Running head: DOW CHEMICAL AND ENVIRONMENTAL AWARENESS
Dow Chemical and Environmental Awareness
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DOW CHEMICAL AND ENVIRONMENTAL AWARENESS
Dow Chemical and Environmental Awareness
Prepared for:
Jenell Barnard-Keller
COM 338
Prepared by:
Catherine Benscoter, Frank Burnash, Alicia Lecz, and Shanna Mills
University of Michigan - Flint
November 23, 2014
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DOW CHEMICAL AND ENVIRONMENTAL AWARENESS
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MEMO OF TRANSMITTAL
To:
Janell Barnard-Keller
From:
Catherine Benscoter, Frank Burnash, Alicia Lecz, and Shanna Mills
Date:
November 23, 2014
RE:
Dow Chemical and Environmental Awareness
Here is the research-based analysis of Dow Chemical Company’s Environmental Impacts and
Responsibilities as you requested.
Dow Chemical is a Fortune 500 Company that was analyzed and researched for this report.
Products, policies, and operations have been reviewed in order to understand the reasoning
behind Dow's sustainable success. Its innovative and strategic business style has helped Dow
become one of the leading chemical manufactures in the world.
Although Dow Chemical has achieved a high level of international success, their involvement in
environmental pollution has become in increasing problem. Dow has been involved with many
environmental blunders: water pollution, poisonous product development, and especially GMO
seed production. Fortunately, Dow has recognized this increasingly important problem and has
made significant changes geared towards environmental improvement. Technological and
scientific developments have led to a change in operational procedures and policies.
Group thirteen worked well together in planning and executing this report. Effective
collaboration from the beginning of the researching process has led to accurate and complete
retrieval of information. The analysis of this information was used to report on Dow Chemical’s
Environmental Impacts and Processes.
We would like to take a moment to thank you for giving us this opportunity to hone our research
skills and examine an important, “close to home” topic. I know we will find these new skills and
information indispensable in our future endeavors. Please let us know if you have any additional
questions or research requirements in the future.
DOW CHEMICAL AND ENVIRONMENTAL AWARENESS
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Table of Contents
List of Illustrations
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Introduction
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Dow Chemical Defined
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History
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Strategy
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Dow Chemical Products
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Past Products
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Current Products
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Dow Chemical and the Environment …………………………………………..….. …
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Future Environmental Issues …………………………………………………
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Sustainability
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Green Chemistry
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Conclusions and Recommendations……………………………………………………
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Appendix A
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References
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Past Environmental Issues
Unresolved Environmental Issues
Demand for change
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List of Illustrations
Pictures:
1. US Huey helicopter spraying Agent Orange in Vietnam ……………. 13
2. Brazos River near Freeport Texas
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3. Dow Chemical plant in Bohlen, Germany
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Appendix A: Dow Chemical Segment Sales 2013
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Tables:
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Dow Chemical and Environmental Awareness
The Dow Chemical Company is a leading, international chemical manufacturing
company with headquarters based in Michigan. Dow Chemical is infamously known for harming
the environment, but, with new scientific developments in Green Chemistry and changing social
demands, current objectives are working towards a more environmentally friendly approach. As
the international leader in chemical manufacturing, Dow has grown to understand the associated
responsibilities involved with sustaining operations geared towards environmentally safe
practices. Dow has infamously harmed the environment, but is currently working to restore their
public image as an ethically sound chemical corporation.
Dow Chemical Defined
Dow Chemical is a highly recognized organization, leading the process of chemical
manufacturing in various industries. Dow strives to become the international leader in safety,
security, health, and environmental performance. Dow’s history tells a story of innovation,
growth, trouble, and success. The founder, Herbert Henry Dow, believed “if you can’t do it
better, why do it” (Dow Chemical, 2014). With that philosophy, Dow has risen to become a
Fortune 500 company and has maintained a competitive market position in all their international
endeavors.
Dow believes in connecting chemistry and innovation to generate new solutions in
attempt to exceed customer expectations. Dow’s corporate strategy is geared towards customer
retention and ensuring each customer receives reliable products and quality services. For more
than 117 years, the company has focused on emerging markets which present an abundance of
innovative opportunities. Through technological advancements and innovative strategies, Dow
has become more capable of appeasing environmental concerns and increasing customer service
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efficiencies. Dow Chemical primarily focuses on agriculture, consumer lifestyle, energy,
infrastructure, and transportation products. The company is driven by innovations that extract
value from chemical, physical and biological sciences in order to address the world’s most
challenging problems (Dow Chemical, 2014).
History
The Dow Chemical Company is the lead producer in plastics, chemicals, hydrocarbons,
and agrochemicals. “It is the largest chemical company in the U.S. and the largest in the world
along with ExxonMobil and behind BASF (“Dow Chemical Company”, 2014).” Dow was
founded in 1897 by Canadian-born chemist Herbert Henry Dow. Herbert invented a new method
of extracting bromine from the soil in Midland, Michigan. “It was the composition of the brines
in and around Saginaw Valley that brought Mr. Dow to Midland” (Blair, Etcyl). Even in its early
history, Dow set a tradition of rapidly diversifying its product line and enhancing the idea of
innovation.
Within twenty years of initial operations, Dow had become a major producer of
agricultural chemicals, elemental chlorine, phenol and other dyestuffs, and magnesium metal.
During World War I, Dow Chemical became a primary supplier of various war materials, which
were previously imported from Germany. By 1918, 90 percent of Dow Chemical’s production
was geared towards the war effort. Also during this time, the famous diamond logo was created,
which is still used by the company today. After the war, Dow explored several different avenues
of opportunity and found researching magnesium to be financially beneficial. The results of this
research led to refined automobile pistons, which produced more speed and better fuel
efficiency. “Throughout its history, Dow has consistently and strategically built upon its
competitive advantage, its experts across the world continue to build upon the foundations
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illustrated below, and anticipating customer needs within key, targets sectors to deliver gamechanging solutions” (Dow Company). Throughout the years, Dow has been responsible for
revolutionary ideas that have helped economies develop more efficient manufacturing
environments.
Strategy
Dow maintains a market presence in about 160 countries, and employs about 54,000
people worldwide (Dow Chemical, 2014). Dow has built a long-standing, inventive reputation,
therefore performance expectations run high. Dow believes in leading with a purpose and
employing the most capable individuals. “Having skilled managers courageously leading a
culture of collaboration, innovation, integrity, and customer value is essential to Dows continued
success as a global chemical industry leader” (Harvard Business School). Dow’s corporate
leaders play an active role in developing strategies and directing market growth. They are driving
innovation with growth in science and technology, which ranges across a variety of different
sectors. They have undergone several transitions throughout the years and have focused on many
different paths. The current CEO, Andrew Liveris, is focusing more on innovative, high-margin
products, and domestic production.
Dow has become more aware of the environment, products produced, and what they can
do to help eliminate pollution. Dow experts continue to build upon anticipating customer needs
and targeting sectors to make corrective and preventive environmental solutions. “Dow scientists
and researchers continue to work toward developing new products, processes and technologies
that meet the needs of customers in a variety of markets while reducing the impact on human
health and the environment” (Blair, Etcyl). Dow places a lot of value in science, which is what
the company was built upon. Science is what made the company great and science is what will
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help it maintain its success.
Dow Chemical Products
Dow Chemical provides products and services to the following global industries: Industrial
Water, Power Generation, Municipal & Desalination, Food & Beverage, Healthcare, Chemical &
Petrochemical, Mining & Hydrometallurgy, Oil Field Water, Residential & Commercial, and
Waste Water & Reuse (Dow Chemical, 2014). Currently, Dow maintains six operating segments
which operate in these industries across 160 countries (Dow Chemical, 2014). Yet, this was not
always the structure facilitated by Dow Chemical.
Past Products
Dow Chemical originated as a manufacturer of bleach products in 1897. This product
generation was created to meet a growing demand caused by the Midland Chemical Company. A
bleach plant was required to eliminate the wastes created from bromine extraction processes
performed by Midland Chemical Company. Also, due to Michigan’s abundant brine deposits,
Dow Chemical was able to efficiently extract other chemicals such as chlorides, magnesium, and
calcium to jump-start operations (Encyclopedia Britannica, 2014).”
Dow Chemical’s roots appear ethical and vibrant from one perspective, but further
investigation into their past highlights an undesirable period of operations. Two infamously
known military weapons were developed and manufactured by Dow Chemical: Agent Orange
and Napalm. Herbicide Orange, a.k.a. Agent Orange, and Napalm B, a.k.a. Napalm, were
primarily utilized during the Vietnam War. From 1965 to 1973, despite environmental protests
and public disdain, Dow Chemical continued to manufacture both products, which led to an
unimaginable number of deaths. Agent Orange was originally produced to protect crops from
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deterioration. Napalm was originally intended as a type of flammable and adhesive material used
on buildings.
Current Products
Currently, Dow Chemical manufactures more environmentally friendly and ethically
responsible products. “Through innovations and investments aimed at addressable market
opportunities, coupled with a vast geographic reach, Dow fuels growth by connecting this
integrated and diverse portfolio of solutions to new customers and attractive end-markets in fastgrowing regions (Dow Chemical, 2014).” Where there are growing demands and emerging
markets, Dow Chemical plans to attack with innovative products and services found in several
industries of necessity. Dow Chemical maintains six primary segments on an international level.
Each segment is geared towards an individual goal, which ultimately relates to Dow’s
universal vision: “To be the most valuable and respected science company in the world” (Dow
Chemical, 2014). Innovation is a key variable of success and sustainability in the science
industry.
Electronic and Functional Materials. The Electronic and Functional Materials segment
accounted for eight percent of total sales in 2013 (Appendix A). This segment is responsible for
producing customized materials used in technology and specialty products – semiconductors
technologies, interconnect technologies, display technologies, and cellulosic technologies (Dow
Chemical, Financial Statements, 2013).
Coatings and Infrastructure Solutions. This operating segment accounted for thirteen
percent of total sales in 2013 (Appendix A). Low volatile organic coatings for building
insulation and adhesives for water technology are the two primary production lines. Major
products include: AQUASET, ACRYSOL, and DOW ADSORBSIA.
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Agricultural Sciences. The Agricultural Sciences segment was responsible for twelve
percent of total sales in 2013 (Appendix A). Products related to crop protection are the primary
functions of this segment. Plant biotechnology products, urban pest solutions, and healthy oils
have become innovative processes adopted by Dow Chemical. Key product lines include:
insecticides, fungicides, herbicides, seeds/oils (Dow Chemical, Financial Statements, 2013).
Performance Materials. The Performance Materials operating segment is responsible
for manufacturing performance of various products. These products range from household
cleaners to automobile parts (Dow Chemical, Financial Statements, 2013). This segment
accounted for twenty four percent of sales in 2013 (Appendix A). Primary products include: Heat
transfer fluids, Chelants, Chloroform, Formulated epoxy, and polyurethane systems.
Performance plastics. The Performance Plastics division accounted for over twenty six
percent of sales in 2013 (Appendix A). This is the largest and most profitable segment of Dow
Chemical operations. It is comprised of three defined businesses: Dow Elastomers, Dow
Electrical and Telecommunications, and Dow Packaging and Specialty Plastics. Popular products
include: Wire and cable insulation, EDPM’s, and Acrylics.
Feedstock and Energy. This operating segment accounted for eighteen percent of sales
in 2013 (Appendix A). With this division, Dow Chemical has become the largest producer of
Ethylene, chlorine, caustic soda, and purified ethylene oxide (Dow Chemical, Financial
Statements, 2013). Shale gas exploration has been an area of particular interest for Dow
Chemical. Extensive research and development costs have been incurred in order to remain
competitive on a global scale. Power and steam utilities, Chlor-Alkali, and Hydrocarbons are
primary product lines.
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Dow Chemical and the Environment
Dow Chemical has taken the long-road in terms of environmental awareness. It has taken
various environmental mistakes to make Dow understand their environmental capabilities and
their harmful repercussions. Some critics would argue that Dow still has a lot to learn and
improvements are not sufficient, but the problems are understood and clear to all parties
involved.
Past Environmental Issues
In 1984, a chemical company owned by Union Carbide Company exploded in Bhopal,
India. The Bhopal incident is an ongoing environmental issue that Dow Chemical inherited when
it purchased Union Carbide sixteen years after the tragic explosion (Dow Chemical, 2014). The
immediate death toll was over 8000, and the after-math death toll continues to grow. Each day an
average of one person dies from the environmental damage (The Ecologist, 2002). The death toll
now stands at over twenty thousand (Alpern, 2005). Although Dow wasn’t directly responsible
for the incident, their purchase of the company and industry involvement makes them indirectly
responsible. Dow will be the recipient of all profits stemming from the Union Carbide purchase,
therefore enhancing their responsibility. Despite this adopted level of responsibility, Dow has
declined financial responsibility for these deaths. Dow chose not to make monetary amends for
what they perceived as someone else’s mistake.
Like most major corporations, Dow chemical has a long history, which consists of
differing periods of growth. Certain periods are famously known for innovative strides in
technology while others are infamously known for environmental devastation. Probably the most
notorious environmental blunder, Agent Orange, came with the United States Government’s
blessing. As mentioned earlier, Agent Orange was a widely used herbicide that was dumped on
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Vietnam in amazing quantities: millions of gallons (Katz, 2010). The herbicide was used to clear
the dense jungle vegetation. The problem with Agent Orange is in the breakdown process. As the
chemical breaks down it leaves Dioxin behind, a by-product that remains long after initial
exposure. Alpern (2005) references a figure derived from U.S. Government data which states the
number of legal cases placed against Dow Chemical for the damages incurred by Agent Orange.
About 100,000 American and Vietnamese Veterans and families are suing Dow for the exposure
(2005). Dioxin residue is an on-going problem, which is still found in the environment,
especially for Dow Chemical because it remains behind many of Dow’s products.
US-Huey-helicopter-spraying-Agent-Orange-in-VietnamPublic Domain
Originally from U.S. Army Operations in Vietnam R.W. Trewyn, Ph.D. , (11) Huey Defoliation National
Archives: 111-CC-59948, originally found in Box 1 Folder 9 of Admiral Elmo R. Zumwalt, Jr. Collection:
Agent Orange Subject Files. - Item Number: VA042084
The burning of Saran Wrap led to the emission of dioxin. Saran is a product made of
chlorinated plastic that Dow produces using organo-chlorides, which are some of the most toxic
chemicals for our environment. Currently, the government is considering the phase-out process
for this product, eventually leading to non-existence (Katz, 2010). Today’s Saran Wrap is not
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made of the same compounds. Dow Chemical has realized the past and potential damages;
therefore, in attempt to control the abuse individual sale is no longer in existence. Only bulk
chemical sales are allowed.
Dioxins are particularly dangerous because of their level of persistence. Dioxin leaches
into the environment by invading the food chain. Dioxin enters the human body and stores itself
in fat cells. Dioxin is known as one of the “dirty dozen,” chemical pollutants that remain in our
bodies for seven to eleven years according to the WHO, World Health Organization (2014). The
WHO also states that these chemicals and Dioxin in particular, cause “reproductive and
developmental problems, damage to the immune system, interfere with hormones and cause
cancer” (2014).
Unresolved Environmental Issues
Current environmental issues for Dow Chemical include some cases found very close to
their home. The Tittabawassee River is located in Midland, Michigan near Dow’s headquarters,
which contains toxic levels of Dioxin. According to Mc Diarmid of the Tribune (2004), from
about 1900 to 1970, Dow Chemical’s Midland Chemical Plant dumped waste into and along the
Tittabawassee River. These toxic substances linger and are still causing problems today. Dow
has been ordered by the EPA to clean up the mess and restore environmental balance. But, legal
disputes surrounding the cause and impact of the toxins have prevented any real clean up from
happening.
The Brazos River supplies water to one of Dow Chemical’s Texas plants. During a recent
drought, water usage was strictly monitored, leading to the placement of a magnifying lens on
the chemical plant. Dow is the largest consumer of that particular water supply and has senior
rights to the supply allocation. Debate has risen between Dow and a group of farmers and
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community members on the overabundance of water usage and environmental deterioration
caused by Dow. This incident has shed negative light on the company and only exemplifies
another avenue in which Dow has caused harm to the environment.
Brazos River near Freeport Texas, photo from bigreddog.com
Dibromochloropropane, or DBCP, is a pesticide used in Costa Rica by banana farm
workers. DBCP has negatively harmed farmers, causing them to become sterile, or so they
claimed when suing both Dow Chemical Company and Shell Oil Company in Texas, 1984. The
pesticide was banned in the United States in 1979 when it was “linked to sterility, miscarriages,
birth defects, cancer, eye problems, skin disorders and kidney damage, according to eight
separate complaints” (Milford, 2012). If the case proves in favor of the plaintiffs, Dow Chemical
could be responsible for another environmental incident, further harming their reputation.
Herbicides like 2, 4, 5, and T are still polluting the environment. The crazy thing here is
that it was one of the main ingredients in Agent Orange. 2,4-D, a close relative of 2,4,5,T is the
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most widely used herbicide in the world according to Jack Doyle, owner of an investigative firm
specializing in business and the environment (Multinational Monitor, 2004).
Future Environmental Issues
Dow has entered the agricultural arena with its genetically modified seed products or
GMO’s. These products have certain chemicals hardwired into their genetic make-up. For
example, Monsanto, another GMO seed producer, has created seeds with “Round Up” built right
into the product. Round-Up is a common product used to kill weeds and other intrusive entities
that harm vegetation growth. So, what has Dow done to contribute or prevent? Remember 2, 4,
5, T and Agent Orange? Dow is inputting this relative 2, 4 –D chemical into the seed product
according to Forbes (2014). Dow calls the products: Enlist. According to Forbes (2014) certain
plants and seeds that may be killed or damaged by the herbicides that are present in the seed and
by the residues left in the land and ecosystems. Other concerns are the evolution of super weeds
that will no doubt be trouble for all other crops.
It is commonly understood that most plastics do not disintegrate naturally and are
therefore filling our landfills and polluting our waters. But, many individuals do not realize the
impact products, such as: Saran Wrap, PVC, and Styrofoam have on not only the environment,
but our bodies. The dioxins, chlorides and other toxic elements linger in the soil, then transfer
into the food chain, and ultimately into the human body. Dow doe not directly sell these types of
products to the consumer, but rather to those companies who produce these harmful products.
Unfortunately, Dow still produces the Biphenyl-A, organo-chlorines and 2, 4 –d products; which
are extremely harmful to the environment and human health.
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European regulations are cracking down on environmental pollutants and harmful
products. About one third of Dow’s revenues come from the European market, which will
ultimately have a major affect on future operations (Alpern, 2005).
Global Powerhouse: A Dow Chemical plant in Böhlen,Germany. The company produces
chemicals at 201 sites in 36 countries. Photo: Paul Langrock/Redux
Dow is “tiptoeing” into a more eco-friendly direction with the production of biopolymers,
or biodegradable plastics according to Doyle (Multinational Monitor, 2004). There is a growing
demand for operational change on an international level. Dow must conform or face the harsh
environmental truth, which will inevitably disrupt their operations.
Demand for Change
In order for an international corporation to maintain a competitive position in various
markets, conformance to social and economic demands need to be met and understood.
Sustainability in achieve by appeasing these demands and addressing the needs of the local
community. This can be accomplished by using natural resources efficiently in order to add
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value for each customer, deliver solutions for customer needs, and enhance the quality of life for
every generation (Dow Chemical, 2014).
Sustainability
In terms of sustainability, Dow’s current goals are to address climate change, increase
energy efficiency and conservation, enhance product safety leadership, contribute to local
communities, invest in local health and environmental protection, and breakthrough world
challenges (Dow Chemical, 2014).
Neil Hawkins, the corporate vice president and chief sustainability officer of Dow
chemical describes six “Know Thys” in order to “contribute to useful dialogue, convene the
relevant players, collaborate for visionary change and deploy resources for lasting outcomes”
(Hawkins, Six Know Thys of Sustainability, 2013). The “Know Thys” are described in layers to
help others understand the achievement of sustainability in this international environment. These
layers include: Know Thy Planet, Thy Country, Thy Industry, Thy Company, Thy Partners, and
Thy Self. These layers outline how any business can tie the environment and the CEO together
in attempt to reach sustainability goals. Dow Chemical produces a quarterly sustainability goal
update for interested parties, which highlight areas of innovation, such as: new technology
involving water treatment or improvements in solar energy. Innovation is a key characteristic in
maintaining a competitive position, particularly in the science and chemical industry.
With increased social concern for nutritional value and healthy living, environmental
issues related to agriculture are particularly important. The international assessment of
agricultural science and technology for development (IAASTD) responds to the needs of
consumers by analyzing current social and economic inequities, produce and food access ratio,
price changes, economic changes, changes in fossil fuel supply, emerging competitors, increases
DOW CHEMICAL AND ENVIRONMENTAL AWARENESS
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in chronic diseases related to poor food quality, and changing ecosystems (IAASTD, executive
summary of the synthesis report, 2008).
Green Chemistry
Green chemistry is defined as a chemical product’s process of reducing or eliminating the
use of hazardous substances. This process involves the complete life cycle of a chemical product,
from design to disposal (EPA, 2014). Some advantages of the production of green chemistry
involves the prevention of pollution, innovative scientific solutions to real-world environmental
problems, reduction in the impact of chemical processes on human health, and elimination of
existing product hazards (EPA, 2014).
Dow embraces green chemistry through a holistic design, no excess atom wasting,
minimizing energy footprint, and reducing hazard. Green chemistry is incorporated into simple
everyday products such as roofing shingles, lithium batteries, corn seeds, and sugar cane plastics.
Dow is increasing efforts to make the environment better for future generations. Due to past
environmentally damaging actions, Dow is being forced to change their approach. In 2013, Dow
Chemical was the winner of the U.S. Presidential Green Chemistry Challenge Award for their
product EVOQUE. This innovation environmentally improves the coating formation on paint by
using less titanium dioxide (Parenteau, Dow coating materials, 2013). For Dow, this will mark
the ninth time it has received this award. This product was developed as a means to effectively
consume raw materials and increase paint performance. This development has ultimately
decreased the level of pollution omitted into the environment.
There is a difference between cleaning up pollution, also known as remediation, and
green chemistry. Remediation removes hazardous materials after it has entered the environment,
while green chemistry prevents the hazardous materials from ever entering the environment.
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Prevention is a more proactive approach in the fight against pollution. With the increasing
demands of consumers and the environment, Dow chemical is being forced into the adoption of
new and innovative ways of operations that are more environmentally friendly. In order to
remain sustainable on an international level, Dow recognizes this demand and has made efforts
towards accommodation and growth.
Conclusion and Recommendations
Dow Chemical’s roots began with an operation initiated to meet a growing consumer
demand in Michigan. Starting with one bleach production, Dow has grown into a multinational
corporation, operating in several industries, developing numerous products and services, and
meeting differing consumer demands. Yet, with these differing influential forces, Dow had
strayed away from their core values of ethical responsibility and innovation by producing
environmentally harmful products. Dow Chemical is infamously known for harming the
environment, but, with new scientific developments in Green Chemistry and changing social
demands, current objectives are working towards a more environmentally friendly approach.
This improvement process is fueled by new consumer demands and the international need to
remain sustainable in an extremely competitive environment. Dow Chemical will continue to
make environmental improvements in attempt to restore their public image and satisfy consumer
demands. Dow Chemical is a large, international corporation, which strives to maintain a
universal attitude and the process of changing operations can take a longer amount of time than
some would deem acceptable. So, although international improvements have come at a slower
pace, the movement is in motion and headed in the right direction.
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Appendix A
Dow Chemical Company, 2013 Sales (In Millions):
2013
% of Sales
Net Sales (derived from Statement of Income, 2013)
57,080
Electronic and Functional Materials
4,591
8%
Coatings and Infrastructure Solutions
7,132
13%
Agricultural Sciences
7,137
12%
Performance Materials
13,415
24%
Performance Plastics
14,645
26%
Feedstocks and Energy
9,854
17%
TOTAL
100%
Dow Chemical Company (2013). Dow Chemical Company 2013 Annual Report. Retrieved from
http://www.dow.com/investors/pdfs/2013_Full_Report.pdf
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