The best-run multinational companies face environmental challenges. Difficulties encountered by management include: violations of an extremely complex body of state and federal environmental regulations; facilities whose processes are subject to periodic upsets causing spills and noxious releases; malfunctioning air and water treatment systems; profitable products whose packaging, use, and disposal are inherently polluting; and accidents in transporting dangerous raw materials and products. in addition, resources of many companies are occupied with addressing the "sins of the past," the sites where the company disposed of waste, and which now may threaten the environment or the health of nearby residents.

The impact of these problems on public perception, the rising wave of green consumerism, and the time and money spent on cleaning up past disposal sites have motivated many companies to recognize the strategic importance of the environment. a customary response includes creating a high-visibility position to address environmental issues, often at the level of corporate vice president; hiring and training staff in the functional units to identify and solve environmental problems; and developing managerial systems aimed at reducing the incidence of violations and accidental releases, and learning from the inevitable mistakes.

Establishing an effective program to manage environmental . . .