14 Environment Chp 14 (Mar 24).ppt

Transcript 14 Environment Chp 14 (Mar 24).ppt

Canadian Business and Society: Ethics & Responsibilities Chapter Fourteen

Chapter Outline

          Defining Environmental Ethic and Sustainable Development Environmental Concerns in Business and Society Government’s Influence Environmental NGO Influence Market-Driven Environmentalism Managing Responses to Environmental Concerns The “Greening” of Business Functions Measuring and Reporting on Environmental Sustainability Dissenting Views on the Environment The Environment: Corporate Opportunities and Threats Copyright © 2008 McGraw-Hill Ryerson Ltd. Chapter 14 2

Defining Environmental Ethic 

Environmental ethic

: the set of values or principles that govern a corporation’s practices relating to the environment.

Defining

Sustainable Development 

Sustainable development

: development ensuring that the use of resources and the impact on the environment today does not damage prospects for the use of resources or the environment by future generations.

Environmental Concerns in Business and Society  Acid rain  Air pollution  Ecosystems  Energy production and consumption  Nature and wildlife  Ozone  Pollution  Waste management  Water quality  Climate change/ global warming Copyright © 2008 McGraw-Hill Ryerson Ltd. Chapter 14 5

Government’s Influence

 Government departments and agencies:  Environment Canada  Canadian Council of Ministers of Environment  National Roundtable of the Environment and the Economy  Canadian Environmental Assessment Act Agency  Regulation: 

Canadian Environmental Protection Act

Canadian Environmental Assessment Act

Environmental NGO Influence

 Environmental non-governmental organizations (ENGOs): groups that hold

shared values

or attitudes about the challenges confronting the natural environment and

advocate for changes

to improve the condition of the environment.

 Such groups (e.g., Greenpeace) influence corporations through protests, blockades, boycotts, and annual shareholder meetings.

Difference between Standard and Market Environmentalism

(Table 14.2)

Factors

Economic Growth Free Trade Property Rights vs. Regulation

Standard Market

Destructive 1. Higher enviro. quality 2. Innovation Part of the problem Increases competition for good enviro. practices Govn’t will protect Ownership creates stewardship Copyright © 2008 McGraw-Hill Ryerson Ltd. Chapter 14 8

Market-Driven Environmentalism 

Emissions trading

: A system whereby corporations set targets for greenhouse gas reduction; if one corporation cannot meet the target, it purchases credits from those that have met their targets.



Offsets

: Credits purchased from other corporations or organizations to mitigate greenhouse gases released into the environment.

Managing Responses to Environmental Concerns  Token response (e.g., ‘greenwashing’)  Compliance with laws and regulations  Comprehensive environmental management (gaining a competitive advantage)  Sustainable development Copyright © 2008 McGraw-Hill Ryerson Ltd. Chapter 14 10

The “Greening” of Business Functions 

Financial management



Marketing (e.g., green marketing)



Human resources



Production

Measuring and Reporting on Environmental Sustainability  Type and amount of materials used  Source of energy and efficiency of use  Source and quality of water  Impact on biodiversity  Reduction of emissions, effluents, and waste  Product design that minimizes impact  Compliance with environmental laws  Use of efficient transportation Source: GRI, 2006 Copyright © 2008 McGraw-Hill Ryerson Ltd. Chapter 14 12

Measuring and Reporting on Environmental Sustainability  Coalition for Environmentally Responsible Economies (CERES)  International Organization for Standardization ISO 14000  International Institute for Sustainable Development (IISD)  Canadian Sustainability Indicators Network (CSIN)  Environmental and Sustainable Development Indicators Initiative (ESDI) Copyright © 2008 McGraw-Hill Ryerson Ltd. Chapter 14 13

Dissenting Views on the Environment  According to some business journalists:  Concept difficult to define and understand  Means stopping or constraining economic development  Implies capitalism is unsustainable  Lacks understanding of markets  Executives are being misled Copyright © 2008 McGraw-Hill Ryerson Ltd. Chapter 14 14

The Environment: Corporate Opportunities  Reputations likely enhanced  Customers attracted  Investors attracted  Costs reduced through recycling/conservation  More competent staff attracted  Better integration with local community  New technologies or expertise developed  More efficient ways of producing products found Copyright © 2008 McGraw-Hill Ryerson Ltd. Chapter 14 15

The Environment: Corporate Threats  Corporate image may deteriorate  Revenues may suffer if customers are lost  Investors may decide not to invest  Material and production costs may increase  Financial penalties increasing  Insurance premiums can increase  Potential alienation from local community  Government may enact stricter legislation Copyright © 2008 McGraw-Hill Ryerson Ltd. Chapter 14 16