Introduction
The environment of operation is one of the most significant factors that companies focus on when they are seeking to be established in a given area. The environment may be either in the form of external or internal factors. External factors are the ones that are outside the business, and it may be hard to control while internal factors are the factors within the company and may be regulated by the company. The environment may influence business in different ways following consideration of various elements in the environment that may have extensive, impact on the operations of the company. The environment performance of a company may be measured through environmental indicators, metrics, as well as achievement of environmental performance targets. However, there are specific techniques used in carrying out environment performance measurement. To affirm the results for the measurements carried out, extensive analysis is needed.
Environmental performance variables
These may be defined as elements or principles that control the environmental performance of the company. They are usually set in from of laws that must be followed fully and the company to corporate with them, business failure is intrigued. These principles are not set by companies. They are usually generated by the different bodies, which are concerned with the wellbeing of the people surrounded by the company. Below is a list of environment performance variables that companies must comply with to suit their success in a given location.
This refers to the number of legal or government proceedings connected to environmental matters that the company disclosed during its registration. During the registration of a company, there are concrete requirements of providing critical information on the activities that a company would wish to engage in for the period it will exist. The company must be ready to comply with all the proceedings stipulated by the legal firm. It is well stated that the company must comply, or extensive penalty measures are extended to individuals (Hervani et al, 2003).
Superfund sites
There are a number of National Priority List hazardous waste cleanup sites at which a company, as well as its subsidiaries are named Potentially Responsible Party (PRP). This means there are guidelines governing cleanliness of a given environment through recognition of the stipulated hazardous waste (Bendoly, Donohue, and Schultz, 2006). All companies are required to corporate with the sites, which have been developed after extensive research on the most prevalent hazards of an uncontrolled environment.
These are a number of federal noncompliance penalties assessed against the company, or its subsidiaries under major federal environmental statutes. They usually include criminal, civil and administrative penalties. This act as guidelines to ensure that people remain respectful to the rules set on observing certain environmental conditions.
Dollar value of noncompliance penalties
Different penalties are attached different penalties as assessed on the basis of the operations of the company or its subsidiaries. Failure to comply with a given provision will lead to a penalty (Hervani et al, 2003). Once charged with failure to comply, a fine must be paid instantly or license of operations is provoked.
Volume of toxic chemical releases
Companies are known of being hazardous to the environment through emission of harmful gases to the atmosphere. Following the continuous increase in the rate of emission of toxic products into the environment measures have been instilled to protect the members of the society from harm by the emissions (Hervani et al, 2003).
Volume of chemical spills
Although, accidents may be inevitable sometimes continuous occurrence characterized with chemical spills would lead to a massive fine. If a company is continuously involved in accidents that may lead to chemical spills, there is a guarantee that the management will be in for a risk, and they will have to pay for the anticipated fine.
Environmental metrics
The metric is defined as a quantitative measure, or derivation from two or more measures, which may unnecessarily indicate something fundamental to certain observers. Environmental metrics may be defined as factors that define the behavior of companies towards an environment. These are practices of the organization with direct impact on the environment within which the business operates. Exclusive analysis on various environmental factors towards the performance of a business is usually critical. This helps in allowing people access full knowledge about certain factors and their effect to the environment. The results of the analysis are fundamental in helping define action or decision for various people or stakeholders (Tokar, 2010). In short, metrics is form of analyses that help in defining the environmental performance of a given organization.
Different arguments have been brought up on the issue of environmental metrics. The arguments are based on the uniqueness of various factors that influence environmental performance of an organization. There are various proposals on what metrics should consist for them to be viewed as viable in making concrete decisions or conclusions in an organization.
Metrics is usually concerned with the influence of business to the livelihood of the people around the company. This means that people around a given business should be in a position to enjoy extensive benefits from the activities of the company in the area. There should be a direct connection between the environment and the business activities of a given company. At no point should the management of a given company ignore the impact of the business to the people surrounded by the business (Li, and Sallie, 1993).
Metrics for an organization should be factors that mind the wellbeing of the customers to the organization. This means that there must be a direct influence of an organization to the lives of its customers. It is upon the management to evaluate the elements that may make the company relevant to its customers. This indicates that customers should be treated accordingly with their benefits being the main targets for the company. At no point should the public be left in an environmental struggle as the company fetches extensive profit (Tokar, 2010).
Also, metrics may be defined as the elements of competition stipulated for an organization. These are indicators of the performance of the business in relation to the competitors in the industry. An organization should be out to defend its operations with an aim to ensure satisfaction of its clients. Metrics are measured at a point where the organization tries to defend its operations in a bid to control a given section of the market (Sarus, 2008). At no point should an organization extend hazardous factors to its competitors.
Moreover, metrics should be a process of assisting the management to set proper targets for the organization. This means there is the need for exclusive consideration of factors that would easily make the company achieve its goals. Excellent performance of a company starts with the ability of the company to sustain the environment within which it operates. In the target of every company, environment concern is critical. This is the consideration of the merits that are likely to result from sustenance of the environment. In the process of formulating the performance track of an organization, the environmental aims of the organization are extremely significant. It defines the relationship of the company with the outside world (Sarus, 2008).
Setting environmental performance targets
Environmental objectives may be defined as aims that the business sets to enhance environmental performance following its environmental management system (EMS). They are usually indications of the aims of the business concerning a particular issue such as reducing waste going to the atmosphere by a given percentage within a given period. Setting environmental targets for a company considers various factors (Forslund et al, 2009).These targets provide short term goals that would assist in achieving the overall objectives of the organization.
The environment policy of the company is usually the first element to be considered while designing environmental targets. This is a guideline on what environmental wishes that an organization wishes to achieve. It must contain the elements that must be satisfied before executing excellent strategies to match performance, in a given environment. The policy must contain the cost involved in preparation, to achieve certain goals (Forslund et al, 2009).
The second element that may be equally fundamental is the information acquired from the initial review of the company. This information would be significant in allowing the management understands various policies and how they work. Understanding these policies equips the organization with ample skills on how to come up with adequate stipulations of targets.
The third element that may be critically fundamental in defining the environmental targets of the organization is the company’s register of legislation. These are sets of laws that have been put together with the aim of controlling the activities of a given company in regard to its influence to the environment. These are usually rules designed for the effect of ensuring that environmental performance is well thought of and at no point will any organization ignore its influence. Organizations will use these rules as guidelines for development of a reliable set of environmental targets (Forslund et al, 2009).
When coming up with the objectives of the company, it is significant to identify the department or individuals responsible of making sure they are achieved. Also, there must be an individual to oversee the implementation of changes as well as check that targets have been met. Targets should be set in such a way that they do not create any significant environmental aspect.
All organizations are advised to devise SMART targets. This means that all targets should Specific, Measurable, Achievable, Realistic and Time-bound. Specific means that each target should only have one issue to address. Measurable means that targets should be quantitatively expressed and in absolute terms. Achievable means that targets should be possible to meet for all involved individuals. Realistic means that targets should be characterized by some challenges and not overly ambitious since they can always be revised when they are achieved. Lastly, time-bound means that targets must be defined by a deadline within which they should have been achieved (Forslund et al, 2009).The three terms should bear equal weight while defining strategies of an organization that may be used in ensuring that the environment remains clean and friendly to humankind.
Carrying out environmental performance measurement
Environment performance measurement is a process defined by existence of a research process to ensure that various environmental elements are understood and used accordingly. Since it is a process, it requires extensive procedures to implement and achieve the target of carrying out the process. The procedures may be in a form of data collection techniques, reports, and performance feedback (Boudreau et al, 2006).
Data collection
This refers to use of various tools to gather information about environmental performance of the company. It is a major requirement since it governs flow of information about a given issue concerned with the environment performance of an organization. There are various techniques that may be used in ensuring excellent environment performance measurement.
The first method is through survey. This is a technique that will involve direct conversation with the customers of a company or people surrounding the business. They will be expected to answer the interviewer on certain questions regarding the relationship of the organization and its customers, as well as the members of the society in its proximity. Also, an interview may be conducted on the management of the organization. These are people who have been in the company for a long time, and they understand the plans of the organization towards sustainability of the environment around the business (Bendoly, Donohue, and Schultz, 2006).
An internal audit may be done by an individual from the company with the aim of making the public understand the environmental performance of the company. Also, external auditor may be hired to approve the work of the internal auditor. This usually happens through execution of reports on the measurement of environmental performance of an organization. The reports are extremely fundamental and should be written in a formal manner. They should be used to let the public or stakeholders give feedback about the report given. The feedback is important as it acts as a point of reference for the organization in defining its environmental performance targets (Boudreau et al, 2006).
Analysis for environmental performance measurement
One of the most critical forms of analyses that are conducted is effectiveness of environmental measurements analysis. This refers to the process where external auditors who are usually governmental agencies with the help of experts in a given field come up with a plan to closely check the previous environmental performance of an organization. The analysis involves taking into account the previous targets of an organization, targeted procedures to achieve a given output and the resultant environmental performance. An audit is defined on what has already been done and what might have been done to make the company achieve better environmental performance (Boudreau et al, 2006).
As a form of analysis, the performance of an organization which, is measured per year is compared to the previous performance of the company as well as that of other companies. This gives proper platform to analyze the effectiveness of the strategies that the company undertook to control its environmental performance (Tokar, 2010). It also, compares the final performance to the targets, where the correlation is defined to state the position of the organization in the site for excellent environmental performance.
Conclusion
Environmental performance measurement is an extremely fundamental element for influencing the view of the public on an organization. It is influenced by various factors such as environmental performance variables, which are critical in defining what is expected of an organization during its operations. Environmental metrics are also useful in defining environmental performance measurement and plays critical role in making an organization sensible to the environment within which it operates. However, excellence of the company in a bid to achieve excellent environmental performance highly depends on its targets. However, proper research is needed to embark on the best environmental performance targets. The performance has to be presented in a reliable manner to allow its analysis for significant influence on its use in defining the next move for an organization in defining environmental performance measurement.
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