2. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-1 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder BA 385 - Business Environment Week 10

3. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-2 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder Agenda Chapter 14 Natural Environment as Stakeholder Current Even Presentations Guest Speaker Search the Web Valuable information for dealing with environ- mental stakeholders can be found at Enviro- Link Network’s web site: www.envirolink.orgwww.envirolink.org

4. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-3 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder Ch. 14 Overview What is the Natural Environment Impact of Business on the Environment Environmental Issues Responsibility for Environmental Issues The Role of Governments in Environmental Issues Other Environmental Stakeholders Business Environmentalism The Future of Business

5. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-4 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder Business Impact on the Environment Debate Environment vs. Jobs Pollution vs. Productivity Risk vs. Reward Fact vs. Uncertainty Known vs. Unknown Present vs. Future

6. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-5 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder Major 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

7. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-6 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder Other Environmental Issues Ambient air pollution –Acid rain Indoor air pollution Energy efficiency Light pollution Toxic substances –Long-term and interactive effects –Industrial accidents Radon pollution Noise pollution Aesthetic pollution

8. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-7 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder Responsibility Not In My Back Yard (NIMBY) Denial of root cause Symptomatic approach 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

9. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-8 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder The Role of Government “To declare a national policy which will encourage productive and enjoyable harmony between man and his environment; to promote efforts which will prevent or eliminate damage to the enviroment and biosphere and stimulate the health and welfare of man; and to enrich the understanding of the ecological systems and natural resources important to the Nation.” SOURCE: U.S. National Environmental Policy Act (NEPA), section 2. 1970

10. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-9 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder U.S. Legislation Air quality legislation: Clean Air Act –Emissions trading Water quality legislation: Clean Water Act –Marine Protection, Research and Sanctuary Act –Safe Drinking Water Act –Unregulated area - Non point source runoff 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

11. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-10 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder Environmental Interest Groups and other Stakeholders Radicals –Confrontational Mainstreamers –Pragmatic reform –Confrontation & cooperation Accommodators –Trusting –Avoid confrontation Green Consumers Green Employees Green Investors

12. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-11 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder CERES Principles Protecting of the biosphere Using and conserving natural resources on a sustainable basis Reducing and disposing of waste Conserving energy Risk reduction Using safe products and services Restoring the environment Informing the public Committing management to the environment Auditing and reporting environmental progress AKA: Valdez Principles

13. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-12 BA 385 - Business Environment 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

14. Business Environmentalism

15. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-14 BA 385 - Business Environment 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? What are the implications for global business and how can/should they respond?

16. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-15 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder Important Environmental Terms Environment Ecosystem Carrying Capacity Environmental Footprint Revewable Resource Sustainability Threshold Irreversibilty Brownfields Green Building LEED Certified

17. Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. 1-16 BA 385 - Business Environment Chapter 14 The Natural Environment as Stakeholder Guest Speaker: Mr. Randell Leach Director, Business Banking Shore Bank Pacific http://www.eco-bank.com/