Focusing solely on compliance is so 1990s, or at least pre-BP Deepwater Horizon. That’s why I was surprised by the official statements from MAL Rt. immediately following the “red sludge tsunami.”
 
By way of quick background for those who haven’t been following this, nearly 200 million gallons of what is euphemistically described as red sludge -- noxious industrial byproduct of the aluminum-making process -- escaped its containment reservoir at an aluminum factory in Hungary, killing nine people, hospitalizing more than 100, rendering hundreds of homes uninhabitable, and potentially contaminating the Danube river ecosystem for years to come.
 
As the story broke, company officials said that “the red sludge waste is not considered hazardous waste” according to E.U. standards and that the company had “conformed to all safety standards.”

Much of my work at GreenOrder focuses on working with clients to uncover innovative sustainability opportunities. But we always caution not to lose sight of environmental fundamentals.
 
The jury is out on whether or not MAL Rt. did indeed follow the letter of the law. But incident after incident has clearly demonstrated that the downside risks (in cost, reputation, even license to operate) of a potential accident outweigh incremental costs of “outbehaving,” as we refer to going beyond compliance.
 
Just meeting the minimum legal requirements isn’t enough to keep you out of trouble, out of jail, or, perhaps most importantly, out of the court of public opinion.

Dan Saccardi is an associate at GreenOrder, an LRN company. GreenOrder is a strategy and management consulting firm that helps companies achieve competitive advantage through environmental innovation.

Images courtesy of NASA Earth Observatory.