Business values enhancement

In 2002, the industry reviewed the performance of the Responsible Care program and decided to make endorsement of a new set of management principles mandatory for its members (90 percent of U.S. chemical manufacturing capacity). The objective was to realize greater business value from improved EH S performance, higher product yield, enhanced operational efficiencies and better community and stakeholder relationships. 

Another pathway to sustainability is to generate more business value but with fewer pounds of material. We have a metric called shareholder value added per pound of product produced (SVA/lb). S VA is the value created above the cost of capital. By selling high-value services coupled with our products, we can enhance progress toward high SVA/lb. When coupled with other financial metrics, SVA/lb provides an indicator of future sustainability for different growth strategies. 

Engberg, S.J., Haming, M.B., Jensen, C.D. (2004). Zero-knowledge device authentication Privacy and security enhanced RFID preserving business value and consumer convenience. In Proceedings of the Conference on Privacy, Security Trust PST 04), Canada. 

When speaking of value, there is, basically, a financial and a non-financial interpretation of that term (Moller Tdrrdnen, 2003 323 Walter et aL, 2001 45). The financial meaning is closely linked to shareholder value, which characterizes a concept solely orienting a company s activities towards an enhancement of the value of its shareholders. As a result, the market value of the employed equity capital will be maximized (Buhner, 1992 418). The interests of other stakeholders are taken into account insofar as they are a means of achieving that objective. For the measurement of value enhancement, a set of diverse business metrics is developed, for example the economic value added (EVA), the discounted cash flow (DCF) or the cash flow return on investment (CFROI). However, the development of the shareholder value approach is not yet complete (Beck, 2003 3). Thus, many forms of application and transfer can be found, such as a combination of SCM and the shareholder value approach. Singhal Hendricks (2002, 2008) hint at the necessity of managing a supply chain in terms of the principles of shareholder value. The same thoughts can be found in the publications of Laupper (2004), Losbichler Rothbock (2006) and Neher (2003), who all deal with the transfer of the ideas of shareholder value into the context of supply chains. Due to the one-sided concentration on financial metrics and the value enhancement for the benefit of the company s shareholders, the stakeholder value approach is opposed to shareholder value (Achleitner, 1985 73 Bischoff 1994 ... 

The QC monitoring processes described above, if supported, were limited in their ability to support improvements and could only lead to action that was reactive in nature. Process integration is weak or nonexistent. Neither process maturity and development nor proactive system management is achievable. In the past, QMS enhancement was viewed as an expense and not seen as a relational contributor to the value chain. Aware management now realizes, through regulatory action, penalty and fines, delayed product approvals, recalls, and the like that establishment of a comprehensive QMS is essential to survive in the current regulatory environment and remain competitive in the business environment. 

This last part in the evaluation of the internal landscape demands that each business development transaction must be approached in the context of all these influences for the given situation. The transaction must be chosen to suit the internal and external landscapes and be presented to appeal to the influencers and decision-makers and deliver value in a way which enhances the company s future across all these dimensions. 

We believe that the future leaders among the specialty companies should make such decisions on the basis of a relentless focus on enhancing the value of their portfolios and harnessing synergies between the individual businesses. Their approach will be based on the following steps (Fig. 5.6) ... 

---