1. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-1 Business and Society POST, LAWRENCE, WEBER Ecology, Sustainable Development, and Global Business Chapter 10

2. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-2 Ecological challenges The global commons Sustainable development Protecting the environment will require economic development. Economic development must be accomplished sustainably. Threats to the Earth’s ecosystem Water resources Fossil fuels Arable land Forces of change The population explosion World poverty Industrialization The limits to growth Limits to growth hypothesis and its critics

3. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-3 Figure 10-1 World population growth Year World population (in billions)

4. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-4 Figure 10-2 Global income distribution, 1960-1994 Source: United Nations Development Program, Human Development Report 1992, 1994, and 1997, New York: Oxford University Press. Share of Global Income (%)

5. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-5 Global environmental issues Ozone depletion Chloro-fluorocarbons (CFCs) can react with and destroy ozone layer. In 1985, scientists discovered a “hole” in the ozone layer over Antarctica. In 1987, a group of nations negotiated the Montreal Protocol, agreeing to cut CFC production and use. This treaty has been strengthened several times. By 2000, most businesses in the developed world had completed the transition to CFC substitutes. If the regulations continue to be effective, the protective layer will gradually recover.

6. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-6 Global environmental issues (continued) Global warming Greenhouse effect occurs when carbon dioxide in the atmosphere prevents heat from escaping into space. The amount of greenhouse gases has increased by as much as 25 percent since the Industrial Revolution due to the burning of fossil fuels. Caused by deforestation, beef production, population growth, and CFCs. If global warming continues, the world will experience heat waves, air pollution crises, and damaging wildfires in the 21st century. Kyoto Protocol was ratified as a result of the Earth Summit in 1992 to reduce greenhouse gas emissions.

7. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-7 Global environmental issues (continued) Biodiversity Refers to the number and variety of species and the range of their genetic makeup. It is estimated that species extinction is now occurring at 100 to 1,000 times the normal, background rate, due to pollution and habitat destruction. The destruction of rain forests is a major reason for the decline. Only about half of the original tropical rain forests still stand. The pharmaceutical industry develops new medicines each year based on newly discovered plants from the tropics.

8. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-8 Causes of global warming Burning of fossil fuels This releases carbon dioxide into the atmosphere and is the leading contributor of global warming. Deforestation Trees and plants absorb carbon dioxide and remove it from the atmosphere. Thus, cutting down trees contributes to global warming. Beef production Methane is produced as a by-product of the digestion of some animals. Population growth Humans produce carbon dioxide every time they breathe. More people leads to more greenhouse gases. CFCs These gases destroy the ozone and are considered greenhouse gases as well.

9. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-9 Response of the international business community World Business Council for Sustainable Development Called for businesses to manufacture and distribute products more efficiently, consider their lifelong impact, and recycle components. Life-cycle analysis Involves collecting information on the lifelong environmental impact of a product, from extraction of raw material to ultimate disposal. Industrial ecology Refers to designing factories and distribution systems as if they were self-contained ecosystems. Design for disassembly Products are designed so that at the end of their useful life they can be disassembled and recycled.

10. © The McGraw-Hill Companies, Inc., 2002 All Rights Reserved. McGraw-Hill/ Irwin 10-10 Exhibit 10-D International codes of environmental conduct International Chamber of Commerce (ICC) Global Environmental Management Initiative (GEMI) Keidanren Chemical Manufacturers Association (CMA) CERES Principles International Organization for Standardization (ISO)