Chapter 4: Sustainability and Natural Resources

Question 1

Today, it is “__________ correct” to focus on sustainability and metro resources. _______ and _______ are paying a lot of attention to sustainability.

Answer 1

politically; politicians; companies

Question 2

state in which the demands placed upon the environment by people and commerce can be met without reducing the capacity of the environment to provide for future generations.

Answer 2

environmental sustainability

Question 3

Brundtland Commission Definition: meets the needs of the present without compromising the ability of future generations to meet their needs

Answer 3

sustainable development

Question 4

The mindset of sustainable environment is NOT to make it difficult for people to _______ what they want to, but rather to do this with the idea of _________ as much as possible of the resources as you develop new products.

Answer 4

consume; conserving

Question 5

an evaluation of the environmental aspects of a product or service throughout its life cycle; assesses the cumulative impact of the product.

Answer 5

life cycle assessment

Question 6

The Life Cycle Assessment can lead to reductions of _________ _______, ______ structure, and potential __________ in inputs, processes, and wastes.

Answer 6

environmental footprints; cost; carcinogens

Question 7

Emerging “_____ ______” shows companies accepting responsibility for the impact of their activities.

Answer 7

product stewardship

Question 8

More than 90% of ______ consider sustainability to be important to the success of their company

Answer 8

CEO’s

Question 9

_____% of students in business schools place a priority on learning about environmental and social issues.

Answer 9

88%

Question 10

Which country is very good at sustainable development through marketing? What do they do that makes them good?

Answer 10

Europe; “green label”

Question 11

suggests that products and services should be designed to completely close the production loop, so that all resources needed to produce them are recycled and reused rather than discarded or left to pollute.

Answer 11

cradle-to-cradle design

Question 12

The focus of the cradle-to-cradle design is _______ and minimizing ______.

Answer 12

recycling; pollution

Question 13

T or F: In the cradle-to-cradle design, there’s an understanding that there will be pollution, but you want to pollute as little as possible and when you do, you want to deal with the pollution you create.

Answer 13

True

Question 14

What is an example of a treaty about minimizing pollution and conserving more?

Answer 14

Paris Treaty

Question 15

What is the concern of some people in regards to treaties about minimizing pollution and conserving more?

Answer 15

The treatment of countries (allowing developing countries like India and China to pollute a lot more than the U.S.) (On the other hand, India and China aren’t as mature economically as the U.S., so they are trying to overcome a certain gap.)

Question 16

What are the 2 components of the cradle-to-cradle design?

Answer 16

1. Technical nutrients
2. Biological nutrients

Question 17

What are the 3 tools for measuring sustainability?

Answer 17

1. Carbon Disclosure Project
2. Carbon Footprint
3. Water Footprint

Question 18

a measure of the volume of greenhouse gas emissions caused by a product’s manufacture and use.

Answer 18

carbon footprint

Question 19

non-profit organization that provides reporting frameworks for sustainable water use and reduction of greenhouse gas emissions; advocate for the reduction of the carbon footprint

Answer 19

carbon disclosure project

Question 20

a measure of the amount of water used in a product’s manufacture and use.

Answer 20

water footprint

Question 21

What are the 3 main elements of sustainability? (These elements intersect)

Answer 21

1. Economic
2. Environmental
3. Social

Question 22

The intersection of economic, environmental, and social elements produces _________.

Answer 22

sustainability

Question 23

What results from the intersection of social and economic elements?

Answer 23

Equitable

Question 24

What results from the intersection of social and environmental elements?

Answer 24

Bearable

Question 25

What results from the intersection of economic and environmental elements?

Answer 25

Viable

Question 26

What are the 3 characteristics of an environmentally sustainable business?

Answer 26

1. Limits 2. Interdependence 3. Equity Distribution

Question 27

What characteristic of an environmentally sustainable business is this: addresses the reality that environmental resources are exhaustible

Answer 27

limits

Question 28

Where is air extremely polluted (3 places)?

Answer 28

Thailand, Bangkok, and China

Question 29

What characteristic of an environmentally sustainable business is this: the complex relationships that sustainable practices create among ecological, social, and economic systems, in which actions in one of these systems may affect the other two, often in ways that are not easily predicted.

Answer 29

interdependence

Question 30

T or F: Each action in the ecological, social, and economic is likely to have consequences and impacts on other actions.

Answer 30

True (ex: if you want to build a factory in a certain part of the country, this may create some social and economic difficulties, like women moving from rural areas to the city to work, and breaking up of the traditional family)

Question 31

T or F: For system interdependence to work, there has to be vast differences in the distributions of gains.

Answer 31

False; there CANNOT be vast differences in the distributions of gains

Question 32

What has become extremely important and the whole issue of fair trade?

Answer 32

Equity

Question 33

T or F: We have free trade agreements with other countries. However, this doesn’t necessarily mean that trade is fair.

Answer 33

True (ex: some countries don’t have the same labor standards as we do, so they develop an advantage over us.)

Question 34

If a country has an advantage over another country, this translates into a _____/______ advantage, and they will be able to sell their products in the U.S. at a (smaller/larger) price.

Answer 34

cost/price; smaller

Question 35

Why is it difficult for some people in underdeveloped countries to trade?

Answer 35

They have to sell their products to entities that control the movements of goods so they don't have much of a say as to how much money they make (They don't always get paid what they deserve, and there are no remedies against it).

Question 36

Some people in the west are insisting on fairness in trading to help the _____ _______.

Answer 36

small growers

Question 37

What is a way to gain control over the supply chain?

Answer 37

Backward integration

Question 38

anyone who has anything to do with an entity

Answer 38

stakeholder (ex: the stakeholders for Auburn University are the students, the faculty, the administration, the alumni, the city of Auburn, etc.)

Question 39

Why may there be a constant struggle between stakeholders?

Answer 39

Their interests may not always be the same (conflicting, competing interests)

Question 40

an understanding of how business operates that takes into account all identifiable interest holders; gives all stakeholders a voice.

Answer 40

stakeholder theory

Question 41

approach to accounting that measures the firm’s social and environmental performance in addition to its economic performance.

Answer 41

triple-bottom-line accounting

Question 42

T or F: Triple-bottom-line accounting allows for comparisons across companies.

Answer 42

False; doesn't allow for comparisons because measurements, especially social and environmental areas are not standardized.

Question 43

T or F: If you say companies shouldn’t pollute at all, it will be at the expense of workers at that company.

Answer 43

True

Question 44

natural resources such as air, land, and water that provide us with the goods and services on which our survival depends.

Answer 44

natural capital

Question 45

T or F: Location can contribute to a country's competitive advantage.

Answer 45

True

Question 46

_________'s political neutrality made it a good location during the Cold War.

Answer 46

Austria's

Question 47

Geographic proximity affects formation of ________ groups.

Answer 47

trading

Question 48

How do mountains effect the interaction of people? (3 things)

Answer 48

1. Separate markets 2. Results in language and cultural differences. 3. Creates regional markets (often with altitude adjustments)

Question 49

How do deserts and tropical forests effect the interaction of people? (3 things)

Answer 49

1. Separate markets 2. Increase cost of transportation 3. Create population concentrations

Question 50

How do bodies of water effect the interaction of people?

Answer 50

1. Attract people 2. Facilitate transportation 3. Inland waterways provide access to interior markets

Question 51

Meteorological conditions, including temperature, precipitation, and wind that prevail in a region.

Answer 51

climate

Question 52

T or F: greater economic and intellectual development has occurred in temperate climates of Southern Europe and U.S.

Answer 52

False; NORTHERN Europe

Question 53

anything supplied by nature on which people depend.

Answer 53

natural resources

Question 54

energy that comes from sources that are naturally replenished, such as sunlight, wind, and water flow.

Answer 54

renewable energy

Question 55

energy that comes from sources that cannot be replenished, such as the fossil fuels– petroleum, coal, and natural gas– and nuclear power.

Answer 55

nonrenewable energy

Question 56

What are 3 things that have been used historically as a political weapon to influence importing countries?

Answer 56

1. Energy 2. Oil 3. Gas

Question 57

What are 4 examples of nonrenewable energy sources?

Answer 57

1. Petroleum (oil) 2. Coal 3. Natural Gas 4. Nuclear Power

Question 58

T or F: Oil shale has remained underdeveloped due to environmental issues.

Answer 58

True

Question 59

What has opened new reserves for acquiring petroleum?

Answer 59

Fracking

Question 60

1. Data suggests many countries are _______ nuclear capacity. 2. What is the main issue of nuclear power?

Answer 60

1. Expanding 2. Safety

Question 61

______ is projected to decline as an energy source.

Answer 61

Coal

Question 62

Emissions from burning coal are responsible for _______ _______.

Answer 62

global warming

Question 63

What are the cleanest burning fossil fuels?

Answer 63

Natural gas

Question 64

What country has become extremely wealthy because of their ability to liquify gas and export it?

Answer 64

Qatar

Question 65

What are 3 examples of renewable energy sources?

Answer 65

1. Wind power 2. Biomass 3. Solar Photovoltaic Power (PV)

Question 66

1. Wind power is now a mainstream source for _______. 2. What is the energy source for biomass? 3. Where does the power of solar photovoltaic power come from?

Answer 66

1. electricity 2. photosynthesis 3. voltage created when certain materials are exposed to light

Question 67

What country leads the way in renewable energy sources in relation to its population?

Answer 67

Europe

Question 68

17 non-fuel mineral elements used in national defense applications (and a lot of other applications) and in all areas of modern manufacturing.

Answer 68

rare earths

Question 69

_______ _________ prevent non-fuel minerals (rare earths) from being commercially viable to mine.

Answer 69

Insufficient concentrations

Question 70

What country produces more than 80% of output of rare earths?

Answer 70

China

Question 71

T or F: Early business sustainability efforts looked beyond their own operations and focused on the external aspects of conservation and environmental regulation.

Answer 71

False

Question 72

T or F: The stakeholder model for environmentally sustainable business has failed because we don't have an accounting system to measure the present costs of environmental irresponsibility.

Answer 72

False

Question 73

T or F: "Petroleum man" faces inevitable extinction, as we currently understand resources.

Answer 73

True

Question 74

T or F: Biomass is a category of renewable energy fuels based on their heavy weight.

Answer 74

False

Question 75

T or F: Geothermal power is derived from mirrors or sensors used to collect sunlight.

Answer 75

False

Question 76

When considering the limits associated with sustainability, a company should address! a. that environmental resources are exhaustible. b. the amount of renewable resources it takes to build the company’s products. c. whether or not government approval is necessary when creating environmental controls. d. the best season or time of year in which to produce.

Answer 76

a. that environmental resources are exhaustible.

Question 77

The three characteristics of evolving sustainable business practices are a. local, global, and improving quality of life. b. environmental sustainability, quality of life sustainability, and triple bottom-line accounting. ! c. limits, interdependence, and equity. d. being green, centering on the customer's needs, and demonstrating simple kindness.

Answer 77

c. limits, interdependence, and equity.

Question 78

The stakeholder model requires businesses to think about a. the stakeholders' interest in profitability. b. the network of tensions caused by competing demands. c. strategy in light of sustainability. d. the frequency of social issues faced by the stakeholders.

Answer 78

b. the network of tensions caused by competing demands.

Question 79

Tropical rain forests are! a. a barrier to economic development. b. an important source of agriculture, due to their fertile soil. c. the equivalent of marshes along coasts. d. locations of significant rural population centers due to their bodies of water.

Answer 79

a. a barrier to economic development.