Transcript Chapter 15
The Natural Environment as Stakeholder Chapter 15 Prepared by Deborah Baker Texas Christian University Business and Society: Ethics and Stakeholder Management, 7e • Carroll & Buchholtz Copyright ©2009 by South-Western, a division of Cengage Learning. All rights reserved 1 Chapter 15 Learning Outcomes 1. Discuss the concept of sustainability. 2. Describe ten major natural environment issues. 3. Describe the causes of the NIMBY environmental problem. 4. Discuss the roles that business and government play in environmental issues. 5. Explain the concept of environmental ethics. 2 Chapter 15 Outline The Sustainability Imperative A Brief Introduction to the Natural Environment Impact of Business upon the Natural Environment Natural Environmental Issues Responsibility for Environmental Issues The Role of Governments in Environmental Issues Other Environmental Stakeholders Business Environmentalism The Future of Business: Greening and / or Growing? Summary Key Terms Discussion Questions 3 Chapter 15 Introduction This chapter introduces the concept of sustainability and its importance to business. A discussion of top environmental issues and ethics leads to an exploration of the role of government, environmental interest groups, and businesses on developing environmental strategy. 4 The Sustainability Imperative Sustainability Meeting the needs of the present without compromising the ability of future generations to meet their own needs. 5 Six Principles of Sustainable Success 1. Your business is part of a much larger system. 2. The culture of your business is determined by the context you create for it. 3. The soul of a business is found in the hearts of its people. 4. True power is living what you know. 5. You can’t predict the future, but you can create it. 6. There is a way to make an idea’s time come. Figure 15-1 6 Introduction to the Natural Environment Humans are a part of their natural environment. The environment is extremely complex. 7 Environmental Terms Environment Carbon Neutral Carrying Capacity Entropy Ecosystem Niche Cycle Threshold Pollution Irreversibility Sustainability @ http://www.envirolink.org Figure 15-2 8 Top Ten List of Environmental Issues 1. Climate Change 2. Energy 3. Water 4. Biodiversity and Land Use 5. Chemicals, Toxics, and Heavy Metals 6. Air Pollution 7. Waste Management 8. Ozone Layer Depletion 9. Oceans and Fisheries 10.Deforestation 9 Global Carbon Dioxide Emissions Figure 15-3 10 Energy Addressing Energy Inefficiency • • Use as little energy as possible Shift to renewable sources • Solar • Wind • Hydroelectric • Biomass forms 11 Water Degradation of Oceans and Waterways • • • • • • • • • • Municipal sewage Industrial wastes Urban runoff Agricultural runoff Atmospheric fallout Overharvesting Dam sedimentation Deforestation Overgrazing Over-irrigation 12 12 Biodiversity Biodiversity The variation of life forms inside an ecosystem 13 Land Use Land Degradation • • • • • • • • Desertification Deforestation Overgrazing Salinization Alkalization Soil acidification Urban sprawl Soil sealing 14 Toxic Substances Problems 1. We are not aware of the effects of exposure to chemicals produced each year. 2. Toxic substances can be associated with industrial accidents, causing widespread biological damage. 15 Air Pollution Effects of Air Pollution • • • • Acid rain Global warming Smog Depletion of the ozone layer 16 Waste Management Reduce Re-Use Recycle 17 Waste Trends in the U.S. Figure 15-4 18 Ozone Depletion Ozone Depletion The decrease in the ozone layer that blocks dangerous ultraviolet radiation from the sun. @ Ozone Watch http://ozonewatch.gsfc.nasa.gov/index.html 19 Oceans and Fisheries Watershed An area that drains to a common waterway. 20 Responsibility for Environmental Issues Tragedy of the Commons Constraints must be placed on the use of the commons (i.e., our environment) because in the absence of constraints, self-interest is likely to lead individuals and organizations to behave in ways that will not sustain our shared resources. 21 The NIMBY Problem “Not in my Back Yard” NIMBY NIMBY is the human denial of responsibility for misuse of the environment Entities causing environmental pollution are not identified as the sources of the problem NIMBY avoids or denies the root cause of the damage 22 The Role of Governments in Environmental Issues U.S. Government Response National Environmental Policy Act (NEPA) Environmental Protection Agency (EPA) Air quality legislation Water quality legislation Land-related legislation Endangered species protection @ http://www.epa.gov 23 International Government Environmental Responses International Government Response United Nations Environmental Programme (UNEP) Montreal Protocol Global Waters Assessment Global Compact Global Reporting Initiative (GRI) 24 Other Environmental Stakeholders Environmental interest groups include… Radicals Mainstreamers Accommodators Ecoterrorists Other stakeholders include… Green consumers Green employees Green investors 25 CERES Principles 1. Protection of the biosphere 2. Sustainable use of natural resources 3. Reduction and disposal of waste 4. Energy conservation 5. Risk reduction 6. Safe products and services 7. Environmental restoration 8. Informing the public 9. Management commitment 10. Audits and reports Figure 15-7 @ http://www.ceres.org 26 Business Environmentalism Responsible Environmental Stewards Patagonia 3M Company Stonyfield Yogurt 27 Business Case for Sustainability 1. The upside benefits 2. The downside risks 3. The right thing to do Cost-Benefit Analysis Triple Bottom Line 28 Systematic Business Responses to the Environmental Challenge Crisis management Issues management Stakeholder management Sustainability Strategic environmental management 29 Strategic Environmental Management Figure 15-8 30 Strategic Environmental Management ISO 14000 The international management standard, which includes organizational environmental objectives, issues, policies, systems, and documentation aimed at continual improvement of environmental performance. 31 Future of Business: Greening or Growing? How much is enough? 32 Key Terms Externalities Sustainability Carbon neutral Environment Climate change Global warming Greenhouse effect Energy inefficiency Biodiversity Toxic substances Air pollution Environmental Protection Agency (EPA) Clean air act Emissions trading Clean water act Toxic substances control act Superfund Endangered Species Act Montreal Protocol Global compact Global reporting initiative Ecoterrorists 33 Key Terms (continued) Acid rain Ozone Watershed Deforestation Wicked problems Tragedy of the commons NIMBY Environmental Impact Statements CERES Principles Cost-benefit analysis Triple Bottom Line Strategic Environmental Management ISO 14000 Strategic Sustainable Management 34