1. Chapter 14-1 Chapter 14 BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e Business and Society: Ethics and Stakeholder Management, 6e Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Prepared by Deborah Baker Texas Christian University  THE NATURAL ENVIRONMENT as STAKEHOLDER

2. Chapter 14-2 Environmental Sustainability  The ability to exist & flourish over a long period of time. Threatened by business  waste accumulation, pollution & resource depletion

3. Chapter 14-3 Business Impact on the Environment http://www.envirolink.org @

4. Chapter 14-4 Environmental Issues  Ozone depletion  Global warming (“Greenhouse Effect”)  Solid & hazardous wastes  Fresh water quantity & quality  Degradation of marine environments  Deforestation  Land degradation  Endangerment of biological diversity

5. Chapter 14-5 Trends in Municipal Solid Waste Generation

6. Chapter 14-6 Increase in Recycling Rate 1960-2001

7. Chapter 14-7 Other Environmental Issues  Ambient air pollution  Acid rain  Indoor air pollution  Energy inefficiency  Toxic substances  Industrial accidents  Radon pollution  Noise pollution  Aesthetic pollution

8. Chapter 14-8 “Not in my Back Yard” NIMBY  The human denial of responsibility for misuse of the environment  Entities causing pollution are not identified as the sources of the problem, & do not take action to correct the problem  An attitude of avoidance.

9. Chapter 14-9 Ethical Dilemma  Humans must consume some plants & animals, pollute & destroy some of nature to survive  How much degradation is ethical?  Values are not enough, we need Governmental control

10. Chapter 14-10 Role of Government  National Environmental Policy Act (NEPA)  Goals: Promote harmony between man & E., prevent damage to the E., increase man’s understanding of ecology/ natural resources  Environmental Impact Statement (EIS): Report of studies estimating E. impact of “questionable” activities & alternatives to those practices. »Who is required to prepare these?  Environmental Protection Agency (EPA)  Research pollution problems  Give aid to state/ local governmental agencies enforcing laws  Administer federal laws. http://www.epa.govhttp://members.aol.com/LewisDaveL/Index.htm @

11. Chapter 14-11 Endangered Species Act Air quality legislation  Clean Air Act Emissions trading- “Bubble Concept” Land related legislation  Superfund (CERCLA) Effort to clean up hazardous waste dumps & spills Funded by taxes on chemicals & petroleum Water quality legislation  Clean Water Act - achieve water quality to protect fish & make water recreation safe by eliminating discharge of pollutants into waters.

12. Chapter 14-12 International Government Response United Nations Environmental Programme (UNEP)  Montreal Protocol (1987) –Worldwide agreement to reduce CFCs  Global Waters Assessment –To develop policies on international waters  Rotterdam Convention –Countries must give consent for hazardous wastes to cross their borders.

13. Chapter 14-13 Kyoto Protocol  Agreement to reduce emissions by 7% from 1990 level by 2012 to reduce global warming.  U.S. has not adopted it yet.

14. Chapter 14-14 Environmental Stakeholders Interest groups …  Accommodators (World Wildlife Fund)  Mainstreamers (Sierra Club)  Radicals (Rainforest Action Network)  Ecoterrorists (Earth Liberation Front)  Green consumers What type of people?  Green employees  Green investors

15. Chapter 14-15 Business Environmentalism -Environmental management  Corporate examples  What are they doing?  How does it affect the bottom line?  Making environmental policy decisions: Cost-benefit analysis  hard to measure costs & benefits »What’s the cost of an extinct species? »What’s the benefit of a wilderness area? Companies are adopting the Triple Bottom Line »Profit, society & environment  Strategic environmental management- SKIP

16. Chapter 14-16 Future of Business TWO PRESSING QUESTIONS Can the earth support a high- consumption Western lifestyle? If not, what are the implications for business & how should business respond?