CORP ENV MGMT

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CORP ENV MGMT
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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

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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?

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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?
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Tragedy of the Commons

• What are the commons?
• What is the tragedy?
• How does it work with the economic principles?
• What are Hardins solutions?
• Do you agree?
• Will they work?

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Environmental Consciousness

• What is mans 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?

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Stages of Environmental Concern

• Conservation
• Use resources wisely - natures 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.

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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?

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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?

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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

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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?

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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.

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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.

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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.