© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 11-1 Business and Society POST, LAWRENCE, WEBER Managing Environmental Issues Chapter 11

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 11-2 Figure 11-1a Leading U.S. environmental protection laws

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 11-3 Figure 11-1b Leading U.S. environmental protection laws

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 11-4 Superfund Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Passed in 1980, this law established a fund, supported primarily by a tax on petroleum and chemical companies that were presumed to have created a disproportionate share of toxic wastes. EPA established National Priority List of toxic sites. A public policy failure since only less than one-fifth of the sites were cleaned up by Entire cleanup could cost as much as $1 trillion.

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 11-5 Figure 11-2a Advantages and disadvantages of alternative policy approaches to reducing pollution

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 11-6 Figure 11-2b Advantages and disadvantages of alternative policy approaches to reducing pollution

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 11-7 Figure 11-3 The cost of pollution control in the United States

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 11-8 Figure 11-4 Costs and benefits of environmental regulation  $160 billion a year spent by business and individuals in the United States by  Job loss in some particularly polluting industries.  Competitiveness of some capital-intensive, “dirty” industries impaired.  Emissions of nearly all pollutants have dropped since  Air and water quality improved, some toxic waste sites cleaned; improved health; natural beauty preserved or enhanced.  Growth of other industries, such as environmental products and services, tourism, and fishing. CostsBenefits

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 11-9 Figure 11-5a A five-stage model of corporate environmental responsibility Source: Adapted from Christopher B. Hunt and ellen R. Auster, “Proactive Environmental Management: Avoiding the Toxic Trap,” Sloan Management Review Winter 1990, pp

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin Elements of effective environmental management Top managers with environmental responsibilities Dialogue with stakeholders Line manager involvement Codes of environmental conduct Cross-functional teams Rewards and incentives Environmental audits Interorganizational alliances Environmental partnerships

© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin Environmental management as a competitive advantage Cost savings Product differentiation Technological innovation Strategic planning Environmental management as a competitive advantage