responsibility
of implementing an environmental management programme and obtaining
SABS ISO 14001 (1996) certification the question of environmental legal
compliance is one of major concern. Through this study an attempt would be
made to determine if the implementation of SABS ISO 14001 (1996) could be
used as a guarantee for legal compliance or if it might only be a misconception
that SABS ISO 14001 (1996) certification ensures sound environmental
principles in all endeavours of the organisation. The dissertation could be used
as a basis for discussions between the parent company Billiton and Samancor
to determine if SABS ISO 14001 (1996) certification is the best route to follow
for all Samancor plants.
1.6 Outline of the Research Report
Organisations having to accept responsibility for the impact of their actions on
the environment are a fairly new concept in South Africa. Environmental
legislation is changing continuously and new legislation promulgated.
Therefore it would be futile to attempt this research study without continuous
literature review. A literature review had to be done on each one of the
objectives therefore they are addressed in different chapters. The topics
discussed in each chapter are as follows:
1.6.1 Chapter One
This chapter examines the background to the research question. The parent
company, Billiton, demanded that all of its subsidiaries will implement SABS
ISO 14001 (1996), as an integrated environmental management system, and
obtain third party certification. The challenge is to determine if the
implementation of this integrated environmental management system would
guarantee environmental legal compliance. The question is: would the
implementation of SABS ISO 14001 (1996) as an integrated environmental
10
management system benefit the Samancor Plants? Defmitions of some
concepts are provided and the scope of the dissertation is determined, regarding
the aim and objectives.
1.6.2 Chapter Two
This section examines the different research methodologies and place emphasis
on the research process. The different steps that should be followed when
doing research are discussed. The difference between quantitative and
qualitative research methods is studied to allow for the determination of which
research method would ensure the most accurate results. After studying the
advantages and disadvantages of the different methods a decision was made to
use qualitative research. The different types of literature sources available are
discussed seeing that a combination of literature sources was used in doing the
research.
1.6.3 Chapter Three
This chapter provides the reader with background information on the parent
company, Billiton and the subsidiary, Samancor. It also takes a broad look at
Palmiet Ferrochrome, as this is where the development and implementation of
SABS ISO 14001 (1996) is currently in progress.
1.6.4 Chapter Four
An overview of what is meant by 'environment' is done and some
environmental backlashes are discussed. The first objective is addressed
through this chapter. The purpose of this objective is to determine what SABS
ISO 14001 (1996), as an integrated environmental management system consists
of. The background to the International Organisation of Standards is discussed
with emphasis on the development of the series of environmental standards and
guidelines. SABS ISO 14001 (1996) is only one of these standards. Each step
11
in the implementation process of SABS ISO 14001 (1996) is discussed and a
brief description of general environmental principles are provided.
1.6.5 Chapter Five
The second objective was to determine if a possible link between management
decision making and SABS ISO 14001 (1996) is evident. In chapter five an
attempt is made to determine what management decision making consists of
and what is meant with environmental management. The system approach to
environmental management is scrutinised and environmental management by
using SABS ISO 14001 (1996) is discussed.
1.6.6 Chapter Six
Due to the ever-changing nature of environmental legislation it is difficult for
organisations to ensure that their actions are always within the law. Therefore
it is essential to ensure that a system is in place, whereby an organisation
would be informed of new laws and changes in existing legislation.
The third objective was to determine how SABS ISO 14001 (1996) could be
used to ensure environmental legal compliance in Samancor. Chapter six looks
at environmental law in South Africa and organisations' environmental
liability. Some of the laws, which might have a substantial impact on an
organisation, are discussed in more detail.
1.6.7 Chapter Seven
In this chapter, the fourth objective is addressed by doing a literature study to
determine if there is a need for the implementation of an environmental
management system and if any benefits could be derived from it. An analysis
of a survey done by the De Villiers and Visser (2000) forms the basis of this
chapter.
12
1.6.8 Chapter Eight
Seeing that the National Environmental Management Act, Act 107 of 1998
makes provision for transparency and participation of all interested and
affected parties it is essential to ensure that the knowledge needed by
individuals is provided. The fifth objective was to determine how management
should respond to ensure employee involvement. It focuses on environmental
awareness and training.
1.6.9 Chapter Nine
In this chapter, the sixth objective is addressed, looking at the impact of
liability, authority, accountability and responsibility. The reasons why roles
and responsibilities should be defined and the RACI technique, of assigning
Responsibility, Accountability, whom to Consult and who to Inform are
discussed.
1.6.10Chapter Ten
The findings on the questionnaire send to respondents are analysed and
conclusions made in this chapter. A brief overview of Samancor's
involvement in environmental management since 1996 is provided.
Management recommendations will be provided.
13
Chapter Two
Literature Review
2.1 Introduction
According to the Collins English dictionary (1986:724) research is a
"systematic investigation to establish facts or collect information on a subject."
The emphasis lies with the word systematic, which could be translated as,
following a logical approach to find out things about the research topic.
Saunders et al., (1997:2) suggested that not only should "business and
management research provides findings, which advance knowledge, it also
needs to provide a procedure for solving managerial problems and addressing
business issues." All business and management research projects can be
classified according to their purpose and context into Academic Research or
Applied Research.
According to Saunders et al., (1997:3) the purpose of Academic Research is to
expand an individual's knowledge related to business processes and
management. Academic research should result in universal principles relating
to the process and its relationship to outcomes, and provide findings of
significance and value to society in general.
On the other hand Saunders et al., (1997:3) suggests that the purpose of applied
research are to improve the understanding of a particular business or
management problem, with emphasis on fmding a solution to the problem,
whilst obtaining new knowledge related to the problem. This would result in
fmding a solution of practical relevance and value to the managers in an
organisation.
14
The logic underlying research is that for each theory tested, the researcher must
determine a basic statement of acceptance or the study would progress into
infinitely. According to Shank (1996:4) "logic could be seen as the first step in
research, and different research methods use different logical methods". Van
Dijk (1995:1) once said, "research methodology is influenced by the
paradigmatic approach behind it".
A paradigm could be seen as an implicit, unvoiced and pervasive commitment
to a conceptual framework. As such research could be seen as a specific way
of observing and perceiving through the use of different research methods.
Research provides the tool to make sense out of what we observe. Meyers
(2000:1) suggested that a "paradigm provides philosophical, theoretical,
instrumental, and methodological foundations for conducting research and, in
addition, provide researchers with a platform to interpret the world."
According to her the "qualitative paradigm aims to understand the social world
from the viewpoint of respondents, through detailed descriptions of their
cognitive and symbolic actions."
Shanks (1996:4) listed the main difference between qualitative and quantitative
research as the fact that their methodologies are derived from different logical
procedures. According to Shanks (1996) quantitative research tends to focus
on discerning the probability of truth claims, using numbers as data to describe
events or establish relationships between events. While qualitative research
attempts to discover plausible meaning claims, by using words as data to
describe human experience or behaviour. The purpose of this chapter is to
discuss the research process, focussing on qualitative and quantitative methods
while studying their strengths and weaknesses. The qualitative method,
selected for this study will be discussed in detail and emphasis placed on the
protocol used for analysing the research findings.
In deciding on a research topic it became apparent that it would be better to
choose a topic, of interest and where a certain amount of knowledge and
15
experience are already available. Being newly employed in the environmental
field it would be advantageous to select a topic, which could enhance and
develop the knowledge base. For the purpose of this dissertation it was
decided to make use of a triangulation process combining qualitative research
methods with literature review. The sample population was purposively
selected and open-ended questions used in the questionnaires.
2.2 Literature Review
Before writing the research proposal environmental related literature was
reviewed. This enabled the generation and refinement of the research aim and
objectives and forms the basis of the literature discussed from chapter four
onwards.
According to Saunders et al., (1997:39) a critical literature review has a
number of different purposes such as:
The refinement of the research questions and objectives.
To highlight additional research possibilities, overlooked in the past.
To discover recommendations for future research and justification with the
current research questions and objectives.
To avoid repetition.
To determine current opinions in journals and newspapers, gaining insight
into the different aspects of the research questions and objectives.
To discover research methodologies and strategies that might be
appropriate to the current research objectives.
A critical review provides readers with background knowledge to the aim of
the research project and the objectives. Literature sources can be divided into
three main categories namely primary, secondary and tertiary sources. In
reality these categories often overlaps. As displayed in figure 2.1 primary
sources are reports, some central and local government publications, theses,
market research reports and unpublished manuscript sources. Secondary
16
T wriV,1r
Reports Theses
Conference reports
Market research imports
Some government publications Unpublished manuscript
sources
Newspapers
Books
Journals
Some government publications
Indexes
Abstracts -
Catalogues
Encydopeaas
Dictionaries
Bibliographies
Citation indexes
literature could be seen as books, journals and newspapers, whereas tertiary
sources are used as research tools and is things like indexes, abstracts,
catalogues and dictionaries.
Figure 2.1: The different types of literature sources available. Source: Saunders et al., (1997:43).
For the purpose of this study a combination of all three categories was used,
with the main focus on government publications, books and conference reports.
The Internet, which is classified as a secondary source, was used to obtain
additional information and visit the International Organisation of Standards
Head Office (wwwa, 2000). The Internet can provide a vast range of
information but it is essential to remember to test all information for validity
and reliability.
2.3 Research Approach and Design
The research approach being used provides the opportunity to take an informed
decision related to the research design. It enables a holistic approach to the
research covering the methods for data collection and analysis. Knowledge of
the different research methods allows for the elimination of methods not
applicable to the study being done and provides for the adaptation of methods
17
to ensure that all constraints are catered for. According to Bloland (1992:1) a
distinction can be made between two approaches to research design namely
Positivism and Phenomenology. The Positivism approach can be seen as
scientific research, whilst Phenomenology deals with the way people
experience social phenomena in the world in which they live (Saunders et al.,
1997:71-73).
It is essential to remember that research methods do not exist in isolation, the
researcher needs to adapt and even combine different methods to ensure that
the research findings are valid and reliable. As such it is applicable to make
use of a multi-method approach where not only quantitative and qualitative
methods are used but also primary and secondary data. The use of a multi-
method approach enables the researcher to follow a process of triangulation.
2.4 Triangulation
Saunders et al., (1997:80) said "triangulation refers to the use of different data
collection methods within one study in order to ensure that the data is telling
you what you think it is telling you." It is important to remember that the
results of the research will be affected by the method used. Triangulation
sources data from quantitative and qualitative research. In a sense it can be
seen as the convergence of the two types of data determining which parts of the
data fits together. Data triangulation requires the cross-checking of data from
different sources. For the purpose of this study the different documented ISO
14000 standards, environmental laws and questionnaires were used.
2.5 Research Ethics
Ethics can be seen as "the study of moral values of human conduct and the
conduct of the rules and principles that ought to govern it" Collins (1986:289).
From this a deduction can be made that ethics deals with the behaviour of the
researcher in relation to the rights of the respondents or individuals being
affected by the research. According to Saunders et al., (1997:109) one needs to
18
consider ethical issues throughout the research study and remain sensitive to
the impact the research might have on those involved in the study.
This study is organisation specific and involves individuals at a specific
management level dealing with socially sensitive information, as such it was
important to obtain permission for using the information from the organisation.
At the same time individual's rights to confidentiality must be respected and
they were all asked to specify if they want their identity to be kept confidential.
No names appear with the completed questionnaires in Appendix B and no
mention to specific plants or sections are made to ensure confidentiality.
2.6 Sample Selection
Before any form of research can be done it is essential to clearly define who
the population would be. After identifying the population the researcher can
select from a wide range of sampling techniques to determine who the
respondents should be. Saunders et al., (1997:125-139) stated that the
sampling process could be divided into different steps such as:
The identification of a suitable sampling frame based on the aim of the
research and the research objectives.
Deciding on a suitable sample size aiming at a high response rate to ensure
validity and reliability of research findings.
Selecting the most appropriate sampling technique.
Ensure that the sample collected is representative of the population.
Sampling techniques can be divided into two broad categories namely
probability sampling and non-probability sampling. Selecting the most
appropriate sampling technique is of the utmost importance. According to
Saunders et al., (1997:142) "there are no rules", it depends on the type of
information required by the researcher. For the purpose of this survey non-
probability sampling was used. Non-probability sampling can be sub-divided
19
into quota, purposive, snowball, self-selection and convenience sampling. In
this instance purposive sampling was used (Saunders at al., 1997:143).
2.7 Purposive sampling
According to Saunders et al., (1997:145) "Purposive or judgmental sampling
enables you to use your judgement to select cases which will best enable you to
answer your research question(s) and meet your objectives." It is often used
when working with very small samples as in the case of this research study.
There are a limited amount of Samancor plants with mostly one experienced
individual being involved in the implementation of SABS ISO 14001 (1996)
and as such would have the knowledge and experience required to provide
informed answers to the questions in the questionnaire. Therefore the sample
population was limited to ten possibilities from which seven responded. It is
essential to remember that small samples can not be used to generalise findings
to the total population.
According to Saunders et al., (1997:145) purposive sampling can . be divided
into sub-sections namely; extreme case, heterogeneous or maximum variations,
homogeneous, critical case and typical case sampling.
2.7.1 Extreme case sampling
Should be used in unusual or special cases with the understanding that the
outcomes will enable the researcher to learn the most and it will provide
relevant answers to the research questions whilst meeting the research
objectives (Saunders et al., 1997:145).
2.7.2 Heterogeneous or maximum variations sampling
This method enables the collection of data to be used for describing and
explaining key themes observed during the research. It is essential to
20
determine if any patterns or trends emerge which could be used to document
the uniqueness of the study (Saunders et al., 1997:146).
2.7.3 Homogeneous sampling
Homogeneous sampling focus on one particular sub-group where all the
samples share a commonality, allowing for in-depth studying of the group
(Saunders et al., 1997:145). Considering the importance of obtaining
respondents with relevant knowledge of the elements in the SABS ISO 14001
(1996) standard and experience on environmental matters this sampling
technique would be the most applicable to this research study.
2.7.4 Critical case sampling
Only critical cases are selected on the grounds that they can dramatise a point
or due to their importance. The focus is to understand what is happening in
each case to enable generalisation (Saunders et al., 1997:145).
2.7.5 Typical case sampling
Typical case sampling is used to provide an illustrative profile using a
representative case. It allows for the illustration of what is typical but not
definitive. Typical case sampling could be used to provide background to
readers (Saunders et al., 1997:145).
For the purpose of this study extreme case sampling was used to ensure that at
the end of the research study an enhanced knowledge base would exist and to
ensure that the answers obtained to the research questions are valid and
reliable.
21
2.8 Primary data - Questionnaires
The focus will be on the collecting of primary data via questionnaires. Collins
(1986:682) defines a questionnaire as "a set of questions on a form, submitted
to a number of people in order to collect statistical information." Various other
definitions exist, some see it as a survey where the person answering the
question records their own answers, and others include telephone and face to
face interview.
Saunders et al., (1997:243) includes all techniques of data collection in which a
respondent is asked to answer a predetermined list of questions.
Questionnaires could be seen as one of the most widely used data collection
methods. According to Saunders et al., (1997:244) it is essential to "ensure
that it will collect the precise data you require to answer your research
question(s) and achieve your objectives."
Questionnaires can be divided into different types, such as; self-administered
and interviewer-administered (Saunders et al., 1997:245). Self-administered
questionnaires are normally completed by the respondent and could be posted
or delivered and collected. Interviewer administered questionnaires are
completed by the interviewer on the basis of the respondent's answers, and
could be done via a telephone questionnaire or a structured interview. Due to
the geographies involved in assimilating the information required for this study
the questionnaire was sent to a sample of the population via electronic mail and
the respondents typed in their answer and send it back.
A variety of factors should be considered when drawing up your questionnaire.
According to Saunders et al., (1997:246) some of these factorS are:
.=' The importance of reaching a specific person.
The size of the sample required for the analysis, considering the likely
response rate.
22
The amount of questions needed to be asked to ensure the correct data is
collected.
The type of questions that must be asked to obtain the relevant information.
The characteristics of the respondent needed to collect the data from.
2.9 Secondary data
Secondary data could be used as a useful source to answer research questions
and include raw and published summaries. The Internet is a typical example of
fmding a vast amount of secondary data, allowing for national and international
comparisons.
Saunders et al., (1997:159) states that secondary data can include quantitative
and qualitative data, which could be used in explanatory and descriptive
research. Three main groups of secondary data exists, namely documentary
data, survey-based data and multiple source data (Saunders et al., 1997:160).
2.9.1 Documentary data
Includes written documents such as notices, correspondence, minutes of
meetings, shareholders reports, diaries, transcripts of speeches, books, journals,
magazine articles and newspapers.
This type of data could be analysed quantitatively and qualitatively.
Additionally the data could be used to triangulate research fmdings based on
other written data and primary data collected through interviews or
questionnaires, but could include non-written documents, such as tapes and
videos (Saunders et al., 1997:160).
2.9.2 Survey-based data
Survey based data normally deals with data collected by questionnaires and
according to Saunders et al., (1997:161) "which have already been analysed for
23
their original purpose." The data is made available as compiled tables for
secondary analysis. In chapter seven, survey analyses done by De Villiers and
Visser (2000) are used. Using the data from these surveys provided critical
information to enhance the conclusions made related to the research objectives.
2.9.3 Multiple source data
Could be based on documentary or survey data or a combination of the two.
The key factor is that the different data sets have been combined to form a new
and different data set to be used for analysis (Saunders et al., 1997:164).
2.9.4 Advantages and disadvantages of secondary data
According to Saunders et al., (1997) some of the advantages of secondary data
are that it is feasible to be used for longitudinal studies requiring fewer
resources. It could provide comparative and contextual data and result in
unforeseen discoveries being made.
On the negative side Saunders et al., (1997) reminds the researcher that the
data may have been collected for a specific purpose and might not meet the
needs of the current research. The aggregations and definitions might be
unsuitable and the initial purpose for collecting the data might affect how the
data was presented.
From this it is clear that even though it requires fewer resources the purpose for
which the data was initially collected could be different to the current study
and therefore might yield different results than intended.
2.10 Quantitative vs. Qualitative Research
Even though a difference exist between qualitative and quantitative research it
is sometimes difficult to distinguish between the two. According to Foley
(1999), this distinction is based on philosophical grounds — quantitative
24
methods are associated with empirical, positivist research — often said to be
inappropriate in relation to social research, qualitative research on the other
hand is associated with anti-positive philosophies, such as interpretivism,
ethnography and phenomenology.
Quantitative methods are oriented around a consciously selected subset of
variables ignoring other variables that might have an impact on the research
results. In contrast to this qualitative methods encompass specific contextual
knowledge to the full extent, and aim at generating theories from contextual
information (Foley, 199:1).
According to Babbie (1983:537) qualitative analysis could be defined as "the
non-numerical examination and interpretation of observations for the purpose
of discovering underlying meanings and patterns of relationships." He defines
quantitative research as "the numerical representation and manipulation of
observations for the purpose of describing and explaining the phenomena that
those observations reflects." Meyers (2000:2) criticise the value of qualitative
research, due to its reliability on small samples which according to her is
"believed to render it incapable of generalising conclusions." Tellez (2000:1)
suggest that quantitative researchers may "argue that numbers get us closer to
the truth than qualitative inquiry."
2.10.1Quantitative Research
Quantitative research depends on standardised questions to allow
generalisation, which means that answers are of necessity limited to pre-
determined categories. Normally information related to individual
circumstances is disregarded. According to Foley (1999:1-2) quantitative
research is objective and could be classified as a hard science. It is essential
that the literature review must be done in the early stages of the study.
Quantitative research tends to have a narrow and concise focus on normally
one reality and is used to test theory. It lends itself for precision and is
measurable, with a mechanistic approach suggesting that the sum of the parts
25
equal the whole. According to (wwwe, 1999:1) the measurement of
quantitative research must be objective, quantitative and statistically valid.
Foley (1999:1-2) states that quantitative research emphasises strategic matters
since it involves the explicit testing of hypotheses. It is used to report
statistical analysis and the basic element of the analysis is numbers. Reasoning
is logistic, deductive and normally deals with hypotheses. The main aim of
this type of research is to enable generalisation. The design could be
experimental, quasi-experimental, descriptive or correlational. The sample size
could vary between thirty to five hundred and even more, depending on the
population.
Quantitative methods attempt to find causes and relationships demonstrated
statistically, following a theoretical perspective. It employs deductive logic,
moving from the general to the specific or from theory to experience (Blo land,
1992:1).
2.10.2 Qualitative Research
According to Moser (1998:1) "the previously underestimated qualitative
research has become to a greater and greater degree a serious competitor to the
traditional analytical empiricism." The notion of "qualitative research"
conjures up a variety of responses. According to Grant (1999:1) some people
focus on the assumptions behind the method, including the value of
understanding behaviour of participants, and the importance of the context
within, which the research is done. Others focus on the methods being used,
such as interviews, participant and non-participant observations and document
analysis. A third group concentrates on the forms of qualitative research
available, like case studies, life history, ethnography and ethnomethodology.
During recent years, qualitative research gained in popularity due to the fact
that it collects qualitative data within naturalistic settings and can therefore
provide in depth information. According to Foley (1999:1-2) qualitative
26
methods rely on the written or spoken word or the observable behaviour of the
person being studied as the principal source of analysis. According to Bloland
(1992:1) the purpose of such research is to obtain a greater understanding of
the world as seen from the unique viewpoint of the individual being studied.
Qualitative researchers tend to believe in multiple realities instead of one
objective truth.
Multiple realities can be accessed through open-ended question interviews,
observations and written documents. Bloland (1992:1) implies that qualitative
research takes cognisance of and reflects upon the communicative aspect of
research. According to Guidestar Communications (wwwe, 1999:2) "the
nature of qualitative research is exploratory and open-ended."
Qualitative research entails a systematic, well-planned process, in order to be
able to analyse the collected data and draw verifiable conclusions from them.
Saunders et al., (1997:339) quotes Dey (1993:28) as saying that "the more
ambiguous and elastic our concepts, the less possible it is to quantify data in a
meaningful way" therefore qualitative research is required.
This type of research allows for the researcher to explore his research topic as
it exists in reality, to seek understanding through inductive analysis, moving
from specific observation to the more general (Bloland, 1992:2). Ensuring that
results are not just an impressionistic view of its meaning, a conceptual
framework must be created for the interpretation of qualitative data.
Qualitative methods lend themselves to discovering meanings and patterns.
Meyers (2000:2) suggested that the main aim of qualitative research is to
produce research that can "inform and enhance reader's understanding." She
states that the mission of qualitative research is "to discover meaning and
understanding, rather than to verify truth or predict outcomes."
27
According to Bloland (1992:2) qualitative research is tactical and the strategic
decisions required are usually very basic and could be addressed by answering
the following questions:
What does it mean to be in this setting?
Which people do need to be interviewed?
.* Which are the issues that must be covered?
What questions should be asked to the respondents?
What should be done, if the results obtained differ from the expectations?
The research method chosen to study a problem should be compatible with the
questions being asked, it should service the kind of knowledge being sought.
Qualitative research operates on realistic principles, researchers tend to operate
on the assumption that reality is governed by simple processes and that the
proper strategy of inquiry would be to get beneath the surface to fmd the
simple core of reality. Bloland suggested (1992:2) that when analysing
something complex it is vital to break it down into simpler components that
would enhance the discovery of reality. Any research method should open up
new perceptions, insights and directions of inquiry. Qualitative research
should not be used to test the veracity of a theory via a design process (wwwc,
1996). Instead it could be used to focus on observations as evidence of
ongoing processes and relations, by discovering new insights. Therefore it is
safe to say that qualitative research is following a holistic approach, with the
added benefit of "discovering underlying motivations, feelings, values,
attitudes and perceptions" (wwwc, 1996).
The analysis of qualitative data can be done, by making use of the following
steps (Saunders et al., 1997:340-348):
Categorising the data into groups or units.
Recognising the relationships between the different concepts.
.=%. Developing and testing hypotheses to reach conclusions.
28
Mason and Lind (1996:344) define a hypothesis as "A statement about the
value of a population parameter developed for the purpose of testing."
According to Wegner (1998:215-222) there is a standard five-step procedure
that must be followed during hypothesis testing.
These steps are:
,=. "Stepl: Formulating the hypothesis — the Null and Alternative hypothesis.
Step 2: Determine the area of acceptance.
Step 3: Compute the corresponding sample statistic.
Step 4: Compare the sample statistic to the area of acceptance.
Step 5: Draw conclusions.
When collecting qualitative data, analysis must be done during and after the
collection. These analyses enable the researcher to determine the direction of
the research and allow for relative flexibility, the recognition of themes,
patterns or relationships.
Different types of qualitative research exist namely:
4. Interviews — structured, semi-structured, informal and retrospective.
4, Participant observation — observer may or may not disclose his identity to
other participants.
4, Naturalistic observation — observe behaviours in their natural settings.
4. Case studies — in depth study of specific phenomena.
44 Simulations — fixed situations, directive is given and behaviour observed.
4, Ethnographic research — intensive on-going participant observation.
According to Foley (1999:1-2) qualitative data is normally subjective and
could be seen as "soft" science. The literature review could be done as the
study progresses. Qualitative research is used to develop a theory and deals
with multiple realities; it is organismic and reasons that the whole is greater
than the sum of the parts. The basic elements of this type of research are words
and ideas based on research questions, reasoning and describing meanings.
29
The sample size is not a concern, seeing that the researcher must ensure that
the population is "information rich".
Some of the most common uses for qualitative research as listed by the
Professionalism Committee of the Qualitative Research Consultants
Association (QRCA) in 1996 are (wwwc, 1996):
4:. "Investigating current product service / brand positioning.
4> Identification of strengths and weaknesses.
,4 Exploring alternative communication messages.
.4, Comprehending purchase decision dynamics.
.4 Brainstorming or idea generation.
4> Evaluating advertising or public relations campaigns.
4: Probing perceptions of current societal or public affairs issues.
Pre-survey, developing hypotheses to be quantified in a follow-up survey.
4, Post-survey, in-depth exploration of quantitative findings".
2.10.3The differences between quantitative and qualitative Research
Quantitative research is based on meanings derived from numbers, collecting
results in numerical and standardised data. On the other hand qualitative
research is based on meanings expressed through words, collecting results in
non-standardised data requiring the classification into categories (Saunders et
al., 1997:339).
For quantitative research analysis are conducted through the use of diagrams
and statistics, requiring a deductive hypothesis and precise definitions of
operational priorities. Qualitative research makes use of conceptualisation
resulting in inductive emergent hypothesis and emergent contextual variable
definitions (Saunders et al., 1997:339).
30
Quantitative research requires statistical methods to ensure validity. Random
samples are normally preferred, while the research plan is broken into specific
steps. Qualitative research could use triangulation of source data to determine
validity. Purposive samples are preferred and only a narrative description of
emergent procedures is required (Saunders et al., 1997:339).
In the case of using quantitative research control of extraneous variables must
be built into the design. It is essential to control procedural bias as part of the
design and conclude with a statistical summary of the results. Individual
elements of the research situation must be analysed. For qualitative research it
is essential to control extraneous variables during the analysis stage. The
researcher must control bias during the process and a narrative summary of
results is required. Qualitative research provides for a holistic analysis of the
research situation (Saunders et al., 1997:339).
2.11 Limitations
The limitations of qualitative research is that the findings are not statistically
projectable to the population under study (wwwc, 1996). Additional
limitations for the purpose of this study lies in the fact that Samancor Chrome
plants are geographically spread from Palmiet Ferrochrome in Krugersdorp, to
Tubatse Ferrochrome in Steelpoort.
The distance between the different plants place limitations on the degree to
which personal interviews can be done for the purpose of gathering
information for this dissertation. An attempt will be made to gather the
required information by means of electronic mail and telephone. In addition to
this the amount of people involved in the environment is very limited, thus
reducing the population substantially.
31
"
2.12 Summary
Evidently a lot of research was done during the literature review in chapter
two, the reason for this is to ensure that the method used is the most applicable
to this study. After doing the review it was concluded that a qualitative
approach should be followed. A triangulation process, combining the
qualitative research method with literature reviews and questionnaires seemed
to be the most appropriate.
Each objective was discussed by making use of literature and questionnaires
with essay type answers. The critical literature review provided background
knowledge and ensured that personal work experience could be substantiated.
Different environmental laws, the SABS ISO 14001 (1996) standard and other
environmental standards as well as guidelines were used.
Seeing that the population is limited to the number of Samancor Plants the
purposive sampling technique were used to ensure that respondents would have
the required knowledge and experience to enable them to answer the
questionnaire. This resulted in a homogeneous group, sharing as a
commonality; the fact that they are all involved with the implementation and
development of the SABS ISO 14001 (1996) environmental management
system, at their specific plants.
Secondary data, in the form of a survey done by De Villiers and Visser (2000),
was used in chapter seven to substantiate if any benefits could be derived from
the implementation of SABS ISO 14001 (1996).
32
Chapter Three
Background and History
3.1 Introduction
The aim of this dissertation is to determine if the implementation of the South
African Bureau of Standards, standard SABS ISO 14001 (1996) of 1996 as an
integrated environmental management system would ensure compliance with
environmental legislation at Samancor.
For the benefit of the reader it is important to provide some background
information on the organisation seeing that the focus is on Samancor.
Samancor forms part of Billiton and for that reason, information on Billiton
and Samancor will be provided. The Krugersdorp Ferrochrome plant, Palmiet
Ferrochrome, is currently involved in the implementation of SABS ISO 14001
(1996), and therefore information on Palmiet will be included.
3.2 Billiton
Billiton and Anglo American Corporation are the major stakeholders of
Samancor. While recognising the complexities of a business operating in
different environments across the globe, Billiton aspires to be regarded as a
good 'corporate citizen' wherever it conducts business. As such Billiton is
committed to the core values of civic society. Gilbertson (1999:2) Billiton's
chairman stated that "Billiton contributes through its business activities to the
sustainable development of society by striving to meet equitably the
developmental and environmental needs of both present and future generations.
Billiton will comply with all laws and regulations in each country where it
operates, and will apply the standards reflecting Billiton's aspiration to best
international practice."
33
Billiton is a leading United Kingdom based, natural resources company, with a
world class portfolio of mining and metals assets. It is listed on the London
stock exchange with secondary listings on the Paris and Johannesburg
Exchanges and forms part of the FTSE 100 index. The group comprises of
eight divisions namely; Aluminium, Titanium minerals, Steel and Ferroalloys,
Nickel, Coal, Base metals and Billiton marketing and trading. It is of major
importance that all its subsidiaries demonstrate its commitment to
environmentally safe practices. The best way to demonstrate this, according to
Billiton is, for all subsidiaries to be certified as SABS ISO 14001 (1996)
companies.
Being part of the FTSE 100 listed companies Billiton participates in the United
Kingdom based Business in the Environment (BiE) Index of Corporate
Environmental Engagement and Performance. Billiton's BiE Index
performance rating is considered to be one of the group's most important
measures of environmental management performance. The environmental
performance of all of the subsidiaries is considered when determining
Billiton's position.
3.3 Samancor
With an annual production capacity of more than one million tons, Samancor is
the single largest producer of ferrochrome in the world as stated in the
Samancor Annual Report (1998:1). Samancor not only produces ferrochrome
but also manganese based alloys.
The ferrochrome plants are situated at Steelpoort, Middelburg, Witbank and
Krugersdorp as seen on the map in figure 3.1. These plants source their raw
materials from Samancor's chrome mines, which are situated in Mpumalanga,
Northwest and Northern Provinces, almost in a saucer shaped deposit
(Samancor Annual Report, 1996:1). Approximately eighty percent of the
world's economically mineable ore reserves are located here and Samancor
controls more than seventy percent of this reserves (Palmiet Ferrochrome -
34
Customer Introduction Brochure, 1997). The group's chrome mines have a
combined production capacity of approximately three hundred thousand tons of
saleable ore per month, some of which is exported directly (Palmiet
Ferrochrome - Customer Introduction Brochure, 1997).
The manganese plants, which are situated in Meyerton, Nelspruit and
Krugersdorp source their raw materials from the manganese mines in Hotazel.
Samancor has for many years been a major supplier of ferrochrome to the
stainless steel industry of the world. Through its one-third partnership in
Columbus Stainless, (a joint venture with Highveld Steel and Vanadium and
the Industrial Development Corporation of South Africa), Samancor has
become one of the leading international producers (Hocking, 1992:15). When
fully operational Columbus will have a production capacity in excess of five
hundred thousand tons of stainless steel per annum (Samancor Annual Report,
1996:15).
The map, in figure 3.1 (Hocking 1992:15) shows regions where chrome
deposits can be found as well as the areas where ferrochrome is produced. In
laymen's terms ferrochrome is produced by melting chrome ore to form a slag
and then adding reductants to trigger a chemical reaction, after which the slag
and metal are tapped from the furnace as Hocking explained in his book "The
Chrome Connection" (Hocking, 1992:14).
Ferrochrome is used as a raw material in the production of stainless steel
(Hocking, 1992:13). It is wrong to think of stainless steel as a single
commodity. It should be seen as a large family of steel alloys, which is able to
resist corrosion, abrasion and heat. In fact more than two hundred types of
steel, classified into fifty-six groups exists (Hocking, 1992:13). All types of
stainless steel have a chromium content of at least ten percent and usually
rather more. For each application the different types of steel must be
considered and the delicate balance between strength, hardness, workability
and surface attractiveness needs to be determined. According to Hocking
35
500 200 100 eo 100
Ellorstres
Z AMBIA UVINGSTONE
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(1992:13) "Stainless steel's secret is an invisible film of chromium-rich oxide
on its surface.'
Figure 3.1: Chrome in Southern Africa.
Source: Hocking, (1992:15).
3.4 Palmiet Ferrochrome
John Hahn of Technimetals had a dream of producing ferrochrome, Rand
Mines turned down his proposals but with John, failure merely encouraged him
36
to try something more ambitious. Hahn heard about a small company called,
`Palmiet Chrome Corporation' who was on the verge of bankruptcy (Hocking,
1992:50). They had a mine on the farm Palmietfontein in the Rustenburg
district, which was operational since 1930. The ore grade was relatively high
but extracting chrome was difficult due to the seams being faulted and
continuous flooding.
Technimetals took over the mine in January 1960 with the vision of
establishing a ferrochrome plant on the farm. Hahn meant to utilise ore already
stockpiled and to buy in further ore as required. Before the plant was built
Hahn heard that the old south gold reduction works at West Rand Cons was on
the point of closure and even though the mine would want to salvage valuable
machinery the buildings and steelwork would be left where they were
(Hocking, 1992:50-51). Hahn decided to convert the works into a ferroalloy
plant. Palmiet Ferrochrome, situated in Krugersdorp, was started in 1962 as a
producer of charge chrome and ferrosilicochrome (Hocking, 1992:54).
The first furnace was in place and ready for start-up by February 1963 it looked
like a bulky, vertical cylinder lined with refractory materials. Three tall
electrodes in a triangle was providing the required heat and three matching
tapholes in the shell wall near the bottom allowed for the tapping of the furnace
according to Hocking's research (1992:53). A second furnace, Furnace No 1,
was commissioned during 1964 for the production of low carbon ferrochrome
(Hocking, 1992:356).
According to the chronology in Hocking's book (1992:355) the following dates
were important in the history of Palmiet:
During 1966, General Mining bought Palmiet and upgraded No 2 Furnace
to 16 megawatts increasing Palmiet's output to twenty eight thousand
tonnes.
37
•:. In 1969, Rand Mines became the new owners and in 1971, RMB alloys, a
subsidiary of Rand Mines, merged with Southern Steel and Palmiet to form
Middelburg Steel and Alloys, a subsidiary of Barlow Rand.
In 1970, Furnace No 3 (9 megawatts) came into operation and in 1974,
Furnace No 1 was modified to become a submerged arc furnace (9
megawatts), producing charge chrome.
Due to market demand for charge chrome No 2 and 3 furnaces was
upgraded in 1977, to 20 megawatts.
The Palmiet Ferrochrome — Customer Introduction Brochure of 1997, claims
that Palmiet Ferrochrome became the first ferrochrome producer in the world
using a DC Plasma furnace (40-megawatt) for the production of ferrochrome in
1983. In October 1991, Samancor became the new owners of Middelburg
Steel and Alloys, and Palmiet.
Figure 3.2: Air view of Palmiet Ferrochrome.
38
At the heart of ferrochrome production lies a message, which inspired
generations.
"Make no little plans.
They have no magic to stir men's blood and probably themselves will not be
realised.
Make big plans ... deep into the future.
Aim high in hope and work.
Have faith, remembering that a noble plan, once recorded, will never die, but
long after we are gone will still be a living thing."
Source: Hocking, 1992:328
39
Chapter Four SABS ISO 14001 (1996)
4.1 Introduction
The first objective is to determine what SABS ISO 14001 (1996) consists of
Before this could be done, it is important to determine what is meant by the
environment, what an environmental management plan is and why
organisations should ensure that they have one in place. The background to the
development of international standards will be discussed and the reasons why
these standards are required will be considered. After determining the different
components of the SABS ISO 14001 (1996) standard the implementation
process in an organisation will be discussed. The information for this chapter
is collected from available literature, the Internet and personal experience.
4.2 What is meant by environment?
Ecosystems have inherent absorption or carrying capacities with definite
threshold levels to exposure or pollution. Current stressing of the global
system has resulted in acid rain, global warming, depletion of the ozone and
habitat destruction. On the other hand biologically diverse systems are
inherently more stable and therefore the need for conservation of biodiversity
is of utmost importance.
As the definition in section 1.4.1 states the environment consists of socio-
cultural structures and processes which includes:
Air, water and land;
,.; All forms of life;
All ecological processes and interactions; and
All physical infrastructures created by man.
40
Considering how the environment is defined by the National Environmental
Management Act, Act 107 of 1998, it becomes clear that the environment
includes; product safety, community safety and occupational health and safety.
South Africa legally adopted this extensive definition of the environment,
which is a complex system, challenging the traditional reductionist perspective
and focusing on a holistic, integrated approach. Considering the socio-
biophysical model as described by Nel et al., (2000:10) it is evident that all
aspects of the environment needs to be considered. A holistic approach means
that one needs to consider not only local, but also regional and global aspects
over a period of time.
The schematic presentation in figure 4.1 will provide a clear picture of all the
elements that forms part of an integrated approach, as per the Socio-
biophysical model. From this it is clear that not only the natural environment
but also technology, an individual's attitudes, values and perceptions needs to
be considered when looking at the environment. It is essential for an
organisation to consider its demographic profile. Furthermore the impact of
the media and an organisations relationship with all affected and interested
parties in the society, where it exists, must be considered at all times. Negative
publicity can have a major impact on the image of an organisation, not only in
the area but also regional and globally. It is of utmost importance that
management realise that there is a synergistic relationship between all the
elements and the cumulative impacts, needs to be controlled and managed.
"The socio-biophysical model is therefore, characterised by a multidimensional
interaction of a variety of elements. These elements are synergistically linked,
so that the interactive and functioning value of the unit is much more than the
sum of the individual elements" (Nel et al., 2000:11).
Nel et al., (2000:9) reminded that it is important to remember that "all systems
in this model are subject to unpredictable and sporadic changes resulting from
41
Public and private institutions. Media
and informal social relationships
external or internal variables. All the subsystems are linked and this may result
in continuous, cumulative and synergistic changes to the systems structure,
interrelationships and associations. New subsystem associations may develop
and disappear continuously."
Figure 4.1: The Socio-biophysical model. Source: Nel et al., (2000:10).
4.3 Global Environmental backlashes
The impact of human activities on the environment has now come back to
haunt us. There are various environmental backlashes that now poses a threat
to humans but at the same time has a detrimental effect on the environment
itself according to Nel et al., (2000:5). A short discussion on some of these
threats namely; acid rain, pollution, the greenhouse effect, deforestation and
ozone depletion follows. Focus will be mainly on the cause and effect on the
environment.
42
4.3.1 Acid Rain
Acid rain is formed when rainwater comes into contact with air pollutants such
as sulphur and nitrogen oxides and combine with these to form mild solutions
of sulphuric and nitric acids. Humans are responsible for approximately ninety
percent of these air pollutants by:
.=? The burning of fossil fuels.
The use of coal in the production of energy.
Fuel combustion in vehicles.
Due to air movement the acid rain does not only fall on the areas emitting the
pollution but can have an effect on land thousands of kilometres away. Acid
rain with a pH value below 5.1 may cause damage to buildings, statues, metals
and car fmishes. At the same time it can kill fish, micro-organisms in lakes
and streams, and aquatic plants. Acid rain can make trees more susceptible to
diseases, insects and droughts by weakening the trees. Fungi and mosses
thrives under acidic conditions. Acid rain pollutes topsoil with heavy metals
and harms vegetation by altering the protective layer on their leaves destroying
their nutrients (Nel et al., 2000:6).
4.3.2 Pollution
Pollution could be seen as the presence of any harmful or unpleasant substance
in air, water or soil, which could lead to environmental degradation. Forms of
environmental degradation include decertification, erosion, deforestation and a
reduction of biodiversity. Pollution may cause unpleasant smells and tastes,
reduces atmospheric visibility, property damage, corrosion of metals, decrease
tree and crop production, damage to animal and human health and even the
spread of infectious diseases (Nel et al., 2000:7).
According to element 3.13 of SABS ISO 14001 (1996:2) pollution is defined
as: "the use of processes, practices, materials or products that avoid, reduce or
43
control pollution, which may include recycling, treatment, process changes,
control mechanisms, efficient use of resources and material substitution."
4.3.3 The Greenhouse effect
A greenhouse effect occurs when heat gets trapped in the atmosphere near the
earth's surface. Water vapour, ozone, carbon dioxide and atmospheric gasses
absorb some of the heat; this is then reradiated back to the earth's surface. The
result of this is an increase in the average temperature of the lower atmosphere.
Greenhouse gasses forms an invisible layer around the earth, preventing
infrared radiation to escape, resulting in the earth being warmed up. This
unnatural rise of temperature is known as global warming. The four major
gasses involved in global warming are carbon dioxide, nitrous oxide, ozone
and methane. If nothing is done to control global warming radical changes
caused by the greenhouse effect may result in climatic chaos (Nel et al.,
2000:8).
4.3.4 Deforestation
Deforestation entails the removing of trees from an area. Forests are cleared to
provide space for crop production, commercial logging, fuel wood gathering
and livestock grazing. Removing trees in a forest destroys the habitat of plants
and food supply of animals. It exposes the soil to drying by the sun and
erosion by rain. Forests are of the utmost importance seeing that they transfer
carbon dioxide (CO2) into oxygen (02) which humans are dependent on to stay
healthy and alive (Nel et al., 2000:9).
4.3.5 Ozone Depletion
Ozone (03) exist naturally in the lower atmosphere in minute quantities and are
brought down from the upper atmosphere by wind and climatic cycles. A hole
in the ozone means that there is a dramatic decrease in the level of ozone in a
given region of the globe. As a result of ozone depletion there is an increase in
44
the levels of ultra-violet (UV) rays reaching the earth. This creates danger to
mankind seeing that it can result in sunburn, skin cancer, eye damage and
damage to the immune system's ability to function properly. Ultimately,
increased ultra-violet rays could disturb the balance of life (Nel et al.,
2000:10).
4.4 Why Standards?
Barnard (1999:135) defines standards as "an object or quality or measure
serving as a basis or example or principle to which others conform or should
conform or by which the accuracy or quality of others is judged." According
to the ISO Head Quarters (wwwa, 2000) "standards are documented
agreements containing technical specifications or other precise criteria to be
used consistently as rules, guidelines, or definitions of characteristics, to ensure
that materials, products, processes and services are fit for their purpose."
Barnard (1999:139) said that standards could be viewed from two perspectives
namely:
The impact of an activity on the environment; or
Its impact on the health and well being of people.
In the first instance standards related to resource management, such as
acceptable rehabilitation measures and the impact on resources such as water,
soil, animals and plants should be considered. The second perspective will
focus on the impact of activities or actions on people, such as the quality of
emissions into the air, and to protect human health (Barnard 1999:139).
According to Nel et al., (2000:2) standards provide a mechanism for managing
compliance to legislation and determine an organisation's obligations. He
suggested that standardisation could result in improved international trade for
an organisation seeing that the product quality and reliability is enhanced.
45
An international standard would ensure greater compatibility of goods and
services while simplification would improve usability and lead to cost
reduction (Barnard et al., 1999:2). Standards can be a central element in
developing a competitive enterprise while preserving the environment.
International demand for environmental acceptability of products, goods and
services could result in improved health, safety and environmental protection
(Barnard et al., 1999:3). Standards form the basis for auditing and
performance evaluation and in the case of SABS ISO 14001 (1996) it forms a
framework for a logical environmental management system.
It is essential to remember that standards cannot replace the need for decisions
concerning the level of excellence sought or the ethics behind those decisions.
Standards could be seen as the yardstick used to measure compliance.
Governments use environmental standards as the basis for government
regulation. O'Laoire (1996) said, "there is a growing tendency for the legal
authorities to look for an environmental management system as a tool for the
management of legal regulatory requirements."
Some environmental protection agencies are conducting their compliance
audits on the basis of such systems. There is also evidence that licensing
authorities may be more inclined to work in partnership with companies
implementing environmental management systems.
The adoption of internationally agreed and accepted approaches by
organisations to managing the environmental consequences of their actions will
enable organisations to demonstrate their awareness and ensure that they have
plans and systems in place to deal with the significant consequences of their
activities. This type of approach to environmental management includes
commitment to comply with legislation and any other requirements to which
the organisation subscribes, to continual improvement of the system to enhance
environmental performance and the prevention of pollution.
46
Barnard (1999:140) suggested that it is legally self-defeating to set a standard
that cannot be met, therefore standards should allow for realistic exceptions.
Exceptions should only be allowed, if the need is proved, subject to a condition
of continuous improvement until the ideal standard is reached (Barnard
1999:140).
Several environmental management standards have been developed with the
main objective to provide organisations with a framework for managing their
environmental issues. Some of these are:
.:. The European Community's Eco-Management and Audit Scheme (EMAS)
introduced by the European Union council regulation (No. 1836/93)
requiring implementation in all European Union Member States.
The United Kingdom's British Standard for Environmental Management
Systems (BS 7750).
The ISO 14000 range from the International Organisation of Standards.
The South African Bureau of Standards SABS 0251 Code of practice for
environmental management systems (Barnard et al., 1999).
These standards contain a number of elements, which form a long term,
sustainable strategy for developing an environmental management system.
Gibbons (1995) said, "standards, properly formulated and implemented, can
move us to invent. These standards could become a benchmark, a symbol of
excellence against which organisations measure their progress and motivate
change. In a global marketplace, standards provide a way of stimulating the
quest for excellence, including environmental excellence." Gibbons (1995)
suggested that standards should not be rigid but provide a flexible framework
that is capable of evolving with changing markets, technological and
institutional conditions.
47
4.5 What is ISO?
Before an attempt will be made to determine what SABS ISO 14001 (1996)
consists of it is important to determine what the abbreviation ISO stands for.
Most individuals believe that it is the International Standards Organisation, but
this is untrue. In fact it is the International Organisation of Standards (wwwa,
2000). This organisation consists of a world wide federation of national
standard bodies (ISO member bodies) who prepare international standards to
be applied equally in all member countries (Kerr and Husseini, 1998). ISO is
derived from the Greek word "isos" which means 'equal' (Kerr and Husseini,
1998).
According to the ISO Head Quarters (wwwa, 2000), each time a new
international standard is prepared all interested members, governments and
interested parties take part in the development phase by representation on the
committee responsible for the standard. A technical committee, made up from
experts in the specific area, is responsible for the drafting of an international
standard, then it is submitted to all member bodies for voting. At least seventy
five percent of all members casting a vote must approve the standard before it
may be published as an International Standard (wwwa, 2000).
Due to increased legislation and concern from interested parties, it became
essential for organisations to demonstrate sound environmental performance,
by minimising the impact of their activities, products or services on the
environment. Governments and organisations have adapted their
environmental policies to foster environmental protection. Environmental
audits and reviews alone are not enough to ensure legal compliance, to ensure
that they are effective they need to form part of a structured management
system and must be included as an integral part of all management activities.
The ISO 14000 series emerged primarily as a result of the General Agreement
on Trade and tariffs and the Rio summit as discussed under section 6.7.1.
48
According to Nel et al., (2000:5) "The International Organisation for
Standardisation (ISO) was petitioned to consider developing environmental
standards, which will be acceptable internationally." In 1991 ISO established a
Strategic Advisory Group on the Environment (SAGE) to start developing the
ISO 14000 series of standards, from which the SABS ISO 14001 (1996) were
derived. SAGE had to consider whether the standards would enhance an
organisation's ability to attain and measure environmental performance,
promote a common approach to environmental management and facilitate
lower trade barriers (Nel et al., 2000:6).
In 1992 a Technical Committee TC207 (Barnard et al., 1999) was established
and given the mandate to consider and produce final consensus standards for
environmental management. Nel et al., (2000:7) said that the TC207's
"mandate included a co-ordination and co-operation function with international
and regional governmental bodies."
TC207 consisted of six subcommittees namely (Barnard et al., 1999:8):
Environmental management Systems.
Environmental Auditing and Related Environmental Investiga-
tions.
Environmental Labelling.
Environmental Performance Evaluation.
Life-Cycle Assessment.
Terms and Definitions.
The Technical Committee had to ensure that the standards they developed
would provide organisations with guidelines and performance indicators, to be
used when doing an appraisal of the organisation's relative environmental
performance. These performance indicators should provide an organisation
with an objective, measurable, reliable and user-friendly system (Barnard et al.,
1999:9).
49
Cornish (1997) stated that "from a South African perspective it has been agreed
that the South African National Accreditation System (SANAS) will establish a
division to ensure that all certification organisations meet international
requirements." The South African Certification Committee for Quality
Auditors (SACCQA) is developing a registration scheme for auditors in the
environmental management field based on international criteria. Cornish
(1997) claims that the Department of Environmental Affairs proposed in 1989
that a concept of Integrated Environmental Management should be developed
to help organisations deal with the complexity of environmental legislation.
This concept was formalised and forms the basis of government's policy.
Cornish (1997) defines an integrated environmental management procedure as
"a philosophy which prescribes a code of practice for ensuring that
environmental considerations are fully integrated into all stages of the
development process in order to achieve a desirable balance between
conservation and development."
Cornish suggested that this procedure should facilitate the collection and
distribution of information prior to decision-making, and include requirements
for compliance and implementation of an environmental management system.
According to Cornish (1997) Integrated Environmental Management is
primarily a planning and decision making tool aimed at the planning and
decision making process throughout the life cycle of an organisation's
processes, products or services.
Table 4.1 is a list of the environmental standards and guidelines developed by
the International Organisation of Standards. Looking at the table it becomes
clear that not only is an organisation supplied with a basic environmental
management system, but also with the tools to implement, evaluates and audits
the environmental management system. It is important to remember that the
standard is not a static, rigid system demanding everything in a specific format,
50
but rather an adaptable framework, which an organisation could change to fit
into its working environment.
Table 4.1: List of ISO Standards dealing with Environmental Issues
Standard
ISO 14000
Description
Guide to Environmental Management Principles, Systems
and Supporting Techniques.
ISO 14001 Environmental management systems - Specifications with
guidance for use
ISO 14004 Environmental management systems - General guidelines
on principles, systems and supporting techniques
ISO 14010 Guidelines for environment auditing - General principles
ISO 14011 Guideline for environment auditing — Audit procedures
auditing an environmental management systems
ISO 14012 Guidelines for environmental auditing — Qualification
criteria for environmental auditors.
ISO 14013/15 Guidelines for environmental assessment of sites and
organisations.
ISO 14020 Environmental labels and declarations — Basic principles
ISO 14021 Environmental labels and declarations — Self declaration
environment claims — terms and defmitions
ISO 14022 Environmental labels and declarations — Self declaration,
environmental claims — environmental labelling symbols
ISO 14023 Environmental labels and declarations — Self declaration
environmental claims testing and verification methodologies
ISO 14024 Environmental labels and declarations — Environmental
labelling type I — Guiding principles and procedures
ISO 14025 Environmental labels and declarations — Environmental
labelling type III — Guiding principles and procedures
ISO 14031/32 Environmental performance evaluation
ISO 14040/43 Life cycle assessments
ISO 14050 Terms and definitions
Source: Kerr and Husseini 1998.
51
--
_
According to the ISO Head Quarters (wwwa, 2000) SABS ISO 14001 (1996)
standards are developed according to the following principles:
"Consensus
The view of all interested and affected parties are taken into account:
manufacturers, vendors and users, consumer groups, testing laboratories,
governments, engineering professions and research organisations
Industry-wide
Global solutions to satisfy industries and customers world-wide.
Voluntary
International standardisation is market-driven and therefore based on voluntary
involvement of all interested in the market place."
ISO is involved in different areas of technology such as depicted in figure 4.2.
The pie chart used in figure 4.2 shows a portfolio analysis of international
standards, by technical sector and the percentage of standards developed for
each sector. From the pie chart it is clear that only 3.7 percent of all standards
developed by ISO concerns health, safety and environmental issues.
The main objective of international standards is to ensure that the same
principles are applied globally. The ISO 14000 series, guides organisations
wanting to improve their environmental performance and profile through better
management, ongoing evaluation and product-oriented enhancements. These
standards do not prescribe environmental performance targets, but instead they
provide organisations with the tools to assess and control the environmental
impact of their activities, products or services. The standards are designed to
be flexible enough to be used by any organisation of any size and in any type
of industry.
52
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ISO has a two-pronged approach to meeting the needs of business, industry,
governments, non-governmental organisations and consumers in the field of
the environment. On the one hand, it offers a wide-ranging portfolio of
standardised sampling, testing and analytical methods to deal with specific
environmental challenges. It has developed more than 350 international
standards for the monitoring of aspects of water, air and soil quality.
Nel et al., (2000:3-10) listed the following as the aims of SABS ISO 14001
(1996) standard:
Achieving third party certification, or second party recognition.
Improving the organisation's environmental management system.
Demonstrating that policies and expectations have been met.
Providing organisations with the ability to integrate environmental and
economic interests with business realities.
Increasing the effectiveness of environmental programmes and improved
environmental performance.
Ensuring that all operational processes are effective.
Achieving stated environmental objectives.
4.6 What is SABS ISO 14001 (1996)?
In the Code of Practice listed in SABS ISO 14001 (1996:v) the president of the
South African Bureau of Standards said that the purpose of international
standards are "to assist organisations to achieve environmental and economic
goals". . From this we can derive that the standards concerned with
environmental management are intended to provide management with the
elements for implementing an integrated system.
However these standards cannot be used to change the legal obligations for any
organisation or to create non-tariff trade barriers. In essence, SABS ISO 14001
(1996) is a management system, which requires that an organisation documents
54
.11 elani8 ea: CC co Lra,t'ti Y.4 11 tql(f)M
*I 111111 .8(tui view
I' _u
Imply, ' L1 (tat p
its intentions with regard to environmental management, and that it is able to
prove achievement of set goals.
The aim of SABS ISO 14001 (1996) is to support environmental protection and
the prevention of pollution whilst keeping a balance with socio-economic
needs. The implementation of SABS ISO 14001 (1996) will initiate or
improve an organisation's environmental management system, allowing them
to demonstrate that their policies, objectives and expectations have been met.
It provides the organisation with the ability to balance and integrate economic
and environmental interests with business realities.
Implementation of SABS ISO 14001 (1996) as an integrated environmental
management system will increase the effectiveness of an environmental
programme. Through the management review, internal and external audits the
overall performance of the system can be improved. Management can ensure
that all operational processes are effective and that the stated environmental
objectives are achieved.
Figure 4.3: Environmental Management system model for SABS ISO 14001 (1996)
Source: SABS ISO 14001 (1996).
55
Continuous Improvement
Initial Review
Commitment and Policy
- — Planning
Environmental aspects Legal and other requirements Objectives ands targets Environmental management programme
Implementation and Operation Structure and responsibility Training, awareness and competence Communication Documentation and document control Operational control Emergency preparedness and response
ammoi1111Nia
Management Review
Checking and Corrective Action
Monitoring and measurement Non-conformanees, corrective & preventative action Records Audits
"A system of this kind enables an organisation to establish, and assess the
effectiveness of procedures, to set an environmental policy and objectives,
achieve conformance with them, and demonstrate such conformance to others"
as per the introduction to the SABS ISO 14001 (1996:v).
Financial benefits of implementing SABS ISO 14001 (1996) can be achieved
by a reduction in insurance premiums. At the same time the corporate image
and market share of the organisation is enhanced. Third party verification of
conformance to SABS ISO 14001 (1996) ensures continued access to critical
markets. Through the improved control the organisation is capable of reducing
their liability and risk and demonstrates due diligence. Seeing that investors
are increasingly focusing on green portfolios SABS ISO 14001 (1996)
certification may facilitate easier access to capital or even ensure a better resale
value of a company's assets.
Figure 4.4: SABS ISO 14001 (1996) as an environmental management system
Source: Barnard et al., (1999)
56
CHECK Observe the effects of the change Analyse the data Pinpoint problems
DO Implementing Changes Collect Data to do a gap analysis
ACT Study the results Redesign systems to reflect learning Change standards Communicate it broadly Retrain
PLAN Understand gaps between customer's expectations and what you deliver Set priorities for closing gaps. Develop an action plan to close gaps
Figure 4.3 clearly shows that the international standard SABS ISO 14001
(1996) only contains the requirements, which may be objectively audited for
certification purposes. Each of the components in figure 4.3 is broken down
into sub-sections in figure 4.4. In section 4.8 each step of the implementation
of SABS ISO 14001 (1996) is discussed in detail. Being an SABS ISO 14001
(1996) certified organisation could be seen as a means to assure interested and
affected parties that an appropriate environmental management system is in
place in an organisation.
Figure 4.5: The Plan-Do-Check-Act Cycle
Source: Barnard et al., (1999)
The SABS ISO 14001 (1996) system can also be seen as a plan-do-check-act
cycle as depicted in figure 4.5. Figure 4.5 is a description of the four main
components of the SABS ISO 14001 (1996) implementation process. It goes
hand in hand with the typical management decision-making process. Firstly
there must be a planning phase during which the end status or desired status
must be identified and the gaps between the current and the desired status
determined. The plan must clearly state how the gaps should be eliminated.
57
Now follows the implementation phase during which the plans are put into
actions. After the plans has been implemented it is essential to evaluate or
check their effectiveness. Through this evaluation process the areas that needs
to be reviewed can be identified and this is the next phase. It is important to
remember that this is an ever-developing cycle. After reviewing the
implemented plans for effectiveness, new plans are developed and
implemented, checked and acted upon. Therefore this could be seen as a
process of continuous improvement.
4.7 What is an Environmental Management Plan (EMP)?
The organisation should establish an environmental management plan, which
addresses all its environmental objectives within the general planning of
activities. To be the most effective the environmental management plan should
be integrated into an organisation's strategic plans and should include
schedules, resources and responsibilities for achieving the organisation's
environmental objectives and targets.
Within the framework of the environmental management plan management
needs to identify specific actions dealing with individual processes, projects,
products, services, sites or facilities, and prioritise these in line with the
organisation's targets and objectives. For the environmental management plan
to be effective it should be dynamic and be revised regularly to reflect changes
in the organisational objectives and targets.
The flowchart in figure 4.6 clearly breaks down the different steps that forms
part of an environmental management system. The process starts with
management commitment (section 4.8.2), which must be evident in the policy
(section 4.8.2) of the organisation. The policy must provide clear reference to
the vision, strategy and objectives of the organisation.
58
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Then the process goes through the steps of planning (section 4.8.3),
implementation (section 4.8.4), checking or corrective action (section 4.8.5)
and through the management review (section 4.8.6) it is evaluated for
effectiveness and corrective and preventative actions are taken. Each of these
components will be discussed in more detail in this chapter as per the sections
referenced.
4.8 Implementation of SABS ISO 14001 (1996)
Figure 4.3 shows that the implementation of SABS ISO 14001 (1996) consists
of different phases namely; initial review, commitment and policy, planning,
implementation and operation, checking and corrective action, management
review and continuous improvement. Before attempting to explain the process
in more detail it is essential to understand that SABS ISO 14001 (1996)
demands that a system must be developed, documented and implemented.
Figure 4.4 breaks each of these phases in sub-sections and figure 4.6 goes into
even more detail.
It is important to remember that during an audit, the auditor must be able to
find evidence in the form of records and registers related to the implementation
of the environmental management system. After implementation the system
must be maintained and continually be improved upon. Due to the fact that
SABS ISO 14001 (1996) is an environmental management system,
management involvement is of utmost importance.
4.8.1 Initial review (figure 4.4)
According to Nel et al., (2000:2) this is done to determine the baseline or
current position of an organisation with regard to the environment. It is of the
utmost importance to clearly define the scope of the implementation project.
During the initial review the following issues need to be addressed amongst
others (Visser (e), 1999:2):
60
Identification of legislation and regulatory requirements.
Identification of environmental aspects of organisation's activities,
products or services to determine significant impacts and liabilities.
Evaluation of performance against internal criteria, external standards,
regulations, and codes of practice.
Existing policies and procedures dealing with purchasing and contractors.
Previous incidents of non-compliance and investigation reports.
Opportunities for competitive advantage.
Views of interested parties.
Other organisational activities that may enable or impede environmental
performance.
Possible incident and emergency situations.
In doing an initial review, it is important to make use of a map of the area,
business flowcharts, checklists, questionnaires, interviews, inspections and
measurements, records, reviews and benchmarking. By making use of these
tools, focus is maintained and it is easier to stay within the scope of the project.
It is impossible to do a gap analysis if the status quo is unknown. The initial
review enables management to find out what the current environmental
performance is and if current practices are adequate, effective and legal.
During this phase management needs to determine what their strengths,
weaknesses, opportunities and threats are, in other words they need to do a
SWOT analysis.
In doing a SWOT analysis it is important to identify existing arrangements,
management system elements, policies and other guidance arrangements, the
current environmental performance of the organisation and the current legal
compliance. From personal experience it is essential that a gap analysis must
be done to enable management to clearly define the gaps, and develop an
informed plan through which continuous improvement can be evaluated.
61
4.8.2 Commitment and Policy (figure 4.4)
SABS ISO 14001 (1996:2) defines an environmental policy as a: "Statement
by the organisation of its intentions and principles in relation to its overall
environmental performance which provides a framework for action and for
setting of its environmental objectives and targets."
4.8.2.1 Commitment
Element 4.2 of SABS ISO 14001 (1996) demands that "Top management shall
define the organisation's environmental policy and ensure that it:
is appropriate to the nature, scale and environmental impacts of its
activities, products or services;
includes a commitment to continual improvement and prevention of
pollution;
includes a commitment to comply with relevant environmental legislation
and regulations, and with other requirements to which the organisation
subscribes;
provides a framework for setting and reviewing environmental objectives
and targets;
is documented, implemented and maintained and communicated to all
employees, and
is available to the public."
Under this category a letter of commitment to environmental management is
required from the Executive Director and management (Barnard et al., 1999).
It is essential that an organisation's policy not only state top management
commitment but that this commitment is clearly demonstrated on a day to day
basis. It must be evident to employees that protection of the environment
receives top priority with management (Visser (e), 1999).
62
4.8.2.2 Policy
According to the ISO 14004 standard (1996:6) the role of a policy is to
establish a sense of direction and to be used to set parameters of action and
broad goals. An environmental policy should consider the following:
"the organisation's mission, vision, core values and beliefs;
requirements of and communication with interested parties;
continual improvement;
.4> prevention of pollution;
guiding principles;
co-ordination with other organisational policies;
specific local or regional conditions;
compliance with relevant environmental regulations, laws and other criteria
to which the organisation subscribes" (SABS ISO 14004, 1996:6).
4.8.3 Planning (Figure 4.4)
A plan must be in place to fulfil the environmental policy. Planning should
consider the following:
Environmental aspects.
Legal and other requirements.
Objectives and targets.
4.8.3.1 Environmental Aspects (SABS ISO 14004, 1996:7)
Establish and maintain a process of identification of environmental aspects of
an organisation's activities on the environment. Consider where appropriate;
emissions to air, releases to water, waste management, contamination of land
use of raw materials and natural resources and all other local environmental
issues, such as vegetation found in the specific location only; water streams,
rivers and dams. All these situations should be considered under normal
operating conditions, shutdown and start up conditions as well as reasonably
foreseeable emergency conditions.
63
The identification of aspects is an ongoing process to determine past, current
and potential impacts both positive and negative. At the same time potential
regulatory, legal and business exposure affecting the organisation must be
identified. A relationship between the aspects and impacts must be established.
4.8.3.2 Legal and other requirements (SABS ISO 14004, 1996:9)
All legislation and other requirements relating to the environmental impacts of
the organisation's activities, products and services must be identified and
complied with. It is of utmost importance to identify all applicable legislation
and ensure the organisation's compliance.
A legal register identifying each law and the clause and sub-clause which are
relevant to the organisation is of utmost importance to ensure environmental
legal compliance. It is essential to remember that law, especially
environmental law is an ever developing and therefore changing reality. A
system must be in place to ensure that the relevant individuals are aware of all
changes in legislation and the impact therefore on the organisation.
4.8.3.3 Objectives and Targets (SABS ISO 14004, 1996:11)
Objectives are the organisations broad overall goals for environmental
performance as identified in its environmental policy. It must be documented
and consideration given to legal and other requirements, significant
environmental aspects, available technology, financial, operational and
business requirements and the perceptions and views of all interested and
affected parties.
It is important that objectives and targets are consistent with the organisation's
environmental policy. When setting targets one must be specific and ensure
that targets are measurable and time frames are documented. Organisations
64
must make use of the best available technology whilst ensuring economic
viability and cost effectiveness.
It is essential to develop Key Performance Indicators (KPI's) to support,
review and amend the targets and objectives. To ensure a well-managed and
controlled system it is essential to clearly define who, what, why, where and
how things must be done. The identification of responsible persons, means and
time frames are of the utmost importance.
4.8.4 Implementation and operation (figure 4.4)
4.8.4.1 Structure and responsibility (SABS ISO 14004, 1996:14-15)
Element 4.4.1 of SABS ISO 14001 (1996:3) states that "Roles, responsibility
and authorities shall be defined, documented and communicated in order to
facilitate effective environmental management. Management shall provide
resources essential to the implementation and control of the environmental
management system. Resources include human resources and specialised
skills, technology and financial resources."
Resources are essential to the effective implementation of an environmental
management system. All personnel responsible for environmental
management must be identified with clear roles, responsibilities and authorities
assigned to them. These must be communicated properly to ensure effective
implementation of the environmental management system according to Nel et
al., (2000:10.2-25). Although environmental team leaders will be responsible
for the day to day running of the environmental management system, all staff
must be committed to the successful implementation of the environmental
management system.
A RACI chart (Table 9.2, section 9.3) indicating the individuals who have
responsibility, accountability, needs to be consulted or be informed is essential
65
in assigning clear roles and responsibilities. The RACI chart could be
combined with an organisational chart to ensure clear role definitions.
4.8.4.2 Training, awareness and competence (SABS ISO 14004, 1996:16-17)
Training needs must be identified and appropriate training courses sourced to
satisfy these needs. Procedures must be developed and maintained to ensure
awareness of the importance of conformance to environmental legislation and
requirements of SABS ISO 14001 (1996). SABS ISO 14001 (1996:3)
prescribes in element 4.4.2 that all "organisations shall identify training needs.
It shall require that all personnel whose work may create a significant impact
upon the environment, have received appropriate training."
Therefore all jobs, which might have a significant impact on the environment,
should be identified and the consequences of non-conformance to work
instructions highlighted to the relevant employee. Competence of responsible
persons and contractors must be determined and if lacking the required training
must be provided (SABS ISO 14001, 1996:3). Before this can be done the
required level of competence must be determined for all levels in the
organisation (Nel et al., 2000:11.2-28)
4.8.4.3 Communications (SABS ISO 14004, 1996:18)
Procedures must be developed to ensure internal and external communication.
Effective communication must indicate management commitment; deal with
concerns and questions from affected parties; increase awareness and make
environmental information available both internally and externally.
Environmental communication is a two-way process of exchanging
information on key environmental issues.
66
Desatibetbeenvironmental management system in acconlaire nth the stated envircmiental
policy, objectives and targets and the applicable standani
Describe the activities of balividut functica►d wits needed to inplemnit the
environmental management system donuts.
4.8.4.4 Documentation Control (SABS ISO 14004, 1996:19)
Emphasis is on the implementation of an environmental management system
and not on a complex documentation system. However, SABS ISO 14001
(1996:4) prescribes that documents must be kept and controlled in the
following manner; it must be easily accessible, regularly reviewed and
amended where applicable, the current versions must be available and obsolete
versions removed.
All documents must be properly identified and retained for a specific period
therefore it needs to be dated and the person responsible for a specific
document must be identified and documented (Barnard et al., 1999:14.2-9).
SABS ISO 14001 (1996) uses a four-tier documentation system, as depicted in
figure 4.7.
Figure 4.7: The Four Tier Documentation System of SABS ISO 14001 (1996). Source: Nel et al., (2000:47).
The four tiers can be described as follows:
The first tier consists of the policy and the manual which describes the
environmental management system according to SABS ISO 14001 (1996),
from which the objectives and targets are determined.
67
.:, The second tier addresses each element in SABS ISO 14001 (1996) with a
documented procedure specifying how the organisation will handle the
specific element.
The third tier consists of work instructions to describe the different
activities and emergency procedures.
.. Lastly the fourth tier consists of all additional documentation such as
minutes of meetings and records to prove the implementation of SABS ISO
14001 (1996). Evidence that the system is monitored and evaluated by the
organisation must be available.
According to Nel et al., (2000:15.5) the purpose of SABS ISO 14001 (1996)
four tier documentation system is to:
Prove planning steps;
Prove implementation;
Control and verification; and
.. Ensure consistency.
4.8.4.5 Operational Control (SABS ISO 14004, 1996:20)
The organisation should identify those operations and activities associated with
the possible impacts in line with its policy, objectives and targets. Procedures
must be developed to address such operations, considering design and
engineering, contractors, raw materials storage and handling, and transport
amongst others.
According to Barnard et al., (1999:15.9-10) conditions must be set for normal
activities and operations, abnormal conditions, accidents, control functions and
verification activities.
4.8.4.6 Emergency Preparedness and Response (SABS ISO 14004, 1996:20-21)
Procedures must be developed to identify potential emergency situations and
the required response documented, to minimise environmental impacts. These
68
procedures must be reviewed and revised as required, tested where possible
and practical, to ensure effective actions are taken.
It is essential to include procedures to control accidental emissions to the
atmosphere; accidental discharges into water; specific environment and
ecosystem effects from accidental releases and the consequences of abnormal
operating conditions; accidents and potential emergency situations (Barnard et
al., 1999:16.2-10).
4.8.5 Checking and corrective action (figure 4.4)
4.8.5.1 Monitoring and measurement (SABS ISO 14004, 1996:21)
Monitor and measure possible significant impacts regularly, record
environmental performance and operational controls and evaluate conformance
with objectives and targets. Monitoring equipment must be calibrated and
maintained and records of this should be retained.
Procedures must be developed for evaluating compliance with relevant
legislation and other SABS ISO 14001 (1996) standard requirements. It is
important to develop checklists as required and visually display these to
motivate employees and to provide them with the opportunity to participate in
the environmental management system (Barnard et al., 1999:17.2-15).
Element 4.4.7 of the SABS ISO 14001 (1996:4) states that an "organisation
shall establish and maintain documented procedures to monitor and measure,
on a regular basis, the key characteristics of its operations and activities that
can have a significant impact on the environment. This shall include the
recording of information to track performance, relevant operational controls,
and conformance with the organisation's procedures."
69
A minimum of three months of records must be available before the South
African Bureau of Standards or any other accreditation body could do a
certification audit.
4.8.5.2 Non-conformance and corrective and preventative action (SABS ISO 14004, 1996:22)
Procedures must be developed to define responsibility and authority for
handling and investigating non-conformances, taking action to minimise
impacts and to take initiative for corrective and preventative action. Such
action shall be appropriate to the magnitude of the problem. Amendments or
changes made to procedures as a result of corrective action must be recorded
and communicated to affected parties. According to Nel et al., (2000:18.6-14)
it is vital to verify the effectiveness of solutions at an appropriate period after
the implementation. Non-conformances identified during an audit must be
verified during follow-up audits and after solutions have been implemented.
4.8.5.3 Records (SABS ISO 14004, 1996:22)
Environmental records must be legible, identifiable and easily accessible.
Records must be kept to prove conformance to SABS ISO 14001 (1996)
requirements. The achievement and status of objectives and targets must be
recorded and monitored. Environmental reporting must be used as an
environmental management tool aimed at informing all stakeholders of the
business's environmental performance. Benefits that could be derived from
environmental reporting are that it allows for direct communication of
important information to external stakeholders, it demonstrates corporate
commitment to environmental protection and it could be used to illustrate the
translation of environmental commitment into specific objectives and actions.
70
4.8.5.4 Environmental Management Systems Audit (SABS ISO 14004, 1996:22)
An audit must be done on a twice a year basis and can only be conducted by an
external party which is accredited to certify your organisation as an SABS ISO
14001 (1996) company. According to SABS ISO 14011 (1996) an
environmental management system audit is "A systematic and documented
verification process of objectively obtaining and evaluating audit evidence to
determine whether an organisations environmental management system
conforms to the environmental management system criteria, and
communicating the results of this process to the client."
Furthermore SABS ISO 14011 (1996) describes the audit criteria for an
environmental management system as consisting of "Policies, practices,
procedures or requirements, such as those covered by SABS ISO 14001 (1996)
and, if applicable, any additional environmental management system
requirements against which the auditor compares collected audit evidence
about the organisations environmental management system." Nel et al.,
(2000:19.3-8) states that environmental audits could have significant coaching
and counselling value, it enables individuals and organisations to learn about
their environmental responsibilities and helps to determine the most effective
way to carry them out.
Environmental audits can be seen as a tool to set in motion a process of
continuous improvement and provides employees with a sounding board to
raise recurring problems. An audit provides the rationale to obtain the
resources to limit current liability and prevent future liability. An audit could
be seen as a test to determine consistency across the company in awareness of
and adherence to the company policy. Environmental audits help organisations
to assess improvement at a site over time and ensure that responsibility is
driven into all levels of the organisation.
71
4.8.6 Management review
Top management must review the environmental management system for
continuing suitability, adequacy and effectiveness. These reviews should be
documented and the minutes kept to be audited. During the review
management must address the need for changes required to the policy,
objectives, audit results, target achievements, and the concerns of interested
and affected parties. All observations, conclusions and recommendations must
be documented (SABS ISO 14004, 1996:23).
According to Nel et al., (2000:21.2-11) the objectives of a management review
is to:
Maintain continual improvement.
Maintain suitability of the environmental management system.
Maintain effectiveness of the environmental management system.
Maintain the adequacy of the environmental management system.
Evaluate the external changes and demands.
Identify the need for change.
4.8.6.1 Continual improvement (SABS ISO 14004, 1996:23)
The objective is to continually improve environmental performance. A form of
continual improvement would be to list those environmental aspects, which an
organisation has control and possible influence over, monitor and evaluate your
performance and set new targets and objectives to improve on achievements.
List also those aspects over which organisation has no control and influence.
The policy must state a commitment to continual improvement.
4.9 Continuous improvement with SABS ISO 14001 (1996)
Continuous improvement of the environmental management system and by
default performance is one of the most, if not the most important pre-requisite
of SABS ISO 14001 (1996). SABS ISO 14001 (1996:1) defines continual
72
improvement as "a process of enhancing the environmental management
system to achieve improvements in overall environmental performance."
There are no specific performance criteria beyond commitment to conform to
the organisations policy statements, the objectives and targets set by
management, all applicable legislation (provincial and national). The
organisation must be capable of proving that serious attempts are made to
prevent pollution and that emergency plans are in place to handle any possible
contamination. The only technical performance requirement in SABS ISO
14001 (1996) is the prevention of pollution.
Environmental performance evaluation is a process to measure, analyse, assess,
report and communicate an organisation's environmental performance.
Environmental performance evaluation includes life cycle assessments and all
possible local, regional or global impacts an organisations activities might have
on the environment (see the socio-biophysical model in figure 4.1).
An environmental performance evaluation includes the identification and
prioritisation of policies, objectives and targets, whilst measuring, assessing
and analysing the environmental performance against them. Environmental
achievements can be demonstrated and the required resources allocated while
management ensures that environmental activities are aligned among all the
organisational units.
4.10 General Environmental Principles
4.10.1Custodianship
"The government acknowledges that it has a constitutional duty to protect the
environment for the benefit of current and future generations of South
Africans. Its responsibilities include the duty to act as custodian of the nation's
resources; to protect the public interest in, and to ensure equitable access to,
such resources and generally to ensure that all South Africans enjoy an
73
environment of acceptable quality. In assuming theses duties, the government
accepts the duties and responsibilities implied by the doctrine of the Public
trust, particularly regarding state owned land and natural resources and will
enact legislation to give effect to this principle" (White Paper on
Environmental Management Policy for South Africa, 1998:21).
4.10.2 Cradle to grave principle
"A commitment to responsible care should be made throughout the product,
project or service life cycle, from the reconnaissance and conceptual phases to
rehabilitation and after care" (Nel et al., 2000:14).
"Responsibility for the environmental and health and safety consequences of a
policy, programme, project, product, process, service or activity exists
throughout its life cycle. It starts with conceptualisation and planning and runs
through all stages of implementation to re-use, recycling and ultimate disposal
of products and waste or decommissioning of installations" (White Paper on
Environmental Management Policy for South Africa, 1998:21).
4.10.3 Due process
"Due process must be applied in all environmental management activities.
This includes adherence to the provisions in the Constitution dealing with just
administrative action and public participation in environmental governance"
(White Paper on Environmental Management Policy for South Africa,
1998:22).
4.10.4 Eco-efficiency principle
"The continuous improvement of goods and services while reducing
consumption and waste" (Nel et al., 2000:14).
74
4.10.5 Increased transparency
"Increased responsibility and increased pressure to disclose performance" (Nel
et al., 2000:14). Organisations must be prepared to have their environmental
policy, plan and actions scrutinised by all interested and affected parties.
4.10.6 Integrated Environmental Management System
SABS ISO 14001 (1996) is known as an Integrated Environmental
Management (IEMS) system. According to the Department of Environmental
Affairs and Tourism (1992:5) the basic principles of an Integrated
Environmental Management Systems are:
Informed decision making;
Accountability for information on which decisions are taken;
Accountability for decisions taken;
The term environment must include biological, cultural, economic,
historical, physical, political, legal and social components;
An open, participatory approach must be followed in the planning of
proposals;
Interested and affected parties must be consulted;
Due consideration must be given to alternative options;
An attempt to mitigate negative impacts and enhance positive aspects of
proposals must be evident;
An attempt must be made to ensure that the 'social costs' of development
proposals (those borne by society) be outweighed by the 'social benefits'
(benefits to the society as a result of development);
Democratic regard for individual rights and obligations must be
demonstrated;
Compliance to the above principles during all stages of the planning,
implementation and decommissioning of proposals, (cradle to grave
principle) must be evident; and
75
The opportunity for the public and specialist input in the decision-making
process must be provided.
4.10.7 Internalisation of externalities
"Where appropriate economic resource measures should be employed to
internalise external environmental costs as part of the exploitation and
production costs. The market price of a commodity, goods or services should
reflect environmental costs, threats, risks and potential liabilities" (Nel et al.,
2000:14).
4.10.8 Polluter pays principle
"The polluter should bear the full costs of any damage caused to the
environment" (Section 22A of the Water Act, Act 54 of 1956).
"Those responsible for environmental damage must pay the repair costs both to
the environment and human health, and the costs of preventive measures to
reduce or prevent further pollution and environmental damage" (White Paper
on Environmental Management Policy for South Africa, 1998:20).
According to the National Environmental Management Act, Act 107 of 1998
section 2 "The participation of all interested and affected parties in
environmental governance must be promoted, and all people must have the
opportunity to develop the understanding, skills and capacity necessary for
achieving equitable and effective participation, and participation by vulnerable
and disadvantaged persons must be ensured. Decisions must take into account
the interests, needs and values of all interested and affected parties, and this
includes recognising all forms of knowledge, including traditional and ordinary
knowledge".
76
4.10.9 Sustainability principle
"Development that meets the need of current stakeholders, without
compromising the ability of future stakeholders to meet their own" Nel et al.,
(2000) referenced the Brundtland Report of 1987.
4.11 Sustainable Development
According to Connel (1996) the World Conservation Strategy (WCS) of 1980
uses the term sustainable development to define development, which meets the
needs of the present generations without compromising the ability of future
generations to meet their own needs. Net et al., (2000) states that in 1987 the
World Commission of Environment and Development (the Brundtland
Commission) accepted the concept of sustainable development as a basis for
environmental management. It was incorporated in South African legislation
through section 2 of the Environmental Conservation Act, Act 73 of 1989,
stating that "the concept of sustainable development is accepted as the guiding
principle for environmental management."
Nel et al., (2000:37) suggested two possible definitions for sustainable
development namely:
"Development that meets the needs of the present without compromising
the ability of future generations to meet their own needs" and
"Development which improves people's quality of life, within the carrying
capacities of the earth's support system."
Sustainable development entails the integration of environmental
considerations into the decision-making process to ensure the maximisation of
profits while limiting environmental impacts. Respect of ecological integrity,
efficient use of natural, social and manufactured resources, use of the
participatory approach and commitment to environmental stewardship by all
levels of decision makers, forms the core principles of sustainable
development.
77
To ensure sustainable development all factors that might have an impact on the
environment will be taken into account before a developer is granted authority
to carry on with the intended development. By implementing a Strategic
Environmental Assessment system (CSIR, 1999:5) an organisation ensures
continuous involvement of all interested and affected parties thereby creating a
continuous learning process.
"Through the implementation of an integrated and sustainability-led Strategic
Environmental Assessment, objectives for sustainability are defined and
strategies to achieve them are implemented and monitored. These objectives
and strategies are updated continually as more information about development
processes and their impact on the environment is obtained" (CSIR, 1999:5).
4.12 Sustainability
Seeing that sustainability receives a lot of attention in all business and
environmental discussions it is important to explore the sustainability principle.
Sustainability implies the maintenance of environmental assets. "It should not
be seen as a fixed state of harmony, but as a process of change in which the
exploitation of resources, the direction of investments, the orientation of
technological development and institutional changes are made consistent with
future as well as present needs" Barnard (1999:57).
The concept of sustainable development is broken down into three dimensions
namely environmental sustainability, social sustainability and economic
sustainability by the National Environmental Management Act, Act 107 of
1998. In section 23 it states that "development must be socially,
environmentally and economically sustainable."
78
4.12.1Environmental Sustainability
Refers to lifestyle changes or adjustments leading to the maintenance of natural
capital while meeting human needs. Environmental sustainability focuses on
the natural resource base and place emphasis on the importance of placing
limitations to which extend it could be exploited (Nel et al., 2000:46).
4.12.2 Social Sustainability
Refers to the moral capital of a particular society and can be enhanced through
the participation of the community. This dimension of sustainability will differ
from society to society due to the difference in culture, values and norms. The
attainment of social sustainability is interdependent on environmental and
economic sustainability and involves mutual understanding among community
members, cultural identity, diversity, solidarity, brotherhood, honesty and the
law (Nel et al., 2000:46).
4.12.3 Economic Sustainability
Economic sustainability is aimed at bridging the gap between the rich and the
poor. Economists used to ignore the environment seeing that it could not be
priced, they seemed to believe in the ingenuity of humanity to develop
technology for the exploitation or substitution of scarce resources. Economic
sustainability should consider environmental constraints to ensure that through
economic development the natural resources are used efficiently. It is essential
to proceed with caution when faced with uncertainty and to place emphasis on
equitable distribution of costs and benefits (Nel et al., 2000:46).
79
Chapter Five
SABS ISO 14001 (1996) and Management Decision Making
5.1 Introduction
Over the years the focus on the protection of the environment changed, from
cleaning up the mess and correcting environmental degradation after the
cessation of business activities, to the management of environmental impacts.
The second objective set for this research survey is to determine if there is a
link between SABS ISO 14001 (1996) and management decision making.
To execute an activity, management demands that the steps required must be
organised in an orderly and efficient progression. The environment has now
become an integral part of an organisation's business plan and as such needs to
be managed. The growing need for guidelines, principles and processes to
facilitate the management of the environment resulted in the creation of new
concepts such as, sustainability in development and rehabilitation. Principles
such as, identification, quantification and use of alternative solutions during
environmental planning were borrowed from other disciplines, such as business
management and adapted for environmental purposes (Visser (b), 2000).
5.2 Management decision making
According to Barnard (1999:198), in the past the management of
environmental matters was seen as an aspect separate from general
management and development. Barnard (1999:199) said that it was not
"understood that an overarching management system was required to address
environmental protection in an orderly, systematic and integrated basis. Such a
management system has two components: a structure designed to decide in
80
principle on the best resource or land-use option and a structure to ensure that
the environmentally acceptable detailed management of the preferred used
option is environmentally acceptable."
Management is a practical process executed for the professional administration
of a public or private undertaking. The process of management requires the
individual to conceptualise the proposed actions and to set procedures and
guideline documents for these actions. The decision-maker should evaluate the
proposal and determine which guidelines, standards or principles will the
organisation be measured against. The different role players should be
identified and responsibility, authority and liability must be assigned to each of
them (Barnard et al., 1999:6).
Even though environmental management is a new concept a management
strategy must be developed for it. According to Barnard (1999:196) the basis
of such a management strategy should be "an attempt to create a project that,
through good planning and design, is less likely to cause environmental
degradation." It is essential to remember that environmental management
requires managers to develop new skills and to look for new solutions in a
multi-disciplinary field. Environmental managers need to have a sound
knowledge of environmental law to allow them to integrate legislation into the
matrix of their daily environmental involvement. Through the integration of a
specialised environmental management structure, into the total management
structure of the organisation adequate environmental control is ensured.
Barnard (1999:197) stated that "environmental legislation increasingly reflects
the reality that good long-term business planning and management usually
equals good environmental planning and management." It is essential that
management develops a system to effectively deal with extended corporate and
life-cycle liability (Barnard, 1999:197).
According to Nel et al., (2000) the processes listed in figure 5.1 deals with
management processes, which is of particular importance if management wants
81
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to deliver stakeholders value. Nel et al., (2000:38) suggested that "the key to
success is to find ways to manage these work processes smarter, faster and
cheaper."
Figure 5.1: Management processes of an Environmental Management System.
Source: Nel et al., (2000:9).
Environmental management decision making could be seen as a step-by-step
process independent of the department be it production, administration, human
resources or marketing. These steps are linked to each other and forms a
never-ending circle when the end of the cycle is reached it starts all over again.
All disciplines of an organisation can have an impact on the environment and
should therefore consider environmental issues in any decisions being made.
The cycle consists of making an assessment of the situation by assessing the
risks, identifying the related issues and understanding the requirements. The
next step is planning during which management must ensure that the
requirements are available, the policy direction is communicated and sold to
the employees, performance standards are set and the required permits and
approvals are obtained. The following step is the implementation phase, which
82
are dependent on the thoroughness of the planning phase for its success.
During the implementation phase it is essential that all risks be managed and
compliance to environmental legislation are ensured. Unwanted impacts must
be reduced if it can not be prevented completely and an emergency plan must
be available in the case of an accidental impact. After implementing the plan
management must review its success by measuring performance against the set
standards and communicating its performance to all interested and affected
parties. The cycle now starts with an assessment of the success of the plan
leading to improved plans which need to be implemented and reviewed.
An environmental management system must be supported by the provision of
training and placing emphasis on making employees aware of their
environmental responsibilities. The required documentation and records must
be available at all times to ensure that the system can be audited.
5.3 What is environmental management?
The defmition in SABS ISO 14001 (1996) (1996:2) states that an
environmental management system "is a management structure that allows an
organisation to assess and control the environmental impact of its activities,
products or services." Any environmental management process needs to
consider the time factor. Management must determine if the processes used by
the organisation in the past or any of their prior activities could have had an
impact on the environment, if they find this to be true they need to take
responsibility for these impacts and undertake remedial actions.
The concept of the 'sins of the fathers' was derived from this seeing that not
only, is management responsible for current activities but also for everything
that happened in the past that could have a detrimental effect on the
environment. One cannot turn ones back on the past seeing that legislation
makes you responsible for all aspects of your process not just from a specific
83
moment in time but right from the conceptual stage, whether it is a week,
decade or century ago.
A study has to be done to determine what the impact of current practices is and
all future projects or plans must consider environmental issues. As part of the
management process it is essential that a clear mission and policy is available
and environmental objectives be linked to the policy and mission.
Management needs to determine what the function of environmental
management should be in the organisation. Nel et al., (2000:12) suggested that
they ask themselves the following questions when deciding this:
How does environmental management fit into the organisational structure?
Who does it report to?
How does it relate to the line functions?
How does it influence decision-making?
When considering the environment it is important to consider the biophysical,
economical, social, political, legal, institutional and technological aspects not
only from a local but also a regional, national and global perspective.
Management must consider the environment during all stages of the product
life cycle; design and construction, operation and decommissioning.
Management tools that could be used are:
Environmental impact assessments.
Terrain evaluation.
Landscape assessment.
Risk assessment.
Ecological evaluation.
Environmental audits.
Control reports.
84
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Figure 5.2: Dimensions of environmental management process. Source: Nel et al., (2000:17).
The rubic cube in figure 5.2 shows the different dimensions needed for an
environmental management process as mentioned. Achieving environmental
management system objectives makes the organisation less vulnerable to
command and control regulations. According to SABS ISO 14001 (1996)
there are six key elements to an environmental management system namely:
m* An environmental policy - in which the intentions of an organisation and
their commitment to environmental performance is stated.
Planning - during which the organisation analyses the impact their
operations have on the environment.
.=%. Implementation and operation - where the organisation develops and
implements processes that will help them achieve environmental targets
and objectives.
Checking and corrective action - monitoring and measuring environmental
indicators to ensure environmental performance standards are met.
Management review - during which the environmental management system
is reviewed to ensure its suitability, adequacy and effectiveness.
85
Continual improvement as described by the ISO 14000 series.
5.4 Why use a system to address environmental issues?
According to Nel et al., (2000:11) the main aim of management systems is to
pull potential disparate systems into a single, integrated and functional one. If
many ill-defined systems exist in an organisation; functions, responsibilities
and accountabilities are more likely to be lost, neglected, ignored or
externalised. Auditing and certification of a system provides confidence that
issues are consistently addressed (Nel et al., 2000:13). This ensures that the
status of the organisation's compliance to the SABS ISO 14001 (1996)
standard is reviewed and adjusted. By doing this environmental management
performance is ensured in terms of a well-balanced and controlled system.
The minimum requirement for SABS ISO 14001 (1996) certification is legal
compliance, as such SABS ISO 14001 (1996) allows for an organisation to
meet its environmental obligations. SABS ISO 14001 (1996) ensures that a
reliable consistent process is implemented through which environmental
obligations are identified and met in a responsible and consistent way (Nel et
al., 2000).
An organisation cannot continue successfully if its norms and operating
procedures are not in line with the norms of the society it operates in. Society
now has the right to demand information on an organisation's environmental
performance, therefore it is important for organisations to provide
environmental reports. An environmental management system enables an
organisation to assimilate the required information for environmental reports.
It is essential to remember that the designing of an environmental management
system is not enough to ensure that an organisation successfully controls and
improve its environmental performance, unless all the individuals involved in
the organisation participate.
86
Participation involves:
Commitment to improving the environmental performance of the
organisation, both currently and in the future;
Taking responsibility for managing particular aspects of the organisation's
environmental impacts in conjunction with having the power to carry out
these responsibilities; and
Gaining the right training to enable effective participation.
5.5 Management with SABS ISO 14001 (1996)
The different processes involved in environmental management systems have
as its main objective deliverance of stakeholder value. In SABS ISO 14004
(1996:14) it is stated that to enable effective management of environmental
concerns the environmental management system elements should be designed
or revised to ensure that they are effectively aligned and integrated with
management system elements.
Management system elements which can benefit from integration are; the
organisation's policies, resource allocation, operational controls and
documentation, information and support systems, training and development of
all levels of employees, an improved organisation and accountability structure,
reward and appraisal systems, measuring and monitoring systems and
improved communication and reporting. It is essential for management to
determine how the environmental management system must be integrated into
the overall business management process and decide on a process for balancing
and resolving conflicts between environmental and other business objectives
and priorities (see figure 5.1).
87
Chapter Six
SABS ISO 14001 (1996) and Environmental Legal Compliance
6.1 Introduction
The third objective of this research study is to determine how SABS ISO
14001 (1996) could be used to ensure environmental legal compliance. Before
an attempt can be made to determine how, it is important to look at what the
law consists of. According to Thome' (1996:2) legislation is a "prescriptive
method of control and entails set levels of performance." He suggests that
individual organisation needs to demonstrate responsible care by considering
the environment in all stages of an organisation's life cycle. The basis of law is
that it resolves around people and is essential to provide order to the
relationships between people.
The promulgation of different laws and regulations are aimed at addressing the
needs of people, and to provide them with rules in which to act. According to
Barnard and Visser (1999:8) "legislation is a collection of detailed, legally
binding principles, processes and management structures which originated
where weaknesses or relative simplicity of the elementary common law
indicated a need for more sophistication." Barnard and Visser (1999:3) states
"Law is not just an abstract set of rules imposed on society but is an integral
part of that society, deeply rooted in the social and economic order in which it
functions and embodying traditional value-systems which confer meaning and
purpose upon the given society." TECHNIKON WITWATERSRAND
LIBRARY
Thorne (1996:2) describes legislation as a prescriptive method of control,
entailing set levels of performance. Due to environmental legislation, pressure
is placed on organisations to take the environment into account during all
88
stages of an organisation's life cycle. Organisations are required to
demonstrate that their environmental responsibility and commitment is
internationally acceptable if they want to compete on the global market.
According to Barnard and Visser (1999:5) it is essential to remember that
legislation is constantly changing to accommodate the needs resulting from
changes in values, priorities, threats and circumstances.
Barnard and Visser (1999:6) said, "Legislation comprises of the laws,
ordinances, rules and regulations passed by elected political representatives
acting as legislative authorities at the different levels of government." Visser
(b) (2000:1) said that the South African legal system is divided into different
fields, with the two main divisions Public law and Private law. According to
Visser (b) (2000:1) Public law rules the relationship between individuals and
the state while Private law rules the relationship between individuals or
institutions. In Private law the state has little or no influence. Public law and
Private law can be divided into different branches, such as Criminal,
Constitutional, Administrative, and Formal law. Other divisions such as
Common law, Customary law and Case law also exist and Environmental law
has developed into another division over the years (Barnard and Visser,
1999:10-15).
Visser (b) (2000:7) claimed that the enhanced role of the Provinces in
promulgation and enforcement of environmental legislation is of importance to
the private sector. "Provinces can now make their own laws and regulations as
long as it is not in conflict with central government legislation" Visser (b)
(2000:7). Central government can delegate power to provinces and allow them
to exercise authority, and provides them with supervisory functions over local
authorities. The provinces are now obliged to introduce systems which would
ensure the proper design of new projects, the management, monitoring and
policing of existing projects and their decommissioning and closure (Visser
(b), 2000:8). Pressure by international bodies and an increase in environmental
awareness have little value, if environmental protection principles are not
89
captured in national legislation and government does not enforce these laws.
The promulgation of several pieces of environmental legislation has imposed
new obligations on organisations and extended their exposure to potential
liability.
6.2 The Industrial Environmental Forum
The Industrial Environmental Forum (IEF) was developed by a dedicated
group of South Africa's industrial and business leaders. It represents a broad
spectrum of South African business and industry. Samancor is a member of
the IEF. The challenge to industry is that "it must continue to grow while
making the appropriate strategic adjustments to ensure long-term economic and
environmental sustainability" (IEF, 1999:1). Most members of the IEF are
business leaders, committed to the implementation of sound environmental
practices in their everyday operations. They focus on continuous
improvement, self-regulation and openness about their environmental
performance (IEF, 1999:2). The role of the Industrial Environmental Forum is
to create awareness and enhance environmental performance. According to the
IEF Report (IEF 1999:3) this is accomplished by:
"Raising an awareness of environmental management issues and best
practice within the business community.
Helping members develop appropriate policies, systems and programmes.
Developing management tools and skills.
Sharing experiences, problems and opportunities across industries.
Representing the environmental concerns of business.
Encouraging business participation in environmental policy and legislation
formulation to ensure cost-effective and achievable environmental
standards.
Monitoring local and international trends.
Promoting South African business internationally.
Supporting training, workshops and seminars for members.
90
Organising and providing input to national and regional conferences and
symposia.
Attracting investment and partnership opportunities."
According to De Villiers and Visser (2000) the University of Pretoria did a
survey on environmental reporting in South Africa. They assessed five
hundred and fourteen of the top South African organisation's, annual reports
for the year 1997. Thirteen of these organisations listed in the top 50 were
members of the IEF. Four of the thirteen companies were listed within the top
ten namely; Ingwe Coal Corporation, Samancor, Anglo American Coal
Corporation and AECI. The focus for this research study is Samancor and as
such it is important to take cognisance of this achievement.
6.3 Environmental Liability
"The main thrust of environmental law is to manage the relationship between
humankind and the earth" (Barnard and Visser, 1999:14). According to the
definition used by De Villiers and Visser (2000:14) environmental law is "A
legal obligation to make a future expenditure due to the past or ongoing
manufacture, use, release or threatened release of a particular substance, or
other activities that adversely affect the environment." De Villiers and Visser
(2000) mentioned that the AC130 Accountancy standard defines liability as a
legal obligation, which derives from a contract, legislation or other operation of
law. According to De Villiers and Visser (2000) the AC130 Accountancy
standard states that legal obligation goes hand in hand with constructive
obligation, which "arises where an enterprise has by past policies indicated to
other parties that it will accept certain responsibilities and as a result has
created a valid expectation on the part of those parties that it will discharge its
responsibilities."
Different types of liability exists such as compliance, remediation and
compensation obligations, which could be linked to punitive and natural
91
resources damages. The trend is for environmental management systems to
produce environmental data but due to the fact that no monetary value is linked
to the data organisations do not have a clear picture of their environmental
costs. Through the adoption of accounting principles that requires auditors to
look at organisations environmental performance when doing financial audits a
drastic change could be expected in this respect (De Villiers and Visser, 2000).
Recognition of an organisation's responsibility to the environment
automatically requires the company to comply with legislation (Visser (b),
2000).
Even though SABS ISO 14001 (1996) is a system approach to managing
environmental issues and not a performance-based document it allows for
organisations to demonstrate their commitment and environmental
performance. Such assurance could be an acceptable tool to satisfy legislators
and regulators that an organisation is aware of, and concerned about its
environmental responsibilities (Visser (b) 2000).
6.4 Environmental Law in South Africa
The change in government in 1994 brought with it renewed pressure for more
stringent environmental legislation and the addressing of environmental equity.
Environmental laws can however not be seen as a separate division due to its
complexity and interrelationship with public and private law. The different
legal requirements only add to the complexity of environmental law. South
Africa formally ratified the United Nations Framework Convention on Climate
Change as a developing country on 12 August 1997, demonstrating its
commitment to environmental protection to the rest of the world (Visser (b),
2000). Considering the three levels of government, the Constitution,
departmental policies and international treaties it is evident that compliance can
be very difficult especially if the implications of the different requirements are
not very well understood by management. It is essential for an organisation to
92
formulate the requirements applicable to them into practical and
comprehensible terms (Barnard and Visser, 1999).
6.5 Legal basis for public participation
The National Environmental Management Act, Act 107 of 1998, states in
section 24 (f) that "the participation of all interested and affected parties in
environmental governance must be promoted, and all people must have the
opportunity to develop the understanding, skills and capacity necessary for
achieving equitable and effective participation, and participation by vulnerable
and disadvantaged persons must be insured." Public involvement was made
compulsory during the preparation of environmental impact reports, scoping
reports and environmental impact assessments. They should be involved in the
evaluation of projects holistically. The Development Facilitation Act, Act 67
of 1995, requires that "members of communities affected by land development
should actively participate in the process of land development."
6.6 Environmental Legislation
Even though the Constitution clearly states how the environment should be
managed, it is still essential to have a policy on environmental management.
Through the policy, principles, strategic goals, objectives and the regulatory
approaches, government demonstrates to organisations how government will
partake in managing the environment.
According to element 4.3.2 in SABS ISO 14001 (1996:3) "the organisation
shall establish and maintain a procedure to identify and have access to legal
and other requirements to which the organisation subscribes, that are applicable
to the environmental aspects of its activities, products or services." As the
discussion under section 4.8 of this dissertation states that for SABS ISO
14001 (1996) an organisation needs to define all aspects in the work
environment and determine what the impact could be on the environment.
93
For the benefit of the reader a table of environmental laws, which needs to be
considered by an organisation to determine if it is applicable on the specific
organisation were included in Appendix A.
6.6.1 The Constitution — Act 108 of 1996
The Constitution, Act 108 of 1996, can be seen as the supreme source of law in
South Africa, it provides a baseline for environmental regulation. All
government policies and laws must be drafted in accordance with the
provisions made in the Constitution (Hall, 1998:3).
To determine the basic principle of South African environmental law, it is
important to look at environmental rights contained in the Constitution, Act
108 of 1996. The basic environmental components of the law will be
summarised. Environmental rights are listed under the Bill of Rights in section
24 of the Constitution, Act 107 of 1996, as follows:
"Everyone has the right —
to an environment that is not harmful to their health and well-being: and
to have the environment protected, for the benefit of present and future
generations: through reasonable legislative and other measures that —
prevent pollution and ecological degradation;
promote conservation; and
secure ecologically sustainable development and use of natural
resources while promoting justifiable economic and social
development."
According to Visser (b) (2000:1) with the promulgation of the Constitution a
duty was placed on all government institutions to enforce policy and legal
requirements in terms of section 24 of the Bill of Rights. The rights in section
24 is not only fundamental rights or human rights but it places an obligation on
government to protect and preserve the environment, to promote conservation
and to secure sustainable development that is economically and socially
justifiable.
94
For the purpose of this dissertation, three of the rights, contained in the Bill of
Rights will be highlighted, namely:
The environmental right;
The right to access of information in section 32; and
The "locus standi" clause in section 38.
According to Hall (2000:3) the environmental right imposes an obligation on
government to pass legislation to give effect to this right. Government must
conduct its activities in such a way that it does not violate this right. Thus
government must ensure that no law passed by them violates or is contrary to
the individuals environmental rights. Government needs to ensure that all laws
passed are compatible with an individual's rights and should not grant permits
that could lead to organisations infringing environmental rights.
Hall (1998:4) states that "the access to information clause provides for
potential litigants to obtain information" related to any organisations
environmental performance. Section 32 allows access to any information held
by government or held by any other person which is required for the exercise
of protection of any rights.
The main value of section 32 is that it allows access to all available research
and detailed information required substantiating demands for improved
environmental performance. This information could be used against the
organisation in a court of law. From this it is clear that organisations must
make decisions, regulations, policies or any other kind of information,
available to anyone for the protection of their rights.
According to Hall (1998:4) "One of the most significant obstacles that
prevented individuals from acting in the interest of the environment was that
they lacked 'locus standi', or the legal standing, to approach the courts." This
obstacle has been removed and anyone acting in their own interest; on behalf
95
of another person, in public interest; in the interest of a group, or an association
acting in the interest of its members may now initiate legal proceedings to
uphold environmental rights (Hall, 1998:4).
According to Visser (b) (2000:3) under section 38 of the Constitution, Act 108
of 1996, legal action can be taken to protect the right of people to a decent
environment and to compel the state authorities to make appropriate legislation
for the protection of the environment and to enforce compliance. If one reads
section 24 and section 38 together it is evident that any person or organisation
may enforce the rights contained in chapter 2 of the Bill of Rights irrespective
of whether that person or organisation is adversely affected by the alleged
infringement of rights.
Section 39 requires that the values of an open and democratic society must be
promoted and international and foreign law considered when interpreting the
Bill of Rights.
6.6.2 The Environment Conservation Act — Act 73 of 1989
The act contains provisions, which are of great importance to the application
and enforcement of environmental law in South Africa. In fact the
Environment Conservation Act, Act 73 of 1989, could be seen as providing
overarching legislation, and establishing general principles applicable to
development in general. Section 2 of the Environment Conservation Act, Act
73 of 1989, implies that all responsible government institutions should apply
appropriate measures to ensure the protection of ecological sensitive and
unique areas.
The Environment Conservation Act, Act 73 of 1989 in section 21 identifies
activities, which may have a detrimental effect on the environment, and all
activities listed are banned. Section 26 provides the regulations regarding
environmental impact reports, which must be submitted to government. All
three spheres of government, namely national, provincial and local
96
government, are involved with the approval of environmental impact
assessments submitted by organisations.
Section 31 a, gives equal and extensive environmental control powers to the
Minister of Environmental Affairs and Tourism, provincial governments and
local governments regarding all development projects. The Environment
Conservation Act, Act 73 of 1989, established the need for sustainable
development, holistic evaluation of projects, the need to internalise external
costs, the requirement of the judicious use of land, the prevention of
environmentally sensitive areas, and the application of conservation principles
in all land-use planning.
The challenge for organisations is to determine how to manage their
responsibility to the environment while minimising their exposure to liability.
An organisation will have to assess the environmental management tools they
are using to determine whether environmental legal liability is adequately
integrated within the system.
6.6.3 White Paper on Environmental Management Policy for South Africa - Government Notice 1096 of 1998
According to Hall (1998:4) the White Paper on Environmental Management
policy for South Africa (1998) "sets out government's vision of an integrated
and holistic environmental management system aimed at achieving sustainable
development" allowing for society to exist in harmony with its environment.
According to Visser (b) (2000:6) its aim is to "unite the people of South Africa
in working together towards a society where all people will have an acceptable
environment to allow them to live in spiritual, cultural and physical harmony
with their natural surroundings."
97
Visser (b) (2000:6) suggested that we could only achieve this through " a new
model or paradigm of sustainable development based on integrated and co-
ordinated environmental management that addresses:
People's quality of life and their daily living and working environments.
Equitable access to land and natural resources.
The integration of economic development, social justice and environment
sustainability.
More efficient use of energy resources.
The sustainable use of social, cultural and natural resources.
Public participation in environmental governance" (Visser (b), 2000:6).
The Department of Environmental Affairs and Tourism has been designated as
the lead agent for environmental management and therefore is responsible for
the development of a strategy and legislation, co-ordinating, enforcing
provincial environmental obligations, monitoring and auditing. The White
Paper on Environmental Management policy for South Africa (1998) contains
principles for environmental management, including cradle to grave
responsibility, environmental justice, polluter pays and custodianship (see
section 4.10). These principles will form the basis on which decisions are
made and legislation is drafted (Hall, 1998:4).
6.6.4 Draft Environmental Management Bill
The draft bill contains principles for environmental management and even
though it has not been promulgated it is important for management to take note
of what possible future effects it might have. The main components of this Bill
are (Visser (b), 2000:6-7):
The bill will apply throughout South Africa and organisations will have to
prove sustainable development.
Environmental management must be an integrated system with equitable
access to environmental resources, benefits and services.
98
The bill clearly stipulates responsibility for the environment, health and
safety consequences of a policy, programme, product or service through its
entire life cycle.
The participation of all interested and affected parties in environmental
governance is encouraged.
The bill demands that the full social and environmental impacts of
activities, including the disadvantages and benefits must be considered,
evaluated and assessed.
Decisions must be taken in an open and transparent manner and access to
information provided according to law.
The right of workers to refuse work that is harmful to human health or the
environment must be respected.
Inter-governmental co-ordination should resolve actual or potential
conflicts of interest between government departments.
Environmental justice shall be pursued.
6.6.5 National Environmental Management Act — Act 107 of 1998 (NEMA)
The White Paper on Environmental Management identified the need for the
legislative reform of environmental law. According to Hall (2000:2) three key
deficiencies in environmental legislation was identified namely:
"Fragmentation of environmental law;
lack of co-ordination of environmental law which falls within the
jurisdiction of numerous government departments, at all levels of
government; and
the need to give effect to the provisions of the Constitution, Act No. 108 of
1996 in general and the environmental right in particular."
One of the national environmental management principles in chapter 1 of the
National Environmental Management Act, Act 107 of 1998, states that:
"Environmental management must place people and their needs at the forefront
of its concern, and serve their physical, psychological, developmental, cultural
99
and social interests equitably. Development must be socially, environmentally
and economically sustainable. Sustainable development requires the
consideration of all relevant factors including that the disturbance of the
ecosystems and loss of biological diversity are avoided, or, where they cannot
be altogether avoided, are minimised and remedied." The National
Environmental Management Act, Act 107 of 1998, could be seen as the
beginning of this reform.
The National Environmental Management Act, Act 107 of 1998, provides for
co-operative environmental governance by establishing principles for decision
making on matters affecting the environment, institutions that will promote co-
operative governance and procedures for co-ordinating environmental
functions exercised by government departments. Co-operative environmental
agreements imply that the Minister, municipalities and any person or
community can enter into an agreement to promote compliance to the National
Environmental Management Act, Act 107 of 1998.
The National Environmental Management Act, Act 107 of 1998 is underpinned
by a set of principles, such as "polluter pays", "environmental justice", and
"waste minimisation", (see section 4.10) which could be used as a framework
for environmental management and decision making.
The National Environmental Management Act, Act 107 of 1998, requires that
activities requiring authorisation or permission by law and those, which may
have a significant impact on the environment, must be considered, investigated,
and assessed prior to their implementation. The National Environmental
Management Act, Act 107 of 1998, has expanded liability in respect of
environmental matters substantially by including a chapter on compliance
enforcement and protection. It encompasses all forms of environmental
pollution, and contains sections on the control of emergency incidents, access
to information, recovery of costs and damages for rehabilitating the
environment and the protection of whistleblowers.
100
In terms of the National Environmental Management Act, Act 107 of 1998,
employees can reveal information about serious threats to the environment,
resulting from their employers activities to statutory bodies and the media.
They are protected under legislation from dismissal and any disciplinary action
or prejudices emanating from the employer. Management needs to remember
that employees in general are becoming more aware of environmental
protection. Considering this awareness, management can no longer hide
environmental damages within the organisation's walls. In the event of a
conscientious employee reporting any environmental impacts to management,
it would be in the best interest of the organisation to address these concerns. In
the event of an employee not being satisfied with management response, the
information could be supplied to statutory authorities or the media with
impunity.
The National Environmental Management Act, Act 107 of 1998, follows a
holistic approach as can be seen in section 24 b "environmental management
must be integrated, acknowledging that all elements of the environment are
linked and interrelated, and it must take into account the effects of decisions on
all aspects of the environment and all people in the environment by pursuing
the selection of the best practicable environmental option."
Emphasis is placed on a holistic approach, considering individual processes,
with their interrelationships and possible interactions or impacts on other
processes. Legislation requires from the developer to determine in advance if
his project might have a negative impact on the environment. Section (o) of
chapter 1 of the National Environmental Management Act, Act 107 of 1998,
states that "The environment is held in public trust for the people, the
beneficial use of environmental resources must serve the public interest and the
environment must be protected as the people's common heritage."
101
Liability is extended through the National Environmental Management Act,
Act 107 of 1998 as is evident by the statement in chapter 7 "duty of care and
remediation of environmental damage" whereby liability is placed with the
responsible person(s) or organisation. This allows government officials to
rehabilitate land or do remedial work on polluted or degraded land recovering
the cost incurred from the individual or organisation, who caused the damage.
Liability is further extended through the introduction of life-cycle assessment
and cradle to grave responsibility as discussed under section 4.10.2.
According to these principles a person never loses the responsibility for its
actions. Life-cycle responsibility defines that the policies, programmes and
actions of organisations over the past century render them liable for the
environmental consequences. According to Barnard (1999:170) "liability
could extend to the actions undertaken for exploitation of minerals, building of
roads, and establishment of steel works, amongst others.
6.7 World-wide Environmental Actions
6.7.1 The Rio Declaration
From 3-14 June 1992 all governments came together in Rio de Janeiro to agree
on an agenda for the protection of the environment and its development during
the twenty first century. The goal of the Rio Declaration is to "establish a new
and equitable global partnership through the creation of new levels of co-
operation among States, key sectors of societies and people, working towards
international agreements which respect the interests of all and protect the
integrity of the global environmental and developmental system, recognising
the integral and interdependent nature of the Earth, our home" (SABS ISO
14004, 1996:25).
A blueprint called, Agenda 21 was drafted on how future development should
take place to ensure economic, social and environmental sustainability (Nel et
al., 2000:75). A document named "Caring for the Earth" is one of the most
102
important outcomes of this conference. This document stipulates what all
nations should do to stop the destruction of the earth, in order to ensure a future
for our children (Net et al., 2000:75).
It was decided at the Rio Declaration that even though governments have the
right to exploit natural resources in order to develop, they need to remember
that environmental protection forms an integral part of development (Net et al.,
2000:75). It was decided that through co-operation between countries
unsustainable practices should be eliminated. In Rio the need for public
participation was realised in conjunction with the need to implement
environmental legislation. Legislation regarding liability and compensation for
victims of pollution were implemented (Net et al., 2000:7). The adoption of
the precautionary approach, as part of the Rio Declaration has significant
impacts on environmental legislation. The precautionary approach states that if
you are not sure if something could have an impact on the environment it is
essential to take precautionary steps (Nel et al., 2000:8).
According to Nel et al., (2000:7-8) the following issues were addressed
through the Rio Declaration:
"Humans are at the centre of sustainable development.
.4) States have the right to exploit resources.
.4) The right to development must be sustainable.
Environmental protection forms an integral part of development.
.4) Eradicating poverty.
.4) Priority to developing countries.
Co-operation between states.
Elimination of unsustainable practices.
Strengthen capacity building.
Public participation.
Environmental legislation.
Open economic system.
Legislation regarding liability and compensation for victims of pollution.
103
Transboundary movement of substances or activities that degrades the
environment.
Adoption of precautionary approach.
Internationalisation of environmental costs.
Environmental Impact Assessments (EIA) as national instrument.
Inter-state notification of disasters.
Information transfer, re transboundary effects.
Role of women and the youth.
Role of indigenous people.
.:. Natural resources of oppressed people.
Rules governing the impacts of warfare.
==' Peace, development and environmental protection are indivisible.
=i) Resolution of environmental disputes."
Any organisation needs to ensure that the knowledge about environmental
legislation, environmental legal performance requirements and management
practices demanded by environmental law forms part of the organisation's
skills base. Ignorance of or indifference to the business implications of
environmental law could have serious repercussions.
It is essential to remember that environmental risk and liability leads to legal
risk and liability and as such can have a major impact on an organisation's
bottom line. Foreign trading, investing or funding agencies increasingly
demands sound environmental management practices, including compliance
with local environmental legal requirements before going into a business deal
with local organisations.
Visser (b) (2000:12) states that "environmental management forms part of the
strategic management system of all companies and organisations, involving
political, legal, technological, business, economic, social, cultural, historical,
natural and international aspects. Therefore it should be treated with the same
104
respect, care and diligence by management as those relating to financial,
quality, risk and manpower management."
6.7.2 The Basel Convention
During the third conference of the Basel Convention, the parties agreed to
amend the Convention by banning the export of hazardous waste from
countries, which are members of the Organisation for Economic Co-operation
and Development to developing countries. During February 1998 the fourth
Conference of Parties of the Basel Convention was held in Malaysia (Visser
(b), 2000). The focus of the fourth conference was on the control of
transboundary movements of hazardous waste and their disposal, emphasis was
placed on the need to ensure that waste is disposed of as close to the source as
possible (Visser (b), 2000).
6.7.3 The World Trade Organisation (WTO)
In 1994 Trade Ministers decided to develop a work programme on trade, which
would include the environment. A World Trade Organisation (WTO)
Committee on Trade and the Environment was established. According to Hall
(2000:3) this resulted in the preamble to the WTO agreement including
references to the objective of sustainable development. WTO members are
entitled to place national environmental objectives ahead of its obligation not
to create trade restrictions or impose discriminatory trade measures and
governments are allowed to implement precautionary measures to protect
human, animal and plant life (Hall, 2000:3).
The ISO Head Quarters (wwwa, 2000) states that they are in the process of
building a strategic partnership with the WTO "with the common goal of
promoting a free and fair global trading system." The political agreements
reached within this framework, requires underpinning by technical agreements
and ISO is being recognised to provide special technical support.
105
6.7.4 The Agreement on Trade, Development and Co-operation (1999).
Article 38 of the Agreement on Trade, Development and Co-operation between
South Africa and the European Community contains a broad commitment to
pursuing environmental issues. Article 38 states that
∎ "the parties will co-operate to pursue sustainable development and promote
the protection of the environment through, prevention of its deterioration
and the control of pollution;
the parties agree to improve the quality of the environment and work
together to combat global environmental problems;
special attention will be given to the development of capacity in
environmental management;
priorities will be assessed and the impact of past practices on the South
African environment addressed where possible; and
areas of co-operation will include urban development, the management of
wastes and dangerous chemicals, water quality control, the control of
pollution from industrial and other sources, water catchment management
and issues regarding the reduction of greenhouse gas emissions."
One of the objectives of this agreement is to back the efforts of South Africa to
restructure and modernise industry, under condition, which ensure
environmental protection, sustainable development and economic
empowerment (Hall, 2000:4). Hall (2000) suggested that organisations should
take the incorporation of environmental issues into their business activities
seriously if they wish to be competitive in the global economy.
6.8 Legal review according to SABS ISO 14001 (1996)
According to SABS ISO 14001 (1996:3) element 4.3.2 "The organisation shall
establish and maintain a procedure to identify and have access to legal and
other requirements to which the organisation subscribes, that are applicable to
the environmental aspects of its activities, products or services."
106
When an organisation does a legal review it is important to identify all legal
requirements in the Constitution, National legislation, National policies enacted
in law, Provincial legislation, Local authority by-laws and International laws
ratified in any host country the organisation might be doing business with
(Barnard et al., 1999:48). It is important to take note that permits,
authorisations, regulations, directives and degrees, common law and case law
can all have an impact on an organisation and as such the organisation must
comply to these as well (Barnard et al., 1999:49). In element 4.5.1 of SABS
ISO 14001 (1996) it is demanded that the organisation's performance against
legal requirements must be checked.
To maintain regulatory compliance SABS ISO 14004 (1996:10) states that "an
organisation should identify and understand regulatory requirements applicable
to its activities, products or services." It is essential to remember that
regulations can be in several forms such as those specific to the activity, to the
organisation's products or services, to the type of industry, general
environmental laws and, permits and licences.
According to Nel et al., (2000:52) a generic certification body such as the
South African Bureau of Standards (SABS) interpretation will be "compliance
to all relevant legislated and other requirements, National, Provincial and
Local, is a minimum requirement for certification" to the SABS ISO 14001
(1996) standard. Nel (2000:53) declares that exceptions are only possible if the
authorities have been informed of the non-compliance in writing, a corrective
action programme is in place and evidence is available that the authorities have
approved the corrective actions.
A paradigm shift is required to move from an enforcement-driven, compliance-
based environmental system to a performance-driven and management base
system. The basis for environment protection must move from clean-up and
107
control to anticipation and avoidance, this can be accomplished through the
implementation of SABS ISO 14001 (1996).
According to Foreman (2000:1) the legal activities required by SABS ISO
14001 (1996) are:
"Make a policy commitment to comply with environmental law.
Identify and provide access to the laws, regulations and voluntary codes
relevant to your organisation's impacts and risks to the environment.
Interpret and apply these laws, regulations and codes to your organisation.
Evaluate and record your level of compliance with the laws, regulations
and codes."
Foreman (2000:2) lists the three most common pitfalls in achieving legal
compliance in an SABS ISO 14001 (1996) system as:
Top management, not being aware of the organisation's environmental
legal liabilities.
A list of laws is available at the organisation, but there is no clear
interpretation of how these laws apply to the specific activities of the
organisation.
Inadequate procedures to taking corrective actions if a law is broken and
which preventative steps should be taken to ensure that the law is not
broken in the future.
108
Chapter Seven
The Need for and Benefits of an Environmental Management System
7.1 Introduction
The fourth objective of this research study is to determine if there exist a need
for the implementation of environmental management systems, and if so could
any benefits be derived from the implementation of an environmental
management system. The need for the implementation of an environmental
management system could be as a result of legal requirements, or due to social
demand or even customer demand.
De Villiers and Visser (2000) quotes a study done by the University of Pretoria
to establish if there is a need for the implementation of an environmental
management system and where the driving force for this is vested. For the
purpose of this research study the survey will be used to determine if the
implementation of an environmental management system is essential to
organisations.
7.2 What type of environmental information do people need?
The University of Pretoria did a study at a multinational organisation to
determine what type of information people is interested in receiving. The
survey divided the organisation in four groups namely:
Stakeholders,
Financial Services,
Employees and National Governmental Organisations (NGO's), and
Interested and Affected parties.
109
Individuals were asked to list the information they would like to receive
according to importance.
Table 7.1 is a summary of the research findings and according to these, the
survey showed that at all levels environmental records are gaining importance
and as a result environmental performance is becoming a critical issue for
organisations. The questionnaire included a Likert scale asking individuals to
indicate the degree of their agreement or disagreement with specific
statements. According to Hawkins et al., (1995:626) to enable analyses of a
Likert scale, for each response category a numerical value must be assigned.
In this instance a seven-point numerical value was used, where zero is low in
importance and seven is high in importance.
Figure 7.1: Bar chart presentation of the importance of availability of environmental related information.
Source: De Villiers and Visser, (2000).
110
Table 7.1: Survey research analysis — Relative importance of types of information.
Financial Services & Stakeholders
Business strategy
Employees NCO"s
EnVironntental Record Employees Health and
Safety records
Price of product Management
development
Employees Health and
Safety records
Hedging policy Environmental Record Environmental
representation on Board
Balance sheet Liquidity of stock Business strategy
Management
development
Research &
Development
expenditure
Number of outside
Directors on the board
Liquidity of stock Political risks Management
development
Environmental Record
Representatives of
Environment and
Labour on the Board of
Directors
Representative of
Labour on Board of
Directors
Employee's Health &
Safety records. Relative risk of job
Research &
Development
Expenditure
Number of outside
Directors on the Board
P/E Ratio
Technical analysis of
stock
Source: De Villiers and Visser, (2000).
111
The bar chart used in figure 7.1 is a graphical presentation on how important
the four groups' rated the availability of information related to an
organisation's commitment to:
sustainable development,
,=. the provision of environmental management system benchmarks,
the conducting of environmental management systems audits by a third
party,
the estimation of environmental expenditure and
.:: possible closure reclamation costs.
From the bar chart in figure 7.1 it is clear that there is an increased demand
from employees and Non-Government Organisations (NGO's) to be provided
with information on environmental management system benchmarks and audits
and they link this to sustainable development.
Figure 7.2: Bar chart presentation on the importance of comparative information and participation for employees.
Source: De Villiers and Visser, (2000)
112
The bar chart in figure 7.2 will demonstrate that employees not only see their
own organisation's information as important but want to know how they
compare with other organisations. They want to participate in the setting of
goals and objectives and see these as highly important.
The perception exists that the implementation of SABS ISO 14001 (1996) is
something that is forced down on employees by management. Surprisingly the
research found that in this organisation it is the employees and the NGO's, who
rate the meeting of SABS ISO 14001 (1996) requirements as important. This
might be due to the awareness training provided by the organisation to their
employees and the society they operate in. The survey did not determine the
level of awareness training provided but if the conclusion is accurate it could
be seen as a plus point for the organisation.
Figure 7.3: Bar chart presentation of the importance of commitment to social responsibility.
Source: De Villiers and Visser, (2000).
The bar chart in figure 7.3 provides the reader with a graphical presentation of
how the four sample groups rated the importance of commitment to social
responsibility, the meeting of SABS ISO 14001 (1996), providing details of
113
environmental plans and providing information on pending legislation. From
this it is quit clear that employees want to participate and depends on
management to provide them with relevant information.
7.3 Survey analysis on ethical investments.
Table 7.2: Summary of the research results.
Portfolio Auditors Directors
Managers Average Average
Average
Environmental Disclosure
More voluntary disclosure 4.0 4.2 4.0
More compulsory disclosure 3.3 3.5 4.1
Part of annual statements 3.6 3.9 4.2
More financial environmental
information 3.9 3.8 4.1
More non-financial
environmental information 3.8 3.9 4.2
Specific Disclosure
Overview of environmental
risks/impacts 4.1 4.1 4.5
Environmental policy 4.0 4.3 4.0
Measurable targets 3.7 3.7 4.0
Performance on targets 3.8 3.7 3.9
Environmental costs 3.6 3.7 4.0
Environmental audit 3.4 3.2 4.0
Source: De Villiers and Visser, (2000).
A survey done in 1995, by the University of Pretoria's Accounting
Department, requested Fund Managers of Unit Trusts to complete a
questionnaire on ethical investing. The questionnaire was sent to Auditors,
114
Directors and Portfolio Managers, in an attempt to determine if they would
want environmental information to form part of annual fmancial statements,
and if the availability of this information would influence them in investment
decision making.
A scale of 3 to 5 was used, where 3 would indicate no preference and 5 would
indicate that everyone answered "strongly agreed". Table 7.2 provides the
average weight for the three groups and the bar chart in figure 7.5 is a graphical
presentation of these results. Ninety percent of the sample population
responded that they would like to have environmental issues reported as part of
the annual reports. While seventy-five percent admitted that the availability of
environmental information would influence their investment decisions.
Table 7.3: Summary of survey responses.
Auditors Directors Portfolio
NI anagers 4 )A. Positive '1/4 Positive
"A. Positive
Environmental Disclosure More volunt. disclosure 78 89 84
More com ulso disclosure 57 58 90
Part of annual statements 70 84 89
More financial environmental information
78 74 79
More non-financial
environmental information 74 89 89
Specific Disclosure Overview of environmental
risks/im . acts 87 89 100
Environmental • olicy 87 95 84
Measurable targets 74 63 74
Performance on targets 78 68 74
Environmental costs 74 74 79
Environmental audit 57 37 84
Source: De Villiers and Visser, (2000).
115
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Table 7.3 and the bar chart in figure 7.5 presents the same information but as
the percentage of individuals who responded positively to the questionnaire.
From this study the conclusion could be drawn that environmental performance
of an organisation can play a major role in the availability of financing
opportunities. Organisations might find that their annual reports would have to
provide environmental information in the not too distant future. To enable
organisations to provide environmental fmancial statements an environmental
accounting system must be in place and would preferably be linked to the
organisations fmancial system and environmental management system.
Figure 7.5: Bar chart presentation of positive responses Source: De Villiers and Visser, (2000).
117
7.4 Benefits of an Environmental Management System
According to Chalzistergou (1998:14) a study by KPMG (a world-renown,
consulting agency) to trace the development of environmental management
systems in South Africa highlighted some of the benefits, problems and trends
for future development. Organisations in the process of implementing an
environmental management system were targeted and out of one hundred and
twelve organisations seventy two percent responded. Organisations see
improved public relations as one of the benefits of an environmental
management system, seeing that it leads to improved environmental
performance by organisations and hence an improved environment.
Financial benefits of implementing SABS ISO 14001 (1996) can be achieved
by a reduction in insurance premiums. Nel et al., (2000:6) suggested that at the
same time the corporate image and market share of the organisation is
enhanced. Third party verification of conformance to SABS ISO 14001 (1996)
ensures continued access to critical markets. Through the improved control the
organisation is capable of reducing their liability and risk and demonstrates due
diligence. Seeing that investors are increasingly focusing on green portfolios
SABS ISO 14001 (1996) certification may facilitate easier access to capital or
even ensure a better resale value of a company's assets (Barnard et al., 1999:7).
Benefits that could be derived from environmental reporting are; that it allows
for direct communication of important information to external stakeholders, it
demonstrates corporate commitment to environmental protection and it could
be used to illustrate the translation of environmental commitment into specific
objectives and actions. A window of opportunity is now being opened for the
production of environmentally linked products. Making use of an activity
based costing system it is possible to improve management and cost control,
which could result in cost savings (De Villiers and Visser, 2000).
118
In addition to the above the implementation of a sound environmental
management system could benefit the organisation by meeting the approval of
politically minded organisations and the avoidance of trade barriers. Internal
management methods can be improved and possible risks and liabilities can be
reduced. The demonstration of commitment to take responsible care for the
environment can improve relations with the community and government
bodies. The improvement of environmental performance can result in a
committed workforce working together to improve the business process, which
will result in savings of raw material and waste removal costs.
From the bar chart in figure 7.6 it is clear that the greatest benefit is legal
compliance, furthermore the research showed that SABS ISO 14001 (1996)
was used by ninety seven percent of the organisations as a basis for
environmental management systems (Chalzistergou, 1998:14).
119
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A study done by Visser (c) (2000) listed the following benefits of an
environmental management system:
"Can be used as a general management system containing much more than
environmental information.
, 2. Provides a framework for easy access to environmental management
information.
.:) Can be used as part of the organisation's marketing strategy.
.:. Allows an organisation to compete on the international market.
Enables an organisation to gain the required experience for the time when
government will demand an environmental management system as a
compliance requirement.
It ensures that management address environmental issues in a systematic,
organised manner.
4,. Serves as an early warning system to alert the organisation of potential non-
compliance aspects and issues.
Monitoring provides the organisation with a clear perspective of their
environmental performance.
4:) Allows an organisation to integrate different sets of information to create a
holistic picture of the organisations impact on the environment.
4:> Harmonised decision-making is promoted through the integration of
information related to all activities covered by the environmental
management system.
.;) It enables clear role clarity and each employee can appreciate his
contribution to the successful functioning of the organisation.
Due to the fact that monitoring and auditing plays a major role management
will at all times be aware of the status of their environmental performance.
Should be a management tool working for the organisation and not vice
versa.
=; South African businesses are being integrated into the global village,
forcing organisations to compete on an international level. A sound
environmental management system enables an organisation to confront
121
competition in the environmental performance field head-on and to
demonstrate our competitiveness based on international standards and
practices."
7.5 Benefits from an Eco-Management system
The following benefits can be derived from an Eco-Management System
according to the Quality Network (wwwd, 1996):
7.5.1 Cost Savings (wwwd, 1996)
All opportunities for cost savings must be evaluated, the most common benefits
could be derived from a review of resource and energy utilisation and its
efficiency, forcing management to consider alternative energy sources and cost
effectiveness. Minimisation of waste can ensure cost reduction for the disposal
thereof.
7.5.2 Customer requirements (wwwd, 1996)
The range and diversity of customer requirements and expectancy are
constantly changing. Customers prefer to deal with suppliers, which can
demonstrate positive environmental performance.
7.5.3 Corporate image (wwwd, 1996)
The ability to demonstrate a responsible environmental attitude can improve
the image of the organisation ensuring better relations with all stakeholders.
Adverse publication concerning an organisation's environmental performance
could be detrimental.
122
7.5.4 Legislation (wwwd, 1996)
A sound environmental management system ensures recognition of the
requirements and compliance with them will ensure that fines are avoided.
7.5.5 Investment (wwwd, 1996)
Investors are increasingly moving to green portfolios. For an organisation
seeking additional investment capital it is sensible to ensure the widest scope
and this is improved by a demonstrably sound environmental performance.
7.5.6 Insurance (wwwd, 1996)
Insurance companies are aware of the risk to their policies from poor
environmental performance of the organisations they insure. Organisations
with a sound and effective environmental management system are able to
demonstrate that they pose less risk to the Insurer Company and create a
powerful negotiating tool for lower premiums. Some insurance companies
require an environmental audit of organisations prior to agreeing cover.
7.5.7 Marketing opportunities (wwwd, 1996)
Sound environmental performance will ensure the widest possible market for
an organisation's products or service.
7.6 Benefits linked to the implementation of SABS ISO 14001 (1996) as an integrated environmental management system
According to Nel et al., (2000:4) the following benefits could be linked to the
implementation of SABS ISO 14001 (1996):
"Technology development and transfer.
,;. Improved industry-government relationships.
Improved environmental performance and state of the environment.
123
Meeting customer's environmental expectations.
Maintaining good public and community relations and enhancing
community goodwill.
Satisfying investor criteria and improved access to capital.
a• Increase world attention on environmental protection.
Assurance that an organisation is managing its liability in a suitable fashion
to protect shareholders interests.
Certification to environmental management system standards may become
a condition of doing business.
Improvement of an organisation's environmental performance through
reviews and auditing.
Increased public pressure for organisation's to provide performance
information.
Improved internal management methods.
Government requirements of incorporating an environmental management
system."
124
Chapter Eight
Management Response to Employee Participation
8.1 Introduction
Due to legislation demanding participation of all interested and affected parties
management must accept that more people will be involved in environmental
decision making. The fifth objective of the research survey is to determine
what management should do to ensure that all interested and affected parties
has the required knowledge and skills to ensure that they take informed
decisions.
Element 4.4.2 of SABS ISO 14001 (1996:3) states " The organisation shall
identify training needs. It shall require that all personnel, whose work may
create a significant impact upon the environment, have received appropriate
training. It shall establish and maintain procedures to make its employees or
members of each relevant function and level aware of:
the importance of conformance with the environmental policy and
procedures and with the requirements of the environmental management
system;
the significant environment impacts, actual or potential, of their work
activities and the environmental benefits of improved personal
performance;
their roles and responsibilities in achieving conformance with the
environmental policy and procedures and with the requirements of the
environmental management system, including emergency preparedness and
response requirements;
the potential consequences of departure from specified operating
procedures.
125
Personnel performing the tasks which can cause significant environmental
impacts shall be competent on the basis of appropriate education, training
and/or experience."
Nel et al., (2000:10.6) said that it is important to note that "personnel" in SABS
ISO 14001 (1996) is broader than employees and include sub-contractors,
temporary workers, visitors, customers and suppliers where a lack of training
could lead to significant environmental impacts.
When an organisation starts to develop environmental training modules, it is
essential that they identify the specific training needs and then develop the
training modules to address these needs. The training course must demonstrate
to employees the importance of conformance to the organisation's
environmental policy. They need to understand the impacts associated with
their job descriptions and the benefits of taking precautionary steps (Barnard et
al., 1999:13).
8.2 Environmental awareness
Awareness does not require in-depth knowledge, but a basic understanding.
The key role players in creating awareness and building motivation for
employees are top management. They need to explain the organisation's
environmental values and communicate their commitment to the environmental
policy to their employees. An environmental management system can only be
transformed from a paperwork exercise into an effective process by the
commitment of individual people in the context of shared environmental
values.
Each employee in an organisation needs to understand the importance of
achieving environmental objectives and targets, and be encouraged to accept
their responsibility and accountability for the possible significant impact their
actions might have on the environment. According to SABS ISO 14004
126
Environmental Issues - EM 1
Environmental Law - EM 2
EMS ISO 14001 - EM 3
Environmental Audit - EM 4
Environmental Environmental Other- EM 5 Representative
CORPORATE STRUCI1URE
(1996:14) "Motivation to continually improve can be enhanced when
employees are recognised for achieving environmental objectives and targets
and encouraged to make suggestions that can lead to improved environmental
performance."
A training and awareness programme is needed for the following target groups
(SABS ISO 14004 (1996:14) figure 8.1):
g* Environmental Management System Representative.
..i:, Trainers with special emphasis on competence.
.,
•
Senior management.
.,
•
Middle management.
Operational level.
' Contractors and suppliers.
Figure 8.1: Generic training and awareness model for environmental management.
Source: Barnard et al., (1999:10).
127
A generic training and awareness model as can be seen in figure 8.1
demonstrates the amount of awareness and competence training required at the
different levels of an organisation. From this it is clear that all levels are
involved but the higher one goes in the structure the more awareness and
competence is required. This makes sense, considering the fact that an
environmental management system is an integrated management system and
management normally has the responsibility for decision-making and they are
held accountable. It is important to note that an organisation must provide
relevant environmental training to suppliers and contractors.
According to SABS ISO 14004 (1996:16) when management evaluates an
organisation's level of environmental awareness they need to determine how
top management established, reinforced and communicated organisational
commitment to the environmental policy. The extent to which employees do
understand, accept and share the values of the organisation must be determined
and to what extent do shared environmental values ensure environmentally
responsible actions. A policy must be put into place to recognise an
employee's environmental achievements.
Management needs to determine the knowledge and skills required achieving
environmental objectives, and taking these into consideration during personnel
selection, recruitment, training, skills development and ongoing education
(SABS ISO 14004, 1996:17). It is essential that all personnel within an
organisation receive appropriate training to ensure the achievement of
environmental policies, targets and objectives. To enable employees to
perform their tasks in an efficient and competent manner, they should have an
appropriate knowledge base, which includes training in the methods and skills
they require and knowledge of the impact incorrect activities could have on the
environment.
128
It is the responsibility of the organisation to ensure that contractors working on
the organisation's premises have the required knowledge and skills to ensure
that they act in an environmentally responsible manner.
Organisations must ensure that employees have appropriate and current
knowledge of regulatory requirements, internal standards and the
organisation's policies and objectives, this could only be done through
education and training (SABS ISO 14004, 1996:17). The level and detail of
training vary according to the task.
Figure 8.2: Elements of a training programme. Source: Barnard et al., (1999:17).
As can be seen in figure 8.2, training programmes generally starts with the
identification of the employees training needs and the development of a
training plan to address the defined needs (SABS ISO 14004, 1996:17). The
129
plan should be verified to ensure conformance of the training programme to
regulatory or organisational requirements. Now the training of target employee
groups can begin, it is essential to keep documentation of training received and
to evaluate the training received by employees for effectiveness. The elements
of a training programme as discussed are graphically presented in figure 8.2.
Table 8.1: Types of environmental training.
1 y pe of training Audience
Senior management.
Purpose
To gain commitment
and alignment to the
organisation's
environmental policy.
Raising awareness of
the strategic
importance of
environment
management.
Raising general
environmental
awareness.
All employees.
To gain commitment to
the environmental
policy, objectives and
targets of the
organisation and instil a
sense of individual
responsibility.
Skills enhancement.
Employees with
environmental
responsibilities.
To improve
performance in specific
areas of the
organisation.
Compliance
Employees whose
actions can affect
compliance.
To ensure regulatory
and internal
requirements for
training are met.
Source: SABS ISO 14004 (1996:19).
When an organisation attempts to identify training needs it is important for
management, not only to look at their own staff generating possible impacts
130
but also contractors working on their site. Consideration should be given to
general awareness needs, job specific skills, emergency response skills and
special emphasis placed on providing environmental management system
representative and auditors with the required skills. Training modules should
be developed to make employees aware of the importance to conform to
policies, the impacts associated with their jobs and the benefits associated with
taking precaution. Training modules should address the roles and
responsibilities of employees under normal conditions, during emergencies and
the consequences of deviating from planned arrangements.
Management needs to consider how the organisation is going to identify
environmental training needs, how the training needs of specific job functions
are going to be analysed, and how training will be documented and tracked. A
system must be implemented to ensure that training is developed, reviewed and
modified as needed. Table 8.1 is an example of the type of environmental
training, an organisation should provide, and the target audience it is aimed at.
The principles of environmental management training are to:
ensure competency,
.4. obtain management commitment,
.4> source adequate funds,
4> allocate sufficient development and training time, and
.4. ensure that training is site specific.
The key success factors for environmental training are to design it for specific
audiences, to establish clear objectives and to ensure that the training is tailor
made according to the culture of the organisation.
131
Chapter Nine
The Impact of Liability, Accountability, Responsibility and Authority
9.1 Introduction
The final objective of this research study was to determine the impact of
liability, accountability, responsibility and authority on individual employees in
an organisation. According to SABS ISO 14001 (1996) element 4.4.1 (1996:3)
"Roles, responsibility and authorities shall be defined, documented and
communicated in order to facilitate effective environmental management.
Management shall provide resources essential to the implementation and
control of the environmental management system. Resources include human
resources, technology and financial resources. The organisation's top
management shall appoint specific management representative(s) who,
irrespective of other responsibilities, shall have defined roles, responsibilities
and authority for ensuring that environmental management system
requirements are established, implemented and maintained in accordance with
SABS ISO 14001 (1996)." The objective of this section in SABS ISO 14001
(1996) is to ensure that authority, skills and resources are provided to deliver
objectives and targets.
9.2 Why should roles, responsibility and authority be defined?
The reason why roles, responsibility and authority needs to be clearly defined
could be assigned to the fact that an environmental management systems is an
integrated system, which results in horizontal integration at all departments of
an organisation, such as operations, production, marketing, sales and contracts.
SABS ISO 14004 (1996:15) clearly states that all levels of employees "should
132
be accountable, within the scope of their responsibilities, for environmental
performance in support of the overall environmental management system."
In defining roles, responsibilities, authority and liability management must
determine who needs to do what (Barnard et al., 1999:12). All tasks must be
identified and the possible impact it might have on the environment.
According to Barnard et al., (1999:15) roles, responsibilities, authority and
liability could be documented by means of job descriptions, work instructions
or operational procedures. It is essential to ensure that the performance criteria
forms part of the documented system.
Vertical integration could be accomplished in an environmental management
system by assigning specific roles and responsibilities to specific positions,
such as the Board of Directors, the Chief Executive Officer (CEO), at corporate
level, business unit management and all staff levels in the organisation. SABS
ISO 14004 (1996:16) provides management with an example of what the
responsibility should be at the different levels in the hierarchy of an
organisation.
Even though Table 9.1 could be seen as a possible approach to assign
appropriate responsibilities it should be recognised that organisational
structures differ from organisation to organisation, and each organisation needs
to understand and define environmental responsibilities based upon their own
work processes.
The environmental management system of an organisation may cross many
functional and organisational lines as depicted in figure 9.1. Therefore it is
essential to determine how the integration of the environmental management
function will be established in an organisation.
133
Table 9.1: Typical responsibilities of the different levels in an organisation.
Environmental
responsibilities.
Establish overall direction
'Fypical person(s) responsible
President, CEO, Board of directors
Develop environment policy President, CEO, Chief Environmental
Manager
Develop environment objectives,
targets and programmes Relevant Managers
Monitor overall environmental
management system performance Chief Environmental Manager
Assure regulatory compliance Senior Operating Manager
Ensure continual improvement All managers
Identification of customers'
expectations Sales and marketing staff
Identify suppliers' expectations Purchasers or buyers
Develop and maintain accounting
procedures Finance/accounting managers
Comply with defined procedures All staff
Source: SABS ISO 14004 (1996:16).
134
Research Engineering Manufacturing Logistics Marketing
Figure 9.1: The cross-functional processes of Environmental Management Systems
Source: Barnard et al., (1999:9).
9.3 The RACI technique
The RACI technique as discussed by Barnard et al., (1999:17) could be seen as
a practical help with the assignment of roles, responsibilities and
accountabilities. In the RACI chart management can assign responsibility (R),
Accountability (A), who must be Consulted (C) and who must be Informed (I).
Responsibility charting delineates key activities or decisions associated with a
project or process and examine the roles of all individual or groups involved
(Barnard et al., 1999:19). It can be used as a diagnostic tool and often
introduces the concept of accountability. More than one individual can have
responsibility for an activity, but the degree of responsibility assigned to each
of them is determined by the individual who is accountable for the task or
activity
Accountability is assigned to the individual who needs to determine if an
activity should take place or not, he should have the authority and full veto
135
power for the activity. According to Barnard et al., (1999:20) it is essential to
"clarify the levels of accountability and to distinguish between management
accountability and operational accountability." For each activity only one
individual can be assigned accountability and hand in hand with accountability
goes authority. An individual cannot be accountable and have no power of
authority.
The RACI chart has a section for consulting with others (Barnard et al.,
1999:22). These are the individuals who must be consulted prior to a fmal
decision or action. "Consult" implies a two-way communication process. At
the same time there are individuals who must be informed of decisions or
actions that has been taken, as they in turn need to take action or make
decisions based on the output. According to Barnard et al., (1999:23) "Inform"
implies a one-way communication process; in other words people need to
know but cannot change the decision.
Table 9.2 provides the reader with an example of how a RACI chart could be
used in an organisation. Making use of this tool enables each individual to see
what his responsibility is and who he must consult before taking action or
making a decision as well as who must be informed of the actions or decisions
taken.
Table 9.2: A typical RACI chart
Source: Barnard et al., (1999:24).
The advantage of the RACI chart is that it is not a rigid system, if the terms do
not translate into the language or culture of an organisation, a substitute could
be used. It is essential to ensure that all participants in the responsibility
136
charting process agree to the terms and definitions thereof, when developing a
system to suit the specific organisation.
9.4 The impact of liability
The National Environmental Management Act, Act 107 of 1998, states in
section 28 that:
"(1) Every person who causes, has caused or may cause significant pollution
or degradation of the environment must take reasonable measures to
prevent such pollution or degradation from occurring, continuing or
recurring, or, in so far as such harm to the environment is authorised by
law or cannot reasonably be avoided or stopped, to minimise and rectify
such pollution or degradation of the environment.
(2) Without limiting the generality of the duty in subsection (1), the
persons on whom subsection (1) imposes an obligation to take
reasonable measures, include an owner of land or premises, a person in
control of land or premises or a person who has a right to use the land
or premises on which or in which-
any activity or process is or was performed or undertaken;
or any other situation exists,
which causes, has caused or is likely to cause significant pollution or
degradation of the environment.
(3) The measures required in terms of subsection (1) may include measures
to-
investigate, assess and evaluate the impact on the environment;
inform and educate employees about the environmental risks of their
work and the manner in which their tasks must be performed in order to
avoid causing significant pollution or degradation of the environment;
cease, modify or control any act, activity or process causing the pollution
or degradation;
137
contain or prevent the movement of pollutants or the causant of
degradation;
eliminate any source of the pollution or degradation; or
remedy the effects of the pollution or degradation."
Visser (d) (2000) interprets this section of the act as follows: "Management
has a duty of care and remediation of environmental damage. This duty is
reflected in the following provisions: in sub-section (1) the duty is imposed
with respect to the historical practices, current practices as well as future
operations of the company. Sub-section (2) puts the responsibility and
therefore also the accountability and liability on company management as well
as all company staff involved in the planning, design and operations of the
operational activities. The measures required include a wide range of options,
from which management must select the most appropriate for implementation"
(Visser (d) 2000).
Visser (d) (2000) warns that those taking the decision regarding the measures
must also accept the responsibility and liability for its eventual success and any
environmental consequences flowing from such a decision. Therefore it is
essential that roles, authority and responsibility is clearly spelled out, coupled
with these goes personal liability.
138
Chapter Ten
Research Findings
10.1 Introduction
A process of triangulation was used for this research study. Secondary data, in
the form of surveys done prior was discussed in chapter seven. The
information in chapter 3 to 6 and chapter 8 is based on literature reviews and
personal experience. The decision was made to use qualitative research and
therefore the questionnaire was sent to the individuals selected through
purposive sampling due to the fact that they are responsible for implementing
and maintaining the SABS ISO 14001 (1996) environmental management
system at nine plants in the Samancor group. This resulted in a homogeneous
group of respondents with the required level of knowledge on the SABS ISO
14001 (1996).
The questionnaire was sent via electronic mail with a covering letter explaining
the purpose of the research. Each individual was asked to please respond to the
questionnaire at the Samancor Environmental Committee meeting held prior to
receiving the questionnaire. Seven of these indiiiduals responded to the
request, resulting in a 77.78% response rate. Even though only two out of the
seven respondents wanted their identity to be kept secret, in this section all the
respondents will be referred to-by the number of the response as in AppendiX
B.
The questionnaire consisted of eleven questions. These were mostly open-
ended questions asking the respondent to provide explanations and detailed
answers. Each question could be linked to one of the objectives or to the aim
of the dissertation. The original questionnaire and copies of all the responses
are available in Appendix B.
139
10.2 Questionnaire analysis
In the questionnaire analysis the questions will be referred back to the
objectives stated in Chapter One section 1.4. Each objective will be discussed
using the answers from respondent to questions linked to the specific objective.
Table 10.1: The link between the questionnaire and the aim and objectives
Objective
No. 1
Question
No. 1 and 2
No. 2 No. 3
No. 3 No. 4
No. 4 No. 5 & 6
No. 5 No. 8
No. 6 No. 9 and 10
Aim No. 11
Please note:
,;. Question no. 7 focus on specific impacts of the implementation of SABS
ISO 14001 (1996) on Samancor and Billiton.
This question will be dealt with separately
10.2.10bjective No 1
The first objective was to determine what SABS ISO 14001 (1996) as an
integrated environmental management system consists of. The literature
review was done in Chapter Four. Question 1 and 2 of the questionnaire asked
the respondents to list the main components and to motivate why they think
these are the most important. Table 10.2 is a combination of all the answers
obtained from the questionnaires.
Respondent no. 1 (Appendix B) sees SABS ISO 14001 (1996) as "a framework
for the establishment of an environmental management system", while
140
respondent no. 3 (Appendix B) suggested that SABS ISO 14001 (1996) as a
whole are important and not just certain sections. According to the results it
seems that continuous improvement and environmental planning are the most
important components. Respondent no. 2 (Appendix B) perceives SABS ISO
14001 (1996) as a system that would enable "the compiling of an invoice of
`environmentally unfriendly' substances, processes, products, and raw
materials or other activities for each section or department, thus identifying all
the aspects".
Table 10.2: The most im ortant components of SABS 0 14001 (1996
Response Management Commitment
Total 2
Identification of Environmental matters 1
Legal compliance 2
Document control 1
Continual improvement 3
Environmental management system 1
International Standard 1
Policy 2
Planning 3
Measurement and evaluation 2
Aspects and Impacts 2
Targets and objectives 1
Training 1
Risk management 1
Source: Questionnaire Responses in Appendix B.
Respondent no. 2 suggests that these should be attended to through; "the risk
rating of each aspect identified, and their classification according to level of
significance, compiling detailed action plans to improve on the mitigating
141
factors associated with each aspect" and the efficient management of these
detailed plans.
Figure 10.1 is a bar chart presentation of the summary of the answer on
question no. 1 where respondents were asked to list the most important
components of SABS ISO 14001 (1996).
Respondent no. 1 (Appendix B) makes a valid statement in saying that; "SABS
ISO 14001 (1996) is a management system, and not some form of
environmental master plan or environmental solution in itself." From this
statement it is evident that SABS ISO 14001 (1996) in itself cannot solve
environmental problems, it depends on the effective management of the
system.
Conclusion
According to figure 4.2 management commitment is the first step in developing
an environmental management system. Linked to management commitment is
the policy, which should demonstrate the vision, strategy and objectives of the
organisation. Table 10.1 list both management commitment and the policy as
important to the respondents. Figure 4.5 is an overview of SABS ISO 14001
(1996) and components such as; continual improvement, commitment, policy,
planning, targets, objectives, legal requirements, environmental management
programmes, impacts, training document control, which all forms part of
SABS ISO 14001 (1996) forms part of the respondents lists which are
combined in Table 10.1. From this it is evident that the respondents feel that
all the components of SABS ISO 14001 (1996) is of importance to the
organisation.
142
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14001 are, the responses received definitely identified the components listed
during the literature review in chapter four, therefore the first objective of this .
research study has been validated.
10.2.2 Objective No. 2
Objective no. 2 was to determine if there is a link between SABS ISO 14001
(1996) and management decision making. In Chapter Five management
decision making was discussed and the link to the plan-do-check-act cycle
(figure 4.5) of SABS ISO 14001 (1996) was considered. The third question in
the questionnaire asked respondents if there is a link between management
decision making and SABS ISO 14001 (1996). They were requested to name
such a link if they feel that there is one.
All the respondents felt that there is a definite link, some even felt that there is
more than one link. Respondent no. 1 (Appendix B) feels if "management is
genuinely committed to an environmentally acceptable operation, SABS ISO
14001 (1996) will provide all the necessary indicators to highlight problem
areas where attention is required." According to respondent no 2 (Appendix B)
the link is vested in the eight management or business principles namely:
.4 "Customer (environment) focused organisation.
,:. Leadership.
Involvement of people.
.:, Process approach.
System approach to management.
Continual improvement.
.::. Factual approach to decision making.
.2. Mutually beneficial supplier (Interested and affected parties) relationships."
Respondent no 4, states that ISO14001 provides a framework for management
in which to make decisions. One of the elements in SABS ISO 14001 (1996)
144
requires that certain decisions related to environmental management must be
documented. This implies that the results or effects of environmental
management decisions are monitored, evaluated and reviewed.
Conclusion
The plan-do-check-act cycle presented in figure 4.5 provides management with
the tools to identify the gaps between customer expectations and what the
organisation is actually delivering. It provides a framework for setting
priorities and developing an action plan to close these gaps. Management must
implement the action plan and then check the outcome of the implemented
changes and evaluate them for effectiveness. After the evaluation process is
completed the results must be communicated and the system redesigned to
reflect the changes. The answer of Respondent no. 2 enforces the plan-do-
check-act cycle (figure 4.5) by listing the eight management components.
Respondent no. 2 said that an organisation must have a customer focus,
allowing for involvement of people, following a process or system approach,
which would result in continuous improvement, and allows for informed
decision making by management. The conclusion can be drawn that objective
no. 2 has been validated and that there is a defmite link between management
decision making the implementation of SABS ISO 14001 (1996). It is
essential to remember that SABS ISO 14001 (1996) is an integrated
environmental management system and therefore should be used by
management.
10.2.3. Objective No. 3
Objective no. 3 was aimed at determining how SABS ISO 14001 (1996) could
be used to ensure environmental legal compliance. Environmental liability and
some of the different environmental laws were discussed in chapter six. The
fourth question asked respondents how SABS ISO 14001 (1996) could be used
to ensure environmental legal compliance in Samancor. Only one of the
145
respondents felt that no environmental management system could ensure
environmental legal compliance.
Respondent no. 1 (Appendix B) said "part of SABS ISO 14001 (1996) requires
the identification and updating of environmental related legal requirements."
He feels that if management is committed, the required action will be initiated,
without this commitment it could be turned into a paper exercise or 'window
dressing' in an attempt to maintain SABS ISO 14001 (1996) certification.
The general feeling was that SABS ISO 14001 (1996) certification demands
that all environmental laws should be identified and a register of these laws
must be available. Respondent no. 5 (Appendix B) highlights that SABS ISO
14001 (1996) certification does not require full compliance but at least a well-
developed action plan towards compliance and adherence to the principle of
continuous improvement
Conclusion
From the responses received it is obvious that the implementation of SABS
ISO 14001 (1996) will ensure that organisations have a more focussed
approach to environmental legislation and are forced to take cognisance of new
and changed legislation. There is no guarantee though that the implementation
of SABS ISO 14001 (1996) will ensure environmental legal compliance. The
objective was to determine how the implementation of SABS ISO 14001
(1996) could be used to ensure legal compliance and the conclusion is that it
can only provide a framework but cannot ensure compliance.
10.2.4 Objective No. 4
In objective no. 4 an attempt is made to determine if there really is a need for
the implementation of an environmental management system and if any
benefits could be derived from it. The questionnaire dealt with these issues in
question no. five and six and therefore these will be addressed under two
146
separate headings. In chapter five the reasons for using an environmental
management system to address environmental issues was discussed.
10.2.5 Is there a need for the implementation of an environmental management system?
The questionnaire dealt with this issue in question five asking the respondents
if they consider the implementation of an environmental management system a
necessity for Samancor. Respondent no. 1 (Appendix B) replied that an
environmental management system is essential to ensure the maintenance of an
environmentally acceptable operation. He states that "an environmentally
acceptable operation is necessary, firstly due to the company's social
obligations, and secondly, because the developing legislation will enforce
compliance at some stage." He feels that the longer an organisation waits to
implement an environmental management systems the costlier it is going to be.
Respondent no. 2 (Appendix B) feels that it is required due to the nature of the
final products and the emphasis placed on environmental matters from various
sources such as our customers. He thinks that if Samancor does not implement
sound systems for environmental management the organisation will lose
market share, especially if competitors can ensure customers that their
operations are environmental friendly. He rates the importance of management
of the environment on the same level as management of safety, health and
quality.
According to respondent no. 3 (Appendix B) the implementation of an
environmental management system provides confidence to customers,
particularly when competing in the international market
According to respondent no. 4 (Appendix B) the implementation of an
environmental management systems is a shareholders requirement at
Samancor. He feels that it allows the organisation to keep track of legal
requirements.
147
Respondent no.5 (Appendix B) states that the implementation of an
environmental management system "provides a structured approach towards
environmental management and gives the customer assurance of responsible
actions in terms of environmental protection during all phases of the
production process."
10.2.6 Advantages and disadvantages of the implementation of an environmental management system
Chapter seven deals with the advantages and disadvantages linked to the
implementation of an environmental management system, such as SABS ISO
14001 (1996). The perceptions of Samancor employees was tested in question
six by asking the respondents to list the actual advantages and disadvantages
derived from the implementation of SABS ISO 14001 (1996).
Table 10.3: Advantages associated with the implementation of SABS ISO 14001 (1996).
Advantages
Better conditions for the workers and people living around our factories.
Complying with environmental legislation, constitution and international
conventions can be used as a sales tool.
.4. Less waste, due to control of resource usage such as water and raw
materials.
.4) Better designing of facilities — more energy efficient.
Positive publicity / community relations.
.4) Necessary for long term survival of company.
Structured approach towards environmental management.
Ensures a focus on legal compliance and provides a system to manage it.
Adherence to the principle of continuous improvement.
.4) Auditing by an independent third party.
Risk measurement and proof of environmental compliance.
Source: Questionnaire responses (Appendix B).
148
Table 10.3 is a combined list of the advantages and Table 10.4 address the
disadvantages as perceived by the respondents.
Judging the amount of advantages listed in relation to the disadvantages it
seems that at Samancor there is a perception that the use of SABS ISO 14001
(1996) as an integrated environmental management system would allow the
organisation to reap more benefits. The advantages outweigh the
disadvantages by far.
Table 10.4: Disadvantages associated with the implementation of SABS ISO 14001 (1996).
Disadvantages
Can be costly at the offset.
More pressure on managing all the activities — scope becomes wider.
Capital projects normally large and makes little direct positive impact on
bottom line.
The cost of having skilled personnel to implement and maintain the
system.
Source: Questionnaire responses (Appendix B).
Conclusion
From the responses received and the survey done by De Villiers and Visser
(2000) discussed in chapter seven it can be concluded that even though the
implementation of an environmental management system might be a costly
process more advantages than disadvantages could be derived from it. From
the fact that legislation will be enforced by government and that organisations
have a social responsibility to the community they are part of it is evident that
the implementation of an environmental management system makes good
business sense. The conclusion can be made that the implementation of an
environmental management system is essential and could enhance an
organisation's market position.
149
Bringing the focus closer to home, it is noticeable that all the respondents saw
benefits in the implementation of an environmental management system. The
conclusion could be made that for Billiton it is of the utmost importance to be
rated highly on the London Stock Exchange. Seeing that Samancor is one of
Billiton's subsidiaries both Billiton and Samancor can benefit from having
sound environmental management systems in place.
10.2.7 Objective No. 5
Objective no. 5 was aimed at determining how management should respond to
ensure employee involvement. In chapter eight environmental awareness,
training, knowledge and skills were discussed. The aim of question no. 8 of
the questionnaire was to determine how the responsible individuals at the
different plants feel about the duty placed on organisations by environmental
legislation.
Some of the steps listed to ensure employee and community involvement were:
Communication through awareness campaigns. This could be done via
company newsletter and notice boards.
.:) Educating not only the workforce but also the community regarding
environmental matters and at the same time ensuring that the required
information is available.
,:• Training should be aimed at the level of the individuals being trained
therefore environmental matters must be presented in non-technical terms
to ensure understanding. Depending on the level of education one should
consider making use of graphics to bring the message to the people.
According to respondent no 3 (Appendix B) it is dependent on the situation.
He suggests that if a plant is situated in an environmentally sensitive
community a more cautious approach should be used in allowing community
involvement. Respondent no. 4 makes it clear that "community involvement is
not a pre-requisite for IS014001 certification." He states (Appendix B) that by
150
law "new projects, however need to go through an Environmental Impact
Assessment (EIA)." This process requires public participation, whereby
members of the community become involved. He further suggests that through
the celebration of SABS ISO 14001 (1996) certification, Arbor Day, Water
Week, and World Environmental Day people could be made aware of
environmental issues and participation in these ceremonies would enhance the
image of the organisation.
Respondent no. 5 (Appendix B) feels that participation could be enhanced
through 'Interested and Affected Parties' meetings and "news letters containing
information on environmental projects and contact numbers of relevant
personnel to allow for a process of communication and consultation."
Conclusion
Not only does SABS ISO 14001 (1996) demands evidence of training being
provided, but the different legislation demand participation of interested and
affected parties. From the responses received it is evident that management
must ensure that not only employees but also all interested and affected parties
are allowed to participate in the organisation's environmental management.
The conclusion can be drawn that if management want individuals to make a
positive contribution to environmental management they need to provide them
with the required skills and knowledge. The objective was to determine how
management should respond and the conclusion drawn is that they should
allow people to participate, provide training and awareness workshops and
keep the community informed of the steps organisations are taking to ensure a
sustainable environment.
10.2.8 Objective No. 6
Objective No. 6 was to determine the impact of liability, authority,
accountability and responsibility. Chapter nine answers the question on why
roles, responsibility and authority must be defined. The RACI technique is
151
discussed as a possible framework to be used in assigning responsibility and
authority and the impact of liability is considered. The general feeling under
the respondents in relation to these issues was tested with question 9 and 10.
Question no. 9 asked respondents how important they consider the assignment
of environmental responsibility, liability, authority and accountability.
Question 10 asked respondent to state how they would assign responsibility,
liability, authority and accountability in their organisation.
All seven respondents consider it as important, respondent no. 2 (Appendix B)
states that it is "essential and non-negotiable." Some of the other responses
were:
.;) It is vital to the success of an effective environmental management system
(Respondent no. 3, Appendix B).
It is a requirement to stay in business and should be viewed with the
necessary importance (Respondent no. 5, Appendix B).
If responsibility is not assigned, nothing will happen concerning
environment (Respondent no. 6, Appendix B).
'=. In view of sustainable operation very important (Respondent no. 7,
Appendix B).
Respondent no. 2 (Appendix B) felt that it is "very important." He links his
answer to the eight management principles namely: customer focus, leadership,
participation, system approach to management, continual improvement, factual
approach to decision making and mutually beneficial supplier relationships.
He feels that Samancor will be forced by these management principles to apply
control measures for environmental issues, to the same extend as applying
them for production. Respondent no. 2 (Appendix B) feels that "Billiton and
Samancor will have to be seen as companies with clear policies, strong
commitment and strategies on all levels." He considers "transparency as a
must."
152
On determining how the respondents would assign responsibility, authority,
accountability and liability at their individual plants, the following responses
were obtained:
Respondent no 1 (Appendix B) states that "the overall accountability for
maintaining the environmental management system and for technical
support in actual environmental matters should resort with one
department." He feels that in addition to this, "each departmental manager
should be accountable for environmental compliance and system
maintenance in his / her own department."
Respondent no. 2 (Appendix B) states that the assignment of environmental
responsibility should happen as "for appointments under the Occupational
Health and Safety Act (OHS Act), appointments must include
environmental responsibilities." Respondent no. 3 feels (Appendix B) that
it should happen through consultation, education and training. He feels that
only after an individual has the required knowledge and skills a
documented appointment should be made.
Respondent no. 5 (Appendix B) feels it should happen by "making a person
exclusively accountable to manage and co-ordinate the process of
responsible environmental management."
Conclusion
Chapter 9, section 9.4, mentions the fact that an individual could be held liable
for the impact of his actions on the environment. From this and the
questionnaire responses it is obvious that the impact of liability, authority,
accountability and responsibility is of the utmost importance. The conclusion
drawn is that liability, authority, accountability and responsibility must be
clearly assigned and documented. Individuals need to know what their roles
are and how their activities can have an impact not only on the environment but
also on themselves seeing that according to law they could be liable.
153
10.2.9 The Aim of the Research
The aim of the research was to determine if SABS ISO 14001 (1996) as an
integrated environmental management system could be used as a framework to
ensure environmental legal compliance at Samancor. The last question of the
questionnaire asked the respondents if they consider the implementation of
SABS ISO 14001 (1996), a guarantee for environmental legal compliance.
The general answer received was that SABS ISO 14001 (1996) certification
could not be used to guarantee environmental legal compliance. Respondent
no. 1 (Appendix B) feels that a certain amount of "window dressing" is still
possible.
Respondent no. 2 (2000:B10) feels that SABS ISO 14001 (1996) could
possibly guarantee legal compliance "if top management, middle management
and supervisory staff are committed to use this system to become more
efficient in what we do." He states that "if the code is seen as glamour, or a
nice to have item, that could be used to impress people, SABS ISO 14001
(1996) would not ensure legal compliance.
Respondent no. 3 answered (Appendix B) "Absolutely not." He feels that it is
"possible to meet all the requirements of the SABS ISO 14001 (1996) standard
on the day of the audit and have an illegal spill the very next day." Respondent
no. 5 (Appendix B) feels that "adherence to the requirements of the code as
well as legal compliance audits conducted by specialists contracted by the
SABS could provide a guarantee for environmental legal compliance."
From these responses it is clear that SABS ISO 14001 (1996) certification
could not guarantee environmental legal compliance. The fact is that SABS
ISO 14001 (1996) demands that an organisation must have an environmental
law register and the laws must be available. This forces an organisation to
determine which laws might have an impact on the organisation. From this
viewpoint SABS ISO 14001 (1996) could be used as a tool to ensure that
154
organisations take cognisance of the different laws and regulations, but a lot
more must be done to ensure environmental legal compliance.
10.2.10 Question No. 7 The financial, legal and social impacts for Billiton and Samancor
In question no. 7 the respondents were asked what the financial, social and
legal impact of the implementation and certification of SABS ISO 14001
(1996) would be on both, the Samancor Plants and the parent company,
Billiton. This discussion deals with impacts and is divided into; financial
impacts, social impacts and legal impacts. After looking at the different types
of impacts the focus will move to the impact on Billiton (section 10.2.10.4) and
Samancor (section 10.2.10.5).
10.2.10.1 Financial Impacts
Maintaining SABS ISO 14001 (1996) can go hand in hand with maintaining
SABS ISO 9002, which is a Quality Assurance system, and requires one full
time person with the salary expenses at middle management level. According
to Respondent no. 1 (Appendix B)"the cost of environmental compliance is a
legal and social requirement, and should stand separate from maintaining an
SABS ISO 14001 (1996) management system." Respondent no. 5 (Appendix
B) sees the annual audit fees, especially the relatively high audit fee every third
year (tri-annual audit) as having the biggest financial impact. He also thinks
that it is costly to adhere to environmental legislation.
10.2.10.2 Legal Impacts
If the correct commitment exists, SABS ISO 14001 (1996) will facilitate legal
compliance. Respondent no. 2 (Appendix B) feels that "there is no side-
stepping this issue legally we will have to comply and the SABS ISO 14001
(1996) code is a method to ensure legal compliance." He foresee that as
customers demanded that their suppliers must obtain SABS ISO 9000 Quality
155
Assurance certification, customers might demand SABS ISO 14001 (1996)
Environmental certification before doing any business with an organisation.
10.2.10.3 Social Impacts
Samancor can prove to the community that it is not polluting the environment.
Respondent no. 2 (Appendix B) feels that "environmental pressure group in the
different areas will force Samancor to negotiate with them before entering into
new processes." He suggested that the managing of environmental pressure
groups would become an integral part of Samancor's management strategy.
According to respondent no. 3 (Appendix B) allowing for communities to
participate in an organisation's environmental management would lead to
improved public relations. On the other hand respondent no. 5 (Appendix B)
feels that the involvement of all interested and affected parties could have a
negative impact if an organisation does not have an approach accepting
responsibility in terms of pollution. He feels that "People, who would
normally not have a say in the business will have an opportunity to express an
opinion and put demands" on an organisation.
Respondents were asked to bring their answers closer to home and list the
implications for Billiton and Samancor. The following responses were
obtained:
10.2.10.4 Billiton
Respondent no 4 (Appendix B) said that Billiton "need to comply with FTSE
100 company reporting standards." According to him if Billiton's subsidiaries
are SABS ISO 14001 (1996) certified it will enable them to make a positive
environmental performance statement and enhance the possibility of a higher
BiE Index rating on the FTSE 100. According to respondent no. 6 (Appendix
B) Billiton can gain economically from recycling and better usage of its
resources. Having all plants SABS ISO 14001 (1996) certified will enhance
the organisation's international social acceptance. According to respondent no.
156
6 (Appendix B) SABS ISO 14001 (1996) could be "used to ensure legal
compliance to a higher standard."
10.2.10.5 Samancor
Respondent no. 4 said (Appendix B) SABS ISO 14001 (1996) certification
could help the plants to score "Brownie points." He thinks that it will ensure
that Samancor Management will not be rapped on the knuckles at every board
meeting. At the same time he suggests that environmental management
through SABS ISO 14001 (1996) will ensure better control over the general
housekeeping at the plants and the audit system can be extended to include
housekeeping. According to respondent no. 4 good housekeeping is a
prerequisite for responsible environmental management. He suggests that the
implementation of a sound integrated environmental management system could
ensure better handling of complaints received from members of the community
and the authorities. According to respondent no 4 the implementation of the
SABS ISO 14001 (1996) standard will result in the "identification of
responsibilities and authorities of personnel" at Samancor and the
"identification and control of objectives and targets with relationship to
environmental management."
10.3 Environmental reporting at Samancor
As early as 1996 Samancor has been reporting on environmental management
issues in their annual reports. The Samancor annual report (1996:42) states
that during 1996 the Samancor Environmental Management Committee
(SEMCO) has focused on environmental objectives and action plans, legal
compliance and management systems. A system of environmental
management by objectives has been established at each plant during this
period. In April 1996 the National Forum endorsed the Samancor
Environmental Mission Statement. During 1996 Samancor became involved
with the Consultative National Environmental Policy Process (CONEPP)
providing input in the various industry bodies, and lobbying for a balance
157
between environmental protection and economic development. Table 10.5
shows the group's total expenditure on environmental management for the year
1996.
Table 10.5: Environmental expenditure at Samancor during 1996
1996 1997 1998 E nv ironmental ironmental Expenditure
R Million R Million R Million
Mining Properties 6.2 3.4 7.1
Hazardous wastes and effluents 49.5 52.3 48.3
Solid wastes 28.5 1.9 4.3
Worksite restoration 0.8 0.7 0.6
TOTAL 85.0 58.3 60.3
Source: Samancor Annual Report (1998:26).
In the 1998 Samancor Annual Report (1998:25) it is claimed that Samancor
"continued to apply previously adopted strategies in its environmental
management processes." These strategies are based on:
"accreditation to internationally recognised environmental management
system namely SABS ISO 14001 (1996);
achievement of environmental legal compliance;
elimination of identified environmental concerns using environmental
management by objectives (EMBO) and ongoing monitoring of progress
against these objectives;
.0 improvement in waste management through the adoption of cleaner
technologies; and
participation in environmental processes impacting on the group's
operations.
During 1998 approval was obtained from the Department of Minerals and
Energy and the Commissioner for Inland Revenue for the establishment of the
Samancor Environmental Rehabilitation Trust Fund for mines. According to
the Samancor Annual Report (1998:27) "Samancor remained closely involved
158
in several legislative processes" during 1998. Some of these were the White
Paper on Environmental Management Policy as discussed in chapter six, the
Water Services Act, Act 108 of 1997, the National Water Bill, and the Water
Pricing Policy. Representatives of the group participated in the revision of the
Department of Minerals and Energy Affair's environmental management
programme report (EMPR) for prospecting and mining operations.
10.4 Recommendations
A Board decision that all of its subsidiaries will implement an integrated
environmental management system, such as SABS ISO 14001 (1996) does not
provide the driving force needed to ensure the actual implementation. It is
essential to ensure that all levels of management are involved. Seeing that
SABS ISO 14001 (1996) is a management system, management must be
trained on the different components of the system, the implementation and
evaluation process. Without top management commitment SABS ISO 14001
(1996) will never be successful. SABS ISO 14001 (1996) is too complex a
system to allow that as a result of a Board decision, an individual somewhere
in middle management is tasked with 'getting it in place.'
The environment is such a complex entity that it demands expert knowledge in
identifying aspects and impacts, setting the targets and objectives, planning and
implementing the environmental management system. If top management does
not have the background knowledge of what SABS ISO 14001 (1996) consists
of and how the process works, unfair demands and time constraints are placed
on the individual tasked with the implementation process.
The required resources must be available before an attempt could be made to
implement SABS ISO 14001 (1996). Some of the resources needed are
financial resources, human resources, knowledge, skills, and time. Without
knowledge of the organisational processes, the SABS ISO 14001 (1996)
159
process, environmental knowledge and knowledge of legislation the
developing process is doomed.
Expert knowledge should be available, even if it is in the form of a consultant.
For the interpretation of environmental legislation someone with a sound legal
background is required. Developing training modules and awareness
programmes demands people with training skills but at the same time they need
to be competent on environmental matters and therefore the training
department should be trained in environmental issues.
Without a strong change agent at top management level there is no change that
the environment will receive priority over operational issues. Having someone
in middle management driving the process but with no authority or even input
in management meetings is futile. Therefore it would be recommended that the
overall responsibility and involvement must be vested in an individual at top
management level.
10.5 Conclusion
If an SABS ISO 14001 (1996) certified organisation was found to be in non-
compliance with an environmental regulation, the organisation will have
procedures in place to deal with the occurrence. Part of the SABS ISO 14001
(1996) requirements are that an organisation must declare its intent to comply
with regulations, to do so, and to be able to prove that they are in fact doing so.
The feeling are that the reaction on the part of the regulatory authorities might
be less severe in a case of non-compliance if an organisation has implemented
a sound integrated environmental management system, such as SABS ISO
14001 (1996).
SABS ISO 14001 (1996) allows an organisation to establish a set of managerial
and technical tools, required to provide products and services using less
energy, fewer materials, and with far less environmental repercussions. As
160
Gibbons (1995) said "Environment should not be an "add-on" matter but
should be viewed as integral to the process." He suggested that SABS ISO
14001 (1996) could be used to protect the environment and human health, to
re-invent government policy through the establishment of public-private
partnerships, to pursue regulatory reform and to promote the development and
use of innovative environmental technologies.
SABS ISO 14001 (1996) goes beyond mere compliance with environmental
legislation. It encourages a systematic examination of all an organisation's
activities, which might have an impact on the environment. It could yield
bottom-line benefits such as reduced waste and savings in consumption of
energy and materials. Developing countries, which obviously cannot afford to
waste their scarce resources, stand to benefit from wide-spread knowledge and
implementation of SABS ISO 14001 (1996).
Consider the fact that if the current generation does not rectify the mistakes
made by out forefathers and make a concerted effort to stop environmental
degradation and pollution there will not be an environment for our ancestors!
This should be enough for each of us o realise that it is essential to put in the
effort here and now! There is no replacement for the environment after it is
lost it is gone forever!
161
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http://www.up.ac.za/academeic/psycholioutput/a95differ.htm 25
May 2000.
Visser, (a) G.A., 1999: Easy Reference to Environmental Law. Lyttelton,
Bolwheki Environmental (Pty) Ltd.
Visser, (b) G.A., 2000: Introduction to Environmental Legislation. Lyttelton,
Bolwheki Environmental (Pty) Ltd.
Visser, (c) G.A., 2000: Benefits of implementing an SABS ISO 14001 (1996)
Environmental Management System. Lyttelton, Bolwheki
Environmental (Pty) Ltd.
Visser, (d) G.A., 2000: Environmental Law Training Manual. Lyttelton,
Bolwheki Environmental (Pty) Ltd.
Visser, (e) S., 1999: A Guideline to the Implementation of SABS ISO 14001
(1996) Environmental Management System. Samancor Work
Document. Krugersdorp.
Water Act, Act 54 of 1956,: Pretoria, Government Publishers
165
White Paper on Environmental Management Policy for South Africa,
1998: Government Notice 1096 in Government Gazette No
18894, 15 May 1998. Pretoria, Government Publishers.
Wegner, T., 1998: Applied Business Statistics — Methods and Applications.
Western Cape, Rustica Press.
wwwa http://i sodo c. i so . ch/livelink/1 ivelnk/3710907/ml . pdf. ISO Head
Quarters Web Page, Introduction to SABS ISO 14001 (1996).
08 February 2000.
wwwb http:/www.IS014001.ch/presse/financial.pdf. ISO in figures.
5 February 2000.
wwwc http://www.qrca/faq.htm QRCA, (1996): Frequently asked
Questions regarding Qualitative Research. 24 May 2000.
wwwd http://www.quality.co.uk ./eco/benefits.htm Quality Network
(1996): Benefits of Eco-Management Systems from the quality
network. 05 February 2000
wwwe http://www. guide starco. coin/qualitative-and-quantitative-
survey-research.html Guidestar Communications (1999):
Quantitative & Qualitative Research. 03 June 2000.
166
Appendix A
Table of Environmental Legislation
Abattoir Hygiene Act No. 121 of 1992
Advertising on Roads and Ribbons Development Act No. 21 of 1940
Agricultural Pests Act No. 36 of 1983
Atmospheric Pollution Prevention Act No. 45 of 1965
Aviation Act No. 74 of 1992
Cape nature and Environmental Conservation Ordinance No. 19 of 1974
Conservation of Agricultural Resources Act No. 43 of 1983
Constitution of the Republic of South Africa Act No. 108 of 1996
Development Facilitation Act No.67 of 1995
Eastern Transvaal Parks Board Act No. 6 of 1995
Environment Conservation Act No. 73 of 1989
Fencing Act No. 31 of 1963
Fertilisers, Farm Feeds, Agricultural Remedies and Stock Remedies Act No. 36
of 1947
Forest Act No. 122of 1984
Game Theft Act No. 105 of 1991
Hazardous Substances Act No. 15 of 1973
Health Act No. 63 of 1977
Kwazulu-Natal Nature Conservation Management Act No. 9 of 1997
Lake Areas Development Act No. 39 of 1975
Land Survey Act No. 8 of 1997
Minerals Act No. 50 of 1991
Mountain Catchment Areas Act No. 63 of 1970
Natal Nature Conservation Ordinance No. 15 of 1974
National Environmental Management Act No. 107 of 1998
National Forests Act No. 84 of 1998
National Monuments Act No. 28 of 1969
National Parks Act No. 57 of 1976
A-1
National Veld and Forest Fire Act No. 101 of 1998
National Water Act No. 36 of 1998
Nuclear Energy Act No. 131 of 1993
Occupational Health and Safety Act No. 85 of 1993
Orange Free State Nature Conservation Ordinance No. 8 of 1969
Physical planning Act No. 125 of 1991
Sea-shore Act No. 21 of 1935
State Land Disposal Act No. 48 of 1961
The South African National Roads Agency Limited and National Roads Act
No. 7 of 1998
Transvaal Nature Conservation Ordinance No. 12 of 1983
Water Act No. 54 of 1956
Water Services Act No. 108 of 1997
Western Cape Land Administration Act No. 6 of 1998
A-2
Appendix B
Responses to questionnaires sent via electronic mail to Environmental
Managers of the different Samancor Plants. Please note that the questionnaires
are the exact responses as received from the participants without any
alterations and as such the format between the individual responses and the
main body of the dissertation might differ..
1S014001 Questionnaire I would like my answers to be treated with confidentiality. Yes/ No
(Please delete the option not applicable)
Question 1
According to you what are the main components of SABS ISO 14001 (1996)?
Answer
Question 2
Why do you think the components you listed as your answer in question no 1
are the most important?
Answer
Question 3
Is there any link between management decision-making and SABS ISO 14001
(1996), and if so, what is the link?
Answer
Question 4
How could SABS ISO 14001 (1996) be used to ensure environmental legal
compliance in Samancor?
Answer
B-1
Question 5
Do you consider the implementation of an environmental management system
a necessity for Samancor? Please motivate your answer.
Answer
Question 6
According to you could any advantages and/or disadvantages be derived from
the implementation of SABS ISO 14001 (1996)? Please name and describe
them.
Answer
Question 7
What will the financial, social and legal impact of the implementation and
certification of SABS ISO 14001 (1996) be, both at Samancor Plants, and for
the parent company, Billiton?
Answer
Question 8
What steps should management take to ensure employee and community
involvement? Please provide typical examples.
Answer
Question 9
How important do you consider the assignment of environmental liability,
responsibility, authority and accountability at plant and corporate level?
Answer
Question 10
How would you assign liability, authority, accountability and responsibility in
your work environment?
Answer
B-2
Question 11
Do you consider the implementation of SABS ISO 14001 (1996), a guarantee
for environmental legal compliance?
Answer
B-3
1S014001 Questionnaire Response No 1
I would like my answers to be treated with confidentiality. No
Question 1
According to you what are the main components of SABS ISO 14001 (1996)?
Answer
A framework for the establishment of an environmental management system.
Question 2
Why do you think the components you listed as your answer in question no 1
are the most important?
Answer
Because SABS ISO 14001 (1996) is a management system, and not some form
of environmental master plan or environmental solution in itself.
Question 3
Is there any link between management decision-making and SABS ISO 14001
(1996), and if so, what is the link?
Answer
Yes. If management is genuinely committed to an environmentally acceptable
operation, SABS ISO 14001 (1996) will provide all the necessary indicators to
highlight problem areas where attention is required.
Question 4
How could SABS ISO 14001 (1996) be used to ensure environmental legal
compliance in Samancor?
Answer
Part of SABS ISO 14001 (1996) requires the identification (and updating) of
environmentally related legal requirements. If there is genuine commitment by
management, the required action will be initiated. If not, window dressing will
be applied to ensure that SABS ISO 14001 (1996) certification is maintained.
B-4
Question 5
Do you consider the implementation of an environmental management system
a necessity for Samancor? Please motivate your answer.
Answer
Yes. A proper system is in the first place necessary to ensure the maintenance
of an environmentally acceptable operation. An environmentally acceptable
operation is in turn necessary, firstly due to the company's social obligations,
and secondly, because the developing legislation will in any event force
compliance at some stage. The later this happens, the more costly it is going to
be.
Question 6
According to you could any advantages and/or disadvantages be derived from
the implementation of SABS ISO 14001 (1996)? Please name and describe
them.
Answer
I see no disadvantages. The main advantages are those discussed under
questions 4 and 5.
Question 7
What will the financial, social and legal impact of the implementation and
certification of SABS ISO 14001 (1996) be, both at Samancor Plants, and for
the parent company, Billiton?
Answer
Legal If the correct commitment exists, SABS ISO 14001 (1996) will
facilitate legal compliance.
Social Samancor can prove to the community that it is not polluting the
environment.
Financial Maintaining SABS ISO 14001 (1996) can go hand in hand with
maintaining ISO 9002, and requires one full time person - say D (lower) level.
The cost of environmental compliance is a legal and social requirement, and
B-5
should stand separate from maintaining an SABS ISO 14001 (1996) integrated
environmental management system.
Question 8
What steps should management take to ensure employee and community
involvement? Please provide typical examples.
Answer
Communication / aware making campaign (company newspaper, notice boards,
etc.)
Question 9
How important do you consider the assignment of environmental liability,
responsibility, authority and accountability at plant and corporate level?
Answer
It is essential and non-negotiable.
Question 10
How would you assign liability, authority, accountability and responsibility in
your work environment?
Answer
The overall accountability for maintaining the environmental management
system and for technical support in actual environmental matters should resort
with one department (e.g. SHEQ, Technical, or Services). In addition to this,
each departmental manager should be accountable for environmental
compliance and system maintenance in his / her own department.
Question 11
Do you consider the implementation of SABS ISO 14001 (1996), a guarantee
for environmental legal compliance?
Answer
No. You can still window dress to some extent. (This might change, as auditors
become more knowledgeable).
B-6
IS014001 Questionnaire Response No 2
I would like my answers to be treated with confidentiality. - No
Question 1
According to you what are the main components of SABS ISO 14001 (1996)?
Answer
Management Commitment
Identification of Environmental matters
Legal Compliance
Document control
Continual improvement
And the rest of the code.
The system used to cover this is
The compiling of an invoice of "environment unfriendly" substances,
processes, product, raw materials or other activity for each section
(department) thus identifying all the aspects for each area.
The risk rating of each aspect identified, classifying each aspect as
significant or not significant.
Compiling a detailed action plan to improve on the mitigating factors
associated with each aspect.
Managing these detailed plans.
Question 2
Why do you think the components you listed as your answer in question no 1
are the most important?
Answer
The management of environmental aspects and their impacts are what the ISO
code and environmental legislation is all about.
B-7
Question 3
Is there any link between management decision-making and SABS ISO 14001
(1996), and if so, what is the link?
Answer
The link for me is the 8 business (management) principles.
.4 Customer (environment) focused organisation
4:6 Leadership
.::. Involvement of People
,:. Process approach
,4> System approach to management
Continual improvement
Factual approach to decision making
.4. Mutually beneficial supplier (Interested and effected parties) relationships
Question 4
How could SABS ISO 14001 (1996) be used to ensure environmental legal
compliance in Samancor?
Answer
Through an effective document control system — receiving the legislation —
applying it after consultation with legal department and updating aspects.
Question 5
Do you consider the implementation of an environmental management system
a necessity for Samancor? Please motivate your answer.
Answer
Yes!
Out of the nature of our products and the emphasis on environmental
matters from various sources including our customers.
,4> If we do not implement sound systems for the environment as for safety,
health and quality we will lose our market if our competitors follow this
route.
Environment protection has become the new buzzword in the world.
B-8
Question 6
According to you could any advantages and / or disadvantages be derived from
the implementation of SABS ISO 14001 (1996)? Please name and describe
them.
Answer
Advantages.
Better conditions for the workers and people living around our factories
Complying with environmental legislation, constitution and international
conventions can be used as a sales tool.
Less waste — water, raw materials, etc (because programs are in place to
control the purchasing, control and disposal)
Better designing of facilities — more energy efficient.
Disadvantages:
Can be costly at the offset
More pressure on managing all the activities — scope becomes wider
Question 7
What will the financial, social and legal impact of the implementation and
certification of SABS ISO 14001 (1996) be, both at Samancor Plants, and for
the parent company, Billiton?
Answer
There is no side-stepping this issue legally we will have to comply and the
SABS ISO 14001 (1996) code is a method to ensure legal compliance.
I foresee that as for the ISO 9000 code customers will demand accreditation
before doing any business with us.
Environmental pressure group in the different areas will force us to
negotiate with them before entering into new processes etc — they are going
to become an integral part of our management strategy.
B-9
Question 8
What steps should management take to ensure employee and community
involvement? Please provide typical examples.
Answer
Education and Information to the workforce and community.
Environmental matters will have to be presented in a non-technical way for
them to understand.
Question 9
How important do you consider the assignment of environmental liability,
responsibility, authority and accountability at plant and corporate level?
Answer
Very important. As mentioned earlier the 8 business principles will force
us to apply control measures for the environment identical to that of
production.
Billiton and Samancor will have to be seen as companies with clear
policies, strong commitment and strategies on all levels - Transparency is a
must.
Question 10
How would you assign liability, authority, accountability and responsibility in
your work environment?
Answer
As for the appointments under the OHS Act — appointments will have to
include environmental responsibilities etc.
Question 11
Do you consider the implementation of SABS ISO 14001 (1996), a guarantee
for environmental legal compliance?
Answer
Yes — If top, middle management and supervisory staff are committed to use
this system to become more efficient in what we do.
B-10
No — If the code is seen as glamour, a nice to have item, that can be used to
impress people and within the company race to see who is first to be
accredited.
B-11
IS014001 Questionnaire Response No 3
I would like my answers to be treated with confidentiality. No
Question 1
According to you what are the main components of SABS ISO 14001 (1996)?
Answer
Depends on the defmition of "main"!
If, by "main" is meant important, all are equally important.
Question 2
Why do you think the components you listed as your answer in question no 1
are the most important?
Answer
All are equally essential to the running of a successful EMS.
Question 3
Is there any link between management decision-making and SABS ISO 14001
(1996), and if so, what is the link?
Answer
Yes. All management decisions require inputs from a number of disciplines.
These include the EMS.
Question 4
How could SABS ISO 14001 (1996) be used to ensure environmental legal
compliance in Samancor?
Answer
It couldn't! No EMS, including IS014001, can "ensure" legal compliance.
Question 5
Do you consider the implementation of an environmental management system
a necessity for Samancor? Please motivate your answer.
B-12
Answer
Yes because
.=i It gives confidence to customers, particularly overseas customers.
.=? It assists in making good business decisions.
,=. It assists in achieving legal compliance.
Question 6
According to you could any advantages and/or disadvantages be derived from
the implementation of SABS ISO 14001 (1996)? Please name and describe
them.
Answer
Advantages are as shown in Q5.
Disadvantage is the cost.
Question 7
What will the fmancial, social and legal impact of the implementation and
certification of SABS ISO 14001 (1996) be, both at Samancor Plants, and for
the parent company, Billiton?
Answer
Financial Increased cost.
Social Improved P.R. with local communities.
Legal Contribution to compliance.
Question 8
What steps should management take to ensure employee and community
involvement? Please provide typical examples.
Answer
This is dependent on the situation. E.g. for a plant situated in an
environmentally sensitive community (e.g. adjacent to a game park), a more
cautious approach should be used compared to that for a plant situated in an
industrial area.
B-13
Question 9
How important do you consider the assignment of environmental liability,
responsibility, authority and accountability at plant and corporate level?
Answer
It is vital to the success of an effective environmental management system.
Question 10
How would you assign liability, authority, accountability and responsibility in
your work environment?
Answer
By consultation, education and training and then documented appointment.
Question 11
Do you consider the implementation of SABS ISO 14001 (1996), a guarantee
for environmental legal compliance?
Answer
Absolutely not! It is possible to me et al.,1 the requirements of the SABS ISO
14001 (1996) standard on the day of the audit and have an illegal spill the next
day.
B-14
IS014001 Questionnaire Response No 4
I would like my answers to be treated with confidentiality. Yes
Question 1
According to you what are the main components of SABS ISO 14001 (1996)?
Answer
Management System
International Specification/Standard
Environment
Question 2
Why do you think the components you listed as your answer in question no 1
are the most important?
Answer
Environment.
Question 3
Is there any link between management decision-making and SABS ISO 14001
(1996), and if so, what is the link?
Answer
IS014001 provides a framework for management in which it may make
decisions.
It requires that certain decisions be recorded re environmental management.
0 It requires that action/effects of decisions are followed up and reviewed.
Question 4
How could SABS ISO 14001 (1996) be used to ensure environmental legal
compliance in Samancor?
Answer
Properly identifying all relevant legislation.
Instituting systems to ensure compliance (measurement/reporting)
B-15
Question 5
Do you consider the implementation of an environmental management system
a necessity for Samancor? Please motivate your answer.
Answer
Yes.
Shareholder requirement.
Keep track of legal requirements.
Complex area to monitor / evolve / grow by non-specialists.
Question 6
According to you could any advantages and/or disadvantages be derived from
the implementation of SABS ISO 14001 (1996)? Please name and describe
them.
Answer
Advantages
Positive publicity / community relations.
Some running cost savings.
Necessary for long term survival of company.
Disadvantages
Capital projects normally large and makes little direct positive impact on
bottom line.
Question 7
What will the financial, social and legal impact of the implementation and
certification of SABS ISO 14001 (1996) be, both at Samancor Plants, and for
the parent company, Billiton?
Answer
Samancor Plants
Brownie points.
Management will not be rapped on the knuckles at every board meeting.
B-16
Better control over the general housekeeping — audit system can be easily
extended to housekeeping. Good housekeeping is a prerequisite for
responsible environmental management.
..i=‘ Better complaint handling from community / authorities.
Identification of responsibilities and authorities of personnel. Identification
and control of objectives and targets with relationship to environmental
management.
Billiton
Need to comply with FTSE 100 company reporting standards — will be able
to report favourably that the environment is in fact being managed
Question 8
What steps should management take to ensure employee and community
involvement? Please provide typical examples.
Answer
Community involvement is not a pre-requisite for IS014001 certification.
New projects however need to go through an EIA procedure (law) that
needs public participation — which would involve some of the community.
Employee involvement, Awareness training, Induction training, Ad hoc
training, In task training, Formal training modules, Specialist training (i.e.
auditing, law, environmental engineering). Flag waving; for example with
the celebration of certification, celebration of Arbor Day, Water Week,
World environment day.
Question 9
How important do you consider the assignment of environmental liability,
responsibility, authority and accountability at plant and corporate level?
Answer
Yes. Line function.
B-17
Question 10
How would you assign liability, authority, accountability and responsibility in
your work environment?
Answer
In writing.
Question 11
Do you consider the implementation of SABS ISO 14001 (1996), a guarantee
for environmental legal compliance?
Answer
No.
B-18
1S014001 Questionnaire Response No 5
I would like my answers to be treated with confidentiality. No
Question 1
According to you what are the main components of SABS ISO 14001 (1996)?
Answer
Commitment and Policy
..i= Planning
Implementation
Measurement and Evaluation
.* Review and Improvement
Question 2
Why do you think the components you listed as your answer in question no 1
are the most important?
Answer
It forms the foundation of the SABS ISO 14001 (1996) environmental
management system.
Question 3
Is there any link between management decision-making and SABS ISO 14001
(1996), and if so, what is the link?
Answer
Each of the components mentioned in question 1 requires management
involvement and decision making.
Question 4
How could SABS ISO 14001 (1996) be used to ensure environmental legal
compliance in Samancor?
B-19
Answer
One of the elements of the SABS ISO 14001 (1996) code is "legal and other
requirements". It is a requirement that you have to adhere to environmental
legislation if you want to be SABS ISO 14001 (1996) listed. Accreditation
does not require full compliance but at least a well-developed action plan
towards compliance and adherence to the principle of continuous improvement
Question 5
Do you consider the implementation of an environmental management system
a necessity for Samancor? Please motivate your answer.
Answer
It provides a structured approach towards environmental management and
gives the customer assurance of responsible actions in terms of environmental
protection during all phases of the production process.
Question 6
According to you could any advantages and/or disadvantages be derived from
the implementation of SABS ISO 14001 (1996)? Please name and describe
them.
Answer
Structured approach towards environmental management.
Ensures a focus on legal compliance.
Adherence to the principle of continuous improvement.
Auditing by an independent third party.
Question 7
What will the financial, social and legal impact of the implementation and
certification of SABS ISO 14001 (1996) be, both at Samancor Plants, and for
the parent company, Billiton?
Answer
Financial Minimal annual fees for audits
Relatively high audit fee every 3rd year (tri-annual audit)
B-20
Relatively high cost to adhere to environmental legislation.
Social
Involvement of IAP's can impact negatively if approach is not responsible
in terms of pollution.
People that would normally not have a say in the business will have an
opportunity to express an opinion and demand to a certain extend
Legal
Certification requires a process towards adherence to environmental
legislation.
Question 8
What steps should management take to ensure employee and community
involvement? Please provide typical examples.
Answer
Interested and affected Party meetings
News letters containing information on environmental projects and contact
numbers of relevant personnel to allow for a process of communication and
consultation.
Question 9
How important do you consider the assignment of environmental liability,
responsibility, authority and accountability at plant and corporate level?
Answer
It is a requirement to stay in business and should be viewed with the necessary
importance.
Question 10
How would you assign liability, authority, accountability and responsibility in
your work environment?
Answer
By making a person exclusively accountable to manage and co-ordinate the
process of responsible environmental management.
B-21
Question 11
Do you consider the implementation of SABS ISO 14001 (1996), a guarantee
for environmental legal compliance?
Answer
Adherence to the requirements of the code as well as legal compliance audits
conducted by specialists contracted by SABS provides a guarantee for
environmental compliance.
B-22
1S014001 Questionnaire Response No 6
I would like my answers to be treated with confidentiality. Yes
Question 1
According to you what are the main components of SABS ISO 14001 (1996)?
Answer
Policy, Aspect & impacts, Targets & objectives — environmental management
plan training, legal, monitoring & measurement, management review, continual
improvement, (all headline topics)
Question 2
Why do you think the components you listed as your answer in question no 1
are the most important?
Answer
Headings of sections. System cannot function effectively without any one of
them.
Question 3
Is there any link between management decision-making and SABS ISO 14001
(1996), and if so, what is the link?
Answer
Management Review
Question 4
How could SABS ISO 14001 (1996) be used to ensure environmental legal
compliance in Samancor?
Answer
By means of legislation identification and building it into the aspect identification section
B-23
Question 5
Do you consider the implementation of an environmental management system
a necessity for Samancor? Please motivate your answer.
Anwer
Yes. Compliance to Billiton. Public relations.
Question 6
According to you could any advantages and/or disadvantages be derived from
the implementation of SABS ISO 14001 (1996)? Please name and describe
them.
Answer
Advantages
Better environmental management
System to use for legal compliance
Public image
Risk measurement and proof of environmental compliance
Disadvantages
Cost of projects
Personnel
Question 7
What will the financial, social and legal impact of the implementation and
certification of SABS ISO 14001 (1996) be, both at Samancor Plants, and for
the parent company, Billiton?
Answer
Samancor
Cost at first — gain in long term (rehabilitation. cheaper, etc.)
.4) Can have economic gain from recycling, etc.
Better social acceptance.
Can use system to ensure legal compliance to a higher standard.
Billiton
Same as above.
B-24
Better international acceptance.
Question 8
What steps should management take to ensure employee and community
involvement? Please provide typical examples.
Answer
Employees — training from very basic.
Community — policy and annual public report. Publications, etc.
Question 9
How important do you consider the assignment of environmental liability,
responsibility, authority and accountability at plant and corporate level?
Answer
If responsibility is not assigned nothing will happen concerning environment
Question 10
How would you assign liability, authority, accountability and responsibility in
your work environment?
Answer
Procedures, appointments, job descriptions...
Question 11
Do you consider the implementation of SABS ISO 14001 (1996), a guarantee
for environmental legal compliance?
Answer
No
B-25
IS014001 Questionnaire Response No 7
I would like my answers to be treated with confidentiality. No
Question 1
According to you what are the main components of SABS ISO 14001 (1996)?
Answer
A system to manage environmental issues
Question 2
Why do you think the components you listed as your answer in question no 1
are the most important?
Answer
Managing the environmental issues and not the system
Question 3
Is there any link between management decision-making and SABS ISO 14001
(1996), and if so, what is the link?
Answer
Yes. Management decisions making is ruled by the higher order management
decision captured in SABS ISO 14001 (1996)
Question 4
How could SABS ISO 14001 (1996) be used to ensure environmental legal
compliance in Samancor?
Answer
The system designed in SABS ISO 14001 (1996) will at all times be subject to
legal compliance
Question 5
Do you consider the implementation of an environmental management system
a necessity for Samancor? Please motivate your answer.
B-26
Answer
Yes. Environmental management is one of the pre-requisites for sustainable
business operation
Question 6
According to you could any advantages and/or disadvantages be derived from
the implementation of SABS ISO 14001 (1996)? Please name and describe
them.
Answer
Advantages
.=; Necessary for long term survival of company
' .Positive publicity
Disadvantages
' Capital outlay normally large.
Makes little direct positive impact on bottom line.
Question 7
What will the financial, social and legal impact of the implementation and
certification of SABS ISO 14001 (1996) be, both at Samancor Plants, and for
the parent company, Billiton?
Answer
No long term financial impact. With or without SABS ISO 14001 (1996)
operations has to be managed in an environmental responsible way
Question 8
What steps should management take to ensure employee and community
involvement? Please provide typical examples.
Answer
Normal process of consultation and participative management
B-27
Question 9
How important do you consider the assignment of environmental liability,
responsibility, authority and accountability at plant and corporate level?
Answer
In view of sustainable operation very important
Question 10
How would you assign liability, authority, accountability and responsibility in
your work environment?
Answer
Through formal appointments
Question 11
Do you consider the implementation of SABS ISO 14001 (1996), a guarantee
for environmental legal compliance?
Answer
Short term no. Long term yes.
B-28
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