CHAPTER 11

SustainabilityIssues

Sustainability
Sustainabilityisthepotentialforlongtermwell
beingofthenaturalenvironment,includingall
biologicalentities,aswellastheinteractionamong
natureandindividuals,organizations,andbusiness
strategies.
Sustainabilityincludestheassessmentand
improvementofbusinessstrategies,economic
sectors,workpractices,technologies,andlifestyles
whilemaintainingthenaturalenvironment.

Global Environmental Issues

Naturalenvironment
Thephysicalworld,includingallbiological
entitiesaswellastheinteractionamongnature,
individuals,andorganizations
Protectionofair,land,biodiversity,water,and
renewablenaturalresources
Increasingly,companiesareincorporating
environmentalissuesintotheiroverallbusiness
strategies.

Atmospheric Issues
Airpollutionarisesfromthreedifferentsources:
Stationarysources(factoriesandpowerplants)
Mobilesources(carsandtrucks)
Naturaloccurrences(windblowndust)
Acidrainoccurswhennitrousoxidesandsulfurdioxidesemittedfrom
manufacturingfacilitiesreactwithairandrain.
Globalwarmingoccurswhencarbondioxideandothergasescollect
intheearthsatmosphere,trappingthesunsheatlikeagreenhouse
andpreventingtheearthfromcooling.
CapandTradeprogramsetscarbonemissionslimits(caps)for
businesses,countries,orindividuals.

World Energy-Related Carbon Dioxide

Emissions

U.S. Global Climate Change Initiative

Water Issues
Waterpollution
Resultswhendangerouschemicalsseepintorivers
andoceans
Sourcesinclude:

Disposalofrawsewageandtoxicchemicals
Oilandgasspills
Burialofindustrialwastes
Fertilizersandpesticidesusedinfarming

Water Issues (cont.)

Waterquantity
Waterusageisincreasing.
Increasedusechangesenvironmentalconditions.
Theglobalwatersupplyisbeingdepleted;andby
2030,almosthalfoftheworldspopulationwill
liveinareaswithmajorwaterstress.

Land Issues
Landpollution
Dumpingofresidentialandindustrialwaste,stripmining,andpoor
forestconservation

Wastemanagement
Disposingofwasteinanenvironmentallyresponsiblemanner

Deforestation
Destructionofnaturalhabitats,suchastherainforest

Urbansprawl
Citiesandsurroundingareasbecometoocongested,chaotic,and
dispersed

Deforestation of the United States

Biodiversity
Deforestation,pollution,development,and
urbansprawlhaveputincreasingpressureon
wildlife,plants,andtheirhabitats.
Manyecologistsbelievethatthelossof
speciesthreatensthesuccessofentire
ecosystems.

Genetically Modified Foods

Geneticengineeringinvolvestransferring
oneormoregenesfromoneorganismto
anothertocreateanewlifeformthathas
uniquetraits.
Oftenresultsininsectandvirusimmunity

Genetically Modified Foods (cont.)

Thelongtermhealthimpactofgenetically
modifiedproductsisnotknown.
Health,safety,andenvironmentalconcerns
havepromptedconsumersaroundtheworld
(especiallyJapanandEurope)toboycott
geneticallymodifiedproducts.

Environmental Protection Agency

(EPA)
Themostinfluentialregulatoryagencythatdealswith
environmentalissuesandenforcesenvironmentallegislation
ProtectsAmericansfromsignificanthealthrisksintheirwork
environment
Managesenvironmentalrisks
IsanintegralpartofU.S.policy
Contributestodiverse,sustainable,andeconomicallyproductive
communitiesandecosystems
Enforceslawsandprovidesinformation

Playsaleadershiproleindealingwithothercountries
environmentalpolicies

Goals of the EPA

Environmental Legislation
CleanAirAct
FederalInsecticide,Fungicide,and
RodenticideAct
EndangeredSpeciesAct
ToxicSubstancesControlAct
AmericanCleanEnergyAct

Environmental Legislation
EmergencyPlanningandCommunity
RighttoKnowAct
ToxicReleaseInventory

PollutionPreventionAct
FoodQualityProtectionAct

Alternative Energy
Alternativeenergysourcesreduceglobalcarbon
emissionsandourdependenceontraditionalenergy
sources.
Thesesourcesinclude
Windpower
Geothermalpower
Solarpower
Nuclearpower
Biofuels
Hydropower

Business Response to
Environmental Issues
Greenmarketingisspecificdevelopment,pricing,
promotion,anddistributionofproductsthatproduce
lessharmtotheenvironment.
Manyproductsarecertifiedasgreenbyenvironmental
organizations.
Consumersareincreasinglybeingconfusedbygreen
marketingclaims.
Companiesshouldstrivetominimizewaste,andshould
rethinkwhatconstitutesaproduct.
Productpricingshouldreflecttruecosts.

Positive Links Between Environmental

and Economic Performance

Recycling Initiatives
Reprocessingofmaterialsforreuse
Steel
Aluminum
Paper
Glass
Rubberandsomeplastics

Over50%ofproductssoldinstoresare
packagedinrecyclablepaperboard

Green Marketing
Strategicprocessinvolvesstakeholderassessmentto
createmeaningfullongtermrelationshipswith
customers,whilemaintaining,supporting,and
enhancingthenaturalenvironment.
Productsmaybecertifiedasgreenandcarrya
speciallogoidentifyingthemassuch.
Greenwashinginvolvesfalseorexaggeratedclaims
thataproductisenvironmentallyfriendly.

Other Environmental Initiatives

Emissionsreduction
Reducesthethreatofglobalwarming

Sociallyresponsiblebuying
Attemptstotakeintoaccountthepublic
consequencesoforganizationalbuying

Strategic Approaches to
Environmental Issues

Stakeholder Assessment
Aprocessrequiringacknowledgingand
activelymonitoringtheenvironmental
concernsofalllegitimatestakeholders
Identifyingandprioritizingstakeholderclaims
Conductingresearch,assessingrisks,and
communicatingwithstakeholdersabouttheir
respectiveconcerns
Requiresacceptingthefactthatnotall
stakeholdershaveequalinterests

Risk Analysis
Ananalysisperformedbyacompanyto
identifyenvironmentalissuesthatrelateto
manufacturing,marketing,consumption,and
usagepatternsassociatedwithitsproducts
Industryandgovernmentresearchsupport
identificationofriskareas
Enablesanorganizationtomeasurethecost/benefit
relationshipofenvironmentaldecisions

The Strategic Environmental Audit

Organizationsconductanindependentauditand
reporttheresultstoallinterestedstakeholders.
OrganizationsdevelopedISO14000asa
comprehensivesetofenvironmentalstandardsthat
encourageacleaner,safer,healthierworld.
ISO14000promotesacommonapproachtoenvironmental
managementandhelpscompaniesattainandmeasure
improvementsinenvironmentalperformance.

Strategic Sustainability Audit