ETHICS 7&8

• Climate change


  Broad range of changes happening to the planet including rising sea levels, shrinking mountain glaciers, melting ice caps, and extreme weather events
• Depletion of natural resources


  One of the environmental issues that directly concerns business organizations
• Joseph Weiss


  Identified the six pervasive factors that contribute to the depletion of natural resources in his book Business Ethics: A Stakeholder and Issues Management Approach
• 6 pervasive factors contributing to depletion of natural resources


  • Consumer affluence
  • Materialistic cultural values
  • Urbanization
  • Population growth
  • New and uncontrolled technologies
  • Industrialization
• Consumer affluence


  The increase in individual income has led to increased and indiscriminate spending and consumption, which produce waste
• Materialistic cultural values


  Promotes the practice of overconsumption and excessive production of disposable or single-use items. Consumption over conservation, and the "throwaway culture"
• Urbanization


  The concentration of people in cities changes the environment
• Population growth


  More natural resources need to be allocated to support the growing needs of the people, and more people will contribute to environmental degradation
• New and uncontrolled technologies


  Some companies that prioritize profits, convenience, and consumption over environmental protection disregard the impacts of the technologies they use and develop
• GMO


  Genetically Modified Organisms, any organism with genetic material that has been artificially manipulated in a laboratory using genetic engineering techniques
• Industrialization


  Industrial activities deplete natural resources and cause environmental degradation
• Farming & Fishing are major sources of livelihood in rural communities in the Philippines
• The Philippine Development Plan for 2017–2022 has placed emphasis on ensuring ecological integrity, and a clean and healthy environment
• Triple bottom line (TBL) approach

  Economic, ethical, and environmental
• Environmental values


  Environmental concerns are relevant to businesses and to everyone because human beings depend on the environment to survive. The environment is not an unlimited resource
• The Natural Step (TNS)


  An environmental research and consulting group, the resources necessary to sustain life are decreasing, while the worldwide demand for these resources due to population growth and consumerist lifestyle is increasing
• Backcasting


  A process which examines what the future will be when we emerge through the funnel
• Approaches to environmental sustainability

  • Market approach
  • Regulatory approach
  • Sustainability approach
• Market approach


  Focuses on efficient markets that seek profits but allow for the efficient allocation of resources
• William Baxter


  Author of People or Penguins: The Case for Optimal Pollution, argued that there is an optimal level of pollution that would best serve society's interests
• Regulatory approach


  Every country implements its own laws and regulations on environmental protection
• DENR


  Responsible for the "conservation, management, development, and proper use of the environment and natural resources" and for guaranteeing the "equitable sharing of the benefits from all natural resources for the welfare of the present and future generations of Filipinos"
• Sustainability approach


  Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs
• Circular flow model


  Does not differentiate natural resources from other factors of production, and it does not identify the origin of the resources. Treats economic growth as limitless
• Herman Daly


  Economist, states that a major paradigm shift is needed in our understanding of economic activity
• Sustainable model


  Recognizes that the economy exists within the biosphere with finite resources. Also identifies the "biophysical limits to growth"
• Principles for business sustainability

  • Eco-efficiency
  • Biomimicry
  • Service-based economy
• Eco-efficiency


  Practically "doing more with less", an environmental guideline for decades
• Biomimicry


  The waste materials of one company are turned into resources by another company. The ultimate goal is to eliminate waste instead of just reducing it
• Closed-loop production


  A manufacturing or production system that seeks to integrate what is presently considered as waste back into production
• Service-based economy


  A shift in business model from goods (tangible products) to services (intangible products). Interprets consumer demand as a demand for services
• Marketing


  A business activity that aims to build value for the customers and manage customer relationships in order for a company to gain value in return
• Bureau of Product Standards (BPS) under the Department of Trade and Industry (DTI)


  Responsible for developing, promulgating, implementing, and promoting standardization activities as mandated by Republic Act No. 4109 (Charter of BPS) and Republic Act No. 7394 (Consumer Act of the Philippines)
• Caveat emptor approach


  Assumes that consumers have the responsibility to look out for their own interests and protect their own safety when buying a product. The problem is that unless the company ensures that a product is safe, the buyers are liable for any harm they suffer
• Warranty


  Gives the consumers assurance that the company will be held liable for product damages or failure (usually a manufacturing defect) for a certain period of time
• Tort Standards


  Covers the liabilities of companies
• Advertising


  An important tool in marketing that is used to introduce a product or inform consumers about product updates, and to influence or persuade the consumers to buy the product. Consumers benefit from this tool by receiving information so they can make better, informed choices when they shop
• Truth is the most common issue in advertising
• Executive Order No. 51 or The Milk Code


  Encourages mothers to breastfeed their babies to ensure that they receive the best nourishment
• Sustainable Marketing or green marketing


  Focuses on actions that promote sustainable ways of marketing a business organization's product or service