pictorial offset

8/4/2019 Pictorial Offset

1/10

Reprint No. 10.s/2-109ISSN 1066 7938

Corporate Environmental StrategyInternational Journal of Corporate SustainabilityVolume 1.0, .IsS"Lle5 .( I\la)! 2003)Contents

Don C. Smith EditorialMid-Term Assessment: Bush AdministrationEnvironmental Policy 1-9Adisa AzapdgicSiobodan Perdan Managing Corporate Social Responsibility:Translating Theory into Business Practice 2-97Sandra RothenbergMonica Becker

Pictorial Offset Corporation: Simultaneous ISO 902 and14001Registration 2-19

Richard Steckel CommentarySocial and Cultural Trends:The Emotional Logic of Consumer Activity 4-17Gregory Wetstone CommentaryCorporate Responsibility and Bush Administration

Environmental Policies 4-21Michael R. Jones Conference Review

Launch of New British EMS Standard (BS 855:2003) 5-9In the New:; 7-21

7-24May 2003People in the News

Calendar June -December 2003 8-1Index for Volume 10, Issues 1 through 5ndex 10-1

Volume 10, Issue 5 -ContentsCorporate Environmental Strategy: International Journal of Corporate SustainabilityVol. 10, Issue 5 (May 2003) ISSN 1066-7938 C>2003 Netlogex, llC. All rights reserved.


2/10

Publication InformationPublication, Reprints and OrderInformationCotporate Environmental S/rategy:jnternational.lournal of Cotpo-rate Sustainabili{y (CES Journa~ is published by NetLogex,LLC. Subscription rates, reprint rates and ordering in-formation are shown on our web site at \v\V\v.corporat,,-env-strategj'.com and on the order forms at the back ofthis volume. Please direct product inCjuiries to: CESJournal, 251 Adams Street, Denver, CO 80206-5213;phone: +1 303 316 8435; fax: +1 413 677 4896; email:saies@corporate-env-,;tratcgycom.

Rutb Hilla ry,Ph.D:" "Editor at! "" """""1;" """Techni~.. LLG.All~htS;r~se~~;d.

NoticeNo responsibility is assumed by Publisher for any injuryand/or damage to persons or property as a matter ofproducts liability, negligence or otherwise, or from anyuse or operation ot any methods, products, instructionsor ideas contained in the material herein.


3/10

www.corporate-env-strategy.comSimultaneous

Technology, MassachusettsToxics Use Re-duction Institute, and the Natinal enter forRemanufacturing and Resourc~ Recovery atRIT.Corresponding Author: Sandra Rothenburg, RochesterInstitute of Technology, College of Business, 10B LombMemorial Drive, Rochester, NY 14623, Tel: 716-475-6032,Fax: 716-475-5989, Email: [email protected].

Sandra Rothenberg is currendy an assistantprofessor at Rochester Institute of Technol-ogy's (RIT) College of Businessand a researchassociate or the Sloan Printing Industry Cen-ter at RIT. Her research ocuses on environ-mental management within the automobileand printing industries. She previouslyworkedas a researchassociate or the Harvard GlobalEnvironmental AssessmentProgram, Massa-chusetts Institute of Technology (MIT) Con-sortium on Environmental Challenges, MITInternational Motor Vehicle Program, U.S.Office of Technology Assessment,and MITTechnology, Business and Environment pro-gram.Monica Becker is currendy consulting to thePrinting Industry Center at the Rochester n-stitute of Technology (RIT). For the past 15years Ms. Becker has been engaged n indus-trial pollution prevention research and con-sulting with a variety of organizations nclud-ing Tellus Insitute, Massachusettsnstitute of

Introduction"Last year the average printer in thiscountry saw a drop in rev~nue of be-tween 15% to 20%; we had ~% growth.We have found a way to rJn a qualityprocess, at the lowest cost, and create aprofitable business."Lester Samuels,Pictorial Of{set

2-109andra Rothenberg and Monica BeckerCorporate Environmental Strategy: International Journal of Corporate SustainabilityVol. 10, Issue 5 (May 2003) ISSN 1066-7938 @ 2003 NetLogex, LLC. All rights reserved.


4/10

Simultaneous ISO gO02 and 14001 Registration!

pean Community (EC). Because the ISO14000series s a continuation o{ the ISO 9000Product Quality sta:ndard eries, t is expectedthat lSO 14000 will eventUallybecome a re-quirement for attaining ISp 9000 re-certification. Thus, many companies are set-ting goals to establish enviro*mental man-agementsystems hat conform ito ISO 14001guidelines n order to remain


5/10

..Simultaneous ISO 9002 and 14001 Registration-~~~ ~ =-.

puter-to-plate technology. By the beginningof 2001, the company installed its secondLotem automated plate setter, enabling lastminute changes in press scheduling, paperselection, nk combinations and other settings.Developing EnvironmentalAwarenessThroughout its history, Pictorial was proactiveenvironmentally, to the extent that they wereconcerned about complying with applicableregulations or, in some cases,e~ceeding hem.They also attended to non-re~ated areas ofenvironmental performance. Fdr example, hecompany started recycling much earlier thanmost. As a small printer in Manhattan, Picto-rial utilized the services of a typical wastepa-per recycler. When it moved tQNew Jersey n1979, the company implemented a sophisti-cated recycling process. The system nvolvedbaling and shipping wastepapet direcrly fromthe plant to a mill. In the late 1970's to early1980's, his was atypical for a printer of theirsize. Another area of environmental manage-ment that Pictorial tackled was the use of sil-ver in fi1rrtprocessing.There were several.key events that led allthree brothers to support a more aggressiveenvironmental managementprogram. First,one of the brothers, Don Samuels,was moti-vated by a television program in the early1980s. He recalls this pivotal event in thisway:

"I sawa program on [the Ptiblic Broad-castingSystem] about a plant in Brain-tree, Massachusetts. ..Tlile Mainte-nance Department was washing ma-chine parts with trichloroethylene andthen tossing [the spent] tri~hloroethyl-ene out in the backyard. This was notdone maliciously, but it ended up pol-luting local wells. I said 'what happenedin Braintree could happen to us.' Andthat was the beginning of, I'll call it, anenvironmentalconsciousness."

The Growth of a Printing CompanyPictorial Offset Corporation, located in Carl-stadt, New Jersey, s a graphic arts organiza-tion specializing in both sheet fed and weboffset lithographic printing. This family-owned and operated company traces ts his-tory back to 1938. Pictorial was fIrst run andowned by Harry Samuels. The company waspassedon to his son Jay Samuels n 1963. In1980 there was a drastic change n the com-pany. After a move to New Jersey, he com-pany was on the edge of bankruptcy, and Jaydied in a car accident in April 1980. Jay'ssons, Donald (Don), Gary and LesterSamuels, took over the managementof thefIrm and started to grow the company. Thethree brothers each took over a specific areaof management.Gary Samuels s in charge ofmanufacturing and distribution. Don Samuelsis responsible for salesand marketing. LesterSamuels s in charge of financial and envi-ronmental management.Each brother bring~ a unique expertise andpersonality to the business and it is throughthe well-coordinated efforts of the threebrothers, and the employeesat Pictorial Off-set, that the company has achieved economicsuccess and improved environmental per-formance.Today, the company's275 employeesgenerate$50 million in sales annually. The 197,000square foot facility operates around the clockproducing printed corporate communications,advertising, direct mail, and sales collateraland promotional material. Pictorial countsamong ts customers several arge automotive,communications, cosmetic, and pharmaceuti-cal corporations. Pictorial also works withseveral arge advertising agencies. Their typi-cal print job is relatively large, averaging be-tween $25,000 o $35,000,with some projectsranging nto the millions.Pictorial prides itself on staying at the cutting-edge of new technologies n the printing in-dustry. By the end of the year 2000, Pictorialcompleted its transition to full digital com-

2-111andra Rothenberg and Monica BeckerCorporate Environmental Strategy: International Journal of Corporate SustainabilityVol. 10, Issue S (May 2003) ISSN 1066-7938 @ 2003 NetLogex, LLC. All rights reserved.


6/10

Simultaneous ISO 9002 and 14001 Registration---Icost Pictorial $30,000, a large sum of moneyin those days.

These environmental concerns struck a chordwith Lester Samuels,who held strong memo-ries &om childhood, when he would go to thebeach everydayand see somethingwashed upon-shore, preventing him from going in thewater. He wanted to try to change that andleave a cleanerearth for his grandchildrenandgreatgrandchildren.Don and Lester Samuels started to makechanges at Pictorial in seemingly small steps.Surprisingly,when they tried to institute a newwastewatermanagementpolicy. they got theirfirst taste of resistance to change. DonSamuels xplained:

"No one at Pictorial understood envi-ronmental issues at that time. I thinkup until maybe the late 70's [everyonethought that} the world was one giantsewer and everything would just disap-pear."

As managementbegan o take a closer ook atchemical use and environmental managementin the flrm, they started to realize that realchangewould require more than simply alter-ing a few housekeepingpractices. In order totake control of the situation, Don Samuelstook stock of all the chemicalsbeing used inthe firm. He realized that every pressman, norder to make the ink work better, was run-ningeach job as "his own little mad chemistryfactory," adding their favorite additives.Moreover, there was no scientific understand-ing of why different materials were beingused.

This incident added an econoriUc mperativeto the environmental one. Refl~cting on theirexperience with incremental, ad hoc correc-tions to operating practices, Gary SamuelsrealiZed hat fundamental changewas needed.He announced that every cheriUcal in theplant that was used as an ink a~ditive was tobe collected and properly disposed of. Asexpected, here was si~ficant resistance romthe press operators who insi$ted that thecheriUcals were critical to their operation.Don Samuels explained why this type ofproblem was particularly troub~esome o theprinting industry:

"The mad chemistry approach comesfrom the craft not the techtl1ology ideof printing. The operators kriow if theyuse a certain additive it makes the inkwork a little bit better, another has aneffect of a different type. By the timethey finished, they have changed thechemistry of the ink and its perform-ance n the drying process and [created]an unknown operating situatJion. Eachpress operator had their own chemistrysets that they had accumUlated overtime, and insisted were necessary o do-ing their job."

Despite the protests, Gary Samuels perse-vered. In then end, Pictorial di~posed of be-tween 50 and 100 different ink additives.This experienceprecipitated a larger effort toimprove operational efficiency, for both eco-nomic and environmental reasQns. Pictorialconducted a systematic eview of their opera-tions, looking for opportunities to reducewaste and increaseefficiency. Don and LesterSamuels carried out a comprehensive wasteaudit. As a result of this effort, Pictorial foundthat there was a si~ficant amount of wrap-ping material coming in with \:he paper, allgoing to landfill. One of the major constitu-ents of this waste stream was the steel strap-ping on skids of paper. They reduced this

In Al;lgust 1990, a pivotal event spurred Donand Gary Samuelson to a more drastic courseof action. A large print job was scrapped be-cause an employeehad added too much of aparticUlar high VOC4 chemical, "GoldMagic," to the ink formulation. This mistake

4 VOC, or Volatile Organic Compounds, are de-fined as any organic compound that reacts with nitro-gen oxides (NOx), in the presenceof sunlight, to formozone. Ozone in the lower atmosphere acts as a lungirritant.

Sandra Rothenberg and Monica BeckerCorporate Environmental Strategy: International Journal of Corporate SustainabilityVol. 10, Issue 5 (May 2003) ISSN 1066-7938 @ 2003 NetLogex, LLC. All rights reserved.

2-112


7/10

Simultaneous ISO 9002 and 14001 Registration, / -T- ~

waste and the cost of disposing t by purchas-ing a machine that chipped up the steel strapsand dumped them into 55-gallon drums.While the chipped steelwas recycled, t was byno means an economic windfall, offering atbest a breakeven eturn.

Changes in Culture and PracticeOne of the f1rst changesas a J!esultof imple-menting ISO 14001 was the formulation of aformal environmental policy. Prior to this,the top managers ried to estaplish a culturalnorm that was summed up by tbe phrase "youhave to work safe and you "have to workclean." But, the ISO process'motivated thecompany o more formally articulate their en-vironment~ values and management goals(SeeFigure 1).

Formalizing EnvironmentalManagement: Adopting ISOStandardsIh 1997, Pictorial was exploring the possibilityof adopting ISO 90025standards.One of theISO consulting flrms told Pictorial about thenew 14001 standard, which they were notaware of at the time. Gary Samuelswas thedriver behind adoption of the 9002 standardand instrumental n pursuing ISO 14001.GarySamuelsargued o his brothers that if Pictorialwas going to adopt 9002, and build a new op-erational system, why start the process againfor 14001. He su,ggestedhat the companyintegrate the two systems and adopt themboth at one time. This was a rather novel ideaat that time and the consultants informedtHem that no one had ever done that before.Gary Samuels said "Well, we're going to bethe fIrst ones in the world." And they were;the company received dual r~gistration n De-cember 1998. .Being the fIrst to simultaneouslyadopt 9002and 14001 was easier said than done. Themost difficult part was that the registrationcompanies had not yet attempted double reg-istration. Pictorial approached ive registrarsto see f it could be done. Only one registrarwas positive about completing the double reg-istration. Another said that they would thinkabout it and the rest said that they could notdo it. A major obstacle was that most regis-trars train their auditors to specialize n either14000 or 9000, but not both. Eventually, theyfound a registrar willing to use two lead audi-tors simultaneously,one for eachstandard.

ISO standardsalso had a significant mpact onthe types of performance measures hat Picto-rial tracked. Under ISO 14001; a plant needsto show how their performance compares tooperational goals that they ha~e set. There-fore, starting in 1997, the comlJ>anyegan ex-pending a great deal of effort to collect andmake available performance information andto improve the accuracyof the information.For each process, they investigated opera-tional inconsistencies and soUFces f waste,starting with the largest problcms first. Asexplained by Lester Samuels:

"We used to 'look' at a press and say thad excessivewaste. Now we measureit. We set standards hat our press crewhas agreed o so that they can accom-plish their task and we can give themfeedback based on the goals that theyhad a hand in setting.. Someipeople willnever buy into it, but the fact is it givesus, as the company grows, !operational5 This standard s now obsolete and was replacedby ISO 9001 2000.


8/10

Simultaneous ISO 9002 and 14001 Registration-

conformances that emerge from the ISO au-dits, it is easy or the progr;am o lose ts effec-tiveness.As explained by Pictorial's ISO man-ager, "You just have to make up your mindthat if you do it you will do it with no excep-tions. The second you bend, your employeesunderstand that the dollar just overrode theethics."

tion standard, 9004 s a set of guiding qualitymanagementprinciples intended to assist anorganization n continual improivement aimedat increasing efficiencies throuf?;hout he or-ganization. It is not clear, hdwever, in theshort term how much of an effect 9004:2000will have. Many fIrms are co~centrating onimplementing the new requirem~ntsunder therevised ISO 9001:2000. Firms Jinust e recer-tified under the new standard !by December15,2003.As a fmal note, Pictorial and o~er firms thathave ntegrated heir QMSs and EMSs will beable to take advantage of a newly releasedcommon 9000/14000 auditing standard ISO19011. This new standard epl~ces he exist-ing ISO 10011 and ISO 14010/14011/14012documents.AcknowledgementsThe authors would like to thank Pictorial Off-set Corporation for generously agreeing toshare their experiencesand insights on ISOadoption, as well as he Printing ~ndustryCen-ter at Rochester nstitute of Technology andthe Alfred P. Sloan Foundation ~ndustry Cen-ters project for supporting this research.

ConclusionsP ictorial Offset, through the commit-ment of strong le~ders~p,.wasable toapproach SO certIfication m what was,at that time, a unique way. While there wereno institutional structures n place within thecertification community to jointly implementthe 9000 and 14000 standards, he leadershipsaw hat it was clearly in the best interest ofthe fIrm to push the existing institutions todevelop these capabilities. By Jointly imple-menting the two programs, the fIrm was alsoin a position to compare he relative nfluenceof the two programs. To their surprise, theyfound that it was the adoption of ISO 14000,somewhat of a rarity in the printing industryand more of an a.fterthought o the decisionto adopt ISO 9000, which motivated thegreatest mprovements in not only environ-mental performance, but also operationaleffi-ciency, cost reduction, and evenquality.Pictorial's experience points out that theoriginal intent of ISO 9000 was to guaranteethe effectiveness,but not necessarily he effi-cien~y, of an organization. A major objectiveof the ISO 9001 2000 revision was to addressthis lack of attention to process efficiency.While Pictorial overcame this shortcomingthrough its implementation of 14000, fIrmscan now fmd guidance in the new ISO9004:2000 Quality Management Systems -Guidelines for Performance Improvement6.While explicitly designednot to be a certifica-

6 ISO 9004:2000 Quality Management Systems,Guidelines for Performance Improvements. Full-textversion available at: http://www.iso.ch/iso/en/prods-services/ISOstorel storc.html.

Sandra Rothenberg and Monica BeckerCorporate Environmental Strategy: International Journal of Corporate SustainabilityVol. 10, Issue 5 (May 2003) ISSN 1066-7938 @ 2003 NetLogex, LLC. All rights reserved.

2-116


9/10

.-International..Journal of Corporate~Sustainabilitv(ISSN -r 1)6 7 9 '2 8.." 1 ': l 6-, ~) )

Achieving corporate social responsibility s one of the most vexing, yet most promising, issues everto face the businesssector. On the one hand, the importance of traditional busin~ss mperativessuch as revenue and profit growth are universally acceptedcomponents of corporat~ strategy. Onthe other, stakeholdersas well the public are increasinglydemandingmore attention blegiven to newbusiness mperatives such as corporate social responsibility.In these challenging, and yet opportune times, CoporateEnvironmental trateo: nternationalournalofCoporateSustainabtlityCES Journa~offers credible, reliable, and timely guidance in the form ofthought-provoking editorials, commentaries, articles, and case studies on how corporations canachieve corporate sustainability. Beginning its 10th year of publication, CES Journal s the pre~eminent nternational information source consideringcorporate sustainability. Don't you want CBSJournalworking for you?CESJournal is published n a loose-leaf ormat (81J2ll inches-letter size). The subscription priceincludes a sturdy three-ring, tabbed binder in which to hold the 10 issues which are publishedmonthly except in August and December. For subscription information call +1 303 316-8435, oremail [email protected].,r visit the CBS Journalweb site at:

www.corporate-env-strategy.com

pictorial offset

Documents