13.1: Business, It's Stakeholders, and the Natural Environment

Question 1

What is the primary focus of LO 13.1 in business ethics?

Answer 1

The relationship between business, its stakeholders, and the natural environment, including planning, organizing, leading, and controlling environmental issues

Question 2

What are the ethical issues and responsibilities for shareholders regarding the environment?

Answer 2

Investment decisions influenced by environmental handling.

Risks associated with environmental problems or disasters.

Establishing “green” investment criteria.

Question 3

What environmental responsibilities do directors have?

Answer 3

Getting environmental issues on the board agenda.

Liability for environmental contamination.

Motivating management to address environmental issues.

Question 4

What are the key environmental concerns for employees?

Answer 4

Workplace exposure to environmental problems (e.g., indoor air pollution).

Refusal to perform environmentally harmful tasks.

Whistleblowing on employer misconduct.

Question 5

What ethical challenges do customers/consumers face regarding the environment?

Answer 5

Inconsistencies between environmental concerns and consuming environmentally unfriendly products.

Unwillingness to pay higher prices for eco-friendly products.

Evaluating the viability of “green” products.

Question 6

What environmental responsibilities do lenders/creditors have?

Answer 6

Assessing increased financial risks due to environmental factors.

Question 7

What are the environmental expectations for suppliers?

Answer 7

Responding to demands for more eco-friendly products.

Reassessing transportation and packaging for sustainability.

Question 8

What roles do service professionals play in environmental management?

Answer 8

Ensuring familiarity with laws and regulations.

Designing appropriate environmental audits.

Identifying full environmental cost accounting methods.

Question 9

What is the “concept of the commons”?

Answer 9

A resource used as though it belongs to everyone, often leading to overuse and depletion, as described by Garrett Hardin in 1968.

Question 10

How do competitors interact with environmental issues?

Answer 10

They face consequences of gaining a competitive edge through environmentally friendly products.

Question 11

What are the ethical challenges for NGOs regarding environmental concerns?

Answer 11

Responding to groups based on environmental concerns.

Question 12

How does the media influence environmental responsibility?

Answer 12

By shaping responses through coverage of environmental problems.

Question 13

What role does the government play in environmental ethics?

Answer 13

Enforcing compliance with laws and regulations.

Influencing public policy related to the environment.

Question 14

What are the two key concepts that aid businesses and society in addressing environmental challenges?

Answer 14

The environmental ethic.

Sustainable development.

Question 15

What is the environmental ethic in business ethics?

Answer 15

A set of values or principles guiding an organization’s practices regarding the environment, emphasizing moral responsibility and sustainable management from design to disposal.

Question 16

What are the three main ethical approaches related to the environmental ethic?

Answer 16

Deontological (rule-based): Focuses on adhering to rules and regulations universally applied.

Utilitarian: Balances the positive and negative outcomes of corporate actions on the environment.

Virtue ethics: Considers personal values and motivations, emphasizing concern for both human and environmental well-being.

Question 17

What is a limitation of the deontological approach in environmental ethics?

Answer 17

It treats all beings as ends but may ignore broader moral considerations in environmental contexts.

Question 18

How does the utilitarian approach evaluate environmental decisions?

Answer 18

By weighing the relative costs, harms, and benefits of actions, though it struggles with unforeseen consequences and intrinsic values.

Question 19

Why is virtue ethics considered broader than the other two approaches in environmental ethics?

Answer 19

It incorporates subjective evaluation based on virtuous traits and concern for long-term well-being.

Question 20

What is sustainable development, and who first defined it?

Answer 20

Development ensuring current use of resources does not harm future generations’ prospects. Defined by the United Nations World Commission on Environment and Development (1987).

Question 21

What are the key goals of sustainable development?

Answer 21

Ensure environmental and economic concerns coincide.
Reduce poverty and sustain resources for future generations.

Allow continued economic growth while protecting the environment.

Question 22

How does business sustainable development differ from general sustainable development?

Answer 22

It focuses on strategies meeting the needs of enterprises and stakeholders while protecting and enhancing natural and human resources for the future.

Question 23

Who developed the definition of business sustainable development?

Answer 23

The International Institute for Sustainable Development (IISD), supported by Canada and Manitoba’s governments.

Question 24

What does business sustainable development emphasize about organizational activities?

Answer 24

The dependence of economic activities on human, natural, physical, and financial capital.

Question 25

What ethical guidelines are corporations encouraged to use in environmental reporting?

Answer 25

The rule-based and utilitarian approaches, with limited use of the virtue ethics approach for decision-making.

Question 26

What is acid rain, and what causes it?

Answer 26

Acid rain is precipitation with high concentrations of sulphuric and nitric acids, caused by industrial gas emissions that combine with water in the atmosphere.

Question 27

How does air pollution affect the environment?

Answer 27

Air pollution impacts air quality through emissions from burning fuels, industrial sites, and transportation vehicles. Smog is a common form of air pollution.

Question 28

What is an ecosystem, and how should businesses approach it?

Answer 28

An ecosystem is a biological community of interacting organisms and their environment.

Businesses should adopt an ecosystem approach by recognizing interrelationships among land, air, water, wildlife, and human activities.

Question 29

What are the environmental concerns related to energy production and consumption?

Answer 29

Energy generation damages the environment and releases pollutants when fuel is used.

Businesses and consumers are responsible for reducing energy waste and adopting efficient technologies.

Question 30

Why are nature and wildlife significant environmental concerns for businesses?

Answer 30

Business operations harm birds, mammals, fish, and plants, particularly endangered species.

Question 31

What is the role of the ozone layer, and how is it affected?

Answer 31

The ozone layer protects Earth by filtering UV radiation from the sun.

Its thinning has increased UV radiation levels, contributing to environmental concerns.

Question 32

What is pollution, and why are businesses under pressure to reduce it?

Answer 32

Pollution is any contamination of the environment, and businesses face growing pressure to minimize their contributions to it.

Question 33

What is waste management, and what are the “4 Rs”?

Answer 33

Waste management involves the disposal, processing, recycling, and reuse of wastes. The 4 Rs are reduce, reuse, recycle, and recover.

Question 34

Why is water quality a significant environmental issue?

Answer 34

Water quality is determined by contaminants affecting chemical and bacterial composition, making safe drinking water a critical concern for businesses and society.

Question 35

What is the RBC Blue Water Project, and what are its goals?

Answer 35

A 10-year initiative to protect fresh water through donations, education, and events. RBC supports water protection in towns and cities and promotes water-efficient technologies.

Question 36

What is climate change, and what causes it?

Answer 36

Climate change results from human activities altering atmospheric chemical composition through greenhouse gases (GHGs), causing global temperature increases and severe weather events.

Question 37

What are greenhouse gases (GHGs), and what is their impact?

Answer 37

GHGs trap heat in the atmosphere, contributing to global warming. They include carbon dioxide, methane, nitrous oxide, and fluorocarbons.