SUST 2060 - Week 1: Profit & Public Good

What does The Guardian’s “Facebook's fake news: Mark Zuckerberg rejects 'crazy idea' that it swayed voters” article comprehensively claim?

• “voter decides on lived experience”

  • anyone who believes fake news = reason → fail to internalize

• rejects filter bubble

  • news filtered through TV / newspaper

• different political friends

→ confirmation bias

What does LastWeekTonight’s “Misinformation: Last Week Tonight with John Oliver” video comprehensively claim?

non-english misinfo >

e.g. misinfo stokes socialism fear in communism regime

• social media

  • no alternative in languages

  • still on FaceBook / YouTube

• private message app

  • everything in one app

  • conspiracy → send to contacts

  • FaceBook > rest of internet & phone carrier → expensive factcheck

  • hyperlink ban → self-contained platform / hard to find source

• public platform pressure

What does ABC News’ “What Mark Zuckerberg will tell Congress” article comprehensively claim?

Cambridge Analytica scandal → ‘my fault’

• fake news

• foreign election interference

• hate speech

• data privacy

What does Medium’s ‘Understanding Externalities and the “Tragedy of the Commons”’ article comprehensively claim?

Tragedy of the Commons

|| independent individual depletes shared resource

• individual v.s. collective interest

  • individual exploits resource for personal gain → collective depletion

• finite resource

  • susceptible to overuse

  • significant time to regen / irreversibly harm

• regulation lack

  • little motivation to conserve

• e.g. fishery / forest / water

externality types

• positive

• negative

externality → private cost ≠ social cost

• negative externality → overproduction / detrimental consumption

• positive externality → underproduction / underconsumption

strats

• government intervention

  • tax

  • subsidy

  • regulation

• property right

  • likely to sustainably invest because they reap benefits

• community management

• public awareness

What are some examples of profit pursuit benefits?

• innovation

• employment

• public service tax

• societal fulfilment

• efficiency / productivity

What are some examples of profit pursuit costs?

• environment

• inequality

• monopoly

• capture

What do ecological footprints account for?

ecological resource

What is a global overshoot?

use > have … resource

What is natural capital?

ecosystem stock

What is carrying capacity?

individuals supported in resource limit

What determines carrying capacity?

Earth’s natural capital interest

What is an ecological footprint?

area to produce resources & assimilate waste

What is a negative externality?

cost of act affecting uninvolved party

What is a public good?

// common pool resource

good where individuals can’t be excluded from use & don’t reduce availability

What causes a positive externality?

social benefit > private benefit → underproduced goods

What ways did Economics Nobel Prize winner Elinor Ostrom prove game theory & tragedy of the commons are not inevitable?

company groups…

• set participant boundary

• ensure collective decision

• independently monitor

• progressively punish

• place conflict procedure

• ensure higher authority

• customize local rule

What explains why the Fishbanks simulation is important?

broader responsibility denial = common business response

What does social media sell?

ability to change attention

• what you think & feel

What is business’ obligation according to shareholder capitalism?

max profit while engaging in open / free competition & leave noneconomic interest to politics

• social responsibility = increase profit

What does the business judgment rule permit?

director to look beyond shareholder when deciding what’s best

What is the relationship between shareholder capitalism & financial performance?

• stagnated shareholder return over last 15 years

• declined corporate financial performance

→ fail to attend noneconomic interest = financial loss

What is business sustainability?

profit indiscriminately creating value along integrative social / ecological / economic systems

What are the ecological sustainability dimensions?

• biodiversity

• replenishment cycle

• water / dry & ice system

• species reproduction

What are the social sustainability dimensions?

• basic service access

• social equity / justice

• human right

• democracy

• health

What are the economic sustainability dimensions?

• finance system

• good / service flow

• economy cycle

• income distribution & equality

What are some business sustainability synonyms?

• ESG

• CSR

• corporate citizenship

• business & society

• sustainable capitalism

• corporate sustainability

• triple bottom line

• people, planet, profit