CH14 - The environment and business responsibilities Flashcards
aspects of the corp confronted by environmental issues
virtually all aspects of the corp, from:
- input if resources to the manufacturing process
- workplace conditions through the way products are packaged and sold
commons + tragedy of the commons
commons = any resource used as though it belongs to all
tragedy = situation in which individuals with access to a public resource (also called a common) act in their own interest and, in doing so, ultimately deplete the resource.
Environmental ethic def
the set of values or principles that govern a corporation’s practices relating to the environment
sustainable development def
development ensuring that the use of resources and the impact on the environment today does not damage prospects for the use of resources or the environment by future generation
(contains environmental protection and enhancement; social progress; economic development)
business sustainable development
according to the IISD, “adopting business strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining, and enhancing the human and natural resources that will be needed in the future.”
(profit + people + planet)
environmental concerns in business and society
- acid rain
- air pollution
- ecosystems
- energy production and consumption
- nature and wildlife
- ozone
- pollution
- waste management
- water quality
acid rain and air pollution
acid rain = precipitation that contains and abnormally higher concentration of sulphuric and nitric acid. Industrial activities create general gas emissions that combine with water to form the acids
air pollution = air quality is affected by various pollutants resulting from the burning of fuels, emissions from industrial sites, and emissions from transportation vehicles. Smog is one form of air pollution.
Ecosystems + nature and wildlife def
ecosystems = biological community interacting organisms and their physical environment. It is recommended that industry take an ecosystem approach to the environment - recognize the interrelationship among land, air, water, wildlife, and human activities
nature and wildlife = concern for the harm caused to birds, mammals, fish and plants by the operations of business. Endangered species are of particular concern
energy production and consumption def
the generation of energy is usually damaging to the environment, as are the pollutants released when the energy fuel is used. Industry is responsible for many of the problems created, but so are consumers. Business has been emphasizing the efficient use of energy through the development of new technologies for itself and consumers
Ozone and pollution
ozone = naturally occurring gas, formed from normal oxygen, that protects Earth by filtering out UV radiation from the sun. The thinning of the ozone layer in the upper atmosphere has resulted in increased UV radiation
pollution = involved any form of contamination in the environment. Business is under pressure to reduce its polluting
Waste management and water quality
waste management = “disposal, processing, controlling, recycling and reusing the solid, liquid, and gaseous wastes of plants, animals, humans and other organisms.” Wastes often are hazardous, making the process more challenging, Recycling is described by the four Rs : reduce, reuse, recycle, and recover
water quality = determined by the presence of contaminants affecting its chemical and bacterial composition. Supply of safe drinking water is a concern in Canada. Corporations take on different environmental projects, as illustrated by Royal Bank’s decision to focus on fresh water.
Climate change (global warming) def
def = according to Environment Canada, it is “the result of human activities altering the chemical composition of the atmosphere though the build-up of greenhouse gases that trap heat and reflect it back to the Earth’s surface.”
Greenhouse gases (GHG)
Gases that absorb and trap heat in the atmosphere and cause a warming effect on Earth. Some occur naturally in the atmosphere, while other result from human activities. Greenhouse gases include carbon dioxide, water vapour, methane, nitrous oxide, ozone, etc,
How does the gov get involved
- public policy formulation and regulation of all aspects of the natural environment
=> Canadian environmental protection act, Canadian environmental assessment act, Kyoto protocol
Environmental non-governmental organizations (ENGOs)
groups that hold shared values or attitudes about the challenges confronting the natural environment and advocate for changes to improve the condition of the environment
-> influence corps though protests, blockades, boycotts, and annual shareholder meetings
ex. wwf, greenpeace, david suzuki foundation
how do ENGOs select corporations to target
- firms is source of the environmental impact
- extent of the consequences of the firm’s actions
- denser relationship among firm’s ENGOs
- larger the firm
- greater influence of the firm within their industry
- previous interactions with ENGOs
- closeness of the firm to consumers in the supply chain
- firm’s brands are well known
standard environmentalism def
government regulation is necessary remedy for the market’s failure to provide enough environmental amenities
market environmentalism def
economic incentives creates by market are more effective at protecting the environment than government interaction
market factors influencing environmentalism
- economic growth
- free trade
- property rights
differences between standard and market environmentalism
Economic Growth
S : viewed as destructive, producing more = more env harm
M: world is dynamic, 2 forces counteract harm (increased income - demand for more environmental quality + stimulation of innovation)
Free Trade
S: part of the problem, prevents countries from following their own higher levels of protection, belief that rich countries exploit poor
M: forces ind. to be more competitive, accelerating adoption of cleaner tech
Property Rights vs Regulation
S: faith in gov to solve problem for the public good
M: powerful too for protecting cuz ownership incentive creates stewardship incentive and gives indiv. power to protect the env.
carbon pricing def + 3 ways
(market driven)
financial instrument that businesses and governments are using to reduce carbon emissions, which can be done in one of 3 ways:
1. cap-and-trade: govs cap total carbon emissions and then give or sell companies carbon permits that add up to the cap
2. carbon pricing: govs impose a fee on carbon
3. output-based price system: instead of paying the charge on fuels that they purchase, industrial facilities in the system will face a carbon price on the portion of their emissions that are above a limit
offsets (emissions-reduction credits) def
credits purchased from other corps or orgs to mitigate greenhouse gases released into the environment
-> the funds generated used to finance undertaking that will result in the red
examples of offset providers
Tree Canada - planting and nurturing trees
coolAction.com - helps individuals and companies reduce their global emissions of greenhouse gases
Bullfrog Power - green electricity retailer (hydro generators)
Carbon capture and store (CCS)
carbon emissions are captures and injected into underground formation
-> referred to as carbon sequestration and geosequestration
-> can be expensive and difficult to implement
