BUS 101 - final ch. 11


Terms in this set (...)

By setting a common standard for all firms, government can take the cost of pollution control out of competition.
By setting _______, governments can take cost of pollution control out of competition
common standards
Governments can also provide _____ and offer systems for resolving disputes
economic incentives
Environmental Protection Agency (EPA), main agency charged with pollution control, was established in ____
In the United States, the federal government regulates in three major areas of environmental protection:
Air pollution
Water pollution
Land pollution (including solid and hazardous waste)
what is air pollution?
Occurs when more pollutants are emitted into the atmosphere than can safely be absorbed and diluted by natural processes
-A special problem of air pollution is acid rain (coal burning utilities)
-The efforts of the U.S. government to reduce acid rain illustrate some of the difficult trade-offs involved in environmental policy (problem occurs hundreds of miles from the source and sometimes across boarders)
what is water pollution?
Occurs when more wastes are dumped into waterways than can be naturally diluted and carried away
what is land pollution?
The contamination of land by both solid and hazardous waste
-Movement for environmental justice - efforts to prevent inequitable exposure to hazardous risks in disadvantaged communities
Superfund or CERCLA legislation?
Established in 1980 to fund to clean up the most dangerous toxic waste sites in the U.S.
Of 1,200 sites put on National Priority List, by 2008 only 332 of them had been fully cleaned up
As many of 10,000 other sites might need clean-up
Program is regarded as public policy failure
what are environmental standards?
Standard allowable levels of various pollutants are established by legislation or regulatory action
Also called command-and-control
Can be environmental quality standard or emission standard
what are market-based mechanisms?
Based on the idea that the market is a better control than extensive standards that specify precisely what companies must do
-tradable permits
-Emissions charges or fees
-Government incentives (they only purchase from firms that meet pollution standards)
what are tradable permits?
allows businesses to buy and sell the right to pollute, a process known as cap-and-trade
what is information disclosure?
The government encourages companies to pollute less by publishing information about the amount of pollutants individual companies emit each year
-Also called regulation by publicity or regulation by embarrassment
what is civil and criminal enforcement?
The threat of fines or even prison can be an effective deterrent to corporate outlaws who would otherwise degrade the environment
-European regulators have actively pursued environmental criminals
-U.S. Sentencing Commission has established guidelines for sentencing environmental wrongdoers
Environmental regulations establish ______ for environmental performance
minimum standards
what is the greening of management?
voluntarily moving beyond compliance to improve environmental performance in all operational areas
what are three reasons for the greening of management?
Gain competitive advantage
Gain legitimacy
Moral commitment to ecological responsibility
what are the stages of corporate environmental responsibility?
pollution prevention - Focuses on minimizing or eliminating waste before it is created
product stewardship - Managers focus on all environmental impacts associated with the full life-cycle of a product
clean technology - Businesses develop innovative, new technologies that support sustainability
what is ecologically sustainable organization?
company that operates consistently with principles of sustainable development
-Is an "ideal," absolute standard against which real organizations can be measured
-Some visionary companies are trying to achieve this
_____ and widespread movement among many businesses and other social institutions will be needed for ESOs to succeed
supportive government policies
what are environmental partnerships?
Voluntary, collaborative partnerships with environmental organizations and regulators to achieve specific objectives
-Draw on the unique strengths of the different partners to improve environmental quality or conserve resources
Organizational elements of many proactive green companies include...
Top management involvement in sustainability (Chief Sustainability officer CSO)
Line manager involvement
Codes of environmental conduct
Cross-functional teams (different departments)
Rewards and incentives
Environmental audits to track progress
-Publish combined "sustainability reports" integrating social, economic and environmental performance
what are environmental audits?
A way for green companies to track their progress toward meeting environmental goals
More recently, many firms have moved to integrate their social and environmental reporting into a single _____
sustainability report
how does cost saving put companies at a competitive advantage?
Companies that reduce pollution and hazardous waste, reuse or recycle materials, and operate with greater energy efficiency can reap significant cost savings
how does product differentiation put companies at a competitive advantage?
Companies that develop a reputation for environmental excellence and that produce and deliver products and services with concern for their sustainability can attract environmentally aware customers
how does technological innovation put companies at a competitive advantage?
Technological innovation can lead to imaginative new methods for reducing pollution and increasing efficiency
how does reduction of regulatory risk put companies at a competitive advantage?
Companies that are proactive with respect to their environmental impacts are often better positioned than their competitors to respond to new government mandates
how does strategic planning put companies at a competitive advantage?
Companies that cultivate a vision of sustainability must adopt sophisticated strategic planning techniques
Being able to continue their activities indefinitely, without altering the carrying capacity of the earth's ecosystem, is a characteristic of:
Ecologically sustainable organizations
Some researchers believe that business firms moving towards ecological sustainability results in:
competitive advantages
Rewards and incentives are effective ways to make business people consider the environmental impacts of their actions