Challenges in Applying Corporate EHS Standards to Expanding Global Operations

Klafter, Bruce
Applied Materials

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As companies are pushing their operations out into so-called “low-cost regions”, a variety of
issues will arise regarding facility siting and design, occupational safety standards,
environmental stewardship and in the context of supply chain management. There is
sometimes tension between corporate standards, generally established for sound risk
management purposes, and the business objectives of locating in these regions. Inflexible
compliance to corporate standards or best known methods may undermine the cost
advantages that underlie the siting decision. There are also practical difficulties or obstacles to conformance in certain areas where materials, skilled labor or expertise may be
unavailable.

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