Week 10

1. Week 10 Chapter 9 Environment Issues

2. Global Environmental Issues • Natural environment • The physical world, including all biological entities as well as the interaction among nature, individuals, and organizations. • Atmosphere, water, land, biosphere (plant & animal species and habitat), and other renewable natural resources.

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 from manufacturing 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 greenhouse and preventing the earth from cooling.

4. Figure 9.1 "Leading Emitters of Greenhouse Gases" Source: Miles O'Brien, "Causes of Global Warming: Messing with the Thermostat Can Be Devastating," CNN.

5. Water pollution Disposal of of raw sewage and toxic chemicals. Oil and gas spills. Burial of industrial wastes. Fertilizers and pesticides used in farming also drain into water supplies. Water quantity Water usage is increasing. Increased use changes environmental conditions. Aquifers being used faster than they can naturally be replenished. Lack of clean water in developing nations. Water Issues

6. 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 areas become too congested, chaotic, and dispersed. Arable land developed.

7. Table 9.1

8. 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. • Greater diversity = more resilience for entire system.

9. Genetically Modified Foods • Genetic engineering involves transferring one or more genes from one organism to another to create a new life form that has unique traits. • I.e. insect or virus immunity. • Long term effects cannot be predicted. • Large numbers of altered species could upset delicate balance.

10. Gov’t ResponseEnvironmental Protection Agency (EPA) • The most influential regulatory agency that deals with environmental issues and enforces environmental legislation (founded 1970). • Protects Americans from significant health risks in their work environment. • Manages environmental risks. • Is an integral part of U.S. policy. • Contributes to diverse, sustainable, and economically productive communities and ecosystems. • Enforces laws and provides information. • Science-based efforts.

11. Goals of the EPA • Clean air and safe water. • Safe food. • Preventing pollution. • Greater legal compliance. • Better waste management. • Reduction of global environmental risks. • Expansion of Americans’ right to know about their environment. • Sound science, improved understanding, and greater innovation. • Effective management.

12. Environmental Legislation • Clean Air Act, 1970 • Federal Insecticide, Fungicide, and Rodenticide Act, 1972 • Endangered Species Act, 1973 • Toxic Substances Control Act, 1976 • Clean Water Act, 1977 • Emergency Planning and Community Right-to-Know Act, 1986 • Pollution Prevention Act, 1990 • Food Quality Protection Act, 1996

13. Business Response: Green Marketing • 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 confused by green marketing claims. • Companies should strive to eliminate the concept of waste, and should rethink what constitutes a “product.” • Product pricing should reflect true costs (I.e. cost to replenish natural resources consumed or damaged).

14. Recycling Initiatives • Reprocessing of materials for reuse. • Steel • Aluminum • Paper (preferable post-consumer) • Glass • Rubber and some plastics • Over 50% of products sold in stores are packaged in recyclable paperboard.

15. US Recycling Rates Source: "A Few Facts About Steel-- North America's #1 Recycled Material," Steel Recycling Institute, www.recycle-steel.org, accessed January 31, 2003. Reprinted by permission from the Steel Recycling Institute

16. Other Environmental Initiatives • Emissions reduction • Efficient lighting and heating • Green power • Converting waste heat • Excess reduction earns tradeable credits • Socially responsible buying • Attempts to take into account the public consequences of organizational buying.

17. 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.

18. Risk Analysis • Identify potential environmental issues that relate to manufacturing, marketing, consumption, and usage patterns associated with its products. • All business ventures involve risk. • Industry and government research support identification of risk areas. • Enables an organization to measure the cost/benefit relationship of environmental decisions. • Helps to meet gov’t regulation.

19. 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. • http://www.iso.org