Transcript Accounting for the Environment

The Natural Environment
MGMT 491
Management Ethics in a Global
Environment
Jeffery D. Smith
Accounting for the Environment
• Is the natural environment a stakeholder?
Stakeholder: to affect or be affected by the activities
of the business organization
The environment is clearly affected by the activities of
the business organization
Why should non-humans “count” from the ethical
point of view?
Accounting for the Environment
• Is the natural environment a stakeholder?
Normative Stakeholder vs. Derivative Stakeholders
(see Phillips, Stakeholder Theory and Organizational
Ethics, 2003)
The protection of the natural environment is morally
important because it is a means to protecting the
interests of other normative stakeholders
Does this adequately account for the moral value of
the natural environment?
The moral value of the natural
environment?
I reject the proposition that we ought to respect
the “balance of nature” or to “preserve the
environment” unless the reason for doing so,
express or implied, is the benefit of man. I reject
the idea that there is a “right” or “morally correct”
state of nature to which we should return. The
word “nature” has no normative connotation.
Baxter, William. (1974). People or Penguins: The
Case for Optimal Pollution. New York: Columbia
University Press, p. 8.
The moral value of the natural
environment?
Environmental harm and resource use should be optimized so that
human interest satisfaction is maximized.
Human Interest Satisfaction
Too little resource use can thwart interest satisfaction; too much
environmental harm can lead to interest dissatisfaction.
Environmental Harm/Resource Use
The moral value of the natural
environment?
• Animals are sentient
creatures
• Species and Ecosystems
have interests
• Aesthetic
Corporate Responsibilities to the Environment
• Narrow View
Corporations only have an ethical responsibility to
comply with environmental laws. They do not have a
responsibility to avoid harm or conserve resources
beyond was is required by the law.
• Broad View
Corporations have an ethical responsibility to comply
with environmental laws and take steps to protect the
natural environment and conserve resources when it is
technologically and financially feasible to do so.
Narrow view defended…
1.
Corporations have an entitlement to sell products and services in
response to market demand.
2.
Sometimes there is market demand for environmentally harmful
products and services.
3.
Environmental protection that goes above and beyond the law
reduces the competitive position of corporations.
4.
Governments have a responsibility to protect individuals and
society from market activity that results in environmental harm by
instituting laws and regulations.
5.
Therefore, it is not the responsibility of corporations to protect the
environment from harm when it is part of legal market activity.
CIRCULAR FLOW MODEL
consumer goods and services
wages, rents, interests, profits
BUSINESS
HOUSEHOLDS
labor, land, capital, natural resources
payments
BIOSPHERE
consumer goods and services
Energy
Energy
wages, rents, interests, profits
Natural Resources
Energy
Natural Resources
Energy
BUSINESS
HOUSEHOLDS
labor, land, capital and natural resources
Waste
Waste
payments
SOLAR ENERGY
Toxicity?
Other
Halogenated compounds
Aldehydes
Ketones
Chlorodifluoromethane
chlorotrifluoromethane
dichlorodifluoromethane
chloromethane
chloroethane
trichlorofluoromethane
dichloroethylene
Freon 113
methylene chloride
chloroform
trichloroethane
carbon tetrachloride
trichloroethylene
chloropentane
dibromochloromethane
tetrachloroethylene
dichloropropene
chlorobenzene
chlorohexane
iodopentane
3-methyl-1-iodobutane
chloroethylbenzene
dibromodichloromethane
dichlorobenzene
chlorodecane
trichlorobenzene
acetaldehyde
methyl propanal
n-butanal
methyl butanal
crotonaldehyde
n-pentanal
n-hexanal
furaldehyde
n-heptanal
benzaldehyde
n-octanal
phenyl acetaldehyde
n-nonanal
methyl furaldehyde
n-decanal
n-undecanal
n-dodecanal
acetone
methyl ethyl ketone
methyl propyl ketone
methyl vinyl ketone
ethyl vinyl ketone
2-pentanone
methyl pentanone
methyl hydrofuranone
2-methyl-3-hexanone
4-heptanone
3-heptanone
2-heptanone
methyl heptanone
furyl methyl ketone
octanone
acetophenone
2-nonanone
2-decanone
alkylated lactone
phthalide
Alkanes Alkenes Alkynes
C3H8
C4H10
C5H12
C6H14
C7H16
C8H18
C9H20
C10H22
C11H24
C12H26
C13H28
C14H30
C15H32
C3H6
C4H8
C5H10
C6H12
C7H14
C8H16
C9H18
C10H20
C11H22
C12H24
C13H26
isoprene
C5H8
C6H10
C7H12
C8H14
C9H16
C10H18
C12H22
Cyclic
cyclopentane
methyl cyclopentane
cyclohexane
ethyl methyl cyclohexane
C10h14 isomers
C10h16 isomers (other)
limonene
methyl
decalin
Aromatic
à-pinene
camphene benzene
camphor toluene
ethylbenzene
xylene
phenyl acetylene
styrene
benzaldehyde
C3-alkylbenzene isomers
C4-alkylbenzene isomers
methyl styrene
dimethyl styrene
C5-alkylbenzene isomers
naphthalene
C6-alkylbenzene isomers
Oxygenated
Isomers
C4H6O
C4H8O
C5H10O
C6H8O
C6H10O
C4H6O2
C6H12O
C7H12O
C7H10O
C7H14O
C6H6O2
C8H14O2
C8H16O
C7H8O2
C7H10O2
C9H18O
C8H6O2
C10H12O2
C10H14O
C10H16O
C10H18O
C10H20O
C10H22O
C9H8O2
C11H20O
C10H10O2
Furans
furan
tetrahydrofuran
methyl furan
methyl tetrahydrofuran
ethylfuran
dimethylfuran
2-vinylfuran
furaldehyde
2-n-butylfuran
2-pentylfuran
methylfuraldehyde
furyl methyl ketone
à-furfuryl alcohol
benzofuran
Alcohols
methanol
isopropanol
2-methyl-2-propanol
n-propanol
1-butanol
1-pentanol
à-furfuryl alcohol
2-ethyl-1-hexanol phenol
2,2,4-trimethylpenta-1,3-diol
à-terpineol
Acids
acetic acid
decanoic acid
Sulfur compounds
sulfur dioxide
carbon disulfide
dimethyl disulfide
carbonyl sulfide
Nitrogen compounds
nitromethane
C5H6N2
C5H8N2
C4H4N2O
methyl acetamide
benzonitrile
methyl cinnoline
Esters
vinyl propionate
ethyl acetate
ethyl-n-caproate
isoamyl formate
methyl decanoate
ethyl decanoate
Epoxides
1,8-cineole
Esters
dimethyl ether
dihydropyran
3 Pillars of Sustainable Development
• Economic
meeting the material needs of current and future
generations (income, employment, nutrition)
• Environmental
meeting the material needs of current and future
generations without harming the ability of the biosphere
to sustain ecosystems and life
• Social
meeting the material needs of neglected, disadvantaged
or poor individuals and groups (health, education,
housing)
Natural Capitalism
Amory Lovins and Paul Hawken (1999, MayJune). A Road Map for Natural Capitalism.
Harvard Business Review, 145-58.
*Increase Productivity of Natural Resources
*Biological Models of Production
*Service-leasing Business Model
*Reinvest in Natural Capital
Interface, Inc.
• Recyclable Flooring and Fabric Innovations
• Eliminate waste through reuse and collaboration with
customers, suppliers and industry members (closed loop
production)
• Minimize energy use that is not renewable
• Compensate for environmental costs of doing business
• ISO 14001
Source: http://www.interfacesustainability.com
Source: http://www.interfacesustainability.com
Source: http://finance.yahoo.com
Ritter Sport
• 1996 Involvement with Eco-Audit Regulation
• Efficient, on-site power generation technology
(solar, geothermal, co-generation)
• Funding of recycling initiatives across Germany
• Principle: “We introduce energy-saving
measures whenever they do not increase our
operating costs by more than 10%”
• Cocoa growing initiative in Central America