ENVIRONMENTAL MANAGEMENT Chapter Eleven Visit for the latest in business news stories.

Chapter 11 Learning Objectives Understand climate change and government responses to environmental problems Articulate the competitive advantages of being eco-friendly Mange the environmental change process Create an Environmental Management System plan Develop measureable environmental goals and objectives Assess environmental performance Chapter 11: Collins, Business Ethics

Environmental Trends and Climate Change Environmental Trends  Organizations not only meet the needs of consumers, but also are one of the largest consumers of the Earth’s resources  Fossil fuels are used to light and heat buildings, operate machinery, and transport products Chapter 11: Collins, Business Ethics

Environmental Trends and Climate Change Insert Exhibit 11.1 Chapter 11: Collins, Business Ethics

Environmental Trends and Climate Change Climate Change  According to the Union of Concerned Scientists, “the primary cause of global warming is from human activity, most significantly burning of fossil fuels to drive cars, generate electricity, and operate our hoes and businesses” Chapter 11: Collins, Business Ethics

Environmental Trends and Climate Change Climate Change Impacts  Altered weather patterns have increased the frequency and severity of droughts and flooding in summer, and snowstorms in winter, which damage the economy Chapter 11: Collins, Business Ethics

Environmental Trends and Climate Change Insert Exhibit 11.2 Chapter 11: Collins, Business Ethics

Environmental Organizations Social change often originates at the grassroots level where concerned citizens mobilize other citizens to take action Environmentalism has a long history in the United States, dating back to the beginning of the Industrial Revolution Chapter 11: Collins, Business Ethics

Government and Market Responses Government Regulation  The Environmental Defense Fund and the Natural Resources Defense Council, created in 1967 and 1970, focused on legal strategies to protect the environment and punish the most egregious environmental polluters Chapter 11: Collins, Business Ethics

Government and Market Responses Insert Exhibit 11.3 Chapter 11: Collins, Business Ethics

Government and Market Responses International Agreements  In 1987, President Reagan signed the Montreal Protocol, an international agreement to phase out chlorofluorocarbons that erode the ozone  The following year, the EPA launched a Toxic Release Inventory program to compile data on toxic chemicals released into the environment Chapter 11: Collins, Business Ethics

Government and Market Responses Cap and Trade and Climate Exchanges  Cap and Trade combines federal controls that limit the amount of pollution permitted with the establishment of a market in which businesses can trade licenses to pollute Chapter 11: Collins, Business Ethics

Government and Market Responses Other Efforts  Some U.S. state and city governments have signed their own versions of the Kyoto Protocol  More than 850 mayors representing 80 million citizens have signed the U.S. Conference of Mayors Climate Protection Agreement Chapter 11: Collins, Business Ethics

Competitive Advantages of Being Eco-Friendly Insert Exhibit 11.4 Chapter 11: Collins, Business Ethics

Competitive Advantages of Being Eco-Friendly Insert Exhibit 11.4 Chapter 11: Collins, Business Ethics

Going Green Examples Walmart  Walmart is now among the leading corporations to capitalize on the link between eco-friendliness and profits  Walmart has developed a sustainability website to communicate its eco-friendly plans and accomplishments to a broad audience Chapter 11: Collins, Business Ethics

Going Green Examples Green Business Parks  In 2000, the Umea business park’s occupants included a Ford Motor Company dealership, a gas station, a car wash, a convenience store, and McDonald’s  The heat generated by the McDonald’s cooking grills and the convenience store’s refrigerator system was circulated through underground pipes to other businesses, as was runoff water from the car wash Chapter 11: Collins, Business Ethics

Going Green Examples Insert Exhibit 11.5 Chapter 11: Collins, Business Ethics

Going Green Examples Insert Exhibit 11.6 (large chart!) Chapter 11: Collins, Business Ethics

Going Green Examples Insert Exhibit 11.6 (large chart!) Chapter 11: Collins, Business Ethics

Managing the Environmental Change Process Greening the organization is a concept that is well regarded by employees and relatively easy for them to rally behind Make sure employees are well informed about the organization’s environmental efforts Chapter 11: Collins, Business Ethics

Green Mission Statement Similar to a Code of Ethics, use the environmental mission statement as a foundation for determining and assessing organizational actions Chapter 11: Collins, Business Ethics

Green Suppliers Insert Exhibit 11.9 Chapter 11: Collins, Business Ethics

Environmental Management System (EMS) The EMS plan is a document that describes how the organization conducts environmental policy development, planning, implementation, monitoring and corrective actions, and management review Chapter 11: Collins, Business Ethics

Environmental Management System (EMS) Insert Exhibit Chapter 11: Collins, Business Ethics

Environmental Risk Assessment Each organization has a unique set of environmental input, throughput, and output risks Assess the environmental performance of suppliers, because they can significantly disrupt organizational operations Chapter 11: Collins, Business Ethics

Environmental Risk Assessment Insert Exhibit Chapter 11: Collins, Business Ethics

The Natural Step (TNS) Framework and Cost Reductions The TNS framework attributes the root causes of environmental problems to four issues 1. Removing too many substances from the Earth’s crust 2. Producing too many synthetic compounds that are difficult for nature to break down 3. Manipulating the ecosystem 4. Inefficiently and unfairly meeting human needs worldwide Chapter 11: Collins, Business Ethics

Product Packaging and Design All businesses operating within the European Union are now responsible for directly recovering and recycling product packaging Packaging refers to both the package immediately surrounding the product and the transportation container Chapter 11: Collins, Business Ethics

Green Buildings In the United States, buildings account for 38 percent of all carbon emissions, 72 percent of electricity use, 40 percent of raw materials use, 39 percent of energy use, 30 percent of waste output, and 14 percent of potable water consumption Chapter 11: Collins, Business Ethics

Environmental Performance Indicators and Sustainability Reporting Continuous environmental improvement entails creating historical benchmark measurements documenting previous environmental performance Chapter 11: Collins, Business Ethics

Carbon Offsets and Green Philanthropy Carbon offsets entail paying another organization to reduce greenhouse gas emissions on the company’s behalf The most common carbon offsets are investing in tree plantings and forestry projects, clean and renewable energy projects, and energy efficiency projects Chapter 11: Collins, Business Ethics