Download 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
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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.
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Chapter 15 Outline
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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
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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.
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The Sustainability Imperative
Sustainability
Meeting the needs of the present
without compromising the ability
of future generations to meet their
own needs.
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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
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Introduction to the Natural Environment
Humans are a part of their natural environment.
The environment is extremely complex.
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Environmental Terms
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Environment
Carbon Neutral
Carrying Capacity
Entropy
Ecosystem
Niche
Cycle
Threshold
Pollution
Irreversibility
Sustainability
@
http://www.envirolink.org
Figure 15-2
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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
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Global Carbon Dioxide Emissions
Figure 15-3
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Energy
Addressing Energy Inefficiency
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Use as little energy as possible
Shift to renewable sources
• Solar
• Wind
• Hydroelectric
• Biomass forms
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Water
Degradation of Oceans and Waterways
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Municipal sewage
Industrial wastes
Urban runoff
Agricultural runoff
Atmospheric fallout
Overharvesting
Dam sedimentation
Deforestation
Overgrazing
Over-irrigation
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Biodiversity
Biodiversity
The variation of life forms inside
an ecosystem
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Land Use
Land Degradation
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Desertification
Deforestation
Overgrazing
Salinization
Alkalization
Soil acidification
Urban sprawl
Soil sealing
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Toxic Substances
Problems
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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.
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Air Pollution
Effects of Air Pollution
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Acid rain
Global warming
Smog
Depletion of the ozone layer
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Waste Management
Reduce
Re-Use
Recycle
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Waste Trends in the U.S.
Figure 15-4
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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
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Oceans and Fisheries
Watershed
An area that drains to a common
waterway.
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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.
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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
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The Role of Governments
in Environmental Issues
U.S. Government Response
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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
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International Government
Environmental Responses
International Government Response
United Nations Environmental Programme (UNEP)
Montreal Protocol
Global Waters Assessment
Global Compact
Global Reporting Initiative (GRI)
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Other Environmental Stakeholders
Environmental interest
groups include…
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Radicals
Mainstreamers
Accommodators
Ecoterrorists
Other stakeholders
include…
 Green consumers
 Green employees
 Green investors
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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
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Business Environmentalism
Responsible Environmental Stewards
 Patagonia
 3M Company
 Stonyfield Yogurt
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Business Case for Sustainability
1. The upside benefits
2. The downside risks
3. The right thing to do
Cost-Benefit Analysis
Triple Bottom Line
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Systematic Business Responses
to the Environmental Challenge
 Crisis management
 Issues management
 Stakeholder management
 Sustainability
 Strategic environmental management
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Strategic Environmental Management
Figure 15-8
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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.
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Future of Business:
Greening or Growing?
How much is enough?
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Key Terms
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Externalities
Sustainability
Carbon neutral
Environment
Climate change
Global warming
Greenhouse effect
Energy inefficiency
Biodiversity
Toxic substances
Air pollution
 Environmental Protection
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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
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Key Terms (continued)
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Acid rain
Ozone
Watershed
Deforestation
Wicked problems
Tragedy of the commons
NIMBY
Environmental Impact
Statements
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CERES Principles
Cost-benefit analysis
Triple Bottom Line
Strategic Environmental
Management
ISO 14000
Strategic Sustainable
Management
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