Title: Environmental management consequences of macrostructural changes in a Finnish and a Hungarian chemical company

Authors: Tarja Ketola, Gyorgy Pataki

Addresses: University of Vaasa, P.O. Box 700, 65101 Vaasa, Finland; Turku School of Economics, Rehtoripellonkatu 3, 20500 Turku, Finland. ' Environmental Social Science Research Group, Department of Environmental Economics, Institute of Environmental and Landscape Management, St. Istvan University, Pater K. u. 1., H-2100, Godollo, Hungary; Department of Decision Sciences, Institute of Business Economics, Corvinus University of Budapest, Fovam ter 8., H-1093, Budapest, Hungary

Abstract: This paper compares the impacts of macrostructural changes in Finnish and Hungarian societies during 1989–2004 on the environmental management of a Finnish and a Hungarian chemical company. Regime change: Hungary|s rapid change from socialist to market economy, Finland|s equally rapid change from welfare society to market economy during the early 1990s. EU membership: Finland|s in 1995, Hungary|s in 2004. Privatisation: The Hungarian company followed the trend of 100% state-owned companies turning 100% privately owned; the Finnish company followed the trend of nearly 100% state-owned companies becoming increasingly private. These companies represent cases of survival and prosperity through major macrostructural changes. Reasons for success include the following: operating in absolutely necessary lines of businesses for environmentally slowly changing societies; efficient bureaucratic structures with capitalist mindsets; fostering managerial innovation, creativity and risk taking; adopting entrepreneurial approaches to environmental issues, transforming environmental threats to business opportunities. However, in the early 2000s the companies took different backward steps in environmental pioneering.

Keywords: macrostructural changes; environmental management; consequences; chemical industry; Finland; Hungary; regime change; privatisation; European Union; EU membership; organisational change; structural change; industrial ecology.

DOI: 10.1504/PIE.2007.016352

Progress in Industrial Ecology, An International Journal, 2007 Vol.4 No.6, pp.418 - 439

Published online: 20 Dec 2007 *

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