Deck 9: Environmental Sustainability and Its Challenges to Management

Question 1

What is your view of how things stand with the environment? How big an issue is this for us, how much (if any) is business responsible for it? How much change (if any) is needed to get us on the right track?

Answer 1

This question is highly subjective, but it seems clearer now than ever that global warming is real and jeopardizes many coastal communities. Our nation's food supply is highly suspect, with one report after another of dangerous pathogens and inhumane, filthy suppliers. The seas are littered with trash, and sea life populations have decreased. The environment appears to be in very poor shape indeed.
Since ecological breakdowns threaten our very way of life, not to mention stable business communities, they represent a major concern. After a series of oil spills, it becomes clear that some industries are having a negative impact on the environment, so those businesses at least have a responsibility to improve their ecological footprint. In fact, all industries should examine their business practices to see whether improvements can be made. Our reaction to this situation should reflect a healthy respect for life, community, and nature.
It's impossible to say yet exactly how much change is required, as the severity and causes of the problem are still being investigated. The amount of change required may turn out to be sweeping.

Question 2

What are the four mind-sets about the environment? Why are they important for our thinking?

Answer 2

The doomsayer mind-set says industry itself threatens numerous species, including humanity, so it must be drastically reduced and our view of success decoupled from profit. The cornucopian mind-set takes the opposite view: that industry and technology will generate solutions to every problem they've created, and life on earth will quickly rebound. The haves versus have-nots mind-set contends that developed nations should relinquish domination of the world and create an egalitarian standard worldwide. The aesthetic mind-set claims the real problem is poverty, and that worldwide development will make inroads on that problem, thus improving the environment.
All four mind-sets should be considered when making managerial decisions, as each provides valuable perspective that helps in weighing the importance of environmental caution against the benefits of free enterprise economics. Practically speaking, no one mind-set is likely to convince every stakeholder, so a reasonable balance must be reached between the four philosophies.

Question 3

What is Pascal's Wager? How does it influence how you look at the uncertainty surrounding the environment?

Answer 3

Pascal's wager, devised by French philosopher Blaise Pascal, concludes it's safer to believe in God than not, because the potential benefits of faith and punishment inflicted on disbelief outweigh the benefits of atheism and cost of inaccurate theism.
Since the overall dimensions of the ecological crisis are still a matter of debate, the reasoning behind Pascal's wager could be applied to our uncertainty about the impact of industry on the planet. If the doomsayers are right, the potential impact of continuing on our present course will be sheer devastation. We'd be gambling with our descendants' lives, and for no better reason than laziness and short-term monetary gain. This must, however, be weighed against the very real possibility that considerable money would be spent to improve the environment, only to have a negligible impact or address a problem that doesn't exist, or that isn't directly related to industry. A pragmatic approach suggests finding a balance between the courses of action and inaction, leaning toward the former.

Question 4

What are the four Shades of Green? Where do most businesses operate?

Question 5

What do we need to do to help businesses do a better job regarding the environment?

Question 6

What is the end goal here? How does this discussion relate back to the goal of putting ethics and business together?