Chapter 11

1. Chapter 11 Sustainability Issues

2. Global Environmental Issues • Natural environment • The physical world, including all biological entities as well as the interaction among nature, individuals, and organizations. • Protection of air, land, biodiversity, water, and renewable natural resources. • Increasingly, companies are incorporating environmental issues into theiroverall business strategies.

3. Atmospheric Issues • Air pollution arises from three different sources. • Stationary sources (factories and power plants) • Mobile sources (cars and trucks) • Natural occurrences (windblown dust, etc.) • Acid rain • Nitrous oxides and sulfur dioxides emitted frommanufacturing facilities react with air and rain. • Global warming • Carbon dioxide and other gases collect in the earth’s atmosphere, trapping the sun’s heat like a greenhouseand preventing the earth from cooling.

4. Air Pollution - industrialization

5. Air Pollution - traffic

6. Types of Pollution in Malaysia (2004)

7. The Greenhouse Effect

8. Causes of global warming Burning of fossil fuels This releases carbon dioxide into the atmosphere and is the leading contributor of global warming. Deforestation Trees and plants absorb carbon dioxide and remove it from the atmosphere. Thus, cutting down trees contributes to global warming. Beef production Methane is produced as a by-product of the digestion of some animals, inc. cows. Population growth Humans produce carbon dioxide every time they breathe. More people leads to more greenhouse gases. CFCs These gases destroy the ozone and are considered greenhouse gases.

9. Effects of Global Warming • The shifting earth causes erosion and landslides. Global warming is responsible for very destructive storms. This huge sinkhole resulted from large amounts of rain during a severe storm in Shoreline, Washington.

10. Effects of Global Warming • Violent Weather • Warmer climates can also influence the weather. As the earth becomes warmer, the ocean heats up, causing storms such as cyclones and hurricanes to be especially severe. Rising seawater temperatures increase the incidence and violence of hurricanes.

11. Destruction of Coral Coral reefs, which are extremely sensitive to temperature changes of any kind are destroyed. Effects of Global Warming This coral has begun to bleach from a rise in the ocean's temperature. Pollution and intense light can also cause coral to bleach.

12. Effects of Global Warming

13. Global Climate Change Initiatives • Kyoto Protocol • Multination agreement in 1997, went in to effect in 2005 • Requires industrial nations to reduce greenhouse gas emissions 5% below 1990 levels • European Union has taken lead on reducing emissions • As of 2006, 161 nations, representing 62% of world’s carbon emissions, had ratified • U.S. has not ratified, citing harm to U.S. economy

14. Water Issues • Water pollution • Results when dangerous chemicals seep into rivers and oceans. • Sources include: • Disposal of of raw sewage and toxic chemicals. • Oil and gas spills. • Burial of industrial wastes. • Fertilizers and pesticides usedin farming also drain into water supplies. • Water quantity • Water usage is increasing. • Increased use changes environmental conditions.

15. Water Pollution

16. Climate Change Strategy

17. Land Issues • Land pollution • Dumping of residential and industrial waste, strip mining, and poor forest conservation. • Waste management • Disposing of waste in an environmentally responsible manner. • Deforestation • Destruction of natural habitats, such as the rain forest. • Urban sprawl • Cities and surrounding areasbecome too congested, chaotic,and dispersed.

18. Deforestation NOW DYING: Cameron Highlands lie ravaged and stripped of its greenery. The air is warmed and hotels now provide fans. Even during the cooler nights, tourists have been spotted walking shirtless. -- MALAY MAIL

19. Biodiversity • Deforestation, pollution, development, and urban sprawl have put increasing pressure on wildlife, plants, and their habitats. • Many ecologists believe that the loss of species threatens the success of entire ecosystems. • A European honey bee collects nectar, while pollen collects on its body.

20. Endangered Animals

21. Animal Poaching

22. Environmental ProtectionAgency in Malaysia • In Malaysia, environmental management at the federal level is conducted by the Department of Environment (DOE), a department under the Ministry of Natural Resources and Environment. • The DOE primarily deals with matter involving air and water quality, industrial wastes, noise levels and environmental impact assessments.

23. DOE • Issues like forestry, wetlands and marine conservation do not fall within the DOE mandate. These areas rests primarily with the respective state authorities. • The pollution control and strategy or remedial approach is implemented through the enforcement of the Environmental Quality Act (EQA), 1974.

24. Environmental Legislation in Malaysia • Control of Motor Vehicle Emissions • Control of Toxic and Hazardous Wastes • Integration of Environment and Development • Control of Substances That Deplete the Ozone Layer • Control of Agro based Water pollution • Control of Municipal and Industrial Waste water pollution • Control of Industrial Emissions • National Forestry Act (1984) • Pesticide Act (1974) • Land Conservation Act (1960)

25. Clean Technology Businesses develop innovative, new technologies that support sustainability. Product Stewardship Managers focus on all environmental impacts associated with the full life-cycle of a product. BASF Practice Pollution Prevention Focuses on minimizing or eliminating waste before it is created. Eg. Double A Paper Stages of corporate environmental responsibility

26. Business Responseto Environmental Issues • Green Marketing is specific development, pricing, promotion, and distribution of products that produce less harm to the environment. • Many products are certified as “green” by environmental organizations. • Consumers are increasingly being confusedby green marketing claims. • Product pricing should reflect true costs. • Green Seal a non-profit organization that utilizes life-cycle analysis to evaluate & certify products & services that have lesser impact on the environment & human health.

27. Green Marketing is specific development, pricing, promotion, and distribution of products that produce less harm to the environment. Many products are certified as “green” by environmental organizations. Consumers are increasingly being confusedby green marketing claims. Product pricing should reflect true costs. E.g. Honda/Hybrid Green Seal (http://www.greenseal.org/) a non-profit organization that utilizes life-cycle analysis to evaluate & certify products & services that have lesser impact on the environment & human health. Business Responseto Environmental Issues

28. Examples of Green Marketing Products Honda’s new hybrid system Philips Light's CFL

29. Recycling Initiatives • Reprocessing of materials for reuse. • Steel • Aluminum • Paper • Glass • Rubber and some plastics • Over 50% of products sold in stores are packaged in recyclable paperboard. HP Recycling Malaysia

30. Other Environmental Initiatives • Emissions reduction • To reduce the threat of global warming,many companies have taken steps to reduce greenhouse gases. • Socially responsible buying (SRB) • Attempts to take into account the public consequences of organizational buying.

31. Stakeholder Assessment • A process requiring acknowledging and actively monitoring the environmental concerns of all legitimate stakeholders. • Identifying and prioritizing stakeholder claims. • Managers need to conduct research, assess risks, and communicate with stakeholders about their respective concerns. • Requires accepting the fact that not all stakeholders have equal interests.

32. Strategic Approachesto Environmental Issues

33. Environmental management as a competitive advantage 1. Cost Saving Companies that reduce pollution and hazardous waste, reuse or recycle materials, and operate with greater energy efficiency can reap significant cost savings. 2. Product Innovation Companies that develop a reputation for environmental excellence and that produce and deliver products and services with concern for their sustainability can attract environmentally aware customers. 3. Technological Innovation Technological innovation can lead to imaginative new methods for reducing pollution and increasing efficiency. 4. Strategic Planning Companies that cultivate a vision of sustainability must adopt sophisticated strategic planning techniques.

34. Risk Analysis • An analysis performed by a company to identify environmental issues that relate to manufacturing, marketing, consumption, and usage patterns associated with its products. • Industry and government research support identification of risk areas. • Enables an organization to measure the cost/benefit relationship of environmental decisions.

35. The Strategic Environmental Audit • Organizations conduct an independent audit and report the results to all interested stakeholders. • Organizations developed ISO 14,000 as a comprehensive set of environmental standards that encourage a cleaner, safer, healthier world. • Promotes a common approach to environmental management and helps companies attain and measure improvements in environmental performance.