Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder 1 The Natural Environment As Stakeholder Search the Web Valuable information for dealing with environ- mental stakeholders can be found at Enviro- Link Network’s web site:

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder 2 Chapter Fourteen Objectives Discuss why natural environmental issues are complex Describe the eight major natural environment issues Describe the causes of the NIMBY environmental problem Discuss the roles that business and government play in environmental issues Explain the concept of environmental ethics

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Chapter Fourteen Outline Brief Introduction to the Natural Environment Impact of Business on 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 Summary

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Introduction to Chapter Fourteen Environment Carrying Capacity Entropy Ecosystem Niche Cycle Threshold Pollution Irreversibilty Sustainability Important Environmental Terms

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Business Impact on the Environment Debate Pollution vs. productivity

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Eight Environmental Issues Ozone depletion Global warming Solid and hazardous wastes Fresh water quantity and quality Degradation of marine environments Deforestation Land degradation Endangerment of biological diversity

Eight Environmental Issues

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Other Environmental Issues Ambient air pollution –Acid rain Indoor air pollution Energy efficiency Toxic substances –Long-term and interactive effects –Industrial accidents Radon pollution Noise pollution Atheistic pollution

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Other Environmental Issues PollutantsHealth Concerns OzoneRespiratory tract and lung problems ParticulatesEye and throat irritation, lung damage Carbon monoxideEffects on cardiovascular and nervous pulmonary systems Silver dioxideRespiratory tract problems LeadBrain damage—especially in children Nitrogen dioxideRespiratory illness and lung damage Health Effects of Several Air Pollutants

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Responsibility for Environmental Issues Not In My Back Yard (NIMBY) Environmental ethics –Green values Life on earth should continue Human life on earth should continue Natural justice should be done by all Nonmaterial qualities of life are worth pursuing –Other ethical theories

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder The Role of Governments in Environmental Issues U. S. Government Response National Environmental Policy Act (NEPA) – Policy goals –Environmental Impact Statements (EIS) Environmental Protection Agency (EPA) Air quality legislation –Clean Air Act Emissions trading and the bubble concept

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder The Role of Governments in Environmental Issues U. S. Government Response Water quality legislation –Clean Water Act –Marine Protection, Research and Sanctuary Act –Safe Drinking Water Act –Unregulated area Nonpoint source runoff

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder The Role of Governments in Environmental Issues U. S. Government Response Land-related legislation –Solid Waste Disposal Act –Resource Conservation and Recovery Act –Toxic Substances Control Act –Comprehensive Environmental Response, Compensation and Liability Act (CERCLA ) –Emergency Planning and Community Right-to- Know Act

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder The Role of Governments in Environmental Issues U. S. Government Response Endangered Species Act (ESA) Role of the president in environmental regulation

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder The Role of Governments in Environmental Issues International Government Responses United Nations Environmental Programme (UNEP) –Montreal Protocol –Global Waters Assessment –Rotterdam Convention

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Other Environmental Stakeholders Environmental interest groups include Radicals Mainstreamers Accommodators

Other Environmental Stakeholders

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Other Environmental Stakeholders Green consumers Green employees Green investors

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Other Environmental Stakeholders Protecting of the biosphere Using and conserving natural resources on a sustainable basis Reducing and disposing of waste Conserving energy Reducing reduction Using safe products and services Restoring the environment Informing the public Committing management to the environment Auditing and reporting environmental progress CERES Principles

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Business Environmentalism Corporate examples Environmental and financial performance Systematic business responses to environmental challenges: –Generic management decision-making tools –Cost-benefit analysis –Risk management –Strategic environmental mangement

Business Environmentalism

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Future of Business: Greening or Growing? Two Important Questions Can the earth support a high consumption Western lifestyle? If not, what are the implications for business and how can business respond?

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Acid rain Air pollution CERES Principles Clean Water Act Cost-benefit analysis Deforestation Emissions trading Endangered Species Act Energy inefficiency Environment Environmental Impact Statements Environmental Protection Agency (EPA) Selected Key Terms

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved Chapter 14 The Natural Environment as Stakeholder Selected Key Terms Green values Greenhouse effect ISA Montreal Protocol Not in My Back Yard (NIMBY) Ozone Risk management Soil erosion Strategic Environmental Management (SEM) Superfund Toxic substances Toxic substances Control Act