CHAPTER 11

Sustainability IssuesSustainability Issues

Chapter Objectives

• To define the nature of sustainability as it relates to social responsibility

• To explore a variety of environmental issues faced by business and society

• To examine the impact of environmental policy and regulations

• To discuss a strategic approach to respond to environmental issues

Sustainability

• Sustainability is the potential for long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies.

• Sustainability includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment.

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 their overall business strategies

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.

Environmental Protection Agency (EPA)• The most influential regulatory agency that deals with

environmental issues and enforces environmental legislation – 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

• Plays a leadership role in dealing with other countries’ environmental policies

Environmental Legislation

• Clean Air Act

• Federal Insecticide, Fungicide, and Rodenticide Act

• Endangered Species Act

• Toxic Substances Control Act

• American Clean Energy Act

Environmental Legislation

• Emergency Planning and CommunityRight-to-Know Act– Toxic Release Inventory

• Pollution Prevention Act

• Food Quality Protection Act

Alternative Energy

• Alternative energy sources reduce global carbon emissions and our dependence on traditional energy sources.

Business Response to Environmental Issues

• Green marketing is specific development, pricing, promotion, and distribution of products that produce less harm to the environment.

Other Environmental Initiatives

• Emissions reduction

• Socially responsible buying

Stakeholder Assessment

• A process requiring acknowledging and actively monitoring the environmental concerns of all legitimate stakeholders

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

The Strategic Environmental Audit

• Organizations conduct an independent audit and report the results to all interested stakeholders.

• Organizations developed ISO 14000 as a comprehensive set of environmental standards that encourage a cleaner, safer, healthier world.