Document YrQbLLq4801X6xOVXLJLjNbJD

07\004\018\0080\000001 Minutes\EC 9/12/94 07\004\018\0080\000002 MinutesVEC 9/12/94 07\004\018\0080\000003 MinutesVEC 9/12/94 07\004\018\0080\000004 MinutesVEC 9/12/94 CMA 063459 TIME 12:15 CHEMICAL MANUFACTURERS ASSOCIATION EXECUTIVE COMMITTEE MEETING 12;15 p.m., Monday, September 12,1994 Pavilion 3, Ritz Carlton Laguna Laguna Niguel, California AGENDA ITEM ACTION REQUESTED (Information, Discussion or Action ) TAB 1. Lunch 2. Call to Order and Approval of Minutes of Tune 8,1994. Meeting -- Vincent A. Calarco, Chairman Action 10 3. Review of Agenda a. Items to be Presented to the Board for Information Only (Any further discussion required?): Public Perception Committee -- Robert G. Potter Board International Committee - Robert v.d. Luft Board State Initiatives Committee -- James D, Mclntire Responsible Care Information Items -- Charles A. Aldag Trade Issues - J. Roger Hirl and Timothy F. Bums Federal Legislative Issues and Activities -Lewis F. Gayner Membership Committee - John P. Connelly Program Committee - Thomas L. Gossage Risk Advocacy Strategy -- Morton L. Mullins Information and Discussion 13 18 5 9 11 12 6 b. Board Action Items Not Deemed To Require Separate Executive Committee Review (Unless Requested) at this Meeting: Membership Committee Report -Hodgson Chemicals Inc. Application Chlorine Chemistry Council Policy Items -- J. Roger Hirl and Sandra L. Tirey Information and Discussion 11 7 c. Identification of Additional Executive Committee Discussion Items (If any) to be Taken up Under Item 7 (New Business) Below d. Excuse Committee Resource Personnel Not Needed for Remaining Items 4. Executive Committee Policy Action Items a. Proposed Product Stewardship Management CMA 063460 19 TIME 2:45 3:00 ITEM ACTION REQUESTED (Information, Discussion or Action ) Strategy - Larry Rampy, The Dow Chemical Company b. Proposed Ad hoc Committee on Science and Risk Alliances -* Morton L. Mullins c. Proposed Environmental Equity/Justice Strategy -Larry Springer, DuPont d. Global Climate Issues Proposed Response to Department of Energy Global Climate Action Plan Initiative -- Thomas Parker, Jr., CMA Atmospheric Research Council Activities - Ross Stevens, DuPont e. Responsible Care -- Charles A. Aldag, Chairman, Responsible Care Coordinating Group; and Richard M. Doyle, CMA Proposed Code Implementation Schedules Proposed Partner Companies Proposed Modifications to Service and Trademark Guidelines Association Activities a. CMA Building Recommendations -- Gary C. Herrman b. CMA Staff Human Resources Function -- Fred Webber c. Proposal for Advertising in CMA News - Jon Holtzman d. Chlorine Chemistry Council Administrative Issues: Extension of CMA Membership Waiver for Chlorine Chemistry Council Members -- Charles W. Van Vlack Authorization of Installment Payments for Chlorine Chemistry Council Dues - Gary Herrman e. Treasurer's Report -- Gary C. Herrman f. Committee Vacancies -- John P. Connelly Action Action Action Information and Discussion Discussion and Action Action Action Discussion and Action Action Action Information Action 6. New Business 7. Adjourn Information and Discussion TAB 14 15 16 17 21 18 20 22 23 24 5 25 :ma iC-9/12/94 Sep94agn.cc - 2- CMA 063461 CHEMICAL MANUFACTURERS ASSOCIATION EXECUTIVE COMMITTEE September 12,1994 Ritz Carlton Laguna Laguna Niguel, CA MINUTES OF THE MEETING I. Chairman Calarco called the meeting to order at 12:18 p.m. There were present: Members: Vincent A. Calarco, Chairman Earnest W. Deavenport, Jr. James E. Fligg Thomas L. Gossage Bruce C. Gottwald Michael H. Grasley Alan R. Hirsig Thomas F. Kennedy Secretary: John P. Connelly Treasurer: Gary C. Henman General Counsel: David F. Zoll Executive Vice President: Charles W. Van Vlack Other Participants: Robert v.d. Luft Ray B. Nesbitt Robert G. Potter M. Whitson Sadler William S. Stavropoulos O. Edward Wall Frederick L. Webber David S. Alcorn, Crompton & Knowles Corporation Charles A. Aldag, CMA Paul R. Berry, Miles Inc. Timothy F. Bums, CMA Richard M. Doyle, CMA J. Brian Ferguson, Eastman Chemical Company Lewis F. Gayner, The Dow Chemical Company Clyde H. Greenert, CMA Jon C. Holtzman, CMA Clifford T. (Kip) Howlett, CMA Geoffrey B, Hurwitz, Rohm and Haas Company Thomas R. Jacob, DuPont J. Laurence O'Neill, Monsanto Company Thomas C. Parker, CMA Michael A. Pierle, Monsanto Company Larry Springer, DuPont Ben Woodhouse, The Dow Chemical Company 2- Approval of Minutes. The minutes of the June 8,1994 meeting were approved as distributed. 3 Review of Board Agenda Items. No items which had been designated for Board action or discussion only were identified for further Executive Committee review. CMA 063462 Page 2 4. Proposed Product Stewardship Management Strategy. Mr. Rampy reviewed the proposed strategy designed to implement a proactive risk-based product management strategy. After lengthy discussion, the Committee requested the proposed strategy be redrafted prior to it being forwarded to the full Board. The Committee authorized the CMA committees and staff to implement advocacy plans with EPA and other agencies under existing Board approved policies. 5. Proposed Ad Hoc Board Committee an Science and Risk Alliances. Mr. Mullins presented a proposal to form an ad hoc Board committee that would assess and evaluate the various organizations which address science and risk issues and that frequently seek funding from the chemical industry. The Committee approved its formation and recommended it for Board concurrence and requested a report within one year. It was noted that Mr. Joyce had agreed to chair the group. 6. Proposed Environmental justice Strategy. Mr. Springer presented the proposed strategy on environmental justice. The Committee approved the proposed strategy and recommended it for Board concurrence. The Committee further discussed the need for individual Directors to actively work with other associations with whom they are active to form a coalition. 7. CMA Climate Action Plan. Mr. Parker presented CMA's Climate Action Plan that calls for, among other things, CMA members to voluntarily reduce their greenhouse gas emissions. The Committee approved the Plan and recommended it for Board concurrence. 8. Atmospheric Research Council. Mr, Stevens presented a status report on the activities of the Atmospheric Research Council. 9. Proposed Responsible Care Code Implementation Schedules: On behalf of the Responsible Care Coordinating Group (RCCG), Mr. Aldag presented a proposed Association wide Responsible Care Code Implementation schedule. The Committee approved the schedule and recommended it for Board concurrence as set forth in Exhibit A. The Committee requested that the staff present for the Committee's review the plans to communicate the schedule beyond CMA's members before those plans are implemented. 10. Responsible Care Partner Companies. Mr. Doyle presented ABF Freight System, Inc., DSI Transports, Inc., Slay Transportation, Inc., and Yellow Fright System, Inc. as Responsible Care Partner Companies. These were approved. 11 Revisions to the Responsible Care Service and Trademark Guidelines. Mr. Doyle presented proposed changes to the Responsible Care Service and Trademark guidelines that would accommodate a request from the Synthetic Organic Chemical Manufacturers Association (SOCMA), a Responsible Care Partner Association. The Committee approved the revisions and recommended them for Board concurrence. 12. CMA Headquarters Recommendations. Mr. Herrman presented a proposal for CMA to execute a fifteen year lease for a building at 1300 Wilson Boulevard in Rosslyn, VA. Significant discussion points included: the need for additional space; the benefits and drawbacks of a long-term lease; the question of centralizing all CMA functions; and the impact a move would have on key staff. The Committee approved the recommendation and recommended it for Board concurrence based on: the need for CMA to recapture lost meeting room space; the need to have space available for self-funded CMA activities; the need to have space available for CMA 063463 Page 3 other associations that may wish to co-locate with CMA; the need to be conveniently located near subways, Capitol Hill, EPA and other agencies, and hotels; and the financial attractiveness of the proposed lease. 13. CMA Staff Human Resources Function. Mr. Webber presented a proposal to form a staff Human Resources function that would consolidate the Association's staff personnel, benefits, and training activities. The Committee approved the proposal as set forth in Exhibit B. 14. Proposal for Advertising in CMA News. Mr. Holtzman presented a proposal to conduct a one year pilot of advertising in CMA News. He noted the proposal would require the services of part-time staff support but that support would be drawn from other CMA resources. He also noted that the ultimate goal of advertising in CMA News would be to provide non-dues revenue while keeping the information presented useful. The Committee approved the pilot project as set forth in Exhibit C. 15. Extension of CMA Membership Waiver for Chlorine Chemistry Council Members. Mr. Van Vlack presented a request on behalf of the Chlorine Chemistry Council (CCC) to waive the CMA membership requirement for CHEMSTAR Business Councils. The Committee approved the request as set forth in Exhibit D. 16. Authorization of Installment Payment for Chlorine Chemistry Council Dues. Mr. Herrman presented on behalf of the Chlorine Chemistry Council a request that CCC members be allowed to pay dues in two installments. The Committee approved the request as set forth in Exhibit E. 17. Treasurer's Report. Mr. Herrman reported that for the fiscal year ending May 31,1994, the Association had revenues of $41.1 million; expenses of $39.0 million. The net contribution to reserves of $2.1 million was derived with $363,000 from general operations and $1.8 million from the Public Outreach Program reimbursement to CMA for initial start-up funds which CMA had provided during the first year of the program. He also reported that through the two months ending July 31,1994, the Association had revenues of approximately $22.8 million; expenses of approximately $3.6 million, with the overall variances being within anticipated ranges. 18. Committee Vacancies. Mr. Connelly presented several nominations to fill vacancies on CMA committees. These were approved as set forth in Exhibit F. The meeting adjourned at 3;37 p.m. Director, Member Relations Corporate Secretary Certified by: Vincent A. Calarco Chairman, CMA Executive Committee CMA 063464 Exhibit A RESPONSIBLE CARE CMA CODE IMPLEMENTATION SCHEDULE Background: In June 1993, the CMA Board of Directors adopted nine enhancements to the Responsible Care initiative. One of these enhancements called for the development of a CMA Code Implementation Schedule. This action was intended to result in continuous health, safety and environmental performance improvement on the part of individual member companies and the overall CMA membership. It was also intended to enhance the public credibility of member and partner companies' efforts to implement Responsible Care. The rationale for establishing company and association-wide Code implementation timetables is consistent with total quality management. Experience in this area points to the need for setting and following up on goals to ensure continuous performance improvement. In this enhancement to Responsible Care the Board directed CMA to request all member companies to submit projected timetables for implementing each of the six Codes of Management Practices. A goal of five years from when each Code was adopted was held out as a target for members to use in establishing their implementation timetables. To assist the membership in establishing their internal Code implementation timetables, CMA provided members with a generic definition of "Management Practice in Place", which was approved at the September 1993, Board meeting. This definition was used by members to establish their own internal guidance for implementing the 106 Management Practices contained in the six Codes. One hundred and fifty seven CMA members submitted their Code implementation timetables to the association. The information was analyzed to take into consideration the possible differences that might exist between those CMA members that were pan of the association when Responsible Care was initially adopted in 1988, and those that joined the association after the initiative was in effect The analysis shows little impact on the projected timetables. Further, the analysis shows that a majority of CMA members will meet the Board approved goal of fully implementing Responsible Care five years from when the codes were adopted, and nearly 90% of CMA member companies will reach management practice in place six years after the codes were established. CMA 063465 The actual reported percentage of CMA member companies that will achieve management practice in place for each Code by the end of 1994 through 1999 is as follows: CMA Code Implementation Schedule Code CAER Pollution Prevention Process Safety Distnbuuon Employee Health & Safety Product Stewardship Adopted by CMA Nov-89 Apr-90 Sep-90 Nov-90 Jan-92 1994* 1995 1996 1997 1998 1999 60% 80% 75% 65% 65% 50% 95% 90% 90% 90% 90% 100% 95% 100% 95% 100% 95% 100% 95% 100% Apr-92 90% 95% 100% `Percentage of existing CMA members that will achieve Code Management Practice in Place based on 157 member company responses. Pending CMA Board approval of the recommendation posed below, CMA will clarify its internal and external communications by noting that this Code Implementation Schedule could be affected by future adjustments to the initiative. For instance, adjustments to Responsible Care could result from, among other things, the association's desire to keep Responsible Care ahead of regulatory requirements. Further, as new members and partners join the association, they will be asked to submit an implementation schedule based on a five year Code implementation goal. This will result in newer CMA members following a Responsible Care implementation schedule that extends beyond the timing schedule proposed below. Recommendation: The Responsible Care Coordinating Group recommends that the CMA Board approve a Responsible Care Code Implementation Schedule for the association. This schedule will serve as a target for all CMA members in carrying out their Responsible Care implementation processes. This, in turn, will give the public the assurance that all CMA members are moving along an aggressive path towards the full implementation of Responsible Care. It will also enable the association to target its member company support to those aspects of Responsible Care that warrant the most assistance. CMA 063466 The recommended CMA Code Implementation Schedule is as follows: 90 percent of CMA member companies will implement Responsible Care by 1996, 95 percent by 1997, and, with the exception of Product Stewardship, 100 percent by 1998. One hundred percent of CMA members will implement the Product Stewardship Code by 1999. This implementation schedule does not reflect future modifications to the Codes or new members joining the association. Action Requested: Approve the Recommendation. CMA EC - 9/12/94 BD-9/13/94 CMA 063467 Exhibit B PROPOSED CMA HUMAN RESOURCE FUNCTION BACKGROUND The personnel function at CMA was developed over the years to meet the traditional trade association needs of the 1960's, 70's and 80's. It has served CMA well in its efficiency and cost effectiveness. CMA, as a top-ranking trade association, faces numerous challenges which have been frequently discussed by the Board officers.and staff as we look to the future. However, the area of human resources has not been developed as a key and innovative component of management and as a service to the various operating units of CMA. Other areas, such as communications and information services, have undergone such appraisals with positive results. One of the reasons human resources has not been looked at more closely to determine how it can provide leadership and service to CMA may be that it has not been viewed as a "problem area." It has generally carried out its assigned job and, when adjustments have been needed, they have been made. Another reason may be that there was not a clear concept of the role of human resources management in CMA's future. There was no strong advocate or spokesperson for this area at CMA and there was not a high degree of sophistication among the staff about human resources management CMA's President has reviewed the Association's human resource needs and is recommending the creation of the following discrete function. This recommendation has been endorsed by the other Board Officers. RECOMMENDATION That a Human Resources Department be created at CMA, headed by a Vice President Human Resources. The department will expand on the Association's existing personnel, benefits, training and related activities: Functioning as an integral part of the management planning process, especially when strategic planning takes place. Providing sophisticated information systems to track the activities and needs of employees. (Levels of satisfaction, turnover, career opportunities, training and development needs, etc.) These systems should be based on principles of quality, high involvement, teamwork and open access to information. CMA 063468  Shifting the traditional performance appraisal systems to "performance management" systems that are a more integral part of the work of the organization. Serving the overall organization and its various units as an internal consultant on organization and management effectiveness. The Human Resources management function should be concerned with issues such as: Career path development (Where the employees take primary responsibility for planning and managing their careers, supported by CMA's management and information systems). Employee productivity (Finding ways to help employees do more with less effort). Health and fitness issues for employees at all levels (i.e., Wellness) Continued development of a diverse work force, especially at the senior management level. Improvement of quality, as a part of or in addition to TQM. Family-oriented activities and programs such as flex-time and dependent care needs. Additional activities and responsibilities are listed in Attachment 1. RESOURCES REQUIRED The department shall function within the Association's existing headcount and overall budget. The existing personnel, benefits and related activities will be consolidated and existing resources reallocated to support the department. ACTION REQUESTED Endorsement of the recommendations. CMA EC-9/12/94 CMA 063469 VICE PRESIDENT - HUMAN RESOURCES Employment Law Diversity and EEO Succession Planning/Management Wellness Programs Career Path Development Salary Administration and Benefits Planning Recruitment and Retention Employee Opinion Surveys TQM and Matrix Management Employee Communications Training and Education Counseling and Mentoring Performance Appraisals (Alternatives) Human Resources Planning Human Resources Trends CMA EC - 9/12/94 CMA 063470 Exhibit C CHEMICAL MANUFACTURERS ASSOCIATION PROPOSAL FOR ACCEPTING ADVERTISING IN CMA NEWS BACKGROUND During recent discussions about generating non-dues income the idea of accepting advertising in CMA News was proposed. The Board gave a go-ahead to further evaluation of interest among potential advertisers. CMA hired a contractor specializing in investigating publications as advertising vehicles. The process involves surveying potential advertisers to establish interest. Given sufficient interest the publication is reconfigured to accept advertising (adding space, four-color capability, expanding publication schedule from nine to twelve months), advertising contacts are made and placement solicited. CMA News' current circulation is 11,000. The eight page newsletter communicates industry positions, policies and activities to the membership. Activities of various member companies are often used as models to demonstrate proactive industry action. Over the course of the past 10 years the budget of CMA News has been cut in half and the average number of pages published reduced from 20 to eight.. RESULTS OF THE STUDY Two surveys were conducted, one mail, one telephone. Of 120 mail survey respondents 30% indicated interest in advertising in CMA News. The majority said advertising budgets had increased or remained steady for 1994-95. Of over 100 telephone interviews (and this methodology assured surveys reached the advertising decision-makers) 63% expressed strong interest in advertising in the publication. Of those already advertising in publications targeting the chemical industry 70% said they were interested in CMA News. One of the attractions of CMA News as an advertising vehicle continues to be its high level of penetration of the plant management population. Assuming go-ahead CMA News would begin a campaign to increase circulation by 50%. OBJECTIVES FOR TAKING ADVERTISING 1. Pay for the publication. This would reduce budget requirements by $200,000. 2. Allow for expansion of the publication from 8 pages to 24. Today CMA News is \ unable to satisfy member interest in placing information in the publication due to space limitations. CMA News will continue to be an important vehicle for communicating industry positions, policies and actions. As the association reduces the flow of paper to members the newsletter has an important role to play in reaching the broader audience. CMA 063471 3. Improve the appearance of the publication. 4. Bring non-members into the funding mix. 5. Create the potential for a profit center. RESOURCES REQUIRED To accomplish the launch of a revised CMA News will require additional resources. ' o $35,000 in start-up money to cover design changes, added pages. We would shift funds to the project and generate revenues to replace those funds through advertising. o One full-time support staff. With the expansion of the editorial space, and the requirement to manage the advertising relationship, the editor of the publication will need full time assistance. We recommend authorization of a temporary support staff position to be made permanent as advertising revenues support it. ACTION REQUESTED Approve the acceptance of advertising for CMA News and the resource requirements. CMA EC-9/12/94 CMA 063472 Exhibit D CHLORINE CHEMISTRY COUNCIL CMA MEMBERSHIP REQUIREMENTS WAIVER EXTENSION Background The Chlorine Chemistry Council was approved by CMA's Executive Committee in 1992 as a CHEMSTAR Business Council. The Council conducts advocacy, outreach, product stewardship and data development activities. Membership is open to producers and users of chlorine and chlorine related products, as well as organizations and companies in interested industries. Membership Waiver Recommendation CHEMSTAR's Business Council Guidelines require that companies eligible for CMA membership apply for membership before joining a Business Council. The Council requests that the waiver of this requirement, originally authorized for one year by CMA's Board last September, be extended as described below. The Chlorine Chemistry Council offers both voting and associate membership. Producers and users of chlorine or chlorine related products are eligible to be voting members. Others meeting the general membership criteria may become associate members. The Council recommends that the requirement to first become a CMA member be waived for a period through May 31, 1995 for voting members and indefinitely for associate members. As demonstrated by the events of 1993/94 such as the proposed Executive Order on totally chlorine-free paper, "The Chlorine Zero Discharge Act of 1993", and the Administration's Clean Water Act proposals, it is essential that the Council be able to move quickly and represent as many stakeholders as possible in order to have the greatest impact on the chlorine debate. This recommendation will encourage greater membership in the Council and promote budgetary stability, without adversely affecting CMA membership recruitment and retention. ACTION REQUESTED Approve the Chlorine Chemistry Council's recommendation. CCC BD--9/11/94 CMA EC-9/12/94 CMA 063473 Exhibit E CHLORINE CHEMISTRY COUNCIL PROPOSED WAIVER OF CHEMSTAR BUSINESS COUNCIL PAYMENT PROVISIONS TO ALLOW PERIODIC PAYMENTS BACKGROUND The Chlorine Chemistry Council (CCC) is organized as a CMA CHEMSTAR Business Council operating under the Business Council Guidelines. Those guidelines appropriately require full payment of fees at the beginning of each fiscal year. However, with respect to the CCC, the total annual fees ($12.5 million) and the fees per company (exceeding for some $4 million) are so significant that the CCC has requested the flexibility to set a periodic payment schedule that would not threaten CMA's ability to meet CCC's financial obligations. RECOMMENDATION That the CHEMSTAR Business Council Guidelines requiring the full payment of fees at the beginning of each fiscal year (Section II Operations), Section F (Finances), Subsection 2 (Council Budget) be waived with respect to the CCC to allow the CCC to establish a periodic payment schedule which would still ensure CMA's ability to meet the financial obligations incurred on behalf of the CCC. Specifically, CMA will invoice CCC members for their annual fiscal year fees with 60% due June 1 and the remaining 40% due the following January 1. ACTION REQUESTED Approval of recommendation. CCC BD--9/11/94 CMA EC-9/12/94 CMA 063474 COMMITTEE APPOINTMENTS RECOMMENDATION Appoint the following individual to the following committee: CHEMTREC Board Special Committee Warren R. Needels, Exxon Chemical Americas ACTION REQUIRED Approval of recommendation. Exhibit F CMA EC-9/12/94 CMA 063475