1/23/2013
Environmental Compliance_International: Captialism, Energy, and Sustainability
Environmental Compliance_International: Captialism, Energy, and Sustainability: It is not a new concept to make money from sustainable projects. Long term project returns and properly planned and managed projects can re...
Environmental Compliance_International: Use of Foreign Workers
For some reason this blog seems to be getting hijacked. Not sure if it is technical or intentional. I will assume the later, because who really would do such a thing?
In this blog we discuss the ethical issues related to the use of foreign workers in order to avoid environmental compliance, but actually it applies to all compliance.
In the USA there are companies that are USA owned and generally managed, but are operated with foreign labor. This labor is obtain from contracting through a foreign staff firm. The advantages this provides to the company is that all normal Environmental, Safety, and Health reporting is circumvented. And this contracted labor is not protected by whistle blowing laws.
For example one temporary power company I worked for utilizes foreign labor for its oversea operations. This staff, including most of the management are trained overseas. They do not adhere to OSHA or EPA standards, because they don't have to in their country of origin. Because any injury or death is not a reportable incident for the power company, there is no real concern about EHS. The company's senior leadership reports to its Board of Directors that there are no EHS incidents. 2 people have been killed, and several injured during operations, and yet the company's history is clean. Looks good to the wine totting investors.
These foreign workers have no concern regarding environmental impacts of their operation. Why, because they weren't train to care in their home country.
One would think the company with a Corporate Image, and a Board of Directors who speak of environmental conscious, would be conscious of how they operate. But they don't, because operationally they have no clue.
But this is just one example. Because it is more normal than not. Safety workers in the oil & gas industry overseas are office workers. They are expected to stay in the office and file their reports. No walking around.
Sometimes no EHS positions are even included in the facility staff. The plant manager will assume the role, which of course serves nobody. The plant managers normally get salary plus bonus which means that any injuries or environmental issues could impact their bonus.
The foreign labor are well skilled. They typically demand far less $ than their USA expat brothers/sisters. They will not complain in fear of being sent back to their country where they will be unemployed for the remaining part of their life (loose lips sink ships). So the company's bottom line is significantly improved, and there are no human resource issues to address. And less likely hood of any environmental consequences; I see no evil, I hear no evil, I speak no evil.
So think of this as the Business Model of the Future. Even for operations in the USA. Why hire people who have rights and know their rights, when you can hire a similarly skilled person who doesn't want insurance or other benefits, and is scared to say anything?
Funny thing, this business model is not the sole property of USA operations. Most countries utilize it in some manner or form. This is the loop hole in compliance with any regulation. Think about it.
Now is it ethical? Nope, not in the least bit. Especially when the company claims no deaths or injuries related to its operation.
But as long as the owners can drive their expensive sports cars, their kids can do was they want, and the Board is happy, who cares?
In this blog we discuss the ethical issues related to the use of foreign workers in order to avoid environmental compliance, but actually it applies to all compliance.
In the USA there are companies that are USA owned and generally managed, but are operated with foreign labor. This labor is obtain from contracting through a foreign staff firm. The advantages this provides to the company is that all normal Environmental, Safety, and Health reporting is circumvented. And this contracted labor is not protected by whistle blowing laws.
For example one temporary power company I worked for utilizes foreign labor for its oversea operations. This staff, including most of the management are trained overseas. They do not adhere to OSHA or EPA standards, because they don't have to in their country of origin. Because any injury or death is not a reportable incident for the power company, there is no real concern about EHS. The company's senior leadership reports to its Board of Directors that there are no EHS incidents. 2 people have been killed, and several injured during operations, and yet the company's history is clean. Looks good to the wine totting investors.
These foreign workers have no concern regarding environmental impacts of their operation. Why, because they weren't train to care in their home country.
One would think the company with a Corporate Image, and a Board of Directors who speak of environmental conscious, would be conscious of how they operate. But they don't, because operationally they have no clue.
But this is just one example. Because it is more normal than not. Safety workers in the oil & gas industry overseas are office workers. They are expected to stay in the office and file their reports. No walking around.
Sometimes no EHS positions are even included in the facility staff. The plant manager will assume the role, which of course serves nobody. The plant managers normally get salary plus bonus which means that any injuries or environmental issues could impact their bonus.
The foreign labor are well skilled. They typically demand far less $ than their USA expat brothers/sisters. They will not complain in fear of being sent back to their country where they will be unemployed for the remaining part of their life (loose lips sink ships). So the company's bottom line is significantly improved, and there are no human resource issues to address. And less likely hood of any environmental consequences; I see no evil, I hear no evil, I speak no evil.
So think of this as the Business Model of the Future. Even for operations in the USA. Why hire people who have rights and know their rights, when you can hire a similarly skilled person who doesn't want insurance or other benefits, and is scared to say anything?
Funny thing, this business model is not the sole property of USA operations. Most countries utilize it in some manner or form. This is the loop hole in compliance with any regulation. Think about it.
Now is it ethical? Nope, not in the least bit. Especially when the company claims no deaths or injuries related to its operation.
But as long as the owners can drive their expensive sports cars, their kids can do was they want, and the Board is happy, who cares?
Environmental Compliance_International: Strange Happenings in the Horn of Africa
Environmental Compliance_International: Strange Happenings in the Horn of Africa: 26 August 2012--currently I am working on a electric energy project in the Republic of Djibouti. This project sort of just happened. That ...
Environmental Compliance_International: Environmental and Profits can be written in the sa...
Environmental Compliance_International: Environmental and Profits can be written in the sa...: Jaime Lopez To remain competitive in the world market the USA manufacturing sector must deal with its environmental responsibilities....
Environmental and Profits can be written in the same Sentence
To remain competitive in the world market the USA manufacturing sector must deal with its environmental responsibilities. So how to merge business with environmental requires the following three drivers:
1) Doing the Right Thing
2) Profitability
3) Regulations
These three drivers apply to the domestic as well as international business sectors. There has been a lot written, and discussed on ISO 14001, and its sister Health and Safety OHSAS 18001, being able to bridge the gap and link these three facets. For the common CEO, or even COO, dealing with the here and now of how to generate a profit this week, versus the long term increased profits that can be generated by making modifications to business practices based on the ISO 14001 do not seem practical. In fact they seem more like left wing (progressive) enviro wacko bable, than real business solutions. Believe me I was a big non-believer when I was first introduced to ISO 14001 by one of my professors from the University of Findlay. I argued heavily against it during many classes, it is a wonder I passed the class.
Let me stop here a moment and step back to give some background on myself. I spent several years as a state regulator from field investor to the enforcement guy that closed down the first gasoline station in Texas for failure to properly upgrade the gasoline tanks. During this time I learned a little bit about regulations, the application, and those who enforce them. Following 8 years of doing that I moved into the private sector as a private consultant for 14 years that included both the domestic and international worlds. So I’ve seen several sides of the fence.
Generally speaking domestic regulations are not as ‘bad’ as most business want everyone to believe. Egad that definitely marks me as a wacko. Please don’t turn me off yet, give me a chance. The regulations are not that bad when one looks at the intent. The intent of environmental regulations is to protect human health and the environment—both. If the environment is polluted we who live in that environment are harmed. Doesn’t matter if it is some out of sight groundwater, or a plot of land in the center of the city.
Now what has gotten out of control are the people who enforce those regulations, as
their intent has taken good regulations and twisted them to be something that does
no good for anyone thus making them ‘bad’.
So instead of trying to change the regulations, it is better to change the ‘culture’ of the people who enforce. I can not say for certain, but it seems that most of the ‘bad’ enforcement people I have come across whether it was EPA or state level have come from a purely educational background with no experience in the real world, and on the flip side the good ones have had that experience. Who knows if I am right, but it sure does seem that way to me.
Now back on topic.
The first two drivers are actually all connected to the business operations, its profitability, and amazingly as it may seem have nothing to do with regulations! What in the world am I talking about now? Well, once a business sets itself up to be profitable using the best processes, capitalizes on the profits associated with elimination of wastes in those processes, and establishes a market for the remaining wastes, the issue regarding regulations quiet naturally goes away---poof like magic.
I have spoken to CEO/COOs who have said that this sounds all well and good, but doing this takes time and their businesses needed to increase profits today. And the Chinese do not have to worry about their environment, so this makes for an uneven playing field.
True, the Chinese are destroying their environment. They are also killing their people in mining and manufacturing, and in the contaminated foods they are feeding their people. So does that mean that our businesses should be allowed to do the same? The Chinese issue is another problem all on its own, that we each must consider the next time we shop; consider the implications from our economy to the Chinese military we are building every time we buy something made in China.
So instead of trying to change the regulations, it is better to change the ‘culture’ of the people who enforce. I can not say for certain, but it seems that most of the ‘bad’ enforcement people I have come across whether it was EPA or state level have come from a purely educational background with no experience in the real world, and on the flip side the good ones have had that experience. Who knows if I am right, but it sure does seem that way to me.
Now back on topic.
The first two drivers are actually all connected to the business operations, its profitability, and amazingly as it may seem have nothing to do with regulations! What in the world am I talking about now? Well, once a business sets itself up to be profitable using the best processes, capitalizes on the profits associated with elimination of wastes in those processes, and establishes a market for the remaining wastes, the issue regarding regulations quiet naturally goes away---poof like magic.
I have spoken to CEO/COOs who have said that this sounds all well and good, but doing this takes time and their businesses needed to increase profits today. And the Chinese do not have to worry about their environment, so this makes for an uneven playing field.
True, the Chinese are destroying their environment. They are also killing their people in mining and manufacturing, and in the contaminated foods they are feeding their people. So does that mean that our businesses should be allowed to do the same? The Chinese issue is another problem all on its own, that we each must consider the next time we shop; consider the implications from our economy to the Chinese military we are building every time we buy something made in China.
China will burn itself out given enough time, already Peking is a place most anyone
with lung issues would best avoid; don’t drink the water.
We can make our business more competitive simply by investing in ourselves with
modern equipment, establishing processes that are not wasteful, and focus on the
various avenues to generate a profit. All of which in fact require a good well
rounded environmental person (or even a health/safety) person who not only
knows their job, but also understands business.
What the heck does Doing the Right Thing mean? It means that by evaluating the current business methods with the focus on how to do them better with less inputs while maintaining quality and reducing waste will result in a process that meets the definition of Doing the Right Thing.
In the USA we have been fortunate to have had access to abundant natural resources along with the governance to establish us at one time as a manufacturing leaders. Germany has had little resources during this same time, but has remained a manufacturing leader. Why? They do more with less, and do it right. So it can be done.
What the heck does Doing the Right Thing mean? It means that by evaluating the current business methods with the focus on how to do them better with less inputs while maintaining quality and reducing waste will result in a process that meets the definition of Doing the Right Thing.
In the USA we have been fortunate to have had access to abundant natural resources along with the governance to establish us at one time as a manufacturing leaders. Germany has had little resources during this same time, but has remained a manufacturing leader. Why? They do more with less, and do it right. So it can be done.
My advice to the business world, and to environmental professionals is:
-
1) Work together
-
2) Don’t focus on the avoidance of regulations
-
3) Invest in new machinery
-
4) Invest in establishing processes that eliminate waste
-
5) Identify ways to increase profits through these processes
11/01/2012
Short Sigted in Botswana
Africa represents a wealth of opportunity in all commercial sectors which is highly untapped. The problem when 'westerns' arrive to take advantage of these open fields of gold is that they forget that there have been many who have come before them. The people of this land have learned very well over the years that when someone with a tie and fancy watch appear saying how they can make their life better it ususally means a con-artist; what else can a slick commercial person be called?
Environmental is one of those fields which is in its infancy here, with room to grow. The people are both aware and unaware at the same time. Botswana is a good example of a country that is waking up to its responsibity of proper stewardship of the environment of their country.
Working with the national government in the area of energy planning I have found that there are many who understand the need to balance both the production of energy and protection of their environment. The use of 'temporary' diesel generators is a norm in most all countries throughout Africa. The companies that provide them tend to be short-sighted and are like the slick salesman mentioned above only thinking about how they can take advantage of the 'ignorant' people of developing countries.
Through my work to educate the 'decision makers' on the pros and cons of the various energy options I hope to show how they themselves can address their energy needs while maintaining a clean environment. They are the ones responsible for their house, and not let the commercial teams who only care for today destroy their home.
Our work will take us to Ghana in the next month, where I hope to have as productive a time as I have had here.
Environmental is one of those fields which is in its infancy here, with room to grow. The people are both aware and unaware at the same time. Botswana is a good example of a country that is waking up to its responsibity of proper stewardship of the environment of their country.
Working with the national government in the area of energy planning I have found that there are many who understand the need to balance both the production of energy and protection of their environment. The use of 'temporary' diesel generators is a norm in most all countries throughout Africa. The companies that provide them tend to be short-sighted and are like the slick salesman mentioned above only thinking about how they can take advantage of the 'ignorant' people of developing countries.
Through my work to educate the 'decision makers' on the pros and cons of the various energy options I hope to show how they themselves can address their energy needs while maintaining a clean environment. They are the ones responsible for their house, and not let the commercial teams who only care for today destroy their home.
Our work will take us to Ghana in the next month, where I hope to have as productive a time as I have had here.
8/26/2012
Strange Happenings in the Horn of Africa
26 August 2012--currently I am working on a electric energy project in the Republic of Djibouti. This project sort of just happened. That is not a really accurate statement, because something like this just doesn't just happen by accident. It actually started in 2009 when I spent a year and a half in Djibouti where I spent most of my time learning all about the US military base's operations (utility, and environmental), as well as the various aspects of the country. Through the connecting of the dots, networking with a wide variety of people including one who would be a high level government official I am now back in Djibouti.
That isn't the strangest part of this story, and not what I am writing about here. Since working on this project I have been approached by two international companies about potential projects in this country and in Somaliland. Somaliland is a un-recognized break away province that has very little resemblance to the Somalia that makes the news on a daily basis. Never mind that, these companies have asked me to partner with them on "Camel Milk" production, and now on Jojoba.
Side Note: The international companies that are speaking with me are located in Israel. As Jewish corporations they would not be openly accepted by a Muslim country especially one that is part of the Arab League; not good public politics. But under the covers these 'anti-Jewish' governments welcome Israel companies. How do do it? Well the Israeli folks are a practical lot, they simply form secondary and third level corporations that eventually are located out of the USA or Europe. These subsidiary companies are still owned and managed by the same people, but on paper they are not from Israel. So the public is none the wiser.
Camel milk is a good product, and is logical for this region. Unfortunately the local populace doesn't know it, and the level of effort to create a market does not make it viable; in my opinion.
Jojoba on the other hand is logical. It grows a bean that comes from a plant that grows in desert conditions, which Djibouti is full of. Jojoba oil, from the bean, is used for many commercial purposes to include expensive perfumes.
The opportunity to be distracted are many. The primary project of developing 55MW of gas turbines, and 50MW of PV solar is a tough road to haul. 12 hour days traveling back and forth from Washington DC, Stuttgart Germany, and Naples Italy are normal, so I can imagine what life would be like if I took on another major project.
But then again, Camels might be fun :-)
That isn't the strangest part of this story, and not what I am writing about here. Since working on this project I have been approached by two international companies about potential projects in this country and in Somaliland. Somaliland is a un-recognized break away province that has very little resemblance to the Somalia that makes the news on a daily basis. Never mind that, these companies have asked me to partner with them on "Camel Milk" production, and now on Jojoba.
Side Note: The international companies that are speaking with me are located in Israel. As Jewish corporations they would not be openly accepted by a Muslim country especially one that is part of the Arab League; not good public politics. But under the covers these 'anti-Jewish' governments welcome Israel companies. How do do it? Well the Israeli folks are a practical lot, they simply form secondary and third level corporations that eventually are located out of the USA or Europe. These subsidiary companies are still owned and managed by the same people, but on paper they are not from Israel. So the public is none the wiser.
Camel milk is a good product, and is logical for this region. Unfortunately the local populace doesn't know it, and the level of effort to create a market does not make it viable; in my opinion.
Jojoba on the other hand is logical. It grows a bean that comes from a plant that grows in desert conditions, which Djibouti is full of. Jojoba oil, from the bean, is used for many commercial purposes to include expensive perfumes.
The opportunity to be distracted are many. The primary project of developing 55MW of gas turbines, and 50MW of PV solar is a tough road to haul. 12 hour days traveling back and forth from Washington DC, Stuttgart Germany, and Naples Italy are normal, so I can imagine what life would be like if I took on another major project.
But then again, Camels might be fun :-)
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