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MAN 4701 Ch.11

Terms in this set (64)

Sustainability
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.
-Includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment.
-Seeks to minimize a business's negative impact on the natural environment while maximizing its positive impact
Reasons why Sustainability has become a major issue for organizations:
-Sustainable business practices can result in competitive advantageous
-As consumers become more aware of environmental issues, their power over organizations is increasing
-Sustainable organizations are more likely to have their brand associated with positive concepts such as social value and product quality
-Organizations are using sustainability to differentiate themselves from competitors and to market their goods and services
The most significant environmental issues facing business and society
Air pollution, acid rain, global warming, water pollution and water quantity, land pollution, waste management, deforestation, urban sprawl. biodiversity, and genetically modified foods.
Atmospheric Issues
Air pollution, acid rain, global warming, and pollution emitted by coal.
Air pollution typically arises from:
-stationary sources such as factories and power plants
-mobile sources such as cars, trucks, planes, and trains
-natural sources such as windblown dust and volcanic eruptions
The World Health Organization (WHO)
-Has issued standardized safe levels of particulate matter (PM), which are used to determine whether a city's pollution is considered dangerous.
-PM=2.5 are the most dangerous to public health
High concentrations of 2.5 PM can cause:
Shorter life spans, chronic respiratory problems (asthma, bronchitis, allergies) in humans and animals, reduce visibility
Acid Rain
-Nitrous oxides and sulfur dioxides emitted from manufacturing facilities react with air and rain
-Corrodes paint and deteriorates stone
-deaths of valuable forests and lakes in North America and Europe
-cleaning up emissions from factories and cars helps reduce this
Two of the largest greenhouse gas emitters:
United States and China
Hottest Years on Record
1. 2010
2. 2005
3. 1998
Kyoto Protocol
A treaty among industrialized nations aimed at slowing global warming
Climate Change Strategy
-Greenhouse Gas Reduction
-Cap and Trade Program
-Proactive Business Practices
Greenhouse Gas Reduction
A commitment to reduce carbon emissions by a certain percentage
Cap-and-Trade Program
Set emissions limits (caps) for businesses, countries, or individuals
-Companies are given a certain amount of carbon they are allowed to emit, and to legally emit anything beyond that limit, a company must purchase carbon credits from another company that did not pollute as much
Proactive Business Practices
Occurs when businesses proactively adopt business practices to address sustainability before there is a call for them
The most important and contested resource of the 21st century
water
Water Pollution
Results from the dumping of sewage and toxic chemicals from manufacturing into rivers and oceans; from oil and gasoline spills; and from the burial of trash and industrial waste in the ground where it can contaminate underground water supplies.
Pollutants can come from:
Bacteria, mercury, phosphorus and nitrogen, and low levels of dissolved oxygen from the decomposition of organic materials
Land Pollution
Results from the dumping of residential and industrial waste, strip mining, and poor forest conservation
Effects of land pollution
Health problems in humans, jeopardizes wildlife habitats, causes erosion, alters watercourses (leads to flooding), and can eventually poison groundwater supplies.
Rainforests serve to:
Regulate temperatures and weather patterns, absorb carbon dioxide, and maintain water supplies
Forest Stewardship Council (FSC)
A nonprofit organization comprised of loggers, environmentalists, and sociologists.
-being certified through this helps companies indicate to consumers and stakeholders that they are committed to preserving forest resources, are focused on social responsibility, and hold a long-term perspective of environmental management.
Facts about Global Defrostation
pg 374
Table 11.3
Urban Sprawl
Began in the U.S. with the post WWII building boom that transformed the nation from primarily low-density communities designed to accommodate one-car households, bicyclists, and pedestrians to large scale suburban developments at the edges of established towns and cities.
Genetically Modified Organisms (GMO)
Organisms created through manipulating plant and animal DNA so as to produce a desired effect like resistance to pests and viruses, drought resistance, or high crop yield.
Environmental Protection Agency (EPA)
The most influential regulatory agency that deals with environmental issues and enforces environmental legislation in the United States
-An independent agency that establishes and enforces environmental protection standards, conducts environmental research, provides assistance in fighting pollution, and assists in developing and recommending new policies for environmental protection
-Is empowered to file civil charges against companies that violate the law
The Environmental Protection Agency is charged with ensuring:
-protecting Americans from significant risks to their health and to the environment
-managing environmental risks based on the best scientific information available
-enforcing federal laws protecting human health and the environment fairly and effectively
-ensuring environmental protection is an integral consideration in U.S. policies
-ensuring access to accurate information sufficient to all parts of society
-ensuring environmental protection contributes to diverse, sustainable, and economically productive communities and ecosystems
Strategic goals of the Environmental Protection Agency
1. Taking action on climate change and improving air quality
2. Protecting America's waters
3. Cleaning up communities and advancing sustainable development
4. Ensuring the safety of chemicals and preventing pollution
5. Enforcing environmental laws
Clean Air Act
A comprehensive federal law that regulates atmospheric emissions from natural, stationary, and mobile sources. The law established national air quality standards as well as standards for significant new pollution sources emitting hazardous substances. Authorized the EPA to establish the National Ambient Air Quality Standards to protect public health and the environment
National Environmental Policy Act (1969)
Established national environmental policy, set goals, and provided a means or implementing the policy; promotes efforts to prevent damage to the biosphere and to stimulate human health and welfare, established a council on Environmental Quality
Occupational Safety and Health Act (1970)
Ensures worker and workplace safety by requiring employers to provide a place of employment free from health and safety hazards
Federal Insecticide Fungicide, and Rodenticide Act (1972)
Provides for federal control of pesticide distribution, sale, and use; requires users to register when purchasing pesticides
Endangered Species Act (1973)
Established a conservation program for threatened and endangered plants and animals and their habitats; prohibits the import, export, interstate, and foreign commerce or any action that results in a "taking" of a listed species or that adversely affects habitat
An Endangered Species:
Is a species that is in danger of extinction, whereas a threatened species is one that may become endangered without protection
Safe Drinking Water Act (1974)
Protects the quality of drinking water in the United States; authorized the EPA to establish water purity standards and required public water systems to comply with health-related standards
Toxic Substances Control Act (1976)
Empowered the EPA to track industrial chemicals currently produced or imported into the United States; authorized the EPA to require reporting or testing of chemicals and to ban the manufacture and import of chemicals that pose an unreasonable risk.
Resource Conservation Recovery Act (1976)
Empowered the EPA to control the generation, transportation, treatment, storage, and disposal of hazardous waste
Clean Water Act (1977)
Authorized the EPA to set effluent standards on an industry-wide basis and to continue to set water quality standards for all contaminants in surface waters; made it unlawful for any person to discharge any pollutant from a point source into navigable waters without a permit
Comprehensive Environmental Response, Compensation, and Liability Act (1980)
Established prohibitions and requirements concerning closed and abandoned hazardous waste sites; authorized a tax on the chemical and petroleum industries to establish a "superfund" to provide for cleanup when no responsible party could be identified
Superfund Amendments Reauthorization Act (1986)
Amended the Comprehensive Environmental Response, Compensation, and Liability Act to increase the size of the superfund; required superfund actions to consider the standards and requirements found in other state and federal environmental laws and regulations; provided new enforcement authority and tools
Emergency Planning and Community Right-to-Know Act (1986)
Enacted to help local communities protect public health and safety and the environment from chemical hazards; requires each state to appoint a State Emergency Response Commission (SERC) and to establish Emergency Planning Districts
Oil Pollution Act (1990)
Requires oil storage facilities and vessels to submit plans detailing how they will respond to large spills; requires the development of area contingency plans to prepare and plan for responses to oil spills on a regional scale
Pollution Prevention Act (1990)
Promotes pollution reduction through cost-effective changes in production, operation, and use of raw materials and practices that increase efficiency and conserve natural resources, such as recycling, source reduction, and sustainable agriculture
Food Quality Protection Act (1996)
Amended the Federal Insecticide Fungicide, and Rodenticide Act and the Federal Food, Drug, and Cosmetic Act to change the way the EPA regulates pesticides; applies a new safety standard-reasonable certainty of no harm-to all pesticides used on foods
Beaches Environmental Assessment and Coastal Health Act (2000)
Amended the Clean Water Act to include provisions decreasing the risks of illness due to using the nation's recreational waters
Energy Policy Act (2005)
Addresses the way energy is produced in the United States in terms of energy efficiency, renewable energy, oil and gas, coal, Tribal energy, nuclear matters and security, vehicles and motor fuels, hydrogen, electricity, energy tax incentives, hydropower and geothermal energy, and climate change technology
American Clean Energy Act (2009)
Seeks to create clean energy jobs; more energy independence; reduce greenhouse gas emissions; and lay the groundwork for a clean energy economy
Alternative Energy
wind, geothermal, solar, nuclear, biofuels,hydropower
Geothermal Energy
Comes from the natural heat inside the earth, which is extracted by drilling into steam beds
Biofuels
Are derived from organic materials like corn, sugarcane, vegetable oil, and trash
Hydropower
uses water as energy. It is the largest form of renewable energy
Sustainable Opportunities for Economic Performance
-differentiation of products
-cost of energy (lowering it)
-relationships with customers
-employee loyalty
-community relations
pg. 390
Green Marketing
A strategic process involving stakeholder assessment to create meaningful long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment
Greenwashing
Misleading a consumer into thinking that a product is more environmentally friendly than it is
International Organization for Standardization
-establishes labeling guidelines
-prohibits vague and misleading claims as well as unverifiable ones such as "environmentally friendly" and "non-polluting."
Strategic Approaches to Environmental Issues
Low Commitment
Medium Commitment
High Commitment
Low Commitment
-deals only with existing problems
- makes only limited plans for anticipated problems
-fails to consider stakeholder environmental issues
-operates without concern for long-term environmental impact
Medium Commitment
-attempts to comply with environmental laws
-deals with issues that could cause public relations problems
-views environmental issues from a tactical, not a strategic, perspective
-views environment as more of a threat than an opportunity
High Commitment
-has strategic programs to address environmental issues
-views environment as an opportunity to advance the business strategy
-consults with stakeholders about their environmental concerns
-conducts an environmental audit to assess performance and adopts international standards
Recycling
The reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, by many organizations for reuse.
-it is one of the country's greatest sustainability success stories.
Stakeholder Analysis
This process requires acknowledging and actively monitoring the environmental concerns of all legitimate stakeholders.
-is an important part of a high-commitment approach to environmental issues
To make accurate assumptions about stakeholder interests, managers need to:
conduct research, assess risks, and communicate with stakeholders about their respective concerns
ISO 14000
A comprehensive set of environmental standards that encourage a cleaner, safer, and healthier world.
-developed by the International Organization for Standardization
Strategic Sustainability Audit Checklist
1. Does the organization show a high commitment to a strategic environmental policy?
2. Do employees know the environmental compliance policies of the organization?
3. Do suppliers and customers recognize the organization's stand on environmental issues?
4. Are managers familiar with the environmental strategies of other organizations in the industry?
5. Has the organization compared its environmental initiatives with those of other firms?
6. Is the company aware of the best practices in environmental management regardless of the industry
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