Corporate Environmental Management

Environmental Issues The Litany Global Problems Regional Problems Global Warming - Warmest Years on Record Ozone Depletion - Big Hole in Atmosphere Species Decimation Regional Problems Deforestation Acid Rain Water Pollution Local Problems Pesticides - Hazardous Materials Waste Disposal

Basic Philosophical Elements and Issues of the Environment Are these concerns realistic? Are some more realistic than others? How serious are they? What are some example implications for business? For these problems?

The Master Equation EI = Population x x GDP EI Person unit of per capita GDP EI = Environmental Impact GDP = Gross Domestic Product Population = Population Concerns GDP/PERSON = Affluence Concerns EI/Unit of Per Capita GDP = Technological Concerns What Alternatives Exist to Manage EI Here? What is focus of New Economy? What does Garrett Hardin think?

Tragedy of the Commons What are the commons? What is the “tragedy”? How does it work with the economic principles? What are Hardin’s solutions? Do you agree? Will they work?

Environmental Consciousness What is man’s role with nature? Religion? Dualistic? What is meant by take dominion over nature? Nature exists to serve humans anthropomorphic view is environment in “profit” equation? In calculation of “national” accounts?

Stages of Environmental Concern Conservation Use resources wisely - nature’s utility is in its service to humans Preservation Leave certain areas alone - nature has intrinsic value Protection pollution control - protect humans Sustainability global perspective, “sustainable growth” and equity.

Environmental Ethics and Business Western Society - Objectifies Nature Locke - “Something in a state of nature has no economic value and is of no utility to the human race” Ethics - a concern with actions and practices directed to improving the welfare of people. What are the environmental implications of this philosophy?

Economic Fundamentalism and Ethics The corporate social responsibility of a business is to increase profit. - M. Friedman Those things that cannot be traded on the market have no value. Where does the environment fit in these definitions for environmental ethics? Will people and corporations do environmentally responsible things on their own? What happens if they do?

Corporate Social Responsibility What is it? Corporations have responsibilities that go beyond production of goods and services for profit; These responsibilities involve helping to solve important social problems especially those they helped create Corporations have a broader constituency than stockholders alone, i.e. stakeholders Corporations have impacts on society that go beyond simple market transactions Corporations serve a wider range of human values than can be captured by economic values

CSR By doing socially responsible things, businesses better human life. Supposedly ..good ethics is good business. Is this true? Is enlightened self interest a good way to push this?

CSR theories Stakeholder theory Normative theory is the standard ethical theories and applying them to business. Social values should guide businesses. Environmental Limitation? Social Contract Theory - A contract should exist between business and society.

Incorporating Environment into Business Ethics Environmental Ethics is a starting point. What are Leopolds’ arguments? What is the difficulty in doing this? What does the Biocentric ethic say (Goodpaster?) Biocentrism Natural objects have intrinsic value and morally considerable in their own right. Deep Ecology nature has an ethical status at least equal to humans.

Management starting to think in this perspective? Ecocentricism views industrial relationships in a cycle, and a whole set of philosophies. Expanded stakeholder theory – Sustaincentric - going beyond sustainability of “development that meets the needs of the present without compromising the ability of future generations to meet their needs. Human and economic relationships inextricably linked with natural systems.