Sustainability Issues

1
CHAPTER 11

• Sustainability Issues

2
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

3
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.

4
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

5
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.

6
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

7
Environmental Legislation

• Clean Air Act
• Federal Insecticide, Fungicide, and Rodenticide
  Act
• Endangered Species Act
• Toxic Substances Control Act
• American Clean Energy Act

8
Environmental Legislation

• Emergency Planning and CommunityRight-to-Know
  Act
• Toxic Release Inventory
• Pollution Prevention Act
• Food Quality Protection Act

9
Alternative Energy

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

10
Business Response to Environmental Issues

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

11
Other Environmental Initiatives

• Emissions reduction
• Socially responsible buying

12
Stakeholder Assessment

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

13
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

14
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.