Chapter 11:

Environmental Issues

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.

Global Environmental Issues

Environment Probably associate the term environment with nature including: Wildlife Tress Oceans Rivers Mountains Prairies

Global Environmental Issues

Sustainability The potential for long-term well-being of the natural environment, including all biological entities as well as interaction among nature and individuals, organizations, and business strategies.

Global Environmental Issues

The most controversial and far-reaching environmental issue include:
Air pollution Acid rain Global warming

(CERES) Coalition for Environmentally Responsible Economies

Union of businesses, consumer group, environmentalists and other stakeholders, established a set of goals for environmental performance.

Air pollution
Sources Stationary sources Mobile sources Natural sources

Acid rain
The nitrous oxides and sulfur dioxides emitted from manufacturing facilities react with air and rain, result acid rain.

Cleaning up emission from factories and cars is one way to help reduced acid rain.

Global Warming
Concentration of greenhouse gases like methane and carbon dioxide in the atmosphere are accelerating a warming of the planet.

KYUTO PROTOCOL
A treaty among industrialized nations to slow global warming

Cap-and Trade Program

A program that sets carbon emissions limits for businesses, countries, or individuals.

WATER ISSUES
Water is emerging as the most important and contested resource and its important to human survival.

Water Pollution

Water Pollution

results from the dumping of sewage and toxic chemicals results from the dumping sewage and from manufacturing into rivers andof oceans .

toxic chemicals from manufacturing into rivers and oceans.

Water Quantity

Water Quantity Availability of fresh water

Availability of fresh water

Land Pollution
What is Land Pollution?
Land pollution is the degradation of earths land surface often caused by human activities and their misuse of land resources.

Land Pollution How do we stop land pollution?

Use 3Rs

Re-use
Buy item that are sold in reusable containers and buy biogradable products

Reduce
Try using products that dont have a lot of packaging to throw away

Recycle
Recycle items that can be made into chair, bags,house decoration, accesories and etc.

Deforestation
Deforestation is the state of being clear of trees.

-Tress are cut down to use as firewood and charcoal fot heat -They are also cut down to build materials and create urban product such as furniture and paper products

Destroyed Habitats
Global Warning/ Climate Change Soil Erosion Disruption of the water cycle

Use e-mail since it saves paper.

Urban Sprawl
The uncontrolled expansion of urban areas.

Causes of URBAN SPRAWL

As cities develop and become crowded, less openspace is available Many people wish to have larger homes and yards that crowded cities dont offer

Solution:
Bike/walk ways can be widened to encourage people to exercise. This lead to less carbon in our atmosphere Educate the people with information about this issue, less people wouldnt want urban sprawl to continue. Build eco-friendly houses and communities(ex. Reducing water, using recycled lumber, energy effient houses).

Biodiversity
Short for biological diversity- the variety of living things.

Example:

Everyone of us depends on biodiversity in some ways: The air we breath, the water we drink, the food we eat even medicine we use. If species have become extinct, we can never benefit from what they might offer. Species depend on each other. If one species die, so does another, and soon enough there would hardly be any species at all

How to prevent loss in Biodiversity

Be careful not to buy coral, ivory, or tortoise shell products. They come from endangered species. Recycle old newspaper and buy recycled paper products. You should always use eco-friendly cleaning products.

Genetically Modified Organism

Created through manipulating plants and animals genes so as to produce a desired effect like resistance to pets, and viruses, drought resistance or high crop yield.

PHILIPPINE ENVIRONMENTAL LAWS

PHILIPPINE ENVIRONMENTAL LAWS PHILIPPINE ENVIRONMENTAL LAWS

Presidential Decree (PD) 1586: Philippine Environmental Impact Statement System

This law requires private corporations, firms or entitities including agencies and instrumentalities including agencies and instrumenatalities of government to prepare an environmental impact statement (EIS) for every proposed project and undertaking which significantly affect the quality of the environment.

PHILIPPINE ENVIRONMENTAL LAWS

Republic Act (RA) 8749: Clean Air Act of 1999
Provides for a comprehensive air quality management policy and program which aims to achieve and maintain healthy air for all Filipinos

The Clean Air Act covers all potential sources of air pollution: (1)Mobile Sources (2)Point or Stationary Sources (3)Area Sources

PHILIPPINE ENVIRONMENTAL LAWS

RA 9275: Philippine Clean Water Act of 2004

The State shall pursue a policy of economic growth in a manner consistent with the protection, preservation and revival of the quality of our fresh, brackish and marine waters. To achieve this end, the framework for sustainable development shall be pursued.

PHILIPPINE ENVIRONMENTAL LAWS

RA 6969: Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990
It is the policy of the State to regulate, restrict or prohibit the importation, manufacture, processing, sale, distribution, use and disposal of chemical substances and mixtures that present unreasonable risk and/or injury to health or the environment; to prohibit the entry, even in transit, of hazardous and nuclear wastes and their disposal into the Philippine territorial limits for whatever purpose; and to provide advancement and facilitate research and studies on toxic chemicals.

PHILIPPINE ENVIRONMENTAL LAWS

RA 7942: Philippine Mining Act of 1995.

All mineral resources in public and private lands within the territory and exclusive economic zone of the Republic of the Philippines are owned by the State. It shall be the responsibility of the State to promote their rational exploration, development, utilization and conservation through the combined efforts of government and the private sector in order to enhance national growth in a way that effectively safeguards the environment and protect the rights of affected communities.

PHILIPPINE ENVIRONMENTAL LAWS

RA 9003: "Ecological Solid Waste Management Act of 2000."
Provides the legal framework for the countrys systematic, comprehensive and ecological solid waste management program that shall ensure protection of public health and the environment. It underscores, among other things, the need to create the necessary institutional mechanisms and incentives, as well as imposes penalties for acts in violation of any of its provisions.

ALTERNATIVE ENERGY

WHAT IS ALTERNATIVE ENERGY?

Refers to the energy source that have no undesired consequences such foe example fossil fuels or nuclear energy. Alternative energy sources are renewable and are thought to be free energy sources.

ALTERNATIVE ENERGY
What are Alternative Energy?
Wind Power Solar Power Hydro Power Geothermal Nuclear Power Biofuels

ALTERNATIVE ENERY
WIND POWER
Conversion of wind energy into a useful form of energy such as using wind turbines, windmills and wind pumps. Great Plaints of United States Pickens's Plan by T. Boone Pickens Vestas Wind System by a Danish Company

ALTERNATIVE ENERGY
Geothermal Power
Energy comes from the natural heat inside the earth which is extracted by drilling into steam beds.

ALTERNATIVE ENERGY
SOLAR ENERGY The usage of light and heat from the sun in generating electricity Cloudy day are not necessarily a problem as the UV rays needed to generate power filler through clouds.

ALTERNATIVE ENERGY
Nuclear Power
Is the use of exothermic nuclear process, to generate useful heat and energy. As the production of nuclear power gives of radiation, the safety of worker and the transport of nuclear waste are prime concern.

ALTERNATIVE ENERGY
Biofuels
Fuels derived from organic materials like corn, sugarcane, vegetable oil and even trash. Reducing cars carbon output General Motors Chevrolet Volt

ALTERNATIVE ENERGY
Hydropower
Is power derived from the energy of palling water and running water. Three Gorges Dam in China resulted in reducing green house gas.

Business Response to Sustainability Issues

Many businesses adopted triple-bottom-line approach: Social Performance Environmental Performance (increased goodwill, money savings from being more efficient and less wasteful) Economic Performance (still the bottom line) Is going green cost-effective for companies? Studies suggest that improving a companys environmental performance can increase revenues and reduce costs.

Positive Links Between Environmental and Economic Performance

Business Response to Sustainability Issues

Corporate efforts to respond to environmental issues focus on: Green Marketing Recycling Emissions Reductions Socially Responsible Buying

Business Response to Sustainability Issues

Green Marketing strategic process involving stakeholder assessment to create meaningful long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment. Marketing of products that are assumed to be environmentally safe. BENEFITS:
High brand recognition Larger consumer base Better investor relations Maximum attraction in the market Innovation in products and operations

Business Response to Sustainability Issues

GREEN MARKETING
Companies that practice Green Marketing
New Belgium Brewery, Fort Collins, Colorado Use natural lighting and evaporative coolers Buildings were constructed of pine trees (killed by invasive beetles) Wind powered for over a decade Uses waste to produce on-site methane gas Encourage employees to bike to work Produces organic beer

Business Response to Sustainability Issues

GREEN MARKETING
eBay Eco-Initiatives
Consumers exchange and reuse goods rather than throwing them away, thereby lengthening the lifespan of the products so they dont wind up as trash

SM Supermalls
Some SM supermalls in the Philippines are already implementing no use of plastic bags policy, instead they offer reusable eco-bags that can be recycled, thus eliminating the use of plastics

Business Response to Sustainability Issues

GREEN MARKETING
Greenwashing involves misleading a consumer into thinking that a product or service is more environmentally friendly than it is. Over the past years WALMART has proclaimed to "go green" with a sustainability campaign. However, according to the Institute For Local Reliance (ILRS), Walmarts sustainability campaign has done more to improve the companys image than the environment. According to the ILRS, Walmart routinely donates money to political candidates who vote against the environment. The retail giant responded to these accusations by stating "that it is serious about its commitment to reduce 20 million tons of greenhouse gas emissions by 2015".

Business Response to Sustainability Issues

RECYCLING INITIATIVES
Recycling the reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse. NBB recycles by using the waste from beer production to produce methane gas that powers its facilities Gills, largest onion processor, uses onion waste to make 600 kilowatts of electricity and cattle feed. Coca-cola reduces water use, and reuses glass bottles to their soft drinks products

Strategic Implementation of Environmental Responsibility

Multinational oil company, Chevron faces $27B in damages and fines in a lawsuit.
Improperly treated oil drilling pits that they abandoned decades ago Many of the pits are still open today and leach chemicals into the air and water supplies, harming people and animals Claims that it was the governments responsibility to clean up the drilling sites, but government alleged that Chevron acted irresponsibly

Proactive firms develop strategic management programs that view the environment as an opportunity for advancing organizational interests.

Strategic Implementation of Environmental Responsibility

Low Commitment
Deals only with existing problems

Medium Commitment
Attempts to comply with environmental laws

High Commitment
Has strategic programs to address environmental issues

Makes only limited plans for anticipated problems

Fails to consider stakeholder environmental issues Operates without concern for long-term environmental impact

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

Views environment as an opportunity to advance the business strategy

Consults with stakeholders about their environmental concerns Conducts an environmental audit to assess performance to assess performance and adopts intl standards

Strategic Implementation of Environmental Responsibility

Stakeholder Assessment also stakeholder analysis, is an important part of high-commitment approach to environmental issues. This requires: Acknowledging and actively monitoring environmental concerns of stakeholders All risk-related claims should be evaluated, before a firm decides to take action on or ignore particular issue To make accurate assumptions about stakeholder interests, managers need to: conduct research Assess risks Communicate with stakeholders about their concerns

Strategic Implementation of of Strategic Implementation Environmental Responsibility Environmental Responsibility

Risk in aa high-commitment RiskAnalysis Analysisnext nextstep step in high-commitmentresponse response to environmental isis possible to environmentalconcerns. concerns.Through Throughthis, this,itit possible to assess with business to assessenvironmental environmentalrisks risksassociated associated with business decisions. decisions. Real difficulty measuring costs benefits Real difficultyisis measuringthe the costsand and benefitsof of environmental environmentaldecisions. decisions. Continue evaluate the latest info and maintain Continueto to evaluate the latest info andto to maintain communication all stakeholders. communicationwith with all stakeholders. Key decision between the amount of investment Key decisionisis between the amount of investment required reduce risk of damage and the amount requiredto to reducethe the risk of damage and the amount of risk acceptable in stakeholder of risk acceptable in stakeholderrelationships. relationships.

The Strategic Environmental Audit

Organizations that are highly committed to environmental responsibility may conduct an audit of their efforts and report the results to all interested users. They may also wish to use globally accepted standards such as ISO 14000 a comprehensive set of environmental standards that encourage a cleaner, safer, and healthier world. Social responsibility entails responding to stakeholder concerns about the environment, and many firms are finding creative ways to address environmental challenges.

Chapter 11:

Environmental Issues
ANDAL, Yzalare Trish ANSELMO, Anne LACSON, Kristine Glo MATA, Richard SISON, Alyanna