Ch 4: Sustainability

Question 1

sustainability

Answer 1

taking only what is needed and leaving behind enough for future generations

Question 2

triple bottom line

Answer 2

profit (economic), people (social), planet (environmental)

Question 3

firms need to capture _____ _____ of _____ to minimize harm resulting from their activities

Answer 3

whole sets of values

Question 4

3 reasons for incorporating sustainability into corporate strategy

Answer 4

1. sustainability requires innovation and entrepreneurship –> competitive adv, lower costs, etc.
2. ignore sustainability –> negativity from society (Iron Law)
3. it’s the right thing to do

Question 5

the Sustainability Imperative

Answer 5

driven by large-scale initiatives like the UN Global Compact → 17 Sustainable Development Goals (SDGs)

Question 6

competition for resources

Answer 6

demand is growing more quickly than can be replaced

Question 7

climate change as a major sustainability issue in business

Answer 7

business must be prepared to respond to new policies regarding emissions and to take advantage of new technology

Question 8

economic globalization as a major sustainability issue in business

Answer 8

wide disparities in social/environmental standards bring both risks and opportunities

ex. if you outlaw child labor, a family may lose a member bringing in part of the family income (14 yr old in the mine example)

Question 9

externalities – definition and examples

Answer 9

negative consequences
ex. forestry firms, pollution, processing raw materials

Question 10

any environmental effort from business usually comes from…

Answer 10

compliance or efficiency

Question 11

4 waves of environmentalism

Answer 11

1. 1700s-1800s – environmental laws intended to promote settlement/grow economy
2. 18-early 1900s – laws aimed at mitigating issues w/ western expansion
3. 1900s – laws triggered by awareness of environmental priorities (ex. philly river dirty, soot in cities)
4. today – sustainable development & circular economy (reusing items)

Question 12

________ ________ _________, a subset of CSR, has evolved over decades to become institutionalized in business practice.
ex. Patagonia – UN Champions of the Earth, outdoor wear made out of discarded plastic bottles

Answer 12

corporate environmental responsibility

Question 13

Coca-Cola – “We have a responsibility to respect and protect water resources”

Answer 13

Atl had a water shortage some time ago and due to a combination of stakeholder pressure and the companies choice to do the “ethical”/right thing, they decided to lessen water usage close to zero.

Question 14

wicked problems

Answer 14

“wicked” = resistance to a resolution, rather than evil
these problems include environmental issues

Question 15

tragedy of the commons

Answer 15

no one takes responsibility and in absence of constraints, self-interest is likely to lead people to behave in ways that will not sustain shared resources

Question 16

Integrating Sustainability into a Firm’s Philosophy is a natural extension of ________ _____, including as a stakeholder in the ecological system from which the firm obtains resources and to which it bears responsibility for its impacts, positive or negative

Answer 16

stakeholder theory

Question 17

Environmental Protection Agency, EPA 1970

Answer 17

independent agency to research pollution problems, aid state/local govt, administer federal laws