Podcast
Questions and Answers
What is a key requirement for a corporation's environmental efforts to be effective?
What is a key requirement for a corporation's environmental efforts to be effective?
What does a comprehensive environmental management approach aim to achieve?
What does a comprehensive environmental management approach aim to achieve?
What is one of the benefits of implementing an environmental management system (EMS)?
What is one of the benefits of implementing an environmental management system (EMS)?
Which of the following describes the concept of 'greenwashing'?
Which of the following describes the concept of 'greenwashing'?
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Which factor is increasingly influencing consumers' purchasing decisions?
Which factor is increasingly influencing consumers' purchasing decisions?
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What characterizes the approach to sustainable development in corporations?
What characterizes the approach to sustainable development in corporations?
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What is one potential outcome of shareholder dissatisfaction with a corporation’s environmental policy?
What is one potential outcome of shareholder dissatisfaction with a corporation’s environmental policy?
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Which of the following is NOT a component of financial management concerning environmental factors?
Which of the following is NOT a component of financial management concerning environmental factors?
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What impact can 'eco-insurance' products have on corporate financial management?
What impact can 'eco-insurance' products have on corporate financial management?
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Why is it important for corporations to have comprehensive environmental policies?
Why is it important for corporations to have comprehensive environmental policies?
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What must corporations develop to address environmental sustainability?
What must corporations develop to address environmental sustainability?
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What is one example of a market-driven initiative for environmental concerns?
What is one example of a market-driven initiative for environmental concerns?
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What is a challenge faced by corporations when responding to environmental concerns?
What is a challenge faced by corporations when responding to environmental concerns?
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What role do Environmental Non-Governmental Organizations (ENGOs) play in corporate environmental strategies?
What role do Environmental Non-Governmental Organizations (ENGOs) play in corporate environmental strategies?
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How are corporate environmental performances typically reported?
How are corporate environmental performances typically reported?
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What is a potential consequence of the federal government reducing its regulation of environmental impacts?
What is a potential consequence of the federal government reducing its regulation of environmental impacts?
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What type of organizational structure is necessary for managing corporate responses to environmental concerns?
What type of organizational structure is necessary for managing corporate responses to environmental concerns?
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What indicates that not all businesspersons view climate change as a serious concern?
What indicates that not all businesspersons view climate change as a serious concern?
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What is the primary goal of sustainable development in business?
What is the primary goal of sustainable development in business?
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Which of the following best describes the role of environmental non-governmental organizations (ENGOs)?
Which of the following best describes the role of environmental non-governmental organizations (ENGOs)?
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Which legislation focuses on regulating air quality in Canada?
Which legislation focuses on regulating air quality in Canada?
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What is a key component of corporate social responsibility (CSR) in regard to the environment?
What is a key component of corporate social responsibility (CSR) in regard to the environment?
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How do sustainable business practices impact human and natural resources?
How do sustainable business practices impact human and natural resources?
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What is one of the three main areas of activity in implementing environmentally friendly processes?
What is one of the three main areas of activity in implementing environmentally friendly processes?
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What is a commons in environmental terms?
What is a commons in environmental terms?
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Which of the following is NOT considered an environmental concern in business?
Which of the following is NOT considered an environmental concern in business?
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What common practice in IT contributes to high electricity use?
What common practice in IT contributes to high electricity use?
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Which of the following is an example of archaic equipment usage in IT operations?
Which of the following is an example of archaic equipment usage in IT operations?
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What is NOT a function of governments related to environmental issues?
What is NOT a function of governments related to environmental issues?
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Which of the following best describes market-driven environmentalism?
Which of the following best describes market-driven environmentalism?
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Why is energy conservation an essential part of environmentally friendly operations?
Why is energy conservation an essential part of environmentally friendly operations?
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Which agency is responsible for assessing environmental impacts in Canada?
Which agency is responsible for assessing environmental impacts in Canada?
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Which location has the highest electricity cost for small datacenters?
Which location has the highest electricity cost for small datacenters?
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What notable change does IBM refer to when mentioning 'Big Green'?
What notable change does IBM refer to when mentioning 'Big Green'?
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Which of the following contributes to the phenomenon of high power use and low actual use in IT?
Which of the following contributes to the phenomenon of high power use and low actual use in IT?
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What is a consequence of ineffective waste management and recycling in businesses?
What is a consequence of ineffective waste management and recycling in businesses?
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How does archaic thought processes affect IT operations?
How does archaic thought processes affect IT operations?
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What principle does the IT culture of 'let's buy this and try that' primarily violate?
What principle does the IT culture of 'let's buy this and try that' primarily violate?
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Which of the following operational aspects is not typically associated with environmentally friendly initiatives?
Which of the following operational aspects is not typically associated with environmentally friendly initiatives?
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What impact does a decentralized IT environment have on electricity consumption?
What impact does a decentralized IT environment have on electricity consumption?
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What percentage of energy conservation efforts should businesses strive for?
What percentage of energy conservation efforts should businesses strive for?
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What does the acronym BYOD stand for in the context of IT operations?
What does the acronym BYOD stand for in the context of IT operations?
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What should environmental non-governmental organizations (ENGOs) consider when selecting corporations to target?
What should environmental non-governmental organizations (ENGOs) consider when selecting corporations to target?
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Which principle does market environmentalism emphasize as more effective than government intervention?
Which principle does market environmentalism emphasize as more effective than government intervention?
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Which of the following companies is mentioned as having endorsed the principles developed by the CERES organization?
Which of the following companies is mentioned as having endorsed the principles developed by the CERES organization?
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What is one of the factors that differentiates standard environmentalism from market environmentalism?
What is one of the factors that differentiates standard environmentalism from market environmentalism?
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According to market-driven environmentalism, which factor is seen as a driver for demand in environmental quality?
According to market-driven environmentalism, which factor is seen as a driver for demand in environmental quality?
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Why do ENGOs prioritize larger firms in their campaigns?
Why do ENGOs prioritize larger firms in their campaigns?
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What is a possible disadvantage of free trade according to standard environmentalism?
What is a possible disadvantage of free trade according to standard environmentalism?
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What role does ownership play in market-driven environmentalism?
What role does ownership play in market-driven environmentalism?
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Which organization was formed just before the Exxon Valdez oil spill to promote environmental principles?
Which organization was formed just before the Exxon Valdez oil spill to promote environmental principles?
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What do market factors such as free trade and property rights contribute to in the context of environmentalism?
What do market factors such as free trade and property rights contribute to in the context of environmentalism?
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What was the initial purpose of the sustainability project?
What was the initial purpose of the sustainability project?
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Which of the following is NOT an indicator used to evaluate environmental performance?
Which of the following is NOT an indicator used to evaluate environmental performance?
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What is one of the criticisms of sustainability in business?
What is one of the criticisms of sustainability in business?
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How much did the company reduce its Data Centre footprint?
How much did the company reduce its Data Centre footprint?
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What is a characteristic of a circular economy?
What is a characteristic of a circular economy?
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Which of the following is a potential challenge for corporations in sustainable development?
Which of the following is a potential challenge for corporations in sustainable development?
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Which organization is associated with environmental standards like ISO 14000?
Which organization is associated with environmental standards like ISO 14000?
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Which strategy reduces environmental impact while improving efficiency?
Which strategy reduces environmental impact while improving efficiency?
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What kind of economy ensures materials are constantly reused and preserved?
What kind of economy ensures materials are constantly reused and preserved?
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What is one of the positive outcomes of sustainable practices for corporations?
What is one of the positive outcomes of sustainable practices for corporations?
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Which factor is commonly cited for measuring environmental sustainability?
Which factor is commonly cited for measuring environmental sustainability?
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What does 'Extended Producer Responsibility' (EPR) focus on?
What does 'Extended Producer Responsibility' (EPR) focus on?
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What has been a significant environmental impact from the company's sustainability efforts?
What has been a significant environmental impact from the company's sustainability efforts?
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Which of the following might lead to a corporation being alienated from the local community?
Which of the following might lead to a corporation being alienated from the local community?
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Study Notes
Business in Society: Business and the Environment
- Businesses have extensive responsibilities toward the environment.
- Governments play a role in addressing environmental concerns.
- Environmental NGOs (ENGOs) influence corporations.
- Market-driven environmentalism uses economic incentives.
- Corporations react to environmental concerns through their main business functions.
- Sustainability measures and standards exist, and corporations are aware of industry initiatives to report on environmental responsibilities.
Learning Outcomes
- Understanding the extent of business responsibilities concerning the environment.
- Describing the government's impact on environmental concerns.
- Defining ENGOs and their influence on corporations.
- Explaining market-driven environmentalism approaches.
- Describing corporations' responses to environmental issues within business functions and the government's influence on these issues.
- Listing sustainability measures and standards, and becoming familiar with corporate and industry initiatives to report on environmental responsibility.
Remember 3E/3P
- The environment is crucial to CSR.
- Ethical considerations impact environmental and economic factors.
- The people-planet-profit model is useful.
- This course focuses on: Ethics, Environment, Stakeholders, and Globalization.
Business, Stakeholders, and the Natural Environment
- Environmental issues affect corporations' operations, from resource input to product sales.
- Managers must implement planning, organizing, leading, and controlling all environmental aspects of business.
- Any resource used as though it is a shared resource (commons) is subject to environmental concern. Examples: Air, water, and natural animal populations.
Environmental Ethic and Sustainable Development
- Environmental ethic is a set of principles that guide a corporation's environmental practices.
- Sustainable development ensures that today's resource use and environmental impact does not compromise future generations' ability to use resources.
- Corporations should implement business strategies that meet today's needs without jeopardizing future human and natural resources.
- Adopting business strategies and activities to meet the needs of the organization and stakeholders, while protecting, sustaining, and enhancing natural and human resources, is a priority.
Environmental Concerns in Business
- Acid rain
- Air pollution
- Ecosystems
- Energy production and consumption
- Nature and wildlife
- Ozone depletion
- Pollution
- Waste management
- Water quality
- Climate change / global warming
Government's Influence
- Extensive government involvement exists in regulating and formulating policies.
- Agencies exist to regulate corporate activities and help corporations meet environmental performance targets.
- Examples: Environment Canada, Canadian Council of Ministers of the Environment, National Roundtable for the Environment and the Economy, Canadian Environmental Assessment Agency/Impact Assessment Agency.
Responses by Government
- Canadian Environmental Protection Act (Canada) – Federal level
- Impact Assessment Act (Canada) and Air Quality Legislation (Provincial) – Federal and Provincial
- Water Quality Legislation (Federal)
- Canada Water Act, Fisheries Act, Navigable Waters Protection Act, Arctic Waters Pollution Prevention Act, Canada Shipping Act, Dominion Water Power Act, and Land-Related Legislation
- Kyoto Protocol
Environmental NGO Influence
- ENGOs hold shared values and attitudes about environmental challenges.
- ENGOs influence corporations through protests, blockades, boycotts, and shareholder meetings.
- Greenpeace is an example of an ENGO.
The Power of NGOs
- CERES organization was formed in 1989 before the Exxon Valdez oil spill.
- CERES formulated ten principles of environmental sensitivity.
- Major companies (e.g. Coca-Cola, American Airlines, General Motors, Sunoco) have endorsed these principles.
Why Do ENGOs Target Certain Firms
- ENGOs target firms having significant environmental impact.
- ENGOs consider the consequences of firms' actions.
- Connections and relationships influence target selection.
- EnGOs assess the influence of targeted firms within their industries
- ENGOs are concerned with firms’ activities in the supply chain.
Influence of Market-Driven Environmentalism
- Standard environmentalism emphasizes government regulation.
- Market environmentalism prioritizes economic incentives.
- Economic growth, free trade, and property rights are key market principles.
Differences Between Standard and Market Environmentalism
- Economic growth is viewed differently.
- Free trade is viewed as either part of the problem or of the solution.
- Property rights and regulation are crucial considerations.
Market-Driven Environmentalism (cont'd)
- Carbon pricing is a financial instrument for reducing emissions.
- Cap-and-Trade, imposing a fee, and an output-based price system are carbon-pricing methods.
- Each method has different elements.
Carbon Tax – The Misunderstood Solution
- Goal: Reduce carbon footprints.
- Method: Implementing a carbon tax on products.
- Disincentive tax: People may choose less carbon intensive products.
- Funds are placed in a special account.
- Businesses use funds to reengineer processes.
- Taxpayers receive refunds for hardships.
- Reality: funds aren't always used for intended purposes.
- Costs are often passed on by producers.
Market-Driven Environmentalism (cont'd)
- Offsets are credits purchased to neutralize greenhouse gas emissions.
- Carbon capture and storage (CCS) captures and stores emissions.
Business Responses to Environmental Issues
- Management positions and committees should be established to deal with environmental issues.
- Top management commitment is crucial for effective strategies.
- Environmental efforts must be integrated with operations.
- Professionals are encouraged to meet the increasing environmental standards.
Business Responses to Environmental Issues (cont'd)
- Token responses focus on damage control.
- Compliance is a concern stemming from lawsuits and prosecutions.
- Comprehensive environmental management prioritizes the company’s stance and competitive advantage.
- Sustainable development integrates sustainability into business strategies and environmental policies.
Business Responses to Environmental Issues (cont'd)
- Corporations need comprehensive environmental policies and programs, (EMS).
- EMS integration into overall strategy is important for success.
- EMS advantages include cost reductions, meeting investor demands facilitating regulation, and meeting consumer demands.
Managing Responses to Environmental Concerns
- Raise awareness about environmental impacts
- Assess and manage risks and opportunities
- Build climate resilience across enterprise.
Financial Management
- Environmental factors are considered in financial management practices.
- Accounting principles have guidelines.
- Eco-insurance is available.
- Businesses need environmental assessments for financial performance.
- Investments are evaluated for environmental performance.
Marketing
- "Green Marketing" sells environmentally friendly goods.
- Consumers consider eco-labels.
- Third-party certifications increase trust in eco-labels.
- Consumer willingness to pay higher prices for green products is a key question.
Caution
- Some customers are willing to pay higher prices for eco-friendly products, (e.g., organic produce, Toyota Prius).
- There are limits to consumer acceptance of higher prices.
- The balance between consumer needs and environmental concerns is crucial.
Human Resources
- Practices include recycling programs, conservation, and promoting public transport.
- Sustainability programs involve incentivizing environmentally friendly behaviors and practices.
- Creating sustainable workplace practices.
Operations
- Businesses implement eco-friendly processes and technologies.
- Waste management, pollution reduction, and energy conservation are common in operations.
IT Operations
- Cooling and server use significantly impact electricity.
- IT departments have a culture of continually acquiring new technology.
- IT infrastructure has grown significantly and efficiently with newer technologies.
- Current technologies require more energy input than past technology and greater maintenance.
Small Datacenter Electricity Cost
- Locations and costs vary for small datacenters.
- Data usage in datacenters is high and varies significantly by location.
Example: IBM "Big Green"
- IBM recognized sustainability as an imperative, going beyond their own costs.
- They made existing products more environmentally sound.
- They created new solutions and streamlined operations, including creating standardized tools, processes, and procedures.
Measuring and Reporting on Environmental Sustainability
- Using performance indicators for measuring progress.
Environmental Sustainability Measures and Standards
- Coalition for Environmentally Responsible Economies (CERES)
- International Organization for Standardization (ISO) 14000
- International Institute for Sustainable Development (IISD)
- Canadian Sustainability Indicators Network (CSIN)
- Environmental and Sustainable Development Indicators Initiative (ESDI)
Dissenting Views on the Environment
- Not all agree that corporations should play a leading role in environmental protection.
- Critics challenge the definition and understandability of sustainability concerns.
- Some argue that sustainability initiatives restrain economic growth, or are morally flawed.
- Concerns exist regarding the misleading nature of how executives respond to the topic.
The Environment: Corporate Opportunities
- Enhanced reputations; greater staff recruitment and retention; greater customer appeal; and investor confidence.
- Recycling and conservation lower costs.
- Integration with the community improves relations and cooperation.
- New technologies yield higher revenues.
The Environment: Corporate Challenges
- Negative perception shifts regarding environmental sustainability issues may damage reputation.
- Revenue loss resulting from customer attrition due to environmental damage.
- Difficulty in attracting investor interest with potential environmental risks and costs to the business.
- Increased materials and production costs.
- Potential for increased financial penalties associated with environmental violation fines and penalties.
- Concerns with premiums, and alienation from communities due to environmental or corporate issues.
- Potential for stricter environmental legislation.
From a Linear to a Circular Economy
- A shift from one-time use to one of reuse in production and consumption.
- Circularity has restorative and regenerative design aspects.
- EPR (extended producer responsibility) fosters life cycle concepts and considerations.
Resources
- Books and articles relating to the topic of sustainability.
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Description
This quiz explores the intricate relationship between businesses and environmental responsibilities. Participants will learn about the roles of governments, environmental NGOs, and market-driven approaches to sustainability. Examine how corporations respond to environmental concerns and the standards they adhere to in their business practices.
