chapter 3

Learning Objectives

  • Relate sustainability to ethical decision making and social responsibility.

  • Examine global environmental issues (atmosphere, water, land).

  • Review environmental legislation related to sustainability.

  • Compare renewable energy sources for sustainability alternatives.

  • Evaluate business responses to sustainability (green marketing, greenwashing).

  • Provide strategic directions for sustainability implementation.

Sustainability Overview

  • Sustainability: Long-term well-being of the environment and interaction among nature, individuals, and businesses.

  • Sustainable development: Meeting present needs without compromising future generations.

  • CSR encompasses consumer protection, governance, employee well-being, etc.

Social Responsibility as an Ethics Issue

  • Socially responsible activities provide competitive advantages.

  • Organizations create social value and consumer loyalty through sustainability.

  • Sustainable practices used for product differentiation.

Global Environmental Issues

  • Atmospheric: Air pollution, acid rain, global warming.

  • Water: Pollution and quantity issues.

  • Land: Pollution, waste management, deforestation, urban sprawl, biodiversity.

Environmental Legislation

  • Key acts: Clean Air Act (CAA), Endangered Species Act, Clean Water Act (CWA), Pollution Prevention Act.

  • EPA goals include reducing pollution and promoting sustainability.

Alternative Energy Sources

  • Wind, geothermal, solar, nuclear, biofuels, hydropower.

Business Response to Sustainability

  • Being environmentally friendly enhances stakeholder goodwill and company efficiency.

Green Marketing vs. Greenwashing

  • Green marketing: Strategic process to build customer relationships while enhancing the environment.

  • Greenwashing: Misleading consumers about a product's environmental benefits, leading to distrust in the long run.

Strategic Implementation Steps

  1. Recycling initiatives: Reprocessing materials for reuse.

  2. Stakeholder assessment: Engaging with stakeholders about environmental concerns.

  3. Risk analysis: Assessing environmental risks and trade-offs in decisions.

Strategic Sustainability Audit

  • Organizations can conduct sustainability audits using ISO 14000 standards to benchmark environmental practices.