Managing for Sustainability Flashcards
Two components of action in business
- An impact on profits
- An impact on the world
How is ethical capitalism accomplished?
- Focusing on creating long-term economic and social value.
- Acting as stewards of all constituencies, including customers, employees, suppliers, investors, government, and community.
- Avoiding business practices that adversely affect the environment.
Sustainability
the ability of an organization to manage business so that it has
minimal negative impact on the environment, society, and the economy.
Value chain
the dynamic actions, exchanges, and relationships with all stakeholders involved in the transformation and delivery of raw materials that create value for stakeholders and society
Green business practices
environmentally friendly business practices, such as
conservation of water and energy or recycling, that contribute toward sustainability
initiatives
Business as Usual Philosophy
A philosophy that uses corporate social responsibility as a communications/public relations tool.
Make Business out of Problems Philosophy
A philosophy that attempts to transform business
operations according to sustainability principles.
What is the Triple Bottom Line (TBL)?
a comprehensive measure of performance that includes financial (PROFIT), environmental (PLANET), and social (PEOPLE) measures.
TBL: Social capital
results from businesses engaging the community to determine beneficial win-win solutions to common problems.
Measures of social capital include;
- corporate reputation
- employee growth
- retention
- satisfaction
- turnover
TBL: Environmental Capital
is centered on protecting the environment and assessing environmental administration programs to understand every stage of product life cycles.
Measures of environmental capital include;
- climate change
- deforestation
- marine and environment degradation
- persistent environmental pollutants
- energy/carbon/greenhouse
emissions - loss of biological diversity
- stratospheric ozone depletion
Renewable resources
resources that can be replaced at a rate equal to or faster than their rate of consumption.
Perpetual resources
resources that are continually replaced
Two things a sustainable business model strives to
- Decrease/eliminate the environmental impact of harmful chemicals, materials, and waste generated from the production of goods and
services. - Employ environmentally friendly inputs to production that can function at the same level or better than unfriendly inputs and at a lower cost
Ecological Footprint
the environmental impact of resource consumption in production as measured by the water and land capacity needed to replace those resources.
Carbon Footprint
the environmental impact of harmful chemical’s,
materials, and waste generated from the production of goods and
services as measured by greenhouse gasses
The Win-Win Mentality
today’s business world many companies/organizations are looking to become environmentally friendly
The Dissenting View
Some economists suggest that not a single analysis supports the notion that spending money on environmental problems will provide a full payback to the organization
The Balanced View
In a balanced view businesses weigh the environmental benefits of an
action against the destruction of business value
Why organizations have turned their attention to environmental issues
- Legal Compliance
- Cost Effectiveness
- Competitive Advantage
- Public Opinion
- Long-term Thinking
Legal Compliance
Internationally there are many laws that govern addressing concerns
with air, water, and noise pollution, hazardous wastes, marine life, nuclear safety, surface mining, and nature and wildlife conservation
Cost Effectiveness
Environmental initiatives can be cost-effective by avoiding fines, cleanup, and even litigation
Competitive Advantage
Companies gain a competitive advantage by turning their environmental concerns into opportunities and by producing
higher-quality products that meet consumer demand
