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CORP ENV MGMT

CORP ENV MGMT. Environmental Issues. The Litany Global Problems Global Warming - Warmest Years on Record Ozone Depletion - Big Hole in Atmosphere Species Decimation Regional Problems Deforestation Acid Rain Water Pollution - Rivers, Lakes Local Problems

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CORP ENV MGMT

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  1. CORP ENV MGMT

  2. Environmental Issues • The Litany • Global Problems • Global Warming - Warmest Years on Record • Ozone Depletion - Big Hole in Atmosphere • Species Decimation • Regional Problems • Deforestation • Acid Rain • Water Pollution - Rivers, Lakes • Local Problems • Pesticides - Hazardous Materials • Waste Disposal

  3. Basic Philosophical Elements and Issues of the Environment • Are these concerns realistic? • Are some more realistic than others? • How serious are they? • What are some example implications for business? For these problems?

  4. GDP EI EI = Population x x Person unit of per capita GDP The Master Equation EI = Environmental Impact GDP = Gross Domestic Product Population = Population Concerns GDP/PERSON = Affluence Concerns EI/Unit of Per Capita GDP = Technological Concerns What Alternatives Exist to Manage EI Here? What is focus of New Economy? What does Garrett Hardin think?

  5. Tragedy of the Commons • What are the commons? • What is the “tragedy”? • How does it work with the economic principles? • What are Hardin’s solutions? • Do you agree? • Will they work?

  6. Environmental Consciousness • What is man’s role with nature? • Religion? Dualistic? • What is meant by take dominion over nature? • Nature exists to serve humans • anthropomorphic view • is environment in “profit” equation? • In calculation of “national” accounts?

  7. Stages of Environmental Concern • Conservation • Use resources wisely - nature’s utility is in its service to humans • Preservation • Leave certain areas alone - nature has intrinsic value • Protection • pollution control - protect humans • Sustainability • global perspective, “sustainable growth” and equity.

  8. Environmental Ethics and Business • Western Society - Objectifies Nature • Locke - “Something in a state of nature has no economic value and is of no utility to the human race” • Ethics - a concern with actions and practices directed to improving the welfare of people. • What are the environmental implications of this philosophy?

  9. Economic Fundamentalism and Ethics • The corporate social responsibility of a business is to increase profit. - M. Friedman • Those things that cannot be traded on the market have no value. • Where does the environment fit in these definitions for environmental ethics? • Will people and corporations do environmentally responsible things on their own? What happens if they do?

  10. Corporate Social Responsibility • What is it? • Corporations have responsibilities that go beyond production of goods and services for profit; • These responsibilities involve helping to solve important social problems especially those they helped create • Corporations have a broader constituency than stockholders alone, i.e. stakeholders • Corporations have impacts on society that go beyond simple market transactions • Corporations serve a wider range of human values than can be captured by economic values

  11. CSR • By doing socially responsible things, businesses better human life. • Supposedly ..good ethics is good business. • Is this true? • Is enlightened self interest a good way to push this?

  12. CSR theories • Stakeholder theory • Normative theory is the standard ethical theories and applying them to business. Social values should guide businesses. Environmental Limitation? • Social Contract Theory - A contract should exist between business and society.

  13. Incorporating Environment into Business Ethics • Environmental Ethics is a starting point. • What are Leopolds’ arguments? • What is the difficulty in doing this? • What does the Biocentric ethic say (Goodpaster?) • Biocentrism • Natural objects have intrinsic value and morally considerable in their own right. • Deep Ecology nature has an ethical status at least equal to humans.

  14. Management starting to think in this perspective? • Ecocentricism views industrial relationships in a cycle, and a whole set of philosophies. • Expanded stakeholder theory – • Sustaincentric - going beyond sustainability of “development that meets the needs of the present without compromising the ability of future generations to meet their needs. • Human and economic relationships inextricably linked with natural systems.

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