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Chapter Eleven
ENVIRONMENTAL
MANAGEMENT
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 Understand climate change and
Chapter 11
Learning Objectives
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Chapter 11: Collins, Business Ethics
government responses to
environmental problems
Articulate the competitive
advantages of being eco-friendly
Mange the environmental change
process
Create an Environmental
Management System plan
Develop measureable environmental
goals and objectives
Assess environmental performance
Environmental Trends and Climate Change
 Environmental Trends
 Organizations not only meet the needs of consumers, but also
are one of the largest consumers of the Earth’s resources

Fossil fuels are used to light and heat buildings, operate
machinery, and transport products
Chapter 11: Collins, Business Ethics
Environmental Trends and Climate Change
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Chapter 11: Collins, Business Ethics
Environmental Trends and Climate Change
 Climate Change
 According to the Union of Concerned Scientists, “the primary
cause of global warming is from human activity, most
significantly burning of fossil fuels to drive cars, generate
electricity, and operate our hoes and businesses”
Chapter 11: Collins, Business Ethics
Environmental Trends and Climate Change
 Climate Change Impacts
 Altered weather patterns have increased the frequency and
severity of droughts and flooding in summer, and snowstorms
in winter, which damage the economy
Chapter 11: Collins, Business Ethics
Environmental Trends and Climate Change
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Chapter 11: Collins, Business Ethics
Environmental Organizations
 Social change often originates at the grassroots level
where concerned citizens mobilize other citizens to
take action
 Environmentalism has a long history in the United
States, dating back to the beginning of the Industrial
Revolution
Chapter 11: Collins, Business Ethics
Government and Market Responses
 Government Regulation
 The Environmental Defense Fund and the Natural Resources
Defense Council, created in 1967 and 1970, focused on legal
strategies to protect the environment and punish the most
egregious environmental polluters
Chapter 11: Collins, Business Ethics
Government and Market Responses
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Chapter 11: Collins, Business Ethics
Government and Market Responses
 International Agreements
 In 1987, President Reagan signed the Montreal Protocol, an
international agreement to phase out chlorofluorocarbons that
erode the ozone
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The following year, the EPA launched a Toxic Release
Inventory program to compile data on toxic chemicals released
into the environment
Chapter 11: Collins, Business Ethics
Government and Market Responses
 Cap and Trade and Climate Exchanges
 Cap and Trade combines federal controls that limit the amount
of pollution permitted with the establishment of a market in
which businesses can trade licenses to pollute
Chapter 11: Collins, Business Ethics
Government and Market Responses
 Other Efforts
 Some U.S. state and city governments have signed their own
versions of the Kyoto Protocol
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More than 850 mayors representing 80 million citizens have
signed the U.S. Conference of Mayors Climate Protection
Agreement
Chapter 11: Collins, Business Ethics
Competitive Advantages of Being Eco-Friendly
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Chapter 11: Collins, Business Ethics
Competitive Advantages of Being Eco-Friendly
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Chapter 11: Collins, Business Ethics
Going Green Examples
 Walmart
 Walmart is now among the leading corporations to capitalize
on the link between eco-friendliness and profits
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Walmart has developed a sustainability website to
communicate its eco-friendly plans and accomplishments to a
broad audience
Chapter 11: Collins, Business Ethics
Going Green Examples
 Green Business Parks
 In 2000, the Umea business park’s occupants included a Ford
Motor Company dealership, a gas station, a car wash, a
convenience store, and McDonald’s
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The heat generated by the McDonald’s cooking grills and the
convenience store’s refrigerator system was circulated through
underground pipes to other businesses, as was runoff water
from the car wash
Chapter 11: Collins, Business Ethics
Going Green Examples
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Chapter 11: Collins, Business Ethics
Going Green Examples
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Chapter 11: Collins, Business Ethics
Going Green Examples
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Chapter 11: Collins, Business Ethics
Managing the Environmental Change Process
 Greening the organization is a concept that is well
regarded by employees and relatively easy for them
to rally behind
 Make sure employees are well informed about the
organization’s environmental efforts
Chapter 11: Collins, Business Ethics
Green Mission Statement
 Similar to a Code of Ethics, use the environmental
mission statement as a foundation for determining
and assessing organizational actions
Chapter 11: Collins, Business Ethics
Green Suppliers
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Chapter 11: Collins, Business Ethics
Environmental Management System (EMS)
 The EMS plan is a document that describes how the
organization conducts environmental policy
development, planning, implementation, monitoring
and corrective actions, and management review
Chapter 11: Collins, Business Ethics
Environmental Management System (EMS)
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Chapter 11: Collins, Business Ethics
Environmental Risk Assessment
 Each organization has a unique set of environmental
input, throughput, and output risks
 Assess the environmental performance of suppliers,
because they can significantly disrupt organizational
operations
Chapter 11: Collins, Business Ethics
Environmental Risk Assessment
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Chapter 11: Collins, Business Ethics
The Natural Step (TNS) Framework and Cost Reductions
 The TNS framework attributes the root causes of
environmental problems to four issues
1.
2.
3.
4.
Removing too many substances from the Earth’s crust
Producing too many synthetic compounds that are difficult
for nature to break down
Manipulating the ecosystem
Inefficiently and unfairly meeting human needs worldwide
Chapter 11: Collins, Business Ethics
Product Packaging and Design
 All businesses operating within the European Union
are now responsible for directly recovering and
recycling product packaging
 Packaging refers to both the package immediately
surrounding the product and the transportation
container
Chapter 11: Collins, Business Ethics
Green Buildings
 In the United States, buildings account for 38
percent of all carbon emissions, 72 percent of
electricity use, 40 percent of raw materials use, 39
percent of energy use, 30 percent of waste output,
and 14 percent of potable water consumption
Chapter 11: Collins, Business Ethics
Environmental Performance Indicators and
Sustainability Reporting
 Continuous environmental improvement entails
creating historical benchmark measurements
documenting previous environmental performance
Chapter 11: Collins, Business Ethics
Carbon Offsets and Green Philanthropy
 Carbon offsets entail paying another organization to
reduce greenhouse gas emissions on the company’s
behalf
 The most common carbon offsets are investing in
tree plantings and forestry projects, clean and
renewable energy projects, and energy efficiency
projects
Chapter 11: Collins, Business Ethics