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Strategic Management
6HO705
Module Handbook
Spring 2016
Sydney Moyo
Lecturer
[email protected]
Belvedere, Floor 1
Page 2
Module Title: Strategic Management
Module Code: 6HO705
Number of Credits: 20
Credit Level: 6
Learning Hours: 200
Key words:
MODULE DESCRIPTION
Service sector organisations must recognise the need to stay
abreast of changes
in the external environment and remain goal focused to ensure
company
objectives are met in both the short and long term. Increasing
competition,
dynamic customer demand and the pace of technology have led
to a realisation
that organisations need to flexible, agile and responsive to
change. To this end,
businesses need to identify and critically examine future
developments within the
service sector, and develop appropriate management strategies
and actions to
facilitate change. Organisations that are risk adverse will take
longer to proactively
meet the changing external environment and this module seeks
to develop an
awareness of the organisational approach to risk by analysing
appetite and
maturity levels. The module aligns with the nationally
recognised need for
undergraduates to have a far deeper understanding and greater
knowledge of
international issues and general awareness of the global agenda.
LEARNING OUTCOMES
On successful completion of the module, students will be able
to:
1. Critically analyze strategic and non-strategic decisions,
positions and the
differences between functional, business-level and corporate-
level
strategies.
2. Evaluate the role of risk, uncertainty, and trade offs play in
strategic decision
making.
3. Critically assess the need for change, develop strategies for
managing
change and monitor the change.
INDICATIVE CONTENT
• The process of strategic planning; the service sector business
environment;
current and future perspectives and challenges
• Understanding the context of global strategic alliances,
mergers and
acquisitions
• Globalisation of markets and competition to include the
phenomenon of both
global and glocal markets combined with localised responses to
Global
integration.
Page 3
• Global marketing, branding, standardisation, advertising,
positioning the role
of media, business Internet space
• Global financial management, project financing, currency
fluctuations, global
capital structures, funding control
• Risk Management, Appetite and Maturity
• Strategies for managing change
• Managing culture in global organisations
• Internationalisation and diversification of organisations
MODULE LEARNING AND TEACHING METHODS
A variety of learning and teaching methods will be used
including: lectures,
workshops, group work, class discussions, case studies and
critical reflection on
your studies.
Lectures will offer theoretical perspectives that will be explored
in depth through
lecture sessions focused on group working. Tutorial sessions
will be contextualized
to different industries to support related product and
organizational development
strategies, but these will be predominantly student-led to allow
for further
discussion, debate and independent thought of the topics
covered in the module.
The module will be delivered via a combination of lectures that
will be generic whilst
the seminars / tutorials will be contextualized to the subject
area.
Page 4
MODULE OUTLINE
W Lectures Tutorials Cloud Activity
10
Introduction to strategic
management and strategy
framework
Discuss strategies for
managing knowledge
and strategy
framework questions
Read article, ‘What’s your
strategy for managing
knowledge
11
Understanding strategic
management & deliberate
and emergent strategy
Discuss Case Study
‘Northern European
Tour Operator’ using
Mintzberg’s five Ps
Read Case study : NextJet’s
Change Mission & link it to
Strategy for managing
knowledge
12
Mission & Vision :
Objectives. Assessing
Internal Environment
Discuss articles creating
mission statement &
strategies & link to levels of
strategic decision-making
Watch Hilton Worldwide –
Vision, Mission & Values &
Case example – Hotels &
Airlines
13
Analyzing External
Environmental : Porter’s
5 Competitive Forces
and Strategic Positioning
- SWOT
Formative Presentations
for Course Work 02 &
discussion of firm
competitive advantage
Article reading: firm resources
and competitive advantage &
link to strategy framework
14
Strategic Tools 1 and
auditing resources
capabilities approach &
manager competencies
Course Work 02
Presentations and slides
submitted to turnitin at
15h00 of presentation day
Reflections on challenges of
future Hotels and Tomorrow’s
Hospitality Manager & Co-
Alignment Principle
15
Strategic Tools 11:
Strategic choice, Porters
Generic strategies and
Ansoff growth strategies
Group discussions on
Learning Organizations
and links to Strategic Tools
Read articles : Leader’s role in
building learning organizations
and integrated risk
management
16
Managing change and
innovation and role of
force field theory and
related theories
Formative Presentations
for Course Work 01 and
watch clip force field
presentation
Group Learning Sets select a
business environment and
evaluate external Pest forces
17
Managing change at
individual, business and
corporate levels of
impact
Discuss challenges of
getting managers to think
strategically
Submission report for Course
Work 01. Meet submission
deadline Friday 15h00
18 SM Learned & Reflected
Stories
SM Learned & Reflected
Stories
SM Learned & Reflected
Stories
*Content of above is subject to change… please refer to the
course materials
posted in Moodle.
Page 5
FORMATIVE ASSESSMENT
These are assessments such as mini-presentations and written
exercises that you
as a student in a group or individually will undertake during
lectures and in tutorial
sessions. Feedback for these will be given during the tutorial
sessions. These
assignments are not formally graded but are designed to
enhance the student
learning experience and skills.
In addition there will be an opportunity in Week 13 to share
your findings in the
class with peers and the module leader. The feedback will be
useful to further
develop the learning. Opportunities for individual consultation
with the module
leader would be made available by arranging an appointment to
discuss your group
presentation and individual report ideas.
SUMMATIVE ASSESSMENTS
Weighting: 100% Coursework
Coursework 01: Assessing learning outcomes 1 & 2
Weighting: CW01: 50% / CW02: 50%
Coursework 01: Assessing learning outcome 2 & 3
Coursework 02: Assessing learning outcome 1 & 2
COURSEWORK CW 1 (50%)
The course work is an individual report where you are required
to write a report on
the case organization’s implementation of its chosen strategy.
The report should
analyze and evaluate the organizations chosen strategy
highlighting its suitability
given the competitive environment. The report should also
address the
consequential implications of change that will occur as the
strategy is implemented
and suggest how organizations could manage these changes so
that the strategy is
effectively implemented. The report should demonstrate
selected strategic
management process of a current business setting and evidence
how intervention
techniques have been applied for improving business
effectiveness. The report is
justified using analyzed and evaluated theories. This is a 2,500
word report.
The purpose of this report assignment is aimed at developing
skills for proposing
and implementing strategic analysis and changes that has an
impact on hospitality
business environments. Students will select and analyze
hospitality industry
workplace events, programs or services and propose strategic
change for
improvement. The report will be based on Learning outcome 2
& 3
Page 6
The following structure for the individual report guideline is
recommended:
Title page: Include report title, students’ names and students’
numbers, module
name and code, assessment task, lecturer’s name and date.
Background: Description of the business situational context.
Explanation as to
why analyzing the organizational case strategy is important and
explanation of the
competitive environment. In approximately 200- 300 words,
provide a basic
background to the strategic communication plan, state the
purpose of the report
and provide overview of the rest of the content.
Contents page: List the contents of the essay report (headings,
sub-headings)
and the page numbers they appear on.
Presentation of main ideas: Analyze and evaluate your chosen
organizational
business strategy supported with theoretical perspectives and
strategic
processes.
A. Analyze the organization’s external competitive environment
to identify
opportunities and threats.
B. Analyze the organization’s internal operating environment to
identify the
organization’s strengths and weaknesses.
Critical evaluation: Evaluate the implications and justifications
on how strategies
are implemented and outline how the changes are managed
effectively.
A. Justify how selected strategies are consistent with mission
and major goals of
the organization.
B. Demonstrate how employed strategies are congruent and
constitute a viable
business model.
C. Reflect on the role you played either as an internal
consultant or internal
change agent in improving business or organizational
effectiveness.
Conclusion: In 300 – 400 words state the summary and
evaluation of the ideas
and statement of your own point of view with reasons. Explain
why organizational
managers should select the outlined strategies.
*Support your report with examples and evidence of theories
and models from
academic literature readings of strategic management and
intervention techniques
discussed in class and module content.
* Select a different hospitality business for this report than the
one you used
for your group work presentations.
Page 7
Referencing in the text: Reference all citations in the text of the
assessment.
Referencing section: Provide references on a separate page at
the back of the
report using Harvard method.
Appendices: If appropriate, provide appendices.
FORMATTING GUIDELINES
• All reports should be typed using 12p text, 1.5 line spacing
and Arial/Times.
• All reports should be spell checked.
• All sources must be referenced using the Harvard Referencing
System.
• All full reference list of all sources must be included at the
end of the report.
Please save your file as 161_6EM705_CW01_LastName
FirstName.doc
Submission Date: Friday of Week 17 (3rd June, 2016), not later
than 15:00hrs.
Only one electronic copy of your report should be submitted to
Turn It In via
Moodle. There is no provision for late submissions, unless
otherwise
approved by your Programme Leader.
Please refer to the Programme Handbook for regulations
pertaining to late
submissions, resubmissions, and extenuating circumstances.
COURSEWORK CW 2 (50%)
The course work is a presentation where as part a group of 4-5
persons you are
required to prepare a presentation (15 minutes). The purpose of
this presentation
will address and focus on the impact and evaluation of the
external environment of
an industry organization (hospitality & events sectors), and the
influence this has on
strategic choice of the relevant organization. The task is not
about describing
strategic theories, but a proper integration of theory and
selected plans or
processes that demonstrate confidence use of strategic
techniques. The task is
justified through academic literature and strategic human
resource management.
You will demonstrate critical and creative use of strategic
theories to demonstrate
how organizations within the hospitality and events industry are
improved.
Submission Date: The presentations will take place in (Week 14
- week starting
May 9th, 2016)
Page 8
The following considerations or questions will be useful guides
for conceptualizing
and evaluating problem issues of your organization.
• Select a hospitality business company with the approval of
module teacher.
• What might be some of the common barriers to change and
improvement
this organization may face?
• How can this organization make necessary changes without
exposing the
organization to unacceptable risks?
• Why is it critical to propose strategic analysis and change to
justify future
added value and competitive advantage for the organization?
* Selected a different hospitality business for this presentation
than the
one you will use for your report.
The following structure for the presentation guideline is
recommended:
• Background of the chosen organization with a clear focus on
vision and
mission goals.
• Identification and justification of chosen strategy level for
change and how
realistic and achievable objectives of change are delivered.
• Evaluate role of risk, uncertainty, and trade offs applied in
strategic decision
making.
• Identification of impacts of change processes and justify how
these are
achieving the aim and objectives leading into diagnosing and
managing
change competitively.
• Application of appropriate theoretical strategies and
intervention methods for
implementing proposed changes.
• Critically evaluate the urgency for change to justify how
selected intervention
methods or models that foster realization of change.
• Conclusion: To critically evaluate and reflect how the outlined
theoretical and
practical change models have provided support towards your
strategic
change plans.
PLAGIARISM
Individual assignments are what the title suggests – your own,
individual pieces of
work. Copying all or part of another person’s work is not
permitted. If there is
considerable likeness between assignments actions might be
taken.
Failure to fully reference all your sources could be construed by
the marker/tutor
as intentional and therefore as plagiarism. Plagiarism is a
serious academic
offence. It arises when a student is suspected of presenting work
undertaken by
other people as if it were their own.
Page 9
A student is liable to be found guilty of plagiarism if any work
presented for
individual assessment is found to contain the unacknowledged
work of some
other person or persons. If this involves deliberate
misrepresentation of material
as the student’s own in an attempt to deceive the examiners then
the offence is
very grave indeed. All sources should be cited and all
quotations from the works
of other authors clearly identified as such.
If a student’s work is found to contain verbatim (or near
verbatim) quotation from
the work of other authors (including other students past or
present) without clear
acknowledgement, then plagiarism has been committed whether
or not the
student intended to deceive the examiners. This rule also
applies to the fraudulent
provision of work by anyone for use by a student as his/her
own.
Please do not leave anything to chance. SHMS has strict rules
regarding
plagiarism and has specialist electronic surveillance equipment
to determine if the
work is plagiarised.
ATTENDANCE
In line with the student participation contract, this contract will
be considered as
breached if the student has missed two sessions of the module
without good
cause, where one lecture or one tutorial or one lesson
constitutes a session. In this
case, the student receives a verbal warning. A third session
missed incurs a final
warning letter. In the event of a fourth session missed, the
student will be de-
registered from the module in question. Registers will be taken
for every session.
Page 10
THE UNDERGRADUATE GRADING SCALE
%
mark
Mark Descriptors Class
70-
100%
Excellent
Outstanding; high to very high standard; a high level of critical
analysis and evaluation, incisive original thinking;
commendable
originality; exceptionally well researched; high quality
presentation;
exceptional clarity of ideas; excellent coherence and logic.
Trivial or
very minor errors.
First
60-
69%
Very good
A very good standard; a very good level of critical analysis and
evaluation; significant originality; well researched; a very good
standard of presentation; pleasing clarity of ideas; thoughtful
and
effective presentation; very good sense of coherence and logic;
Minor
errors only.
Secon
d Div
1
50-
59%
Good
A good standard; a fairly good level of critical analysis and
evaluation;
some evidence of original thinking or originality; quite well
researched;
a good standard of presentation; ideas generally clear and
coherent,
some evidence of misunderstandings; some deficiencies in
presentation.
Secon
d Div
2
40-
49%
Satisfactory
A sound standard of work; a fair level of critical analysis and
evaluation; little evidence of original thinking or originality;
adequately
researched; a sound standard of presentation; ideas fairly clear
and
coherent, some significant misunderstandings and errors; some
weakness in style or presentation but satisfactory overall.
Third
35-
39%
Unsatisfactory
Overall marginally unsatisfactory; some sound aspects but some
of
the following weaknesses are evident; inadequate critical
analysis and
evaluation; little evidence of originality; not well researched;
standard
of presentation unacceptable; ideas unclear and incoherent;
some
significant errors and misunderstandings. Marginal fail.
Fail
5-34%
Very poor
Well below the pass standard; a poor critical analysis and
evaluation;
no evidence of originality; poorly researched; standard of
presentation
totally unacceptable; ideas confused and incoherent, some
serious
misunderstandings and errors. A clear fail well short of the pass
standard.
0-4%
Nothing of merit
Nothing, or hardly anything, of merit submitted.
When no work has been submitted the NS notation will apply
Page 11
INDICATIVE LEARNING RESOURCES
The list below is by no means exhaustive and you will be
expected to use journals
both in the Learning Centre and electronically. There is also a
wealth of
information available on the Internet, but please use this wisely
and selectively.
Remember that this area of research covers many different
subject areas so look
beyond tourism, hospitality and events literature and try to
assess the applicability
of the wider literature.
Link to ASPIRE reading list
Johnson, Scholes & Whittington, (2008), Exploring Corporate
Strategy (8th Ed), FT
Prentice Hall
Johnson, Scholes, Whittington, Angwin, Regner (2008),
Exploring Strategy (10th
Ed), Pearson
ASTD Research, (Aug 2014) Change Agents: The Role of
Organizational
Learning in Change Management, Product Code 191407
John Kotter and Holger Rathgeber, Sep 2006, Our Iceberg Is
Melting: Changing
and Succeeding under Any Conditions
Major strategy consulting firms have enormous amount of
information on the
subject.
www.mckinsey.com, www.bcg.com, www.bain.com
Finance books
D’Angelo, J.M. (2006) Spa business strategies : a plan for
success. Clifton Park,
NY. Thomason Delmar Learning
Davies, D.B. (2005) Managing financial information. (2nd ed)
London. Chartered
Institute of Personnel and Development
Knott, G. (2004) Financial management .(4th ed) Basingstoke.
Palgrave
Macmillan
Sutherland, J. and Canwell, D. (2004) Key concepts in
accounting and finance
Basingstoke. Palgrave MacMillan
Turban, E. [et al.] (2006) Electronic commerce 2006: a
managerial perspective
Upper Saddle River, N.J. Prentice Hall
Page 12
Finance journals
British Journal of Management
Journal of Management Studies
Management Today
Marketing books
Fletcher, R. (2004) International e-business marketing.
Australia. Thomson
Jobber, D. (2007) Principles and practice of marketing (5th ed)
Maidenhead.
McGraw Hill Publishing Company.
Kirby, J. and Marsden P. (2006) Connected marketing Oxford :
Butterworth-
Heinemann
Mudie, P. and Pirrie, A. (2006) Services marketing management
(3rd ed) Oxford.
Butterworth-Heinemann
Palmer, A. (2007) Principles of services marketing (5th ed)
London. McGraw-Hill
Higher Education
Smith, I (2003) Meeting customer needs (3rd ed) Oxford.
Butterworth-Heinemann
Smith, P. (2005) emarketing excellence : the heart of ebusiness
(2nd ed). Elsevier
Butterworth-Heinemann
Zeithaml, V A and Bitner, M J, (2006) Services marketing (4th
ed) London.
McGraw-Hill Higher Education
Marketing journals
International Journal of Advertising
International Journal of Hospitality Management
Journal of Integrated Marketing Communications
Journal of Marketing
Journal of Marketing Management
Journal of Services Marketing
Journal of Travel & Tourism Marketing
Journal of Vacation marketing
Human resource books
Beardwell, I., Holden, L. & Claydon, T. (2004) Human
Resource Management, a
contemporary approach. (4th ed) Harlow. Prentice Hall.
Boella, M. J. (2005) Human resource management in the
hospitality industry: an
introductory guide. (8th ed) Oxford.
Page 13
Bratton, J. & Gold, J. (2007) Human resource management
theory & practice. (4th
ed) Basingstoke. Macmillan Business.
Butterworth-Heinemann. (also available as an e-book)
Dick, P. & Ellis, S. (2006) Introduction to organizational
behaviour. (3rd ed)
Maidenhead. McGraw-Hill.
Huczynski, A & Buchanan, D (2004) Organisational behaviour:
an introductory
text. (5th ed) Harlow. Pearson Education.
Lashley, C. & Lee-Ross, D. (2003) Organization behaviour for
leisure services.
Oxford. Butterworth-Heinemann.
Nickson, D. (2006) Human resource management for the
hospitality and tourism
industries. Oxford. Butterworth-Heinemann. (also available as
an e-book)
Rayner, C. & Adam-Smith, D. (eds) (2009) Managing and
leading people. (2nd ed)
London. Chartered Institute of Personnel and Development.
Van der Wagen, L. (2006) Human resource management for
events: managing
the event workforce. Oxford. Butterworth-Heinemann. (also
available as an e-
book)
Some of these journals are dedicated to one of the fields
(Human
Resource Management; Harvard Business Review; People
Management;
Event Management and the International Journal of Hospitality
Management; and
International Journal of Culture, Tourism and Hospitality
Research)
Article
· Kokmen, L. (2008, March-April). Environmental justice for
all. UTNE Reader. Retrieved from
http://www.utne.com/environment/environmental-justice-for-
all.aspx
· The article provides information about environmental ethics
and will support completion of the Applying Theory:
Environmental Issues—assignment this week.
Accessibility Statement does not exist.
Privacy Policy
Mosser, K. (2013). Ethics and social responsibility (2nd ed.)
[Electronic version]. Retrieved from https://content.ashford.edu/
Introduction
American naturalists such as John Muir (1838–1914), Aldo
Leopold (1887–1948), and Edward Abbey (1927–1989) have
long pointed to the importance of protecting the environment.
However, genuine issues arise between those who wish to leave
the environment as it is, and those who wish to utilize it for
other purposes, such as drilling, development, or mining. These
issues have become much more common topics of debate in
recent decades, with increased energy and other demands
placing stress on the environment. With the first “Earth Day” in
1970, various environmental groups began to develop more
effective political organizations, and the environmental
movement began to play a significant role in American politics.
The Environmental Protection Agency (EPA) was begun, also in
1970, during the administration of President Richard Nixon, in
order to protect both human health and the environment by
developing laws and reviewing regulations. In this chapter, we
will explore some of the questions that arise within the context
of environmental ethics, the study of the moral relationship
between human beings and their surroundings, including
nonhuman components found within those surroundings.
Throughout, we will examine difficult issues, such as how to
balance the economic benefits of development with the benefits
(economic and otherwise) of a wilderness or beach or forest. Do
we have a right to clean water and to clean air? If so, how are
those rights enforced, and how do we maintain those rights
without inhibiting important economic gains? And do we have
an obligation to leave a sustainable environment to the
generations that will follow us?
8.1 The Issue: Hazardous Waste Disposal
Hazardous waste is a problem for many communities around the
world. The obvious answer to what should be done with it is to
simply avoid creating it. Given that total avoidance is
improbable, corporations have designed methods to reduce
hazardous waste, including recycling, reducing waste, treating
the waste, trading excess materials to other businesses, and
other methods. Here we will discuss a well-known hazardous
waste case.In a small town, an unemployed mother of three is
down on her luck; after a failed lawsuit, she convinces her
attorney to take her on as a clerk. In between filing and other
drudgery required of such clerks, she starts hearing about
strange illnesses in her town and their unusual frequency and
starts investigating. Eventually, she discovers that a major
corporation has been storing water that has become toxic in
unlined ponds. That water eventually leached into the
groundwater and subsequently contaminated the town’s drinking
water. The law clerk begins to work with her attorney to bring
legal action against the giant corporation, and her spirit and
unwillingness to give up eventually wins the day. The giant
corporation is forced to pay those who had been harmed by the
water pollution $333 million; the mother herself gets $2
million. Except for the corporation, everyone lives happily ever
after. This kind of thing sounds a bit too good to be true; in
fact, it sounds like a movie. This is unsurprising, since it is a
movie: Erin Brockovich tells the story (based on actual events)
of one woman’s struggle against the economic power structure
to obtain justice for those outside of that structure. In addition
to it being a classic David versus Goliath story, where the
faceless, all-powerful giant is slain by the righteous but
powerless fighter, the story also is representative of many
environmental battles. Often, as we will see, those engaged in
these battles are in a conflict over resources, money, and the
environment. Those who prefer to develop, drill, or mine may
regard the benefits of that activity as more important than
maintaining the wilderness or landscape as it is. In contrast,
those who wish to maintain a pristine environment will regard
that as priceless, and thus not worth ruining for some jobs or to
extract energy or minerals. Still others will advocate a middle
course, promoting sensible development that minimizes the
harm to the environment without neglecting the important
economic rewards that such development may provide.
As is often the case with movies, reality is a bit messier than
one might realize from seeing Erin Brockovich.
Those in the town—Hinkley, California—who received payment
from Pacific Gas and Electric (PG&E) have suggested that the
amount of money they were promised turned out to be much less
than they actually received, that attorneys kept the money for
months without paying interest on it, and that excessive legal
fees reduced the awards substantially (Sharp, 2000).
A toxic “plume” containing the carcinogen chromium 6
(hexavalent chromium) had been the original source of the
contamination that led to the 1996 lawsuit Brockovich began. In
2008, however, it was discovered that the plume was spreading
again, and had become two miles long and a mile wide. PG&E
attempted to stem the growth of this plume, but also sought to
buy some of the affected property and provided bottled water to
concerned residents (Schwartz, 2010).
A study carried out by the California Cancer Registry seemed to
indicate that cancer rates—a particular concern in Hinkley,
given the known effects of chromium 6—were not, in fact,
elevated in most cases. An epidemiological study came to a
similar conclusion, stating that its findings do not support
claims of a generalized cancer excess in Hinkley, although the
cervix, prostate, and colorectal cancer findings reveal
underutilization of cancer screening in the Hinkley tract. These
findings are consistent with previous assessments that did not
identify a cancer excess in the Hinkley tract (Morgan & Reeves,
2011).
This final point brings to our attention a concern that frequently
occurs in environmental disputes: the need for scientific and/or
medical experts to provide data and analysis. Few of us are,
ourselves, experts in toxicology, oncology, biochemistry,
genetics, embryology, hydrostatics, and the other fields
involved in many of these issues, let alone experts in several of
them. Those who are experts in this field may not, of course, be
experts in political science (or even adept in politics) or ethics.
Furthermore, both sides of this debate will provide their own
experts, who may strongly disagree with each other over an
issue that can only be resolved by yet another expert. Therefore,
those of us who are not experts somehow have to determine
which experts to trust, and this is a frequent challenge in
resolving problems that arise in environmental ethics, whether
dealt with at a community level by political structures, or in
more formal legal procedures. We will encounter this challenge
a number of times in examining conflicts in environmental
ethics.
Reducing Waste Through Recycling
You have probably heard, or seen, the slogan “Reduce, Reuse,
Recycle.” Because so many of the harmful effects are produced
by obtaining natural resources, such as petroleum or copper or
coal, environmentalists have argued that it makes sense to lower
the demand for such commodities by using what we have
efficiently, using less, and utilizing the materials we have left
in producing new commodities rather than simply throwing
those materials away. In this section, we will see the arguments
put forth for this approach, and consider a couple of specific
examples.
Many of us may live in communities with a recycling program;
some cities have very aggressive recycling programs, while
others may have none. Generally, however, most communities
have recognized that recycling material such as plastic, glass,
and aluminum makes both more environmental sense and
economic sense than always producing more new plastic, glass,
and aluminum. It is becoming more and more common in any
given town to see trash receptacles sit side by side with
recycling receptacles.
It might be good to start with (just a few) statistics, to give an
indication of what can be recycled, what cannot, and just how
much that is thrown away might be used more productively.
As of 2011, plastics make up almost 13% of the municipal solid
waste (MSW) stream (trash), a dramatic increase from 1960,
when plastics were less than 1% of the waste stream.
Consequently, what happens to that plastic—whether it is
recycled or simply becomes part of the MSW stream, plays a
significant role.
• 32 million tons of plastic waste were generated in 2011,
representing 12.7 percent
of total MSW.
• In 2011, the United States generated almost 14 million tons of
plastics as containers
and packaging, about 11 million tons as durable goods, such as
appliances,
and almost 7 million tons as nondurable goods, for example
plates and cups.
• Only 8 percent of the total plastic waste generated in 2011 was
recovered for
recycling.
• In 2011, the category of plastics which includes bags, sacks,
and wraps was
recycled at about 11 percent.
• Plastics also are found in automobiles, but recycling of these
materials is counted
separately from the MSW recycling rate. (EPA, 2013, para. 2)
Americans produce a substantial amount of waste, but a few
more general facts give an
indication of just how much:
• Every year nearly 900,000,000 trees are cut down to provide
raw materials for American paper and pulp mills.
• Every year we generate around 14 million tons of food waste,
which is 106 pounds of food waste per person; 570,000 tons of
this is composted for a 4.1% recovery rate. The rest, or 13.4
million tons, is incinerated or landfilled and occupies 6.3
million cubic yards of landfilled MSW.
• Americans throw away about 28 billion bottles and jars every
year.
• It takes a 15-year-old tree to produce 700 grocery bags.
• Disposable diapers last centuries in landfills. An average baby
will go through
8,000 of them.
• In 1998, 62.8% of the 102 billion aluminum cans produced
were recycled. That totals 64 billion cans, 46 billion more than
in 1991. Aluminum can recycling saves 95% of the energy
needed to make aluminum from bauxite ore. Energy savings in
1998 alone were enough to light a city the size of Pittsburgh for
ten years. (EPA, 2012, para. 1–3, 5–6, 10)
Americans have become more conscious of these kinds of
numbers and facts, and many have become much more accepting
of recycling as an ordinary part of life. At the same
time, there is some indication that while Americans may be
more aware of recycling, they may not be doing as much of it as
they could:
• Currently, less than 35% of households and less than 10% of
businesses in theU.S. recycle.
• Those levels have barely improved in 15 years despite billions
of dollars spent oncompetitions, symposiums, awareness
campaigns, and sorting technologies.
• If U.S. recycling levels can reach 75%, environmental benefits
will include removing50 million cars from the road each year
and generating 1.5 million new jobs.(Recycle Across America,
2013, para. 1)
The Argument for Recycling
The argument in favor of recycling seems simple enough:
Material that is not recycled ends up in landfills, or is
incinerated. Each of these brings with it certain environmental
issues. Landfills are built in such a way that trash does not
readily decompose; they can leach toxins into the soil and
groundwater, and they generate methane, a greenhouse gas.
Incinerating waste, which is less common, and is often used to
generate electricity, also brings with it hazards, such as
releasing into the atmosphere various dioxins (a set of toxic
chemicals), metals, ash, and unpleasant odors; different
authorities disagree about whether this method generates
greenhouse emissions or actually reduces them by creating
energy through the incineration process.
If we recycle as much of the material that can be recycled, then
we have a correspondingly lower need for more landfills (or
incinerators). The point seems obvious: If I recycle one can, and
half of it goes into making the next can, I’ve reduced the waste
involved by 50%, relative to a can made out of completely new
material. Multiplying this by the population of a state, a
country, or a planet, we can see pretty quickly how this could
minimize the impact on the environment, and decrease the
amount of waste created.
The Argument Against Recycling
Most people seem to be aware of this, but there are arguments
against recycling that need to be considered. These
counterarguments tend to focus on three basic points:
1 Recycling is often done by combining some of the older,
recycled material with newer material; when recycling paper,
for instance, older paper is combined with new paper. Recycling
processes require considerable energy—with paper, for
example, not just to cut down the trees, but also to transport
them, and process the wood into pulp—and that must be
factored into the environmental impact. Some recycling
processes also employ chemicals; again, another introduction
into the environment that must be balanced against the
alternative.
2 Recycling may use already existing material, but there are
costs associated with it. Those who process the recycled
material are paid to do so; these costs are passed on to the
consumer. However, recycling programs are often subsidized by
local or state governments, and those costs are paid for by the
taxpayer. In considering the relative costs of purchasing a new
product or a product from recycled material, one often forgets
to include these “hidden” costs, such as taxes paid to subsidize
the recycling program.
3 Again, one must take into consideration all the factors that go
into recycling. Picking up recyclables and bringing them to be
processed uses petroleum; when processing various materials,
such as glass, paper, aluminum, and plastics, we use energy that
comes from burning fossil fuels. What is needed is a more
general accounting of the costs involved in recycling, in order
to compare those costs to other approaches. Comparative
figures, however, are difficult to obtain.
4
These arguments about recycling will continue, although as
techniques improve in terms of energy efficiency, more
effective recycling programs and techniques and the savings
brought about by large-scale participation may address some of
the opposing claims.
The Argument for Reducing and Reusing
The arguments about the other two strategies that are promoted
by those who wish to decrease the amount of waste produced
are, fortunately, considerably less contentious. Indeed, some of
these arguments have been around for centuries, if not
millennia.
A quick calculation: Johnny is an 8-year-old boy. He wakes up
in the morning and has a glass of juice and a glass of milk. At
lunch he has another glass of milk, and another glass of milk
when he comes home from school. After coming in from playing
outside, he has a glass of water, and then a glass of milk or soda
with dinner. He usually takes a glass of water with him when he
goes to bed. Thus, on this average day, if he uses a new glass
each time, he has used seven glasses, as have his sister, his
mother, and his father. That is 28 glasses; at that rate, the
family uses 196 glasses a week, 5,880 glasses a month, or
70,560 glasses a year. If this is an average family in a town of
100,000, that would be 7,056,000,000 glasses used in the town.
Assuming these aren’t cups that are just thrown away (another
environmental issue, as we’ve seen), each of these glasses needs
to be washed, which takes time, energy, water, and soap. That’s
a lot of glasses being washed. Had Johnny used the same glass
just for water, he would have saved 29% of the total; in the
town as a whole, 2,046,240,000 fewer glasses would need to be
washed, with a corresponding savings in time, energy, water,
and soap.
This is a simple example, of course, but it is representative of
what many of us heard from our parents (and our parents heard
from their parents): Don’t get a new glass each time you need
one; don’t buy a new plastic bottle of water instead of refilling
one you already have; use a cloth bag when going grocery
shopping instead of getting a new one each time; use both sides
of the paper. The opportunities for reusing resources, rather
than using new ones, are not just environmentally sound, they
also save money. Presumably, something that has both an
economic benefit and an environmental benefit is something
people need to consider a more important part of their routine.
Grandma would probably agree with these suggestions and have
some more of her own:
Plastic containers and reusable lunch bags are great ways to
take your lunch to school without creating waste.
Coffee cans, shoe boxes, margarine containers, and other types
of containers people throw away can be used to store things or
can become fun arts and crafts projects.
Don’t throw out clothes, toys, furniture, and other things that
you don’t want anymore. Somebody else can probably use them.
You can bring them to a center that collects donations, give
them to friends, or even have a yard sale.
Use paper grocery bags to make book covers rather than buying
new ones.
Use silverware and dishes instead of disposable plastic utensils
and plates.
Store food in reusable plastic containers. (Fact Monster, 2007,
para. 4)
The Argument Against Reducing and Reusing
There are few arguments against reducing and reusing
resources. Few would argue that we should use more water, or
plastic, or energy, when we can accomplish what we want or
need to and use less. Again, this is an example of something
that makes both environmental sense and economic sense.
Perhaps you live in an area of the country that gets cold; you
could run your thermostat at 73 degrees and be quite
comfortable, or you could be equally comfortable at 68 degrees
with a sweater on.
Saving energy, of course, saves money on one’s heating bill, as
well as reduces the demand for energy and the associated
environmental impact of finding and producing that energy. As
we saw with the drinking-glass example, saving energy can have
a substantial “multiplier effect.” If a particular change in
behavior lowers energy use by 2%, that may not sound like
much. But multiply that result by 150 million, and it can have a
substantial impact.
As noted, few people come out directly and argue that we
should use more energy, that our cars should get worse gas
mileage, that our heating and air conditioning systems should be
less effective, or that we should run our thermostats at 90
degrees when we are cold. Instead, we see economic arguments
that, indirectly, support some of those proposals. For example,
increasing gas mileage or CAFE (Corporate Average Fuel
Economy) standards are frequently opposed by the auto industry
because meeting those standards imposes costs on the industry
to retool machinery and redesign cars. For instance, the
Heartland Institute has argued that increasing these standards
will restrict consumers’ choices, although they “are better
positioned than regulators to choose the size, fuel economy, and
other features of the cars and trucks they buy” (n.d., para. 4).
Nor, according to Heartland, does it decrease dependence on
foreign oil.
Still, few argue that reducing energy and resource
consumption—provided it does not harm economic growth or
restrict opportunities—is not a reasonable strategy, all else
being equal. How one does that, however, remains a source of
contention.
Universal Waste
The term universal waste is reserved for specific kinds of
products, generally consumer products that contain mercury,
lead, butane, arsenic, cadmium, or other substances that can be
harmful to both humans and the environment. They call for
specific modes of disposal because they contain chemicals that,
if improperly disposed of (such as putting them in a landfill),
can contaminate the water, air, soil, and, potentially, food.
Some of the kinds of products that contain universal wastes are
fluorescent light bulbs (tubes), a number of electronic devices
such as computers and cell phones, batteries, thermometers and
other mercury-containing items, and glass picture tubes found in
televisions and computer monitors.
There aren’t a lot of disputes here; few if any people would
argue for the disposal of universal wastes in such a way that it
increases the risks to which innocent people are subjected. One
might, of course, point out that, as with many circumstances in
which it can take a bit longer or a take a bit more energy to do
the correct thing, people do not do it. One could, for instance,
put his or her batteries in the ordinary household trash—no one
is checking, after all. That may save this person the time and
energy required to dispose of the batteries correctly, at a
universal waste disposal site. But this isn’t, ethically, much
different than drunk driving. By driving drunk, one endangers
others (and oneself), although it may at the time seem more
convenient than calling a cab or finding a friend to drive. Most
of us would regard drunk driving as irresponsible, which is why
society has stiff penalties for being caught doing so; to argue
that one’s convenience is more important than the potential
harms one can cause to other innocent people would be
generally regarded as both short sighted and selfish. Similarly,
the incorrect disposal of universal waste poses a risk to others
(and oneself), and we would no more accept its convenience as
justifying posing that risk than we would accept convenience in
defense of driving while drunk. The more general point is that
society has the right to expect its members to obey those laws
(and conventions, or informal agreements) designed to protect
people from risks to which they should not be exposed. To fail
to obey those laws and conventions will seem, to most,
immoral, although the arguments for why that is can differ. A
utilitarian, for instance, might argue that correctly disposing of
universal wastes produces a general good that far outweighs any
benefits that one might gain by doing otherwise. A deontologist,
in contrast, could argue that doing something out of personal
convenience that harms another cannot be the kind of action
that could become universal law—would we be willing to be
treated that way, if we were subject to harms simply
foranother’s convenience?
8.2 The Issue: Business Interests Versus Environmental
Protection
How much responsibility should a corporation bear when it
comes to waste disposal? Do businesses and the general public
have differing levels of environmental accountability? In this
section, we will look at some of the concerns surrounding the
business community’s participation—or lack of it—in
environmental protection.
Environmental Harm
We noted that the “three Rs” of reducing, reusing, and recycling
are often suggested as ways to minimize the damage done to the
environment. These simple steps reduce the stress on the planet
and its resources, and help maintain an environment that is
sustainable for current and future generations. Generally, the
focus on environmental harms has been on air pollution, water
pollution, and soil pollution; more recently, the emphasis on
anthropogenic (human-made) climate change, and resource
depletion. The last two have generated some degree of
controversy; here we will look at three specific issues: the
threat pollution posts to groundwater, injecting toxins into the
environment that end up in the human bloodstream and nervous
system, and the risks to which the food supply is subject due to
environmental hazards. As we have already seen, these issues
often arise due to the potential conflict between a desire to
protect the environment and a need for economic development.
Polluted Groundwater
It is difficult to imagine life without water; the average person
can live only 3–5 days without it (Bryant, n.d.). Human beings
not only require water simply to live, but also for various
household needs (cooking, cleaning, etc.), recreation,
transportation, and business. It probably goes without saying
that water is a precious resource, and should be protected; yet it
is a resource that is in various ways threatened. It is estimated
that one in nine people on Earth (780 million) do not have
regular access to clean drinking water; polluted water brings
with it risks of ingesting toxic chemicals, but water-related
illnesses still kill some 3.4 million people a year. While some
countries have quite limited access to water, it has been
observed that “an American taking a five-minute shower uses
more water than the average person in a developing country
slum uses for an entire day” (Water.org, n.d., para. 6).
There are many threats to the water supply, too many to mention
in detail here. In general, though, the chief sources of
groundwater pollution are industrial sources (for example,
through the use of chemicals that may leach, as well as the
spilling of chemicals and fuels and mining byproducts),
agricultural sources (such as fertilizer runoff, pesticides, and
livestock waste), and individual sources (motor oil, paint,
detergents, and other products that may introduce various toxins
into the water stream). These hazards are increased in some
communities through extensive development, and the increase in
housing developments, streets, and parking lots; by limiting
opportunities for water to be absorbed through the soil, it
becomes concentrated by being directed toward storm sewers
(and picking up, along the way, various toxins such heavy
metals, gasoline, and fertilizer) (Oregon Environmental
Council, n.d.).
As is so often the case, there can be a conflict here between
economic development and maintaining a resource, in this case,
water. As a single example, one might consider the pork
industry, specifically in North Carolina. According to the North
Carolina Pork Council, “More than 46,000 North Carolina
citizens work full-time in pork production and over 80% of
North Carolina’s hog farms are owned and operated by
individual farm families” This is obviously an important
industry in North Carolina, and the Council insists
that “they are dedicated to ensuring that they will pass a clean
environment on to the next generation”(2006, para. 3). The
critics of large-scale hog farming, in contrast, observe that
ecosystems and their inhabitants are endangered by the waste
these large livestock farms generate (Natural Resources Defense
Council, 2013).
The challenge, of course, is trying to balance the economic
needs—the employment of the many North Carolinians in the
pork industry, and the secondary effects that employment has in
the North Carolina economy—with the protection of
groundwater. Can these two be reconciled? Do we have to make
a choice: either abandon large-scale hog farms, with their
accompanying manure lagoons and methane production, or
accept that the economic demands here outweigh the
environmental concerns? Is the public better served by one or
the other here? If public health is generally threatened by
contamination of the surrounding groundwater, we may be
forced to conclude that current practices are too risky, and that
agricultural practices need to be developed to minimize this
risk. Or we can argue that the current risks, while genuine, are
too small to require an expensive overhauling of contemporary
methods of food production; no activity is without its risks, and
society is constantly required to balance the two and make
difficult choices. Finally, how should society determine the
costs and benefits involved, and is there a point at which the
risks force regulators to impose restrictions on agricultural
production to require that any potential harms be minimized? As
we have seen, and will continue to see, environmental issues
frequently lead to difficult questions concerning the interaction
of economic goals, environmental goals, and the concern that
these two goals are irreconcilable.
Poisoning Human Populations
The expression body burden has been introduced to describe the
chemicals that one finds—from natural and from human-made
sources—in a person’s body. We can breathe them in, ingest
them in our food and water, absorb them through our skin, and
they can even be passed from a mother to a developing fetus.
All of us have some of these chemicals; some, such as arsenic,
pass through human beings quickly; others, such as mercury or
lead, can remain in organs, fat tissue, or other parts of our
bodies for years. Some pesticides can remain stored in the body
for as long as 50 years. Simply having chemicals in the
bloodstream is not the problem; rather, it is which chemicals
these are, and what their effects are. For a substance such as
dioxin or mercury, with substantial health risks, significant
vigilance is needed to minimize one’s exposure (Coming Clean,
n.d.).
Human beings are exposed to chemicals, which, as noted, occur
both naturally an in human-made products, constantly. Some
have unknown effects, and have not been sufficiently
researched; others have known effects that are quite harmful
(for example, lead and mercury); still others have known effects
that appear to be harmless in standard dosages (potassium).
Rather than trying to sort out the various results of the 80,000
chemicals in commercial use, here we can focus on dioxin,
which indicates how, once a risk is recognized, government and
industry may be able to work together to develop a potential
solution.
Dioxin is a name used to refer to a set of chemical compounds;
one, specifically known as TCDD, is particularly well studied.
It can be found in polyvinyl chloride, paper that has been
bleached with chlorine, and from certain products when
incinerated; it can also be naturally produced by volcanoes and
forest fires. There is some controversy about the health effects
of TCDD; one source states that studies “have linked dioxins to
cancer, disrupted hormones, reproductive damage such as
decreased fertility, neurological effects, immune system
changes and skin disorders” (Cone, 2012, para. 4), while the
EPA notes that “currently there is no clear indication of
increased disease in the general population attributable to
dioxin-like compounds” (DioxinFacts.org, n.d., para. 7).
Whether there are significant health hazards or not,
increased regulation, and cooperation between industry and
government, has decreased dioxin emission substantially in the
last 50 years.
This, then, seems to be an environmental success story; dioxins
may be a threat, their release was regulated, industry recognized
the necessity of those regulations, and the release and exposure
of dioxins—again, specifically TCDD—was decreased
significantly.
At the same time, new chemicals are introduced every year, and
it is difficult to determine their short- or long-term effects
without substantial and expensive studies being done. David
Ewing Duncan comments that “only a quarter of the 82,000
chemicals in use in the U.S. have ever been tested for toxicity”
(2006, para. 17).
As we have seen, industry, agricultural, and commercial
enterprises often generate some degree of risk. No one thinks it
even possible or desirable to eliminate human exposure to all
chemicals, and no one thinks it possible or desirable not to
regulate that exposure at all. Again, the balancing act that is
called for with some sources of the riskier aspects of the body
burden—such things as perfluorinated acids, bisphenol A, and
phthalates, which we may not even be aware of—must be
evaluated in terms of costs and benefits. Certainly, we can find
arguments that regulation of such dangerous chemicals as
mercury—a by-product of coal-burning power plants, and often
found in relatively high concentrations of fish—is insufficient,
even though the risks associated with elevated mercury levels in
human beings are well established. The political, economic, and
moral questions are difficult to disentangle here, but reconciling
the benefits of human health and the costs of reducing the
threats to that health are important questions. Answers to such
questions, of course, often raise challenges to those who
develop policy and legislation, yet the fundamental ethical
questions also remain: Whose good is being served by
regulations? Whose good is being served by limiting
regulations? Are environmental regulations too burdensome on
business, or inadequate to protect public health? Finally,
particularly in an area that requires chemical and medical
expertise, how can citizens who lack such expertise determine
what information is reliable, and what information is being
presented in such a way as to benefit a specific environmental
or industrial perspective?
Poisoning the Food Supply
Just as humans obviously need water, we need food to survive.
Yet a number of environmental concerns have been raised about
the quality of the food that is available. While access to food
itself, and healthful food specifically, varies around the world,
here we will focus specifically on the food supply in the United
States.
There are different perspectives on the food supply, and
different ways of describing potential threats to it. On the one
hand, “[W]e do have a very safe food supply,” according to
Sanford A. Miller, former director of the FDA’s Center for Food
Safety & Applied Nutrition (Carey, 2007, para. 5). On the other
hand, there are regularly stories of foodborne illness and recalls
issued of various foods, whether E. coli outbreaks from tainted
beef or salmonella risks from peanut butter. (Carey, 2007). The
Center for Disease Control “estimates that each year roughly 1
in 6 Americans (or 48 million people) gets sick, 128,000 are
hospitalized, and 3,000 die of foodborne diseases” (2013, para
1). Other concerns have been raised:
Bisphenol A (BPA), found in plastic bottles (including baby
bottles) and other plastic containers has been identified as
posing potential risks:
BPA has raised concerns because it appears to mimic the effects
of estrogen, interfering with hormone levels and cell signaling
systems. Previous studies have shown that people exposed to
high levels of BPA have a greater risk of developing uterine
fibroids, breast cancer, decreased sperm counts, and prostate
cancer. Babies and children are thought to be at greatest risk
from the exposure. (Kotz, 2008, para. 2)
Some companies that have focused on small batch production
and emphasized organic production methods have been bought
out by large corporations, such as Kellogg, Procter and Gamble,
and Coca-Cola. The suggestion has been made that the size of
these companies may prevent some of the close attention given
to the more traditional methods that smaller companies were
able to provide.
The use of antibiotics, hormones, and other supplements in
animal feed has raised fears about effects in humans who eat
these animals. Thus Donald Kennedy, former FDA
commissioner and president emeritus at Stanford University,
said, “There’s no question that routinely administering non-
therapeutic doses of antibiotics to food animals contributes to
antibiotic resistance” (McVeigh, 2012, para. 4).
• Similar concerns have been raised about genetically modified
(GM) foods; some research has associated GM corn with
hepatorenal toxicity that can damage the liver and kidneys (de
Vendômois, Roullier, Cellier, & Séralini, 2009); in 2013, the
voters of California voted down a proposition that would have
required manufacturers to label all foods with GM ingredients.
Advocates of the proposition noted that most of the funding
dedicated to defeating this proposition came from out of state,
largely from companies such as Monsanto, Cargill, and other
corporations with a large stake in GM foods (No on 37, n.d.),
outspending the opposition (those in favor of the proposition)
five to one.
• Bees are important for pollinating fruit and vegetable plants,
but there has been much worry expressed about the use of
herbicides, insecticides, and pesticides contributing to the
decline of the bee population, and the collapse of some bee
colonies (Tapparo, Marton, Giorio, Zanella, Solda et al., 2012).
These and other examples are frequently highlighted by those
who worry that humans are poisoning their own food supply.
Industry responds, naturally, by pointing out that many of these
risks are exaggerated or nonexistent. In addition, some genetic
modification allows certain plants to grow in places where they
otherwise could not, as well as extending the growing season
and increasing protection from pests and disease. This response
is summed up by those who insist that in the scientific
community, genetically modified organisms raise very little
alarm in the scientific community and that the science used to
create them is basic enough to teach to high school students
(Berezow, 2013).
Yet again, we see a need to balance what industry—here,
agriculture—needs against environmental concerns raised from
various sources. Each side has its experts supporting it, and
those of us who are not experts may have little or no ability to
determine which is correct. Should we be suspicious of the
claims made by companies that have a large financial stake in
GM food that such food is harmless? Should we be suspicious
of claims made by environmentalists who sometimes seem to
desire that large-scale agribusiness be unsuccessful and insist
that food be locally sourced and organic? What genuine threats
to the food supply exist, and how might they be prevented?
What is the legitimate role of regulation here—presumably we
don’t want people becoming sick or dying from eating—and
where does regulation become onerous and add unnecessarily to
our food costs? As we continue to see, balancing economic
issues with environmental issues brings with it political
challenges, leading to this fundamental issue: Can one be an
environmentally responsible producer (or consumer) without
placing an undue burden on business?
Corporate Responsibility
To whom is a corporation responsible? Assuming a corporation
is a for-profit enterprise, its fundamental goal is relatively
clear: It needs to make a profit. Of course, most corporations
recognize that this has to be seen in a larger context:
Corporations have employees and stockholders, and are located
within a community. The community itself may be taken to be
the local community, the larger surrounding community, the
state, the country, the continent, the hemisphere; for a large,
multinational corporation, its community may be the planet.
Environmental Decision Making
One influential description of the responsibilities a corporation
has was described succinctly by economist Milton Friedman:
“There is one and only one social responsibility of business—to
use its resources and engage in activities designed to increase
its profits so long as it . . . engages in open and free
competition, without deception or fraud” (1962, p. 133]).
However, another competing model has gained a good bit of
attention since Friedman’s description: stakeholder theory. The
stakeholder theory takes a broader view, that corporations have
a responsibility to shareholders, but also to “individuals and
constituencies that contribute, either voluntarily or
involuntarily, to [the corporation’s] wealth-creating capacity
and activities, and who are therefore its potential beneficiaries
and/or risk bearers “ (Post, Preston, & Sachs, 2002, p. 19).
Different interpretations of the stakeholder theory identify
distinct stakeholders (in addition to shareholders), but generally
these would include, at least, customers, employees, suppliers,
and members of the community. As we saw, however, the
corporation itself may determine what that community is, and
which of its members are sufficiently affected to qualify as
stakeholders.
Which of these models influences an analysis of a corporate
decision can alter how one regards corporate responsibility. For
instance, if I run a multinational paint company that generates a
certain amount of hazardous waste, how should I calculate its
disposal? Should I choose simply whatever is least expensive?
Should I choose whatever is least expensive that also minimizes
its hazardous effects? If I choose the least expensive disposal
method, this may lead to higher levels of toxins being released
in another country, but may lead to marginally higher profits
and, consequently, a higher return to my stockholders. Usually,
of course, such decisions are considerably more complex:
Decisions presumably can’t simply ignore whatever laws and
other restrictions that are in place wherever the hazardous waste
is disposed; I may have important stockholders who regard
environmental harm as worth the additional cost; I may have to
factor into the business decision the cost of any potential fines
(or even jail time) if I choose to ignore or try to skirt the
applicable regulations. As may already be clear, many of these
kinds of factors look different within the stakeholder model:
Customers, distributors, employees, and community members
may have a very different set of criteria than mere return on
investment when they evaluate such a decision (see Figure 8.1).
Furthermore, a corporation may regard its environmental
policies as part of its image or “brand,” and may see making
sound environmental practice part of its marketing strategy; a
company that has a reputation for being a responsible
environmental steward may, thereby, be more profitable in both
the short and long run.
Going Green on a Corporate Level
Various companies have adopted policies to be environmentally
responsible. For example, many hotel chains have developed
plans to reduce their energy and water usage, reduce waste sent
to landfills, and thus reduce their “carbon footprint.”
Organic Methods and Products
Considerable attention has been given in recent years to organic
food as an alternative to traditional methods of food production.
Whether or not organic food is better for human beings, or, for
that matter, is better for the environment, is the source of some
controversy. One 2012 study in the Annals of Internal Medicine
concluded that “the published literature lacks strong evidence
that organic foods are significantly more nutritious than
conventional foods. Consumption of organic foods may reduce
exposure to pesticide residues and antibiotic-resistant bacteria”
(Smith- Spangler, Brandeau, Hunter, Bavinger, Pearson et al.,
2012, para. 3).
Others have noted that organic methods not only do not produce
more nutritional food, but that conventional farming is more
effective, producing more food per acre of land (Palmer, 2012).
The tradeoff seems to be whether to use more land and organic
methods, or less land and traditional methods.
Those who advocate organic methods point not only to health
benefits for human beings, but also to benefits from decreased
use of pesticides and land improvement, and to the fact that
ethical stewardship of the land requires a “gentler” approach
than that used by traditional agriculture. The Organic Trade
Association argues that organic methods have these important
advantages:
Organic farms respect our water resources: The elimination of
polluting chemicals and nitrogen leaching, done in combination
with soil building, protects and conserves water resources.
Organic farmers build healthy soil: Soil is the foundation of the
food chain. The primary focus of organic farming is to use
practices that build healthy soils.
Organic farmers work in harmony with nature: Organic
agricultural respects the balance demanded of a healthy
ecosystem: wildlife is encouraged by including forage crops in
rotation and by retaining fence rows, wetlands, and other
natural areas.
Organic producers strive to preserve diversity: The loss of a
large variety of species (biodiversity) is one of the most
pressing environmental concerns. The good news is that many
organic farmers and gardeners have been collecting and
preserving seeds, and growing unusual varieties for decades.
Organic farming helps keep rural communities healthy: USDA
reported that in 1997, half of U.S. farm production came from
only 2% of farms. Organic agriculture can be a lifeline for small
farms because it offers an alternative market where sellers can
command fair prices for crops. (2013, para. 4–6, 8–9)
Clean Coal
Meanwhile, many of those in the coal industry have adopted
“clean coal technology,” with the coordinated goals of
continuing to use coal to produce energy and to do so in a way
that minimizes its environmental impact.
Improving Water Quality
Agribusiness has recognized the need for sustainable sources of
freshwater as well as its responsibility to help meet that goal.
Thus, companies have produced policy statements, plans of
action, and timetables to monitor their progress. One example is
the multinational agricultural producer, Cargill, which has
committed itself to freshwater efficiency.
Each of these programs has at least its share of critics; some
argue that “clean coal” is a contradiction in terms; others that
companies put out corporate statements of environmental
responsibility that conflict with the actual behavior of the
companies; while still others suggest that many corporate
business models will never hesitate to sacrifice environmental
benefits if they interfere with corporate profits.
One standard criticism of clean coal, for example, is that the
very idea rests upon some rather problematic claims. Coal
releases large amounts of CO2; to prevent that CO2 from being
released into the atmosphere (which is what makes it “clean”), a
method known as carbon capture and sequestration is required.
But that method itself requires a good deal of energy; as James
B. Meigs points out, “[A] coal-fired power plant
would have to burn roughly 25 percent more coal to handle
carbon sequestration while producing the same amount of
electricity” (2011, para. 6). Still more difficult is the actual
sequestration. Finally, it is not clear, at this point, whether such
a method would be successful in preventing the compressed
CO2 from leaking, and for how long. In short, its critics claim
that the problem with “clean coal” is that there may not be such
a thing (Meigs, 2011).
Ethical Views
The moral questions raised by many businesses are not
necessarily different for different ethical theories, and they may
not necessarily be analyzed differently by those theories. As is
often the case, questions of corporate responsibility must be
considered within the context of the actual issue involved, the
business model used, the corporate mission statement, the
theory—e.g., shareholder or stakeholder—utilized, the ethical
evaluations being made, and how the various factors within
those ethical evaluations are weighed. One utilitarian may look
at a coal company deciding not to add expensive but optional
“scrubbers” to minimize its mercury output; the greatest good
for the greatest number in this case might be determined, in this
specific analysis, to be based solely on return to investors of the
highest possible profits. No law is being broken, and the
company is fully complying with all relevant regulations. In
contrast, another utilitarian might well argue that such
scrubbers are worth the added cost, evaluating the benefits to
the community not just in terms of profit, but also in terms of
the risks of increased mercury contamination to current and
future customers, the company’s commitment to sustainability,
and its reputation for being a responsible member of the
community. Here we have two utilitarians with contrasting
conceptions of what the correct decision is to do in one specific
case. Presumably, one could make a similarly contrasting
argument from the perspective of two deontologists who
disagree with distinct assumptions about the values that should
be emphasized in such a decision.
8.3 The Issue: Personal Responsibility
In addition to corporate responsibility, all of us, as individuals,
have a relationship to our environment. What does it mean to
take personal responsibility to maintain and protect our
environment, not just for our own health and safety, but for
those
generations to follow? Do we have any obligations to protect
the environment, or should we regard it simply as a source of
resources to be exploited and utilized? If we do have such
obligations, what are they? Do they require us to change our
lifestyles in a radical way, or are there more moderate steps we
can take to reduce waste; negative effects on the air, soil, and
water; and carbon footprints? Some environmentalists argue that
only radical steps can be justified at this stage, given the
damage that has already been done and that continues; this is
particularly a common feature of discussions on anthropogenic
climate change. But others argue that we can make relatively
modest changes and have a cumulative effect that will minimize
our environmental impact and, in many cases, improve our
surroundings.
Environmentally Responsible Households
One simple step to take is disposing of household waste in the
appropriate way. Many of us have various kinds of waste:
leftover food, packaging, bottles, cans, and various kinds of
clutter that we accumulate and, at some point, want to discard.
There are other more hazardous kinds of waste, such as motor
oil, antifreeze, or leftover bug spray, as well as those we saw
under the title of “universal wastes”: solvents, cleaners,
electronic items, batteries, even thermometers. We might object
were we to see our next door neighbor pouring used motor oil
down a storm sewer, but there is little difference between this
and tossing batteries or cell phones into the trash, where they
will end up in a landfill. The EPA notes that improper disposal
of household waste can pose serious threats to both human
health and the environment; it directs consumers to community
resources aimed at disposing of hazardous items responsibly.
Going Green on an Individual Level
Various companies have recognized that there is significant
demand for products that are less stressful on the environment,
and that are regarded as safer for humans, including children, as
well as pets and other animals. Some of the products are
designed to save energy, water, or both. These include solar
panels, reusable water bottles, energy-saving light bulbs, low-
flow showerheads, and rechargeable batteries.
Meanwhile, ecologists recommend homeowners rely on natural
substances—as opposed to manufactured chemicals that may
pose health risks—for killing pests and weeds. For example, use
vinegar instead of glyphosate: One very commonly used weed
killer is made with glyphosate, which some studies have
connected with potential health risks in humans and other
animals. Using vinegar and water as a substitute has often been
recommended by home gardeners seeking an alternative to
glyphosate.
Many gardeners have found composting to be a productive way
to use organic household waste (such things as coffee grounds,
eggshells, bush and tree trimmings, etc.). Composting takes
these wastes and uses them to develop a nutrient-rich fertilizer
for the soil. Composting thus decreases the amount of waste that
is thrown away, and benefits the soil by adding nutrients.
Composting’s numerous benefits are listed on the EPA’s
website (see the Suggested Resources at the end of this
chapter.).
Are Green Products Affordable?
Environmentalists often stress the importance of changing one’s
lifestyle to be more “eco-friendly,” but most also insist that
such changes do not require much if any sacrifice on the part of
the individual. Rather, it is just getting into the habit of
choosing those products that have a relatively lower
environmental impact, as well as doing other things that are
easy to do but have a cumulative effect (reusing a cloth bag
when grocery shopping) and not doing things that have a
negative impact (improperly disposing of hazardous waste). Yet
it has been argued that some of the steps recommended in order
to decrease our negative impact on the environment, involve
expenses, and that many of us who would prefer to be more
environmentally responsible are not really in a financial
position to do so. While it might be obvious that to retrofit a
house with solar panels is a very expensive undertaking, it is
also the case that organic food is generally more expensive than
food grown in the more traditional fashion. A Denver Post
editorial notes that the use of wind and solar power will be
substantially more expensive than fossil fuels (Yeatman &
Cooke, 2010).
While this is a complaint about the differential energy costs
between these various options, most of us also know on a more
individual basis about costs that are involved in “being green.”
Sometimes these are financial costs, but there are also costs
associated with time, convenience, and missing out on
something: what economists call “opportunity costs.” It may be
more environmentally friendly (and better for me) to walk to
work, but what if I work 30 miles from where I live? Perhaps I
could bike, but that means I must risk riding a bike in traffic, as
well as showing up to work in less than pristine condition (in
other words, sweaty). Perhaps I could take public transit, but in
my community it is very inefficient, and to get to work requires
an hour and a half in transportation time that I could spend
doing something else. If the environment is my sole
consideration, then walking, biking, or public transportation
may be the correct choice; but most of us make these choices in
the context of busy schedules, other responsibilities, and other
activities that we either need to take part in, or at least would
like to.
Even cleaning products that are “green” tend to be more
expensive—in some cases, quite a bit more expensive—than the
standard ones we might recognize, and some have argued that
the organic products are not as effective (a claim strongly
rejected by those who make organic cleaners and other
household products). The question then becomes one that we
saw earlier in other contexts: Do I want my house to appear
slightly less clean, for more money, or appear cleaner, for less
money? Even if the organic products are as effective as others,
they are more expensive: Perhaps the question is not so much
whether I think it is worth the extra money to do what I can to
protect the environment, it is whether I can afford to buy the
organic products. Many people feel as if there really is little or
no choice in the matter. After all, if one doesn’t have the funds
to make a positive environmental impact, it may not matter what
one desires to do.
Those who advocate using organic cleaners, eating organic
food, and taking other steps generally recognize that, currently,
there are additional costs to doing so. At the same time, they
have two responses:
The more people begin to realize the benefits of being “green”
(or at least “greener”), the more the laws of supply and demand
will take effect. More companies will recognize the profits
available in offering environmentally friendly products;
competition will bring prices down; and the free market will
respond, as it is designed to do, to meet customer demand with
efficient, safe, and affordable green alternatives. In short, when
these choices become increasingly popular, economies of scale
will function to make them affordable for many more people.
There are costs to using the older, less eco-friendly products, in
terms of health care costs, loss of productivity due to job
absences, diminished quality of life, and other costs that may be
“hidden,” but are no less genuine. When these costs are factored
in, green products may be considerably closer in price to the
alternative, and these costs also provide some motivation for
both government money, and private equity firms, to subsidize
and investment in sustainable products and technologies.
Medication Disposal
Many of us have specific forms of hazardous waste in our
homes, which must be disposed of an appropriate way.
However, one particular form of hazardous waste has not been
mentioned; although very common, it can be overlooked in such
discussions, and should not be. This is the disposal of medical
waste: drugs, such as antibiotics, as well as syringes (and other
“sharps” such as scalpels or lancets), disposable gloves,
incontinence products, blood-soaked bandages, etc. Such waste
is produced in hospitals, labs, clinics, nursing homes, medical
offices, and even schools and tattoo parlors, but it is not
unusual for some of these things to be in individual homes:
Regardless of their source, however, they need to be disposed of
properly.
Obviously enough, some medical waste poses a significant
health threat: A contaminated needle can be a biohazard, and
can lead to infectious diseases; a number of different kinds of
medical waste can carry with them some sort of health risk if
not disposed of properly. Additionally, but importantly, is the
question of unused medications. These pose various risks:
Children may accidentally swallow them, and prescription drug
abusers may be tempted to steal them. A more significant threat
may come from a standard way many people used to dispose of
unwanted medicine—by flushing it down the toilet. This sends
the various pharmaceuticals into the waterways, introducing
their active agents into that water, which can be absorbed by
fish and can even find their way into drinking water. Observers
point out that scientists have detected medicines in both surface
and groundwater, not to mention the soil. Even low levels of
medicine in an ecological system pose health risks to land and
marine life (Take Back Your Meds, 2010).
In contrast, the U.S. Food and Drug Administration has
prepared a list of medicines it regards as safe for disposal by
flushing (n.d.); presumably, this means that medicines not on
this list may not be safe to flush. The EPA has an extensive
discussion of the issues involved on its website:
http://water.epa.gov/scitech/swguidance/ppcp/index.cfm. In any
case, as is clear, this method of disposal is the source of some
controversy. In any case, it is important to be aware of the
issue, and to become better informed about the risks involved
with improper disposal of all medical waste, including both
over-the-counter and prescription pharmaceuticals.
8.4 Applying the Theories
We began our look at environmental ethics by considering what
happened in Hinkley, California. Was Pacific Gas and Electric
guilty of polluting the groundwater, and thus responsible for
some of the illnesses and even deaths that occurred there? Was
this charge unfair, and were the claims that PG&E caused these
results overblown and exaggerated? Or is there a third
possibility to consider, that all economic activity—including
that of PG&E—carries with it certain risks, but those risks are
manageable and are the kind of thing a society has to accept in
order to flourish economically?
These questions, to a large extent, are raised in terms of
economics, cost–benefit analysis, profit and loss, health care
costs, etc. But there are also ethical considerations here as well.
If we have an accurate account of what PG&E did—or didn’t
do—then we can examine whether it did the right thing: not the
right thing necessarily in terms of economic gain (or in terms of
instrumental value) but in terms of moral values. Is the
company’s behavior justified on moral grounds, or does it
deserve to be criticized on those same grounds? Here we will
look at a utilitarian defense of PG&E’s corporate behavior, and
then contrast it with an objection to that behavior in terms of
deontology. Then we will turn to relativism, to see how that
perspective might look at this specific situation.
Utilitarian
The case concerning PG&E contains important factual questions
that are difficult to answer with certainty. Nonetheless, PG&E
settled for $333 million in 1996, another $295 million in 2006,
and a final payment of $20 million in 2008. These are
significant damages, but in the long run they become part of the
cost of doing business, and many of the costs are, undoubtedly,
passed on to PG&E’s customers.
A utilitarian examining this case has to determine what the
costs and the benefits are in this particular situation. On the one
hand, there are the disputed health effects of PG&E’s operation
in Hinkley, the costs of the cleanup, as well as the costs of
litigation and the damages paid to those in the lawsuit. Without
dismissing the potential and genuine damages that may have
been involved, a broader perspective also needs to be brought to
bear in this case. The operation that caused the groundwater
contamination was natural gas decompression; Hinkley had one
of the many stations that are required to decompress natural gas
between its original sources and its final delivery stage. To
minimize rust in the cooling towers, chromium 6 was used, and
the discharged water was kept in unlined pools; this had been
done since 1952. When we look at the broader picture, however,
we see several compelling facts: PG&E is a major source of
energy in California, upon which people rely. Without a
consistent, affordable power source, households would be
prevented from doing a great number of things, from laundry to
watching TV to running air conditioning and heating.
Furthermore, without this reliable source of natural gas to the
many industries in California that use it, the California
economy would grind to a halt; people would be thrown out of
work, agriculture and industry would be irreparably harmed,
taxes would be raised to pay for unemployment and other costs
associated with a sharp increase in unemployment. Additionally,
all the salaries and benefits have a multiplier effect: Those who
lose their jobs working for PG&E no longer have money for
babysitters, going out to eat, and other items on which they
traditionally spend their disposable income. In turn, all those
who rely on that money are harmed. In short, even if the worse
case scenario is painted of PG&E’s activity in Hinkley, the
alternative is almost incalculably worse and affects far larger
numbers of people. It is virtually impossible to make a utility
calculation under which more people—again, on the worst case
scenario— would be better off were PG&E prevented from the
exploration, development, and delivery of natural gas. All such
activity has risks, but the benefits so vastly outweigh the risks
than on any utilitarian evaluation, PG&E did the right thing.
This conclusion hardly supports the idea that corporations can
do what they wish without any consideration of effects on
people and on the environment. Obviously enough, once the risk
of chromium 6 had been established, PG&E had an obligation to
respond and to minimize that risk. That is not only the ethical
result that would be suggested by the utilitarian; it is also sound
business practice. But on a utilitarian view, assuming that no
energy production is 100% risk free—a very safe assumption—
one must balance those risks and address them as effectively as
possible, but recognize that those risks do not outweigh the
rewards of a generally safe, affordable, and necessary source of
energy. At the same time, it should be noted that different
utilitarians will evaluate the specific benefits—and therefore the
overall benefits—of an activity differently, just as they may
evaluate the costs differently. How much does one value
preventing a child from developing asthma, or a potentially
fatal disease? How does one weigh the value of a low
unemployment rate in a town, with all the direct and indirect
benefits it provides? As we’ve seen, clean air and clean water
may have some specifiable value; at what point does the value
of making air cleaner not justify the expense required to do so,
or the sacrifice of economic development it might require? As
should be clear, adopting a utilitarian perspective on
environmental issues does not eliminate the complex arguments
that can occur within utilitarianism.
Deontological
Deontologists, specifically those influenced by Kant, take as
fundamental to their ethical theory two basic points: We must
never treat another human being as a mere means to an end
(human beings, that is, cannot be treated as having solely
instrumental value), and we must act in such a way that our
decisions could be universalized—that our decision, in the
given context, would be what everyone should do in that same
situation. PG&E’s actions violated both of these requirements,
and thus were immoral.
PG&E used a dangerous chemical, chromium 6, long after it was
recognized to pose serious health risks to human beings and
other animals. As a profit-oriented organization, it is
understandable that PG&E wished to keep its costs down;
however, using unlined pools to store water that had been
contaminated with chromium 6 was a decision that treated the
people of Hinkley as means to the end of PG&E. Rather than
treating those people with the dignity and respect required,
which they deserve simply in virtue of being human beings,
PG&E dealt with them as one of several obstacles to overcome
in order to achieve its end, namely the highest profits possible.
To sacrifice people for profits in such a way is to violate the
first principle of deontological ethics, and to deny them their
inherent, intrinsic value; doing so is, of course, unethical.
PG&E had a moral obligation to take into consideration the
human beings and the potential hazards they were being
exposed to; to ignore those factors, simply to achieve its goal,
is immoral.
Unless the lawyers prosecuting the case against PG&E were
trained as Kantian deontologists, it was probably not asked in
court whether they regarded their actions as universalizable, or
following the Kantian categorical imperative that one act only
in accordance with that maxim through which you can at the
same time will that it become a universal law. While a lawyer
might have asked PG&E what the results might have been had
all energy companies had such a cavalier attitude toward
exposing human beings to such risks, it seems more plausible
that PG&E would have been asked this: Would you think you
were being treated ethically if you lived in Hinkley? Or perhaps
the company was asked if it would object if such procedures,
such as storing water contaminated with chromium 6, were kept
in unlined pools in the neighborhood where PG&E’s directors,
legal team, and all their children lived. In this way, we can
bring out the universality test by appealing to the Golden Rule:
If you would object to being exposed to chromium 6, then
obviously it would be wrong to expose others.
Because PG&E’s behavior treated others solely as means to an
end, and could not defend that behavior as being in conformity
with a law that could be made universal, it was fundamentally
immoral. Such violations of human dignity cannot be defended
on the basis of profits or other consequences; the act itself is in
violation of these fundamental principles and must be found to
be unethical.
Relativism
The relativist has various options here in considering PG&E’s
behavior. Perhaps the community of Hinkley thought the risk
was worth it, particularly if they got jobs and relatively
inexpensive energy out of it. Perhaps the community of Hinkley
thought the risk was not worth it, and decided to ban all
operations of PG&E from Hinkley. Perhaps the community of
Hinkley wished to make a trade with PG&E: For free natural
gas for the next 50 years, PG&E could flood the town with
water contaminated with chromium 6. While the last option
seems implausible, it is difficult to see what result the relativist
could not, in theory, support; it is a function of what the
community regards as what is best for the community.
One might suggest that appealing to relativism here in drafting
actual legislation and policy would be a logistical nightmare.
How is it decided what, precisely, the community supports? Is it
done on the basis of majority rule? Why would majority rule
necessarily be favored by this community? After all, relativism
doesn’t have some in-principle commitment to democracy or
majoritarianism, does it? Furthermore, if majority rule is used
to determine what the community wishes to do, this brings with
it the various objections to such a procedure that have been
prominent since at least Socrates: One thing most of those in the
minority are quite familiar with are their views being ignored,
or worse, by those in the majority. As Socrates (and Plato) also
observed, experts in a community are rarely the majority of that
community; thus, if we want experts (for instance, on the
hazards of chromium 6) to make these decisions, then that is the
rule of the few: an aristocracy or an oligarchy.
But in defense of relativism in this context, it is more likely a
question of the general sense of the community’s priorities,
rather than a question of how policy is formulated or legislation
enacted. Some communities may wish to make the tradeoff:
cheaper energy and a higher risk (within reason) of some
cancers; if the risk is seen to be relatively low, and the payoff
relatively high, some communities may think this well worth it.
At the same time, other communities may look at the same
calculations and data and decide it is not worth the risk; they
may choose to decrease the potential health risks and pay higher
energy costs. Each community chooses what is best for that
community, and neither is necessarily wrong. The one issue that
does arise here, however, is the traditional question of NIMBY:
“Not in My Back Yard.” If a community claims that PG&E must
be able to maintain its cooling towers, but doesn’t want those
towers in its own town—it wants them in someone else’s
backyard—that can generate problems, particularly since the
cooling towers have to go in someone’s backyard. This is a
common feature of those necessary consequences of activities
that bring with them unavoidable risks, such as toxic dumps and
hazardous waste incinerators. People need them and want the
benefits, but they want someone else to assume the risks. Here
again we run into the problem of externalities, and the degree to
which these conflicts have been solved in ways that could
generally be regarded—on any ethical theory—as fair.
Conclusions
Environmental hazards are unavoidable: Whether obtaining
natural gas by hydraulic fracturing (“fracking”), mining and
burning coal for electricity, or developing sophisticated
antibiotics, many technological developments bring with them
risks. Evaluating the benefits and risks is an essential
component of making sound environmental and economic
decisions, and it is important—although often very difficult—to
balance in an appropriate way the demands made on the
environment by development and progress with the desire to
preserve and protect the beauty and value of nature. How we
view the value of nature—as having only instrumental value, or
also as having intrinsic value—will do a great deal to determine
how we evaluate the issues involved and what balance is to be
struck. Assuming, as it is safe to do, that progress and
development will continue, those concerned about also
maintaining their commitment to the stewardship of nature will
also continue to confront vexing and difficult challenges.
We have seen a number of the different stresses human beings
put on the environment, in terms of the need for resources, be it
coal, petroleum, water, food, or even medicine and health care.
As we head further into the 21st century, several factors seem
especially crucial:
The economic development and increased energy use of
countries that in the past made fewer demands on the system:
specifically the two largest countries in the world, India and the
People’s Republic of China. Adding that increased demand to a
system that, in many cases, already seems taxed will raise many
challenging economic, ethical, and environmental issues; one
advantage is that the leadership of these countries seems well
aware of these challenges.
The continuing threat posed by anthropogenic climate change.
While there are those who regard it as a natural result of climate
patterns, or even a hoax, the most recent data indicate that 97%
of those who work in the relevant fields regard climate change
as real and as likely the result of human activity (NASA, n.d.).
Various consequences may follow from increases in
temperature, including increased energy in storms (hurricanes,
cyclones), much higher sea levels that can inundate low-lying
areas (Manhattan, Bangladesh, Indonesia), and various threats
to animal populations and to the food supply. If climate change
is a genuine threat, then most of the other environmental
concerns pale in comparison.
An environment’s ability to process, absorb, and otherwise deal
with such hazards to that environment (pollution, waste) is
called its “sink function.” Some have suggested that human
activity, if unchecked, risks causing the Earth’s sink function,
or ability to deal with such stresses on the system, to shut down.
Some environmental economists have argued that this aspect of
the Earth’s ecology does not receive sufficient attention, risking
long-term damage to the planet.
Chapter Summary
In this chapter, we have looked at some important
environmental concerns, although many more important
concerns could not be examined. As we saw, both corporations
and individuals have a role to play in protecting the
environment, particularly if both developed and developing
economies wish to grow and flourish. Over the last several
decades, society’s awareness of the various threats to the
environment has increased considerably, with a resulting
increased focus on the need to “go green” (or at least greener).
While these challenges will persist, and in some contexts
possibly become worse, with this increased awareness also
comes a new desire to develop more sustainable products and a
more sustainable approach to development, including
minimizing the human carbon footprint to the greatest extent
possible.
Suggested Resources
Corporate Statements on Responsible Environmental Practices
American Coalition for Clean Coal Electricity:
http://www.cleancoalusa.org/clean-coal-technology
Cargill Statement on freshwater efficiency:
http://www.cargill.com/corporate-responsibility/environmental-
sustainability/ environmental-goals-actions/freshwater-
efficiency/index.jsp
Exxon’s environmental statement:
http://www.exxonmobil.com/Corporate/safety_env.aspx
Hilton’s environmental statement:
http://www.hiltonworldwide.com/corporate-
responsibility/sustainably/
Hyatt’s environmental statement:
http://thrive.hyatt.com/environmentalSustainability.html
Marriott’s environmental statement:
http://www.marriott.com/corporate-social-
responsibility/corporate-environmental -responsibility.mi
Walmart’s statement on sustainability:
http://corporate.walmart.com/global-responsibility/environment-
sustainability
Safe Disposal of Medical Waste
FDA links to each state’s laws and other relevant information:
http://www.epa.gov/osw/nonhaz/industrial/medical/programs.ht
m
California database where one can search by county and by
waste type (e.g., sharps, pharmaceuticals) for disposal facilities:
http://www.calrecycle.ca.gov/homehazwaste/healthcare/collecti
on/
Example of a pharmaceutical buy-back program:
http://newjerseyhills.com/madison_eagle/news/pharmacy-
collects-unused-drugs-that -pose-risk-of-abuse-
pollution/article_94f71f98-9a02-11e1-925f-0019bb2963f4.html
Critics of Corporate Environmental Programs
http://www.hcn.org/articles/clean-coal-is-an-
oxymoron/print_view
http://www.monsantowatch.org/
http://247wallst.com
EPA Suggestions for household waste disposal:
http://www.epa.gov/osw/conserve/materials/hhw.htm
Benefits of composting, according to the EPA:
http://www.epa.gov/composting/basic.htm
Pesticide alternatives:
http://www.sciencedaily.com/releases/2009/08/090816170910.ht
m
Universal Waste
http://www.dtsc.ca.gov/hazardouswaste/universalwaste/
Organic Food
http://www.mayoclinic.com/health/organic-food/NU00255
Clean Coal
http://www.cleancoalusa.org/clean-coal-technology
Article
Kokmen, L. (2008, March-April). Environmental justice for all.
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 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx
 Strategic Management 6HO705 Module Handbook .docx

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Strategic Management 6HO705 Module Handbook .docx

  • 1. Strategic Management 6HO705 Module Handbook Spring 2016 Sydney Moyo Lecturer [email protected] Belvedere, Floor 1 Page 2 Module Title: Strategic Management Module Code: 6HO705 Number of Credits: 20 Credit Level: 6 Learning Hours: 200
  • 2. Key words: MODULE DESCRIPTION Service sector organisations must recognise the need to stay abreast of changes in the external environment and remain goal focused to ensure company objectives are met in both the short and long term. Increasing competition, dynamic customer demand and the pace of technology have led to a realisation that organisations need to flexible, agile and responsive to change. To this end, businesses need to identify and critically examine future developments within the service sector, and develop appropriate management strategies and actions to facilitate change. Organisations that are risk adverse will take longer to proactively meet the changing external environment and this module seeks to develop an awareness of the organisational approach to risk by analysing appetite and maturity levels. The module aligns with the nationally recognised need for undergraduates to have a far deeper understanding and greater knowledge of international issues and general awareness of the global agenda. LEARNING OUTCOMES
  • 3. On successful completion of the module, students will be able to: 1. Critically analyze strategic and non-strategic decisions, positions and the differences between functional, business-level and corporate- level strategies. 2. Evaluate the role of risk, uncertainty, and trade offs play in strategic decision making. 3. Critically assess the need for change, develop strategies for managing change and monitor the change. INDICATIVE CONTENT • The process of strategic planning; the service sector business environment; current and future perspectives and challenges • Understanding the context of global strategic alliances, mergers and acquisitions • Globalisation of markets and competition to include the phenomenon of both global and glocal markets combined with localised responses to Global integration.
  • 4. Page 3 • Global marketing, branding, standardisation, advertising, positioning the role of media, business Internet space • Global financial management, project financing, currency fluctuations, global capital structures, funding control • Risk Management, Appetite and Maturity • Strategies for managing change • Managing culture in global organisations • Internationalisation and diversification of organisations MODULE LEARNING AND TEACHING METHODS A variety of learning and teaching methods will be used including: lectures, workshops, group work, class discussions, case studies and critical reflection on your studies. Lectures will offer theoretical perspectives that will be explored in depth through lecture sessions focused on group working. Tutorial sessions will be contextualized to different industries to support related product and organizational development strategies, but these will be predominantly student-led to allow for further
  • 5. discussion, debate and independent thought of the topics covered in the module. The module will be delivered via a combination of lectures that will be generic whilst the seminars / tutorials will be contextualized to the subject area. Page 4 MODULE OUTLINE W Lectures Tutorials Cloud Activity 10 Introduction to strategic management and strategy framework Discuss strategies for managing knowledge and strategy framework questions Read article, ‘What’s your
  • 6. strategy for managing knowledge 11 Understanding strategic management & deliberate and emergent strategy Discuss Case Study ‘Northern European Tour Operator’ using Mintzberg’s five Ps Read Case study : NextJet’s Change Mission & link it to Strategy for managing knowledge 12 Mission & Vision : Objectives. Assessing Internal Environment Discuss articles creating mission statement & strategies & link to levels of strategic decision-making Watch Hilton Worldwide – Vision, Mission & Values & Case example – Hotels & Airlines 13 Analyzing External
  • 7. Environmental : Porter’s 5 Competitive Forces and Strategic Positioning - SWOT Formative Presentations for Course Work 02 & discussion of firm competitive advantage Article reading: firm resources and competitive advantage & link to strategy framework 14 Strategic Tools 1 and auditing resources capabilities approach & manager competencies Course Work 02 Presentations and slides submitted to turnitin at 15h00 of presentation day Reflections on challenges of future Hotels and Tomorrow’s Hospitality Manager & Co- Alignment Principle 15 Strategic Tools 11: Strategic choice, Porters Generic strategies and Ansoff growth strategies
  • 8. Group discussions on Learning Organizations and links to Strategic Tools Read articles : Leader’s role in building learning organizations and integrated risk management 16 Managing change and innovation and role of force field theory and related theories Formative Presentations for Course Work 01 and watch clip force field presentation Group Learning Sets select a business environment and evaluate external Pest forces 17 Managing change at individual, business and corporate levels of impact Discuss challenges of getting managers to think strategically Submission report for Course Work 01. Meet submission
  • 9. deadline Friday 15h00 18 SM Learned & Reflected Stories SM Learned & Reflected Stories SM Learned & Reflected Stories *Content of above is subject to change… please refer to the course materials posted in Moodle. Page 5 FORMATIVE ASSESSMENT These are assessments such as mini-presentations and written exercises that you as a student in a group or individually will undertake during lectures and in tutorial sessions. Feedback for these will be given during the tutorial sessions. These assignments are not formally graded but are designed to enhance the student learning experience and skills. In addition there will be an opportunity in Week 13 to share
  • 10. your findings in the class with peers and the module leader. The feedback will be useful to further develop the learning. Opportunities for individual consultation with the module leader would be made available by arranging an appointment to discuss your group presentation and individual report ideas. SUMMATIVE ASSESSMENTS Weighting: 100% Coursework Coursework 01: Assessing learning outcomes 1 & 2 Weighting: CW01: 50% / CW02: 50% Coursework 01: Assessing learning outcome 2 & 3 Coursework 02: Assessing learning outcome 1 & 2 COURSEWORK CW 1 (50%) The course work is an individual report where you are required to write a report on the case organization’s implementation of its chosen strategy. The report should analyze and evaluate the organizations chosen strategy highlighting its suitability given the competitive environment. The report should also address the consequential implications of change that will occur as the strategy is implemented and suggest how organizations could manage these changes so that the strategy is
  • 11. effectively implemented. The report should demonstrate selected strategic management process of a current business setting and evidence how intervention techniques have been applied for improving business effectiveness. The report is justified using analyzed and evaluated theories. This is a 2,500 word report. The purpose of this report assignment is aimed at developing skills for proposing and implementing strategic analysis and changes that has an impact on hospitality business environments. Students will select and analyze hospitality industry workplace events, programs or services and propose strategic change for improvement. The report will be based on Learning outcome 2 & 3 Page 6 The following structure for the individual report guideline is recommended: Title page: Include report title, students’ names and students’ numbers, module name and code, assessment task, lecturer’s name and date. Background: Description of the business situational context. Explanation as to why analyzing the organizational case strategy is important and
  • 12. explanation of the competitive environment. In approximately 200- 300 words, provide a basic background to the strategic communication plan, state the purpose of the report and provide overview of the rest of the content. Contents page: List the contents of the essay report (headings, sub-headings) and the page numbers they appear on. Presentation of main ideas: Analyze and evaluate your chosen organizational business strategy supported with theoretical perspectives and strategic processes. A. Analyze the organization’s external competitive environment to identify opportunities and threats. B. Analyze the organization’s internal operating environment to identify the organization’s strengths and weaknesses. Critical evaluation: Evaluate the implications and justifications on how strategies are implemented and outline how the changes are managed effectively. A. Justify how selected strategies are consistent with mission and major goals of
  • 13. the organization. B. Demonstrate how employed strategies are congruent and constitute a viable business model. C. Reflect on the role you played either as an internal consultant or internal change agent in improving business or organizational effectiveness. Conclusion: In 300 – 400 words state the summary and evaluation of the ideas and statement of your own point of view with reasons. Explain why organizational managers should select the outlined strategies. *Support your report with examples and evidence of theories and models from academic literature readings of strategic management and intervention techniques discussed in class and module content. * Select a different hospitality business for this report than the one you used for your group work presentations. Page 7
  • 14. Referencing in the text: Reference all citations in the text of the assessment. Referencing section: Provide references on a separate page at the back of the report using Harvard method. Appendices: If appropriate, provide appendices. FORMATTING GUIDELINES • All reports should be typed using 12p text, 1.5 line spacing and Arial/Times. • All reports should be spell checked. • All sources must be referenced using the Harvard Referencing System. • All full reference list of all sources must be included at the end of the report. Please save your file as 161_6EM705_CW01_LastName FirstName.doc Submission Date: Friday of Week 17 (3rd June, 2016), not later than 15:00hrs. Only one electronic copy of your report should be submitted to Turn It In via Moodle. There is no provision for late submissions, unless otherwise approved by your Programme Leader.
  • 15. Please refer to the Programme Handbook for regulations pertaining to late submissions, resubmissions, and extenuating circumstances. COURSEWORK CW 2 (50%) The course work is a presentation where as part a group of 4-5 persons you are required to prepare a presentation (15 minutes). The purpose of this presentation will address and focus on the impact and evaluation of the external environment of an industry organization (hospitality & events sectors), and the influence this has on strategic choice of the relevant organization. The task is not about describing strategic theories, but a proper integration of theory and selected plans or processes that demonstrate confidence use of strategic techniques. The task is justified through academic literature and strategic human resource management. You will demonstrate critical and creative use of strategic theories to demonstrate how organizations within the hospitality and events industry are improved. Submission Date: The presentations will take place in (Week 14 - week starting May 9th, 2016)
  • 16. Page 8 The following considerations or questions will be useful guides for conceptualizing and evaluating problem issues of your organization. • Select a hospitality business company with the approval of module teacher. • What might be some of the common barriers to change and improvement this organization may face? • How can this organization make necessary changes without exposing the organization to unacceptable risks? • Why is it critical to propose strategic analysis and change to justify future added value and competitive advantage for the organization? * Selected a different hospitality business for this presentation than the one you will use for your report. The following structure for the presentation guideline is recommended: • Background of the chosen organization with a clear focus on vision and
  • 17. mission goals. • Identification and justification of chosen strategy level for change and how realistic and achievable objectives of change are delivered. • Evaluate role of risk, uncertainty, and trade offs applied in strategic decision making. • Identification of impacts of change processes and justify how these are achieving the aim and objectives leading into diagnosing and managing change competitively. • Application of appropriate theoretical strategies and intervention methods for implementing proposed changes. • Critically evaluate the urgency for change to justify how selected intervention methods or models that foster realization of change. • Conclusion: To critically evaluate and reflect how the outlined theoretical and practical change models have provided support towards your strategic change plans. PLAGIARISM Individual assignments are what the title suggests – your own, individual pieces of
  • 18. work. Copying all or part of another person’s work is not permitted. If there is considerable likeness between assignments actions might be taken. Failure to fully reference all your sources could be construed by the marker/tutor as intentional and therefore as plagiarism. Plagiarism is a serious academic offence. It arises when a student is suspected of presenting work undertaken by other people as if it were their own. Page 9 A student is liable to be found guilty of plagiarism if any work presented for individual assessment is found to contain the unacknowledged work of some other person or persons. If this involves deliberate misrepresentation of material as the student’s own in an attempt to deceive the examiners then the offence is very grave indeed. All sources should be cited and all quotations from the works of other authors clearly identified as such. If a student’s work is found to contain verbatim (or near verbatim) quotation from the work of other authors (including other students past or present) without clear acknowledgement, then plagiarism has been committed whether or not the
  • 19. student intended to deceive the examiners. This rule also applies to the fraudulent provision of work by anyone for use by a student as his/her own. Please do not leave anything to chance. SHMS has strict rules regarding plagiarism and has specialist electronic surveillance equipment to determine if the work is plagiarised. ATTENDANCE In line with the student participation contract, this contract will be considered as breached if the student has missed two sessions of the module without good cause, where one lecture or one tutorial or one lesson constitutes a session. In this case, the student receives a verbal warning. A third session missed incurs a final warning letter. In the event of a fourth session missed, the student will be de- registered from the module in question. Registers will be taken for every session. Page 10
  • 20. THE UNDERGRADUATE GRADING SCALE % mark Mark Descriptors Class 70- 100% Excellent Outstanding; high to very high standard; a high level of critical analysis and evaluation, incisive original thinking; commendable originality; exceptionally well researched; high quality presentation; exceptional clarity of ideas; excellent coherence and logic. Trivial or very minor errors. First 60- 69% Very good A very good standard; a very good level of critical analysis and evaluation; significant originality; well researched; a very good standard of presentation; pleasing clarity of ideas; thoughtful and effective presentation; very good sense of coherence and logic; Minor errors only. Secon d Div
  • 21. 1 50- 59% Good A good standard; a fairly good level of critical analysis and evaluation; some evidence of original thinking or originality; quite well researched; a good standard of presentation; ideas generally clear and coherent, some evidence of misunderstandings; some deficiencies in presentation. Secon d Div 2 40- 49% Satisfactory A sound standard of work; a fair level of critical analysis and evaluation; little evidence of original thinking or originality; adequately researched; a sound standard of presentation; ideas fairly clear and coherent, some significant misunderstandings and errors; some weakness in style or presentation but satisfactory overall. Third 35-
  • 22. 39% Unsatisfactory Overall marginally unsatisfactory; some sound aspects but some of the following weaknesses are evident; inadequate critical analysis and evaluation; little evidence of originality; not well researched; standard of presentation unacceptable; ideas unclear and incoherent; some significant errors and misunderstandings. Marginal fail. Fail 5-34% Very poor Well below the pass standard; a poor critical analysis and evaluation; no evidence of originality; poorly researched; standard of presentation totally unacceptable; ideas confused and incoherent, some serious misunderstandings and errors. A clear fail well short of the pass standard. 0-4% Nothing of merit Nothing, or hardly anything, of merit submitted. When no work has been submitted the NS notation will apply Page 11
  • 23. INDICATIVE LEARNING RESOURCES The list below is by no means exhaustive and you will be expected to use journals both in the Learning Centre and electronically. There is also a wealth of information available on the Internet, but please use this wisely and selectively. Remember that this area of research covers many different subject areas so look beyond tourism, hospitality and events literature and try to assess the applicability of the wider literature. Link to ASPIRE reading list Johnson, Scholes & Whittington, (2008), Exploring Corporate Strategy (8th Ed), FT Prentice Hall Johnson, Scholes, Whittington, Angwin, Regner (2008), Exploring Strategy (10th Ed), Pearson ASTD Research, (Aug 2014) Change Agents: The Role of Organizational Learning in Change Management, Product Code 191407 John Kotter and Holger Rathgeber, Sep 2006, Our Iceberg Is Melting: Changing and Succeeding under Any Conditions Major strategy consulting firms have enormous amount of information on the
  • 24. subject. www.mckinsey.com, www.bcg.com, www.bain.com Finance books D’Angelo, J.M. (2006) Spa business strategies : a plan for success. Clifton Park, NY. Thomason Delmar Learning Davies, D.B. (2005) Managing financial information. (2nd ed) London. Chartered Institute of Personnel and Development Knott, G. (2004) Financial management .(4th ed) Basingstoke. Palgrave Macmillan Sutherland, J. and Canwell, D. (2004) Key concepts in accounting and finance Basingstoke. Palgrave MacMillan Turban, E. [et al.] (2006) Electronic commerce 2006: a managerial perspective Upper Saddle River, N.J. Prentice Hall Page 12 Finance journals British Journal of Management
  • 25. Journal of Management Studies Management Today Marketing books Fletcher, R. (2004) International e-business marketing. Australia. Thomson Jobber, D. (2007) Principles and practice of marketing (5th ed) Maidenhead. McGraw Hill Publishing Company. Kirby, J. and Marsden P. (2006) Connected marketing Oxford : Butterworth- Heinemann Mudie, P. and Pirrie, A. (2006) Services marketing management (3rd ed) Oxford. Butterworth-Heinemann Palmer, A. (2007) Principles of services marketing (5th ed) London. McGraw-Hill Higher Education Smith, I (2003) Meeting customer needs (3rd ed) Oxford. Butterworth-Heinemann Smith, P. (2005) emarketing excellence : the heart of ebusiness (2nd ed). Elsevier Butterworth-Heinemann Zeithaml, V A and Bitner, M J, (2006) Services marketing (4th ed) London. McGraw-Hill Higher Education Marketing journals
  • 26. International Journal of Advertising International Journal of Hospitality Management Journal of Integrated Marketing Communications Journal of Marketing Journal of Marketing Management Journal of Services Marketing Journal of Travel & Tourism Marketing Journal of Vacation marketing Human resource books Beardwell, I., Holden, L. & Claydon, T. (2004) Human Resource Management, a contemporary approach. (4th ed) Harlow. Prentice Hall. Boella, M. J. (2005) Human resource management in the hospitality industry: an introductory guide. (8th ed) Oxford. Page 13 Bratton, J. & Gold, J. (2007) Human resource management theory & practice. (4th ed) Basingstoke. Macmillan Business. Butterworth-Heinemann. (also available as an e-book) Dick, P. & Ellis, S. (2006) Introduction to organizational behaviour. (3rd ed) Maidenhead. McGraw-Hill.
  • 27. Huczynski, A & Buchanan, D (2004) Organisational behaviour: an introductory text. (5th ed) Harlow. Pearson Education. Lashley, C. & Lee-Ross, D. (2003) Organization behaviour for leisure services. Oxford. Butterworth-Heinemann. Nickson, D. (2006) Human resource management for the hospitality and tourism industries. Oxford. Butterworth-Heinemann. (also available as an e-book) Rayner, C. & Adam-Smith, D. (eds) (2009) Managing and leading people. (2nd ed) London. Chartered Institute of Personnel and Development. Van der Wagen, L. (2006) Human resource management for events: managing the event workforce. Oxford. Butterworth-Heinemann. (also available as an e- book) Some of these journals are dedicated to one of the fields (Human Resource Management; Harvard Business Review; People Management; Event Management and the International Journal of Hospitality Management; and International Journal of Culture, Tourism and Hospitality Research) Article · Kokmen, L. (2008, March-April). Environmental justice for
  • 28. all. UTNE Reader. Retrieved from http://www.utne.com/environment/environmental-justice-for- all.aspx · The article provides information about environmental ethics and will support completion of the Applying Theory: Environmental Issues—assignment this week. Accessibility Statement does not exist. Privacy Policy Mosser, K. (2013). Ethics and social responsibility (2nd ed.) [Electronic version]. Retrieved from https://content.ashford.edu/ Introduction American naturalists such as John Muir (1838–1914), Aldo Leopold (1887–1948), and Edward Abbey (1927–1989) have long pointed to the importance of protecting the environment. However, genuine issues arise between those who wish to leave the environment as it is, and those who wish to utilize it for other purposes, such as drilling, development, or mining. These issues have become much more common topics of debate in recent decades, with increased energy and other demands placing stress on the environment. With the first “Earth Day” in 1970, various environmental groups began to develop more effective political organizations, and the environmental movement began to play a significant role in American politics. The Environmental Protection Agency (EPA) was begun, also in 1970, during the administration of President Richard Nixon, in order to protect both human health and the environment by developing laws and reviewing regulations. In this chapter, we will explore some of the questions that arise within the context of environmental ethics, the study of the moral relationship between human beings and their surroundings, including nonhuman components found within those surroundings. Throughout, we will examine difficult issues, such as how to balance the economic benefits of development with the benefits (economic and otherwise) of a wilderness or beach or forest. Do
  • 29. we have a right to clean water and to clean air? If so, how are those rights enforced, and how do we maintain those rights without inhibiting important economic gains? And do we have an obligation to leave a sustainable environment to the generations that will follow us? 8.1 The Issue: Hazardous Waste Disposal Hazardous waste is a problem for many communities around the world. The obvious answer to what should be done with it is to simply avoid creating it. Given that total avoidance is improbable, corporations have designed methods to reduce hazardous waste, including recycling, reducing waste, treating the waste, trading excess materials to other businesses, and other methods. Here we will discuss a well-known hazardous waste case.In a small town, an unemployed mother of three is down on her luck; after a failed lawsuit, she convinces her attorney to take her on as a clerk. In between filing and other drudgery required of such clerks, she starts hearing about strange illnesses in her town and their unusual frequency and starts investigating. Eventually, she discovers that a major corporation has been storing water that has become toxic in unlined ponds. That water eventually leached into the groundwater and subsequently contaminated the town’s drinking water. The law clerk begins to work with her attorney to bring legal action against the giant corporation, and her spirit and unwillingness to give up eventually wins the day. The giant corporation is forced to pay those who had been harmed by the water pollution $333 million; the mother herself gets $2 million. Except for the corporation, everyone lives happily ever after. This kind of thing sounds a bit too good to be true; in fact, it sounds like a movie. This is unsurprising, since it is a movie: Erin Brockovich tells the story (based on actual events) of one woman’s struggle against the economic power structure to obtain justice for those outside of that structure. In addition to it being a classic David versus Goliath story, where the faceless, all-powerful giant is slain by the righteous but powerless fighter, the story also is representative of many
  • 30. environmental battles. Often, as we will see, those engaged in these battles are in a conflict over resources, money, and the environment. Those who prefer to develop, drill, or mine may regard the benefits of that activity as more important than maintaining the wilderness or landscape as it is. In contrast, those who wish to maintain a pristine environment will regard that as priceless, and thus not worth ruining for some jobs or to extract energy or minerals. Still others will advocate a middle course, promoting sensible development that minimizes the harm to the environment without neglecting the important economic rewards that such development may provide. As is often the case with movies, reality is a bit messier than one might realize from seeing Erin Brockovich. Those in the town—Hinkley, California—who received payment from Pacific Gas and Electric (PG&E) have suggested that the amount of money they were promised turned out to be much less than they actually received, that attorneys kept the money for months without paying interest on it, and that excessive legal fees reduced the awards substantially (Sharp, 2000). A toxic “plume” containing the carcinogen chromium 6 (hexavalent chromium) had been the original source of the contamination that led to the 1996 lawsuit Brockovich began. In 2008, however, it was discovered that the plume was spreading again, and had become two miles long and a mile wide. PG&E attempted to stem the growth of this plume, but also sought to buy some of the affected property and provided bottled water to concerned residents (Schwartz, 2010). A study carried out by the California Cancer Registry seemed to indicate that cancer rates—a particular concern in Hinkley, given the known effects of chromium 6—were not, in fact, elevated in most cases. An epidemiological study came to a similar conclusion, stating that its findings do not support claims of a generalized cancer excess in Hinkley, although the cervix, prostate, and colorectal cancer findings reveal
  • 31. underutilization of cancer screening in the Hinkley tract. These findings are consistent with previous assessments that did not identify a cancer excess in the Hinkley tract (Morgan & Reeves, 2011). This final point brings to our attention a concern that frequently occurs in environmental disputes: the need for scientific and/or medical experts to provide data and analysis. Few of us are, ourselves, experts in toxicology, oncology, biochemistry, genetics, embryology, hydrostatics, and the other fields involved in many of these issues, let alone experts in several of them. Those who are experts in this field may not, of course, be experts in political science (or even adept in politics) or ethics. Furthermore, both sides of this debate will provide their own experts, who may strongly disagree with each other over an issue that can only be resolved by yet another expert. Therefore, those of us who are not experts somehow have to determine which experts to trust, and this is a frequent challenge in resolving problems that arise in environmental ethics, whether dealt with at a community level by political structures, or in more formal legal procedures. We will encounter this challenge a number of times in examining conflicts in environmental ethics. Reducing Waste Through Recycling You have probably heard, or seen, the slogan “Reduce, Reuse, Recycle.” Because so many of the harmful effects are produced by obtaining natural resources, such as petroleum or copper or coal, environmentalists have argued that it makes sense to lower the demand for such commodities by using what we have efficiently, using less, and utilizing the materials we have left in producing new commodities rather than simply throwing those materials away. In this section, we will see the arguments put forth for this approach, and consider a couple of specific examples. Many of us may live in communities with a recycling program; some cities have very aggressive recycling programs, while
  • 32. others may have none. Generally, however, most communities have recognized that recycling material such as plastic, glass, and aluminum makes both more environmental sense and economic sense than always producing more new plastic, glass, and aluminum. It is becoming more and more common in any given town to see trash receptacles sit side by side with recycling receptacles. It might be good to start with (just a few) statistics, to give an indication of what can be recycled, what cannot, and just how much that is thrown away might be used more productively. As of 2011, plastics make up almost 13% of the municipal solid waste (MSW) stream (trash), a dramatic increase from 1960, when plastics were less than 1% of the waste stream. Consequently, what happens to that plastic—whether it is recycled or simply becomes part of the MSW stream, plays a significant role. • 32 million tons of plastic waste were generated in 2011, representing 12.7 percent of total MSW. • In 2011, the United States generated almost 14 million tons of plastics as containers and packaging, about 11 million tons as durable goods, such as appliances, and almost 7 million tons as nondurable goods, for example plates and cups. • Only 8 percent of the total plastic waste generated in 2011 was recovered for recycling. • In 2011, the category of plastics which includes bags, sacks, and wraps was recycled at about 11 percent. • Plastics also are found in automobiles, but recycling of these materials is counted separately from the MSW recycling rate. (EPA, 2013, para. 2) Americans produce a substantial amount of waste, but a few more general facts give an
  • 33. indication of just how much: • Every year nearly 900,000,000 trees are cut down to provide raw materials for American paper and pulp mills. • Every year we generate around 14 million tons of food waste, which is 106 pounds of food waste per person; 570,000 tons of this is composted for a 4.1% recovery rate. The rest, or 13.4 million tons, is incinerated or landfilled and occupies 6.3 million cubic yards of landfilled MSW. • Americans throw away about 28 billion bottles and jars every year. • It takes a 15-year-old tree to produce 700 grocery bags. • Disposable diapers last centuries in landfills. An average baby will go through 8,000 of them. • In 1998, 62.8% of the 102 billion aluminum cans produced were recycled. That totals 64 billion cans, 46 billion more than in 1991. Aluminum can recycling saves 95% of the energy needed to make aluminum from bauxite ore. Energy savings in 1998 alone were enough to light a city the size of Pittsburgh for ten years. (EPA, 2012, para. 1–3, 5–6, 10) Americans have become more conscious of these kinds of numbers and facts, and many have become much more accepting of recycling as an ordinary part of life. At the same time, there is some indication that while Americans may be more aware of recycling, they may not be doing as much of it as they could: • Currently, less than 35% of households and less than 10% of businesses in theU.S. recycle. • Those levels have barely improved in 15 years despite billions of dollars spent oncompetitions, symposiums, awareness campaigns, and sorting technologies. • If U.S. recycling levels can reach 75%, environmental benefits will include removing50 million cars from the road each year and generating 1.5 million new jobs.(Recycle Across America, 2013, para. 1) The Argument for Recycling
  • 34. The argument in favor of recycling seems simple enough: Material that is not recycled ends up in landfills, or is incinerated. Each of these brings with it certain environmental issues. Landfills are built in such a way that trash does not readily decompose; they can leach toxins into the soil and groundwater, and they generate methane, a greenhouse gas. Incinerating waste, which is less common, and is often used to generate electricity, also brings with it hazards, such as releasing into the atmosphere various dioxins (a set of toxic chemicals), metals, ash, and unpleasant odors; different authorities disagree about whether this method generates greenhouse emissions or actually reduces them by creating energy through the incineration process. If we recycle as much of the material that can be recycled, then we have a correspondingly lower need for more landfills (or incinerators). The point seems obvious: If I recycle one can, and half of it goes into making the next can, I’ve reduced the waste involved by 50%, relative to a can made out of completely new material. Multiplying this by the population of a state, a country, or a planet, we can see pretty quickly how this could minimize the impact on the environment, and decrease the amount of waste created. The Argument Against Recycling Most people seem to be aware of this, but there are arguments against recycling that need to be considered. These counterarguments tend to focus on three basic points: 1 Recycling is often done by combining some of the older, recycled material with newer material; when recycling paper, for instance, older paper is combined with new paper. Recycling processes require considerable energy—with paper, for example, not just to cut down the trees, but also to transport them, and process the wood into pulp—and that must be factored into the environmental impact. Some recycling processes also employ chemicals; again, another introduction into the environment that must be balanced against the alternative.
  • 35. 2 Recycling may use already existing material, but there are costs associated with it. Those who process the recycled material are paid to do so; these costs are passed on to the consumer. However, recycling programs are often subsidized by local or state governments, and those costs are paid for by the taxpayer. In considering the relative costs of purchasing a new product or a product from recycled material, one often forgets to include these “hidden” costs, such as taxes paid to subsidize the recycling program. 3 Again, one must take into consideration all the factors that go into recycling. Picking up recyclables and bringing them to be processed uses petroleum; when processing various materials, such as glass, paper, aluminum, and plastics, we use energy that comes from burning fossil fuels. What is needed is a more general accounting of the costs involved in recycling, in order to compare those costs to other approaches. Comparative figures, however, are difficult to obtain. 4 These arguments about recycling will continue, although as techniques improve in terms of energy efficiency, more effective recycling programs and techniques and the savings brought about by large-scale participation may address some of the opposing claims. The Argument for Reducing and Reusing The arguments about the other two strategies that are promoted by those who wish to decrease the amount of waste produced are, fortunately, considerably less contentious. Indeed, some of these arguments have been around for centuries, if not millennia. A quick calculation: Johnny is an 8-year-old boy. He wakes up in the morning and has a glass of juice and a glass of milk. At lunch he has another glass of milk, and another glass of milk when he comes home from school. After coming in from playing outside, he has a glass of water, and then a glass of milk or soda with dinner. He usually takes a glass of water with him when he goes to bed. Thus, on this average day, if he uses a new glass
  • 36. each time, he has used seven glasses, as have his sister, his mother, and his father. That is 28 glasses; at that rate, the family uses 196 glasses a week, 5,880 glasses a month, or 70,560 glasses a year. If this is an average family in a town of 100,000, that would be 7,056,000,000 glasses used in the town. Assuming these aren’t cups that are just thrown away (another environmental issue, as we’ve seen), each of these glasses needs to be washed, which takes time, energy, water, and soap. That’s a lot of glasses being washed. Had Johnny used the same glass just for water, he would have saved 29% of the total; in the town as a whole, 2,046,240,000 fewer glasses would need to be washed, with a corresponding savings in time, energy, water, and soap. This is a simple example, of course, but it is representative of what many of us heard from our parents (and our parents heard from their parents): Don’t get a new glass each time you need one; don’t buy a new plastic bottle of water instead of refilling one you already have; use a cloth bag when going grocery shopping instead of getting a new one each time; use both sides of the paper. The opportunities for reusing resources, rather than using new ones, are not just environmentally sound, they also save money. Presumably, something that has both an economic benefit and an environmental benefit is something people need to consider a more important part of their routine. Grandma would probably agree with these suggestions and have some more of her own: Plastic containers and reusable lunch bags are great ways to take your lunch to school without creating waste. Coffee cans, shoe boxes, margarine containers, and other types of containers people throw away can be used to store things or can become fun arts and crafts projects. Don’t throw out clothes, toys, furniture, and other things that you don’t want anymore. Somebody else can probably use them. You can bring them to a center that collects donations, give them to friends, or even have a yard sale.
  • 37. Use paper grocery bags to make book covers rather than buying new ones. Use silverware and dishes instead of disposable plastic utensils and plates. Store food in reusable plastic containers. (Fact Monster, 2007, para. 4) The Argument Against Reducing and Reusing There are few arguments against reducing and reusing resources. Few would argue that we should use more water, or plastic, or energy, when we can accomplish what we want or need to and use less. Again, this is an example of something that makes both environmental sense and economic sense. Perhaps you live in an area of the country that gets cold; you could run your thermostat at 73 degrees and be quite comfortable, or you could be equally comfortable at 68 degrees with a sweater on. Saving energy, of course, saves money on one’s heating bill, as well as reduces the demand for energy and the associated environmental impact of finding and producing that energy. As we saw with the drinking-glass example, saving energy can have a substantial “multiplier effect.” If a particular change in behavior lowers energy use by 2%, that may not sound like much. But multiply that result by 150 million, and it can have a substantial impact. As noted, few people come out directly and argue that we should use more energy, that our cars should get worse gas mileage, that our heating and air conditioning systems should be less effective, or that we should run our thermostats at 90 degrees when we are cold. Instead, we see economic arguments that, indirectly, support some of those proposals. For example, increasing gas mileage or CAFE (Corporate Average Fuel Economy) standards are frequently opposed by the auto industry because meeting those standards imposes costs on the industry to retool machinery and redesign cars. For instance, the Heartland Institute has argued that increasing these standards will restrict consumers’ choices, although they “are better
  • 38. positioned than regulators to choose the size, fuel economy, and other features of the cars and trucks they buy” (n.d., para. 4). Nor, according to Heartland, does it decrease dependence on foreign oil. Still, few argue that reducing energy and resource consumption—provided it does not harm economic growth or restrict opportunities—is not a reasonable strategy, all else being equal. How one does that, however, remains a source of contention. Universal Waste The term universal waste is reserved for specific kinds of products, generally consumer products that contain mercury, lead, butane, arsenic, cadmium, or other substances that can be harmful to both humans and the environment. They call for specific modes of disposal because they contain chemicals that, if improperly disposed of (such as putting them in a landfill), can contaminate the water, air, soil, and, potentially, food. Some of the kinds of products that contain universal wastes are fluorescent light bulbs (tubes), a number of electronic devices such as computers and cell phones, batteries, thermometers and other mercury-containing items, and glass picture tubes found in televisions and computer monitors. There aren’t a lot of disputes here; few if any people would argue for the disposal of universal wastes in such a way that it increases the risks to which innocent people are subjected. One might, of course, point out that, as with many circumstances in which it can take a bit longer or a take a bit more energy to do the correct thing, people do not do it. One could, for instance, put his or her batteries in the ordinary household trash—no one is checking, after all. That may save this person the time and energy required to dispose of the batteries correctly, at a universal waste disposal site. But this isn’t, ethically, much different than drunk driving. By driving drunk, one endangers others (and oneself), although it may at the time seem more convenient than calling a cab or finding a friend to drive. Most of us would regard drunk driving as irresponsible, which is why
  • 39. society has stiff penalties for being caught doing so; to argue that one’s convenience is more important than the potential harms one can cause to other innocent people would be generally regarded as both short sighted and selfish. Similarly, the incorrect disposal of universal waste poses a risk to others (and oneself), and we would no more accept its convenience as justifying posing that risk than we would accept convenience in defense of driving while drunk. The more general point is that society has the right to expect its members to obey those laws (and conventions, or informal agreements) designed to protect people from risks to which they should not be exposed. To fail to obey those laws and conventions will seem, to most, immoral, although the arguments for why that is can differ. A utilitarian, for instance, might argue that correctly disposing of universal wastes produces a general good that far outweighs any benefits that one might gain by doing otherwise. A deontologist, in contrast, could argue that doing something out of personal convenience that harms another cannot be the kind of action that could become universal law—would we be willing to be treated that way, if we were subject to harms simply foranother’s convenience? 8.2 The Issue: Business Interests Versus Environmental Protection How much responsibility should a corporation bear when it comes to waste disposal? Do businesses and the general public have differing levels of environmental accountability? In this section, we will look at some of the concerns surrounding the business community’s participation—or lack of it—in environmental protection. Environmental Harm We noted that the “three Rs” of reducing, reusing, and recycling are often suggested as ways to minimize the damage done to the environment. These simple steps reduce the stress on the planet and its resources, and help maintain an environment that is sustainable for current and future generations. Generally, the focus on environmental harms has been on air pollution, water
  • 40. pollution, and soil pollution; more recently, the emphasis on anthropogenic (human-made) climate change, and resource depletion. The last two have generated some degree of controversy; here we will look at three specific issues: the threat pollution posts to groundwater, injecting toxins into the environment that end up in the human bloodstream and nervous system, and the risks to which the food supply is subject due to environmental hazards. As we have already seen, these issues often arise due to the potential conflict between a desire to protect the environment and a need for economic development. Polluted Groundwater It is difficult to imagine life without water; the average person can live only 3–5 days without it (Bryant, n.d.). Human beings not only require water simply to live, but also for various household needs (cooking, cleaning, etc.), recreation, transportation, and business. It probably goes without saying that water is a precious resource, and should be protected; yet it is a resource that is in various ways threatened. It is estimated that one in nine people on Earth (780 million) do not have regular access to clean drinking water; polluted water brings with it risks of ingesting toxic chemicals, but water-related illnesses still kill some 3.4 million people a year. While some countries have quite limited access to water, it has been observed that “an American taking a five-minute shower uses more water than the average person in a developing country slum uses for an entire day” (Water.org, n.d., para. 6). There are many threats to the water supply, too many to mention in detail here. In general, though, the chief sources of groundwater pollution are industrial sources (for example, through the use of chemicals that may leach, as well as the spilling of chemicals and fuels and mining byproducts), agricultural sources (such as fertilizer runoff, pesticides, and livestock waste), and individual sources (motor oil, paint, detergents, and other products that may introduce various toxins into the water stream). These hazards are increased in some communities through extensive development, and the increase in
  • 41. housing developments, streets, and parking lots; by limiting opportunities for water to be absorbed through the soil, it becomes concentrated by being directed toward storm sewers (and picking up, along the way, various toxins such heavy metals, gasoline, and fertilizer) (Oregon Environmental Council, n.d.). As is so often the case, there can be a conflict here between economic development and maintaining a resource, in this case, water. As a single example, one might consider the pork industry, specifically in North Carolina. According to the North Carolina Pork Council, “More than 46,000 North Carolina citizens work full-time in pork production and over 80% of North Carolina’s hog farms are owned and operated by individual farm families” This is obviously an important industry in North Carolina, and the Council insists that “they are dedicated to ensuring that they will pass a clean environment on to the next generation”(2006, para. 3). The critics of large-scale hog farming, in contrast, observe that ecosystems and their inhabitants are endangered by the waste these large livestock farms generate (Natural Resources Defense Council, 2013). The challenge, of course, is trying to balance the economic needs—the employment of the many North Carolinians in the pork industry, and the secondary effects that employment has in the North Carolina economy—with the protection of groundwater. Can these two be reconciled? Do we have to make a choice: either abandon large-scale hog farms, with their accompanying manure lagoons and methane production, or accept that the economic demands here outweigh the environmental concerns? Is the public better served by one or the other here? If public health is generally threatened by contamination of the surrounding groundwater, we may be forced to conclude that current practices are too risky, and that agricultural practices need to be developed to minimize this risk. Or we can argue that the current risks, while genuine, are too small to require an expensive overhauling of contemporary
  • 42. methods of food production; no activity is without its risks, and society is constantly required to balance the two and make difficult choices. Finally, how should society determine the costs and benefits involved, and is there a point at which the risks force regulators to impose restrictions on agricultural production to require that any potential harms be minimized? As we have seen, and will continue to see, environmental issues frequently lead to difficult questions concerning the interaction of economic goals, environmental goals, and the concern that these two goals are irreconcilable. Poisoning Human Populations The expression body burden has been introduced to describe the chemicals that one finds—from natural and from human-made sources—in a person’s body. We can breathe them in, ingest them in our food and water, absorb them through our skin, and they can even be passed from a mother to a developing fetus. All of us have some of these chemicals; some, such as arsenic, pass through human beings quickly; others, such as mercury or lead, can remain in organs, fat tissue, or other parts of our bodies for years. Some pesticides can remain stored in the body for as long as 50 years. Simply having chemicals in the bloodstream is not the problem; rather, it is which chemicals these are, and what their effects are. For a substance such as dioxin or mercury, with substantial health risks, significant vigilance is needed to minimize one’s exposure (Coming Clean, n.d.). Human beings are exposed to chemicals, which, as noted, occur both naturally an in human-made products, constantly. Some have unknown effects, and have not been sufficiently researched; others have known effects that are quite harmful (for example, lead and mercury); still others have known effects that appear to be harmless in standard dosages (potassium). Rather than trying to sort out the various results of the 80,000 chemicals in commercial use, here we can focus on dioxin, which indicates how, once a risk is recognized, government and industry may be able to work together to develop a potential
  • 43. solution. Dioxin is a name used to refer to a set of chemical compounds; one, specifically known as TCDD, is particularly well studied. It can be found in polyvinyl chloride, paper that has been bleached with chlorine, and from certain products when incinerated; it can also be naturally produced by volcanoes and forest fires. There is some controversy about the health effects of TCDD; one source states that studies “have linked dioxins to cancer, disrupted hormones, reproductive damage such as decreased fertility, neurological effects, immune system changes and skin disorders” (Cone, 2012, para. 4), while the EPA notes that “currently there is no clear indication of increased disease in the general population attributable to dioxin-like compounds” (DioxinFacts.org, n.d., para. 7). Whether there are significant health hazards or not, increased regulation, and cooperation between industry and government, has decreased dioxin emission substantially in the last 50 years. This, then, seems to be an environmental success story; dioxins may be a threat, their release was regulated, industry recognized the necessity of those regulations, and the release and exposure of dioxins—again, specifically TCDD—was decreased significantly. At the same time, new chemicals are introduced every year, and it is difficult to determine their short- or long-term effects without substantial and expensive studies being done. David Ewing Duncan comments that “only a quarter of the 82,000 chemicals in use in the U.S. have ever been tested for toxicity” (2006, para. 17). As we have seen, industry, agricultural, and commercial enterprises often generate some degree of risk. No one thinks it even possible or desirable to eliminate human exposure to all chemicals, and no one thinks it possible or desirable not to regulate that exposure at all. Again, the balancing act that is called for with some sources of the riskier aspects of the body burden—such things as perfluorinated acids, bisphenol A, and
  • 44. phthalates, which we may not even be aware of—must be evaluated in terms of costs and benefits. Certainly, we can find arguments that regulation of such dangerous chemicals as mercury—a by-product of coal-burning power plants, and often found in relatively high concentrations of fish—is insufficient, even though the risks associated with elevated mercury levels in human beings are well established. The political, economic, and moral questions are difficult to disentangle here, but reconciling the benefits of human health and the costs of reducing the threats to that health are important questions. Answers to such questions, of course, often raise challenges to those who develop policy and legislation, yet the fundamental ethical questions also remain: Whose good is being served by regulations? Whose good is being served by limiting regulations? Are environmental regulations too burdensome on business, or inadequate to protect public health? Finally, particularly in an area that requires chemical and medical expertise, how can citizens who lack such expertise determine what information is reliable, and what information is being presented in such a way as to benefit a specific environmental or industrial perspective? Poisoning the Food Supply Just as humans obviously need water, we need food to survive. Yet a number of environmental concerns have been raised about the quality of the food that is available. While access to food itself, and healthful food specifically, varies around the world, here we will focus specifically on the food supply in the United States. There are different perspectives on the food supply, and different ways of describing potential threats to it. On the one hand, “[W]e do have a very safe food supply,” according to Sanford A. Miller, former director of the FDA’s Center for Food Safety & Applied Nutrition (Carey, 2007, para. 5). On the other hand, there are regularly stories of foodborne illness and recalls issued of various foods, whether E. coli outbreaks from tainted beef or salmonella risks from peanut butter. (Carey, 2007). The
  • 45. Center for Disease Control “estimates that each year roughly 1 in 6 Americans (or 48 million people) gets sick, 128,000 are hospitalized, and 3,000 die of foodborne diseases” (2013, para 1). Other concerns have been raised: Bisphenol A (BPA), found in plastic bottles (including baby bottles) and other plastic containers has been identified as posing potential risks: BPA has raised concerns because it appears to mimic the effects of estrogen, interfering with hormone levels and cell signaling systems. Previous studies have shown that people exposed to high levels of BPA have a greater risk of developing uterine fibroids, breast cancer, decreased sperm counts, and prostate cancer. Babies and children are thought to be at greatest risk from the exposure. (Kotz, 2008, para. 2) Some companies that have focused on small batch production and emphasized organic production methods have been bought out by large corporations, such as Kellogg, Procter and Gamble, and Coca-Cola. The suggestion has been made that the size of these companies may prevent some of the close attention given to the more traditional methods that smaller companies were able to provide. The use of antibiotics, hormones, and other supplements in animal feed has raised fears about effects in humans who eat these animals. Thus Donald Kennedy, former FDA commissioner and president emeritus at Stanford University, said, “There’s no question that routinely administering non- therapeutic doses of antibiotics to food animals contributes to antibiotic resistance” (McVeigh, 2012, para. 4). • Similar concerns have been raised about genetically modified (GM) foods; some research has associated GM corn with hepatorenal toxicity that can damage the liver and kidneys (de Vendômois, Roullier, Cellier, & Séralini, 2009); in 2013, the voters of California voted down a proposition that would have required manufacturers to label all foods with GM ingredients. Advocates of the proposition noted that most of the funding
  • 46. dedicated to defeating this proposition came from out of state, largely from companies such as Monsanto, Cargill, and other corporations with a large stake in GM foods (No on 37, n.d.), outspending the opposition (those in favor of the proposition) five to one. • Bees are important for pollinating fruit and vegetable plants, but there has been much worry expressed about the use of herbicides, insecticides, and pesticides contributing to the decline of the bee population, and the collapse of some bee colonies (Tapparo, Marton, Giorio, Zanella, Solda et al., 2012). These and other examples are frequently highlighted by those who worry that humans are poisoning their own food supply. Industry responds, naturally, by pointing out that many of these risks are exaggerated or nonexistent. In addition, some genetic modification allows certain plants to grow in places where they otherwise could not, as well as extending the growing season and increasing protection from pests and disease. This response is summed up by those who insist that in the scientific community, genetically modified organisms raise very little alarm in the scientific community and that the science used to create them is basic enough to teach to high school students (Berezow, 2013). Yet again, we see a need to balance what industry—here, agriculture—needs against environmental concerns raised from various sources. Each side has its experts supporting it, and those of us who are not experts may have little or no ability to determine which is correct. Should we be suspicious of the claims made by companies that have a large financial stake in GM food that such food is harmless? Should we be suspicious of claims made by environmentalists who sometimes seem to desire that large-scale agribusiness be unsuccessful and insist that food be locally sourced and organic? What genuine threats to the food supply exist, and how might they be prevented? What is the legitimate role of regulation here—presumably we don’t want people becoming sick or dying from eating—and where does regulation become onerous and add unnecessarily to
  • 47. our food costs? As we continue to see, balancing economic issues with environmental issues brings with it political challenges, leading to this fundamental issue: Can one be an environmentally responsible producer (or consumer) without placing an undue burden on business? Corporate Responsibility To whom is a corporation responsible? Assuming a corporation is a for-profit enterprise, its fundamental goal is relatively clear: It needs to make a profit. Of course, most corporations recognize that this has to be seen in a larger context: Corporations have employees and stockholders, and are located within a community. The community itself may be taken to be the local community, the larger surrounding community, the state, the country, the continent, the hemisphere; for a large, multinational corporation, its community may be the planet. Environmental Decision Making One influential description of the responsibilities a corporation has was described succinctly by economist Milton Friedman: “There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it . . . engages in open and free competition, without deception or fraud” (1962, p. 133]). However, another competing model has gained a good bit of attention since Friedman’s description: stakeholder theory. The stakeholder theory takes a broader view, that corporations have a responsibility to shareholders, but also to “individuals and constituencies that contribute, either voluntarily or involuntarily, to [the corporation’s] wealth-creating capacity and activities, and who are therefore its potential beneficiaries and/or risk bearers “ (Post, Preston, & Sachs, 2002, p. 19). Different interpretations of the stakeholder theory identify distinct stakeholders (in addition to shareholders), but generally these would include, at least, customers, employees, suppliers, and members of the community. As we saw, however, the corporation itself may determine what that community is, and which of its members are sufficiently affected to qualify as
  • 48. stakeholders. Which of these models influences an analysis of a corporate decision can alter how one regards corporate responsibility. For instance, if I run a multinational paint company that generates a certain amount of hazardous waste, how should I calculate its disposal? Should I choose simply whatever is least expensive? Should I choose whatever is least expensive that also minimizes its hazardous effects? If I choose the least expensive disposal method, this may lead to higher levels of toxins being released in another country, but may lead to marginally higher profits and, consequently, a higher return to my stockholders. Usually, of course, such decisions are considerably more complex: Decisions presumably can’t simply ignore whatever laws and other restrictions that are in place wherever the hazardous waste is disposed; I may have important stockholders who regard environmental harm as worth the additional cost; I may have to factor into the business decision the cost of any potential fines (or even jail time) if I choose to ignore or try to skirt the applicable regulations. As may already be clear, many of these kinds of factors look different within the stakeholder model: Customers, distributors, employees, and community members may have a very different set of criteria than mere return on investment when they evaluate such a decision (see Figure 8.1). Furthermore, a corporation may regard its environmental policies as part of its image or “brand,” and may see making sound environmental practice part of its marketing strategy; a company that has a reputation for being a responsible environmental steward may, thereby, be more profitable in both the short and long run. Going Green on a Corporate Level Various companies have adopted policies to be environmentally responsible. For example, many hotel chains have developed plans to reduce their energy and water usage, reduce waste sent to landfills, and thus reduce their “carbon footprint.” Organic Methods and Products Considerable attention has been given in recent years to organic
  • 49. food as an alternative to traditional methods of food production. Whether or not organic food is better for human beings, or, for that matter, is better for the environment, is the source of some controversy. One 2012 study in the Annals of Internal Medicine concluded that “the published literature lacks strong evidence that organic foods are significantly more nutritious than conventional foods. Consumption of organic foods may reduce exposure to pesticide residues and antibiotic-resistant bacteria” (Smith- Spangler, Brandeau, Hunter, Bavinger, Pearson et al., 2012, para. 3). Others have noted that organic methods not only do not produce more nutritional food, but that conventional farming is more effective, producing more food per acre of land (Palmer, 2012). The tradeoff seems to be whether to use more land and organic methods, or less land and traditional methods. Those who advocate organic methods point not only to health benefits for human beings, but also to benefits from decreased use of pesticides and land improvement, and to the fact that ethical stewardship of the land requires a “gentler” approach than that used by traditional agriculture. The Organic Trade Association argues that organic methods have these important advantages: Organic farms respect our water resources: The elimination of polluting chemicals and nitrogen leaching, done in combination with soil building, protects and conserves water resources. Organic farmers build healthy soil: Soil is the foundation of the food chain. The primary focus of organic farming is to use practices that build healthy soils. Organic farmers work in harmony with nature: Organic agricultural respects the balance demanded of a healthy ecosystem: wildlife is encouraged by including forage crops in rotation and by retaining fence rows, wetlands, and other natural areas. Organic producers strive to preserve diversity: The loss of a large variety of species (biodiversity) is one of the most pressing environmental concerns. The good news is that many
  • 50. organic farmers and gardeners have been collecting and preserving seeds, and growing unusual varieties for decades. Organic farming helps keep rural communities healthy: USDA reported that in 1997, half of U.S. farm production came from only 2% of farms. Organic agriculture can be a lifeline for small farms because it offers an alternative market where sellers can command fair prices for crops. (2013, para. 4–6, 8–9) Clean Coal Meanwhile, many of those in the coal industry have adopted “clean coal technology,” with the coordinated goals of continuing to use coal to produce energy and to do so in a way that minimizes its environmental impact. Improving Water Quality Agribusiness has recognized the need for sustainable sources of freshwater as well as its responsibility to help meet that goal. Thus, companies have produced policy statements, plans of action, and timetables to monitor their progress. One example is the multinational agricultural producer, Cargill, which has committed itself to freshwater efficiency. Each of these programs has at least its share of critics; some argue that “clean coal” is a contradiction in terms; others that companies put out corporate statements of environmental responsibility that conflict with the actual behavior of the companies; while still others suggest that many corporate business models will never hesitate to sacrifice environmental benefits if they interfere with corporate profits. One standard criticism of clean coal, for example, is that the very idea rests upon some rather problematic claims. Coal releases large amounts of CO2; to prevent that CO2 from being released into the atmosphere (which is what makes it “clean”), a method known as carbon capture and sequestration is required. But that method itself requires a good deal of energy; as James B. Meigs points out, “[A] coal-fired power plant would have to burn roughly 25 percent more coal to handle carbon sequestration while producing the same amount of electricity” (2011, para. 6). Still more difficult is the actual
  • 51. sequestration. Finally, it is not clear, at this point, whether such a method would be successful in preventing the compressed CO2 from leaking, and for how long. In short, its critics claim that the problem with “clean coal” is that there may not be such a thing (Meigs, 2011). Ethical Views The moral questions raised by many businesses are not necessarily different for different ethical theories, and they may not necessarily be analyzed differently by those theories. As is often the case, questions of corporate responsibility must be considered within the context of the actual issue involved, the business model used, the corporate mission statement, the theory—e.g., shareholder or stakeholder—utilized, the ethical evaluations being made, and how the various factors within those ethical evaluations are weighed. One utilitarian may look at a coal company deciding not to add expensive but optional “scrubbers” to minimize its mercury output; the greatest good for the greatest number in this case might be determined, in this specific analysis, to be based solely on return to investors of the highest possible profits. No law is being broken, and the company is fully complying with all relevant regulations. In contrast, another utilitarian might well argue that such scrubbers are worth the added cost, evaluating the benefits to the community not just in terms of profit, but also in terms of the risks of increased mercury contamination to current and future customers, the company’s commitment to sustainability, and its reputation for being a responsible member of the community. Here we have two utilitarians with contrasting conceptions of what the correct decision is to do in one specific case. Presumably, one could make a similarly contrasting argument from the perspective of two deontologists who disagree with distinct assumptions about the values that should be emphasized in such a decision. 8.3 The Issue: Personal Responsibility In addition to corporate responsibility, all of us, as individuals, have a relationship to our environment. What does it mean to
  • 52. take personal responsibility to maintain and protect our environment, not just for our own health and safety, but for those generations to follow? Do we have any obligations to protect the environment, or should we regard it simply as a source of resources to be exploited and utilized? If we do have such obligations, what are they? Do they require us to change our lifestyles in a radical way, or are there more moderate steps we can take to reduce waste; negative effects on the air, soil, and water; and carbon footprints? Some environmentalists argue that only radical steps can be justified at this stage, given the damage that has already been done and that continues; this is particularly a common feature of discussions on anthropogenic climate change. But others argue that we can make relatively modest changes and have a cumulative effect that will minimize our environmental impact and, in many cases, improve our surroundings. Environmentally Responsible Households One simple step to take is disposing of household waste in the appropriate way. Many of us have various kinds of waste: leftover food, packaging, bottles, cans, and various kinds of clutter that we accumulate and, at some point, want to discard. There are other more hazardous kinds of waste, such as motor oil, antifreeze, or leftover bug spray, as well as those we saw under the title of “universal wastes”: solvents, cleaners, electronic items, batteries, even thermometers. We might object were we to see our next door neighbor pouring used motor oil down a storm sewer, but there is little difference between this and tossing batteries or cell phones into the trash, where they will end up in a landfill. The EPA notes that improper disposal of household waste can pose serious threats to both human health and the environment; it directs consumers to community resources aimed at disposing of hazardous items responsibly. Going Green on an Individual Level Various companies have recognized that there is significant demand for products that are less stressful on the environment,
  • 53. and that are regarded as safer for humans, including children, as well as pets and other animals. Some of the products are designed to save energy, water, or both. These include solar panels, reusable water bottles, energy-saving light bulbs, low- flow showerheads, and rechargeable batteries. Meanwhile, ecologists recommend homeowners rely on natural substances—as opposed to manufactured chemicals that may pose health risks—for killing pests and weeds. For example, use vinegar instead of glyphosate: One very commonly used weed killer is made with glyphosate, which some studies have connected with potential health risks in humans and other animals. Using vinegar and water as a substitute has often been recommended by home gardeners seeking an alternative to glyphosate. Many gardeners have found composting to be a productive way to use organic household waste (such things as coffee grounds, eggshells, bush and tree trimmings, etc.). Composting takes these wastes and uses them to develop a nutrient-rich fertilizer for the soil. Composting thus decreases the amount of waste that is thrown away, and benefits the soil by adding nutrients. Composting’s numerous benefits are listed on the EPA’s website (see the Suggested Resources at the end of this chapter.). Are Green Products Affordable? Environmentalists often stress the importance of changing one’s lifestyle to be more “eco-friendly,” but most also insist that such changes do not require much if any sacrifice on the part of the individual. Rather, it is just getting into the habit of choosing those products that have a relatively lower environmental impact, as well as doing other things that are easy to do but have a cumulative effect (reusing a cloth bag when grocery shopping) and not doing things that have a negative impact (improperly disposing of hazardous waste). Yet it has been argued that some of the steps recommended in order to decrease our negative impact on the environment, involve expenses, and that many of us who would prefer to be more
  • 54. environmentally responsible are not really in a financial position to do so. While it might be obvious that to retrofit a house with solar panels is a very expensive undertaking, it is also the case that organic food is generally more expensive than food grown in the more traditional fashion. A Denver Post editorial notes that the use of wind and solar power will be substantially more expensive than fossil fuels (Yeatman & Cooke, 2010). While this is a complaint about the differential energy costs between these various options, most of us also know on a more individual basis about costs that are involved in “being green.” Sometimes these are financial costs, but there are also costs associated with time, convenience, and missing out on something: what economists call “opportunity costs.” It may be more environmentally friendly (and better for me) to walk to work, but what if I work 30 miles from where I live? Perhaps I could bike, but that means I must risk riding a bike in traffic, as well as showing up to work in less than pristine condition (in other words, sweaty). Perhaps I could take public transit, but in my community it is very inefficient, and to get to work requires an hour and a half in transportation time that I could spend doing something else. If the environment is my sole consideration, then walking, biking, or public transportation may be the correct choice; but most of us make these choices in the context of busy schedules, other responsibilities, and other activities that we either need to take part in, or at least would like to. Even cleaning products that are “green” tend to be more expensive—in some cases, quite a bit more expensive—than the standard ones we might recognize, and some have argued that the organic products are not as effective (a claim strongly rejected by those who make organic cleaners and other household products). The question then becomes one that we saw earlier in other contexts: Do I want my house to appear slightly less clean, for more money, or appear cleaner, for less money? Even if the organic products are as effective as others,
  • 55. they are more expensive: Perhaps the question is not so much whether I think it is worth the extra money to do what I can to protect the environment, it is whether I can afford to buy the organic products. Many people feel as if there really is little or no choice in the matter. After all, if one doesn’t have the funds to make a positive environmental impact, it may not matter what one desires to do. Those who advocate using organic cleaners, eating organic food, and taking other steps generally recognize that, currently, there are additional costs to doing so. At the same time, they have two responses: The more people begin to realize the benefits of being “green” (or at least “greener”), the more the laws of supply and demand will take effect. More companies will recognize the profits available in offering environmentally friendly products; competition will bring prices down; and the free market will respond, as it is designed to do, to meet customer demand with efficient, safe, and affordable green alternatives. In short, when these choices become increasingly popular, economies of scale will function to make them affordable for many more people. There are costs to using the older, less eco-friendly products, in terms of health care costs, loss of productivity due to job absences, diminished quality of life, and other costs that may be “hidden,” but are no less genuine. When these costs are factored in, green products may be considerably closer in price to the alternative, and these costs also provide some motivation for both government money, and private equity firms, to subsidize and investment in sustainable products and technologies. Medication Disposal Many of us have specific forms of hazardous waste in our homes, which must be disposed of an appropriate way. However, one particular form of hazardous waste has not been mentioned; although very common, it can be overlooked in such discussions, and should not be. This is the disposal of medical waste: drugs, such as antibiotics, as well as syringes (and other “sharps” such as scalpels or lancets), disposable gloves,
  • 56. incontinence products, blood-soaked bandages, etc. Such waste is produced in hospitals, labs, clinics, nursing homes, medical offices, and even schools and tattoo parlors, but it is not unusual for some of these things to be in individual homes: Regardless of their source, however, they need to be disposed of properly. Obviously enough, some medical waste poses a significant health threat: A contaminated needle can be a biohazard, and can lead to infectious diseases; a number of different kinds of medical waste can carry with them some sort of health risk if not disposed of properly. Additionally, but importantly, is the question of unused medications. These pose various risks: Children may accidentally swallow them, and prescription drug abusers may be tempted to steal them. A more significant threat may come from a standard way many people used to dispose of unwanted medicine—by flushing it down the toilet. This sends the various pharmaceuticals into the waterways, introducing their active agents into that water, which can be absorbed by fish and can even find their way into drinking water. Observers point out that scientists have detected medicines in both surface and groundwater, not to mention the soil. Even low levels of medicine in an ecological system pose health risks to land and marine life (Take Back Your Meds, 2010). In contrast, the U.S. Food and Drug Administration has prepared a list of medicines it regards as safe for disposal by flushing (n.d.); presumably, this means that medicines not on this list may not be safe to flush. The EPA has an extensive discussion of the issues involved on its website: http://water.epa.gov/scitech/swguidance/ppcp/index.cfm. In any case, as is clear, this method of disposal is the source of some controversy. In any case, it is important to be aware of the issue, and to become better informed about the risks involved with improper disposal of all medical waste, including both over-the-counter and prescription pharmaceuticals. 8.4 Applying the Theories We began our look at environmental ethics by considering what
  • 57. happened in Hinkley, California. Was Pacific Gas and Electric guilty of polluting the groundwater, and thus responsible for some of the illnesses and even deaths that occurred there? Was this charge unfair, and were the claims that PG&E caused these results overblown and exaggerated? Or is there a third possibility to consider, that all economic activity—including that of PG&E—carries with it certain risks, but those risks are manageable and are the kind of thing a society has to accept in order to flourish economically? These questions, to a large extent, are raised in terms of economics, cost–benefit analysis, profit and loss, health care costs, etc. But there are also ethical considerations here as well. If we have an accurate account of what PG&E did—or didn’t do—then we can examine whether it did the right thing: not the right thing necessarily in terms of economic gain (or in terms of instrumental value) but in terms of moral values. Is the company’s behavior justified on moral grounds, or does it deserve to be criticized on those same grounds? Here we will look at a utilitarian defense of PG&E’s corporate behavior, and then contrast it with an objection to that behavior in terms of deontology. Then we will turn to relativism, to see how that perspective might look at this specific situation. Utilitarian The case concerning PG&E contains important factual questions that are difficult to answer with certainty. Nonetheless, PG&E settled for $333 million in 1996, another $295 million in 2006, and a final payment of $20 million in 2008. These are significant damages, but in the long run they become part of the cost of doing business, and many of the costs are, undoubtedly, passed on to PG&E’s customers. A utilitarian examining this case has to determine what the costs and the benefits are in this particular situation. On the one hand, there are the disputed health effects of PG&E’s operation in Hinkley, the costs of the cleanup, as well as the costs of litigation and the damages paid to those in the lawsuit. Without dismissing the potential and genuine damages that may have
  • 58. been involved, a broader perspective also needs to be brought to bear in this case. The operation that caused the groundwater contamination was natural gas decompression; Hinkley had one of the many stations that are required to decompress natural gas between its original sources and its final delivery stage. To minimize rust in the cooling towers, chromium 6 was used, and the discharged water was kept in unlined pools; this had been done since 1952. When we look at the broader picture, however, we see several compelling facts: PG&E is a major source of energy in California, upon which people rely. Without a consistent, affordable power source, households would be prevented from doing a great number of things, from laundry to watching TV to running air conditioning and heating. Furthermore, without this reliable source of natural gas to the many industries in California that use it, the California economy would grind to a halt; people would be thrown out of work, agriculture and industry would be irreparably harmed, taxes would be raised to pay for unemployment and other costs associated with a sharp increase in unemployment. Additionally, all the salaries and benefits have a multiplier effect: Those who lose their jobs working for PG&E no longer have money for babysitters, going out to eat, and other items on which they traditionally spend their disposable income. In turn, all those who rely on that money are harmed. In short, even if the worse case scenario is painted of PG&E’s activity in Hinkley, the alternative is almost incalculably worse and affects far larger numbers of people. It is virtually impossible to make a utility calculation under which more people—again, on the worst case scenario— would be better off were PG&E prevented from the exploration, development, and delivery of natural gas. All such activity has risks, but the benefits so vastly outweigh the risks than on any utilitarian evaluation, PG&E did the right thing. This conclusion hardly supports the idea that corporations can do what they wish without any consideration of effects on people and on the environment. Obviously enough, once the risk of chromium 6 had been established, PG&E had an obligation to
  • 59. respond and to minimize that risk. That is not only the ethical result that would be suggested by the utilitarian; it is also sound business practice. But on a utilitarian view, assuming that no energy production is 100% risk free—a very safe assumption— one must balance those risks and address them as effectively as possible, but recognize that those risks do not outweigh the rewards of a generally safe, affordable, and necessary source of energy. At the same time, it should be noted that different utilitarians will evaluate the specific benefits—and therefore the overall benefits—of an activity differently, just as they may evaluate the costs differently. How much does one value preventing a child from developing asthma, or a potentially fatal disease? How does one weigh the value of a low unemployment rate in a town, with all the direct and indirect benefits it provides? As we’ve seen, clean air and clean water may have some specifiable value; at what point does the value of making air cleaner not justify the expense required to do so, or the sacrifice of economic development it might require? As should be clear, adopting a utilitarian perspective on environmental issues does not eliminate the complex arguments that can occur within utilitarianism. Deontological Deontologists, specifically those influenced by Kant, take as fundamental to their ethical theory two basic points: We must never treat another human being as a mere means to an end (human beings, that is, cannot be treated as having solely instrumental value), and we must act in such a way that our decisions could be universalized—that our decision, in the given context, would be what everyone should do in that same situation. PG&E’s actions violated both of these requirements, and thus were immoral. PG&E used a dangerous chemical, chromium 6, long after it was recognized to pose serious health risks to human beings and other animals. As a profit-oriented organization, it is understandable that PG&E wished to keep its costs down; however, using unlined pools to store water that had been
  • 60. contaminated with chromium 6 was a decision that treated the people of Hinkley as means to the end of PG&E. Rather than treating those people with the dignity and respect required, which they deserve simply in virtue of being human beings, PG&E dealt with them as one of several obstacles to overcome in order to achieve its end, namely the highest profits possible. To sacrifice people for profits in such a way is to violate the first principle of deontological ethics, and to deny them their inherent, intrinsic value; doing so is, of course, unethical. PG&E had a moral obligation to take into consideration the human beings and the potential hazards they were being exposed to; to ignore those factors, simply to achieve its goal, is immoral. Unless the lawyers prosecuting the case against PG&E were trained as Kantian deontologists, it was probably not asked in court whether they regarded their actions as universalizable, or following the Kantian categorical imperative that one act only in accordance with that maxim through which you can at the same time will that it become a universal law. While a lawyer might have asked PG&E what the results might have been had all energy companies had such a cavalier attitude toward exposing human beings to such risks, it seems more plausible that PG&E would have been asked this: Would you think you were being treated ethically if you lived in Hinkley? Or perhaps the company was asked if it would object if such procedures, such as storing water contaminated with chromium 6, were kept in unlined pools in the neighborhood where PG&E’s directors, legal team, and all their children lived. In this way, we can bring out the universality test by appealing to the Golden Rule: If you would object to being exposed to chromium 6, then obviously it would be wrong to expose others. Because PG&E’s behavior treated others solely as means to an end, and could not defend that behavior as being in conformity with a law that could be made universal, it was fundamentally immoral. Such violations of human dignity cannot be defended on the basis of profits or other consequences; the act itself is in
  • 61. violation of these fundamental principles and must be found to be unethical. Relativism The relativist has various options here in considering PG&E’s behavior. Perhaps the community of Hinkley thought the risk was worth it, particularly if they got jobs and relatively inexpensive energy out of it. Perhaps the community of Hinkley thought the risk was not worth it, and decided to ban all operations of PG&E from Hinkley. Perhaps the community of Hinkley wished to make a trade with PG&E: For free natural gas for the next 50 years, PG&E could flood the town with water contaminated with chromium 6. While the last option seems implausible, it is difficult to see what result the relativist could not, in theory, support; it is a function of what the community regards as what is best for the community. One might suggest that appealing to relativism here in drafting actual legislation and policy would be a logistical nightmare. How is it decided what, precisely, the community supports? Is it done on the basis of majority rule? Why would majority rule necessarily be favored by this community? After all, relativism doesn’t have some in-principle commitment to democracy or majoritarianism, does it? Furthermore, if majority rule is used to determine what the community wishes to do, this brings with it the various objections to such a procedure that have been prominent since at least Socrates: One thing most of those in the minority are quite familiar with are their views being ignored, or worse, by those in the majority. As Socrates (and Plato) also observed, experts in a community are rarely the majority of that community; thus, if we want experts (for instance, on the hazards of chromium 6) to make these decisions, then that is the rule of the few: an aristocracy or an oligarchy. But in defense of relativism in this context, it is more likely a question of the general sense of the community’s priorities, rather than a question of how policy is formulated or legislation enacted. Some communities may wish to make the tradeoff: cheaper energy and a higher risk (within reason) of some
  • 62. cancers; if the risk is seen to be relatively low, and the payoff relatively high, some communities may think this well worth it. At the same time, other communities may look at the same calculations and data and decide it is not worth the risk; they may choose to decrease the potential health risks and pay higher energy costs. Each community chooses what is best for that community, and neither is necessarily wrong. The one issue that does arise here, however, is the traditional question of NIMBY: “Not in My Back Yard.” If a community claims that PG&E must be able to maintain its cooling towers, but doesn’t want those towers in its own town—it wants them in someone else’s backyard—that can generate problems, particularly since the cooling towers have to go in someone’s backyard. This is a common feature of those necessary consequences of activities that bring with them unavoidable risks, such as toxic dumps and hazardous waste incinerators. People need them and want the benefits, but they want someone else to assume the risks. Here again we run into the problem of externalities, and the degree to which these conflicts have been solved in ways that could generally be regarded—on any ethical theory—as fair. Conclusions Environmental hazards are unavoidable: Whether obtaining natural gas by hydraulic fracturing (“fracking”), mining and burning coal for electricity, or developing sophisticated antibiotics, many technological developments bring with them risks. Evaluating the benefits and risks is an essential component of making sound environmental and economic decisions, and it is important—although often very difficult—to balance in an appropriate way the demands made on the environment by development and progress with the desire to preserve and protect the beauty and value of nature. How we view the value of nature—as having only instrumental value, or also as having intrinsic value—will do a great deal to determine how we evaluate the issues involved and what balance is to be struck. Assuming, as it is safe to do, that progress and development will continue, those concerned about also
  • 63. maintaining their commitment to the stewardship of nature will also continue to confront vexing and difficult challenges. We have seen a number of the different stresses human beings put on the environment, in terms of the need for resources, be it coal, petroleum, water, food, or even medicine and health care. As we head further into the 21st century, several factors seem especially crucial: The economic development and increased energy use of countries that in the past made fewer demands on the system: specifically the two largest countries in the world, India and the People’s Republic of China. Adding that increased demand to a system that, in many cases, already seems taxed will raise many challenging economic, ethical, and environmental issues; one advantage is that the leadership of these countries seems well aware of these challenges. The continuing threat posed by anthropogenic climate change. While there are those who regard it as a natural result of climate patterns, or even a hoax, the most recent data indicate that 97% of those who work in the relevant fields regard climate change as real and as likely the result of human activity (NASA, n.d.). Various consequences may follow from increases in temperature, including increased energy in storms (hurricanes, cyclones), much higher sea levels that can inundate low-lying areas (Manhattan, Bangladesh, Indonesia), and various threats to animal populations and to the food supply. If climate change is a genuine threat, then most of the other environmental concerns pale in comparison. An environment’s ability to process, absorb, and otherwise deal with such hazards to that environment (pollution, waste) is called its “sink function.” Some have suggested that human activity, if unchecked, risks causing the Earth’s sink function, or ability to deal with such stresses on the system, to shut down. Some environmental economists have argued that this aspect of the Earth’s ecology does not receive sufficient attention, risking long-term damage to the planet. Chapter Summary
  • 64. In this chapter, we have looked at some important environmental concerns, although many more important concerns could not be examined. As we saw, both corporations and individuals have a role to play in protecting the environment, particularly if both developed and developing economies wish to grow and flourish. Over the last several decades, society’s awareness of the various threats to the environment has increased considerably, with a resulting increased focus on the need to “go green” (or at least greener). While these challenges will persist, and in some contexts possibly become worse, with this increased awareness also comes a new desire to develop more sustainable products and a more sustainable approach to development, including minimizing the human carbon footprint to the greatest extent possible. Suggested Resources Corporate Statements on Responsible Environmental Practices American Coalition for Clean Coal Electricity: http://www.cleancoalusa.org/clean-coal-technology Cargill Statement on freshwater efficiency: http://www.cargill.com/corporate-responsibility/environmental- sustainability/ environmental-goals-actions/freshwater- efficiency/index.jsp Exxon’s environmental statement: http://www.exxonmobil.com/Corporate/safety_env.aspx Hilton’s environmental statement: http://www.hiltonworldwide.com/corporate- responsibility/sustainably/ Hyatt’s environmental statement: http://thrive.hyatt.com/environmentalSustainability.html Marriott’s environmental statement: http://www.marriott.com/corporate-social- responsibility/corporate-environmental -responsibility.mi Walmart’s statement on sustainability: http://corporate.walmart.com/global-responsibility/environment- sustainability
  • 65. Safe Disposal of Medical Waste FDA links to each state’s laws and other relevant information: http://www.epa.gov/osw/nonhaz/industrial/medical/programs.ht m California database where one can search by county and by waste type (e.g., sharps, pharmaceuticals) for disposal facilities: http://www.calrecycle.ca.gov/homehazwaste/healthcare/collecti on/ Example of a pharmaceutical buy-back program: http://newjerseyhills.com/madison_eagle/news/pharmacy- collects-unused-drugs-that -pose-risk-of-abuse- pollution/article_94f71f98-9a02-11e1-925f-0019bb2963f4.html Critics of Corporate Environmental Programs http://www.hcn.org/articles/clean-coal-is-an- oxymoron/print_view http://www.monsantowatch.org/ http://247wallst.com EPA Suggestions for household waste disposal: http://www.epa.gov/osw/conserve/materials/hhw.htm Benefits of composting, according to the EPA: http://www.epa.gov/composting/basic.htm Pesticide alternatives: http://www.sciencedaily.com/releases/2009/08/090816170910.ht m Universal Waste http://www.dtsc.ca.gov/hazardouswaste/universalwaste/ Organic Food http://www.mayoclinic.com/health/organic-food/NU00255 Clean Coal http://www.cleancoalusa.org/clean-coal-technology Article Kokmen, L. (2008, March-April). Environmental justice for all.