Slide- CH 14

• Environmental issues


  Confront virtually all aspects of the corporation, from input of resources to manufacturing process, workplace conditions through to the way products are packaged and sold
• Managers


  Must cope with planning, organizing, leading, and controlling all the aspects of the environmental issue
• Commons


  Any resource used as though it belongs to all
• Environmental ethic


  Set of values or principles that govern a corporation's practices relating to the environment
• Sustainable Development


  Development ensuring that the use of resources and the impact on the environment today does not damage prospects for the use of resources or the environment by future generations
• Business sustainable development


  Adopting business strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining, and enhancing the human and natural resources needed in future
• Environmental concerns in business and society

  • Acid rain
  • Air pollution
  • Ecosystems
  • Energy production and consumption
  • Nature and wildlife
  • Ozone
  • Pollution
  • Waste management
  • Water quality
  • Climate change / global warming
• Government's influence


  • Extensive government involvement exists through public policy formulation and the regulation of all aspects of the natural environment
  • Government departments and agencies established to regulate the activities of corporations and assist corporations in meeting environmental performance targets
• Environmental non-governmental organizations (ENGOs)

  Groups that hold shared values or attitudes about the challenges confronting the natural environment and advocate for changes to improve the condition of the environment
• Why do ENGOs target some firms?

  • Firm is the source of the environmental impact
  • Extent of the consequences of the firm's actions
  • Denser relationships among firm's ENGOs
  • Larger the firm
  • Greater influence of the firm within their industry
  • Previous interactions with ENGO
  • Closeness of the firm to consumers in the supply chain
  • Firm's brands are well known
• Standard environmentalism


  Government regulation is necessary remedy for the market's failure to provide enough environmental amenities