Sustainable Development at Alcoa


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Case Details:

Case Code : BECG034
Case Length : 23 Pages
Period : 2003 - 2004
Pub. Date : 2004
Teaching Note :Not Available
Organization : Alcoa Inc.
Industry : Aluminum
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

The Alcoa Business System

As a result of a comprehensive global expansion exercise undertaken during the 1990s, Alcoa quadrupled in size and its employee base doubled. During this period, the top management found that the SD initiatives taken up at the global level were unstructured and uncoordinated. Though most of its subsidiaries at various locations undertook several SD initiatives, there was no coordination between different subsidiaries.

To check this anomaly, Alcoa decided to increase employee awareness of its ethics and compliance programs. This resulted in the establishment of the 'Ethics and Compliance Program,' which included globally published workplace standards and a global education program. As part of this initiative, the company also set up an Ethics and Compliance line, a toll free telephone line operating round the clock.

The company encouraged its employees to use this facility to report issues regarding violations of Alcoa's policies and values. Stakeholders (other than employees) were also encouraged to use the hotline to express concerns about issues regarding workplace activities and Alcoa's business practices...

Recent Initiatives

1999

In 1999, 15 Alcoa locations were certified with the ISO 14001 standard. In the same year, the company formulated the 2020 Strategic Framework, a 20-year vision framework for environment management and SD. It allowed all company units to develop their individual goals and action plans within this framework. This framework was formulated with the aim of balancing the social, economic and environmental sustainability and had six objectives (Refer Table II for details)...

2000-01

One of the major developments towards sustainability at Alcoa in 2000, was the establishment of a commercial research and development Spent Pot Lining (SPL) facility at its smelter in Portland, Australia. This facility was established to find out how SPL could be recycled into a safe and useful product. Apart from this, the company continued to work towards fulfilling its objectives laid down under various projects such as the One Million trees project, environmental restoration projects and mine rehabilitation projects. In 2001, Alcoa's Alumar Environmental Park at the Consórcio de Alumínio do Maranhão facility near São Luís, Brazil (established in 1996) began serving the area's recreational and environmental conservation center...

Sustainably Developing the Future

In 2003, Alcoa took a major step towards sustainability by announcing that its new aluminum production plant in Eastern Iceland would be designed in a way that would eliminate health and safety hazards. It reported that the new plant would have very little negative impact on the environment since it was designed to 'achieve strict, self imposed sustainable development objectives'...

Exhibits

Exhibit I: Alcoa and Greening Australia - Community and Environmental Issues Taken Up
Exhibit II: The Alcoa and Greening Australia Partnership - Major milestones
Exhibit III: Sustainable Development Vs Unsustainable Development
Exhibit IV: Alcoa Foundation - Areas Of Focus
Exhibit V: A Note on Aluminum and its Contribution to Sustainability
Exhibit VI: Alcoa - Environmental, Health and Safety Awards (1998)
Exhibit VII: Alcoa - Goals for Achieving the 2020 Strategic Framework
Exhibit VIII: Alcoa - Environmental, Health and Safety Awards (1999-2002)
Exhibit IX: Alcoa - Workplace Health and Safety Initiatives


 

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