Description
This research indicates that environmental performance at facilities interplays with a number of organizational and social factors
Understanding Organizational Decision Making Related to Environmental Performance
Final report : June 20, 2014
Presented to:
Government of Alberta
Environment and Sustainable Resource Development
Presented by:
Advanis Inc.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
2
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
3
Executive summary
Designed to understand “What factors influence environmental performances among regulated facilities
in Alberta?” this research relied on a sequence of phases :
? an initial documentation and literature review;
? a first series of interviews with managers at facilities, to identify explicit factors;
? a quantitative validation of explicit factors by managers at facilities (N=264);
? a second series of interviews to precise the factors’ implicit dimensions;
? a quantitative validation of managers’ perceptions at facilities (N=130).
Our results rank regulation as the most important driver of environmental improvement at facilities and
provide a quantitative measure of its relative importance compared with the other significant factors
described by responders of our survey.
Our results also show there may be potential beneficial actions complementary to regulation, and open
avenues of research for environmental performance improvement and for policy design.
Indicators of environmental
performance
FACTOR
Investor pressure
(Q10A-Q10B-Q10C)
FACTOR
Management
value and
involvement
(Q10D-Q10E-Q10F-
Q10G-Q10H)
FACTOR
Impact on
profitability
(Q17A-Q17B-Q17C-
Q17D-Q17E-Q17F-Q17H)
FACTOR
Corporate image
(Q10J-Q12I-Q10I-Q12A-
Q12B-Q12C-Q12F)
Facilities practices
(Q19A-Q19B-Q19C-Q19D-Q19E-Q19F-
Q19G)
Facilities standards
(Q21A-Q21B-Q21C-Q21D)
FACTOR
The regulation
(Q12D-Q12E-Q12H)
FACTOR
Competitors
improvements
(Q10K-Q12G)
FACTOR
Difficulties complying with regulation
(Q17G-Q17I)
FACTOR
Barriers to
improvement
(impact on profitability and
difficulties complying with
regulation )
Perception of compliance
(Q23H)
-
+
+
+
-
+
+
?
?
Relations between factors that influences environmental performance and the
indicators of environmental performance
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
4
This research indicates that environmental performance at facilities interplays with a number of
organizational and social factors. Innovative mechanisms for policy making can already be conceived by
taking into account explicit and implicit factors for environmental improvement.
Thus, Understanding Organizational Decision Making Related to Environmental Performance will allow
Alberta ESRD to use new knowledge and understanding that can support options that seek higher levels
of performance, as part of the focused effort of the Government of Alberta to move forward in
establishing priority initiatives pertinent to the environment.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
5
Table of contents
Introduction............................................................................................................................................ 6
Research outline .................................................................................................................................. 7
Phase 1 – Document review.................................................................................................................. 10
1.1 Factors that influence environmental performance at facilities ................................................ 10
1.2 Literature review...................................................................................................................... 10
1.3 Factors for qualitative data collection....................................................................................... 16
Phase 2 – Semi-structured interviews ................................................................................................... 20
2.1 Phase 2 Research in Context..................................................................................................... 20
2.2 Phase 2 research results........................................................................................................... 21
Phase 3 – Online Survey........................................................................................................................ 25
3.1 Introduction ............................................................................................................................. 25
3.2 Data collection methodology and questionnaire ...................................................................... 25
3.3 Building a model of indicators of environmental performance and factors ............................... 26
3.4 Results ..................................................................................................................................... 30
3.5 Results and development of the final statistical model of analysis ............................................ 35
3.6 Summary of Key Findings ......................................................................................................... 41
Phase 4 – In-depth Qualitative I nterviews ............................................................................................ 42
4.1 Interview grid design (Phase 4)................................................................................................. 42
4.2 Results ..................................................................................................................................... 43
Phase 5 – Validation.............................................................................................................................. 49
5.1 Links with scientific literature................................................................................................... 49
5.2 Questionnaire and Data collection ........................................................................................... 50
5.3 Results ..................................................................................................................................... 51
Conclusion ............................................................................................................................................ 53
Bibliography.......................................................................................................................................... 55
Appendices ........................................................................................................................................... 58
Appendix 1: Recruiting and Interview grids of Phase 2 ....................................................................... 58
Appendix 2: Questionnaire Phase 3.................................................................................................... 61
Appendix 3: Interview grids of Phase 4............................................................................................... 86
Appendix 4: Questionnaire Phase 5.................................................................................................... 88
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
6
Introduction
The Government of Alberta’s strategic decisions, meant to position Alberta for the future, have led to a
focused effort to move forward in establishing priority initiatives for the environment. An integrated
resource management system is being developed to achieve the environmental, economic, and social
outcomes Albertans expect from resource development and to maintain the social licence to develop
resources.
The implementation of the Cumulative Effects Management System (CEMS) will allow the Ministry of
Environment and Sustainable Resource (ESRD) to account for the combined effects of past, present, and
foreseeable human activities and to manage activities that impact the environment, economy, and
society. It reflects the Government of Alberta’s move toward a more integrated approach to managing
natural resources in the province. It implies that outcomes are meant to be measured and evaluated
continuously and that management actions can be applied throughout the system
1
. Locally, the
development and implementation of regional plans, as identified by the Land-use Framework, will
enable the management of the province’s land and natural resources to achieve Alberta’s long-term
economic, environmental, and social goals.
In order for ESRD to develop new knowledge and understanding that can support options that seek
higher levels of performance and to achieve the goals of continuous improvement and environmental
excellence within an enhanced regulatory system, it is necessary to understand which factors are
influencing environmental performance beyond compliance decisions in the Alberta context and the
degree to which they enable or constrain environmental performance.
Understanding Organizational Decision Making Related to Environmental Performance aims at better
understanding the various factors that influence environmental performance decision making—relevant
to regulated facilities in Alberta—and the variation in environmental performance objectives.
This mixed-method research aims to identify the explicit (clearly expressed) and implicit (implied but not
directly expressed) factors influencing environmental performance beyond compliance at a facility level
with the aim of supporting future policy development and program design on environmental
performance and excellence. In a sequence of five research phases occuring from November 2013 to
June 2014, the research project addressed the following question:
“What factors influence environmental per formances among regulated facilities in Alberta?”
1
Alberta's Environmental Protection a nd Enhancement Act (EPEA) and a ccompanying regulations set out in detail which activities require
approvals and the process for obtaining them.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
7
Research outline
Phase 1 of the research started in November 2013. This phase consisted of a review of the following:
? Academic literature;
? Existing documents developed by ESRD to guide this research (i.e. preliminary scoping document,
literature review, and conceptual framework; results from internal focus groups);
? Other relevant information regarding the regulatory framework in Alberta . The focus was on the
establishment of the research context:
? Developing an understanding of the regulatory framework;
? Defining criteria of performance beyond compliance (facility level);
? Determining factors influencing environmental practices and processes;
? Determining relevant measures for each explicit factor influencing compliance or performance
beyond compliance.
This helped develop an interview grid for the following phase of semi -structured interviews.
Phase 2 of the research consisted of a series of preliminary semi -structured qualitative interviews to
explore the variations in practices and processes. These interviews were conducted with managers at
facilities identified in the ESRD sample.
The interviews aim to validate the relevance of explicit factors within the Alberta context and refine
explicit factors with emergent data in order to account for variations of practices and processes
regarding compliance or performance beyond compliance.The results helped formulate questions
intended to achieve the following objectives :
? Detail the profile of facilities taking part in the research;
? Measure each identified factor;
? Measure indicators of environmental performance beyond compliance.
Phase 3 included a quantitative description (web survey) of actual environmental practices and
processes for the population under study
2
and the explicit factors contributing to those practices and
processes at industrial facilities. The phase included the following:
? Telephone invitation;
? Web survey;
? Telephone follow up of non-responders.
The survey results helped establish the following:
? A description of the organization’s profile (facilities’ main characteristics);
? The data to analyse the influence of explicit factors on the indicators of environmental performance
beyond compliance;
2
The population of approximat ely 680 facilit ies generated answers from 264 participat ing respondents at facilit y l evel . The
detai l of the s ampl e and results is present ed in sect ion 3.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
8
? The indicator data to support the identification/qualification of environmental performance beyond
compliance.
Phase 4 explored in depth the implicit factors influencing environmental performance decisions, as
described by responders of the Phase 3 survey. Participants were contacted as a follow-up of semi-
structured interviews. Qualitative data was collected and analysed to investigate how and why those
factors influenced environmental performance beyond compliance. This phase included the following:
? In-depth interviews;
? Identification ofthe implicit factors influencing environmental performance beyond compliance;
? Understanding of the dynamic interplay of explicit and implicit factors contributing to decision
making regarding environmental performance beyond compliance;
? Identification of factors to explore further in Phase 5.
Phase 5 confirmed explicit and implicit factors that emerged from the preceding phases, with a short
follow-up web survey
3
that was circulated to facility representatives who had participated in the initial
quantitative survey. Respondents were presented with the factors identified in Phase 3. This final phase
also included the following:
? A final qualitative validation comparing interplay of identified factors with existing theoretical
models;
? A presentation of the research findings.
Advani s Research Team:
Nicolas Tout ant: Project manager
Thomas Foulquier: Methodology and qualitative research expert
Adriana Bernardino: Quantitative expert
Diane Holland: Research manager
Mélanie Drisdelle: Programmer and analyst
Johann Walter: Copy editor
3
Note that 130 respresentatives of facil ities responded out of 221.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
9
Research Outline
Question: “What factors influence environmental performances among regulated
facilities in Alberta?”
Setting Research
Context
Exploratory
Analysis
Quantitative
Model
Validation
Final
Validation
Model
Fine-
Tuning
Document and
literature review
Identif y f actors that
could potentially
inf luencebehavior
3 weeks 3 weeks 3 months 1 month 1 month
Probingf actors
identif ied in stage 1
and identif ying new
f actors
Theoretical model to
betested through a
quantitative approach
Validation of theoretical
model through
quantitative dataanalysis
Validated model and
additional questions f or
clarif ication
In- depth
investigation of main
f actors
Enriched and dynamic
understandingof
most important
f actors
Validation of new
dimensions of
interplaying f actors
Factors validated and
linked to scientif ic
literature
Approach
Outcome
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
10
Phase 1 – Document review
1.1 Factors that influence environmental performance at facilities
In order for ESRD to develop new knowledge that can support options to achieve higher levels of
performance and to reach the goals of continuous improvement and environmental excellence within
an enhanced regulatory system, it was necessary to understand which factors were influencing
environmental performance decisions in the Alberta context and the degree to which they enable d or
constrained environmental performance. This will help improve a regulatory system that responds to
realities that drive environmental performance.
To better understand the various factors that influence environmental performance decision making at
regulated facilities and the variation in environmental performance behaviours that exist, we first
established the research context by reviewing the existing documents produced by the ESRD Project
Team
4
. When distinguishing between “compliance” and “performance,” (performance beyond
compliance) the research team considered that performance should mean that which is above minimum
standards (compliance).
Secondly, we reviewed literature to identify some of the explicit and implicit factors influencing
environmental performance beyond compliance at a facility level. Explicit factors, for instance, may
include the size of the organization and can be described quantitatively, while values held by managers
are likely to be implied but not directly expressed (implicit factors, to be described in the qualitative
phase of research).
In order to design the interview grid used for the following phase of semi-structured interviews—with
relevant indicators for each explicit factor influencing compliance or performance beyond compliance—
we expanded the information provided by ESRD
5
with a review of recent academic literature on the
subject matter.
1.2 Literature review
In examining what motivates or influences environmental performance, the academic literature
identified a range of external and internal factors that may interact to varying degrees to shape
environmental processes and outcomes of a firm or facility.
We studied the Literature Review and Conceptual Framework provided by ESRD, the factors identified
through ESRD Internal Focus Group Sessions, and additional relevant literature. This helped identify
external and internal factors that play a role in influencing environmental performance at the facility
4
i.e. the Land-Use Framework and the Cumulative Effects Management System, scopi ng document, including the research i ntent, proj ect scope,
data consi derations, considerations for the research methodology, which were provided at the beginning of the project. We als o reviewed a
number of internal documents later provided by ESRD, includi ng the internal ESRD focus group sessions summary.
5
Literature Review and Conceptual Framework, and the Internal ESRD Focus Group Sessi ons Summary.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
11
level. Finally, we integrated our findings from the literature review into the framework proposed by the
Oregon Business Decisions for Environmental Performance instrument (Wu, 2009).
1.2.1 Factors appearing in the scientific lit erature
The Standard Economic Theory characterizes organizations as profit-driven rational actors. This
predominant belief is a foundational argument for regulatory deterrence (Khanna 2001; Gunningham et
al. 2005). According to this view, regulators prosecute violators for non-compliance and remind all
regulated parties that these violations come at a high cost .
However, research indicates that other motivating factors may be at play. For instance, as firms go
beyond compliance in their environmental performance (Wu 2009), their behavior challenges Standard
Economic Theory. The relative frequency with which firms have chosen to do so has led to research into
what drives firms to perform beyond regulatory expectations.
To better understand the factors that may influence the environmental performances of facilities, our
research approaches the scientific literature with a broader view of organization. Organizational
outcomes and decision making have indeed long puzzled organization researchers, as these questions
find their roots in the great debates of social science and humanities .
In a landmark contribution to organizational science, Allison's Essenc e of Decision (1971) considered
three levels of analysis (“Rational Actor” Model, “Organizational Process” Model, and “Governmental
Politics” Model) in his attempt to understand the factors at play in a complex decision-making process
and outcome.
The interaction between corporate environment, cultural factors, and managerial sensemaking to
explain the Challenger Launch Decision was investigated by Vaughan (1996). Her work also gives
evidence of the need to take into account in organizational analysis, beyond organizational
characteristics, and existing factors at individual and corporate culture levels. Vaughan’s approach
6
is
especially useful to understand situations resulting from decisions retrospectively appearing as negative
organizational outcomes. Such decisions are linked to a decision-making process she labels as
“organizational deviance.”
Taking an even closer look at the decision-making process and experience, Tsoukas and Chia (2002)
propose to consider the organization as emergent, constantly recreated in every situation by its actors.
6
“When re gulatory failure occurs in the monitoring of an organi zation that deals in high-risk technology, the resulting accident may be thought
of as an organizational-technical system accide nt: a potentially avoidable technical system acci dent resulting from the failure of the technical
components of the product, the organization responsible for its production and use, and the regulatory organizations designe d to oversee the
entire operation. The failures of the producer and regulatory organizations are failures of foresight, arising from organi zat ional patterns that
block proble m identification and correction in the pre-accident incubation period. Such an accide nt cannot be explai ned by the failure of the
technical system alone. The organization malfunctions, failing to correct a correctable technical proble m. T he regul atory organization charge d
with surveillance of the technical product and the organization' s per formance fails to resolve the problems in both. The result is an
organizational-te chni cal system acci dent, perhaps of catastrophic pr oportion. ” (Vaughan, 1990)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
12
In light of these contributions, we pursued a pragmatic approach to the research question: “What
factors influence environmental performances among regulated facilities in Alberta?”
In other words, how an organization ranks environmental issues and the factors that influence
organizational behavior shape its environmental management style. At the same time, practically, it is
members of a firm or facility that will interpret external pressures, frame a problem, make decisions,
and implement solutions.
We present here a series of recent reviews and case studies that list factors playing a role in
environmental decision making regarding organizational compliance and performance beyond
compliance. The outcomes are observed at the facility level.
A review by González-Benito and González-Benito (2010) of the determinant factors of stakeholder
environmental pressure as perceived by industrial companies shows that company features ( e.g. size,
internationalization, closeness to consumers in the value chain, managerial attitude and motivations,
and strategic attitude) have an impact on the perception of stakeholder environmental pressure. Also,
primary (e.g. market and regulator) and secondary (e.g. media, NGOs) stakeholders, as well as external
factors (e.g. geographical location, industrial sector) play a role.
Gray and Shimshack (2011) review the empirical evidence on the impacts of environmental monitoring
and enforcement on subsequent pollution discharges and compliance behavior. They find
environmental monitoring and enforcement activities generate “substantial speci?c deterrence” —that
is, targeted facilities increase compliance and reduce emissions for several periods following regulator
actions. Also, environmental monitoring and enforcement generates “substantial general deterrence”—
monitoring and enforcement activity spill over to increase compliance and reduce emissions at other
facilities in the regulatory jurisdiction. Thirdly, monitoring and enforcement not only improve
compliance but also encourage greater pollution reductions at plants already in compliance.
Walls et al (2011) apply an inductive approach to develop a measure for environmental strategy and
identify six main capabilities of firms to build such a strategy. Access to two types of networks matters
for corporate environmental strategy, including supply chain network, reflecting the company’s
engagement with suppliers and buyers, and other stakeholder networks, such as the association with
governments, NGOs, industry associations, communities, employees, socially responsible investors, and
voluntary programs. A firm’s history of having an environmental strategy makes it more likely to
consider the environmental impact of new strategies, products, and processes.
Endowments, seen as a combination of the amount of money a firm invests in environmental research
and development and in supporting structures such as an environmental management system or an ISO-
14001-certified environmental process, also play a part in environmental strategy. Visionary leadership
can be measured in terms of the length of the environmental vision (i.e. short or long term goals have
been set) and the depth of the vision across the organization (i.e. global or not). The environmental skills
of top management are assessed by whether the environmental manager is on the executive team and
by the reporting level of the environmental manager. Finally, human resources skills for an
environmental strategy, can be measured if the strategy includes a formal environmental training
program and environmental reporting of the organization.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
13
Holstein and Gren (2013) analyze violations of environmental regulations in Sweden. As economic
motives, environmental attitudes, and social capital factors are intertwined, traditional enforcement
instruments (e.g. monitoring and inspecting firms) are found to deter violation in all firms in all
categories. However, larger firms seem to be more responsive to environmental attitudes and have an
abundance of social capital than smaller ones.
Finger (2011), analyzing data from 2,963 plants owned by 1,867 firms , finds that firms belonging and
participating in the self-regulated Corporate Social Responsibility initiative, whose members commit to
adhere to codes of conduct, show a reduced number of accidents. Frondel et al (2008), analyzing
empirical evidence from Germany, show that innovation behavior seems to be correlated to the
stringency of environmental policy. Environmental innovation activities seem not to be associated with
environmental management systems implementation, nor any other single policy instrument.
A case study by Gunningham (2009) investigates in depth the limits of management-based regulation
and sheds light on a number of factors at the individual level that can influence aggregated behavior at
facility and firm levels. Economic factors are classically identified, including cost of safety meas ures to
workers and to their company (work load, time, etc.).
Interestingly, geographic isolation and facility operations that are distanced from management might
seem to lead to operational autonomy of workers and derogative behaviour of lower management.
Also, there are indications that low turnover of workers and high turnover of management at isolated
facilities might lead to derogative behavior.
On the other hand, safety managers’ technical and management abilities, demonstrated dedication to
safety by management, and attention given by management to workers concerns when expressed
appear to be key drivers to compliance. Also, cultural dimensions play a role at each facility. Past
incidents at facilities, depending whether they were detrimental to t he company (e.g. resulted in
financial losses) or the workforce (e.g. casualties), are framed and interpreted differently by workforce
and management (resulting in a social struggle), which will have a complex effect on compliance.
Finally, workers’ cultural factors are expressed, with a perceived irrelevance to work of safety measures,
a lack of consideration by workers for control tools symbolically estranged/foreign to their daily
activities (paper world vs practice), and a perception of social vulnera bility that might lead to the
attribution of value to a behavior of gaming that symbolic system (derogation).
In a meta-study analysis of a pool of 23 studies connecting environmental performance to
environmental management systems, Nawrocka and Parker (2009) detail how the de?nition of
performance varied across studies, as quantitative methods looked at emissions while qualitative were
more directed towards general perceptions of the issues that were of importance to a company. It
seems the effects of EMS (Environmental management systems) are not general but dependent on
other factors, such as the management style and goals of the particular company, its operating
environment, culture, and stakeholders.
Delmas and Toffel (2011) also consider how firms adopt heterogeneous sets of environmental
management practices despite facing common institutional pressures, because organizational
characteristics lead managers to interpret these pressures differently.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
14
In a study of the manufacturing sector in six countries (including Canada and the USA), Darnall et al.
(2010) show the relationship between stakeholder pressures and environmental strategy tends to vary
with firm size.
While there is a positive relationship between stakeholder pressures and the adoption of proactive
environmental practices, larger ?rms undertake more environmental practices than do smaller ?rms,
but smaller firms appear more responsive when faced with pressures from value chain, internal, and
regulatory stakeholders. A summary of the factors that play a role in environmental decision making
regarding environmental compliance and performance beyond compliance is provided in the following
tables.
Table 1
Relationship between the Firm and the Facility
Relevant factors at the f i rm and faci li ty levels i nclude the foll owi ng:
o Number of faci lities per f irm (Darnell 2009), f irm’s organi zati onal structure.
o In thei r model of i nstitutional pressures moderated by parent company and plant characteristics, Del mas
and Toffel ( 2004) i dentify factors at f irm and facil ity levels:
? Firm size, competitive posi ti on, level of international ization.
? Plant size, sources of inf ormation on envi ronmental management practi ces ( industry
associati ons. etc.), histori cal envi ronmental perf ormance at facil ity (regulatory compliance,
pol luti on levels relative to neighbors and competitors).
External pressures influencing environmental performance decisions at firm and facility levels come
from government and regulators, stakeholders, investors, competitors, consumers, and the public.
Table 2
External Factors that Influence Environmental Performance
1. Government / Regulatory Pressure
Government and regulatory pressure has an obvious role in influencing envi ronmental performance at or bel ow
compliance levels.
? Government policies and regulations, frequent i nspections, and compliance action (Henriques
and Sadorsky, 1996; Gunningham et al, 2005).
? Prosecuti on of seri ous v iolators (Thornton et al, 2005; Wu 2009; Delmas and Tof fel, 2010).
? Government education and extensi on programs or investments i n research and development
(Delmas and Toffel 2004).
2. Public / Community Pressure
Local communities, envi ronmental non-government organizations, and the media may al l exert pressure on a fi rm
to adopt new environmental performance practi ces and move beyond compliance.
? Regulatory pressure through citizen lawsuits or poli ti cal action (Gunningham et al, 2004; Delmas
and Toffel 2004).
? Levels in trust and shared val ues for envi ronmental protecti on (Sharma and Vredenburg 1998).
? Posi tive i nteracti ons wi th the publi c and local community (Gunni ngham 2004; Sharma and
Vredenburg 1997; Henri ques and Sardorsky 1998).
? Firm in a resource industry or with a history of publi c pressure ( Gunningham et al, 2005).
? Characteristics of the l ocal communi ty (e.g. population density, educati on, soci o-economi c
condi ti ons, and poli tical i nvolvement) (Delmas and Toff el 2004).
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
15
3. Shareholder / I nvestor Pressure
Investors and sharehol ders can be highly inf luential i n determi ni ng the envi ronmental perf ormance of a f irm,
though the literature offers opposing v iews on this.
? Publicly traded compani es (Sharma and Vredenburg, 1998; Wu, 2009; Hendri ques and Sadorsky,
1996, Delmas and Toffel, 2010).
? Stock market perf ormance ( Henri and Journeault 2007).
? Adopti on of highly vi sible envi ronmental practi ces ( Khanna and Speir 2007).
4. Customer / Consumer Pressure
The green consumer theory postulates that a fi rm’s envi ronmental decisi ons are related to customer and
consumer pressures.
? Consumers wi ll ing to pay more f or green products and services (Khanna 2001; Wu 2009).
? Economic sector may have infl uence over perf ormance decisi ons ( Delmas and Toff el, 2004;
Henri ques and Sadorsky, 1996).
5. Competitor / Industry Pressure
Competitive or i ndustry pressure refers to pressures occurri ng across i ndustries and/or wi thin a specif ic industrial
sector.
? Participation in trade associations ( Gunningham et al, 2005).
? Firms in competi tive markets (Darnal l 2009; Del mas and Toffel 2010).
? Firms seeki ng to diff erentiate themselves i n their sector (Khanna 2001; Delmas and Toffel 2004).
? Competitive pressure may encourage v isible forms of greenness ( Khanna and Spei r, 2007).
External pressures alone do not account for the variation amongst firms who face similar external
pressures. Coglianese and Nash (2006) assert that the variance can be accounted for, in part, in how
internal factors influence the interpretation and response to external pressures.
Table 3
Internal Factors
1. Historical environmental performance, competitiveness of firm, and the organizational structure of the
facility, (Delmas, 2004; Coglianese and Nash, 2006; Howar d- Grenville et al, 2008).
2. Firm and facility size: “total sales”, number of employees (Henri and Jour neault 2008).
3. Ownership
? The nature of fi rm ownershi p can be a factor in envi ronmental performance. Impact on the
disclosure of environmental performance i nformati on (Henri and Journeault 2008).
? Budgets for envi ronmental R&D, qual ity management systems ( Darnall 2009).
4. Organizational Character istics
Organizati onal characteristics are factors involved i n determining the perception of external pressures, wi th
internal factors playi ng a stronger role i n the behavi or of large f irms than i n small - or medium-sized enterprises.
(Howard-Grenvil le et al, 2008; Cogl ianese and Nash 2006; Gunni ngham et al, 2004; Delmas and Toff el 2004).
5. Functional Departments
Functional departments withi n a firm may impact facil ity- level envi ronmental performance (Delmas and Toffel,
2008) and i ntervene i n the interpretati on of external pressures f rom non-market constituents.
6. Industry Reputation and Competitiveness
The nature of the i ndustry and its reputati on can i mpact the expectati ons and the abil ity of a firm to demonstrate
environmental performance (Del mas and Toffe l 2010). The nature and extent to which fi rms implement speci fic
environmental policies and adopt environmental acti ons may be dependent on the industry characteristics
(Ramus and Montiel 2005; Khanna and Spei r 2007).
7. Managerial Attitudes (Coglianese, 2001; Khanna and Speir, 2007; Wu, 2009) and actions shape corporate
envir onmental performance.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
16
1.3 Factors f or qualitative data collection
1.3.1 Factors to test in the first qualitative phase
We elaborated on the framework proposed by the Oregon Business Decisions for Environmental
Performance instrument (Wu, 2009) to capture the factors and indicators, identified in the literature.
The resulting table (Table 4) was used to support the subsequent phases of this research
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
17
Table 4: “What factors influence environmental performances among regulated facilities in Alberta?”
Interview
themes
Factors in literature (to be validated byinterviewees)
? - compliance
? - performance
ESRD Focus groups insight Interviewgrid questions Indicators
(Indicators)
Wu
(2009)
Section I.
Facility
Environmental
Management
? level of concern for environmentat facility
? awareness of government education programs (Delmas
and Toffel 2004)
? attention given bymanagement to workers concern
(Gunningham, 2009)
To whatextent are environmental issues aconsiderationin dayto day
business decisions at yourfacility?
Are you aware of government trainingprograms in environment?
Is itthesamefortopmanagement, middlemanagement and operations?
Knowledgeof government education
programs (y/n)
Detection/Collection of employees
concerns : process implemented (y/n)
? external factors influencing environmental
management (Customers, public, environmentalinterest
groups)
? abundanceof social capital in the community(Holstein
& Gren, 2013)
Public andCommunity
Pressure
Customer and Consumer
Pressure
What comes to yourmind when you thinkaboutthecommunity around your
facility?
When itcomes to environmental issues, howwould youdescribe theinfluence
of environmentstakeholders external to the facility?
How would you describetheperception of your facilityby thelocal
community?
Social environment reporting: process in
place(y/n)
Facility involved in community
developmentinitiatives (y/n)
? internal factorsinfluencingenvironmental management
(strategic positioning towards investors,lenders,
government, competition)
? company features (size, internationalization, closeness
to consumers in thevalue chain, managerial attitude and
motivations, strategic attitude) - González-Benito &
González-Benito (2010)
? number of facilities per firm(Darnell 2009)
? environmental attitudeof functional departments
within firm(Delmas and Toffel, 2008), ?budgets for
environmental R&D(Darnall 2009)
IndustryCompetition Does competitionin theindustry impactenvironmental practices?How?
How would you describethe facility’s operations, in terms ofpossibleimpact
to theenvironment?
How differentlyare environmental issuesperceived bydepartments atyour
facility?
Strategic scanningof environmental
regulations (y/n)
Environmental benchmarkingprocess
(y/n)
Internal environmental reporting(y/n)
Environmental R&Din firm(y/n)
? annual revenuespenton environmentalmanagement In terms of resources (financial, human, etc.) spenton theenvironment, have
they increased,decreased or remained thesamein thepast fewyears, at your
facility?
Increase (y/n)
?? facility's upper management' involvement and
attitude regarding environmental concerns (Coglianese,
2001; Khannaand Speir,2007).
Managerial attitudes How supportingis uppermanagementof environmental initiatives, at your
facility?
Corporate communication regarding
environmental performancein last30
days (y/n)
? barriers to increasingthe environmental friendliness of
processes, products, and/orservices
What are thechallenges to adoptinggreen practices when designingnew
processes, products, and/orservices?
Environmentof facilitya factor when
decidingnew
products/services/processes (y/n)
? sources ofinformationon environmental management
practices ,historical environmental performanceat facility
(Delmas and Toffel,2004)
Where do you find information regardingenvironmental matters relevant to
youroperational activities?
Knowledgeof ESRD/EMSreporting tools
(y/n)
Section II.
Facility
Environmental
Practices
? employeeinvolvementin environmental management
? social vulnerability of workforce (Gunningham, 2009)
Do you thinkthere are core values shared bypeople at yourfacility? Environmentissues considered ashared
responsibility within facility(y/n)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
18
? level of responsibilityforenvironmental decisions
? awareness of prosecution of serious violations
(Thornton et al, 2005)
? frequentinspections (Henriques et al, 1996)
Government and Regulatory
Factors
Would you say following ESRDrequirements and guidanceis a constant
challengein yourbusiness, orthat there are onlya fewoperational situations
that get outof control?
In your opinion, does meetingESRDrequirements and guidancerequire more
actions of themanagerial level,or theoperational l evel?
Frequency of incidents reported
Operational vs managerial level
described as responsiblefornon-
compliance
? environmentallyfriendlypractices Awards and Recognition In your experience atyour facility, themanagement’sstrategy is to comply
with currentgovernment environmental regulations, orto voluntarily
anticipate future environmental regulations?
Why?
Voluntary programs participation (y/n)
? voluntary programs participation of facility
? history of pastsocial struggle at facility(strikes,lockouts)
- (Gunningham,2009)
How would you describethe work climate atyour facility? Fractured workcultureat facility(y/n)
? citizen lawsuits, orpolitical action (Gunninghamet al,
2004; Delmas and Toffel2004)
Has there been anycommunityreaction to the environmental impactof the
facilityin thepast?
Experienceof community reaction to
environmental impactof facility (y/n)
? perceivedlevel of compliancewith regulatory standards
? visible forms of greenness (Khannaand Speir,2007)
What bestrepresents foryou thelevel of environmental performanceof your
facility?
Description of activities beyond
compliancerequirements (y/n)
Section III.
Facility
Environmental
Performance
? awareness of monitoringand enforcementactivities at
other facilities (Gray&Shimshack, 2011)
Are you aware of anyESRDmonitoring and enforcement activities atother
facilities in region?
Knowledgeof monitoringand
enforcementactivities atotherfacilities
in region (y/n)
? environmental outcomes
Profit Motivated Economic
Rational Actors
Would you agree that economic factors explain all environmental
performancedecisions?What elsecould motivate environmental
performanceat yourfacility?
Would you agree that lac k of profit-making or return-on-inves tment
from environmental investmen ts has been a barrier to improving your
facility’s environmental perfo rmance?”
What are themostimportantactivities to control at yourfacility,in
environmental terms?Were they thesame5 years ago?
Continuous reduction of environmental
footprint(y/n)
?? environmental processes Which processes do you use to anticipatesituations that couldimpact the
environmentaround your facility?Were they the same5 years ago?
Continuous environmentalprocess
improvement(y/n)
? involvementofparent companywith environmental
decision makingat facilitylevel
Corporate Culture How is your companymanagementinvolved in environmental decision
makingat facilitylevel?
Environmental manager appointed at
facility(y/n)
Section IV.
General
Information
? firms participatingin aself-regulated Corporate Social
Responsibilityinitiative (Finger, 2011), tradeassociations
(Gunninghametal, 2005).
? economicsectormay haveinfluence overperformance
decisions (Delmas and Toffel, 2004; Henriques and
Sadorsky,1996) ;? industry reputation (Delmas and Toffel
2010)
? geographic isolation of facility(Gunningham,2009)
Questions Design Who is championing environmental values at you r facility?
What could your companydo, to bea better environmental performer?
What are the three mostimportantmotivations and barriers to environmental
management atyour facility, in your experience?
Champion of environmental values
at managerial level (y/n)
Plans forimproved environmental
performanceat facilityare formalized
(y/n)
?? ownership of parent company,parent companya
multi-national corporation
Ownership Structure and
Influences
Is your facility(orparentcompany) publicly traded orprivatelyowned?Is it a
multi-national corporation?
Publicly traded (y/n)
Multi-national corporation (y/n)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
19
1.3.2 Semi-structured interview grid
This phase also included the development of an interview grid to support the semi -structured
interview in Phase 2. The interview grid included all of the major factors and indicators identified
in the literature review, with the intent of pre-testing the likely relevance of these in the Alberta
context. This phase also included the development of a recruiting script to support the personel
arranging interview appointments. These documents are presented in the Appendix 1.
1.3.3 NAICS and EMS
The North American Industry Classification System (NAICS) offers a framework for collecting and
publishing information on inputs and outputs in a consistent way. However, for the purpose of our
study, we believe that applying NAICS solely would lack the sensitivity necessary to reflect the
characteristics of industries regulated by EPEA approvals.
As the primary database for EPEA information, the Environmental Management System (EMS)
incorporates the expertise developed in time by ESRD and is useful for the purpose of reflecting
the characteristics of industries regulated by ESRD approvals. Used alone, for the purposes of this
research, it would be insufficient to distinguish among Alberta industries, particularly in the
manufacturing sector
7
. We considered its weakness could be compensated by the NAICS approach
that classifies industrial facilities according to economic units that have similar production
processes into the same industry.
For this reason, we used NAICS datasets in conjunction with EMS data to guide the selection of
participants for interviews to ensure a range of industries were captured. Table 5 presents the
industry classification system used to support this research and applies to the 632 industrial
facilities that make up the study population.
Table 5: Modified EMS Merge with NAICS (10)
Industry N
Sour Gas (conventi onal) 257
In-Situ & Heavy Oil (Unconventional) 32
Coal 7
Power Plants 67
Hazardous Waste/Recycli ng 61
Muni cipal/Industrial Landfil ls 63
Wood & Paper Product Manufacturing 26
Food Manufacturing 28
Manufacturi ng Chemical 72
Other product manufacturing 19
7
EMS industry classi fications cl uster ma nufacturing i nto broa d categories, and we were interested in understa nding if varience existed
in environmental per for mance within industries as well as between industries.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
20
Phase 2 – Semi-structured interviews
2.1 Phase 2 Research in Context
2.1.1 Approach to the first qualitative data collection
This research seeks to provide a dynamic description of factors at play in environmental
performance decision making at the facility level.
Preliminary interviews provide some insight into the explicit factors that account for variations of
practices and processes of environmental performance in Alberta. This procedure aimed to reveal
variations in facility characteristics, to partially validate the relevance of explicit factors previously
identified in the literature, and to capture any emergent factors relevant to the Alberta context
that were not present in the literature.
To capture variance, participants were selected to represent facilities operating across multiple
industries, and interviews were carried out until saturation was reached during analysis of
qualitative data. Organizational features (e.g. size, number of facilities per firm, etc.), which had
clearly been identified as influencing decision making at facility-level within the literature, were
not probed in this phase, as they were well known to occur, and their influence would be
captured in subsequent phases.
2.1.2 Semi-structured interview questions
In this exploratory phase of research, this form of questioning left room for interpretation to
enable respondents to express the variability of their practices . The questions for this phase were
aimed at obtaining rich, qualitative material in order to broaden our understanding of factors that
could be at play. The questions were designed to trigger facility representatives into sharing their
perceptions of factors influencing decision making. They purposefully encompassed a number of
possible dimensions to leave interviewees free to express their perceptions. What would regularly
be expressed first by interviewees, or insisted upon, would likely be of interest to the study. This
information would be used to guide the broader quantitative survey.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
21
2.1.3 Data collection
In order to design a survey likely to be meaningful to participants and to meet the project
objectives, we undertook a series of telephone interviews with a small subset of facility
representatives. Regional ESRD staff were asked to suggest representatives from each industry
classification who could offer valuable insights to the topic and survey design. Advanis selected
facilities from among these suggestions .
Interviews started on November 25, 2013 and data collection for this phase lasted until November
28, 2013. Interviews were carried out by three researchers and typically lasted between 15 and 20
minutes. The 12 respondents represented facilities that covered six (6) of the nine (9) NAIC codes
represented in the sample.
2.1.4 Data analysis
Interviews were transcribed verbatim and analyzed to identify recurrent themes (explicit factors)
that were known from the literature review. When novel factors emerged, subsequent
questioning aimed to understand them more clearly in the following intervi ews.
Finally, we selected from the interviews a number of significant quotes that best represented the
data describing each explicit factor and integrated them in our results.
2.2 Phase 2 research results
2.2.1 Explicit factors described by interviewees
As we have seen, the literature review provided insights into a range of external and internal
factors that have been shown to influence environmental performance decision-making at the
facility level (Tables 1-4).
Broadly speaking, they include the relationship between the firm and the facility, external factors ,
government and regulatory pressure, public and community pressure, shareholder and investor
pressure, customer and consumer pressure, competitor and industry pressure, and internal factors
that can act to moderate these external pressures
8
.
This section presents the explicit factors that were qualitatively described as important by our
respondents and illustrate the variability of their perceptions wi th verbatim quotes from Phase 2
interviews.
8
such as fir m and facility size, ownership, technical a nd resource capa bilities, organizational chara cteristics, functional depart ments,
industry reputation and competitiveness, ma nagerial attitudes.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
22
According to interviewees, the economic rationale for environmental projects needs be
considered and the facility’s environmental performance is thus, in part, driven by economic
considerations: "It’s a dollar factor, right. They’re in for making a profit off their product. They’re
not doing it just for the environment." (Int. 4, Manufacturing: Food Products)
In addition, there is evidence that to avoid risk facilities sometimes seek environmental
performance at a cost to the organization: "We emphasize safety and environmental
considerations above production. For example, awhile back, we were in a position where our
product was in such demand that there would have been the possibility of running our plants past
their regular capacity, and we implemented a force maj eure in order not to put ourselves in that
position." (Int. 7, Manufacturing: Chemical Products)
Organizations sometimes see their facilities as primarily in charge of improving the environment:
“We’re a little different than a manufacturing plant , where it really becomes a cost against their
bottom line to do some of these things. In our case, our bottom line is driven by being
environmentally safe and improving things.” (Int. 9, Waste Management Facility)
Management may stress that maintaining environmental performance beyond compliance should
be seen as an integral part of the facility’s performance: “I think we’re heading down the path of
continuous improvement in terms of being proactive and continually improving. If we look at the
overarching corporate structure, the environment, sus tainability, is a very key feature. Our
stakeholders demand that of us. We take that very seriously, and we also think it’s a competitive
advantage, so we use that to move the business forward.” (Int. 3, Waste Management Facility)
It should be noted that ISO 14001 certification may impact environmental performance beyond
compliance by aligning corporate requirements at or above environmental regulations: “I think the
point that I would raise is there’s the regulations and there’s only so much the regulations can do ,
and then having the ISO 14001 really does help to build that link between corporate requirements
and regulatory requirements.” (Int. 8, Waste Management Facility)
In the same way, industry associations may have an influence on higher levels of performance
beyond compliance. Interviewees describe membership in industry associations as a positive
influence on environmental performance: "People that belong to that voluntarily, that belong to
this group, look at what's coming in terms of industry, look at what's happening around the wo rld,
look at opportunities for going beyond the regular expectations." (Int. 7 , Manufacturing: Chemical
Products)
Practices described as being beyond compliance can be observed where internal standards in the
organization are more demanding than provincial regulations: "So we have to track that on a
yearly basis and report to corporate to meet those targets that they set for the company. And the
targets tend to be more stringent than our local regulations set by Alberta Environment." (Int. 10 ,
Manufacturing: Chemical Products)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
23
Cost of an environmental project can be a barrier to environmental performance beyond
compliance, as already described. However, public perception of the facility and new
environmental regulations also have a strong impact on projects: “It would be primarily public
perception or I suppose new regulations, tighter limits.” (Int. 5, Manufacturing: Pulp and Paper)
Facility representatives are aware that their social licence to operate is li nked to their industry's
image, and that effort to improve a poor public image must be managed at a facility level: "We
operate our social licence pretty significantly because the industry we’re in is viewed as being
consumptive, which is not 100% accurate, but that’s the perception we have. We rely on our social
licence a great deal to stay in business." (Int. 3, Waste Management Facility)
In this respect, there is a perception that the public pressure, at a more general level, influences
the regulatory processes and may exert an indirect pressure on a facility’s performance: ”If the
public has a concern about something, then of course, that’s a concern that the regul ator would
have, and then we would have to answer that.” (Int. 1, Manufacturing: Petroleum & Coal )
Interestingly, it is sometimes personal involvement of facilities’ representatives in the local
community that seems to explain higher levels of environmental performance: "Again, it’s protect
the environment. You have to live here. Your family has to live in the area. Look after it. Be careful
with what you do, so you go home safe at the end of the day. Those are all values that you try and
instill in your staff." (Int. 9, Waste Management Facility)
Other personal factors seem also to come into play in environmental decision making, as
exemplified by this reference to the position of individuals within the organization: “Well, I mean,
those people’s concerns are different. Usually people ar e concerned about what impacts them.
Top management cares more about the big picture. Operators would be concerned more about
their job, how does their job affect the environment. Everybody is different. ” (Int. 6, Oil & Gas
Processing)
There is an overall perception that meeti ng ESRD regulations requires resources and commitment:
“I think I wouldn’t say it’s a real challenge, but it is a concern, and we’ve got to pay attention to it.
If you don’t pay attention, yes, it can get out of control , but if you pay attention and stick up, stick
to your monitoring and stay on top of your operations, we can meet the regulations.” (Int. 1 ,
Manufacturing: Petroleum & Coal )
The perception of the complexity of regulations may be a barrier to compliance, both at personal
and organizational levels: "We comply with everything that we know and every act that we know,
but there’s always a question out there: is there something that we don’t understand as a facility
or as a plant or myself as the environmental person for the plant ?" (Int. 2, Manufacturing: Building
Products)
Finally, as identified in the scientific literature, the size of the organization is described as a factor,
especially with larger companies being oriented towards longer-term profitability and willing to
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
24
engage in projects that are perceived to lack short -term profitability: “Our company is fairly
diversified, so even when our part of the business is down, quite often another part of the
business is up so if you look at the last (. ..) project we put in, it was a (...) million-dollar project and
we put it in at a time when economically things weren’t real great for our plant, but the long-term
outlook for our company is that we’re a viable business, but they put it in while things were slow
for us that time.” (Int. 2, Manufacturing: Building Products)
2.2.2 Explicit factors and survey questions
The factors identified by interviewees were consistent with those identified in the literature and
the internal ESRD focus groups. This validation enabled the definition of a final list of factors and
their indicators and the survey questions to be explored in Phase 3.
The nature of quantitative questions is to reduce the possibility of multiple interpretations and
increase the ability to easily make comparisons. It also supports analysis of the data at facility
level.
For clarity, factors identified in Phase 1 of research and validated in Phase 2 were integrated into
the survey in four sections. Questions posed to facility representatives relevant to each factor will
be found in the questionnaire (see appendix 2) for each group of factors:
o Section 1: General information (size, international, number of facilities, headquarter
location)
o Section 2: Corporate environment (investor pressure, management values and
involvement)
o Section 3: External factors (external pressures, including customer, public and community
pressures, competitors’ improvement, regulation)
o Section 4: Barriers to environmental practices (impact on profitability, difficulty complying
with regulation)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
25
Phase 3 – Online Survey
3.1 Introduction
This phase of the research constitutes a robust data gathering exercise through an online survey of
industrial facilities in Alberta. This section describes the methodology for collecting and analyzing
the data, explores the findings, and develops a model to articulate the influence of factors on
environmental performance indicators arising from the quantitative survey. The validity of the
model is tested in subsequent phases of the research.
3.2 Data collection methodology and questionnaire
In order to conduct the data collection using a web survey, we needed to identify the correct
respondent at each facility. To do this, phone calls were made to the facilities (or parent
organization when needed) to locate the appropriate person to contact regarding the facility and
to obtain their email. Telephone invitations to participate started in December 2013. The diagram
below presents the number of participants for each step of the process:
Chart 1: Data collection process
680 facilities in the initial list from ESRD
512 individual contacts identified
in the ESRD list
343 phone contacts made at facility level that
accepted to provide contact information
Web answers for 264 facilities
from 221 individuals
P
r
o
g
r
e
s
s
i
o
n
o
f
t
h
e
p
r
o
c
e
s
s
DATA COLLECTION PROCESS
L
O
S
S
3
3
%
L
O
S
S
2
3
%
L
O
S
S
0
%
The designated participants received an email invitation after the initial phone contact. This was
followed by an email reminder and phones calls to the non-responders. A total of 343 industrial
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
26
facility representatives were contacted from December 2013 until the end of March 2014, and
they agreed to participate. The web survey was conducted from February to April 2014. We
obtained completed surveys from 264 facilities. In some cases, one representative was in charge of
more than one facility, so the 264 completed surveys were received from 221 individuals.
Please find the final version of the web survey questionnaire in Appendix 1.
3.3 Building a model of indicators of environmental performance and factors
In order to gain a better understanding of various relations between factors and environmental
performance, an analytical model was designed to position the Phase 3 quantitative survey to
answer the research question.
Hypothesizing from our literature review, ESRD focus groups, and the Phase 2 semi-structured
interviews, two categories of variables were created: the factors that influence performance and
the indicators of environmental performance.
Indicators of
environmental
performance
Factors Positive, negative or no influence
Factors
Factors
Positive, negative or no influence
Positive, negative or no influence
Environmental performance indicators and factors were both created by the same process and
constructed based on multiple questions within the web survey. Each question represented a facet
of the factor or indicator identified in the literature, which we needed to validate.
The modelled relationships between factors and indicators were also hypothesized from the
literature review and the qualitative interviews. The numbers of participants in the project was
sufficient to make possible the creation of a model that explains the relationship between the
indicators and factors. After data collection, a statistical analysis was conducted using logistic
regressions. This enabled us to identify factors that were influential on indicators. The analysis is
presented in detail in section 3.5
The next sections describe in detail both the indicators and factors.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
27
3.3.1. I ndicators of environmental performance
There is no universal measure of facility-level environmental performance, and developing a
concise measure is difficult (Nawrocka and Parker, 2009). Environmental performance spans a
range of activities across media (air, water, biodiversity, reclamation, waste management, etc.),
that different sectors impact differently. Organizational practices also vary, ranging from focus on
regulatory standards to other practices outside of the regulatory requirements.
Lacking a definition of environmental performance, we could only aim to measure the influence of
factors on indicators, i.e., a measure of the statistical significance of each of the factors identified
by industry in explaining the performance of the indicators.
To address this challenge, the research team developed composite measures of performance
based on literature and findings in Phase 2 of the research. These composite measures of
performance will be called “indicators of environmental performance” in the rest of this
document.
They captured (1) positive environmental practices that are aimed to have a beneficial
environmental impact, (2) self-perceptions of the facility representative on the level of compliance
and (3) self-perception of standards they are applying at facility level to indicate facility-level
environmental performance beyond compliance.
These three indicators of environmental performance are presented below, including all the
questions that were used to create them.
1. Positive practices in the facilities:
? Documented envi ronmental policy (question 19A) ;
? Internal environment al audits at regular intervals (question 19B);
? External envi ronmental audits at regular int ervals by a third party (question 19C);
? Periodic publishing of environment al performanc e information to the public (question 19D);
? Environment al c ertific ation (e.g., I SO 14001 certification) (question 19E);
? Facilit y environmental achi evements published in annual reports (question 19F);
? Environment al management system (question 19G).
2. Self perception of the standards that the facility is applying:
? Environment al responsibility is emphasized through well-defined envi ronmental pol icies and procedures
(question 21A);
? Our envi ronmental st andards are more stringent than mandatory government al requirements (question
21B);
? We conduct environment al audits for our own performanc e goals, not just for compli ance (question 21C);
? We are well informed about the best pract ices in environment (question 21D).
3. Self-Perception of compliance of the respondent (when applicable):
? Wat er qual ity (question 23A) ;
? Wat er use (question 23B);
? Air emissions (question 23C);
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
28
? Land management and reclamation (question 23D);
? Wildlife and biodiversity (question 23E);
? Noise pollution (question 23F);
? Odour pollution (question 23G);
? Waste management (question 23H).
The first two indicators were created in two steps. First, we divided the number of questions that
got a positive answer by the total number of questions in each of the indicators. Next, based on
the distribution of the data, we defined organi zations with 75% of positive answers or more to be
performing at a higher level than other companies.
For the third indicator, we defined that companies that indicate that they were doing more than
what is required by regulations have a high level of “self-perception of compliance.” The
assumption is that this perception of a higher level of compliance is likely to be correlated with an
actual higher level performance.
3.3.2 Factors that influence environmental performance
As with environmental performance, no set of motivating factors is commonly accepted. The
factors used hereafter were identified in the literature and in phase 2 of the research. Their
influence on the indicators of environmental performance was tested in the quantitative survey.
1. Management values and involvement
? Upper management's encouragement of fac ility participation in voluntary environment al programs (question
10D);
? Clear int ernal environment al polici es or standards that appl y to all fac iliti es within the organizat ion (question
10E);
? Upper management's beli ef in a moral responsibility for protect ing the environment (question 10F);
? Upper management's support of environmental i mprovements even if costs are substantial (question 10G);
? Upper management ’s belief that improvements in environmental performanc e can increase long-t erm
profits (question 10H).
2. The importance of corporate image
? Ensuring a good corporate image (question 10I);
? Media coverage of an environmental incident involving your company or your fac ility (question 10J);
? Customers' desire for environmental ly fri endly products and services (question 12A) ;
? Ability to earn public recogni tion or customer goodwil l wi th environmentally fri endly actions (question 12B);
? Pressure from environment al int erest groups (question 12C);
? The loc al community's perc eption of the facilit y (question 12F);
? Media coverage of an industry-relat ed environment al incident (question 12I).
3. The Regulations
? Complying with current government envi ronmental regulat ions (question 12D);
? Desire to be bett er prepared to meet anticipat ed environmental regul ations (question 12E);
? Meet ing industry st andards (question 12H).
4. Investors pressure
? Satisfying investor (owner) desires to reduc e environmental risks and l iabili ties (question 10A);
? Protecting or enhancing the value of the facilit y or parent organization for investors (owners) (question 10B);
? Satisfying lenders’ desires to reduc e environment al risks and liabi liti es (question 10C).
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
29
5. Impact on profitability
? High upfront invest ment expense (question 17A);
? Cost of staff training (question 17B);
? High day-to-day costs (question 17C);
? Significant upfront time commit ment to i mplement (question 17D);
? Uncertain future benefit (question 17E) ;
? Risk of downtime or deli very int erruptions during implement ation (question 17F);
? Lack of return on investment(question 17H).
6. Competitors improvements
? Keeping up with competitors’ envi ronmental improvements (question 10K);
? Keeping up with competitor envi ronmental improvements (question 12G) .
7. Difficulties complying with regulation
? Complexi ty of int erpreting regulations (question 17G);
? Not required by law (question 17I).
8. Barriers to improvement
? Composed of two factors : difficulties compl ying with regul ation and impact on profitabi lity. The anal ysis of
this composed factor takes into account all the questions that measure barriers to improvement . Alone, the
factor I mpact on profi tabili ty did not show any influence.
Each of the factors were calculated by dividing the total number of questions to which
respondents answered “agreed to
9
” by the total number of questions that were included in the
factor. To make sure that our factors were strongly positive, not just slightly positive, the top rank
of the Likert scale was used.
9
For some factors this incl uded only the “strongly agree” level. For other factors it i ncl uded both “strongly
agree” and “somewhat agree.”
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
30
3.4 Results
3.4.1 Facility profiles
In order to better understand the results, a series of questions at the beginning of the
questionnaire aimed to define the character of the organizations involved in the research (i.e.
revenue, size, international, number of facilities, headquarter location). It is important to keep in
mind that the research design was focused on industrial facilities with an approval under EPEA
which requires an approval based on the environmental risk of the activity, not the size of the
company.
This section provides information on facilities and organizations. We noted a broad range, in terms
of sector and organization size (that can be interpreted through the yearly revenue), as well as
facility size (that can be interpreted by the number of employees at the facility). The table below
presents the estimated annual revenue of organizations that own these facilities. More than half
of the organizations have sales exceeding $500 million per year. This demonstrates that most
respondents in this research are from organizations with large revenues (76% have revenue equal
or greater than $50 million yearly).
Table 6:
Organization' s average yearly revenue
Total
Unweighted totals: 170
Less tha n 5 million 12%
5 to 10 million 3%
10 to 50 million 9%
50 to 100 million 7%
100 to 500 million 18%
More than 500 million 51%
Source: Adva nis 2014, question 27.
Facility size was measured using the proxy of the number of employees. We can see that many
facilities seem to be of relatively small size or at least do not require labour intensive activities.
Table 7:
Number of employees worki ng at the facility
Total
Unweighted totals: 248
1 to 3 21%
4 to 14 27%
15 to 49 21%
50 or more 31%
Mean : 115.9
Median : 15.0
Source: Adva nis 2014, question 6.
Table 8 presents the industry/sector the facilities represent. The data did not show important
variation in the answers based on the industry/sector classification, although some notable
differences did appear in the manufacturing sector (presented in the sections 3.3 to 3.5).
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
31
Table 8:
Sector of activity of respondents
Total
Unweighted totals: 264
Oil & Gas Pr ocessing 36%
Manufa cturing 23%
Waste Management Facility 22%
Munici pal Water Systems 9%
Electric Power Systems 8%
Others 2%
Source: ES RD 2014, sample file.
Most facilities surveyed belong to multinationals. It was thought that the fact that these
companies were operating in more than one country could influence their standards
10
. We wished
to validate if multinationals were undertaking better practices
11
than exclusively Canadian
companies. The results did not show any consistent difference across the indicators between the
multinational and other companies in the sample.
Table 9:
Operate i n more than one country
Total
Unweighted totals : 262
Yes 71%
No 29%
Source: Adva nis 2014, question 1.
Publicly traded organizations represented 65% of the surveyed facilities. This result is similar to the
number of multinational companies (71%), which are often publicly traded.
Table 10:
Organization publicly traded, privately owned,or g overnmental/munici pal
Total
Unweighted totals: 263
Publicly traded 65%
Privately owned 24%
Governmental or muni cipal 10%
Source: Adva nis 2014, question 26.
Only 28% of the organizations surveyed have only one facility in Alberta. The median number of
facilities is five (5), but the mean is much higher. This is due to a few organizations that have
several hundred sites in Alberta, thus increasing the mean number of sites. This may relate to the
characteristics of multinational organizations which, in most cases, may have more than one
facility operating in Alberta.
10
The term “Standards” refers to the i ndicator of environmental performance presented in section 3.2.1.
11
The term “Practices” ref ers to the indi cator of envi ronmental perf ormance presented i n section 3. 2.1.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
32
Table 11:
Total number of facilities in Alberta
Total
Unweighted totals: 226
1 facility 28%
2 to 10 fa cilities 38%
11 or more 34%
Mean : 37.15
Median 5.00
Source: Adva nis 2014, question 5.
3.4.2 Environment decision and responsibility at the f acility level
Table 12 presents the findings of the role within the organization that has the primary
responsibility for investments in environmental improvements at the facility level. The survey
results established that it is mostly high-level personnel that hold the primary responsibility for
investments at facilities. We note that 42% report that investment decisions in environmental
improvements at the facility are made by a senior executive (i.e. president, CEO, or vice president).
Only 26% report that it is the facility manager who makes this decision.
Table 12:
Holder of the primary responsi bility for investment decisions i n envir onment at your facility
Total
Unweighted totals: 249
Owner, Presi dent, or CEO 27%
Vice President 14%
Director 11%
Plant Manager/Facility Manager 26%
Environmental Health and Safety Manager 6%
Other Environmental Manager (compliance, sustainability, etc) 5%
Other 12%
Source: Adva nis 2014, question 9.
In terms of investment in the past five years, more than half (55%) of the facilities increased their
investment in environment, and 41% of facilities maintained their level of investment. Only a small
percentage (4%) mentioned a decrease in their investments. These facilities are mostly identified
as low-complexity
12
operations in terms of process, and more than half are from the oil and gas
sector.
Table 13:
In the past five years, ev olution of the lev el of investment in environmental infrastr uct ure or impr ovements at t he facility
Total
Unweighted totals: 256
Increased 55%
Remai ned stable 41%
Decreased 4%
Source: Adva nis 2014, question 20.
For the management of environmental incidents at the facility level, two groups are almost always
involved: the operations and the environmental divisions. Of note, the legal division ranks third in
12
The level of complexity ref ers to EMS classif icati ons of complexity.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
33
the list, with 55% of respondents indicating they have a role in responding to environmental
incidents at the facility.
Table 14:
Groups inv olved i n the response and sol ution when envir onmental incidents occur at your facility (in the past 5 years)
Total
Unweighted totals: 264
Operations 97%
Environment 93%
Legal 55%
Finance 34%
Research and i nnovation 22%
Marketing 8%
Other 29%
Source: Adva nis 2014, questions Q9A_A to Q9A_G.
In total, 212 facilities out of the 264 that responded said they were members of at least one
industry association, representing 80% of the surveyed facilities. Table 15 presents the type of
industrial association their facility or organization belonged to. These are categorized by the
function of the association.
Table 15:
Part of the following associations Total
Unweighted totals: 165
Sets industry standar ds and best pra ctice 70%
Offers or facilitates industry training 51%
Facilitates market access 21%
Facilitates relationships with government, public, a nd non-g overnment partner s 62%
Lobbies on behal f of the industry’s interests 48%
Fosters innovation 33%
Other 2%
None of the a bove 8%
Source: Adva nis 2014, question q11d.
3.4.3 Association membership
In total, 212 respondents confirmed their membership in industrial associations. The original list of
associations provided to them in the survey was expanded by participants.
Table 23:
Industry associations initially
identified by ESRD
Other associations mentioned by responders in survey (q11c1)
? Northeast Capit al Industri al
Association (Oil and Gas)
? Strathcona Industri al
Association (Oil and Gas)
? Canadian Association of
Petrol eum Produc ers (Oil and
Gas)
? Canadian Fuels Association (Oil
and Gas)
? Chemistry Industry Association
of Canada (Manufacturing)
? Alberta Forest Products
? Alberta Association Of Municipal Districts & Counti es –
AAMDC
? Alberta Capital Airshed
? Alberta Oilfield and Treating Disposal Association – AOTDA
? Alberta Urban Municipaliti es Association – AUMA
? Association of Americ an Railroads
? Canadian Association of Chemic al Distributors – CACD
? Canadian Association of Petrol eum Produc ers – CAPP
? Canadian El ectric ity Associat ion
? Canadian Energy Pipel ine Association
? Canadian Forest Products Association – FPAC
? Canadian St eel Producers Association – CSPA
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
34
Association (Forestry)
? Canada’s Oil Sands Innovat ion
Allianc e
? Explorers and Produc ers
Association of Canada
? Independent Power Producers
Society of Alberta
? Alberta Us ed Oil Management
Association
? Petrol eum Technology Allianc e
of Canada
? Agrichemic al Warehousing
Standards Association
? Canadian Energy Pipel ine Association – CEPA
? Canada Foundation for Innovat ion – CFI
? Canadian L and Reclamation Association – CLRA
? Canadian Pl astics Industry Association – CPIA
? Canola Council of Canada
? Cement Associat ion of Canada
? Environment al Services Associat ion of Albert a – ESAA
? Forest Products Association of Canada – FPAC
? Fort Ai r Partnership
? Industrial Association of Southern Albert a – I ASA
? Mining Association of Canada
? National Council of Air and St ream Improvement – NCASI
? National Renderers Association – NRA
? Northeast Region CAER
? North Saskatchewan Watershed All ianc e – NSWA
? Ontario Wast e Management Associat ion – OWMA
? Peac e Ai rshed Zone Association – PAZA
? Petrol eum Services Association of Canada – PSAC
? Recycling Council of Albert a – RCA
? Responsible Care – Chemistry Industry Association of Canada
? Solid Wast e Associat ion of North America – SWANA
? Wood Buffalo Environmental Association – WBEA
? Wood Preservat ion Canada – WPC
3.4.4 I nteractions and relations with t he regulator
The following section provides responses regarding the relationship between the facility and the
regulator. Table 16, provides the results on the frequency of inspection by an environmental
agency. We note that approximately 50% of the facilities report an inspection frequency of “every
few years.”
Table 16:
Frequency of inspection at the facility by an envir onmental agency
Total
Unweighted totals: 236
A couple of times yearly 15%
Yearly 34%
Once every few years 51%
Source: Adva nis 2014, question q15.
Of note, 86% percent of facilities report a relatively good mutual understanding between
themselves and the regulator. Considering that the role of the regulator includes enforc ement (i.e.
fines, non-compliance notice) the answers are relatively positive.
Table 17:
To what extent do y ou agree t hat there is g ood mutual understandi ng between your facility and the reg ulator?
Total
Unweighted totals: 259
Strongly agree 52%
Somewhat Agree 34%
Neither Agree nor Disagree 8%
Somewhat Disagree 4%
Strongly Disagree 2%
Source: Adva nis 2014, question 16.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
35
3.5 Results and development of the final statistical model of analysis
The following model presents the most important statistical relationships between indicators and
factors that were identified in the research. We tested which factors had a significant impact on
each indicator, using logistical regression models. It is the visual representation of the influence of
the factors on the indicators of environmental performance. Some relations are positive (+), some
are negative (-), and some have no impact (?).
Chart 2: Model of the factors and indicators
The statistical relationship between the factors and the environmental performance indicators is
presented in the table below. The sigma (?) is a measure of the statistical significance. A value
lower than 0.05, it indicates that the factor has a significant impact on explaining the indicator.
The beta coefficients are the standardized coefficients estimating the impact of each factor on the
indicator. The standardization of the coefficients means that each coefficient was br ought to an
equal unit of measurement, making them comparable between each other. The factor with a
coefficient of the greatest magnitude has the most important effect on the indicator.
Indicators of environmental
performance
FACTOR
Investor pressure
(Q10A-Q10B-Q10C)
FACTOR
Management
value and
involvement
(Q10D-Q10E-Q10F-
Q10G-Q10H)
FACTOR
Impact on
profitability
(Q17A-Q17B-Q17C-
Q17D-Q17E-Q17F-Q17H)
FACTOR
Corporate image
(Q10J-Q12I-Q10I-Q12A-
Q12B-Q12C-Q12F)
Facilities practices
(Q19A-Q19B-Q19C-Q19D-Q19E-Q19F-
Q19G)
Facilities standards
(Q21A-Q21B-Q21C-Q21D)
FACTOR
The regulation
(Q12D-Q12E-Q12H)
FACTOR
Competitors
improvements
(Q10K-Q12G)
FACTOR
Difficulties complying with regulation
(Q17G-Q17I)
FACTOR
Barriers to
improvement
(impact on profitability and
difficulties complying with
regulation )
Perception of compliance
(Q23H)
-
+
+
+
-
+
+
?
?
Relations between factors that influences environmental performance and the
indicators of environmental performance
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
36
Table 18: Hypothesis analysis
Indi cator – Facilities practices (>=75%)
Factors Beta (?) Sigma (?)
Corporate image 2.274 6.678E-06
Barriers to impr ovement -1.340 4.619E-03
Indi cator – Facilities Standards (>=75%)
Factors Beta (?) Sigma (?)
The regulation 1.112 0.0243
Management values 1.824 0.0003
Competitor improvements 1.524 0.0028
Diffi culties complying with regulation -0.978 0.0318
Indi cator – Perception of compliance (Waste management indi cator above requir ed level)
Factors Beta (?) Sigma (?)
Management values 1.2025 0.0009
Source: Adva nis 2014, survey data.
As for the relationship between our two major indicators of performance, we have found that the
presence of positive practices and regard for standards are strongly correlated. The following table
shows the result of the cross tabulations of these variables. The test shows a level of correlation
with 99.9% certainty level.
Table 19:
Relationship between standards and practi ces
Total : Practices (low result) Practices (high result)
Total : 220 148 72
Standards (l ow result) 149
68%
111
75%
38
53%
Standards (high result ) 71
32%
37
25%
34
47%
Source: Adva nis 2014, survey data.
3.5.1 Analysis by indicators: Facilities’ practices
As mentioned previously, some major factors have an influence on practices implemented at the
facilities. Globally, seven questions were used to create the indicator of facility practice. We can
observe that the respondents mentioned some of these practice s were widespread across all
facilities, but others were less present. The top tiers were used to define the binary indicator used
in the analysis model presented previously.
Table 20:
Practices implemented i n facilities Total
Unweighted totals: 261
1-Documented environmental policy 99%
2-Internal environmental audits at regular intervals 87%
3-Environmental Management System 79%
4-Exter nal environmental audits at regular intervals (by a third party) 75%
5-Facility environmental achievements are published in annual reports 52%
6-Periodic publishing of environmental performance infor mation to the public 45%
7-Environmental Certificati on (e.g., ISO 14001 certification) 32%
Source: Adva nis 2014, questions Q19A, Q19B, Q19C, Q19D, Q19E, Q19F, Q19G.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
37
There are two factors that influence the facilities’ practices. The first factor is the importance of
corporate image. We observed that, when the corporate image was identified as being very
important to respondents, they implemented more of the above seven practices. The second
indicator that influences practices that were implemented is barriers to improvement . The more
pressure on profitability and the complexity of understanding the regulations were perceived, the
less these practices were implemented in the facilities. It is to be noted that this second factor is a
composit, and it only influences the indicator when using the two underlying factors in conjunction
(impact on profitability and difficulties complying with regulation).
Indicators of environmental
performance
FACTOR
Corporate image
(Q10J-Q12I-Q10I-Q12A-
Q12B-Q12C-Q12F)
Facilities practices
(Q19A-Q19B-Q19C-Q19D-Q19E-Q19F-Q19G)
FACTOR
Barriers to
improvement
(impact on profitability and
difficulties complying with
regulation )
-
+
Relations between factors that influences environmental performance and the
indicators of environmental performance
The data analysis showed a number of interesting elements that are described below:
? 97% of respondents in the manufacturing sector implemented internal audits but only
80% of the oil & gas processing (mean of the sectors is 87%) did the same .
? We note that the facilities with an operation of high level of complexity, as defined by
ESRD, are more prone to publishing environmental performance information to the public.
? When management staff have strong environmental values, there is an increase in the
frequency and use of internal audits (Q10D: 94% vs 76%, Q10E: 92% vs 66%, Q10F: 93% vs 76%, Q10H: 92% vs
77%).
3.5.2 Survey analysis by indicators: self perception of facilities’ standards
Of note, four questions were used to create “facility standard” indicators. They are presented in
the table below. They were recoded into binary variables for analysis purposes.
Table 21:
Perceived facilities standards Total Agree Neither Agree nor Disagree or Disagree
Environmental responsi bility is empha sized thr ough well -
defined environmental polici es and procedures
263 85% 15%
Our environmental standards are more stringent than
mandat ory governmental requirements
258 69% 31%
We conduct environmental audits for our own per for mance
goals, not just for compliance
262 82% 18%
We are well infor med a bout the best pra ctices in environment 262 86% 14%
Source: Adva nis 2014, questions Q21A, Q21B, Q21C, Q21D.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
38
In terms of facilities’ standards, there are four factors that influence their level.
Indicators of environmental
performance
FACTOR
Management
value and
involvement
(Q10D-Q10E-Q10F-
Q10G-Q10H)
Facilities standards
(Q21A-Q21B-Q21C-Q21D)
FACTOR
The regulation
(Q12D-Q12E-Q12H)
FACTOR
Competitors
improvements
(Q10K-Q12G)
FACTOR
Difficulties
complying with
regulation
(Q17G-Q17I)
+
-
+
Relations between factors that influences environmental performance and the
indicators of environmental performance
+
The data analysis also shows a number of interesting elements that are described below:
? 95% of the manufacturing sector mentioned that environmental responsibility is
emphasized through well -defined environmental policies and procedures. Only 76% of
waste management facilities mentioned that environmental responsibility is emphasized
through well-defined environmental policies and procedures (mean of positive answers
across all sectors is 85%).
? The results show that when management staff have strong environmental values, the
environmental responsibility is more emphasized through well -defined environmental
policies and procedures (Q10D: 81% vs 44%, Q10E: 76% vs 36%, Q10F: 75% vs 31%, Q10G: 79% vs 45%, Q10H: 79%
vs 45%).
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
39
3.5.3 Survey analysis by indicators: self perception of compliance
The third indicator that we tried to create could not be aggregated in the same manner as the
others presented in this report. The difficulty we faced analyzing thi s indi cator ca me fr om the fact that there are
important variations in the type of pollution emitted by a facility. We were able to find a relationship
between the waste management and the motivating factor.
Nonetheless, there were few other statistical relationships between some more individual
elements regarding the “perception of compliance” indicator. These must be analyzed with
caution because of the large number of facilities that were not concerned with several of them.
Still, it does provide some insi ght for the facilities for which the information was available.
Table 22:
Element - Q23_a Water quality
Factors Beta (?) Sigma (?)
Corporate image 1.380 0.018
Diffi culties complying with regulation -0.941 0.045
Consta nt -1.895 0.000
Element - Q23_b Water use
Factors Beta (?) Sigma (?)
Corporate image 1.788 0.001
Consta nt -2.160 0.000
Element - Q23_d Land management and recl amation
Factors Beta (?) Sigma (?)
Investor pressure 1.331 0.005
Consta nt -2.594 0.000
Element - Q23_f Noise poll ution
Factors Beta (?) Sigma (?)
Competitor improvements 1.246 0.020
Consta nt -2.527 0.000
Element - Q23_g Odour polluti on
Factors Beta (?) Sigma (?)
Corporate image 1.849 0.003
Consta nt -2.608 0.000
Source: Adva nis 2014, survey data.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
40
3.5.4 Ranking of the factors by respondents
Respondents were asked to identify the elements they felt were the strongest influence on
environmental performance. First, the respondents were asked to mention their top three
elements (which are a part of the larger factor) for each bloc of questions re levant to corporate
environment, external factors, and barriers to environmental practices. Then, only the top three of
each bloc were presented to them to choose the most important three out of the nine elements
left.
Interestingly, barriers to environmental practices were not the most important elements affecting
environmental decisions. Rather, two elements composing the external factors were selected:
? Complying with current government environmental regulations (n=180)
? Meeting industry standards (n=82)
One element of the internal corporate environment factor also emerged as being of large
importance, this element being:
? Upper management's belief in a moral responsibility for protecting the environment
(n=72)
Chart 3: Top three elements
Clear internal environmental policies or
standards that apply to all facilities
n=131
Complying with current government
environmental regulations
n=221
High upfront investment expense
n=102
Upper management's belief in a moral
responsibility for protecting the environment
n=137
Ensuring a good corporate image
n=98
Meeting industry standards
n=155
Desire to be better prepared to meet
anticipated environmental regulations
n=151
Lack of return on investment
n=79
Not required by law
n=71
Upper management's belief in a moral responsibility for protecting the environment n=72
Complying with current government environmental regulations n=180
Meeting industry standards n=82
Three most influential factors that have led
to environmental improvements at your
facility within the last 5 years
Three most influencial factors that have led
to environmental improvements at your
facility within the last 5 years
Three most significant barriers to the
adoption of environmental improvements at
your facility
Top three factors chosen per dimension
Top three among the top nine factors
Corporate environment External factors Barrier to environmental practices
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
41
3.6 Summary of Key Findings
This phase of the research has shown solid trends. First, we were able to establish a profile of the
participating facilities. This was essential since the industrial structure is diverse in Albe rta. It was
necessary to know if the characteristics of the facilities (e.g. size, multinational , level of
complexity, sector of activity, etc.) would be more important than the factors that were
developped in explaining the environmental performance. The results showed some difference
occurring in the manufacturing sector, that weren’t present amongst other industry classifications,
but the characteristics were not identified as being the most important elements.
Second, the model was used to test the effects of the factors on the indicators of environmental
performance. When the statistical analysis was conducted, a number of factors were shown to
influence the indicators. These results gave a direction for the phase 4 of the research. Knowing
the important factors, the focus was now on understanding how and why they were influencing
the indicators of environmental performance.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
42
Phase 4 – In-depth Qualitative
Interviews
Phase 4 precisely addressed the limitation of retrospective bias, as interviews conducted from April
24 to May 15, 2014 documented the practices of managers at the facility level. Participants were
contacted as a follow-up of survey completion on the neutral ground that their practices were of
special interest to research.
This phase was undertaken to explore more deeply some of the interesting elements found in the
research, and areas that required further clarification. Through 22 qualitative interviews with
managers at facilities, this phase of research explored in depth the explicit and implicit factors
influencing environmental performance decisions. It generated a better understanding of the
various factors that influence environmental performance decision making, with a view of
supporting future policy development and program design pertaining to environmental
performance and excellence.
The results were used to design the quantitative grid used in the final phase of research.
4.1 Interview grid design (Phase 4)
Section 3.5, presented the factors that emerged from the quantitative data analysis : regulations,
corporate image, management values, and perception of competition. From this chart, we
formalized three research questions in Phase 4 to investigate further environmental decision-
making.
The initial interviews were designed to explore this area of research described by the following
questions:
o How are environmental regulations and improvements related at facilities? How can
barriers to compliance be decreased? (grid A)
o How are corporate image and environmental improvements related at facilities? (grid B)
o How are management values, perception of competition, and environmental
improvements r elated? (grid C)
Data collection and analysis were adapted from the Grounded Theory approach developed by
Strauss and Corbin (1990), which we considered more appropriate to this research than the more
inductive version proposed by Glaser. Data collection relied on theoretical questioning; data
generated by each grid after five interviews allowed us to assess which research questions showed
the best potential for enriching our understanding of Phase 3 results (Chart 4). The most promising
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
43
grid was further refined (interview grid 2, in Appendix 3) in light of the qualitative data analyzed
and that grid used for data collection until saturation was reached. Interviews were prepared for
analysis immediately after data collection and coded by breaking the text into meaningful
elements and assigning a representing concept to each. After a number of iterations, data
saturation was obtained as nothing of significance seemed to emerge from additional data
collection.
Char t 4: research themes
It should be noted that several elements of our analysis are typical of a grounded theory,
conceived in a practical way:
? The analysis starts from a framework of reference rather than relying on pure induction;
our initial framework was provided by the previous phases of this research.
? Data collection and analysis by constant comparison occurred simultaneously, and
theoretical sampling was used; we chose respondents likely to shed light on the themes as
they emerged from the data collection process.
? Theoretical questioning, the evolutive set of questions , was used (several interview grids).
4.2 Results
We also intended to develop at this stage an understanding of the dynamic interplay of explicit
and implicit factors contributing to decision making.
As mentioned above, the factors that emerged from the quantitative data analysis , as described in
Chart 2, informed the themes of our interview questions.
Corporate Image Management and competiti on
Regulation and barriers
Phase 3
results
Interview grid
B
Interview grid
A
Interview grid
C
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
44
We first investigated the three themes of (1) Regulations and environmental improvements at
facilities, (2) Corporate image and environmental improvements, and (3) Management values,
perception of competition and environmental improvements, systematically looking for an in-depth
description and in each case.
Then the interview grids proposed in Appendix 3 evolved after the first interviews in order for
subsequent data collection to shed light on emerging themes.
As the data collection proceeded, it became clear that the theme of regulation was at the centre
of interviewees’ self-described perception of environmental performance and more important to
them than corporate image, management values and competition, in influencing facility level
environmental performance.
The interview grid focusing on regulation was used and refined to formalize the interview grid 2
that was used in subsequent interviews , until data saturation was reached.
Our results show that regulation interplays with a number of other factors in environmental
decision making at the facility level. Regulation appears to have the following impact (Chart 5):
? an explicit effect on the organizational dynamics—the sum of actions taken within the
organization;
? an implicit effect on people in general, both within and outside the organization, which in
turn will influence environmental practices at facilities.
Regulation is described as having a role in clarifying the levels of expectations regarding
environmental practices at facilities. Interviewees describe how they rely on regulation when it
comes to deciding which projects they need to prioritize: “I guess with any kind of standard or any
kind of act or regulation or directive, if it’s written on paper and it’s fairly clear, then most people
can abide by it very quickly, buy into it very quickly.”
Regulation also is seen as equalizing the levels of environmental performance among competitors
of the same industry “so that everybody is sort of playing from an equal footing.” In other words:
“If it’s seen as being provided by the government, it provides kind of an industry standard so that
everybody knows that they are playing by the same rules .”
Focusing the analysis on the social side of regulation (its effect on people) allows the identification
of implicit factors in decision making that were revealed in the interview data.
Common among all of the interviews was the desire to be seen as members of an organization
that is compliant with regulation. Sentences such as “Really, we don’t have any roadblocks when it
comes to environmental protection,” or “Well, everybody is concerned with what (they) put in the
environment, so it’s our responsibility to, well, to plan, to take care of what we have for the next
generation,” were typically found in interviews. Taken together, they convey the idea that
environmental values are shared by employees and management at facilities, in the organization,
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
45
and in the community and that this influences decision making: “I think, you know, the employees’
opinion of being environmentally conscious is important to our senior management , and the
decisions we make are based on it.”
Also, it is interesting to note that this social dynamic is mentioned by interviewees when it comes
to describing the reasons for facilities to go beyond compliance.
Comments comparing their own facility’s environmental practices with known practices by other
organizations and other value-laden comments about practices at the facility level show that social
influence is a factor of environmental performance beyond compliance. It is perceived as coming
both from the personnel at the facility and the interaction with the community. Incentives to go
beyond regulation are mostly described in such social terms by interviewees:
“From a financial perspective, I would say it’s not about the money because , really, when
you are managing an environmental liability, I don’t think the government is able to offer
any type of a concession that is really going to be meaningful or material to the big picture.
But what they can offer is some recognition to the compa ny that they’re doing a good job so
that the company can leverage that with the other stakeholder groups . Whether that’s a
community or the province at large, it creates a sense of pride and accomplishment.”
Finally, a risk of st agnation in environmental practices is described (“everybody thinks we should
be proactive on these things, well, that’s not necessarily true”) when the regulator is perceived as
not rewarding organizations that anticipate future regulation, for instance , by changing its
environmental priorities or by not updating regulations regularly enough, which both penalize
environmental innovators.
The following quotes (Chart 4) exemplify in details our results for Phase 4, and a model is
proposed to integrate the implicit and explicit factors of environmental decision making at
facilities (Chart 5): each arrow of Chart 5 is illustrated by a quote from Chart 4.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
46
Chart 4: Four di mensions of environment al performance at facilities
E
n
f
o
r
c
i
n
g
c
o
m
p
l
i
a
n
c
e
Social lever Regulatory lever
B
e
y
o
n
d
c
o
m
p
l
i
a
n
c
e
clarifying the levels of expectations
equalizing the levels of environmental performance
collateral effects of regulation
environmental values
formal recognition of the efforts to go beyond
compliance
I guess with any kind of standard or
any kind of act, or regulation or
directive if it’s written on paper and
it’s fairly clear then most people
can abide by it very quickly, buy
into it very quickly.
I think because they provide that
incentive, that guidance for a
company to put capital, or
whatever kind of budget towards
something: if they don’t have to
do it, they won’t do it. Basically
that’s what it comes down to.
Why do regulations work?
Well if you’re running any kind
of operations, you need
specific guidelines, and
operation depends on
guidelines to function.
Regulation brings certainty to
that process and allows us to
know that we are making an
investment of our time, our
efforts, our finances etc that
will provide us benefit in our
operations.
Set a common threshold across the province. If Alberta took the lead
and established goals, objectives, took the lead on perhaps finding
funding to implement some of these programs [...] so that everybody
is sort of playing from an equal footing that would be best.
If it’s seen as being provided by the government it provides kind of
an industry standard so that everybody knows that they are playing
by the same rules. No company is put at an advantage versus
another company because…you know they’re able to cut corners.
Everybody has to basically walk the same line kind of thing.
In some areas, you try to get to where
you think it’s going, if you’re watching
other jurisdictions, but sometimes, you
have to be careful or that, because
Alberta, in some instances, seems to
be a little slower in making some of the
adjustments. Sometimes you can put
yourself at a competitive disadvantage
by trying too far ahead of the
regulations.
Anything that we wanna do, in terms of improving environmental
performance, typically is costly. Significant money, significant efforts,
it takes a long time. We certainly don’t want to start down the road of
doing something only just to be told that we should be doing
something else. That is extremely unproductive. And that is one of the
reason that we wait for the regulation as opposed to … everybody
thinks we should be proactive on these things, well that’s not
necessarily true, because you can spend a lot of time and efforts doing
something that you think is beneficial only to be told that we should
be doing something else.
The waste control regulation
hasn’t changed, the main
one for my business hasn’t
been changed since 1996.
They had a study group
several years that went
through a reworked
everything and then it never
got passed the planning
stage. The government
priority hasn’t been on my
side of the business.
So my direct experience with anticipating future regulations is that
often times Alberta Environment isn’t able to, or, Alberta Environment
isn’t able to, or doesn’t enact the regulations so you end up spending
more money than you needed to and then that obviously makes it
more difficult to achieve, to acquire money for other future
environmental issues.
social comparison
For industry Greenhouse Gas emission intensity, taking the process
emission component out of the intensity calculation does not
encourage improvements in production emissions. As long as you
are meeting your approval you won't really do much more.
I would like to see the general public educated a bit more on how
industry is doing as a whole. The companies that repeatedly have
the failures are casting a shadow over the entire industry and it is
disheartening for the companies operating responsibly.
Beyond cost i would have
to say one of the barriers
that i run into is really
changing people
mindsets.
Current regulations encourage companies to stay well clear of
defined regulatory limits to avoid compliance orders.
Regulations are not equally understood across the province, as
different regions and different individuals within the regulatory
sector, interpret terms and conditions of the regulations (especially
certain regulations with vague terminology) differently and
inconsistently across the province.
I think if they were able to standardize some of the key
performance indicators they are interested in, if they were doing
a better job at communicating that out to the public, and
companies would have to take notice of where they sit on that
perspective.
The EnviroVista Program is an example of how companies with
an Environmental Stewardship mindset can be innovative
beyond regulatory requirements to the benefit of all Albertans.
What is needed is incentives to help others understand the
benefits of working towards that same mindset - show the
positives of changing behavior.
c
a
h
f
e
i
a
g
d
b
…younger people working here,
people fresh out of the university so I
think it’s more of a cultural thing with
them [...] I guess the influence is they
do want see us do the right thing as
well as obviously we have to be in
compliance to stay operating. I think,
you know, the employees’ opinion of
being environmentally conscious is
important to our senior management
and the decisions we make are based
on it.
Well, everybody is
concerned with what
(they) put in the
environment, so it’s our
responsibility to, well to
plan, to take care of what
we have for the next
generation.
I’ll call it the social license, but really it comes down to
competition for people within a local area. People have to
believe that you’re a responsible company or they don’t want
to work for you.
The sort of a social perspective, so [here] we have a growing
interest from the public who would like to divert on material
and they are now pressing to say “we want to be able to
recycle more and more material we want to be more like
the Edmonton, Calgary or Halifax”, and as those social
values evolve it puts pressure on our muncipality to sort of
address those issues.
From a financial perspective, I would say it’s not about the
money because really, when you are managing an environmental
liability, I don’t think the government is able to offer any type of
a concession that is really going to be meaningful, or material, to
the big picture. But what they can offer is some recognition to
the company, that they’re doing a good job, so that the company
can leverage that with the other stakeholder groups, whether
that’s a community or the province at large, it creates a sense of
pride and accomplishment
I mean I don’t even know if they are aware we have been ISO 14001
certified. Obviously if they came to visit our site they would know
that. Maybe asking companies that are certified to register and
notify them so they understand, I guess the companies that are in
Alberta that are going above and beyond. And I don’t know if you
know if, some sort of certificate to be issued from the government,
or some sort of recognition so that it further instills that to senior
management, that not only do we know we are doing the right
thing but the government recognize that as well.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
47
Chart 4 shows four dimensions of environmental performance at facilities with different rows for
environmental performance (compliance and beyond compliance), and two columns to describe
the means of influence (social lever and regulatory lever) that can be used for environmental
performance beyond compliance.
Each verbatim quote was selected from interviews for its revealing power to convey the core
content of the data collected. All interviewees’ contributions a re represented by a quote.
The regulatory lever used to enforce compliance works by clarifying the levels of expectations by
managers at facilities, thus allowing them to play from an equal footing with competitors in their
industry.
The social lever used to enforce compliance plays on the social licence to operate, with a
perception of the importance of environmental consideration that is increasing with the new
generation.
That social lever is showing potential for environmental performance beyond compliance: the
social comparison influences both the general public and facility staff towards pushing for and
adopting exemplary environmental practices. Also, data shows that a potential reward in the social
sphere is a motivating factor for beyond compliance performance.
Finally, a risk of stagnation is described as a collateral effect of regulation. The necessity for
regulation to keep pace with evolving practices is stressed, as failure to do so might discourage
beyond compliance initiatives.
Chart 5 shows how perception of regulation plays implicitly on environmental values held both by
staff at facilities and in the general public to create a social dynamics that is beneficia l to
environmental performance beyond compliance.
Regulation is also explicitly pointed out as a factor by managers describing the organizational
dynamics at facilities; it can be a matter of cost of non-compliance or corporate image for
instance.
Beyond compliance organizational standards result from both the shared environmental values by
staff and the organizational dynamics.
However, a risk of stagnation exists that could impair the ability of organizations to perform
beyond compliance when the organization is perceived not to have been rewarded in the past for
taking the risk and cost of a proactive, beyond compliance performance.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
48
Improved organizati onal standards (beyond compl iance)
Improved envi ronmental practices at f acil ity
Perception of regulation at facility
Organizational compli ance to re gul ation (procedures) Shared environmental concern at fac ili ty (values)
Organizational dynamics (Expl ici t f actors)
? financial profitability /cost of non-compliance
? corporate image
? internal poli cies and audits
? benchmarking (industry and competition)
? ISO and external audits
- technol ogy improv ements
Social Dynamics (Impl ici t f actors)
? media
? community
? employees
? managers
? on site communicati on
Risk of
stagnation
Chart 5: A model of factors interaction at facilities
a b
c d
h
e f g
i
It should be noted that—for future policy development and program design pertaining to
environmental performance and excellence—regulation, while widely considered the main driver
of environmental performance at facilities, also has its shortcomings. This qualitative phase of
research also shows that the social lever available to policy makers should be further investigated,
as it seems to be a useful complement to regulation in order to encourage the move of facilities to
beyond compliance environmental practices: “I think if they were able to standardize some of the
key performance indicators they are interested in, if they were doing a better job at
communicating that out to the public, and companies would have to take notice of where they sit
on that perspective.”
These results resonate well, for instance, with Paddock’s (2011) call at the Ninth International
Conference on Environmental Compliance and Enforcement to notice that “It is important for those
managing compliance and enforcement programs to also think about how their work can influence
the internal economic considerations of r egulated entities and help shape environmental values.”
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
49
Phase 5 – Validation
The purpose of phase 5 was to validate the research results. This involved two elements, the first
was verification of our findings against the findings of academic literature. The second, involved a
short quantitative web survey circulated to all participants from the phase 3 quantitative survey.
5.1 Links with scientif ic literature
The review of the academic literature completed in phase 1 identified a range of factors that
influence environmental performance decision-making process at facilities.
The value of this research was not only that it confirmed that the factors identified i n the literature
were also at play within facility-level environmental performance in Alberta, but also that it
expands upon this to provide a relative ranking of these factors within the Alberta context and
improves our understanding of what aspects of environmental performance these factors
influence most significantly.
We revisited the academic literature to further explore and test our results against other academic
findings relevant to the three most important factors identified in this research: regulation,
management values, and industry standards.
First, and unsurprisingly, our quantitative results ranking regulation as the most important driver
13
of environmental improvement beyond compliance at facilities fall in line with most of the
scientific literature on the topic and resonate well for instance with Gray and Shimshack’s (2011)
review on monitoring and enforcement or with Holstein and Gren’s analysis (2013) of violation of
environmental regulations.
However, our qualitative results (Phase 4), by revealling a risk of stagnation as regulation fails to
keep up with best practises, invite to further investigate the claim by Khanna and Speir (2013)
14
or
by Frondel et al (2008) that seems to mechanically link the existence or prospect of stricter
environmental regulations to innovation. Rennings and Rammer (2010) and Kemp and Pontoglio
(2011), for instance, had also advised to use caution before establishing such a link: “ The ?fth issue
of understanding is that environmental policy can have both a positive and a negative in?uence on
the development and adoption of particular environmental innovations. More attention should be
13
180 ranked it as very a important fa ctor out of 264 a nswers.
14
“It is therefore i mportant to have strict enfor cement of existing regulation and a t hreat of stringent regulations in the fut ure to
motivate a cha nge in corporate environmental behavior. Moreover, the expectation of tougher regulations in the future, even i f they
do not mandate specific technologies, can sti mulate green technologi cal innovation.”
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
50
given to how particular policies favour or disfavour particular innovations. ” Our results indicate
that further research is needed to understand the different facets of the adverse dimension of
regulation described at facilities, like the effect of perceived changing environmental priorities by
the regulator or that of the irregular update of regulations.
Second, environmental values of managers and the belief in a moral responsibility for protecting
the environment were identified as important drivers of performance by the literature (Khanna
and Speir, 2007; Wu, 2009). For Paddock (2011), “Values are one of the key driver s of
environmental behavior. People tend to act in pro-environmental ways when a situation activates
a feeling of moral obligation to do so—simply put, pro-environmental behaviors are more likely
when people feel morally responsible to undertake them.” Delmas and Toffel (2011) had shown
that organizational characteristics lead managers to interpret pressures differently. The
convergence of our results with the existing literature indicates an interesting avenue for research
investigating the link of environmental performance beyond compliance at facilities with
corporate social responsibility (CSR). This type of research could shed more light on the role of
personal values in environmental decision-making processes (Aguinis and Glavas, 2012).
15
Third, the interest to promote industry standards for environmental performance beyond
compliance at facilities, as stated by managers in our quantitative data, is consistent with results
by Tari et al. (2012). However, caution is advised by some researchers who stress that
consideration should also be given to the role of third-party auditing (Gamper-Rabindran and
Finger, 2013) or environmental institutional distance between headquarters’ and subsidiaries’
countries (Aguilera-Caracuel et al., 2012), for instance. Such considerations limit the affirmation of
a direct, beneficial role of industry standards —isolated from other factors—for beyond
compliance practices at facilities. Self-reporting of perceptions by managers at facilities may
constitute a limitation of our study in this respect, although a social desirability bias effect may be
mild. (Milfont, 2009)
5.2 Questionnaire and Data collection
The factors described to respondents in the Phase 5 questionnaire had been identified in Phase 3
(quantitative) and refined in Phase 4 (qualitative). Data was collected between May 15 and May
26, 2014. We contacted respondents of our Phase 3 quantitative survey for a short, online
confirmatory follow-up survey consisiting in 15 questions and provided them the opportunity to
share their comments on our results using a contact phone number.
15
“Given the findi ngs regardi ng supervisor commitment to CSR, some resear cher s have found that its a ntecedents i ncl ude values
(Mudra ck, 2007), congruence of individual values with organizational values (Bansal, 2003) and individual concer n with certain issues
(Bansal, 2003; Bansal & Roth, 2000; Mudrack, 2007). Personal values are part of the deci sion -making processes whether individuals
realize it or not, so it is important to understand how values influence engagement in CSR (Hay & Gray, 1974; Swanson, 1999). Other
predictor s of individual commitment to CSR i nclude prag matic aspects, such as awareness of CSR gui delines (Weaver et al., 1999b), CSR
training (Stevens et al., 2005), and attendance of CS R conferences (Johnson & Greeni ng, 1999; Weaver et al., 1999a, 1999b)”.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
51
Of the respondents from the Phase 3 quantitative survey, 130 responded to this online survey to
validate the findings (no feedback call was received)
16
. The questionnaire used for Phase 5 can be
found in Appendix 4. The main factors of environmental decision making that appeared in Phase 3
of this research and were refined in Phase 4 were presented to respondents:
? clarifying role of regulation
? equalizing role of regulation
? importance of social values
? regulator challenges
5.3 Results
The tables presented below detail our confirmatory survey results. Altogether, these quantitative
results strongly support the findings of the qualitative analysis of Phase 4:
? Almost all respondents agree that regulation plays a role in clarifying the levels of
expectations for environmental performance;
? Nine out of 10 respondents agree regulation plays a role in equalizing the minimum levels
of environmental performance among competitors.
Table 25:
Agree Disagree
q1a -- Regulation plays a role in clarifying the levels of expectations for environmental performa nce. 98% 2%
q1b -- Regulation plays a role i n equali zing the levels of environmental performance a mong competitors (A
level playing field exi sts for all fa cilities).
87%
13%
q1c -- Regulation helps environmental ma nagers at the fa cility advocate for impr ovement to upper
management.
98%
2%
q1d -- Inspections are i mporta nt beca use they hel p our empl oyees and management focus on
environmental issues.
91%
9%
q1e -- Reg ulation is the si ngle most important driver of environmental progress in our industry. 84% 16%
q1f -- Regulation by prescri bing a level of environmental per for mance does not encourage environmental
innovation.
51%
49%
Source: Adva nis 2014, second survey data.
Substantiating the collateral effect of regulation and the risk of stagnation in environmental
improvement, half of respondents consider that regulation, by prescribing a level of
environmental performance, does not encourage environmental innovation.
As evidence of the regulator’s challenges :
? Only six out of 10 respondents say the current regulatory system encourages beyond
compliance performance.
? Half of respondents say current regulations are equally enforced across facilities in the
same sector.
? Regulation is clear for seven respondents out of 10 (89% in the Manufacturing sector),
which also leaves room for improvement.
16
Out of the possible 221 answers. This sa mple was not fa cilities based, since some respondents had ma ny facilities under their
supervision.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
52
According to nine out of 10 respondents, the fact that the staff has been advocating for
environmental improvement has led to environmental progress in their organization. This
illustrates the importance of social values for environmental decision making at facilities (social
lever). Furthermore, for almost as many respondents (86%), a formal recognition of efforts to go
beyond compliance would motivate employees and management to do more.
Corporate image and social values interplay to influence environmental performance at facilities.
Advice from government officials that could help improve environmental performance are
welcome by respondents, and formal recognition of efforts to go beyond compliance would be
well received.
Although working habits and mindsets can be a barrier to environmental performance, the fact
that the staff often advocates for environmental improvement has, in fact, led to environmental
improvement within organizations. It is to be noted that the respondents that have weaker
practices mentioned more often that changing the mindsets and habits within their organization
was a challenge.
Table 26:
Agree Disagree
q2a -- Our management would be open to advice from government offi cials that could help improve our
environmental per for mance.
90% 10%
q2b -- An important barrier to environmental per for mance comes from the di ffi culty of cha nging working
habits and mindsets.
79%
21%
q2c -- The fact that the sta ff is a dvocating for environmental impr ovement has led to environmental
progress in our organi zation.
90%
10%
q2d -- A for mal recognition of our efforts to g o beyond compliance would motivate our empl oyees and
management to do more.
90%
10%
Source: Adva nis 2014, second survey data.
It is generally considered that current regulatory levels are sufficient to control the respondent
facility’s impact on the environment.
Table 27:
Agree Disagree
q3a -- Current regulations are clear (the requirements are easy to understa nd). 71% 29%
q3b -- Current regulations are equally enfor ced a cross facilities in the same sector. 53% 47%
q3c -- Current regulatory levels are suffi cient to control our fa cility's impa ct on the environment (i mpa ct
relates to both the resour ce use a nd emissions (i. e. conservation, efficiency and environmental quality).
89% 11%
q3d -- Current regulatory system encourages beyond compliance performa nce. 61% 39%
Source: Adva nis 2014, second survey data.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
53
Conclusion
In conclusion, the process and results of this research lead us to consider the question of
Understanding Organizational Decision Making Related to Environmental Performance with
nuance and open avenues for research.
To understand “What factors influence environmental performances among regulated facilities in
Alberta?” this research relied on a sequence of exploratory phases , starting with a documentation
and literature review. The interviews with managers at facilities allowed to identify survey items,
which were quantitatively validated by managers at facilities (N=264). The other series of
interviews led us to determine dimensions of the factors, and final results were validated by a
quantitative survey of managers’ perceptions at facilities (N=130).
In line with most of the scientific literature on the topic, our results rank regulation as the most
important driver of environmental improvement at facilities.
However, beyond providing a quantitative measure of the relative importance of regulation
compared with other significant factors described by respondents of our survey, this research also
shows the collateral and segregating effects of regulation, with a risk of stagnation. According to
four out of 10 facility managers, regulation does not encourage beyond compliance performance.
Looking at the six factors identified as important, our results should not be narrowed down
exclusively to regulation. Overall, our results point towards potential benefits from
complementary actions to regulation in order to increase environmental leadership in Alberta.
Both quantitative and qualitative results open additional avenues of research for environmental
performance improvement and for policy design.
More research will allow policy makers to understand the different facets of the adverse
dimension of regulation, to explore the role of personal values in environmental decision-making
processes and a possible link to corporate social responsibility research, and to shed light on the
actual role of industry standards for improved environmental practices at facilities.
Future policy development and program design pertaining to environmental performance beyond
compliance and excellence will need to consider regulation’s role at the facility level, as this
research indicates that it interplays with a number of organizational and social factors. Innovative
mechanisms can already be conceived at this stage.
For example, an annual autoevaluation of facilities by environmental managers would permit
them to rank themselves within the industry on a number of practices and standards. This could
play on implicit factors to create a beneficial social dynamic for environmental performance
beyond compliance.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
54
Also, the official recognition of facility-level efforts for environmental improvement and
innovation beyond compliance would likely have an effect on the organizational dynamics, as
evidenced in the qualitative data.
Finally, as evidenced in our final quantitive validation of research, inspections at facilities could be
organized in such a way as to increase the perception of a more equal enforcement of regulation
across industries and the province.
An innovative research design and proven data collection capacities have allowed the research
team to address adequately a complex research question, generating robust results. We wish to
stress here the stimulating presence and constant support we have received from the ESRD
project team, and thank them for their collaborative spirit in this research:
? Farrah McFadden
? Wayne Crosby
? Myles Kitagawa
? Shauna Kryba
? Kim Zeleny
For all these reasons, we are confident that Understanding Organizational Decision Making
Related to Environmental Performance will allow Alberta ESRD to use new knowledge and
understanding that can support options that seek higher levels of performance, as part of the
focused effort of the Government of Alberta to move forward in establishing priority initiatives
pertinent to the environment.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
55
Bibliography
1. Aguilera-Caracuel, J. Aragón-Correa, J., Hurtado-Torres N., and Rugman, A. (2012). The
Effects of Institutional Distance and Headquarters’ Financial Performance on the
Generation of Environmental Standards in Multinational Companies, Journal of Business
Ethics, 105(4), pages 461-474.
2. Aguinis, H., and Glavas, A. (2012). What we know and don’t know about corporate social
responsibility: A review and research agenda. Journal of Management, 38, 932-968.
3. Allison, G.T. (1971). Essence of Decision: Explaining the Cuban Missile Crisis, Boston: Little,
Brown.
4. Buysse, K., and Verbeke, A. (2003). Proactive environmental strategies: a stakeholder
management perspective. Strategic Management Journal , 24(5), 453–470.
5. Clarkson, P. M., Vasvari, F. P., Richardson, G. D., and Li, Y. (2008). Revisiting the relation
between environmental performance and environmental disclosure: An empirical analysis.
Accounting, Organizations and Society, 33(4-5), 303–327.
6. Darnall, N., Henriques, I. and Sadorsky, P. (2010), Adopting Proactive Environmental
Strategy: The Influence of Stakeholders and Firm Size. Journal of Management Studies, 47:
1072–1094
7. Delmas, M., and Toffel, M. (2004). Stakeholders and environmental management
practices: an institutional framework. Business strategy and the Environment, 222, 209–
222.
8. Delmas, M., and Toffel, M. (2008). Organizational responses to environmental demands:
Opening the black box. Strategic Management Journal .
9. Delmas, M., and Toffel, M. (2010). Institutional pressures and organizational
characteristics: implications for environmental strategy. Working Paper Prepared for the
Oxford Handbook of Business and the Environment - Division of Research and Faculty
Development, Harvard Business School
10. Fairman, R., and Yapp, C. (2006). Factors affecting food safety compliance within small and
medium-sized enterprises: implications for regulatory and enforcement strategies. Food
Control, 17(1), 42–51.
11. Frondel, M., Horbach, J., and Rennings, K. (2008). What triggers environmental
management and innovation? Empirical evidence for Germany. Ecological Economics, (07).
12. Gamper-Rabindran, S. and Finger, S.R. (2013). Does Self-Regulation Reduce Pollution?
Responsible Care in the Chemical Industry. Journal of regulatory economics, 43(1), 1-30.
13. Gibbs, C., Gore, M. L., McGarrell, E. F., and Rivers, L. (2009). Introducing Conservation
Criminology: Towards Interdisciplinary Scholarship on Environmental Crimes and Risks.
British Journal of Criminology, 50(1), 124–144.
14. Glicksman, R., and Earnhart, D. (2007). The Comparative Effectiveness of Government
Interventions on Environmental Performance in the Chemical Industry. Stanford
Environmental Law Journal , 719(forthcoming), 1–43.
15. Glicksman, R. (2008). Effectiveness of Government Interventions at Inducing Better
Environmental Performance: Does Effectiveness Depend on Facility or Firm Features?
College Environmental Affairs Law Review, 35(3).
16. Gonzalez-Benito. (2006). A review of determinant factors of environmental proactivity.
Business Strategy and the Environment, 15, 87–102.
17. González-Benito, J., and González-Benito, Ó. (2010). A study of determinant factors of
stakeholder environmental pressure perceived by industrial companies. Business Strategy
and the Environment, 19, 164–181.
18. Gray, W. B., and Shimshack, J. P. (2011). The Effectiveness of Environmental Monitoring
and Enforcement: A Review of the Empirical Evidence. Review of Environmental Economics
and Policy, 5(1), 3–24.
19. Gunningham, NA, Thornton, D., and Kagan, R. (2005). Motivating Management: Corporate
Compliance in Environmental Protection. Law and Policy.
20. Gunningham, Neil. (2009a). Environment Law, Regulation and Governance: Shifting
Architectures. Journal of Environmental Law, 21(2), 179–212.
21. Gunningham, N. (2009). On the Limits of Management Based Regulation. Working Paper
69, National Research Centre for Occupational Health and Safety Regulation (NRCOHSR) -
Australian National University
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
56
22. Gunningham, Neil, Kagan, R. A., and Thornton, D. (2004). Social License and Environmental
Protection : Why Businesses Go beyond Compliance Social License and Environmental
Protection : Why Businesses Go Beyond Compliance, 307.
23. Harrison, K. (1995). Is cooperation the answer? Canadian environmental enforcement in
comparative context. Journal of Policy Analysis and Management, 14(2), 221–244.
24. Henri, J.-F., and Journeault, M. (2008). Environmental performance indicators: an
empirical study of Canadian manufacturing firms. Journal of environmental management,
87(1), 165–76.
25. Holstein, F., and Gren, I. (2013). Violation of environmental regulations in Sweden:
Economic motives, environmental attitudes, and social capital. Working Paper Series,
Department Economics, Swedish University of Agricultural Sciences. Available at
:http://swopec.hhs.se/slueko/abs/slueko2013_003.htm
26. Howard?Grenville, J., Nash, J., and Coglianese, C. (2008). Constructing the license to
operate: Internal factors and their influence on corporate environmental decisions. Law
and Policy, 30(1), 73-107.
27. Kagan, R. (2003). Explaining corporate environmental performance: how does regulation
matter? Law & Society Review, 1–55.
28. Khanna, M. and Speir, C. (2007). Motivations for Proactive Environmental, Management
and Innovative Pollution Control. AAEA Meetings, Portland, Oregon July 29- August 1,
2007.
29. Khanna M, Speir C. (2013) Motivations for Proactive Environmental Management.
Sustainability, 5(6):2664-2692.
30. Kemp, R., and Pontoglio, S. (2011). The innovation effects of environmental policy
instruments - A typical case of the blind men and the elephant? Ecological Economics, 72,
28–36.
31. Keyes, D. L., and Mcknight, K. M. (n.d.). Environmental Conflict Resolution : Evaluating
Performance Outcomes and Contributing Factors, 27(1).
32. Lin, C.-Y., and Ho, Y.-H. (2010). Determinants of Green Practice Adoption for Logistics
Companies in China. Journal of Business Ethics, 98(1), 67–83.
33. Liu, L. (2012). Analysis of Firm Compliance with Multiple Environmental Regulations.
Economics & Intl. Business Working Paper No. 12-07, Sam Houston State University
34. Milfont, T. L. (2009). The effects of social desirability on self-reported environmental
attitudes and ecological behaviour. The Environmentalist, 29, 3, 263-269.
35. Mitchell, R. (2006). Study on identifying rural sociological barriers to adoption. Research
report, Alberta Research Council, Alberta, Canada.
36. Nawrocka, D., and Parker, T. (2009). Fi nding the connection: environmental management
systems and environmental performance. Journal of Cleaner Production, 17(6), 601–607.
37. Olsthoorn, X., and Tyteca, D. (2001). Environmental indicators for business: a review of the
literature and standardisation methods. Journal of Cleaner Production 1–27
38. Paddock. (2011). Compliance and Enforcement. In Ninth International Conference on
Environmental Compliance and Enforcement 2011 (pp. 589–615).
39. Parker, C., and Nielsen, V. (2009). The Challenge of Empirical Research on Business
Compliance in Regulatory Capitalism. Annual Review of Law and Social Science, 5(1), 45–
70.
40. Prakash, A. (2001). Why do firms adopt beyond-compliance environmental policies?
Business Strategy and the Environment, 10(5), 286–299.
41. Prakash, A., and Potoski, M. (2012). Voluntary environmental programs: A comparative
perspective. Journal of Policy Analysis and …, 31(1), 123–138. doi:10.1002/pam
42. Ramus, C. a. (2005). When Are Corporate Environmental Policies a Form of Greenwashing?
Business & Society, 44(4), 377–414.
43. Rennings, K. and Rammer, C. (2010). The impact of regulation-driven environmental
innovation on innovation success and firm performance, ZEW Discussion Papers 10-065,
ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic
Research.
44. Russo, M. V. (2009). Explaining the impact of ISO 14001 on emission performance: a
dynamic capabilities perspective on process and l earning. Business Strategy & the
Environment (John Wiley & Sons, Inc), 18(5), 307–319.
45. Shimshack, J. P., and Ward, M. B. (2005). Regulator reputation, enforcement, and
environmental compliance. Journal of Environmental Economics and Management, 50(3),
519–540.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
57
46. Tari, J.J., Molina-Azorin, J.F., and Heras, I. (2012). Benefits of the I SO 9001 and ISO 14001
standards: A literature review. Journal of Industrial Engineering and Management,
5(2),297-322
47. Thornton, D., Gunningham, N., and Kagan, R. (2005). General deterrence and corporate
environmental behavior. Law & Policy. Retrieved fromhttp://escholarship.org/uc/item/4t7862s1
48. Tosun, J. (2012). Environmental Monitoring and Enforcement in Europe: A Review of
Empirical Research. Environmental Policy and Governance, 22(6), 437–448.
49. Tsoukas, H. and Chia, R. (2002.) On Organizational Becoming: Rethinking Organizational
Change, Organization Science, 13, 5, 567-582.
50. Uchida, T., and Ferraro, P. J. (2007). Voluntary development of environmental
management systems: motivations and regulatory implications. Journal of Regulatory
Economics, 32(1), 37–65.
51. Vaughan, D. (1990). Autonomy, interdependence, and social control: NASA and the space
shuttle Challenger. Administrative Science Quarterly, 225-257.
52. Vaughan, D. (1996). The Challenger launch decision: Risky t echnology, culture, and
deviance at NASA. University of Chicago Press.
53. Vaughan, D. (1998). Rational choice, situated action, and the social control of
organizations. Law and Society Review, 23-61.
54. Vazquez Brust, D. A., and Liston-Heyes, C. (2010). Environmental management intentions:
an empirical investigation of Argentina’s polluting firms. Journal of environmental
management, 91(5), 1111–1122.
55. Walls, J. L., and Hoffman, A. J. (2013). Exceptional boards : Environmental experience and
positive deviance from institutional norms. J. Organiz. Behav., 34: 253–271
56. Walls, J., Phan, P., and Berrone, P. (2011). Measuring environmental strategy: Construct
development, reliability, and validity. Business & Society.
57. Wassmer, U. and, and Paquin, R. (2012). The Engagement of Firms in Environmental
Collaborations. Business & Society, 05, 405.
58. Wu, J. (2009). Environmental compliance: The good, the bad, and the super green. Journal
of environmental management, 90(11), 3363–3381.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
58
Appendices
Appendix 1: Recruiting and Interview grids of Phase 2
Recruiting script:
Good morning/afternoon,
My name is__, from the firm Advanis, calling from Montreal.
We are undertaking a confidential research on behalf of Alberta’s Ministry of Environment and
Sustainable Resource (ESRD). Our company, Advanis, is a third party involved in this research to
ensure respondents of the confidentiality of their responses.
To advance the goals of achieving world-class environmental performance, Alberta Environment
and Sustainable Resource Development (ESRD) is working to understand how it can effectively
inspire environmental excellence. To do so, they are seeking to better appreciate the business
considerations that influence facility-level environmental performances and what factors enable
or constrain environmental performance decisions.
The intent for the project is to survey facility managers and/or environmental representatives of
industrial facilities across Alberta from all sectors. The final report will be made available to
participants.
Would you be available for a 20-minute interview with one of our researchers so that your
answers can help our firm advise Environment and Sustainable Resource Development on how to
adapt its policies in the near future?
Would you be available for an interview in the next few days?
Thank you.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
59
Interview grid:
Good morning/afternoon/evening,
My name is__, I am a researcher from the firm Advanis, calling from Montreal.
Thank you for your participation in this research interview; it is designed to last less than 20
minutes and will be recorded for qualitative analysis .
We are undertaking this confidential research in order to understand “What factors influence
environmental performances among industrial facilities in Alberta?” The aggregated results will be
communicated to Alberta’s Ministry of Environment and Sustainable Resource (ESRD), as it is
reviewing its policies and needs to identify areas for possible improvement.
Your responses will remain confidential. No other information will be shared with ESRD.
Anonymity of our respondents will be strictly respected, a nd all data obtained during interviews
will be destroyed after being analyzed, and not transmitted to anyone.
There are 4 types of factors relevant to industrial facilities and to the environment that we will
discuss today.
First, I would like to know how you would describe the …
POSSIBL E IMPACT TO THE ENVIRONMENT
How would you describe the facility’s operations, in terms of possible impact to the environment?
What are the activities most important to control at your facility, in environmental terms? Were
they the same 5 years ago?
Which processes do you use to anticipate situations that could impact the environment around
your facility? Were they the same 5 years ago?
CONCERN FOR THE ENVIRONMENT
To what extent are environmental issues a consideration in day-to-day business decisions at your
facility?
Is it the same for top management, middle management, and operations?
How differently are environmental issues perceived by different departments at your facility?
What comes to your mind when you think about the community around your facility?
How would you describe the perception of your facility by the local community? Has there been
any community reaction to the environmental impact of the facility in the past?
COMPETITIVE ENVIRONMENT OF THE FACIL ITY
Does competition in the industry impact the environmental practices at your facility? How?
Would you agree that economic factors explain all environmental performance decisions? What
else could motivate environmental performance at your facility? Would you agree that lack of
profit-making or return-on-investment from environmental investments has been a barrier to
improving your facility’s environmental performance?”
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
60
In terms of resources spent on the environment, have they increased, decreased or remained the
same in the past few years, at your facility? What was this a response to? (innovation, incident
management,…)
How supportive is upper management of environmental initiatives at your facility?
What are the technical difficulties encountered at your facili ty, in environmental terms?
Would you say following ESRD requirements and guidance is a constant challenge in your business
or that there are only a few operational situations that get out of control?
In your opinion, does meeting ESRD requirements and guidance require more actions of the
managerial level or the operational level?
In your experience at your facility, the management’s strategy is to comply with current
government environmental regulations or to voluntarily anticipate future environmental
regulations? Why?
GENERAL MATTERS
Where do you find information regarding environmental matters relevant to your operational
activities?
What best represents for you the level of environmental performance of your facility?
Are you aware of any ESRD monitoring and enforcement activities at other facilities in region?
How is your company management involved in environmental decision making at the facility level?
Who is championing environmental values at your facility?
What could your company do to be a better environmental performer?
Do you think there are core values shared by people at your facility?
How would you describe the work climate at your facility?
What are the three most important motivations and barriers to environmental management at
your facility, in your experience?
These were all the questions we wanted to ask you for this research. Is there anything you would
like to add before we say goodbye?
Thank you for your time, have a great day.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
61
Appendix 2: Questionnaire Phase 3
Intro
Hello,
This research is being undert aken with the goal of answering the question: “What factors infl uence
environmental performance among indust rial faciliti es in Alberta?” The aggregated results will be shared with
Alberta’s Ministry of Environment and Sustainabl e Resource Development (ESRD) for their use in informing
options to more effectively motivate environmental excellence.
Participation in this research is voluntary, and your responses will remain confidenti al. Your anonymity will
be strictly respected: Advanis will not share any identifying information outside of our research team, and all
identifying information will be destroyed aft er anal ysis.
Your parti cipation is important to ensure the quality of our findings. A final report will be made avail able to
all survey participants.
Your collaboration is greatly appreci ated.
Nicol as Tout ant,
Project Manager,
Advanis
Valid
In this questionnaire, we are asking questions about the facility located in
.
A facility includes buildings that are on a contiguous site and under common control by an organi zation.
Are you abl e to answer questions about environmental matt ers at this facility?
Valid_terminate
We' re sorry, but this study is addressed to those responsible for environment al matters at this particul ar
facility. Thank you for your time.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
62
Q1
Does your organi zation operat e in more than one country?
Don't know
Q2
Where is your organi zation headquart ers locat ed?
Don't know
Q3
In what province is your organi zation headquart ers locat ed?
Edwards Island
Saskat chewan
Don't know
Q4
Is your organization headquarters located at your facility ()?
Don't know
63
Q5
How many facilities does your organi zation have in Alberta, includi ng yours?
(If you are not sure, please provide your best estimation.)
___________
Don't know
Q6
How many empl oyees work at your facility?
(If you are not sure, please provide your best estimation.)
___________
Don't know
Q7
How would you cl assify the average annual employee turnover at your facility?
Don't know
Q7a
Is this due to seasonal vari ations?
Don't know
Q8
How many years ago was the facility built?
(Please provide an answer in numbers of years. If you are unsure of the exact number, please provi de your
best estimation.)
___________years
Don't know
64
Q8a
Has your facility undergone any maj or techni cal upgrades since it was built?
Don't know
Q8b
In what year did your facility last undergo its most recent major technical upgrade?
___________
Don't know
Q9
Who holds the primary responsibility for investment decisions in envi ronment at your facility?
compliance, sustainability, etc.)
Don't know
Q9b
Who holds the primary responsibility for the implementation and monitoring of environmental improvements
at your facility?
President
Don't know
65
Q9a
When envi ronment al incidents occur at your facility, what groups are involved with the response and solution
development (consider the past 5 years )?
Yes No
a. Research and innovation
b. Marketing
c. Finance
d. Operations
e. Legal
f. Environment
g. Other (speci fy):
Q10
To what extent do you agree that the following factors have encouraged the adoption envi ronmental
improvements at your facility within the last 5 years ?
Q10a
Satisfying investor (owner) desi res to reduce environmental risks and liabilities
Does not apply
Don't know
Q10b
Protecting or enhancing the value of the facility or parent organization for invest ors (owners)
Strongly Agree
Does not apply
Don't know
66
Q10c
Satisfying lenders’ desires to reduce environment al risks and liabilities
mewhat Agree
Does not apply
Don't know
Q10d
Upper management's encouragement of facility parti cipation in voluntary envi ronment al programs
Neither Agree nor Disagree
Does not apply
Don't know
Q10e
Clear internal environment al polici es or standards that apply to all facilities within the organization
Agree nor Disagree
Does not apply
Don't know
Q10f
Upper management's beli ef in a moral responsibility for prot ecting the environment
Disagree
Does not apply
Don't know
67
Q10g
Upper management's support of envi ronment al improvements even if costs are substantial
Disagree
Does not apply
Don't know
Q10h
Upper management’s belief that improvements in envi ronment al performance can increase long -term profits
Strongly Disagree
Does not apply
Don't know
Q10i
Ensuring a good corporate image
Does not apply
Don't know
Q10j
Medi a coverage of an environmental incident invol ving your company or your facility
Does not apply
Don't know
68
Q10k
Keeping up with competitors’ envi ronmental improvements
Does not apply
Don't know
Q11_1
Please rank the top three most influenti al factors that have led to environment al improvements at your facility
within the last 5 years.
(Please sel ect the top 3 choi ces.)
__ Satisfying invest or (owner) desires to reduce environment al risks and liabilities
__ Protecting or enhancing the value of the facility or parent organi zation for investors (owners)
__ Satisfying lenders’ desi res to reduce envi ronmental risks and liabilities
__ Upper management's encouragement of facility participation in volunt ary environmental programs
__ Clear internal envi ronmental poli cies or standards that apply to all faciliti es
__ Upper management's belief in a moral responsibility for protecting the envi ronment
__ Upper management's support of environmental improvements even if costs are subst anti al
__ Upper management’s beli ef that improvements in environmental performance can increase long-term
profits
__ Ensuring a good corporat e image
__ Media coverage of an environment al incident involving your company or your facility
__ Keeping up with competitors’ environmental improvements
Don't know
69
Q11_2
Whi ch of these has been the most influential factor leading to environment al improvements at your facility
within the last 5 years?
(Please rank in order.)
__ Satisfying invest or (owner) desires to reduce environment al risks and liabilities
__ Protecting or enhancing the value of the facility or parent organi zation for investors (owners)
__ Satisfying lenders’ desi res to reduce envi ronmental risks and liabilities
__ Upper management's encouragement of facility participation in volunt ary environmental programs
__ Clear internal envi ronmental poli cies or standards that apply to all faciliti es
__ Upper management's belief in a moral responsibility for protecting the envi ronment
__ Upper management's support of environmental improvements even if costs are subst anti al
__ Upper management’s beli ef that improvements in environmental performance can increase long -term
profits
__ Ensuring a good corporat e image
__ Media coverage of an environment al incident involving your company or your facility
__ Keeping up with competitors’ environmental improvements
Don't know
Q11a
Can you think of other factors that have influenced the adoption of envi ronment al improvements at your
facility over the last 5 years?
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
Don't know
70
Q11b
Whi ch of these indust ry associations does your organi zation belong to?
(Please sel ect all that apply.)
Power Producers Soci ety of Albert a
Alberta Used Oil Management Associ ation
None of the above
Don't know
Q11c
Is your organization a member of any other industry associations?
Don't know
Q11d
Does your facility / organization belong to an industry associ ation that:
(Please sel ect all that apply.)
training
-government partners
None of the above
Don't know
71
Q12
To what extent do you agree that the following factors have influenced environmental improvements at
your facility in the last 5 years?
Q12a
Customers' desire for envi ronmentally friendly products and servi ces
Agree
Don't know
Q12b
Ability to earn public recognition or customer goodwill with environment ally fri endly actions
e nor Disagree
Don't know
Q12c
Pressure from environment al interest groups
Don't know
Q12d
Complying with current government environmental regul ations
Don't know
72
Q12e
Desi re to be better prepared to meet anticipated environmental regul ations
Don't know
Q12f
The local community's perception of the facility
Agree nor Disagree
Don't know
Q12g
Keeping up with competitor environment al improvements
Don't know
Q12h
Meeting industry st andards
Don't know
Q12i
Medi a coverage of an industry-relat ed environment al incident
Neither Agree nor Disagree
Don't know
73
Q13_1
Please rank the top three most influencial factors that have led to envi ronment al improvements at your facility
within the last 5 years.
(Please sel ect your top 3 choices.)
__ Customers' desire for environmentally friendly products and services
__ Ability to earn public recognition or customer goodwill with envi ronment ally fri endly actions
__ Pressure from envi ronment al interest groups
__ Complying with current government environment al regulations
__ Desire to be bett er prepared to meet anti cipat ed environment al regulations
__ The local community's perception of the facility
__ Keeping up with competitor improvements
__ Meeting indust ry standards
__ Media coverage of an indust ry-rel ated envi ronmental incident
Don't know
Q13_2
Whi ch of these has been the most influencial factor leading to envi ronment al improvements at your facility
within the last 5 years?
(Please rank in order.)
__ Customers' desire for environmentally friendly products and services
__ Ability to earn public recognition or customer goodwill with envi ronment ally fri endly actions
__ Pressure from envi ronment al interest groups
__ Complying with current government environment al regulations
__ Desire to be bett er prepared to meet anti cipat ed environment al regulations
__ The local community's perception of the facility
__ Keeping up with competitor improvements
__ Meeting indust ry standards
__ Media coverage of an indust ry-rel ated envi ronmental incident
Don't know
Q14
Over the last 12 months, did your facility make a volunt ary cont ribution of time, money or other resources to
the community nearest to your facility?
Other (speci fy):
No
74
Q15
How frequently is your facility inspect ed by an environmental agency?
Don't know
Q16
To what extend do you agree that there is good mutual understanding bet ween your facility and the regulat or?
Don't know
Q17
Please indicate whether you agree or disagree that the following factors are barriers to the adoption of
environmental improvements at your facility.
Q17a
High upfront investment expense
Somewhat Disagree
Don't know
Q17b
Cost of staff training
Don't know
75
Q17c
High day-to-day costs
Strongly Agree
Don't know
Q17d
Significant upfront time commitment to implement
Strongly Disagree
Don't know
Q17e
Uncert ain future benefit
Don't know
Q17f
Risk of downtime or delivery interruptions during implement ation
Don't know
Q17g
Complexity of int erpreting regulations
Strongly Disagree
Don't know
76
Q17h
Lack of return on investment
Don't know
Q17i
Not required by law
Somewhat Agree
Don't know
Q18_1
Please rank the top three most signifi cant barri ers to the adoption of environmental improvements at your
facility.
(Please sel ect your top 3 choices.)
__ High upfront investment expense
__ Cost of staff training
__ High day-to-day costs
__ Significant upfront time commitment to implement
__ Uncert ain future benefit
__ Risk of downtime or delivery interruptions duri ng implement ation
__ Complexity of interpreting regul ations
__ Lack of return on investment
__ Not requi red by law
Don't know
77
Q18_2
Whi ch of these factors you have indi cat ed is the most signifi cant barrier to the adoption of environment al
improvements at your facility?
(Please rank in order.)
__ High upfront investment expense
__ Cost of staff training
__ High day-to-day costs
__ Significant upfront time commitment to implement
__ Uncert ain future benefit
__ Risk of downtime or delivery interruptions duri ng implement ation
__ Complexity of interpreting regul ations
__ Lack of return on investment
__ Not requi red by law
Don't know
Q19
For your facility, please indi cat e whether or not the followi ng practi ces have been implement ed?
Yes No Don't know
a. Document ed environmental policy
b. Internal environmental audits at
regul ar int ervals
c. External environmental audits at
regul ar int ervals (by a third party)
d. Periodi c publishing of
environmental performance
information to the publi c
e. Environment al Certi fication (e.g.,
ISO 14001 certification)
f. Facility envi ronment al achievements
are published in annual reports
g. Environment al Management System
78
Q20
In the past 5 years, has the level of investment in environmental infrast ruct ure or improvements at your
facility…
Don't know
Q21
For your facility, please indi cat e the extent of your agreement or disagreement with the following stat ements:
Q21a
Environment al responsibility is emphasi zed through well -defined envi ronmental poli cies and procedures
Don't know
Q21b
Our environmental standards are more stringent than mandatory government al requirements
Don't know
Q21c
We conduct environment al audits for our own performance goals, not just for compli ance
Don't know
79
Q21d
We are well informed about the best practices in envi ronment
Strongly Agree
Don't know
Q22
For each of the following items, how would you describe the envi ronmental performance at your facility in
the past 5 years.
Improved Slightly
improved
Remained
the same
Slightly
deteriorat ed
Det eriorat ed Does not
apply to
your
facility
Do not
know
a. Wat er quality
b. Wat er use
c. Air emissions
d. Land management and
reclamation
e. Wildlife and biodiversity
f. Noise pollution
g. Odour pollution
h. Wast e management
80
Q23
For your facility, please indi cat e the level of compli ance with regul atory st andards for the following item(s)
…
Working
towards
meeting
regul ations
Meeting
regul atory
standards
Doing more
than
regul ation
requi res
Not
regul at ed at
our facility
Don't know
a. Wat er quality
b. Wat er use
c. Air emissions
d. Land management and recl amation
e. Wildlife and biodi versity
f. Noise pollution
g. Odour pollution
h. Wast e management
81
Q23a
In the following domain(s), would you say you exceed the regulat ory standards or requirements by a slight or
a large margin?
By a slight
margin
By a large
margin
Don't know
a. Wat er quality
b. Wat er use
c. Air emissions
d. Land management and recl amation
e. Wildlife and biodi versity
f. Noise pollution
g. Odour pollution
h. Wast e management
82
Q23b
On what basis would you say you are abl e to achieve the mentioned results?
On a
regul ar
basis
On a
frequent
basis
On an
occasional
basis
Don't know
a. Wat er quality
b. Wat er use
c. Air emissions
d. Land management and recl amation
e. Wildlife and biodi versity
f. Noise pollution
g. Odour pollution
h. Wast e management
83
Q24
Please rank the overall top three most influential factors for envi ronment al improvement.
(Please sel ect the top 3 choi ces.)
__ Satisfying invest or (owner) desires to reduce environment al risks and liabilities
__ Protecting or enhancing the value of the facility or parent organi zation for investors (owners)
__ Satisfying lenders’ desi res to reduce envi ronmental risks and liabilities
__ Upper management's encouragement of facility participation in volunt ary environmental programs
__ Clear internal envi ronmental poli cies or standards that apply to all faciliti es
__ Upper management's belief in a moral responsibility for protecting the envi ronment
__ Upper management's support of environmental improvements even if costs are subst anti al
__ Upper management’s beli ef that improvements in environmental performance can increase long -term
profits
__ Ensuring a good corporat e image
__ Media coverage of an environment al incident involving your company or your facility
__ Keeping up with competitors’ environmental improvements
__ Customers' desire for environmentally friendly products and services
__ Ability to earn public recognition or customer goodwill with envi ronment ally fri endly actions
__ Pressure from envi ronment al interest groups
__ Complying with current government environment al regulations
__ Desire to be bett er prepared to meet anti cipat ed environment al regulations
__ The local community's perception of the facility
__ Keeping up with competitor improvements
__ Meeting indust ry standards
__ Media coverage of an indust ry-rel ated envi ronmental incident
__ High upfront investment expense
__ Cost of staff training
__ High day-to-day costs
__ Significant upfront time commitment to implement
__ Uncert ain future benefit
__ Risk of downtime or delivery interruptions duri ng implement ation
__ Complexity of interpreting regul ations
__ Lack of return on investment
__ Not requi red by law
Don't know
84
Q24_2
What is the overall most influential fact or for envi ronment al improvement?
(Please rank in order.)
__ Satisfying invest or (owner) desires to reduce environment al risks and liabilities
__ Protecting or enhancing the value of the facility or parent organi zation for investors (owners)
__ Satisfying lenders’ desi res to reduce envi ronmental risks and liabilities
__ Upper management's encouragement of facility participation in volunt ary environmental programs
__ Clear internal envi ronmental poli cies or standards that apply to all faciliti es
__ Upper management's belief in a moral responsibility for protecting the envi ronment
__ Upper management's support of environmental improvements even if costs are subst anti al
__ Upper management’s beli ef that improvements in environmental performance can increase long -term
profits
__ Ensuring a good corporat e image
__ Media coverage of an environment al incident involving your company or your facility
__ Keeping up with competitors’ environmental improvements
__ Customers' desire for environmentally friendly products and services
__ Ability to earn public recognition or customer goodwill with envi ronment ally fri endly actions
__ Pressure from envi ronment al interest groups
__ Complying with current government environment al regulations
__ Desire to be bett er prepared to meet anti cipat ed environment al regulations
__ The local community's perception of the facility
__ Keeping up with competitor improvements
__ Meeting indust ry standards
__ Media coverage of an indust ry-rel ated envi ronmental incident
__ High upfront investment expense
__ Cost of staff training
__ High day-to-day costs
__ Significant upfront time commitment to implement
__ Uncert ain future benefit
__ Risk of downtime or delivery interruptions duri ng implement ation
__ Complexity of interpreting regul ations
__ Lack of return on investment
__ Not requi red by law
Don't know
85
Q26
Finally, we would like to know if your organi zation is publi cly traded, privately owned or is
governmental/municipal?
Publicly traded
Don't know
Q27
What is your organi zation's average yearly revenue?
illion a year
Don't know
end
Thank you very much for compl eting the survey!
Status Code: -1
86
Appendix 3: Interview grids of Phase 4
The i ntervi ew gri ds (A, B, C) proposed here evolved after the f irst intervi ews in order for subsequent data
col lecti on (interview grid 2) to shed light on emergi ng themes.
Grid A
Our i nitial results show that for more than 90% of managers i nvolved in decision making at faci li ties, one of
the most important drivers of improved perf ormance is regulati on
17
.
1. So the questi on we woul d l ike to ask you is: why do regulations work?
2. Can y ou think of other reasons?
3. How do you balance the regulatory changes and the costs involved for other envi ronmental
improvements?
4. In your opinion, i n the l ong term, how coul d ESRD better encourage formal practices of envi ronmental
reporti ng at facil iti es i n Alberta?
Grid B
Our i nitial results show that external factors play a role for envi ronmental improvements at faci lities. So we
would like to ask...
1. Whi ch external factors have i nfl uenced env ironmental decisi on making at y our facil ity?
2. How do they relate to your organizati on’s corporate image?
3. How woul d you describe the implementati on of envi ronmental improvements (ISO certifi cati on, if
appl icable) at y our facil ity?
4. In your opinion, how can ES RD better encourage an organizational dynami cs of envi ronmental
improvement at your faci li ty?
Grid C
Our i ni tial results show that one of the factors that play a role for envi ronmental improvements at faci lities
is that managers believe envi ronment performance can i ncrease prof it in the long term.
1. In your experi ence, what can lead them to bel ieve envi ronment performance can i ncrease profi t in the
long term?
2. And how do thei r environmental val ues come into play in a competitive env ironment?
3. In your opinion, how could ESRD further i ts goal to achi eve worl d-class envi ronmental perf ormance and
to motivate envi ronmental excellence i n Al berta?
17
They say exactly that in the last 5 years, compl ying with government regulations has influenced environmental
improvements at thei r facility.
87
Interview grid 2
Regulati on was identif ied as a very i mportant factor for envi ronmental perf ormance.
1. How does it play a rol e in improving environmental performance? (In other words, "why do
regulati ons work?")
2. How would y ou describe the ef fects of i nspections at faci lities?
Other factors appeared to be important for envi ronmental perf ormance.
3. Would y ou say that staff awareness of environmental issues at facil ities also has an impact? Why?
4. Would you say that people’s awareness of envi ronmental i ssues i n the i ndustry also has an impact?
Why?
5. When you thi nk of current initiatives for envi ronmental i mprovement at your faci li ty, would you say
they are wel l supported by the Government of Al berta? Why?
6. What are the current chall enges for the regulators, i n your opi nion?
7. In your opi ni on, how could they be better addressed?
88
Appendix 4: Questionnaire Phase 5
Intro
Hello
I am happy to share with you the most influential factors of environmental performance that were identi fied
through our research to dat e.
Our survey findings indi cat e that these are: regul ation and corporat e values.
We also identi fi ed a few challenges for the regul ator.
Follow-up int ervi ews provided some insights on why these el ements influence environment al excell ence, and
we would like your feedback to validate these.
Answering this should not take more than 3 minutes.
I would like to thank you personally for your parti cipation in the process; this research would not have been
possible without your support.
Regards,
Nicol as Toutant,
Project Manager,
Advanis
ntoutant @advanis.net
89
Q1
Regulation was identi fi ed as a very import ant factor that influences environment al performance. Please tell us
the ext ent to which you agree, somewhat agree, somewhat disagree, or disagree with the followi ng statements
that come from the survey results and interviews.
Disagree Somewhat
disagree
Somewhat
agree
Agree Do not
know
h. Regulation plays a role in cl ari fying
the levels of expectations for
environmental performance
?
1
?
2
?
3
?
4
?
5
i. Regulation plays a role in equali zing
the levels of environment al
performance among competitors (A
level pl aying fi eld exists for all
facilities)
?
1
?
2
?
3
?
4
?
5
j. Regulation helps environmental
managers at the facility advocat e for
improvement to upper management.
?
1
?
2
?
3
?
4
?
5
k. Inspections are import ant because
they help our empl oyees and
management focus on environmental
issues.
?
1
?
2
?
3
?
4
?
5
l. Regulation is the single most
important driver of environmental
progress in our industry.
?
1
?
2
?
3
?
4
?
5
m. Regulation by prescribing a level of
environmental performance does not
encourage envi ronment al innovation
?
1
?
2
?
3
?
4
?
5
Q2
Our results show that corporat e image and social values are import ant factors influenci ng envi ronment al
performance. Please t ell us the extent to which you agree, somewhat agree, somewhat disagree, or disagree
with the following stat ements that come from the survey results and interviews.
Disagree Somewhat
disagree
Somewhat
agree
Agree Do not
know
h. Our management would be open to
advi ce from government offi cials
that could help improve our
environmental performance.
?
1
?
2
?
3
?
4
?
5
i. An import ant barri er to
environmental performance comes
from the di ffi culty of changing
working habits and mindsets.
?
1
?
2
?
3
?
4
?
5
j. The fact that the staff is advocating
for environment al improvement has
led to environmental progress in our
organization.
?
1
?
2
?
3
?
4
?
5
k. A formal recognition of our efforts
to go beyond compliance woul d
motivate our empl oyees and
management to do more.
?
1
?
2
?
3
?
4
?
5
90
Q3
The results also show there were chall enges to be addressed by the regulat or. Please tell us the ext ent to which you
agree, somewhat agree, somewhat disagree, or disagree with the following st atements that come from the survey
results and interviews.
Disagree Somewhat
disagree
Somewhat
agree
Agree Do not
know
i. Current regulations are cl ear (the
requi rements are easy to understand)
?
1
?
2
?
3
?
4
?
5
j. Current regulations are equally
enforced across facilities in the same
sector
?
1
?
2
?
3
?
4
?
5
k. Current regulat ory levels are
suffi cient to control our facility’s
impact on the envi ronment (impact
rel ates to both the resource use and
emissions (i.e. conservation,
effi ci ency and environmental
quality))
?
1
?
2
?
3
?
4
?
5
l. Current regulat ory syst em
encourages beyond compliance
performance
?
1
?
2
?
3
?
4
?
5
Q3a
Do you have any comments or elements you would like to add?
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
?
-9
No
?
-8
Do not know
Q4
Thank you for taking the time to consider the preliminary results.
Please note that you are invited to share your thoughts on envi ronment al challenges by leaving a message at 1-514-
375-2423.
We are genuinely int erested in your opinion and we will receive your comments anonymously.
Status Code: -1
doc_995818995.pdf
This research indicates that environmental performance at facilities interplays with a number of organizational and social factors
Understanding Organizational Decision Making Related to Environmental Performance
Final report : June 20, 2014
Presented to:
Government of Alberta
Environment and Sustainable Resource Development
Presented by:
Advanis Inc.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
2
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
3
Executive summary
Designed to understand “What factors influence environmental performances among regulated facilities
in Alberta?” this research relied on a sequence of phases :
? an initial documentation and literature review;
? a first series of interviews with managers at facilities, to identify explicit factors;
? a quantitative validation of explicit factors by managers at facilities (N=264);
? a second series of interviews to precise the factors’ implicit dimensions;
? a quantitative validation of managers’ perceptions at facilities (N=130).
Our results rank regulation as the most important driver of environmental improvement at facilities and
provide a quantitative measure of its relative importance compared with the other significant factors
described by responders of our survey.
Our results also show there may be potential beneficial actions complementary to regulation, and open
avenues of research for environmental performance improvement and for policy design.
Indicators of environmental
performance
FACTOR
Investor pressure
(Q10A-Q10B-Q10C)
FACTOR
Management
value and
involvement
(Q10D-Q10E-Q10F-
Q10G-Q10H)
FACTOR
Impact on
profitability
(Q17A-Q17B-Q17C-
Q17D-Q17E-Q17F-Q17H)
FACTOR
Corporate image
(Q10J-Q12I-Q10I-Q12A-
Q12B-Q12C-Q12F)
Facilities practices
(Q19A-Q19B-Q19C-Q19D-Q19E-Q19F-
Q19G)
Facilities standards
(Q21A-Q21B-Q21C-Q21D)
FACTOR
The regulation
(Q12D-Q12E-Q12H)
FACTOR
Competitors
improvements
(Q10K-Q12G)
FACTOR
Difficulties complying with regulation
(Q17G-Q17I)
FACTOR
Barriers to
improvement
(impact on profitability and
difficulties complying with
regulation )
Perception of compliance
(Q23H)
-
+
+
+
-
+
+
?
?
Relations between factors that influences environmental performance and the
indicators of environmental performance
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
4
This research indicates that environmental performance at facilities interplays with a number of
organizational and social factors. Innovative mechanisms for policy making can already be conceived by
taking into account explicit and implicit factors for environmental improvement.
Thus, Understanding Organizational Decision Making Related to Environmental Performance will allow
Alberta ESRD to use new knowledge and understanding that can support options that seek higher levels
of performance, as part of the focused effort of the Government of Alberta to move forward in
establishing priority initiatives pertinent to the environment.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
5
Table of contents
Introduction............................................................................................................................................ 6
Research outline .................................................................................................................................. 7
Phase 1 – Document review.................................................................................................................. 10
1.1 Factors that influence environmental performance at facilities ................................................ 10
1.2 Literature review...................................................................................................................... 10
1.3 Factors for qualitative data collection....................................................................................... 16
Phase 2 – Semi-structured interviews ................................................................................................... 20
2.1 Phase 2 Research in Context..................................................................................................... 20
2.2 Phase 2 research results........................................................................................................... 21
Phase 3 – Online Survey........................................................................................................................ 25
3.1 Introduction ............................................................................................................................. 25
3.2 Data collection methodology and questionnaire ...................................................................... 25
3.3 Building a model of indicators of environmental performance and factors ............................... 26
3.4 Results ..................................................................................................................................... 30
3.5 Results and development of the final statistical model of analysis ............................................ 35
3.6 Summary of Key Findings ......................................................................................................... 41
Phase 4 – In-depth Qualitative I nterviews ............................................................................................ 42
4.1 Interview grid design (Phase 4)................................................................................................. 42
4.2 Results ..................................................................................................................................... 43
Phase 5 – Validation.............................................................................................................................. 49
5.1 Links with scientific literature................................................................................................... 49
5.2 Questionnaire and Data collection ........................................................................................... 50
5.3 Results ..................................................................................................................................... 51
Conclusion ............................................................................................................................................ 53
Bibliography.......................................................................................................................................... 55
Appendices ........................................................................................................................................... 58
Appendix 1: Recruiting and Interview grids of Phase 2 ....................................................................... 58
Appendix 2: Questionnaire Phase 3.................................................................................................... 61
Appendix 3: Interview grids of Phase 4............................................................................................... 86
Appendix 4: Questionnaire Phase 5.................................................................................................... 88
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
6
Introduction
The Government of Alberta’s strategic decisions, meant to position Alberta for the future, have led to a
focused effort to move forward in establishing priority initiatives for the environment. An integrated
resource management system is being developed to achieve the environmental, economic, and social
outcomes Albertans expect from resource development and to maintain the social licence to develop
resources.
The implementation of the Cumulative Effects Management System (CEMS) will allow the Ministry of
Environment and Sustainable Resource (ESRD) to account for the combined effects of past, present, and
foreseeable human activities and to manage activities that impact the environment, economy, and
society. It reflects the Government of Alberta’s move toward a more integrated approach to managing
natural resources in the province. It implies that outcomes are meant to be measured and evaluated
continuously and that management actions can be applied throughout the system
1
. Locally, the
development and implementation of regional plans, as identified by the Land-use Framework, will
enable the management of the province’s land and natural resources to achieve Alberta’s long-term
economic, environmental, and social goals.
In order for ESRD to develop new knowledge and understanding that can support options that seek
higher levels of performance and to achieve the goals of continuous improvement and environmental
excellence within an enhanced regulatory system, it is necessary to understand which factors are
influencing environmental performance beyond compliance decisions in the Alberta context and the
degree to which they enable or constrain environmental performance.
Understanding Organizational Decision Making Related to Environmental Performance aims at better
understanding the various factors that influence environmental performance decision making—relevant
to regulated facilities in Alberta—and the variation in environmental performance objectives.
This mixed-method research aims to identify the explicit (clearly expressed) and implicit (implied but not
directly expressed) factors influencing environmental performance beyond compliance at a facility level
with the aim of supporting future policy development and program design on environmental
performance and excellence. In a sequence of five research phases occuring from November 2013 to
June 2014, the research project addressed the following question:
“What factors influence environmental per formances among regulated facilities in Alberta?”
1
Alberta's Environmental Protection a nd Enhancement Act (EPEA) and a ccompanying regulations set out in detail which activities require
approvals and the process for obtaining them.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
7
Research outline
Phase 1 of the research started in November 2013. This phase consisted of a review of the following:
? Academic literature;
? Existing documents developed by ESRD to guide this research (i.e. preliminary scoping document,
literature review, and conceptual framework; results from internal focus groups);
? Other relevant information regarding the regulatory framework in Alberta . The focus was on the
establishment of the research context:
? Developing an understanding of the regulatory framework;
? Defining criteria of performance beyond compliance (facility level);
? Determining factors influencing environmental practices and processes;
? Determining relevant measures for each explicit factor influencing compliance or performance
beyond compliance.
This helped develop an interview grid for the following phase of semi -structured interviews.
Phase 2 of the research consisted of a series of preliminary semi -structured qualitative interviews to
explore the variations in practices and processes. These interviews were conducted with managers at
facilities identified in the ESRD sample.
The interviews aim to validate the relevance of explicit factors within the Alberta context and refine
explicit factors with emergent data in order to account for variations of practices and processes
regarding compliance or performance beyond compliance.The results helped formulate questions
intended to achieve the following objectives :
? Detail the profile of facilities taking part in the research;
? Measure each identified factor;
? Measure indicators of environmental performance beyond compliance.
Phase 3 included a quantitative description (web survey) of actual environmental practices and
processes for the population under study
2
and the explicit factors contributing to those practices and
processes at industrial facilities. The phase included the following:
? Telephone invitation;
? Web survey;
? Telephone follow up of non-responders.
The survey results helped establish the following:
? A description of the organization’s profile (facilities’ main characteristics);
? The data to analyse the influence of explicit factors on the indicators of environmental performance
beyond compliance;
2
The population of approximat ely 680 facilit ies generated answers from 264 participat ing respondents at facilit y l evel . The
detai l of the s ampl e and results is present ed in sect ion 3.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
8
? The indicator data to support the identification/qualification of environmental performance beyond
compliance.
Phase 4 explored in depth the implicit factors influencing environmental performance decisions, as
described by responders of the Phase 3 survey. Participants were contacted as a follow-up of semi-
structured interviews. Qualitative data was collected and analysed to investigate how and why those
factors influenced environmental performance beyond compliance. This phase included the following:
? In-depth interviews;
? Identification ofthe implicit factors influencing environmental performance beyond compliance;
? Understanding of the dynamic interplay of explicit and implicit factors contributing to decision
making regarding environmental performance beyond compliance;
? Identification of factors to explore further in Phase 5.
Phase 5 confirmed explicit and implicit factors that emerged from the preceding phases, with a short
follow-up web survey
3
that was circulated to facility representatives who had participated in the initial
quantitative survey. Respondents were presented with the factors identified in Phase 3. This final phase
also included the following:
? A final qualitative validation comparing interplay of identified factors with existing theoretical
models;
? A presentation of the research findings.
Advani s Research Team:
Nicolas Tout ant: Project manager
Thomas Foulquier: Methodology and qualitative research expert
Adriana Bernardino: Quantitative expert
Diane Holland: Research manager
Mélanie Drisdelle: Programmer and analyst
Johann Walter: Copy editor
3
Note that 130 respresentatives of facil ities responded out of 221.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
9
Research Outline
Question: “What factors influence environmental performances among regulated
facilities in Alberta?”
Setting Research
Context
Exploratory
Analysis
Quantitative
Model
Validation
Final
Validation
Model
Fine-
Tuning
Document and
literature review
Identif y f actors that
could potentially
inf luencebehavior
3 weeks 3 weeks 3 months 1 month 1 month
Probingf actors
identif ied in stage 1
and identif ying new
f actors
Theoretical model to
betested through a
quantitative approach
Validation of theoretical
model through
quantitative dataanalysis
Validated model and
additional questions f or
clarif ication
In- depth
investigation of main
f actors
Enriched and dynamic
understandingof
most important
f actors
Validation of new
dimensions of
interplaying f actors
Factors validated and
linked to scientif ic
literature
Approach
Outcome
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
10
Phase 1 – Document review
1.1 Factors that influence environmental performance at facilities
In order for ESRD to develop new knowledge that can support options to achieve higher levels of
performance and to reach the goals of continuous improvement and environmental excellence within
an enhanced regulatory system, it was necessary to understand which factors were influencing
environmental performance decisions in the Alberta context and the degree to which they enable d or
constrained environmental performance. This will help improve a regulatory system that responds to
realities that drive environmental performance.
To better understand the various factors that influence environmental performance decision making at
regulated facilities and the variation in environmental performance behaviours that exist, we first
established the research context by reviewing the existing documents produced by the ESRD Project
Team
4
. When distinguishing between “compliance” and “performance,” (performance beyond
compliance) the research team considered that performance should mean that which is above minimum
standards (compliance).
Secondly, we reviewed literature to identify some of the explicit and implicit factors influencing
environmental performance beyond compliance at a facility level. Explicit factors, for instance, may
include the size of the organization and can be described quantitatively, while values held by managers
are likely to be implied but not directly expressed (implicit factors, to be described in the qualitative
phase of research).
In order to design the interview grid used for the following phase of semi-structured interviews—with
relevant indicators for each explicit factor influencing compliance or performance beyond compliance—
we expanded the information provided by ESRD
5
with a review of recent academic literature on the
subject matter.
1.2 Literature review
In examining what motivates or influences environmental performance, the academic literature
identified a range of external and internal factors that may interact to varying degrees to shape
environmental processes and outcomes of a firm or facility.
We studied the Literature Review and Conceptual Framework provided by ESRD, the factors identified
through ESRD Internal Focus Group Sessions, and additional relevant literature. This helped identify
external and internal factors that play a role in influencing environmental performance at the facility
4
i.e. the Land-Use Framework and the Cumulative Effects Management System, scopi ng document, including the research i ntent, proj ect scope,
data consi derations, considerations for the research methodology, which were provided at the beginning of the project. We als o reviewed a
number of internal documents later provided by ESRD, includi ng the internal ESRD focus group sessions summary.
5
Literature Review and Conceptual Framework, and the Internal ESRD Focus Group Sessi ons Summary.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
11
level. Finally, we integrated our findings from the literature review into the framework proposed by the
Oregon Business Decisions for Environmental Performance instrument (Wu, 2009).
1.2.1 Factors appearing in the scientific lit erature
The Standard Economic Theory characterizes organizations as profit-driven rational actors. This
predominant belief is a foundational argument for regulatory deterrence (Khanna 2001; Gunningham et
al. 2005). According to this view, regulators prosecute violators for non-compliance and remind all
regulated parties that these violations come at a high cost .
However, research indicates that other motivating factors may be at play. For instance, as firms go
beyond compliance in their environmental performance (Wu 2009), their behavior challenges Standard
Economic Theory. The relative frequency with which firms have chosen to do so has led to research into
what drives firms to perform beyond regulatory expectations.
To better understand the factors that may influence the environmental performances of facilities, our
research approaches the scientific literature with a broader view of organization. Organizational
outcomes and decision making have indeed long puzzled organization researchers, as these questions
find their roots in the great debates of social science and humanities .
In a landmark contribution to organizational science, Allison's Essenc e of Decision (1971) considered
three levels of analysis (“Rational Actor” Model, “Organizational Process” Model, and “Governmental
Politics” Model) in his attempt to understand the factors at play in a complex decision-making process
and outcome.
The interaction between corporate environment, cultural factors, and managerial sensemaking to
explain the Challenger Launch Decision was investigated by Vaughan (1996). Her work also gives
evidence of the need to take into account in organizational analysis, beyond organizational
characteristics, and existing factors at individual and corporate culture levels. Vaughan’s approach
6
is
especially useful to understand situations resulting from decisions retrospectively appearing as negative
organizational outcomes. Such decisions are linked to a decision-making process she labels as
“organizational deviance.”
Taking an even closer look at the decision-making process and experience, Tsoukas and Chia (2002)
propose to consider the organization as emergent, constantly recreated in every situation by its actors.
6
“When re gulatory failure occurs in the monitoring of an organi zation that deals in high-risk technology, the resulting accident may be thought
of as an organizational-technical system accide nt: a potentially avoidable technical system acci dent resulting from the failure of the technical
components of the product, the organization responsible for its production and use, and the regulatory organizations designe d to oversee the
entire operation. The failures of the producer and regulatory organizations are failures of foresight, arising from organi zat ional patterns that
block proble m identification and correction in the pre-accident incubation period. Such an accide nt cannot be explai ned by the failure of the
technical system alone. The organization malfunctions, failing to correct a correctable technical proble m. T he regul atory organization charge d
with surveillance of the technical product and the organization' s per formance fails to resolve the problems in both. The result is an
organizational-te chni cal system acci dent, perhaps of catastrophic pr oportion. ” (Vaughan, 1990)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
12
In light of these contributions, we pursued a pragmatic approach to the research question: “What
factors influence environmental performances among regulated facilities in Alberta?”
In other words, how an organization ranks environmental issues and the factors that influence
organizational behavior shape its environmental management style. At the same time, practically, it is
members of a firm or facility that will interpret external pressures, frame a problem, make decisions,
and implement solutions.
We present here a series of recent reviews and case studies that list factors playing a role in
environmental decision making regarding organizational compliance and performance beyond
compliance. The outcomes are observed at the facility level.
A review by González-Benito and González-Benito (2010) of the determinant factors of stakeholder
environmental pressure as perceived by industrial companies shows that company features ( e.g. size,
internationalization, closeness to consumers in the value chain, managerial attitude and motivations,
and strategic attitude) have an impact on the perception of stakeholder environmental pressure. Also,
primary (e.g. market and regulator) and secondary (e.g. media, NGOs) stakeholders, as well as external
factors (e.g. geographical location, industrial sector) play a role.
Gray and Shimshack (2011) review the empirical evidence on the impacts of environmental monitoring
and enforcement on subsequent pollution discharges and compliance behavior. They find
environmental monitoring and enforcement activities generate “substantial speci?c deterrence” —that
is, targeted facilities increase compliance and reduce emissions for several periods following regulator
actions. Also, environmental monitoring and enforcement generates “substantial general deterrence”—
monitoring and enforcement activity spill over to increase compliance and reduce emissions at other
facilities in the regulatory jurisdiction. Thirdly, monitoring and enforcement not only improve
compliance but also encourage greater pollution reductions at plants already in compliance.
Walls et al (2011) apply an inductive approach to develop a measure for environmental strategy and
identify six main capabilities of firms to build such a strategy. Access to two types of networks matters
for corporate environmental strategy, including supply chain network, reflecting the company’s
engagement with suppliers and buyers, and other stakeholder networks, such as the association with
governments, NGOs, industry associations, communities, employees, socially responsible investors, and
voluntary programs. A firm’s history of having an environmental strategy makes it more likely to
consider the environmental impact of new strategies, products, and processes.
Endowments, seen as a combination of the amount of money a firm invests in environmental research
and development and in supporting structures such as an environmental management system or an ISO-
14001-certified environmental process, also play a part in environmental strategy. Visionary leadership
can be measured in terms of the length of the environmental vision (i.e. short or long term goals have
been set) and the depth of the vision across the organization (i.e. global or not). The environmental skills
of top management are assessed by whether the environmental manager is on the executive team and
by the reporting level of the environmental manager. Finally, human resources skills for an
environmental strategy, can be measured if the strategy includes a formal environmental training
program and environmental reporting of the organization.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
13
Holstein and Gren (2013) analyze violations of environmental regulations in Sweden. As economic
motives, environmental attitudes, and social capital factors are intertwined, traditional enforcement
instruments (e.g. monitoring and inspecting firms) are found to deter violation in all firms in all
categories. However, larger firms seem to be more responsive to environmental attitudes and have an
abundance of social capital than smaller ones.
Finger (2011), analyzing data from 2,963 plants owned by 1,867 firms , finds that firms belonging and
participating in the self-regulated Corporate Social Responsibility initiative, whose members commit to
adhere to codes of conduct, show a reduced number of accidents. Frondel et al (2008), analyzing
empirical evidence from Germany, show that innovation behavior seems to be correlated to the
stringency of environmental policy. Environmental innovation activities seem not to be associated with
environmental management systems implementation, nor any other single policy instrument.
A case study by Gunningham (2009) investigates in depth the limits of management-based regulation
and sheds light on a number of factors at the individual level that can influence aggregated behavior at
facility and firm levels. Economic factors are classically identified, including cost of safety meas ures to
workers and to their company (work load, time, etc.).
Interestingly, geographic isolation and facility operations that are distanced from management might
seem to lead to operational autonomy of workers and derogative behaviour of lower management.
Also, there are indications that low turnover of workers and high turnover of management at isolated
facilities might lead to derogative behavior.
On the other hand, safety managers’ technical and management abilities, demonstrated dedication to
safety by management, and attention given by management to workers concerns when expressed
appear to be key drivers to compliance. Also, cultural dimensions play a role at each facility. Past
incidents at facilities, depending whether they were detrimental to t he company (e.g. resulted in
financial losses) or the workforce (e.g. casualties), are framed and interpreted differently by workforce
and management (resulting in a social struggle), which will have a complex effect on compliance.
Finally, workers’ cultural factors are expressed, with a perceived irrelevance to work of safety measures,
a lack of consideration by workers for control tools symbolically estranged/foreign to their daily
activities (paper world vs practice), and a perception of social vulnera bility that might lead to the
attribution of value to a behavior of gaming that symbolic system (derogation).
In a meta-study analysis of a pool of 23 studies connecting environmental performance to
environmental management systems, Nawrocka and Parker (2009) detail how the de?nition of
performance varied across studies, as quantitative methods looked at emissions while qualitative were
more directed towards general perceptions of the issues that were of importance to a company. It
seems the effects of EMS (Environmental management systems) are not general but dependent on
other factors, such as the management style and goals of the particular company, its operating
environment, culture, and stakeholders.
Delmas and Toffel (2011) also consider how firms adopt heterogeneous sets of environmental
management practices despite facing common institutional pressures, because organizational
characteristics lead managers to interpret these pressures differently.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
14
In a study of the manufacturing sector in six countries (including Canada and the USA), Darnall et al.
(2010) show the relationship between stakeholder pressures and environmental strategy tends to vary
with firm size.
While there is a positive relationship between stakeholder pressures and the adoption of proactive
environmental practices, larger ?rms undertake more environmental practices than do smaller ?rms,
but smaller firms appear more responsive when faced with pressures from value chain, internal, and
regulatory stakeholders. A summary of the factors that play a role in environmental decision making
regarding environmental compliance and performance beyond compliance is provided in the following
tables.
Table 1
Relationship between the Firm and the Facility
Relevant factors at the f i rm and faci li ty levels i nclude the foll owi ng:
o Number of faci lities per f irm (Darnell 2009), f irm’s organi zati onal structure.
o In thei r model of i nstitutional pressures moderated by parent company and plant characteristics, Del mas
and Toffel ( 2004) i dentify factors at f irm and facil ity levels:
? Firm size, competitive posi ti on, level of international ization.
? Plant size, sources of inf ormation on envi ronmental management practi ces ( industry
associati ons. etc.), histori cal envi ronmental perf ormance at facil ity (regulatory compliance,
pol luti on levels relative to neighbors and competitors).
External pressures influencing environmental performance decisions at firm and facility levels come
from government and regulators, stakeholders, investors, competitors, consumers, and the public.
Table 2
External Factors that Influence Environmental Performance
1. Government / Regulatory Pressure
Government and regulatory pressure has an obvious role in influencing envi ronmental performance at or bel ow
compliance levels.
? Government policies and regulations, frequent i nspections, and compliance action (Henriques
and Sadorsky, 1996; Gunningham et al, 2005).
? Prosecuti on of seri ous v iolators (Thornton et al, 2005; Wu 2009; Delmas and Tof fel, 2010).
? Government education and extensi on programs or investments i n research and development
(Delmas and Toffel 2004).
2. Public / Community Pressure
Local communities, envi ronmental non-government organizations, and the media may al l exert pressure on a fi rm
to adopt new environmental performance practi ces and move beyond compliance.
? Regulatory pressure through citizen lawsuits or poli ti cal action (Gunningham et al, 2004; Delmas
and Toffel 2004).
? Levels in trust and shared val ues for envi ronmental protecti on (Sharma and Vredenburg 1998).
? Posi tive i nteracti ons wi th the publi c and local community (Gunni ngham 2004; Sharma and
Vredenburg 1997; Henri ques and Sardorsky 1998).
? Firm in a resource industry or with a history of publi c pressure ( Gunningham et al, 2005).
? Characteristics of the l ocal communi ty (e.g. population density, educati on, soci o-economi c
condi ti ons, and poli tical i nvolvement) (Delmas and Toff el 2004).
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
15
3. Shareholder / I nvestor Pressure
Investors and sharehol ders can be highly inf luential i n determi ni ng the envi ronmental perf ormance of a f irm,
though the literature offers opposing v iews on this.
? Publicly traded compani es (Sharma and Vredenburg, 1998; Wu, 2009; Hendri ques and Sadorsky,
1996, Delmas and Toffel, 2010).
? Stock market perf ormance ( Henri and Journeault 2007).
? Adopti on of highly vi sible envi ronmental practi ces ( Khanna and Speir 2007).
4. Customer / Consumer Pressure
The green consumer theory postulates that a fi rm’s envi ronmental decisi ons are related to customer and
consumer pressures.
? Consumers wi ll ing to pay more f or green products and services (Khanna 2001; Wu 2009).
? Economic sector may have infl uence over perf ormance decisi ons ( Delmas and Toff el, 2004;
Henri ques and Sadorsky, 1996).
5. Competitor / Industry Pressure
Competitive or i ndustry pressure refers to pressures occurri ng across i ndustries and/or wi thin a specif ic industrial
sector.
? Participation in trade associations ( Gunningham et al, 2005).
? Firms in competi tive markets (Darnal l 2009; Del mas and Toffel 2010).
? Firms seeki ng to diff erentiate themselves i n their sector (Khanna 2001; Delmas and Toffel 2004).
? Competitive pressure may encourage v isible forms of greenness ( Khanna and Spei r, 2007).
External pressures alone do not account for the variation amongst firms who face similar external
pressures. Coglianese and Nash (2006) assert that the variance can be accounted for, in part, in how
internal factors influence the interpretation and response to external pressures.
Table 3
Internal Factors
1. Historical environmental performance, competitiveness of firm, and the organizational structure of the
facility, (Delmas, 2004; Coglianese and Nash, 2006; Howar d- Grenville et al, 2008).
2. Firm and facility size: “total sales”, number of employees (Henri and Jour neault 2008).
3. Ownership
? The nature of fi rm ownershi p can be a factor in envi ronmental performance. Impact on the
disclosure of environmental performance i nformati on (Henri and Journeault 2008).
? Budgets for envi ronmental R&D, qual ity management systems ( Darnall 2009).
4. Organizational Character istics
Organizati onal characteristics are factors involved i n determining the perception of external pressures, wi th
internal factors playi ng a stronger role i n the behavi or of large f irms than i n small - or medium-sized enterprises.
(Howard-Grenvil le et al, 2008; Cogl ianese and Nash 2006; Gunni ngham et al, 2004; Delmas and Toff el 2004).
5. Functional Departments
Functional departments withi n a firm may impact facil ity- level envi ronmental performance (Delmas and Toffel,
2008) and i ntervene i n the interpretati on of external pressures f rom non-market constituents.
6. Industry Reputation and Competitiveness
The nature of the i ndustry and its reputati on can i mpact the expectati ons and the abil ity of a firm to demonstrate
environmental performance (Del mas and Toffe l 2010). The nature and extent to which fi rms implement speci fic
environmental policies and adopt environmental acti ons may be dependent on the industry characteristics
(Ramus and Montiel 2005; Khanna and Spei r 2007).
7. Managerial Attitudes (Coglianese, 2001; Khanna and Speir, 2007; Wu, 2009) and actions shape corporate
envir onmental performance.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
16
1.3 Factors f or qualitative data collection
1.3.1 Factors to test in the first qualitative phase
We elaborated on the framework proposed by the Oregon Business Decisions for Environmental
Performance instrument (Wu, 2009) to capture the factors and indicators, identified in the literature.
The resulting table (Table 4) was used to support the subsequent phases of this research
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
17
Table 4: “What factors influence environmental performances among regulated facilities in Alberta?”
Interview
themes
Factors in literature (to be validated byinterviewees)
? - compliance
? - performance
ESRD Focus groups insight Interviewgrid questions Indicators
(Indicators)
Wu
(2009)
Section I.
Facility
Environmental
Management
? level of concern for environmentat facility
? awareness of government education programs (Delmas
and Toffel 2004)
? attention given bymanagement to workers concern
(Gunningham, 2009)
To whatextent are environmental issues aconsiderationin dayto day
business decisions at yourfacility?
Are you aware of government trainingprograms in environment?
Is itthesamefortopmanagement, middlemanagement and operations?
Knowledgeof government education
programs (y/n)
Detection/Collection of employees
concerns : process implemented (y/n)
? external factors influencing environmental
management (Customers, public, environmentalinterest
groups)
? abundanceof social capital in the community(Holstein
& Gren, 2013)
Public andCommunity
Pressure
Customer and Consumer
Pressure
What comes to yourmind when you thinkaboutthecommunity around your
facility?
When itcomes to environmental issues, howwould youdescribe theinfluence
of environmentstakeholders external to the facility?
How would you describetheperception of your facilityby thelocal
community?
Social environment reporting: process in
place(y/n)
Facility involved in community
developmentinitiatives (y/n)
? internal factorsinfluencingenvironmental management
(strategic positioning towards investors,lenders,
government, competition)
? company features (size, internationalization, closeness
to consumers in thevalue chain, managerial attitude and
motivations, strategic attitude) - González-Benito &
González-Benito (2010)
? number of facilities per firm(Darnell 2009)
? environmental attitudeof functional departments
within firm(Delmas and Toffel, 2008), ?budgets for
environmental R&D(Darnall 2009)
IndustryCompetition Does competitionin theindustry impactenvironmental practices?How?
How would you describethe facility’s operations, in terms ofpossibleimpact
to theenvironment?
How differentlyare environmental issuesperceived bydepartments atyour
facility?
Strategic scanningof environmental
regulations (y/n)
Environmental benchmarkingprocess
(y/n)
Internal environmental reporting(y/n)
Environmental R&Din firm(y/n)
? annual revenuespenton environmentalmanagement In terms of resources (financial, human, etc.) spenton theenvironment, have
they increased,decreased or remained thesamein thepast fewyears, at your
facility?
Increase (y/n)
?? facility's upper management' involvement and
attitude regarding environmental concerns (Coglianese,
2001; Khannaand Speir,2007).
Managerial attitudes How supportingis uppermanagementof environmental initiatives, at your
facility?
Corporate communication regarding
environmental performancein last30
days (y/n)
? barriers to increasingthe environmental friendliness of
processes, products, and/orservices
What are thechallenges to adoptinggreen practices when designingnew
processes, products, and/orservices?
Environmentof facilitya factor when
decidingnew
products/services/processes (y/n)
? sources ofinformationon environmental management
practices ,historical environmental performanceat facility
(Delmas and Toffel,2004)
Where do you find information regardingenvironmental matters relevant to
youroperational activities?
Knowledgeof ESRD/EMSreporting tools
(y/n)
Section II.
Facility
Environmental
Practices
? employeeinvolvementin environmental management
? social vulnerability of workforce (Gunningham, 2009)
Do you thinkthere are core values shared bypeople at yourfacility? Environmentissues considered ashared
responsibility within facility(y/n)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
18
? level of responsibilityforenvironmental decisions
? awareness of prosecution of serious violations
(Thornton et al, 2005)
? frequentinspections (Henriques et al, 1996)
Government and Regulatory
Factors
Would you say following ESRDrequirements and guidanceis a constant
challengein yourbusiness, orthat there are onlya fewoperational situations
that get outof control?
In your opinion, does meetingESRDrequirements and guidancerequire more
actions of themanagerial level,or theoperational l evel?
Frequency of incidents reported
Operational vs managerial level
described as responsiblefornon-
compliance
? environmentallyfriendlypractices Awards and Recognition In your experience atyour facility, themanagement’sstrategy is to comply
with currentgovernment environmental regulations, orto voluntarily
anticipate future environmental regulations?
Why?
Voluntary programs participation (y/n)
? voluntary programs participation of facility
? history of pastsocial struggle at facility(strikes,lockouts)
- (Gunningham,2009)
How would you describethe work climate atyour facility? Fractured workcultureat facility(y/n)
? citizen lawsuits, orpolitical action (Gunninghamet al,
2004; Delmas and Toffel2004)
Has there been anycommunityreaction to the environmental impactof the
facilityin thepast?
Experienceof community reaction to
environmental impactof facility (y/n)
? perceivedlevel of compliancewith regulatory standards
? visible forms of greenness (Khannaand Speir,2007)
What bestrepresents foryou thelevel of environmental performanceof your
facility?
Description of activities beyond
compliancerequirements (y/n)
Section III.
Facility
Environmental
Performance
? awareness of monitoringand enforcementactivities at
other facilities (Gray&Shimshack, 2011)
Are you aware of anyESRDmonitoring and enforcement activities atother
facilities in region?
Knowledgeof monitoringand
enforcementactivities atotherfacilities
in region (y/n)
? environmental outcomes
Profit Motivated Economic
Rational Actors
Would you agree that economic factors explain all environmental
performancedecisions?What elsecould motivate environmental
performanceat yourfacility?
Would you agree that lac k of profit-making or return-on-inves tment
from environmental investmen ts has been a barrier to improving your
facility’s environmental perfo rmance?”
What are themostimportantactivities to control at yourfacility,in
environmental terms?Were they thesame5 years ago?
Continuous reduction of environmental
footprint(y/n)
?? environmental processes Which processes do you use to anticipatesituations that couldimpact the
environmentaround your facility?Were they the same5 years ago?
Continuous environmentalprocess
improvement(y/n)
? involvementofparent companywith environmental
decision makingat facilitylevel
Corporate Culture How is your companymanagementinvolved in environmental decision
makingat facilitylevel?
Environmental manager appointed at
facility(y/n)
Section IV.
General
Information
? firms participatingin aself-regulated Corporate Social
Responsibilityinitiative (Finger, 2011), tradeassociations
(Gunninghametal, 2005).
? economicsectormay haveinfluence overperformance
decisions (Delmas and Toffel, 2004; Henriques and
Sadorsky,1996) ;? industry reputation (Delmas and Toffel
2010)
? geographic isolation of facility(Gunningham,2009)
Questions Design Who is championing environmental values at you r facility?
What could your companydo, to bea better environmental performer?
What are the three mostimportantmotivations and barriers to environmental
management atyour facility, in your experience?
Champion of environmental values
at managerial level (y/n)
Plans forimproved environmental
performanceat facilityare formalized
(y/n)
?? ownership of parent company,parent companya
multi-national corporation
Ownership Structure and
Influences
Is your facility(orparentcompany) publicly traded orprivatelyowned?Is it a
multi-national corporation?
Publicly traded (y/n)
Multi-national corporation (y/n)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
19
1.3.2 Semi-structured interview grid
This phase also included the development of an interview grid to support the semi -structured
interview in Phase 2. The interview grid included all of the major factors and indicators identified
in the literature review, with the intent of pre-testing the likely relevance of these in the Alberta
context. This phase also included the development of a recruiting script to support the personel
arranging interview appointments. These documents are presented in the Appendix 1.
1.3.3 NAICS and EMS
The North American Industry Classification System (NAICS) offers a framework for collecting and
publishing information on inputs and outputs in a consistent way. However, for the purpose of our
study, we believe that applying NAICS solely would lack the sensitivity necessary to reflect the
characteristics of industries regulated by EPEA approvals.
As the primary database for EPEA information, the Environmental Management System (EMS)
incorporates the expertise developed in time by ESRD and is useful for the purpose of reflecting
the characteristics of industries regulated by ESRD approvals. Used alone, for the purposes of this
research, it would be insufficient to distinguish among Alberta industries, particularly in the
manufacturing sector
7
. We considered its weakness could be compensated by the NAICS approach
that classifies industrial facilities according to economic units that have similar production
processes into the same industry.
For this reason, we used NAICS datasets in conjunction with EMS data to guide the selection of
participants for interviews to ensure a range of industries were captured. Table 5 presents the
industry classification system used to support this research and applies to the 632 industrial
facilities that make up the study population.
Table 5: Modified EMS Merge with NAICS (10)
Industry N
Sour Gas (conventi onal) 257
In-Situ & Heavy Oil (Unconventional) 32
Coal 7
Power Plants 67
Hazardous Waste/Recycli ng 61
Muni cipal/Industrial Landfil ls 63
Wood & Paper Product Manufacturing 26
Food Manufacturing 28
Manufacturi ng Chemical 72
Other product manufacturing 19
7
EMS industry classi fications cl uster ma nufacturing i nto broa d categories, and we were interested in understa nding if varience existed
in environmental per for mance within industries as well as between industries.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
20
Phase 2 – Semi-structured interviews
2.1 Phase 2 Research in Context
2.1.1 Approach to the first qualitative data collection
This research seeks to provide a dynamic description of factors at play in environmental
performance decision making at the facility level.
Preliminary interviews provide some insight into the explicit factors that account for variations of
practices and processes of environmental performance in Alberta. This procedure aimed to reveal
variations in facility characteristics, to partially validate the relevance of explicit factors previously
identified in the literature, and to capture any emergent factors relevant to the Alberta context
that were not present in the literature.
To capture variance, participants were selected to represent facilities operating across multiple
industries, and interviews were carried out until saturation was reached during analysis of
qualitative data. Organizational features (e.g. size, number of facilities per firm, etc.), which had
clearly been identified as influencing decision making at facility-level within the literature, were
not probed in this phase, as they were well known to occur, and their influence would be
captured in subsequent phases.
2.1.2 Semi-structured interview questions
In this exploratory phase of research, this form of questioning left room for interpretation to
enable respondents to express the variability of their practices . The questions for this phase were
aimed at obtaining rich, qualitative material in order to broaden our understanding of factors that
could be at play. The questions were designed to trigger facility representatives into sharing their
perceptions of factors influencing decision making. They purposefully encompassed a number of
possible dimensions to leave interviewees free to express their perceptions. What would regularly
be expressed first by interviewees, or insisted upon, would likely be of interest to the study. This
information would be used to guide the broader quantitative survey.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
21
2.1.3 Data collection
In order to design a survey likely to be meaningful to participants and to meet the project
objectives, we undertook a series of telephone interviews with a small subset of facility
representatives. Regional ESRD staff were asked to suggest representatives from each industry
classification who could offer valuable insights to the topic and survey design. Advanis selected
facilities from among these suggestions .
Interviews started on November 25, 2013 and data collection for this phase lasted until November
28, 2013. Interviews were carried out by three researchers and typically lasted between 15 and 20
minutes. The 12 respondents represented facilities that covered six (6) of the nine (9) NAIC codes
represented in the sample.
2.1.4 Data analysis
Interviews were transcribed verbatim and analyzed to identify recurrent themes (explicit factors)
that were known from the literature review. When novel factors emerged, subsequent
questioning aimed to understand them more clearly in the following intervi ews.
Finally, we selected from the interviews a number of significant quotes that best represented the
data describing each explicit factor and integrated them in our results.
2.2 Phase 2 research results
2.2.1 Explicit factors described by interviewees
As we have seen, the literature review provided insights into a range of external and internal
factors that have been shown to influence environmental performance decision-making at the
facility level (Tables 1-4).
Broadly speaking, they include the relationship between the firm and the facility, external factors ,
government and regulatory pressure, public and community pressure, shareholder and investor
pressure, customer and consumer pressure, competitor and industry pressure, and internal factors
that can act to moderate these external pressures
8
.
This section presents the explicit factors that were qualitatively described as important by our
respondents and illustrate the variability of their perceptions wi th verbatim quotes from Phase 2
interviews.
8
such as fir m and facility size, ownership, technical a nd resource capa bilities, organizational chara cteristics, functional depart ments,
industry reputation and competitiveness, ma nagerial attitudes.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
22
According to interviewees, the economic rationale for environmental projects needs be
considered and the facility’s environmental performance is thus, in part, driven by economic
considerations: "It’s a dollar factor, right. They’re in for making a profit off their product. They’re
not doing it just for the environment." (Int. 4, Manufacturing: Food Products)
In addition, there is evidence that to avoid risk facilities sometimes seek environmental
performance at a cost to the organization: "We emphasize safety and environmental
considerations above production. For example, awhile back, we were in a position where our
product was in such demand that there would have been the possibility of running our plants past
their regular capacity, and we implemented a force maj eure in order not to put ourselves in that
position." (Int. 7, Manufacturing: Chemical Products)
Organizations sometimes see their facilities as primarily in charge of improving the environment:
“We’re a little different than a manufacturing plant , where it really becomes a cost against their
bottom line to do some of these things. In our case, our bottom line is driven by being
environmentally safe and improving things.” (Int. 9, Waste Management Facility)
Management may stress that maintaining environmental performance beyond compliance should
be seen as an integral part of the facility’s performance: “I think we’re heading down the path of
continuous improvement in terms of being proactive and continually improving. If we look at the
overarching corporate structure, the environment, sus tainability, is a very key feature. Our
stakeholders demand that of us. We take that very seriously, and we also think it’s a competitive
advantage, so we use that to move the business forward.” (Int. 3, Waste Management Facility)
It should be noted that ISO 14001 certification may impact environmental performance beyond
compliance by aligning corporate requirements at or above environmental regulations: “I think the
point that I would raise is there’s the regulations and there’s only so much the regulations can do ,
and then having the ISO 14001 really does help to build that link between corporate requirements
and regulatory requirements.” (Int. 8, Waste Management Facility)
In the same way, industry associations may have an influence on higher levels of performance
beyond compliance. Interviewees describe membership in industry associations as a positive
influence on environmental performance: "People that belong to that voluntarily, that belong to
this group, look at what's coming in terms of industry, look at what's happening around the wo rld,
look at opportunities for going beyond the regular expectations." (Int. 7 , Manufacturing: Chemical
Products)
Practices described as being beyond compliance can be observed where internal standards in the
organization are more demanding than provincial regulations: "So we have to track that on a
yearly basis and report to corporate to meet those targets that they set for the company. And the
targets tend to be more stringent than our local regulations set by Alberta Environment." (Int. 10 ,
Manufacturing: Chemical Products)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
23
Cost of an environmental project can be a barrier to environmental performance beyond
compliance, as already described. However, public perception of the facility and new
environmental regulations also have a strong impact on projects: “It would be primarily public
perception or I suppose new regulations, tighter limits.” (Int. 5, Manufacturing: Pulp and Paper)
Facility representatives are aware that their social licence to operate is li nked to their industry's
image, and that effort to improve a poor public image must be managed at a facility level: "We
operate our social licence pretty significantly because the industry we’re in is viewed as being
consumptive, which is not 100% accurate, but that’s the perception we have. We rely on our social
licence a great deal to stay in business." (Int. 3, Waste Management Facility)
In this respect, there is a perception that the public pressure, at a more general level, influences
the regulatory processes and may exert an indirect pressure on a facility’s performance: ”If the
public has a concern about something, then of course, that’s a concern that the regul ator would
have, and then we would have to answer that.” (Int. 1, Manufacturing: Petroleum & Coal )
Interestingly, it is sometimes personal involvement of facilities’ representatives in the local
community that seems to explain higher levels of environmental performance: "Again, it’s protect
the environment. You have to live here. Your family has to live in the area. Look after it. Be careful
with what you do, so you go home safe at the end of the day. Those are all values that you try and
instill in your staff." (Int. 9, Waste Management Facility)
Other personal factors seem also to come into play in environmental decision making, as
exemplified by this reference to the position of individuals within the organization: “Well, I mean,
those people’s concerns are different. Usually people ar e concerned about what impacts them.
Top management cares more about the big picture. Operators would be concerned more about
their job, how does their job affect the environment. Everybody is different. ” (Int. 6, Oil & Gas
Processing)
There is an overall perception that meeti ng ESRD regulations requires resources and commitment:
“I think I wouldn’t say it’s a real challenge, but it is a concern, and we’ve got to pay attention to it.
If you don’t pay attention, yes, it can get out of control , but if you pay attention and stick up, stick
to your monitoring and stay on top of your operations, we can meet the regulations.” (Int. 1 ,
Manufacturing: Petroleum & Coal )
The perception of the complexity of regulations may be a barrier to compliance, both at personal
and organizational levels: "We comply with everything that we know and every act that we know,
but there’s always a question out there: is there something that we don’t understand as a facility
or as a plant or myself as the environmental person for the plant ?" (Int. 2, Manufacturing: Building
Products)
Finally, as identified in the scientific literature, the size of the organization is described as a factor,
especially with larger companies being oriented towards longer-term profitability and willing to
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
24
engage in projects that are perceived to lack short -term profitability: “Our company is fairly
diversified, so even when our part of the business is down, quite often another part of the
business is up so if you look at the last (. ..) project we put in, it was a (...) million-dollar project and
we put it in at a time when economically things weren’t real great for our plant, but the long-term
outlook for our company is that we’re a viable business, but they put it in while things were slow
for us that time.” (Int. 2, Manufacturing: Building Products)
2.2.2 Explicit factors and survey questions
The factors identified by interviewees were consistent with those identified in the literature and
the internal ESRD focus groups. This validation enabled the definition of a final list of factors and
their indicators and the survey questions to be explored in Phase 3.
The nature of quantitative questions is to reduce the possibility of multiple interpretations and
increase the ability to easily make comparisons. It also supports analysis of the data at facility
level.
For clarity, factors identified in Phase 1 of research and validated in Phase 2 were integrated into
the survey in four sections. Questions posed to facility representatives relevant to each factor will
be found in the questionnaire (see appendix 2) for each group of factors:
o Section 1: General information (size, international, number of facilities, headquarter
location)
o Section 2: Corporate environment (investor pressure, management values and
involvement)
o Section 3: External factors (external pressures, including customer, public and community
pressures, competitors’ improvement, regulation)
o Section 4: Barriers to environmental practices (impact on profitability, difficulty complying
with regulation)
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
25
Phase 3 – Online Survey
3.1 Introduction
This phase of the research constitutes a robust data gathering exercise through an online survey of
industrial facilities in Alberta. This section describes the methodology for collecting and analyzing
the data, explores the findings, and develops a model to articulate the influence of factors on
environmental performance indicators arising from the quantitative survey. The validity of the
model is tested in subsequent phases of the research.
3.2 Data collection methodology and questionnaire
In order to conduct the data collection using a web survey, we needed to identify the correct
respondent at each facility. To do this, phone calls were made to the facilities (or parent
organization when needed) to locate the appropriate person to contact regarding the facility and
to obtain their email. Telephone invitations to participate started in December 2013. The diagram
below presents the number of participants for each step of the process:
Chart 1: Data collection process
680 facilities in the initial list from ESRD
512 individual contacts identified
in the ESRD list
343 phone contacts made at facility level that
accepted to provide contact information
Web answers for 264 facilities
from 221 individuals
P
r
o
g
r
e
s
s
i
o
n
o
f
t
h
e
p
r
o
c
e
s
s
DATA COLLECTION PROCESS
L
O
S
S
3
3
%
L
O
S
S
2
3
%
L
O
S
S
0
%
The designated participants received an email invitation after the initial phone contact. This was
followed by an email reminder and phones calls to the non-responders. A total of 343 industrial
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
26
facility representatives were contacted from December 2013 until the end of March 2014, and
they agreed to participate. The web survey was conducted from February to April 2014. We
obtained completed surveys from 264 facilities. In some cases, one representative was in charge of
more than one facility, so the 264 completed surveys were received from 221 individuals.
Please find the final version of the web survey questionnaire in Appendix 1.
3.3 Building a model of indicators of environmental performance and factors
In order to gain a better understanding of various relations between factors and environmental
performance, an analytical model was designed to position the Phase 3 quantitative survey to
answer the research question.
Hypothesizing from our literature review, ESRD focus groups, and the Phase 2 semi-structured
interviews, two categories of variables were created: the factors that influence performance and
the indicators of environmental performance.
Indicators of
environmental
performance
Factors Positive, negative or no influence
Factors
Factors
Positive, negative or no influence
Positive, negative or no influence
Environmental performance indicators and factors were both created by the same process and
constructed based on multiple questions within the web survey. Each question represented a facet
of the factor or indicator identified in the literature, which we needed to validate.
The modelled relationships between factors and indicators were also hypothesized from the
literature review and the qualitative interviews. The numbers of participants in the project was
sufficient to make possible the creation of a model that explains the relationship between the
indicators and factors. After data collection, a statistical analysis was conducted using logistic
regressions. This enabled us to identify factors that were influential on indicators. The analysis is
presented in detail in section 3.5
The next sections describe in detail both the indicators and factors.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
27
3.3.1. I ndicators of environmental performance
There is no universal measure of facility-level environmental performance, and developing a
concise measure is difficult (Nawrocka and Parker, 2009). Environmental performance spans a
range of activities across media (air, water, biodiversity, reclamation, waste management, etc.),
that different sectors impact differently. Organizational practices also vary, ranging from focus on
regulatory standards to other practices outside of the regulatory requirements.
Lacking a definition of environmental performance, we could only aim to measure the influence of
factors on indicators, i.e., a measure of the statistical significance of each of the factors identified
by industry in explaining the performance of the indicators.
To address this challenge, the research team developed composite measures of performance
based on literature and findings in Phase 2 of the research. These composite measures of
performance will be called “indicators of environmental performance” in the rest of this
document.
They captured (1) positive environmental practices that are aimed to have a beneficial
environmental impact, (2) self-perceptions of the facility representative on the level of compliance
and (3) self-perception of standards they are applying at facility level to indicate facility-level
environmental performance beyond compliance.
These three indicators of environmental performance are presented below, including all the
questions that were used to create them.
1. Positive practices in the facilities:
? Documented envi ronmental policy (question 19A) ;
? Internal environment al audits at regular intervals (question 19B);
? External envi ronmental audits at regular int ervals by a third party (question 19C);
? Periodic publishing of environment al performanc e information to the public (question 19D);
? Environment al c ertific ation (e.g., I SO 14001 certification) (question 19E);
? Facilit y environmental achi evements published in annual reports (question 19F);
? Environment al management system (question 19G).
2. Self perception of the standards that the facility is applying:
? Environment al responsibility is emphasized through well-defined envi ronmental pol icies and procedures
(question 21A);
? Our envi ronmental st andards are more stringent than mandatory government al requirements (question
21B);
? We conduct environment al audits for our own performanc e goals, not just for compli ance (question 21C);
? We are well informed about the best pract ices in environment (question 21D).
3. Self-Perception of compliance of the respondent (when applicable):
? Wat er qual ity (question 23A) ;
? Wat er use (question 23B);
? Air emissions (question 23C);
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
28
? Land management and reclamation (question 23D);
? Wildlife and biodiversity (question 23E);
? Noise pollution (question 23F);
? Odour pollution (question 23G);
? Waste management (question 23H).
The first two indicators were created in two steps. First, we divided the number of questions that
got a positive answer by the total number of questions in each of the indicators. Next, based on
the distribution of the data, we defined organi zations with 75% of positive answers or more to be
performing at a higher level than other companies.
For the third indicator, we defined that companies that indicate that they were doing more than
what is required by regulations have a high level of “self-perception of compliance.” The
assumption is that this perception of a higher level of compliance is likely to be correlated with an
actual higher level performance.
3.3.2 Factors that influence environmental performance
As with environmental performance, no set of motivating factors is commonly accepted. The
factors used hereafter were identified in the literature and in phase 2 of the research. Their
influence on the indicators of environmental performance was tested in the quantitative survey.
1. Management values and involvement
? Upper management's encouragement of fac ility participation in voluntary environment al programs (question
10D);
? Clear int ernal environment al polici es or standards that appl y to all fac iliti es within the organizat ion (question
10E);
? Upper management's beli ef in a moral responsibility for protect ing the environment (question 10F);
? Upper management's support of environmental i mprovements even if costs are substantial (question 10G);
? Upper management ’s belief that improvements in environmental performanc e can increase long-t erm
profits (question 10H).
2. The importance of corporate image
? Ensuring a good corporate image (question 10I);
? Media coverage of an environmental incident involving your company or your fac ility (question 10J);
? Customers' desire for environmental ly fri endly products and services (question 12A) ;
? Ability to earn public recogni tion or customer goodwil l wi th environmentally fri endly actions (question 12B);
? Pressure from environment al int erest groups (question 12C);
? The loc al community's perc eption of the facilit y (question 12F);
? Media coverage of an industry-relat ed environment al incident (question 12I).
3. The Regulations
? Complying with current government envi ronmental regulat ions (question 12D);
? Desire to be bett er prepared to meet anticipat ed environmental regul ations (question 12E);
? Meet ing industry st andards (question 12H).
4. Investors pressure
? Satisfying investor (owner) desires to reduc e environmental risks and l iabili ties (question 10A);
? Protecting or enhancing the value of the facilit y or parent organization for investors (owners) (question 10B);
? Satisfying lenders’ desires to reduc e environment al risks and liabi liti es (question 10C).
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
29
5. Impact on profitability
? High upfront invest ment expense (question 17A);
? Cost of staff training (question 17B);
? High day-to-day costs (question 17C);
? Significant upfront time commit ment to i mplement (question 17D);
? Uncertain future benefit (question 17E) ;
? Risk of downtime or deli very int erruptions during implement ation (question 17F);
? Lack of return on investment(question 17H).
6. Competitors improvements
? Keeping up with competitors’ envi ronmental improvements (question 10K);
? Keeping up with competitor envi ronmental improvements (question 12G) .
7. Difficulties complying with regulation
? Complexi ty of int erpreting regulations (question 17G);
? Not required by law (question 17I).
8. Barriers to improvement
? Composed of two factors : difficulties compl ying with regul ation and impact on profitabi lity. The anal ysis of
this composed factor takes into account all the questions that measure barriers to improvement . Alone, the
factor I mpact on profi tabili ty did not show any influence.
Each of the factors were calculated by dividing the total number of questions to which
respondents answered “agreed to
9
” by the total number of questions that were included in the
factor. To make sure that our factors were strongly positive, not just slightly positive, the top rank
of the Likert scale was used.
9
For some factors this incl uded only the “strongly agree” level. For other factors it i ncl uded both “strongly
agree” and “somewhat agree.”
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
30
3.4 Results
3.4.1 Facility profiles
In order to better understand the results, a series of questions at the beginning of the
questionnaire aimed to define the character of the organizations involved in the research (i.e.
revenue, size, international, number of facilities, headquarter location). It is important to keep in
mind that the research design was focused on industrial facilities with an approval under EPEA
which requires an approval based on the environmental risk of the activity, not the size of the
company.
This section provides information on facilities and organizations. We noted a broad range, in terms
of sector and organization size (that can be interpreted through the yearly revenue), as well as
facility size (that can be interpreted by the number of employees at the facility). The table below
presents the estimated annual revenue of organizations that own these facilities. More than half
of the organizations have sales exceeding $500 million per year. This demonstrates that most
respondents in this research are from organizations with large revenues (76% have revenue equal
or greater than $50 million yearly).
Table 6:
Organization' s average yearly revenue
Total
Unweighted totals: 170
Less tha n 5 million 12%
5 to 10 million 3%
10 to 50 million 9%
50 to 100 million 7%
100 to 500 million 18%
More than 500 million 51%
Source: Adva nis 2014, question 27.
Facility size was measured using the proxy of the number of employees. We can see that many
facilities seem to be of relatively small size or at least do not require labour intensive activities.
Table 7:
Number of employees worki ng at the facility
Total
Unweighted totals: 248
1 to 3 21%
4 to 14 27%
15 to 49 21%
50 or more 31%
Mean : 115.9
Median : 15.0
Source: Adva nis 2014, question 6.
Table 8 presents the industry/sector the facilities represent. The data did not show important
variation in the answers based on the industry/sector classification, although some notable
differences did appear in the manufacturing sector (presented in the sections 3.3 to 3.5).
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
31
Table 8:
Sector of activity of respondents
Total
Unweighted totals: 264
Oil & Gas Pr ocessing 36%
Manufa cturing 23%
Waste Management Facility 22%
Munici pal Water Systems 9%
Electric Power Systems 8%
Others 2%
Source: ES RD 2014, sample file.
Most facilities surveyed belong to multinationals. It was thought that the fact that these
companies were operating in more than one country could influence their standards
10
. We wished
to validate if multinationals were undertaking better practices
11
than exclusively Canadian
companies. The results did not show any consistent difference across the indicators between the
multinational and other companies in the sample.
Table 9:
Operate i n more than one country
Total
Unweighted totals : 262
Yes 71%
No 29%
Source: Adva nis 2014, question 1.
Publicly traded organizations represented 65% of the surveyed facilities. This result is similar to the
number of multinational companies (71%), which are often publicly traded.
Table 10:
Organization publicly traded, privately owned,or g overnmental/munici pal
Total
Unweighted totals: 263
Publicly traded 65%
Privately owned 24%
Governmental or muni cipal 10%
Source: Adva nis 2014, question 26.
Only 28% of the organizations surveyed have only one facility in Alberta. The median number of
facilities is five (5), but the mean is much higher. This is due to a few organizations that have
several hundred sites in Alberta, thus increasing the mean number of sites. This may relate to the
characteristics of multinational organizations which, in most cases, may have more than one
facility operating in Alberta.
10
The term “Standards” refers to the i ndicator of environmental performance presented in section 3.2.1.
11
The term “Practices” ref ers to the indi cator of envi ronmental perf ormance presented i n section 3. 2.1.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
32
Table 11:
Total number of facilities in Alberta
Total
Unweighted totals: 226
1 facility 28%
2 to 10 fa cilities 38%
11 or more 34%
Mean : 37.15
Median 5.00
Source: Adva nis 2014, question 5.
3.4.2 Environment decision and responsibility at the f acility level
Table 12 presents the findings of the role within the organization that has the primary
responsibility for investments in environmental improvements at the facility level. The survey
results established that it is mostly high-level personnel that hold the primary responsibility for
investments at facilities. We note that 42% report that investment decisions in environmental
improvements at the facility are made by a senior executive (i.e. president, CEO, or vice president).
Only 26% report that it is the facility manager who makes this decision.
Table 12:
Holder of the primary responsi bility for investment decisions i n envir onment at your facility
Total
Unweighted totals: 249
Owner, Presi dent, or CEO 27%
Vice President 14%
Director 11%
Plant Manager/Facility Manager 26%
Environmental Health and Safety Manager 6%
Other Environmental Manager (compliance, sustainability, etc) 5%
Other 12%
Source: Adva nis 2014, question 9.
In terms of investment in the past five years, more than half (55%) of the facilities increased their
investment in environment, and 41% of facilities maintained their level of investment. Only a small
percentage (4%) mentioned a decrease in their investments. These facilities are mostly identified
as low-complexity
12
operations in terms of process, and more than half are from the oil and gas
sector.
Table 13:
In the past five years, ev olution of the lev el of investment in environmental infrastr uct ure or impr ovements at t he facility
Total
Unweighted totals: 256
Increased 55%
Remai ned stable 41%
Decreased 4%
Source: Adva nis 2014, question 20.
For the management of environmental incidents at the facility level, two groups are almost always
involved: the operations and the environmental divisions. Of note, the legal division ranks third in
12
The level of complexity ref ers to EMS classif icati ons of complexity.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
33
the list, with 55% of respondents indicating they have a role in responding to environmental
incidents at the facility.
Table 14:
Groups inv olved i n the response and sol ution when envir onmental incidents occur at your facility (in the past 5 years)
Total
Unweighted totals: 264
Operations 97%
Environment 93%
Legal 55%
Finance 34%
Research and i nnovation 22%
Marketing 8%
Other 29%
Source: Adva nis 2014, questions Q9A_A to Q9A_G.
In total, 212 facilities out of the 264 that responded said they were members of at least one
industry association, representing 80% of the surveyed facilities. Table 15 presents the type of
industrial association their facility or organization belonged to. These are categorized by the
function of the association.
Table 15:
Part of the following associations Total
Unweighted totals: 165
Sets industry standar ds and best pra ctice 70%
Offers or facilitates industry training 51%
Facilitates market access 21%
Facilitates relationships with government, public, a nd non-g overnment partner s 62%
Lobbies on behal f of the industry’s interests 48%
Fosters innovation 33%
Other 2%
None of the a bove 8%
Source: Adva nis 2014, question q11d.
3.4.3 Association membership
In total, 212 respondents confirmed their membership in industrial associations. The original list of
associations provided to them in the survey was expanded by participants.
Table 23:
Industry associations initially
identified by ESRD
Other associations mentioned by responders in survey (q11c1)
? Northeast Capit al Industri al
Association (Oil and Gas)
? Strathcona Industri al
Association (Oil and Gas)
? Canadian Association of
Petrol eum Produc ers (Oil and
Gas)
? Canadian Fuels Association (Oil
and Gas)
? Chemistry Industry Association
of Canada (Manufacturing)
? Alberta Forest Products
? Alberta Association Of Municipal Districts & Counti es –
AAMDC
? Alberta Capital Airshed
? Alberta Oilfield and Treating Disposal Association – AOTDA
? Alberta Urban Municipaliti es Association – AUMA
? Association of Americ an Railroads
? Canadian Association of Chemic al Distributors – CACD
? Canadian Association of Petrol eum Produc ers – CAPP
? Canadian El ectric ity Associat ion
? Canadian Energy Pipel ine Association
? Canadian Forest Products Association – FPAC
? Canadian St eel Producers Association – CSPA
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
34
Association (Forestry)
? Canada’s Oil Sands Innovat ion
Allianc e
? Explorers and Produc ers
Association of Canada
? Independent Power Producers
Society of Alberta
? Alberta Us ed Oil Management
Association
? Petrol eum Technology Allianc e
of Canada
? Agrichemic al Warehousing
Standards Association
? Canadian Energy Pipel ine Association – CEPA
? Canada Foundation for Innovat ion – CFI
? Canadian L and Reclamation Association – CLRA
? Canadian Pl astics Industry Association – CPIA
? Canola Council of Canada
? Cement Associat ion of Canada
? Environment al Services Associat ion of Albert a – ESAA
? Forest Products Association of Canada – FPAC
? Fort Ai r Partnership
? Industrial Association of Southern Albert a – I ASA
? Mining Association of Canada
? National Council of Air and St ream Improvement – NCASI
? National Renderers Association – NRA
? Northeast Region CAER
? North Saskatchewan Watershed All ianc e – NSWA
? Ontario Wast e Management Associat ion – OWMA
? Peac e Ai rshed Zone Association – PAZA
? Petrol eum Services Association of Canada – PSAC
? Recycling Council of Albert a – RCA
? Responsible Care – Chemistry Industry Association of Canada
? Solid Wast e Associat ion of North America – SWANA
? Wood Buffalo Environmental Association – WBEA
? Wood Preservat ion Canada – WPC
3.4.4 I nteractions and relations with t he regulator
The following section provides responses regarding the relationship between the facility and the
regulator. Table 16, provides the results on the frequency of inspection by an environmental
agency. We note that approximately 50% of the facilities report an inspection frequency of “every
few years.”
Table 16:
Frequency of inspection at the facility by an envir onmental agency
Total
Unweighted totals: 236
A couple of times yearly 15%
Yearly 34%
Once every few years 51%
Source: Adva nis 2014, question q15.
Of note, 86% percent of facilities report a relatively good mutual understanding between
themselves and the regulator. Considering that the role of the regulator includes enforc ement (i.e.
fines, non-compliance notice) the answers are relatively positive.
Table 17:
To what extent do y ou agree t hat there is g ood mutual understandi ng between your facility and the reg ulator?
Total
Unweighted totals: 259
Strongly agree 52%
Somewhat Agree 34%
Neither Agree nor Disagree 8%
Somewhat Disagree 4%
Strongly Disagree 2%
Source: Adva nis 2014, question 16.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
35
3.5 Results and development of the final statistical model of analysis
The following model presents the most important statistical relationships between indicators and
factors that were identified in the research. We tested which factors had a significant impact on
each indicator, using logistical regression models. It is the visual representation of the influence of
the factors on the indicators of environmental performance. Some relations are positive (+), some
are negative (-), and some have no impact (?).
Chart 2: Model of the factors and indicators
The statistical relationship between the factors and the environmental performance indicators is
presented in the table below. The sigma (?) is a measure of the statistical significance. A value
lower than 0.05, it indicates that the factor has a significant impact on explaining the indicator.
The beta coefficients are the standardized coefficients estimating the impact of each factor on the
indicator. The standardization of the coefficients means that each coefficient was br ought to an
equal unit of measurement, making them comparable between each other. The factor with a
coefficient of the greatest magnitude has the most important effect on the indicator.
Indicators of environmental
performance
FACTOR
Investor pressure
(Q10A-Q10B-Q10C)
FACTOR
Management
value and
involvement
(Q10D-Q10E-Q10F-
Q10G-Q10H)
FACTOR
Impact on
profitability
(Q17A-Q17B-Q17C-
Q17D-Q17E-Q17F-Q17H)
FACTOR
Corporate image
(Q10J-Q12I-Q10I-Q12A-
Q12B-Q12C-Q12F)
Facilities practices
(Q19A-Q19B-Q19C-Q19D-Q19E-Q19F-
Q19G)
Facilities standards
(Q21A-Q21B-Q21C-Q21D)
FACTOR
The regulation
(Q12D-Q12E-Q12H)
FACTOR
Competitors
improvements
(Q10K-Q12G)
FACTOR
Difficulties complying with regulation
(Q17G-Q17I)
FACTOR
Barriers to
improvement
(impact on profitability and
difficulties complying with
regulation )
Perception of compliance
(Q23H)
-
+
+
+
-
+
+
?
?
Relations between factors that influences environmental performance and the
indicators of environmental performance
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
36
Table 18: Hypothesis analysis
Indi cator – Facilities practices (>=75%)
Factors Beta (?) Sigma (?)
Corporate image 2.274 6.678E-06
Barriers to impr ovement -1.340 4.619E-03
Indi cator – Facilities Standards (>=75%)
Factors Beta (?) Sigma (?)
The regulation 1.112 0.0243
Management values 1.824 0.0003
Competitor improvements 1.524 0.0028
Diffi culties complying with regulation -0.978 0.0318
Indi cator – Perception of compliance (Waste management indi cator above requir ed level)
Factors Beta (?) Sigma (?)
Management values 1.2025 0.0009
Source: Adva nis 2014, survey data.
As for the relationship between our two major indicators of performance, we have found that the
presence of positive practices and regard for standards are strongly correlated. The following table
shows the result of the cross tabulations of these variables. The test shows a level of correlation
with 99.9% certainty level.
Table 19:
Relationship between standards and practi ces
Total : Practices (low result) Practices (high result)
Total : 220 148 72
Standards (l ow result) 149
68%
111
75%
38
53%
Standards (high result ) 71
32%
37
25%
34
47%
Source: Adva nis 2014, survey data.
3.5.1 Analysis by indicators: Facilities’ practices
As mentioned previously, some major factors have an influence on practices implemented at the
facilities. Globally, seven questions were used to create the indicator of facility practice. We can
observe that the respondents mentioned some of these practice s were widespread across all
facilities, but others were less present. The top tiers were used to define the binary indicator used
in the analysis model presented previously.
Table 20:
Practices implemented i n facilities Total
Unweighted totals: 261
1-Documented environmental policy 99%
2-Internal environmental audits at regular intervals 87%
3-Environmental Management System 79%
4-Exter nal environmental audits at regular intervals (by a third party) 75%
5-Facility environmental achievements are published in annual reports 52%
6-Periodic publishing of environmental performance infor mation to the public 45%
7-Environmental Certificati on (e.g., ISO 14001 certification) 32%
Source: Adva nis 2014, questions Q19A, Q19B, Q19C, Q19D, Q19E, Q19F, Q19G.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
37
There are two factors that influence the facilities’ practices. The first factor is the importance of
corporate image. We observed that, when the corporate image was identified as being very
important to respondents, they implemented more of the above seven practices. The second
indicator that influences practices that were implemented is barriers to improvement . The more
pressure on profitability and the complexity of understanding the regulations were perceived, the
less these practices were implemented in the facilities. It is to be noted that this second factor is a
composit, and it only influences the indicator when using the two underlying factors in conjunction
(impact on profitability and difficulties complying with regulation).
Indicators of environmental
performance
FACTOR
Corporate image
(Q10J-Q12I-Q10I-Q12A-
Q12B-Q12C-Q12F)
Facilities practices
(Q19A-Q19B-Q19C-Q19D-Q19E-Q19F-Q19G)
FACTOR
Barriers to
improvement
(impact on profitability and
difficulties complying with
regulation )
-
+
Relations between factors that influences environmental performance and the
indicators of environmental performance
The data analysis showed a number of interesting elements that are described below:
? 97% of respondents in the manufacturing sector implemented internal audits but only
80% of the oil & gas processing (mean of the sectors is 87%) did the same .
? We note that the facilities with an operation of high level of complexity, as defined by
ESRD, are more prone to publishing environmental performance information to the public.
? When management staff have strong environmental values, there is an increase in the
frequency and use of internal audits (Q10D: 94% vs 76%, Q10E: 92% vs 66%, Q10F: 93% vs 76%, Q10H: 92% vs
77%).
3.5.2 Survey analysis by indicators: self perception of facilities’ standards
Of note, four questions were used to create “facility standard” indicators. They are presented in
the table below. They were recoded into binary variables for analysis purposes.
Table 21:
Perceived facilities standards Total Agree Neither Agree nor Disagree or Disagree
Environmental responsi bility is empha sized thr ough well -
defined environmental polici es and procedures
263 85% 15%
Our environmental standards are more stringent than
mandat ory governmental requirements
258 69% 31%
We conduct environmental audits for our own per for mance
goals, not just for compliance
262 82% 18%
We are well infor med a bout the best pra ctices in environment 262 86% 14%
Source: Adva nis 2014, questions Q21A, Q21B, Q21C, Q21D.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
38
In terms of facilities’ standards, there are four factors that influence their level.
Indicators of environmental
performance
FACTOR
Management
value and
involvement
(Q10D-Q10E-Q10F-
Q10G-Q10H)
Facilities standards
(Q21A-Q21B-Q21C-Q21D)
FACTOR
The regulation
(Q12D-Q12E-Q12H)
FACTOR
Competitors
improvements
(Q10K-Q12G)
FACTOR
Difficulties
complying with
regulation
(Q17G-Q17I)
+
-
+
Relations between factors that influences environmental performance and the
indicators of environmental performance
+
The data analysis also shows a number of interesting elements that are described below:
? 95% of the manufacturing sector mentioned that environmental responsibility is
emphasized through well -defined environmental policies and procedures. Only 76% of
waste management facilities mentioned that environmental responsibility is emphasized
through well-defined environmental policies and procedures (mean of positive answers
across all sectors is 85%).
? The results show that when management staff have strong environmental values, the
environmental responsibility is more emphasized through well -defined environmental
policies and procedures (Q10D: 81% vs 44%, Q10E: 76% vs 36%, Q10F: 75% vs 31%, Q10G: 79% vs 45%, Q10H: 79%
vs 45%).
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
39
3.5.3 Survey analysis by indicators: self perception of compliance
The third indicator that we tried to create could not be aggregated in the same manner as the
others presented in this report. The difficulty we faced analyzing thi s indi cator ca me fr om the fact that there are
important variations in the type of pollution emitted by a facility. We were able to find a relationship
between the waste management and the motivating factor.
Nonetheless, there were few other statistical relationships between some more individual
elements regarding the “perception of compliance” indicator. These must be analyzed with
caution because of the large number of facilities that were not concerned with several of them.
Still, it does provide some insi ght for the facilities for which the information was available.
Table 22:
Element - Q23_a Water quality
Factors Beta (?) Sigma (?)
Corporate image 1.380 0.018
Diffi culties complying with regulation -0.941 0.045
Consta nt -1.895 0.000
Element - Q23_b Water use
Factors Beta (?) Sigma (?)
Corporate image 1.788 0.001
Consta nt -2.160 0.000
Element - Q23_d Land management and recl amation
Factors Beta (?) Sigma (?)
Investor pressure 1.331 0.005
Consta nt -2.594 0.000
Element - Q23_f Noise poll ution
Factors Beta (?) Sigma (?)
Competitor improvements 1.246 0.020
Consta nt -2.527 0.000
Element - Q23_g Odour polluti on
Factors Beta (?) Sigma (?)
Corporate image 1.849 0.003
Consta nt -2.608 0.000
Source: Adva nis 2014, survey data.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
40
3.5.4 Ranking of the factors by respondents
Respondents were asked to identify the elements they felt were the strongest influence on
environmental performance. First, the respondents were asked to mention their top three
elements (which are a part of the larger factor) for each bloc of questions re levant to corporate
environment, external factors, and barriers to environmental practices. Then, only the top three of
each bloc were presented to them to choose the most important three out of the nine elements
left.
Interestingly, barriers to environmental practices were not the most important elements affecting
environmental decisions. Rather, two elements composing the external factors were selected:
? Complying with current government environmental regulations (n=180)
? Meeting industry standards (n=82)
One element of the internal corporate environment factor also emerged as being of large
importance, this element being:
? Upper management's belief in a moral responsibility for protecting the environment
(n=72)
Chart 3: Top three elements
Clear internal environmental policies or
standards that apply to all facilities
n=131
Complying with current government
environmental regulations
n=221
High upfront investment expense
n=102
Upper management's belief in a moral
responsibility for protecting the environment
n=137
Ensuring a good corporate image
n=98
Meeting industry standards
n=155
Desire to be better prepared to meet
anticipated environmental regulations
n=151
Lack of return on investment
n=79
Not required by law
n=71
Upper management's belief in a moral responsibility for protecting the environment n=72
Complying with current government environmental regulations n=180
Meeting industry standards n=82
Three most influential factors that have led
to environmental improvements at your
facility within the last 5 years
Three most influencial factors that have led
to environmental improvements at your
facility within the last 5 years
Three most significant barriers to the
adoption of environmental improvements at
your facility
Top three factors chosen per dimension
Top three among the top nine factors
Corporate environment External factors Barrier to environmental practices
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
41
3.6 Summary of Key Findings
This phase of the research has shown solid trends. First, we were able to establish a profile of the
participating facilities. This was essential since the industrial structure is diverse in Albe rta. It was
necessary to know if the characteristics of the facilities (e.g. size, multinational , level of
complexity, sector of activity, etc.) would be more important than the factors that were
developped in explaining the environmental performance. The results showed some difference
occurring in the manufacturing sector, that weren’t present amongst other industry classifications,
but the characteristics were not identified as being the most important elements.
Second, the model was used to test the effects of the factors on the indicators of environmental
performance. When the statistical analysis was conducted, a number of factors were shown to
influence the indicators. These results gave a direction for the phase 4 of the research. Knowing
the important factors, the focus was now on understanding how and why they were influencing
the indicators of environmental performance.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
42
Phase 4 – In-depth Qualitative
Interviews
Phase 4 precisely addressed the limitation of retrospective bias, as interviews conducted from April
24 to May 15, 2014 documented the practices of managers at the facility level. Participants were
contacted as a follow-up of survey completion on the neutral ground that their practices were of
special interest to research.
This phase was undertaken to explore more deeply some of the interesting elements found in the
research, and areas that required further clarification. Through 22 qualitative interviews with
managers at facilities, this phase of research explored in depth the explicit and implicit factors
influencing environmental performance decisions. It generated a better understanding of the
various factors that influence environmental performance decision making, with a view of
supporting future policy development and program design pertaining to environmental
performance and excellence.
The results were used to design the quantitative grid used in the final phase of research.
4.1 Interview grid design (Phase 4)
Section 3.5, presented the factors that emerged from the quantitative data analysis : regulations,
corporate image, management values, and perception of competition. From this chart, we
formalized three research questions in Phase 4 to investigate further environmental decision-
making.
The initial interviews were designed to explore this area of research described by the following
questions:
o How are environmental regulations and improvements related at facilities? How can
barriers to compliance be decreased? (grid A)
o How are corporate image and environmental improvements related at facilities? (grid B)
o How are management values, perception of competition, and environmental
improvements r elated? (grid C)
Data collection and analysis were adapted from the Grounded Theory approach developed by
Strauss and Corbin (1990), which we considered more appropriate to this research than the more
inductive version proposed by Glaser. Data collection relied on theoretical questioning; data
generated by each grid after five interviews allowed us to assess which research questions showed
the best potential for enriching our understanding of Phase 3 results (Chart 4). The most promising
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
43
grid was further refined (interview grid 2, in Appendix 3) in light of the qualitative data analyzed
and that grid used for data collection until saturation was reached. Interviews were prepared for
analysis immediately after data collection and coded by breaking the text into meaningful
elements and assigning a representing concept to each. After a number of iterations, data
saturation was obtained as nothing of significance seemed to emerge from additional data
collection.
Char t 4: research themes
It should be noted that several elements of our analysis are typical of a grounded theory,
conceived in a practical way:
? The analysis starts from a framework of reference rather than relying on pure induction;
our initial framework was provided by the previous phases of this research.
? Data collection and analysis by constant comparison occurred simultaneously, and
theoretical sampling was used; we chose respondents likely to shed light on the themes as
they emerged from the data collection process.
? Theoretical questioning, the evolutive set of questions , was used (several interview grids).
4.2 Results
We also intended to develop at this stage an understanding of the dynamic interplay of explicit
and implicit factors contributing to decision making.
As mentioned above, the factors that emerged from the quantitative data analysis , as described in
Chart 2, informed the themes of our interview questions.
Corporate Image Management and competiti on
Regulation and barriers
Phase 3
results
Interview grid
B
Interview grid
A
Interview grid
C
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
44
We first investigated the three themes of (1) Regulations and environmental improvements at
facilities, (2) Corporate image and environmental improvements, and (3) Management values,
perception of competition and environmental improvements, systematically looking for an in-depth
description and in each case.
Then the interview grids proposed in Appendix 3 evolved after the first interviews in order for
subsequent data collection to shed light on emerging themes.
As the data collection proceeded, it became clear that the theme of regulation was at the centre
of interviewees’ self-described perception of environmental performance and more important to
them than corporate image, management values and competition, in influencing facility level
environmental performance.
The interview grid focusing on regulation was used and refined to formalize the interview grid 2
that was used in subsequent interviews , until data saturation was reached.
Our results show that regulation interplays with a number of other factors in environmental
decision making at the facility level. Regulation appears to have the following impact (Chart 5):
? an explicit effect on the organizational dynamics—the sum of actions taken within the
organization;
? an implicit effect on people in general, both within and outside the organization, which in
turn will influence environmental practices at facilities.
Regulation is described as having a role in clarifying the levels of expectations regarding
environmental practices at facilities. Interviewees describe how they rely on regulation when it
comes to deciding which projects they need to prioritize: “I guess with any kind of standard or any
kind of act or regulation or directive, if it’s written on paper and it’s fairly clear, then most people
can abide by it very quickly, buy into it very quickly.”
Regulation also is seen as equalizing the levels of environmental performance among competitors
of the same industry “so that everybody is sort of playing from an equal footing.” In other words:
“If it’s seen as being provided by the government, it provides kind of an industry standard so that
everybody knows that they are playing by the same rules .”
Focusing the analysis on the social side of regulation (its effect on people) allows the identification
of implicit factors in decision making that were revealed in the interview data.
Common among all of the interviews was the desire to be seen as members of an organization
that is compliant with regulation. Sentences such as “Really, we don’t have any roadblocks when it
comes to environmental protection,” or “Well, everybody is concerned with what (they) put in the
environment, so it’s our responsibility to, well, to plan, to take care of what we have for the next
generation,” were typically found in interviews. Taken together, they convey the idea that
environmental values are shared by employees and management at facilities, in the organization,
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
45
and in the community and that this influences decision making: “I think, you know, the employees’
opinion of being environmentally conscious is important to our senior management , and the
decisions we make are based on it.”
Also, it is interesting to note that this social dynamic is mentioned by interviewees when it comes
to describing the reasons for facilities to go beyond compliance.
Comments comparing their own facility’s environmental practices with known practices by other
organizations and other value-laden comments about practices at the facility level show that social
influence is a factor of environmental performance beyond compliance. It is perceived as coming
both from the personnel at the facility and the interaction with the community. Incentives to go
beyond regulation are mostly described in such social terms by interviewees:
“From a financial perspective, I would say it’s not about the money because , really, when
you are managing an environmental liability, I don’t think the government is able to offer
any type of a concession that is really going to be meaningful or material to the big picture.
But what they can offer is some recognition to the compa ny that they’re doing a good job so
that the company can leverage that with the other stakeholder groups . Whether that’s a
community or the province at large, it creates a sense of pride and accomplishment.”
Finally, a risk of st agnation in environmental practices is described (“everybody thinks we should
be proactive on these things, well, that’s not necessarily true”) when the regulator is perceived as
not rewarding organizations that anticipate future regulation, for instance , by changing its
environmental priorities or by not updating regulations regularly enough, which both penalize
environmental innovators.
The following quotes (Chart 4) exemplify in details our results for Phase 4, and a model is
proposed to integrate the implicit and explicit factors of environmental decision making at
facilities (Chart 5): each arrow of Chart 5 is illustrated by a quote from Chart 4.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
46
Chart 4: Four di mensions of environment al performance at facilities
E
n
f
o
r
c
i
n
g
c
o
m
p
l
i
a
n
c
e
Social lever Regulatory lever
B
e
y
o
n
d
c
o
m
p
l
i
a
n
c
e
clarifying the levels of expectations
equalizing the levels of environmental performance
collateral effects of regulation
environmental values
formal recognition of the efforts to go beyond
compliance
I guess with any kind of standard or
any kind of act, or regulation or
directive if it’s written on paper and
it’s fairly clear then most people
can abide by it very quickly, buy
into it very quickly.
I think because they provide that
incentive, that guidance for a
company to put capital, or
whatever kind of budget towards
something: if they don’t have to
do it, they won’t do it. Basically
that’s what it comes down to.
Why do regulations work?
Well if you’re running any kind
of operations, you need
specific guidelines, and
operation depends on
guidelines to function.
Regulation brings certainty to
that process and allows us to
know that we are making an
investment of our time, our
efforts, our finances etc that
will provide us benefit in our
operations.
Set a common threshold across the province. If Alberta took the lead
and established goals, objectives, took the lead on perhaps finding
funding to implement some of these programs [...] so that everybody
is sort of playing from an equal footing that would be best.
If it’s seen as being provided by the government it provides kind of
an industry standard so that everybody knows that they are playing
by the same rules. No company is put at an advantage versus
another company because…you know they’re able to cut corners.
Everybody has to basically walk the same line kind of thing.
In some areas, you try to get to where
you think it’s going, if you’re watching
other jurisdictions, but sometimes, you
have to be careful or that, because
Alberta, in some instances, seems to
be a little slower in making some of the
adjustments. Sometimes you can put
yourself at a competitive disadvantage
by trying too far ahead of the
regulations.
Anything that we wanna do, in terms of improving environmental
performance, typically is costly. Significant money, significant efforts,
it takes a long time. We certainly don’t want to start down the road of
doing something only just to be told that we should be doing
something else. That is extremely unproductive. And that is one of the
reason that we wait for the regulation as opposed to … everybody
thinks we should be proactive on these things, well that’s not
necessarily true, because you can spend a lot of time and efforts doing
something that you think is beneficial only to be told that we should
be doing something else.
The waste control regulation
hasn’t changed, the main
one for my business hasn’t
been changed since 1996.
They had a study group
several years that went
through a reworked
everything and then it never
got passed the planning
stage. The government
priority hasn’t been on my
side of the business.
So my direct experience with anticipating future regulations is that
often times Alberta Environment isn’t able to, or, Alberta Environment
isn’t able to, or doesn’t enact the regulations so you end up spending
more money than you needed to and then that obviously makes it
more difficult to achieve, to acquire money for other future
environmental issues.
social comparison
For industry Greenhouse Gas emission intensity, taking the process
emission component out of the intensity calculation does not
encourage improvements in production emissions. As long as you
are meeting your approval you won't really do much more.
I would like to see the general public educated a bit more on how
industry is doing as a whole. The companies that repeatedly have
the failures are casting a shadow over the entire industry and it is
disheartening for the companies operating responsibly.
Beyond cost i would have
to say one of the barriers
that i run into is really
changing people
mindsets.
Current regulations encourage companies to stay well clear of
defined regulatory limits to avoid compliance orders.
Regulations are not equally understood across the province, as
different regions and different individuals within the regulatory
sector, interpret terms and conditions of the regulations (especially
certain regulations with vague terminology) differently and
inconsistently across the province.
I think if they were able to standardize some of the key
performance indicators they are interested in, if they were doing
a better job at communicating that out to the public, and
companies would have to take notice of where they sit on that
perspective.
The EnviroVista Program is an example of how companies with
an Environmental Stewardship mindset can be innovative
beyond regulatory requirements to the benefit of all Albertans.
What is needed is incentives to help others understand the
benefits of working towards that same mindset - show the
positives of changing behavior.
c
a
h
f
e
i
a
g
d
b
…younger people working here,
people fresh out of the university so I
think it’s more of a cultural thing with
them [...] I guess the influence is they
do want see us do the right thing as
well as obviously we have to be in
compliance to stay operating. I think,
you know, the employees’ opinion of
being environmentally conscious is
important to our senior management
and the decisions we make are based
on it.
Well, everybody is
concerned with what
(they) put in the
environment, so it’s our
responsibility to, well to
plan, to take care of what
we have for the next
generation.
I’ll call it the social license, but really it comes down to
competition for people within a local area. People have to
believe that you’re a responsible company or they don’t want
to work for you.
The sort of a social perspective, so [here] we have a growing
interest from the public who would like to divert on material
and they are now pressing to say “we want to be able to
recycle more and more material we want to be more like
the Edmonton, Calgary or Halifax”, and as those social
values evolve it puts pressure on our muncipality to sort of
address those issues.
From a financial perspective, I would say it’s not about the
money because really, when you are managing an environmental
liability, I don’t think the government is able to offer any type of
a concession that is really going to be meaningful, or material, to
the big picture. But what they can offer is some recognition to
the company, that they’re doing a good job, so that the company
can leverage that with the other stakeholder groups, whether
that’s a community or the province at large, it creates a sense of
pride and accomplishment
I mean I don’t even know if they are aware we have been ISO 14001
certified. Obviously if they came to visit our site they would know
that. Maybe asking companies that are certified to register and
notify them so they understand, I guess the companies that are in
Alberta that are going above and beyond. And I don’t know if you
know if, some sort of certificate to be issued from the government,
or some sort of recognition so that it further instills that to senior
management, that not only do we know we are doing the right
thing but the government recognize that as well.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
47
Chart 4 shows four dimensions of environmental performance at facilities with different rows for
environmental performance (compliance and beyond compliance), and two columns to describe
the means of influence (social lever and regulatory lever) that can be used for environmental
performance beyond compliance.
Each verbatim quote was selected from interviews for its revealing power to convey the core
content of the data collected. All interviewees’ contributions a re represented by a quote.
The regulatory lever used to enforce compliance works by clarifying the levels of expectations by
managers at facilities, thus allowing them to play from an equal footing with competitors in their
industry.
The social lever used to enforce compliance plays on the social licence to operate, with a
perception of the importance of environmental consideration that is increasing with the new
generation.
That social lever is showing potential for environmental performance beyond compliance: the
social comparison influences both the general public and facility staff towards pushing for and
adopting exemplary environmental practices. Also, data shows that a potential reward in the social
sphere is a motivating factor for beyond compliance performance.
Finally, a risk of stagnation is described as a collateral effect of regulation. The necessity for
regulation to keep pace with evolving practices is stressed, as failure to do so might discourage
beyond compliance initiatives.
Chart 5 shows how perception of regulation plays implicitly on environmental values held both by
staff at facilities and in the general public to create a social dynamics that is beneficia l to
environmental performance beyond compliance.
Regulation is also explicitly pointed out as a factor by managers describing the organizational
dynamics at facilities; it can be a matter of cost of non-compliance or corporate image for
instance.
Beyond compliance organizational standards result from both the shared environmental values by
staff and the organizational dynamics.
However, a risk of stagnation exists that could impair the ability of organizations to perform
beyond compliance when the organization is perceived not to have been rewarded in the past for
taking the risk and cost of a proactive, beyond compliance performance.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
48
Improved organizati onal standards (beyond compl iance)
Improved envi ronmental practices at f acil ity
Perception of regulation at facility
Organizational compli ance to re gul ation (procedures) Shared environmental concern at fac ili ty (values)
Organizational dynamics (Expl ici t f actors)
? financial profitability /cost of non-compliance
? corporate image
? internal poli cies and audits
? benchmarking (industry and competition)
? ISO and external audits
- technol ogy improv ements
Social Dynamics (Impl ici t f actors)
? media
? community
? employees
? managers
? on site communicati on
Risk of
stagnation
Chart 5: A model of factors interaction at facilities
a b
c d
h
e f g
i
It should be noted that—for future policy development and program design pertaining to
environmental performance and excellence—regulation, while widely considered the main driver
of environmental performance at facilities, also has its shortcomings. This qualitative phase of
research also shows that the social lever available to policy makers should be further investigated,
as it seems to be a useful complement to regulation in order to encourage the move of facilities to
beyond compliance environmental practices: “I think if they were able to standardize some of the
key performance indicators they are interested in, if they were doing a better job at
communicating that out to the public, and companies would have to take notice of where they sit
on that perspective.”
These results resonate well, for instance, with Paddock’s (2011) call at the Ninth International
Conference on Environmental Compliance and Enforcement to notice that “It is important for those
managing compliance and enforcement programs to also think about how their work can influence
the internal economic considerations of r egulated entities and help shape environmental values.”
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
49
Phase 5 – Validation
The purpose of phase 5 was to validate the research results. This involved two elements, the first
was verification of our findings against the findings of academic literature. The second, involved a
short quantitative web survey circulated to all participants from the phase 3 quantitative survey.
5.1 Links with scientif ic literature
The review of the academic literature completed in phase 1 identified a range of factors that
influence environmental performance decision-making process at facilities.
The value of this research was not only that it confirmed that the factors identified i n the literature
were also at play within facility-level environmental performance in Alberta, but also that it
expands upon this to provide a relative ranking of these factors within the Alberta context and
improves our understanding of what aspects of environmental performance these factors
influence most significantly.
We revisited the academic literature to further explore and test our results against other academic
findings relevant to the three most important factors identified in this research: regulation,
management values, and industry standards.
First, and unsurprisingly, our quantitative results ranking regulation as the most important driver
13
of environmental improvement beyond compliance at facilities fall in line with most of the
scientific literature on the topic and resonate well for instance with Gray and Shimshack’s (2011)
review on monitoring and enforcement or with Holstein and Gren’s analysis (2013) of violation of
environmental regulations.
However, our qualitative results (Phase 4), by revealling a risk of stagnation as regulation fails to
keep up with best practises, invite to further investigate the claim by Khanna and Speir (2013)
14
or
by Frondel et al (2008) that seems to mechanically link the existence or prospect of stricter
environmental regulations to innovation. Rennings and Rammer (2010) and Kemp and Pontoglio
(2011), for instance, had also advised to use caution before establishing such a link: “ The ?fth issue
of understanding is that environmental policy can have both a positive and a negative in?uence on
the development and adoption of particular environmental innovations. More attention should be
13
180 ranked it as very a important fa ctor out of 264 a nswers.
14
“It is therefore i mportant to have strict enfor cement of existing regulation and a t hreat of stringent regulations in the fut ure to
motivate a cha nge in corporate environmental behavior. Moreover, the expectation of tougher regulations in the future, even i f they
do not mandate specific technologies, can sti mulate green technologi cal innovation.”
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
50
given to how particular policies favour or disfavour particular innovations. ” Our results indicate
that further research is needed to understand the different facets of the adverse dimension of
regulation described at facilities, like the effect of perceived changing environmental priorities by
the regulator or that of the irregular update of regulations.
Second, environmental values of managers and the belief in a moral responsibility for protecting
the environment were identified as important drivers of performance by the literature (Khanna
and Speir, 2007; Wu, 2009). For Paddock (2011), “Values are one of the key driver s of
environmental behavior. People tend to act in pro-environmental ways when a situation activates
a feeling of moral obligation to do so—simply put, pro-environmental behaviors are more likely
when people feel morally responsible to undertake them.” Delmas and Toffel (2011) had shown
that organizational characteristics lead managers to interpret pressures differently. The
convergence of our results with the existing literature indicates an interesting avenue for research
investigating the link of environmental performance beyond compliance at facilities with
corporate social responsibility (CSR). This type of research could shed more light on the role of
personal values in environmental decision-making processes (Aguinis and Glavas, 2012).
15
Third, the interest to promote industry standards for environmental performance beyond
compliance at facilities, as stated by managers in our quantitative data, is consistent with results
by Tari et al. (2012). However, caution is advised by some researchers who stress that
consideration should also be given to the role of third-party auditing (Gamper-Rabindran and
Finger, 2013) or environmental institutional distance between headquarters’ and subsidiaries’
countries (Aguilera-Caracuel et al., 2012), for instance. Such considerations limit the affirmation of
a direct, beneficial role of industry standards —isolated from other factors—for beyond
compliance practices at facilities. Self-reporting of perceptions by managers at facilities may
constitute a limitation of our study in this respect, although a social desirability bias effect may be
mild. (Milfont, 2009)
5.2 Questionnaire and Data collection
The factors described to respondents in the Phase 5 questionnaire had been identified in Phase 3
(quantitative) and refined in Phase 4 (qualitative). Data was collected between May 15 and May
26, 2014. We contacted respondents of our Phase 3 quantitative survey for a short, online
confirmatory follow-up survey consisiting in 15 questions and provided them the opportunity to
share their comments on our results using a contact phone number.
15
“Given the findi ngs regardi ng supervisor commitment to CSR, some resear cher s have found that its a ntecedents i ncl ude values
(Mudra ck, 2007), congruence of individual values with organizational values (Bansal, 2003) and individual concer n with certain issues
(Bansal, 2003; Bansal & Roth, 2000; Mudrack, 2007). Personal values are part of the deci sion -making processes whether individuals
realize it or not, so it is important to understand how values influence engagement in CSR (Hay & Gray, 1974; Swanson, 1999). Other
predictor s of individual commitment to CSR i nclude prag matic aspects, such as awareness of CSR gui delines (Weaver et al., 1999b), CSR
training (Stevens et al., 2005), and attendance of CS R conferences (Johnson & Greeni ng, 1999; Weaver et al., 1999a, 1999b)”.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
51
Of the respondents from the Phase 3 quantitative survey, 130 responded to this online survey to
validate the findings (no feedback call was received)
16
. The questionnaire used for Phase 5 can be
found in Appendix 4. The main factors of environmental decision making that appeared in Phase 3
of this research and were refined in Phase 4 were presented to respondents:
? clarifying role of regulation
? equalizing role of regulation
? importance of social values
? regulator challenges
5.3 Results
The tables presented below detail our confirmatory survey results. Altogether, these quantitative
results strongly support the findings of the qualitative analysis of Phase 4:
? Almost all respondents agree that regulation plays a role in clarifying the levels of
expectations for environmental performance;
? Nine out of 10 respondents agree regulation plays a role in equalizing the minimum levels
of environmental performance among competitors.
Table 25:
Agree Disagree
q1a -- Regulation plays a role in clarifying the levels of expectations for environmental performa nce. 98% 2%
q1b -- Regulation plays a role i n equali zing the levels of environmental performance a mong competitors (A
level playing field exi sts for all fa cilities).
87%
13%
q1c -- Regulation helps environmental ma nagers at the fa cility advocate for impr ovement to upper
management.
98%
2%
q1d -- Inspections are i mporta nt beca use they hel p our empl oyees and management focus on
environmental issues.
91%
9%
q1e -- Reg ulation is the si ngle most important driver of environmental progress in our industry. 84% 16%
q1f -- Regulation by prescri bing a level of environmental per for mance does not encourage environmental
innovation.
51%
49%
Source: Adva nis 2014, second survey data.
Substantiating the collateral effect of regulation and the risk of stagnation in environmental
improvement, half of respondents consider that regulation, by prescribing a level of
environmental performance, does not encourage environmental innovation.
As evidence of the regulator’s challenges :
? Only six out of 10 respondents say the current regulatory system encourages beyond
compliance performance.
? Half of respondents say current regulations are equally enforced across facilities in the
same sector.
? Regulation is clear for seven respondents out of 10 (89% in the Manufacturing sector),
which also leaves room for improvement.
16
Out of the possible 221 answers. This sa mple was not fa cilities based, since some respondents had ma ny facilities under their
supervision.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
52
According to nine out of 10 respondents, the fact that the staff has been advocating for
environmental improvement has led to environmental progress in their organization. This
illustrates the importance of social values for environmental decision making at facilities (social
lever). Furthermore, for almost as many respondents (86%), a formal recognition of efforts to go
beyond compliance would motivate employees and management to do more.
Corporate image and social values interplay to influence environmental performance at facilities.
Advice from government officials that could help improve environmental performance are
welcome by respondents, and formal recognition of efforts to go beyond compliance would be
well received.
Although working habits and mindsets can be a barrier to environmental performance, the fact
that the staff often advocates for environmental improvement has, in fact, led to environmental
improvement within organizations. It is to be noted that the respondents that have weaker
practices mentioned more often that changing the mindsets and habits within their organization
was a challenge.
Table 26:
Agree Disagree
q2a -- Our management would be open to advice from government offi cials that could help improve our
environmental per for mance.
90% 10%
q2b -- An important barrier to environmental per for mance comes from the di ffi culty of cha nging working
habits and mindsets.
79%
21%
q2c -- The fact that the sta ff is a dvocating for environmental impr ovement has led to environmental
progress in our organi zation.
90%
10%
q2d -- A for mal recognition of our efforts to g o beyond compliance would motivate our empl oyees and
management to do more.
90%
10%
Source: Adva nis 2014, second survey data.
It is generally considered that current regulatory levels are sufficient to control the respondent
facility’s impact on the environment.
Table 27:
Agree Disagree
q3a -- Current regulations are clear (the requirements are easy to understa nd). 71% 29%
q3b -- Current regulations are equally enfor ced a cross facilities in the same sector. 53% 47%
q3c -- Current regulatory levels are suffi cient to control our fa cility's impa ct on the environment (i mpa ct
relates to both the resour ce use a nd emissions (i. e. conservation, efficiency and environmental quality).
89% 11%
q3d -- Current regulatory system encourages beyond compliance performa nce. 61% 39%
Source: Adva nis 2014, second survey data.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
53
Conclusion
In conclusion, the process and results of this research lead us to consider the question of
Understanding Organizational Decision Making Related to Environmental Performance with
nuance and open avenues for research.
To understand “What factors influence environmental performances among regulated facilities in
Alberta?” this research relied on a sequence of exploratory phases , starting with a documentation
and literature review. The interviews with managers at facilities allowed to identify survey items,
which were quantitatively validated by managers at facilities (N=264). The other series of
interviews led us to determine dimensions of the factors, and final results were validated by a
quantitative survey of managers’ perceptions at facilities (N=130).
In line with most of the scientific literature on the topic, our results rank regulation as the most
important driver of environmental improvement at facilities.
However, beyond providing a quantitative measure of the relative importance of regulation
compared with other significant factors described by respondents of our survey, this research also
shows the collateral and segregating effects of regulation, with a risk of stagnation. According to
four out of 10 facility managers, regulation does not encourage beyond compliance performance.
Looking at the six factors identified as important, our results should not be narrowed down
exclusively to regulation. Overall, our results point towards potential benefits from
complementary actions to regulation in order to increase environmental leadership in Alberta.
Both quantitative and qualitative results open additional avenues of research for environmental
performance improvement and for policy design.
More research will allow policy makers to understand the different facets of the adverse
dimension of regulation, to explore the role of personal values in environmental decision-making
processes and a possible link to corporate social responsibility research, and to shed light on the
actual role of industry standards for improved environmental practices at facilities.
Future policy development and program design pertaining to environmental performance beyond
compliance and excellence will need to consider regulation’s role at the facility level, as this
research indicates that it interplays with a number of organizational and social factors. Innovative
mechanisms can already be conceived at this stage.
For example, an annual autoevaluation of facilities by environmental managers would permit
them to rank themselves within the industry on a number of practices and standards. This could
play on implicit factors to create a beneficial social dynamic for environmental performance
beyond compliance.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
54
Also, the official recognition of facility-level efforts for environmental improvement and
innovation beyond compliance would likely have an effect on the organizational dynamics, as
evidenced in the qualitative data.
Finally, as evidenced in our final quantitive validation of research, inspections at facilities could be
organized in such a way as to increase the perception of a more equal enforcement of regulation
across industries and the province.
An innovative research design and proven data collection capacities have allowed the research
team to address adequately a complex research question, generating robust results. We wish to
stress here the stimulating presence and constant support we have received from the ESRD
project team, and thank them for their collaborative spirit in this research:
? Farrah McFadden
? Wayne Crosby
? Myles Kitagawa
? Shauna Kryba
? Kim Zeleny
For all these reasons, we are confident that Understanding Organizational Decision Making
Related to Environmental Performance will allow Alberta ESRD to use new knowledge and
understanding that can support options that seek higher levels of performance, as part of the
focused effort of the Government of Alberta to move forward in establishing priority initiatives
pertinent to the environment.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
55
Bibliography
1. Aguilera-Caracuel, J. Aragón-Correa, J., Hurtado-Torres N., and Rugman, A. (2012). The
Effects of Institutional Distance and Headquarters’ Financial Performance on the
Generation of Environmental Standards in Multinational Companies, Journal of Business
Ethics, 105(4), pages 461-474.
2. Aguinis, H., and Glavas, A. (2012). What we know and don’t know about corporate social
responsibility: A review and research agenda. Journal of Management, 38, 932-968.
3. Allison, G.T. (1971). Essence of Decision: Explaining the Cuban Missile Crisis, Boston: Little,
Brown.
4. Buysse, K., and Verbeke, A. (2003). Proactive environmental strategies: a stakeholder
management perspective. Strategic Management Journal , 24(5), 453–470.
5. Clarkson, P. M., Vasvari, F. P., Richardson, G. D., and Li, Y. (2008). Revisiting the relation
between environmental performance and environmental disclosure: An empirical analysis.
Accounting, Organizations and Society, 33(4-5), 303–327.
6. Darnall, N., Henriques, I. and Sadorsky, P. (2010), Adopting Proactive Environmental
Strategy: The Influence of Stakeholders and Firm Size. Journal of Management Studies, 47:
1072–1094
7. Delmas, M., and Toffel, M. (2004). Stakeholders and environmental management
practices: an institutional framework. Business strategy and the Environment, 222, 209–
222.
8. Delmas, M., and Toffel, M. (2008). Organizational responses to environmental demands:
Opening the black box. Strategic Management Journal .
9. Delmas, M., and Toffel, M. (2010). Institutional pressures and organizational
characteristics: implications for environmental strategy. Working Paper Prepared for the
Oxford Handbook of Business and the Environment - Division of Research and Faculty
Development, Harvard Business School
10. Fairman, R., and Yapp, C. (2006). Factors affecting food safety compliance within small and
medium-sized enterprises: implications for regulatory and enforcement strategies. Food
Control, 17(1), 42–51.
11. Frondel, M., Horbach, J., and Rennings, K. (2008). What triggers environmental
management and innovation? Empirical evidence for Germany. Ecological Economics, (07).
12. Gamper-Rabindran, S. and Finger, S.R. (2013). Does Self-Regulation Reduce Pollution?
Responsible Care in the Chemical Industry. Journal of regulatory economics, 43(1), 1-30.
13. Gibbs, C., Gore, M. L., McGarrell, E. F., and Rivers, L. (2009). Introducing Conservation
Criminology: Towards Interdisciplinary Scholarship on Environmental Crimes and Risks.
British Journal of Criminology, 50(1), 124–144.
14. Glicksman, R., and Earnhart, D. (2007). The Comparative Effectiveness of Government
Interventions on Environmental Performance in the Chemical Industry. Stanford
Environmental Law Journal , 719(forthcoming), 1–43.
15. Glicksman, R. (2008). Effectiveness of Government Interventions at Inducing Better
Environmental Performance: Does Effectiveness Depend on Facility or Firm Features?
College Environmental Affairs Law Review, 35(3).
16. Gonzalez-Benito. (2006). A review of determinant factors of environmental proactivity.
Business Strategy and the Environment, 15, 87–102.
17. González-Benito, J., and González-Benito, Ó. (2010). A study of determinant factors of
stakeholder environmental pressure perceived by industrial companies. Business Strategy
and the Environment, 19, 164–181.
18. Gray, W. B., and Shimshack, J. P. (2011). The Effectiveness of Environmental Monitoring
and Enforcement: A Review of the Empirical Evidence. Review of Environmental Economics
and Policy, 5(1), 3–24.
19. Gunningham, NA, Thornton, D., and Kagan, R. (2005). Motivating Management: Corporate
Compliance in Environmental Protection. Law and Policy.
20. Gunningham, Neil. (2009a). Environment Law, Regulation and Governance: Shifting
Architectures. Journal of Environmental Law, 21(2), 179–212.
21. Gunningham, N. (2009). On the Limits of Management Based Regulation. Working Paper
69, National Research Centre for Occupational Health and Safety Regulation (NRCOHSR) -
Australian National University
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
56
22. Gunningham, Neil, Kagan, R. A., and Thornton, D. (2004). Social License and Environmental
Protection : Why Businesses Go beyond Compliance Social License and Environmental
Protection : Why Businesses Go Beyond Compliance, 307.
23. Harrison, K. (1995). Is cooperation the answer? Canadian environmental enforcement in
comparative context. Journal of Policy Analysis and Management, 14(2), 221–244.
24. Henri, J.-F., and Journeault, M. (2008). Environmental performance indicators: an
empirical study of Canadian manufacturing firms. Journal of environmental management,
87(1), 165–76.
25. Holstein, F., and Gren, I. (2013). Violation of environmental regulations in Sweden:
Economic motives, environmental attitudes, and social capital. Working Paper Series,
Department Economics, Swedish University of Agricultural Sciences. Available at
:http://swopec.hhs.se/slueko/abs/slueko2013_003.htm
26. Howard?Grenville, J., Nash, J., and Coglianese, C. (2008). Constructing the license to
operate: Internal factors and their influence on corporate environmental decisions. Law
and Policy, 30(1), 73-107.
27. Kagan, R. (2003). Explaining corporate environmental performance: how does regulation
matter? Law & Society Review, 1–55.
28. Khanna, M. and Speir, C. (2007). Motivations for Proactive Environmental, Management
and Innovative Pollution Control. AAEA Meetings, Portland, Oregon July 29- August 1,
2007.
29. Khanna M, Speir C. (2013) Motivations for Proactive Environmental Management.
Sustainability, 5(6):2664-2692.
30. Kemp, R., and Pontoglio, S. (2011). The innovation effects of environmental policy
instruments - A typical case of the blind men and the elephant? Ecological Economics, 72,
28–36.
31. Keyes, D. L., and Mcknight, K. M. (n.d.). Environmental Conflict Resolution : Evaluating
Performance Outcomes and Contributing Factors, 27(1).
32. Lin, C.-Y., and Ho, Y.-H. (2010). Determinants of Green Practice Adoption for Logistics
Companies in China. Journal of Business Ethics, 98(1), 67–83.
33. Liu, L. (2012). Analysis of Firm Compliance with Multiple Environmental Regulations.
Economics & Intl. Business Working Paper No. 12-07, Sam Houston State University
34. Milfont, T. L. (2009). The effects of social desirability on self-reported environmental
attitudes and ecological behaviour. The Environmentalist, 29, 3, 263-269.
35. Mitchell, R. (2006). Study on identifying rural sociological barriers to adoption. Research
report, Alberta Research Council, Alberta, Canada.
36. Nawrocka, D., and Parker, T. (2009). Fi nding the connection: environmental management
systems and environmental performance. Journal of Cleaner Production, 17(6), 601–607.
37. Olsthoorn, X., and Tyteca, D. (2001). Environmental indicators for business: a review of the
literature and standardisation methods. Journal of Cleaner Production 1–27
38. Paddock. (2011). Compliance and Enforcement. In Ninth International Conference on
Environmental Compliance and Enforcement 2011 (pp. 589–615).
39. Parker, C., and Nielsen, V. (2009). The Challenge of Empirical Research on Business
Compliance in Regulatory Capitalism. Annual Review of Law and Social Science, 5(1), 45–
70.
40. Prakash, A. (2001). Why do firms adopt beyond-compliance environmental policies?
Business Strategy and the Environment, 10(5), 286–299.
41. Prakash, A., and Potoski, M. (2012). Voluntary environmental programs: A comparative
perspective. Journal of Policy Analysis and …, 31(1), 123–138. doi:10.1002/pam
42. Ramus, C. a. (2005). When Are Corporate Environmental Policies a Form of Greenwashing?
Business & Society, 44(4), 377–414.
43. Rennings, K. and Rammer, C. (2010). The impact of regulation-driven environmental
innovation on innovation success and firm performance, ZEW Discussion Papers 10-065,
ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic
Research.
44. Russo, M. V. (2009). Explaining the impact of ISO 14001 on emission performance: a
dynamic capabilities perspective on process and l earning. Business Strategy & the
Environment (John Wiley & Sons, Inc), 18(5), 307–319.
45. Shimshack, J. P., and Ward, M. B. (2005). Regulator reputation, enforcement, and
environmental compliance. Journal of Environmental Economics and Management, 50(3),
519–540.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
57
46. Tari, J.J., Molina-Azorin, J.F., and Heras, I. (2012). Benefits of the I SO 9001 and ISO 14001
standards: A literature review. Journal of Industrial Engineering and Management,
5(2),297-322
47. Thornton, D., Gunningham, N., and Kagan, R. (2005). General deterrence and corporate
environmental behavior. Law & Policy. Retrieved fromhttp://escholarship.org/uc/item/4t7862s1
48. Tosun, J. (2012). Environmental Monitoring and Enforcement in Europe: A Review of
Empirical Research. Environmental Policy and Governance, 22(6), 437–448.
49. Tsoukas, H. and Chia, R. (2002.) On Organizational Becoming: Rethinking Organizational
Change, Organization Science, 13, 5, 567-582.
50. Uchida, T., and Ferraro, P. J. (2007). Voluntary development of environmental
management systems: motivations and regulatory implications. Journal of Regulatory
Economics, 32(1), 37–65.
51. Vaughan, D. (1990). Autonomy, interdependence, and social control: NASA and the space
shuttle Challenger. Administrative Science Quarterly, 225-257.
52. Vaughan, D. (1996). The Challenger launch decision: Risky t echnology, culture, and
deviance at NASA. University of Chicago Press.
53. Vaughan, D. (1998). Rational choice, situated action, and the social control of
organizations. Law and Society Review, 23-61.
54. Vazquez Brust, D. A., and Liston-Heyes, C. (2010). Environmental management intentions:
an empirical investigation of Argentina’s polluting firms. Journal of environmental
management, 91(5), 1111–1122.
55. Walls, J. L., and Hoffman, A. J. (2013). Exceptional boards : Environmental experience and
positive deviance from institutional norms. J. Organiz. Behav., 34: 253–271
56. Walls, J., Phan, P., and Berrone, P. (2011). Measuring environmental strategy: Construct
development, reliability, and validity. Business & Society.
57. Wassmer, U. and, and Paquin, R. (2012). The Engagement of Firms in Environmental
Collaborations. Business & Society, 05, 405.
58. Wu, J. (2009). Environmental compliance: The good, the bad, and the super green. Journal
of environmental management, 90(11), 3363–3381.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
58
Appendices
Appendix 1: Recruiting and Interview grids of Phase 2
Recruiting script:
Good morning/afternoon,
My name is__, from the firm Advanis, calling from Montreal.
We are undertaking a confidential research on behalf of Alberta’s Ministry of Environment and
Sustainable Resource (ESRD). Our company, Advanis, is a third party involved in this research to
ensure respondents of the confidentiality of their responses.
To advance the goals of achieving world-class environmental performance, Alberta Environment
and Sustainable Resource Development (ESRD) is working to understand how it can effectively
inspire environmental excellence. To do so, they are seeking to better appreciate the business
considerations that influence facility-level environmental performances and what factors enable
or constrain environmental performance decisions.
The intent for the project is to survey facility managers and/or environmental representatives of
industrial facilities across Alberta from all sectors. The final report will be made available to
participants.
Would you be available for a 20-minute interview with one of our researchers so that your
answers can help our firm advise Environment and Sustainable Resource Development on how to
adapt its policies in the near future?
Would you be available for an interview in the next few days?
Thank you.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
59
Interview grid:
Good morning/afternoon/evening,
My name is__, I am a researcher from the firm Advanis, calling from Montreal.
Thank you for your participation in this research interview; it is designed to last less than 20
minutes and will be recorded for qualitative analysis .
We are undertaking this confidential research in order to understand “What factors influence
environmental performances among industrial facilities in Alberta?” The aggregated results will be
communicated to Alberta’s Ministry of Environment and Sustainable Resource (ESRD), as it is
reviewing its policies and needs to identify areas for possible improvement.
Your responses will remain confidential. No other information will be shared with ESRD.
Anonymity of our respondents will be strictly respected, a nd all data obtained during interviews
will be destroyed after being analyzed, and not transmitted to anyone.
There are 4 types of factors relevant to industrial facilities and to the environment that we will
discuss today.
First, I would like to know how you would describe the …
POSSIBL E IMPACT TO THE ENVIRONMENT
How would you describe the facility’s operations, in terms of possible impact to the environment?
What are the activities most important to control at your facility, in environmental terms? Were
they the same 5 years ago?
Which processes do you use to anticipate situations that could impact the environment around
your facility? Were they the same 5 years ago?
CONCERN FOR THE ENVIRONMENT
To what extent are environmental issues a consideration in day-to-day business decisions at your
facility?
Is it the same for top management, middle management, and operations?
How differently are environmental issues perceived by different departments at your facility?
What comes to your mind when you think about the community around your facility?
How would you describe the perception of your facility by the local community? Has there been
any community reaction to the environmental impact of the facility in the past?
COMPETITIVE ENVIRONMENT OF THE FACIL ITY
Does competition in the industry impact the environmental practices at your facility? How?
Would you agree that economic factors explain all environmental performance decisions? What
else could motivate environmental performance at your facility? Would you agree that lack of
profit-making or return-on-investment from environmental investments has been a barrier to
improving your facility’s environmental performance?”
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
60
In terms of resources spent on the environment, have they increased, decreased or remained the
same in the past few years, at your facility? What was this a response to? (innovation, incident
management,…)
How supportive is upper management of environmental initiatives at your facility?
What are the technical difficulties encountered at your facili ty, in environmental terms?
Would you say following ESRD requirements and guidance is a constant challenge in your business
or that there are only a few operational situations that get out of control?
In your opinion, does meeting ESRD requirements and guidance require more actions of the
managerial level or the operational level?
In your experience at your facility, the management’s strategy is to comply with current
government environmental regulations or to voluntarily anticipate future environmental
regulations? Why?
GENERAL MATTERS
Where do you find information regarding environmental matters relevant to your operational
activities?
What best represents for you the level of environmental performance of your facility?
Are you aware of any ESRD monitoring and enforcement activities at other facilities in region?
How is your company management involved in environmental decision making at the facility level?
Who is championing environmental values at your facility?
What could your company do to be a better environmental performer?
Do you think there are core values shared by people at your facility?
How would you describe the work climate at your facility?
What are the three most important motivations and barriers to environmental management at
your facility, in your experience?
These were all the questions we wanted to ask you for this research. Is there anything you would
like to add before we say goodbye?
Thank you for your time, have a great day.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
61
Appendix 2: Questionnaire Phase 3
Intro
Hello,
This research is being undert aken with the goal of answering the question: “What factors infl uence
environmental performance among indust rial faciliti es in Alberta?” The aggregated results will be shared with
Alberta’s Ministry of Environment and Sustainabl e Resource Development (ESRD) for their use in informing
options to more effectively motivate environmental excellence.
Participation in this research is voluntary, and your responses will remain confidenti al. Your anonymity will
be strictly respected: Advanis will not share any identifying information outside of our research team, and all
identifying information will be destroyed aft er anal ysis.
Your parti cipation is important to ensure the quality of our findings. A final report will be made avail able to
all survey participants.
Your collaboration is greatly appreci ated.
Nicol as Tout ant,
Project Manager,
Advanis
Valid
In this questionnaire, we are asking questions about the facility located in
.
A facility includes buildings that are on a contiguous site and under common control by an organi zation.
Are you abl e to answer questions about environmental matt ers at this facility?
Valid_terminate
We' re sorry, but this study is addressed to those responsible for environment al matters at this particul ar
facility. Thank you for your time.
UNDERSTANDING ORGANIZATIONAL DECISION MAKING RELATED TO ENVIRONMENTAL PERFORMANCE
62
Q1
Does your organi zation operat e in more than one country?
Don't know
Q2
Where is your organi zation headquart ers locat ed?
Don't know
Q3
In what province is your organi zation headquart ers locat ed?
Edwards Island
Saskat chewan
Don't know
Q4
Is your organization headquarters located at your facility ()?
Don't know
63
Q5
How many facilities does your organi zation have in Alberta, includi ng yours?
(If you are not sure, please provide your best estimation.)
___________
Don't know
Q6
How many empl oyees work at your facility?
(If you are not sure, please provide your best estimation.)
___________
Don't know
Q7
How would you cl assify the average annual employee turnover at your facility?
Don't know
Q7a
Is this due to seasonal vari ations?
Don't know
Q8
How many years ago was the facility built?
(Please provide an answer in numbers of years. If you are unsure of the exact number, please provi de your
best estimation.)
___________years
Don't know
64
Q8a
Has your facility undergone any maj or techni cal upgrades since it was built?
Don't know
Q8b
In what year did your facility last undergo its most recent major technical upgrade?
___________
Don't know
Q9
Who holds the primary responsibility for investment decisions in envi ronment at your facility?
compliance, sustainability, etc.)
Don't know
Q9b
Who holds the primary responsibility for the implementation and monitoring of environmental improvements
at your facility?
President
Don't know
65
Q9a
When envi ronment al incidents occur at your facility, what groups are involved with the response and solution
development (consider the past 5 years )?
Yes No
a. Research and innovation
b. Marketing
c. Finance
d. Operations
e. Legal
f. Environment
g. Other (speci fy):
Q10
To what extent do you agree that the following factors have encouraged the adoption envi ronmental
improvements at your facility within the last 5 years ?
Q10a
Satisfying investor (owner) desi res to reduce environmental risks and liabilities
Does not apply
Don't know
Q10b
Protecting or enhancing the value of the facility or parent organization for invest ors (owners)
Strongly Agree
Does not apply
Don't know
66
Q10c
Satisfying lenders’ desires to reduce environment al risks and liabilities
mewhat Agree
Does not apply
Don't know
Q10d
Upper management's encouragement of facility parti cipation in voluntary envi ronment al programs
Neither Agree nor Disagree
Does not apply
Don't know
Q10e
Clear internal environment al polici es or standards that apply to all facilities within the organization
Agree nor Disagree
Does not apply
Don't know
Q10f
Upper management's beli ef in a moral responsibility for prot ecting the environment
Disagree
Does not apply
Don't know
67
Q10g
Upper management's support of envi ronment al improvements even if costs are substantial
Disagree
Does not apply
Don't know
Q10h
Upper management’s belief that improvements in envi ronment al performance can increase long -term profits
Strongly Disagree
Does not apply
Don't know
Q10i
Ensuring a good corporate image
Does not apply
Don't know
Q10j
Medi a coverage of an environmental incident invol ving your company or your facility
Does not apply
Don't know
68
Q10k
Keeping up with competitors’ envi ronmental improvements
Does not apply
Don't know
Q11_1
Please rank the top three most influenti al factors that have led to environment al improvements at your facility
within the last 5 years.
(Please sel ect the top 3 choi ces.)
__ Satisfying invest or (owner) desires to reduce environment al risks and liabilities
__ Protecting or enhancing the value of the facility or parent organi zation for investors (owners)
__ Satisfying lenders’ desi res to reduce envi ronmental risks and liabilities
__ Upper management's encouragement of facility participation in volunt ary environmental programs
__ Clear internal envi ronmental poli cies or standards that apply to all faciliti es
__ Upper management's belief in a moral responsibility for protecting the envi ronment
__ Upper management's support of environmental improvements even if costs are subst anti al
__ Upper management’s beli ef that improvements in environmental performance can increase long-term
profits
__ Ensuring a good corporat e image
__ Media coverage of an environment al incident involving your company or your facility
__ Keeping up with competitors’ environmental improvements
Don't know
69
Q11_2
Whi ch of these has been the most influential factor leading to environment al improvements at your facility
within the last 5 years?
(Please rank in order.)
__ Satisfying invest or (owner) desires to reduce environment al risks and liabilities
__ Protecting or enhancing the value of the facility or parent organi zation for investors (owners)
__ Satisfying lenders’ desi res to reduce envi ronmental risks and liabilities
__ Upper management's encouragement of facility participation in volunt ary environmental programs
__ Clear internal envi ronmental poli cies or standards that apply to all faciliti es
__ Upper management's belief in a moral responsibility for protecting the envi ronment
__ Upper management's support of environmental improvements even if costs are subst anti al
__ Upper management’s beli ef that improvements in environmental performance can increase long -term
profits
__ Ensuring a good corporat e image
__ Media coverage of an environment al incident involving your company or your facility
__ Keeping up with competitors’ environmental improvements
Don't know
Q11a
Can you think of other factors that have influenced the adoption of envi ronment al improvements at your
facility over the last 5 years?
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
Don't know
70
Q11b
Whi ch of these indust ry associations does your organi zation belong to?
(Please sel ect all that apply.)
Power Producers Soci ety of Albert a
Alberta Used Oil Management Associ ation
None of the above
Don't know
Q11c
Is your organization a member of any other industry associations?
Don't know
Q11d
Does your facility / organization belong to an industry associ ation that:
(Please sel ect all that apply.)
training
-government partners
None of the above
Don't know
71
Q12
To what extent do you agree that the following factors have influenced environmental improvements at
your facility in the last 5 years?
Q12a
Customers' desire for envi ronmentally friendly products and servi ces
Agree
Don't know
Q12b
Ability to earn public recognition or customer goodwill with environment ally fri endly actions
e nor Disagree
Don't know
Q12c
Pressure from environment al interest groups
Don't know
Q12d
Complying with current government environmental regul ations
Don't know
72
Q12e
Desi re to be better prepared to meet anticipated environmental regul ations
Don't know
Q12f
The local community's perception of the facility
Agree nor Disagree
Don't know
Q12g
Keeping up with competitor environment al improvements
Don't know
Q12h
Meeting industry st andards
Don't know
Q12i
Medi a coverage of an industry-relat ed environment al incident
Neither Agree nor Disagree
Don't know
73
Q13_1
Please rank the top three most influencial factors that have led to envi ronment al improvements at your facility
within the last 5 years.
(Please sel ect your top 3 choices.)
__ Customers' desire for environmentally friendly products and services
__ Ability to earn public recognition or customer goodwill with envi ronment ally fri endly actions
__ Pressure from envi ronment al interest groups
__ Complying with current government environment al regulations
__ Desire to be bett er prepared to meet anti cipat ed environment al regulations
__ The local community's perception of the facility
__ Keeping up with competitor improvements
__ Meeting indust ry standards
__ Media coverage of an indust ry-rel ated envi ronmental incident
Don't know
Q13_2
Whi ch of these has been the most influencial factor leading to envi ronment al improvements at your facility
within the last 5 years?
(Please rank in order.)
__ Customers' desire for environmentally friendly products and services
__ Ability to earn public recognition or customer goodwill with envi ronment ally fri endly actions
__ Pressure from envi ronment al interest groups
__ Complying with current government environment al regulations
__ Desire to be bett er prepared to meet anti cipat ed environment al regulations
__ The local community's perception of the facility
__ Keeping up with competitor improvements
__ Meeting indust ry standards
__ Media coverage of an indust ry-rel ated envi ronmental incident
Don't know
Q14
Over the last 12 months, did your facility make a volunt ary cont ribution of time, money or other resources to
the community nearest to your facility?
Other (speci fy):
No
74
Q15
How frequently is your facility inspect ed by an environmental agency?
Don't know
Q16
To what extend do you agree that there is good mutual understanding bet ween your facility and the regulat or?
Don't know
Q17
Please indicate whether you agree or disagree that the following factors are barriers to the adoption of
environmental improvements at your facility.
Q17a
High upfront investment expense
Somewhat Disagree
Don't know
Q17b
Cost of staff training
Don't know
75
Q17c
High day-to-day costs
Strongly Agree
Don't know
Q17d
Significant upfront time commitment to implement
Strongly Disagree
Don't know
Q17e
Uncert ain future benefit
Don't know
Q17f
Risk of downtime or delivery interruptions during implement ation
Don't know
Q17g
Complexity of int erpreting regulations
Strongly Disagree
Don't know
76
Q17h
Lack of return on investment
Don't know
Q17i
Not required by law
Somewhat Agree
Don't know
Q18_1
Please rank the top three most signifi cant barri ers to the adoption of environmental improvements at your
facility.
(Please sel ect your top 3 choices.)
__ High upfront investment expense
__ Cost of staff training
__ High day-to-day costs
__ Significant upfront time commitment to implement
__ Uncert ain future benefit
__ Risk of downtime or delivery interruptions duri ng implement ation
__ Complexity of interpreting regul ations
__ Lack of return on investment
__ Not requi red by law
Don't know
77
Q18_2
Whi ch of these factors you have indi cat ed is the most signifi cant barrier to the adoption of environment al
improvements at your facility?
(Please rank in order.)
__ High upfront investment expense
__ Cost of staff training
__ High day-to-day costs
__ Significant upfront time commitment to implement
__ Uncert ain future benefit
__ Risk of downtime or delivery interruptions duri ng implement ation
__ Complexity of interpreting regul ations
__ Lack of return on investment
__ Not requi red by law
Don't know
Q19
For your facility, please indi cat e whether or not the followi ng practi ces have been implement ed?
Yes No Don't know
a. Document ed environmental policy
b. Internal environmental audits at
regul ar int ervals
c. External environmental audits at
regul ar int ervals (by a third party)
d. Periodi c publishing of
environmental performance
information to the publi c
e. Environment al Certi fication (e.g.,
ISO 14001 certification)
f. Facility envi ronment al achievements
are published in annual reports
g. Environment al Management System
78
Q20
In the past 5 years, has the level of investment in environmental infrast ruct ure or improvements at your
facility…
Don't know
Q21
For your facility, please indi cat e the extent of your agreement or disagreement with the following stat ements:
Q21a
Environment al responsibility is emphasi zed through well -defined envi ronmental poli cies and procedures
Don't know
Q21b
Our environmental standards are more stringent than mandatory government al requirements
Don't know
Q21c
We conduct environment al audits for our own performance goals, not just for compli ance
Don't know
79
Q21d
We are well informed about the best practices in envi ronment
Strongly Agree
Don't know
Q22
For each of the following items, how would you describe the envi ronmental performance at your facility in
the past 5 years.
Improved Slightly
improved
Remained
the same
Slightly
deteriorat ed
Det eriorat ed Does not
apply to
your
facility
Do not
know
a. Wat er quality
b. Wat er use
c. Air emissions
d. Land management and
reclamation
e. Wildlife and biodiversity
f. Noise pollution
g. Odour pollution
h. Wast e management
80
Q23
For your facility, please indi cat e the level of compli ance with regul atory st andards for the following item(s)
…
Working
towards
meeting
regul ations
Meeting
regul atory
standards
Doing more
than
regul ation
requi res
Not
regul at ed at
our facility
Don't know
a. Wat er quality
b. Wat er use
c. Air emissions
d. Land management and recl amation
e. Wildlife and biodi versity
f. Noise pollution
g. Odour pollution
h. Wast e management
81
Q23a
In the following domain(s), would you say you exceed the regulat ory standards or requirements by a slight or
a large margin?
By a slight
margin
By a large
margin
Don't know
a. Wat er quality
b. Wat er use
c. Air emissions
d. Land management and recl amation
e. Wildlife and biodi versity
f. Noise pollution
g. Odour pollution
h. Wast e management
82
Q23b
On what basis would you say you are abl e to achieve the mentioned results?
On a
regul ar
basis
On a
frequent
basis
On an
occasional
basis
Don't know
a. Wat er quality
b. Wat er use
c. Air emissions
d. Land management and recl amation
e. Wildlife and biodi versity
f. Noise pollution
g. Odour pollution
h. Wast e management
83
Q24
Please rank the overall top three most influential factors for envi ronment al improvement.
(Please sel ect the top 3 choi ces.)
__ Satisfying invest or (owner) desires to reduce environment al risks and liabilities
__ Protecting or enhancing the value of the facility or parent organi zation for investors (owners)
__ Satisfying lenders’ desi res to reduce envi ronmental risks and liabilities
__ Upper management's encouragement of facility participation in volunt ary environmental programs
__ Clear internal envi ronmental poli cies or standards that apply to all faciliti es
__ Upper management's belief in a moral responsibility for protecting the envi ronment
__ Upper management's support of environmental improvements even if costs are subst anti al
__ Upper management’s beli ef that improvements in environmental performance can increase long -term
profits
__ Ensuring a good corporat e image
__ Media coverage of an environment al incident involving your company or your facility
__ Keeping up with competitors’ environmental improvements
__ Customers' desire for environmentally friendly products and services
__ Ability to earn public recognition or customer goodwill with envi ronment ally fri endly actions
__ Pressure from envi ronment al interest groups
__ Complying with current government environment al regulations
__ Desire to be bett er prepared to meet anti cipat ed environment al regulations
__ The local community's perception of the facility
__ Keeping up with competitor improvements
__ Meeting indust ry standards
__ Media coverage of an indust ry-rel ated envi ronmental incident
__ High upfront investment expense
__ Cost of staff training
__ High day-to-day costs
__ Significant upfront time commitment to implement
__ Uncert ain future benefit
__ Risk of downtime or delivery interruptions duri ng implement ation
__ Complexity of interpreting regul ations
__ Lack of return on investment
__ Not requi red by law
Don't know
84
Q24_2
What is the overall most influential fact or for envi ronment al improvement?
(Please rank in order.)
__ Satisfying invest or (owner) desires to reduce environment al risks and liabilities
__ Protecting or enhancing the value of the facility or parent organi zation for investors (owners)
__ Satisfying lenders’ desi res to reduce envi ronmental risks and liabilities
__ Upper management's encouragement of facility participation in volunt ary environmental programs
__ Clear internal envi ronmental poli cies or standards that apply to all faciliti es
__ Upper management's belief in a moral responsibility for protecting the envi ronment
__ Upper management's support of environmental improvements even if costs are subst anti al
__ Upper management’s beli ef that improvements in environmental performance can increase long -term
profits
__ Ensuring a good corporat e image
__ Media coverage of an environment al incident involving your company or your facility
__ Keeping up with competitors’ environmental improvements
__ Customers' desire for environmentally friendly products and services
__ Ability to earn public recognition or customer goodwill with envi ronment ally fri endly actions
__ Pressure from envi ronment al interest groups
__ Complying with current government environment al regulations
__ Desire to be bett er prepared to meet anti cipat ed environment al regulations
__ The local community's perception of the facility
__ Keeping up with competitor improvements
__ Meeting indust ry standards
__ Media coverage of an indust ry-rel ated envi ronmental incident
__ High upfront investment expense
__ Cost of staff training
__ High day-to-day costs
__ Significant upfront time commitment to implement
__ Uncert ain future benefit
__ Risk of downtime or delivery interruptions duri ng implement ation
__ Complexity of interpreting regul ations
__ Lack of return on investment
__ Not requi red by law
Don't know
85
Q26
Finally, we would like to know if your organi zation is publi cly traded, privately owned or is
governmental/municipal?
Publicly traded
Don't know
Q27
What is your organi zation's average yearly revenue?
illion a year
Don't know
end
Thank you very much for compl eting the survey!
Status Code: -1
86
Appendix 3: Interview grids of Phase 4
The i ntervi ew gri ds (A, B, C) proposed here evolved after the f irst intervi ews in order for subsequent data
col lecti on (interview grid 2) to shed light on emergi ng themes.
Grid A
Our i nitial results show that for more than 90% of managers i nvolved in decision making at faci li ties, one of
the most important drivers of improved perf ormance is regulati on
17
.
1. So the questi on we woul d l ike to ask you is: why do regulations work?
2. Can y ou think of other reasons?
3. How do you balance the regulatory changes and the costs involved for other envi ronmental
improvements?
4. In your opinion, i n the l ong term, how coul d ESRD better encourage formal practices of envi ronmental
reporti ng at facil iti es i n Alberta?
Grid B
Our i nitial results show that external factors play a role for envi ronmental improvements at faci lities. So we
would like to ask...
1. Whi ch external factors have i nfl uenced env ironmental decisi on making at y our facil ity?
2. How do they relate to your organizati on’s corporate image?
3. How woul d you describe the implementati on of envi ronmental improvements (ISO certifi cati on, if
appl icable) at y our facil ity?
4. In your opinion, how can ES RD better encourage an organizational dynami cs of envi ronmental
improvement at your faci li ty?
Grid C
Our i ni tial results show that one of the factors that play a role for envi ronmental improvements at faci lities
is that managers believe envi ronment performance can i ncrease prof it in the long term.
1. In your experi ence, what can lead them to bel ieve envi ronment performance can i ncrease profi t in the
long term?
2. And how do thei r environmental val ues come into play in a competitive env ironment?
3. In your opinion, how could ESRD further i ts goal to achi eve worl d-class envi ronmental perf ormance and
to motivate envi ronmental excellence i n Al berta?
17
They say exactly that in the last 5 years, compl ying with government regulations has influenced environmental
improvements at thei r facility.
87
Interview grid 2
Regulati on was identif ied as a very i mportant factor for envi ronmental perf ormance.
1. How does it play a rol e in improving environmental performance? (In other words, "why do
regulati ons work?")
2. How would y ou describe the ef fects of i nspections at faci lities?
Other factors appeared to be important for envi ronmental perf ormance.
3. Would y ou say that staff awareness of environmental issues at facil ities also has an impact? Why?
4. Would you say that people’s awareness of envi ronmental i ssues i n the i ndustry also has an impact?
Why?
5. When you thi nk of current initiatives for envi ronmental i mprovement at your faci li ty, would you say
they are wel l supported by the Government of Al berta? Why?
6. What are the current chall enges for the regulators, i n your opi nion?
7. In your opi ni on, how could they be better addressed?
88
Appendix 4: Questionnaire Phase 5
Intro
Hello
I am happy to share with you the most influential factors of environmental performance that were identi fied
through our research to dat e.
Our survey findings indi cat e that these are: regul ation and corporat e values.
We also identi fi ed a few challenges for the regul ator.
Follow-up int ervi ews provided some insights on why these el ements influence environment al excell ence, and
we would like your feedback to validate these.
Answering this should not take more than 3 minutes.
I would like to thank you personally for your parti cipation in the process; this research would not have been
possible without your support.
Regards,
Nicol as Toutant,
Project Manager,
Advanis
ntoutant @advanis.net
89
Q1
Regulation was identi fi ed as a very import ant factor that influences environment al performance. Please tell us
the ext ent to which you agree, somewhat agree, somewhat disagree, or disagree with the followi ng statements
that come from the survey results and interviews.
Disagree Somewhat
disagree
Somewhat
agree
Agree Do not
know
h. Regulation plays a role in cl ari fying
the levels of expectations for
environmental performance
?
1
?
2
?
3
?
4
?
5
i. Regulation plays a role in equali zing
the levels of environment al
performance among competitors (A
level pl aying fi eld exists for all
facilities)
?
1
?
2
?
3
?
4
?
5
j. Regulation helps environmental
managers at the facility advocat e for
improvement to upper management.
?
1
?
2
?
3
?
4
?
5
k. Inspections are import ant because
they help our empl oyees and
management focus on environmental
issues.
?
1
?
2
?
3
?
4
?
5
l. Regulation is the single most
important driver of environmental
progress in our industry.
?
1
?
2
?
3
?
4
?
5
m. Regulation by prescribing a level of
environmental performance does not
encourage envi ronment al innovation
?
1
?
2
?
3
?
4
?
5
Q2
Our results show that corporat e image and social values are import ant factors influenci ng envi ronment al
performance. Please t ell us the extent to which you agree, somewhat agree, somewhat disagree, or disagree
with the following stat ements that come from the survey results and interviews.
Disagree Somewhat
disagree
Somewhat
agree
Agree Do not
know
h. Our management would be open to
advi ce from government offi cials
that could help improve our
environmental performance.
?
1
?
2
?
3
?
4
?
5
i. An import ant barri er to
environmental performance comes
from the di ffi culty of changing
working habits and mindsets.
?
1
?
2
?
3
?
4
?
5
j. The fact that the staff is advocating
for environment al improvement has
led to environmental progress in our
organization.
?
1
?
2
?
3
?
4
?
5
k. A formal recognition of our efforts
to go beyond compliance woul d
motivate our empl oyees and
management to do more.
?
1
?
2
?
3
?
4
?
5
90
Q3
The results also show there were chall enges to be addressed by the regulat or. Please tell us the ext ent to which you
agree, somewhat agree, somewhat disagree, or disagree with the following st atements that come from the survey
results and interviews.
Disagree Somewhat
disagree
Somewhat
agree
Agree Do not
know
i. Current regulations are cl ear (the
requi rements are easy to understand)
?
1
?
2
?
3
?
4
?
5
j. Current regulations are equally
enforced across facilities in the same
sector
?
1
?
2
?
3
?
4
?
5
k. Current regulat ory levels are
suffi cient to control our facility’s
impact on the envi ronment (impact
rel ates to both the resource use and
emissions (i.e. conservation,
effi ci ency and environmental
quality))
?
1
?
2
?
3
?
4
?
5
l. Current regulat ory syst em
encourages beyond compliance
performance
?
1
?
2
?
3
?
4
?
5
Q3a
Do you have any comments or elements you would like to add?
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
?
-9
No
?
-8
Do not know
Q4
Thank you for taking the time to consider the preliminary results.
Please note that you are invited to share your thoughts on envi ronment al challenges by leaving a message at 1-514-
375-2423.
We are genuinely int erested in your opinion and we will receive your comments anonymously.
Status Code: -1
doc_995818995.pdf