of Stakeholders, Ethics, Public Policy:

1
Management 308

• Chapter 12
• of Stakeholders, Ethics, Public Policy
• Managing Environmental Issues
• Shawn Berman
• Anderson School of Management
• University of New Mexico

2
CSR
The role of government

• In the United States, government has taken an
  increasingly active role in regulating business
  with regards to the environment.
• Regulation works to protect the environment in
  three ways
• Regulation of air pollution
• Regulation of water pollution
• Regulation of land pollution
• Does the government do enough to protect the
  environment?

3
Some US environmental protection laws
Figure 12-1
4
Alternatives to regulation

• Some people suggest that we can achieve
  protection of the environment without resorting
  to regulation. Some of these options for
  protecting the environment include
• Environmental standards This is what we
  typically think of when we think of regulation.
  Also called command and control.
• Market-based mechanism The government sets the
  overall level of production, issues permits to
  companies. Companies that pollute too much have
  to buy more permits, companies that cut back
  pollution can sell their extra permits. Also
  called cap and trade.
• Information disclosure Companies are forced
  to release data on their pollution. They will be
  motivated to reduce pollution by the public image
  associated with being a green citizen. Also
  called regulation by embarrassment.
• Civil and criminal enforcement Levying strict
  penalties for breaking the law.

5
Costs and benefits of environmental regulation
One of the central questions in environmental
regulation is how to balance the benefits with
the costs What are some of the problems with
applying strict economic reasoning to
environmental regulation?
6
Green companies, 1

• Proactive green companies share the following
  elements with regard to environmental management
• top-management involvement
• line-manager involvement
• codes of environmental conduct
• cross-functional teams
• the use of rewards and incentives

7
Green companies, 2

• This companies undertake these green practices to
  try to improve their competitive position
  through
• Cost reduction
• Product differentiation
• Technological innovation
• Improved strategic planning

8
Digging Gold, discussion questions

• 1. Using the classification system presented in
  the chapter section, Major Areas of
  Environmental Regulation, what types of
  pollution are generated by gold mining? Which of
  these do you think is (are) most damaging to the
  environment, and why?
• Under the classification system presented in the
  section, Alternative Policy Approaches, what
  types of government regulation do you think would
  most effectively address the concerns you have
  identified?
• In your view, what role should nongovernmental
  organizations (NGOs) and citizen movements play
  in reducing the adverse environmental impacts of
  gold mining?
• Which of the gold mining companies mentioned in
  this case are more, or less, environmentally
  responsible? What factors, in your view, might
  cause these differences?