Feb 27 ENV222 lecture outline.pdf

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School of Environment
Stephen Scharper

14) Feb . 27 Current actions: Business, brown Eisner, MarkAllen (2007). "Chapter 8. From Greed to Green: Corporate Environmentalism and Management." In Governing the Environment: The Transformation of Environmental Regulation. Boulder, Col.: Lynne Rienner Publishing. pp. 133 - 151. ! ! Lecture outline ! 1. Business and environment: the basic dynamic .science + values = social movement, ENGO: influences government: influences business ! . subject of Eisner reading and this lecture is business acting to protect environment without that pressure from government; March 6 lecture will discuss government regulation of business, and political action by business to influence government policy ! 2. Defining business . capital . industrial sectors – firms in competition with one another . individuals within the firm – eg, the CEO . the production chain; firms buying and selling from one another . basic distinction: . large, visible, transnational firms . small, less visible, domestic ! The basic organization is the business corporation, referred to as the “firm.”
 ! 3. Nature of the firm . ephemeral, a tool used by capital, created and dissolved at will . but also an organization, with its own culture and visibility, a “brand” . a legal entity with rights akin to human rights (eg due process in courts) . power in society coming from economic role, creating wealth/employment . that social power provides the basis for political power ! Firm and environment: . production process - waste and pollution . environmental impacts of product sold - reader "design for environment" pp 298-299 ! 4. Firm objective . profit maximization: tends to lead to environmental damage . increased efficiency to increase profit: works in favour of environmental protection . but also legitimacy, value of its brand; “social license to operate” Legitimacy is essential, both for market power and political power. Current example is Enbridge attempting to get approval for Keystone pipeline; legitimacy was damaged by pipeline break, oil !1 spill in Kalamazoo River, Michigan, 2010. The legitimacy objective also works in favour of environmental protection. ! ! 5. History of business and environmental management 1960s-70s; focus on large visible, and worst polluters; eg pulp and paper, Inco and acid rain 1980s - 1990s: expansion to focus on others; financial sector; tourism/hospitality; agriculture 1990s - present; shift in focus to climate; oil, pipelines; plus, emergence of green business, such as renewable energy, those making money by selling environmentally friendly products (March 4 lecture) ! . now all business firms (like all organizations) are subject to both social pressure, internal values of employees and environmental regulation; result they pay considerable attention to their environmental management ! 6. Factors leading firms to improve their environmental management (from Eisner – not including regulatory requirements imposed by governments
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