Ethics test 2 - Tragedy of the Commons and Sustainability

Define Sustainability

The ethical responsibility of companies to operate in ways that ensure long-term environmental, social, and economic well-being. It emphasizes balancing profit-making with the need to protect natural resources, promote social equity, and ensure that future generations can thrive.

What are the key aspects of Sustainability?

1. Environmental

2. Social

3. Governance

HERO: Garrett Hardin

American ecologist, philosopher, and author, best known for his work on population dynamics, environmental ethics and the concept of the tragedy of the commons

Who said: “One day people like me will go to jail?”

Ray Anderson

Current Ethical Dilemmas with Sustainability

1. Human Good vs Natural Good (on Utilitarianism)

2. Individual Freedoms vs Collective Responsibility

3. Economic Interest vs Environmental Stewardship

4. Voluntary Compliance vs Enforced Compliance

5. Fairness vs Judiciousness

What is Human Good vs Natural Good (on Utilitarianism)?

Theoretically good isn’t measurable, however in nature good is judged by natural selection.

What is Individual Freedoms vs Collective Responsibility?

should we be allowed to exercise our rights and freedoms at the expense of common resources

What is Economic Interest vs Environmental Stewardship?

Are individuals and corporations morally obliged to prioritize environmental impact over profit?

Voluntary Compliance vs Enforced Compliance

Can ethics be based solely on voluntary compliance, or is some form of enforcement necessary?

What is Fairness vs Judiciousness?

“perceived injustice is preferable to total ruin.”

What are the 4 solutions?

1. Privatization

   1. Owners manage the property and dictate its use, society follows rules of engagement that ensure sustainability

2. Administrative Regulation

   1. Agencies and bureaus set standards and impose consequences, society agrees to limitations and supports enforcement frameworks.

3. Taxation

   1. Government sets taxes and agrees to the provision of shared resources, society accepts taxes and pays them.

4. Education

   1. Educational institutions provide curriculums, teach civic duty, and pay instructors, society agrees to attend formal schooling up to a certain age.

Tragedy of the Commons

An economic theory introduced by Garrett Hardin in 1968, describing a situation where individuals, acting in their own self-interest, exploit a shared resource (the "commons") to the point of depletion or destruction. This occurs because each individual benefits from using the resource but does not bear the full cost of its depletion, leading to overuse and environmental or social harm.

Business Ethics: Highlights the tension between individual profit and the long-term sustainability of shared resources. It illustrates the ethical challenge businesses face when their actions (e.g., overproduction, environmental degradation) negatively impact public goods or the environment.

Which works? Guilt (conscience)  vs. Coercion  (taxes, laws)

Coercion  (taxes, laws)

Who said, “Freedom is the recognition of necessity”

Philosopher Hegel