1. © 2014 Routledge, Inc., Taylor and Francis Group. All rights reserved. PowerPoint Presentation Design by Charlie Cook CHAPTER 12 Global Technology, the Natural Environment, and Sustainability © Routledge

2. Learning Outcomes After studying this chapter, you should be able to: 1.Describe the relationship between technology and productivity and the difference between production and productivity 2.Explain how the winner takes most of the market share 3.Discuss issues of managing technology 4.Describe issues of biotechnology and bioethics 5.Compare and contrast ozone depletion, global warming, and the endangerment of biological diversity 6.Discuss the major environmental laws and regulations 7.Compare sustainability concepts 8.Define the key terms in this chapter

3. © Routledge Technology and Business Is a performance measure relating product and service outputs to resource inputs ProductivityProductivity Is the process of transforming resources into products through the application of science to business TechnologyTechnology = 10 miles per gallon (mpg) Output Input = Productivity 1,000 miles traveled 100 gallons of gas

4. © Routledge Technology Effects Environmental pollution Depletion of natural resources Loss of jobs through automation Side Effects of Technology

5. © Routledge Information Technology and Business Involves transacting business through the Internet—P2P, B2E, B2B, B2C, C2C Involves transacting business through a mobile device E-commerceE-commerce M-commerceM-commerce Is the ability to process, store, and retrieve large amounts of information at great speeds through networks of linked systems Information technology Interact with each other through a firm’s website Online Communities

6. © Routledge Winner-Take-Most Markets Competitive Advantage in the Market Setting industry standards Achieving economies of scale Creating first-mover advantage

7. Genetic engineering—stem cells and cloningGenetic engineering—stem cells and cloning Genetically modified foodsGenetically modified foods BioethicsBioethics Genetic engineering—stem cells and cloningGenetic engineering—stem cells and cloning Genetically modified foodsGenetically modified foods BioethicsBioethics Personal informationPersonal information Identity theftIdentity theft Chief information and privacy officersChief information and privacy officers Privacy policiesPrivacy policies Federal Trade Commission (FTC)Federal Trade Commission (FTC) Privacy vs. monitoring employeesPrivacy vs. monitoring employees Personal informationPersonal information Identity theftIdentity theft Chief information and privacy officersChief information and privacy officers Privacy policiesPrivacy policies Federal Trade Commission (FTC)Federal Trade Commission (FTC) Privacy vs. monitoring employeesPrivacy vs. monitoring employees © Routledge Ethical Issues In Managing Technology Privacy and Information Security BiotechnologyBiotechnology

8. © Routledge Figure 12.3Bioethics Resources American Society for Bioethics & Humanities (www.asbh.org) Bioethics.net (www.bioethics.net) Bioethics Research Library (http://bioethics.georgetown.edu) Biotechnology Industry Organization (www.bio.org) Council for Responsible Genetics (www.gene-watch.org) GE Food Alert Campaign Center (www.gefoodalert.org) National Human Genome Research Institute (www.genome.gov) NIH Bioethics Resources on the Web (http://bioethics.od.nih.gov)

9. © Routledge Business Impact on the Natural Environment Natural Environmental Issues Land degradation DeforestationDeforestation Marine environment pollution Freshwater pollution PollutionPollution Ozone depletion Global warming Endangerment of biological diversity Solid and hazardous wastes

10. © Routledge Environmental Responsibility Issues NIMBY (“Not in my back yard”) Societal interest groups Green business interest groups Other stakeholders Environmental ethics

11. © Routledge Environmental Protection Regulations and Laws Command-and-controlCommand-and-control Approaches to controlling pollution Government regulation National Environmental Policy Act (NEPA) Incentive systems Environmental Protection Agency (EPA)

12. © Routledge Figure 12.6EPA Criteria Pollutants 1.Carbon monoxide (primarily from vehicle emissions) 2.Nitrogen dioxide (primarily from vehicle exhaust and fuel combustion in industry) 3.Sulfur dioxide (primarily from electric utilities burning coal and oil—contributes to acid rain and particle pollution) 4.Ozone (primarily from vehicle emissions and industry) 5.Particulates (primarily from industry—the dust particles are commonly raised by vehicle travel and the wind, and they are the greatest health risk) 6.Lead (primarily in areas around lead processing, such as lead smelters and battery plants)

13. © Routledge Environmental Laws: Air, Water, and Land Sets broad environmental quality goals and an implementation system for the federal and state governments Gives regional, state, and local governments the main responsibility for nontoxic waste management Clean Water Act Solid Waste Disposal Act Requires the EPA to set national standards that limit pollution harmful to people and the environment without regard for the cost Clean Air Act

14. © Routledge Environmental Laws: Air, Water, and Land Created a federal system for the responsibility of hazardous waste Provides guidelines, training, and incentives for companies to reduce pollution Resource Conservation and Recovery Act Pollution Prevention Act Specifies maximum permissible discharge levels and timetables for installing state-of- the-art water-pollution control equipment National Polluant Discharge Elimination System (NPDES)

15. © Routledge Costs and Benefits of Environmental Regulation Costs Reduced capital investment Lost jobs Lower productivity Costs Reduced capital investment Lost jobs Lower productivity Benefits Quality of life Environmental services Nonquantifiable benefits Benefits

16. © Routledge Sustainability Is meeting the needs of today without sacrificing future generations’ ability to meet their needs SustainabilitySustainability Balances the need for economic growth with the need to maintain our natural environment Sustainable development

17. Business Nonmarket and Market Environmental Strategies Information StrategiesInformation Strategies  Clearly explain new technology by providing reliable factual information Societal StrategiesSocietal Strategies  Build coalitions to help develop and gain support for new tech products  Publish corporate social performance reports to garner positive community public sentiment Political and Legal StrategiesPolitical and Legal Strategies  Protect products with patents  Gain public support by raising awareness of benefits © Routledge

18. Environmental Strategies RevenuesRevenues  Drive revenues by designing and marketing products that are environmentally superior and meet customers’ desires. Cost ReductionCost Reduction  Cut operational costs and environmental expenses such as waste handling and regulatory burdens throughout value chain. RisksRisks  Identify and reduce environmental and regulatory risks in the operations, especially in the supply chains to avoid costs and increase speed to the market. IntangiblesIntangibles  Create intangible brand value by marketing corporate greenness. © Routledge

19. Key Terms biodiversitybioethicsbiotechnology chief information officers (CIOs) Clean Air Act Clean Water Act e-commerce greenhouse effect information technology m-commerce National Pollutant Elimination Discharge System (NPDES) online communities ozonepollution Pollution Prevention Act productivity Resource Conservation and Recovery Act Solid Waste Disposal Act sustainability sustainable development technology