2. 10/17/11ESPP-78 2 Institu- tion Level State Business and Industry NGOs (civil society) Local/ Regional Land use SIPs (air) Agenda 21 Sponsorships e.g., highway adoption NIMBY National Regulation Information Trading Technology e.g., Walmart CFL bulbs Participation Partnerships Media use Supra- national Treaties Global Compact Green labels Seal hunts Sweatshops

3. 10/17/11ESPP-78 3 Government Civil Society Private Sector Regulatory Economic Cultural Political Legal Cultural ??????

4.  Should firms protect the environment beyond their legal responsibilities?  Argument from business; argument from politics  Can they practically do so, and if so by what means?  A look at some corporate promises  Do they in fact behave in this way and, if not, how can they be encouraged or constrained to do so?  Global Compact as one answer 10/17/11ESPP-78 4

5.  Author of concept: John Elkington (1994)  Idea: Bottom lines should include three kinds of impacts  Economic: profit (for shareholders)  Social: people (for stakeholders)  Environmental: planet (for humanity)  Assumption: Maximizing on all three is possible and desirable 10/17/11ESPP-78 5

6.  When are corporations accountable to consumers?  rarely at the stage of product or process development  primarily through pricing, which does not question purposes or social impacts of products  under conditions of economic inequality  usually without formal process  often ex post facto (via litigation after injury) 10/17/11ESPP-78 6

7.  Wal-Mart  Environment: At Walmart, we know that being an efficient and profitable business and being a good steward of the environment are goals that can work together.  McDonald’s  Global Environmental Commitment: We are committed to taking a “total life cycle” approach to solid waste…. In doing so, we will follow three courses of action: reduce, reuse and recycle.  DuPont  Safety, Health and Environment: Creating shareholder and societal value…while reducing our footprint throughout the value chain.  Monsanto  The Monsanto Pledge: A new pledge was developed to help fulfill the company’s promise for sustainable agriculture. This new pledge is made up of the following five elements – dialogue, transparency, sharing, sharing in benefits, and respect. 10/17/11ESPP-78 7

8.  Wal-Mart Former CEO Lee Scott on Sustainability Q: How does this environmental commitment fit into Wal-Mart's mission as a company? A: We've built our business on improving the quality of life for our customers, associates, suppliers, and their communities. And we have innovated all the way down and up our value chain to increase the value we offer and to grow our business. Our environmental commitments fit perfectly into this model. In fact, innovation is essential if we are going to make good on our commitment to improve the quality of life for customers and people around the world. Like other innovations that have defined our business, empowering our people and trusting them with responsibility are key to our success. 10/17/11ESPP-78 8

9.  For two decades, CFLs lacked precisely what we expect from lightbulbs: strong, unwavering light; quiet; not to mention shapes that actually fit in the places we use bulbs. Now every one of those problems has been conquered. The bulbs come on quickly; their light is bright, white, steady, and silent; and the old U- shaped tubes--they looked like bulbs from a World War II submarine--have mostly been replaced by the swirl. Since 1985, CFLs have changed as much as cell phones and portable music players. C. Fishman, Dec.19, 2007 10/17/11ESPP-78 9

10.  Non-transparent objectives  Where did Wal-Mart’s CFL initiative come from?  Weakening deliberative democracy - role of citizens?  Devaluing public interest - lower value of life, of resources?  Lack of accountability  Conflict of interests  Disparate global standards (“economic imperialism”)  Claims without substance (“greenwashing”)  Science for hire (e.g., “tobacco science”) 10/17/11ESPP-78 10

11.  What is it?  Not a regulatory policy or code of conduct  Value-based platform with 9 principles (human rights, labor, environment)  Companies voluntarily commit to participate  Agree to publicly post steps taken to comply with principles (www.unglobalcompact.org)  Uses power of transparency  Disseminates learning and good practices 10/17/11ESPP-78 11

12.  The Secretary-General asked world business to:  Principle 7: support a precautionary approach to environmental challenges;  Principle 8: undertake initiatives to promote greater environmental responsibility; and  Principle 9: encourage the development and diffusion of environmentally friendly technologies. 10/17/11ESPP-78 12

13.  Objectives  Getting beyond risk regulation to goals of technology  Agenda setting  Upstreaming of public inputs  Science  Reforming intellectual property rules  Transparency  “Engaging” publics in environmental accounting 10/17/11ESPP-78 13