Ethics

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Ethical Issues in Environmental Destruction- Rainforests in Thailand and Indonesia Business Ethics Paul Rohit G. 0259/51

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overview on ethics in governance

Transcript of Ethics

Ethical Issues in Environmental Destruction- Rainforests in Thailand and Indonesia

Abstract

Deforestation is the clearance of natural forest cover by logging and burning. According to the World Resources Institute, over 80 percent of the Earths natural forests have already been destroyed. Between 1945 and 1975 forest cover in Thailand declined from 61% to 34% of the country's land area.

Wetlands are converted to rice paddy fields and urban sprawl. During the twentieth century, deforestation in Thailand was mainly due to agricultural expansion, although teak deforestation happened as a direct result of timber cutting.

Main reasons include population growth, agricultural policy, land ownership policy and illegal logging. A scenario released by UNEP in 2002 suggested that most natural rainforest in Indonesia would be degraded by 2032. Given the rate of deforestation in the past five years, and recent widespread investment in oil palm plantations and biodiesel refineries, this may have been optimistic.New estimates suggest that 98% of the forest may be destroyed by 2022, the lowland forest much sooner.

Currently, area equivalent of 300 soccer fields is being cleared of rain forests every hour.Relevance of ethics to contemporary issuesEthics is the domain of inquiry that explores what is right or wrong, obligatory or non-obligatory, or when responsibility attaches to human behavior. Ethical principles provide the foundations for various modern concepts for work, business and governments. The issues involve far more than the share holder earnings and profit, as the firms grow larger and larger. The traditional factors considered were cost management and service quality, but now, the firms must also take into account the issues affecting the world in total.There are no universally agreed rules of ethics, no absolute standards or controls, and no fixed and firm reference points. The rules and laws relating to these issues hence are continually revised in tandem with the changing situations.

With the advent of transnational and multinational companies capable of ranging over great distances and operating at tremendous speed, it has been difficult for the community to keep track of developments in the commercial world.

From the point of view of business, this has meant that it has been able to enjoy a considerable degree of freedom. In exercising this freedom, there were some casualties as the environment, employee health and safety, shareholders rights and the welfare of the community at large.

However, something quite remarkable seems to have occurred in the latter part of the 1980s and on into the 1990s. This is that there has been a sudden realisation that the whole network is interdependent. The impact of any decision taken by the business community has a far-fetched impact on the community and the whole world we live in, at large.

Business is not a machine, it is a human endeavour. One of the confusing issues for the community is the seeming impersonality of many businesses when deep down the community knows that it is people just like them who are running the show. The various issues now are a consequence of conscious decisions taken by the government and the businesses and not some accident.

This is to bring us back to the point about regulation. It is likely that lasting change will only be effected when community standards have evolved to such a degree that unethical behaviour is not only questionable but also unthinkable. The community has to evolve and take an active role to traditionalize ethics in the businesses.

Current Environmental concerns

Our environment is constantly changing. With a massive influx of natural disasters, warming and cooling periods, different types of weather patterns and much more, people need to be aware of what types of environmental problems our planet is facing.

Global warming has become an undisputed fact about our current livelihoods; our planet is warming up and we are definitely the cause of the problem. However, this isnt the only environmental problem that we should be concerned about. All across the world, people are facing a wealth of new and challenging environmental problems every day. Some of them are small and only affect a few ecosystems, but others are drastically changing the landscape of what we already know.

1. Pollution:Pollution of air, water and soil require millions of years to recoup. Industry and motor vehicle exhaust are the major cause. Heavy metals, nitrates and plastic are toxins responsible for pollution. While water pollution is caused by oil spill, acid rain, urban runoff; air pollution is caused by various gases and toxins released by industries and factories and combustion of fossil fuels; soil pollution is majorly caused by industrial waste that deprives soil of essential nutrients.

2. Global Warming:Climate changes like global warming is the result of human practices like emission of Greenhouse gases. Global warming leads to rising temperatures of the oceans and the earth surface causing melting of polar ice caps, rise in sea levels and also unnatural patterns of precipitation such as flash floods, excessive snow or desertification.

3. Overpopulation:The population of the planet is reaching unsustainable levels as it faces shortage of resources like water, fuel and food. Population explosion in less developed and developing countries is straining the already scarce resources. Intensive agriculture practiced to produce food damages the environment through use of chemical fertilizer, pesticides and insecticides. This is predominant in case of India. Due to the Green Revolution, the ill effects of excessive use of fertilizers can be seen.

4. Natural Resource Depletion:Natural resource depletion is another crucial current environmental problems. Fossil fuel consumption results in emission of Greenhouse gases, which is responsible for global warming and climate change. Globally, people are taking efforts to shift to renewable sources of energy like solar, wind, biogas and geothermal energy. The cost of installing the infrastructure and maintaining these sources has plummeted in the recent years.

5. Waste Disposal:The over consumption of resources and creation of plastics are creating a global crisis of waste disposal. Developed countries are notorious for producing an excessive amount of waste or garbage and dumping their waste in the oceans and, less developed countries. Nuclear waste disposal has tremendous health hazards associated with it. Plastic, fast food, packaging and cheap electronic wastes threaten the well being of humans. Waste disposal is one of urgent current environmental problem.

6. Climate Change:Climate change is yet another environmental problem that has surfaced in last couple of decades. It occurs due to rise in global warming which occurs due to increase in temperature of atmosphere by burning of fossil fuels and release of harmful gases by industries. Climate change has various harmful effects but not limited to melting of polar ice, change in seasons, occurrence of new diseases, frequent occurrence of floods and change in overall weather scenario. The irregularity of monsoons in India can be attributed to this.

7. Loss of Biodiversity:Human activity is leading to the extinction of species and habitats and a huge loss of bio-diversity. Eco systems, which took millions of years to perfect, are in danger when any species population is decimating. Balance of natural processes like pollination is crucial to the survival of the eco-system and human activity threatens the same. Another example is the destruction of coral reefs in the various oceans, which support the rich marine life.

8. Deforestation:Our forests are natural sinks of carbon dioxide and produce fresh oxygen as well as helps in regulating temperature and rainfall. At present forests cover 30% of the land but every year tree cover is lost amounting to the country of Panama due to growing population demand for more food, shelter and cloth. Deforestation simply means clearing of green cover and make that land available for residential, industrial or commercial purpose.

9. Ocean Acidification:It is a direct impact of excessive production of CO2. 25% of the total CO2 is produced by humans. The ocean acidity has increased in the last 250 years but by 2100, it may shoot up by 150%. The main impact is on shellfish and plankton in the same way as human osteoporosis.

10. Ozone Layer Depletion: The ozone layer is an invisible layer of protection around the planet that protects us from the suns harmful rays. Depletion of the crucial Ozone layer of the atmosphere is attributed to pollution caused by Chlorine and Bromide found in Chloro-floro carbons (CFCs). Once these toxic gases reach the upper atmosphere, they cause a hole in the ozone layer, the biggest of which is above the Antarctic. The CFCs are banned in many industries and consumer products. Ozone layer is valuable because it prevents harmful UV radiation from reaching the earth. This is one of the most important among the current environmental problems.

11. Acid Rain:Acid rain occurs due to the presence of certain pollutants in the atmosphere. Acid rain can be caused due to combustion of fossil fuels or erupting volcanoes or rotting vegetation, which releasesulfur dioxide and nitrogen oxides into the atmosphere. Acid rain is a knownenvironmental problem that can have serious effect on human health, wildlife and aquatic species. The ill effects can be seen on the infamous Taj Mahal in India.

12. Water Pollution:Clean drinking water is becoming a rare commodity. Water became an economic and political issue as the human population fights for this. One of the options suggested is using the process of desalinization. Industrial development is filling our rivers seas and oceans with toxic pollutants, which are a major threat to human health.

13. Urban Sprawl:Urban sprawl refers to migration of population from high density urban areas to low density rural areas which results in spreading of city over more and more rural land. Urban sprawl results in land degradation, increased traffic, environmental issues and health issues. The ever growing demand of land displaces natural environment consisting of flora and fauna instead of being replaced. The need for sustainable smart cities can be seen here.

14: Public Health Issues:The current environmental problems pose a lot of risk to health of humans, and animals. Dirty water is the biggest health risk of the world and poses threat to the quality of life and public health. Run-off to rivers carries along toxins, chemicals and disease carrying organisms. Pollutants cause respiratory disease like Asthma and cardiac-vascular problems. High temperatures encourage the spread of infectious diseases like Dengue.

15. Genetic Engineering:Genetic modification of food using biotechnology is called genetic engineering. Genetic modification of food results in increased toxins and diseases as genes from an allergic plant can transfer to target plant. Genetically modified crops can cause serious environmental problems, as an engineered gene may prove toxic to wildlife. Another drawback is that increased use of toxins to make insect resistant plant can cause resultant organisms to become resistant to antibiotics.

The need for change in our daily lives and the movements of our government is growing. Because so many different factors come into play; voting, governmental issues, the desire to stick to routine, many people dont consider that what they do will affect future generations. If humans continue moving forward in such a harmful way towards the future, then there will be no future to consider. Although its true that we cannot physically stop our ozone layer from thinning (and scientists are still having trouble figuring out what is causing it exactly,) there are still so many things we can do to try and put a dent in what we already know.

Indian Scenario

Since times immemorial, the Indian culture laid importance on the preservation of environment by making Gods out of nature and worshipping it rather than destroying it.

Yajnavalkya Smriti, a historic Indian text on statecraft and jurisprudence, suggested to have been written before the 5th century AD, prohibited the cutting of trees and prescribed punishment for such acts. Kautalya's Arthashastra, written in Mauryan period, emphasised the need for forest administration. Ashoka went further, and his Pillar Edicts expressed his view about the welfare of environment and biodiversity.

"Happiness in this world and the next is difficult to obtain without much love for thedhamma, much self-examination, much respect, much fear of evil, and much enthusiasm. Beloved-of-the-Gods, King Piyadasi (Ashoka), speaks thus: Animals were declared to be protected parrots, mainas, aruna, geese, wild ducks, nandimukhas, gelatas, bats, queen ants, terrapins, boneless fish, vedareyaka, gangapuputaka, sankiya fish, tortoises, porcupines, squirrels, deer, bulls, okapinda, wild asses, wild pigeons, domestic pigeons and all four-footed creatures that are neither useful nor edible. Also protected were nanny goats, ewes and sows which are with young or giving milk to their young, and so are young ones less than six months old. Cocks are not to be caponised, husks hiding living beings are not to be burnt, and forests are not to be burnt either without reason or to kill creatures. One animal is not to be fed to another. Our king killed very few animals."

Ashoka's Seven Pillar Edicts

Coming to the present scenario in India with respect to environment, there are manyenvironmental issues in India.Air pollution,water pollution, garbage, and pollution of the natural environment are all challenges for India. The situation was worse between 1947 through 1995. According to data collection and environment assessment studies ofWorld Bankexperts, between 1995 through 2010, India has made one of the fastest progresses in the world, in addressing its environmental issues and improving its environmental quality. Still, India has a long way to go to reach environmental quality similar to those enjoyed in developed economies. Pollution remains a major challenge and opportunity for India.

The Indian Parliament enacted many laws to protect the environment. The Air Act was inspired by the decisions made at Stockholm Conference. TheBhopal gas tragedytriggered the Government of India to enact the Environment (Protection) Act of 1986. India has also enacted a set of Noise Pollution (Regulation & Control) Rules in 2000.In 1985, Indian government created theMinistry of Environment and Forests. This ministry is the central administrative organisation in India for regulating and ensuring environmental protection.Despite active passage of laws by the central government of India, the reality of environmental quality mostly worsened between 1947 to 1990. Most of Indian economy was nationalised and owned by India, and regulations were mostly ignored by state run enterprises. Rural poor had no choice, but to sustain life in whatever way possible. The state governments of India often regarded environmental laws enacted by the central government as a mere paperwork formality. Air emissions increased, water pollution worsened, forest cover decreased.Starting in the 1990s, reforms were introduced. Since then, for the first time in Indian history, major air pollutant concentrations have dropped in every 5 year period. Between 1992 to 2010, satellite data confirms India's forest coverage has increased for the first time by over 4 million hectares, a 7% increase.

The World Bank reported that, Environmental degradation costs India about $80bn a year, nearly 6 per cent of gross domestic product, in a report requested by the Indian environment ministry.The diagnostic report the first to assess the economic impact of environmental damage for the whole ofIndiaand its 1.3bn inhabitants shows the biggest problems to be air pollution, the degradation of crop lands, pastures and forests and poor water supply and sanitation.

There are three key policies relating to environmental protection in India. They are: The National Forest Policy, 1988 Policy statement for Abatement of Pollution, 1992 National Conservation Strategy and Policy Statement on Environment and Development, 1992

The Forest Rights Act enacted by the Indian Parliament in 2006 is a weapon of democracy in the forests of India. Millions of people live in and near India's forest lands, but have no legal right to their homes, lands or livelihoods. A few government officials have all power over forests and forest dwellers. The result is that both forests and people die. This Act recognises forest dwellers' rights and makes conservation more accountable.

But as the countrys population and economy continue to grow, the need to find solutions becomes more urgentevery day.Across India, concern is mounting over an ever growing list of environmental problems.More people means increased pressure on natural resources (from water to forests), while an economy in high-gear is leaving a trail of pollution thats affecting not only India, but the rest of the world too.

Deforestation in IndiaIndia is witnessing a rising demand for forest-based products. Thiscauses deforestation and encroachment into forest protected areas, which leads to a severe loss of natural resources.

It is estimated that total industrial round wood consumption in India could exceed 70 million cu.mper year by the end of the decade, while domestic supply would fall short by an estimated 14 million cu.m.

As the nation will have to depend heavily on imports to meet this growing demand, there is fear that this could result in loss of high conservation value forests and biodiversity elsewhere.

A thirst for palm oil

India is a big edible oil consumer. It is one of the three largest importers of palm oil in the world, along with EU and China. Of these imports, 95% come from Indonesia and Malaysia, causing negative social and environmental consequences in these exporting countries.

Conversion of natural forests for cultivating oil palm is a major threat to biodiversity and livelihoods in the tropics. Most of the lowland rainforest on the Indonesian island of Sumatra has already been lost, largely because of the clearance for oil palm and pulp wood plantations.

With the global demand for palm oil expected to increase from 28 million tonnes at present to about 50 million tonnes in 2030, there are very serious concerns that this will happen at the expense of biologically and economically important forests.Rainforests

Rainforestsareforestscharacterized by highrainfall, with annual rainfall between 250 and 450 cm. There are two types of rainforest:tropical rainforestand temperate rainforest.

Around 40% to 75% of all bioticspeciesareindigenousto the rainforests. It has been estimated that there may be many millions of species of plants, insects andmicroorganismsstill undiscovered in tropical rainforests. Tropical rainforests are called the "jewels of the Earth" and the "world's largest pharmacy", because over one quarter of naturalmedicineshave been discovered there.Rainforests are also responsible for 28% of the world'soxygen turnover, processing it throughphotosynthesisfromcarbon dioxideand consuming it through respiration.

Tropical rainforests provide timber as well as animal products such as meat and hides. Rainforests also have value as tourism destinations and for the ecosystem services provided. Many foods originally came from tropical forests, and are still mostly grown onplantationsin regions that were formerly primary forest. Also, plant derived medicines are commonly used for fever, fungal infections, burns, gastrointestinal problems, pain, respiratory problems, and wound treatment.

Tropicalandtemperate rainforestshave been subjected to heavyloggingand agricultural clearance throughout the 20th century and the area covered by rainforests around the world is shrinking. Biologists have estimated that large numbers of species are being driven toextinction(possibly more than 50,000 a year). Another factor causing the loss of rainforest is expanding urban areas.Littoralrainforest growing alongcoastalareas of easternAustraliais now rare due toribbon developmentto accommodate the demand forsea changelifestyles.

The forests are being destroyed at a rapid pace. Almost 90% ofWest Africa's rainforest has been destroyed. Since the arrival of humans,Madagascarhas lost two thirds of its original rainforest. At present rates, tropical rainforests inIndonesiawould be logged out in 10 years andPapua New Guineain 13 to 16 years.According toRainforest Rescue, a main reason for the increasing deforestation rate especially in Indonesia is the expansion ofoil palmplantations to meet the growing demand for cheap vegetable fats andbiofuels. In Indonesia,palm oilis already cultivated on nine million hectares and, together withMalaysia, the island nation produces about 85 percent of the worlds palm oil.

Several countries,notablyBrazil, have declared their deforestation a national emergency. Amazon deforestation jumped by 69% in 2008 compared to 2007's twelve months, according to official government data. Deforestation could wipe out or severely damage nearly 60% of theAmazon Rainforestby 2030, says a new report fromWWF.

Rainforest Destruction

In the past 50 years much of the rainforest in Africa and Asia has been destroyed. Large areas of rainforest are being cut down, often in order to remove just a few logs, and rainforest is being destroyed at double the rate of all previous estimates. Unfortunately this means that there is a very high rate of extinction, as the wildlife depending on the forest dies with it.

The main reasons for the destruction of the rainforests by human interference in the tropical regions are seen to be the following.

CATTLE RANCHING

Many rainforests in Central and South America have been burnt down to make way for cattle farming, which supplies cheap beef to North America, China and Russia. It is estimated that for each pound of beef produced, 200 square feet of rainforest is destroyed. In the past 20 years Costa Rica has lost the majority of its forests to beef cattle ranching. This is known as slash and burn farming and is believed to account for 50% of rainforest destruction.

LOGGING

This is believed to be the second largest cause of deforestation. Timber companies cut down huge trees such as mahogany and teak and sell them to other countries to make furniture. Smaller trees are often used for the production of charcoal. Vast areas of rainforest are cut in one go (clear felling) and the most valuable trees are selected for timber, leaving the others for wood chipping. The roads that are created in order to cut and remove the timber often lead to further damage.

AGRICULTURE

Much of the fruit, cereals and pulses we buy from tropical countries have been grown in areas where tropical rainforests once thrived. The forests are cut down to make way for vast plantations where products such as bananas, palm oil, pineapple, sugar cane, tea and coffee are grown. As with cattle ranching, the soil will not sustain crops for long, and after a few years the farmers have to cut down more rainforest for new plantations.

MINING

The developed nations relentlessly demand minerals and metals such as diamonds, oil, aluminium, copper and gold, which are often found in the ground below rainforests. The rainforests therefore have to be removed in order to extract them. Poisonous chemicals are sometimes used to separate the waste from the minerals, for example mercury, which is used to separate gold from the soil and debris with which it is mixed. These chemicals often find their way into rivers, polluting water supplies which local people depend on, killing fish and other animals that feed on them.

OIL COMPANIES

Rainforests are seriously affected by oil companies searching for new oil deposits. This is incredibly damaging as often large roads are built through untouched forests in order to build pipelines and extract the oil. This encourages settlers to move into hitherto pristine forests and start slash-and-burn farming or cutting more timber for sale or the production of charcoal.Once established, the oil pipelines which transport the oil often rupture, spouting gallons of oil into the surrounding forest, killing wildlife and contaminating the water supplies of local villages. The results can be seen in the case of Texaco and Conoco in the Latin American Amazon rain forests.

DAMS

The World Bank and large companies invest money in developing countries to build dams for the generation of electricity. This can involve flooding vast areas of rainforest. Dams built in rainforest areas often have a short life because the submerged forest gradually rots, making the reservoir water acidic, which eventually corrodes the dam turbines. The dams can also become blocked with soil washed down from deforested highlands in heavy rains. This can cause great problems, such as flooding. This is said to be the main reason behind the flash floods of Uttarakhand, which killed many people.

Deforestation in Indonesia and Thailand Deforestation occurs around the world, though tropical rainforests are particularly targeted. Countries with significant deforestation currently or in the recent past include Brazil, Indonesia, Thailand, the Democratic Republic of Congo and other parts of Africa, and parts of Eastern Europe, according to United Nations Environment Program collaborating center.Indonesia

Indonesia is a treasure chest of biodiversity; it is home to 10 -15 % of all known species of plants, mammals and birds. Orangutans, elephants, tigers, rhinoceroses, more than 1,500 species of birds and thousands of plant species are all a part of the country's ecological biodiversity.

As late as 1900, Indonesia was still a densely forested country: forests represented 84 percent of the total land area. Deforestation intensified in the 1970sand has accelerated further since then. The estimated forest cover of 170 million hectares around 1900 decreased to less than 100 million hectares by the end of the 20th century. In 2008, it was estimated thattropical rainforestsin Indonesia would be logged out in a decade. Of the total logging in Indonesia, up to 80% is reported to be performed illegally.

The mass destruction of Indonesia's rainforests and carbon-rich peat lands for palm oil and paper threatens this and is the main reason why Indonesia is one of the world's largest emitters of climate changing greenhouse gases. The lives of millions of Indonesians who depend on the forests for food, shelter and livelihoods are also changing beyond recognition as the forest disappears.

Large areas of forest in Indonesia have been cleared by large multinational pulp companies, such asAsia Pulp and Paper, and replaced by plantations. Forests are often burnt down by the farmers and plantation owners. Another major source of deforestation is thelogging industry, driven by demand from China and Japan. Agricultural development andtransmigration programsmoved large populations into rainforest areas, further increasing deforestation rates.

The Indonesian archipelago of about 17,000 islands is home to some of the mostbio diverseforests in the world. In 1900, the total forest represented 84% of the total land area. By 1950 plantations and smallholder plantings of tree crops still only covered a small area. The forest cover by that time is estimated to 145 million ha of primary forest and another 14 million ha of secondary and tidal forest. In the early 1970s Indonesia used this valuable resource to its economic benefit with the development of the country's wood-processing industries. From the late 1980s to 2000, production capacity has increased nearly 700% in thepulp and paper industries, making Indonesia the world's ninth largest pulp producer and eleventh largest paper producer.

InSumatratens of thousands of square kilometres of forest have been cleared often under the command of the central government who comply with multi-national companies to remove the forest.InKalimantan, from 19912014, large areas of the forest were burned because of uncontrollable fire causing atmospheric pollution across South-East Asia.

An estimated 73 percent of all logging in Indonesia is believed to be illegal. Private corporations, motivated by economic profits from local and regional market demands for timber, are culpable for deforestation. These agro-industrial companies often do not comply with the basic legal regulations by inappropriately employing cost effective yet environmentally inefficient deforestation methods such as forest fires to clear the land for agricultural purposes. Many corporations could circumvent the red tape, maximize revenue profits by employing illegal logging activities as lax law enforcement and porous law regulations in large developing countries like Indonesia undermine forestry conservation efforts.

In the social landscape, small-scale subsistence farmers in rural areas, who received minimal education, employ a basic method of slash-and-burn to support their agricultural activities. This rudimentary agricultural technique involves the felling of forest trees before a dry season and, subsequently, the burning of these trees in the following dry season to provide fertilizers to support their crop activities. This agricultural practice is repetitively employed on the same plot of land until it is denuded of its nutrients and could no longer suffice to support agricultural yields. Thereafter, these farmers will move on to occupy another plot of land and continually practice their slash-and-burn technique.This contributing social factor to deforestation reinforces the challenges faced by forestry sustainability in developing countries such as Indonesia.

On the political front, the Indonesian governmental role in curbing deforestation has largely been criticized. Corruption amongst local Indonesian officials fuels cynicism with regard to the governmental clampdown on illegal logging activities. In 2008, the acquittal of a proprietor for a timber firm, Adelin Lis, alleged for illegal logging further galvanized public opinion and drew criticisms at the Indonesian political institution.On the other hand, the Indonesian government grapples with the management of deforestation with sustainable urban development as rural-urban migration necessitates the expansion of cities. However, the lack of accountability to deforestation with pertinence to transmigration projects undertaken by the Indonesian government officials illustrates minimal supporting evidence to testify to considerations for forestry sustainability in their development projects. This further augments scepticism in the Indonesian government's credibility in efficiently and responsibly managing their urban development projects and forestry conservation efforts.

Annual primary forest cover loss, 20002012, for Indonesia as a whole and by island group (Sumatra, Kalimantan, Papua, Sulawesi, Maluku, Nusa Tenggara and Java and Bali). Dashed lines are linear fits to the data. Photograph: /Nature Climate Change

The companies which remove millions of hectares of forest land deny any allegations that they are involved in deforestation, and insist that they follow sustainable forest management practices, which is that they plant eucalyptus and acacia trees in the place of the forests they have felled. Thus the huge ecosystem is turned into a monosystem which does not support the wildlife it used to, i.e the elephants, the Sumatran tigers, orangutans. The rivers are turned into peat drainers which are unfit for consumption.

The plantations supply Britain and the world with toilet paper, biofuels and vegetable oil to make everyday foods such as margarine, cream cheese and chocolate, but scientists and environmental groups warn that one of the 21st century's greatest ecological disasters is rapidly unfolding.

Indonesia's deforestation has been accompanied by rising violence too. Many turned violent as communities that had lost their traditional forest fought multinational companies and security forces.

A single Canadian mining company is seeking to exploit 1.77m hectares for mining, logging and palm plantations. Large areas of central Sumatra and Kalimantan are being felled as coal, copper and gold mining companies move in. Millions of hectares of forest in west Papua are expected to be converted to palm plantations.Papuans, some of the poorest citizens inIndonesia, are being utterly exploited in legally questionable oil palm land deals that provide huge financial opportunities for international investors at the expense of the people and forests of West Papua.

Nine villages have been in conflict with the giant paper company April, which has permission to convert, with others, 450,000 hectares of deep peat forests on the Kampar Peninsula in central Sumatra. Because the area contains as much as 1.5bn tonnes of carbon, it has global importance in the fight against climate change. The locals accuse corrupt officials of illegally grabbing their land. April strongly denies involvement in corruption.

These developments are classed as 'growth' but what we are seeing is the collapse of communities of fisherfolk or farmers and increasing poverty. We are exchanging biodiversity for monocultures, local economies for global ones, small-scale producers are becoming labourers and community land is becoming corporate. This is the direction we are going.

Greenpeace and other groups accuse the giant pulp and palm companies of trashing tens of thousands of hectares of rainforest a year but the companies respond that they are the forest defenders and without them the ecological devastation would be worse. The companies accuse the local population of deforestation who employ slash and burn cultivation.

But now, there are some signs of hope. The heat is now on other large palm oil and paper companies after Asia Pulp and Paper (APP), one of the world's largest such companies, was persuaded by international and local Indonesian groups to end all rainforest deforestation and to rely solely on its plantations for its wood.

The company, which admits to having felled hundreds of thousands of acres of Sumatran forest in the last 20 years, had been embarrassed and financially hurt when other global firms including Adidas, Kraft, Mattel, Hasbro, Nestl, Carrefour, Staples and Unilever dropped products made by APP that had been made with rainforest timber.

These developments are classed as 'growth' but what we are seeing is the collapse of communities of fisherfolk or farmers and increasing poverty. We are exchanging biodiversity for monocultures, local economies for global ones, small-scale producers are becoming labourers and community land is becoming corporate. This is the direction we are going.

Thailand

Between 1945 and 1975 forest cover inThailanddeclined from 61% to 34% of the country's land area. Over the next 11 years, Thailand lost close to 28% of all of its remaining forests. TheThai Highlandsin Northern Thailand, the most heavily forested region of the country, were not subject to central government and settlement until the second half of the nineteenth century when British timber firms, notably theBombay Burmah Trading Corporationand theBorneo Company Limited, entered into the teak trade in the late 1880s and early 1890. The Royal Forest Department, created in 1896, sought to conserve the forests against the worst business practices of British, Thai, and Chinese timber firms who worked in the region.

During the twentieth century, deforestation in Thailand was driven primarily by agricultural expansion, althoughteakdeforestation happened as a direct result of timber-cutting. Much of Thailand's recent economic improvement can be attributed to increased agricultural production for export. The country was able to increase production by clearing much of their forests and converting them to cropland.

Currently, after assessing the extent of the damage, the Thai government is beginning to emphasize forest restoration.

Teak has long been the most profitable of the desirable tropical woods from this country, and even as late as 1988 teak generated US$20 million in revenue, despite a ban in 1973 of exports of teak wood. By 1985, demand for wood and wood products was more than five times the sustainable level (Hunsaker, 1996). Nevertheless, as desirable woods became more scarce, revenues from the forestry sector fell. Deforestation has been driven also by population growth, the expansion of agricultural land (much of it for export cash crops), land speculation, illegal logging, political intrigue and infighting, and the banking industry, which foreclosed on many farmers unable to make high-interest payments on loans, and driving them into the forest for survival.

In November of 1988 heavy rains washed away the soil of the deforested slopes, causing massive flooding. Villages and agricultural land were inundated, as well as many thousands of domestic animals, were killed. The government banned logging on January 14, 1989, by revoking all logging concessions. However, this tripled the price of timber in Bangkok, and unleashed an orgy of illegal logging. Landless peasants followed the logging roads, making substantial inroads on the forests by slash-and-burn agriculture. This was the death knell for Thailands forests. Virtually all of the primary forest in Thailand has now disappeared. The logging ban in Thailand also led Thai timber companies to make profitable deals with Laos, Cambodia and Myanmar, and they are now proceeding to transform timber-rich Myanmar into another Thailand. The first deal was signed between B and F Enterprises and the Myanmar locals in 1988, and 47 more followed within a few years (Hamilton & Chatterjee, 1991). Many of these deals are made, not with the central government, but with rebellious ethnic minority groups who do not recognize the central government.

To its credit, the Thai government has succeeded in greatly reducing fertility rates, has banned logging of natural forests, and has made some attempts at reforestation and resettlement of squatters, the latter with little success. This is mainly due to the vast corruption plaguing Thailand, its bureaucratic inefficiency and inertia, and the fact that the high government officials (mainly military officers) profit greatly from illegal logging and other activities facilitating or abetting deforestation. They show minimal interest in the plight of the impoverished rural populations or in the fate of Thailands forests. And so, the last great teak forests of the world are on their way to extinction. And Thailand, once a major exporter of timber, has essentially only secondary forest left and is now an importer of wood. In conclusion, the agri business firms, pulp and paper industries and timber logging industries have caused havoc in Indonesia and Thailand through deforestation. The companies have denied deforestation though and are reporting afforestation, when they are replacing the pristine forests by acacia, eucalyptus and palm plantations. This profit motivated business culture should be replaced by environmental consciousness and empathy towards the people depending on the forests for their livelihood. This cannot be achieved by the government policies alone, but should be a concerted effort by the global community as a whole. The multinational companies have the muscle to lobby with the government as well as evict or kill the locals who resist. Hence, this is only possible if the stake holders of those firms raise these issues and come up with a sustainable way.

References1. http://www.studymode.com/subjects/importance-of-business-ethics-in-modern-world-page1.html

2. http://www.theguardian.com/environment/2014/jun/29/rate-of-deforestation-in-indonesia-overtakes-brazil-says-study

3. http://www.rainforestconservation.org/rainforest-primer/4-case-studies-in-tropical-deforestation/c-south-and-southeast-asia/2-thailand/

4. http://kids.mongabay.com/elementary/501.html

5. http://wwf.panda.org/who_we_are/wwf_offices/india/india_environmental_problems/

6. http://www.forestrightsact.com/what-is-this-act-about

7. http://en.wikipedia.org/wiki/Deforestation_in_Thailand

8. http://en.wikipedia.org/wiki/Deforestation_in_Indonesia

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