MAN 20005Lecture 6

Ethics and the Environment – Sustainable

Development and Science

Updated 3.10

“Earth provides enough to satisfy every man’s need, but not every

man’s greed.”

–Mahatma Gandhi

The Natural Environment as a Stakeholder

• The Environment is a stakeholder without a “voice”• Human will only consider the natural environment when

the consequences impacts on firm or the individual• Current world population – more than 6 billion people,

living on 17% of earth surface• Population growth causes ever scarcity in resources• Lead to the need for environmental ethic – human as part

of the natural community rather than managers of it.• The value places limits on human activities (e.g.,

uncontrolled resource use), that may adversely affect the natural community.

• Emphasizes human domination over nature

• views non-human environment as a bundle of natural resources to be managed and exploited for maximal human gain.

• The ecosystems have only instrumental value, not intrinsic worth.

Anthropocentrism value

2 main problems resulting from the anthropocentic value system

1) Overpopulation Why do we feel we need more children? •Cultural •Lack of education •Sense of power for men •Sense of security in old age

Problem with Anthropocentrism

2) Preoccupation with possession, power and ambition

Why do we feel we need more material goods ?

• Status • Missing non-material goals

and spiritual values in life • Disconnection of humans

from the natural world • media manipulation

 A sustainable ethic is an environmental ethic by which people treat the earth as if its resources are limited.

ExampleIf a fuel shortage occurs, how can the problem be solved in a way that is consistent with a sustainable ethic? The solutions might include finding new ways to conserve oil or developing renewable energy alternatives. A sustainable ethic attitude in such problem would be that if drilling for oil damages the ecosystem, then that damage will affect the human population as well.

Sustainable Ethics

Overcoming Anthropocentrism problem with Sustainable Ethic

Individual Effort•Apply sustainable ethics in one’s personal, professional and civic life •Re-connect emotionally to the natural world •Live simply so others may simply live •Welcome opportunity to conserve the earth’s recourses

Business •Define an universal business ethic •Adopt and live by a set of principles (Code of Conduct & Ethics)•Make the transition from an extractive economy to an organic economy. •Increase efficiency and design for zero discharge.

Community, Nation and International •Change justice system to protect the natural world besides guaranteeing democracy, individual freedom and rights to property

•Curbing population growth - Forced sterilization, birth control education

•Economic pressure – taxation or subsidies

Technological advancement and Environment Conservation

Compact Fluorescent Lights (CFL): Use ¼ the electricity for same light, last 10x as long

Light-Emitting Diodes (LED): 2x as efficient as CFL, last 10x as long

Wind energy: cheapest energy (3.9 cents/Kwh)

Photovoltaics (PV) : Space consuming,

price needs to drop 50-75 percent to be

competitive

Zero net energy building

Automobiles battery or fuel cell power

PV Recharging

Station

Inter-Countries Effort

CO2 emission

Global warming

Weather change and disaster

Kyoto Protocol• An international agreement

linked to the UN Framework Convention on Climate Change.

• It sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions

• These amount to an average of 5% against 1990 levels over the 5 year period from 2008 to 2012.

• The Protocol commits country to comply.

• Recognizing that developed

countries are principally responsible for the current high levels of GHG emissions in the atmosphere as a result of more than 150 years of industrial activity, the Protocol places a heavier burden on developed nations under the principle of “common but differentiated responsibilities.”

Mechanism used by Kyoto

Emissions trading •known as “the carbon market" •countries have accepted targets for limiting or reducing emissions. •These targets are expressed as levels of allowed emissions, or “assigned amounts,” over the 2008-2012 commitment period. •Countries are allowed to “sell” the permitted but not “used” excess capacity to others•Treated carbon as a commodity

Clean Development Mechanism (CDM) •allows a country with an emission-reduction or emission-limitation commitment to implement emission-reduction project in developing countries eg : rural electrification project using solar panels or introducing energy-efficient boilers.•Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2.•Gives industrialized countries some flexibility in how they meet their emission or limitation targets. Joint implementation (JI)•allows a countries who meet the emission limitation to earn emission reduction units (ERUs), each equivalent to one tonne of CO2

Environmental Auditing

• Periodic, objective and documented assessment of an organization’s operations compared to audit criteria

• Allows management a measure of ensuring that they are in compliance with environmental regulations

• Greenpeace• Sierra Club• Environmental Defense Fund• Friends of the Earth

Environmental NGOs

How company can contribute to the Natural Environment

By focusing on environmentally friendly strategies, firms are able to market their goods as ecofriendly which helps differentiate their products

– Strategy 1: Ecoefficency– Strategy 2: Beyond Compliance Leadership– Strategy 3: Ecobranding– Strategy 4: Environmental Cost Leadership

Triple Bottom Line• 3BL – ‘People, Planet, Profit’

• Focuses on the financial, social, and environmental performance of the company

• Centers on the vested interests of all stakeholders instead of focusing solely on the interest of the shareholders

Worldwide Environmental Policy

• Stated commitment to :– Operating beyond compliance– Maintaining an environmental accountability structure– Integrating environmental goals– Striving for zero waste– Utilizing innovative technologies– Fostering an environmental ethic– Building relationships with appropriate stakeholders– Enhancing corporate social responsibility

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