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INTRODUCTIONNatural environment is the container of cities and corporations
Nature can be brutal to human communities (e.g: earthquake, mudslide, hurricane)
Need to design conversation – link between civil society and nature
Nature is important – aside of growth in modern medicine, urban development, information technology
INTRODUCTION3 different conversation – about natural environment as the context for corporate integrity and corporate conduct:
United Nation conversation about sustainability
Bretton Woods conversation about trade and finance
Ecology conversation about the integrity of nature
Unites State conversation on environmental protection
Natural environment – move from irritation of business to strategic part of their planning
Example of smokestack (page 171): 1950 – institutionalized environmental (view favorably, representing job, economic progress, etc)
1960 – industrial environmentalism (less desirable, ugly, smelly, nuisance)
1970 – regulatory environmentalism (need of government control)
1980 – social responsibility ( source of pollution, hazardous to health)
1990 – strategic environmentalism (symbolized wasted resources)
INTRODUCTIONEnvironmental concern have become part of everyday business practices
McDonald and environmental action:o1980: environmental group built international campaign against McD extensive use of polystrene foam packaging material
oProduction process of polystrene = fifth largest amount of toxic waste
oRelease cancer causing chemical when burned
INTRODUCTIONo 1987 – Mcd announced they would end the used of CFCs in their Styrofoam food packaging
o Praised by Environmental Defense Fund, Natural Resources Defense Council, Friend of the Earth
o 1990 – McD join partnership with EDF to phase out the use of Styroform
o 2000 - McD successfully eliminate 150,000 tons of packaging, purchased $3 billion product made from recycle material, recycle more than one million tons of corrugated cardboard and decrease the waste by 30 %
INTRODUCTIONConfirm the basic assumption: corporation can change their environmental practice if the conversation in which their participate change
However, it raised issue: the environmental concern should be tended between the corporations and nonprofit without enough involvement of government agency
In global conversation – balance between these three agencies become more crucial and troublesome
United Nations conversation on Sustainability
• Beginning – worries about the weather• Studying climate pattern and weather
forecast• Weather information around the world is
collected and standardize – notice changes in global climate
• Modern information technology – track the human impact on natural environment
United Nations conversation on Sustainability1968 – UN General assembly authorized first Human Environment Conference (1972) in Stockholm, Sweden
Dilemma : Rich northern nation’s interest in environmental protection, Poor southern nation’s interest in economic growth
Any Global agreement needed to include both social and environmental concerns
United Nations conversation on Sustainability
Sustainability – meeting current need should not deny the future generation the capacity to meet their needs
United Nation Environment Program (UNEP) establish to continue conversation on sustainability
The limit of growth (1972) by Club of Rome add more systemic analysis of the global context to the conversation on sustainability
5 factor - accelerating industrialization, rapid population growth, widespread malnutrition, depletion of nonrenewable resources and deteriorating environment
United Nations conversation on SustainabilityReach the limit of growth in planet if only the present growth trend in world population, industrialization, pollution, food production and resources depletion continue to unchanged
1992 – researcher of The Limit of Growth review and update their analysis
‘In spite of the world improved technologies, the greater awareness, the stronger environment policies, many resources and pollution flows had grown beyond their sustainable limits’
United Nations conversation on SustainabilityWorld Conservation Strategy (1980) – International Union for the Conservation of Nature and Natural Resources (IUCN), UNEP, World Wildlife Fund (WWF) proposed new ethic
Embracing plants and animals as well as people required for human society to live in harmony with the natural world on which their depend for survival and well being
United Nations conversation on Sustainability1992 – Earth summit in Rio de Janeiro, 150 head of state signed the Framework Convention on Climate Change (FCCC), Rio Declaration, Agenda 21, Convention on Biological Diversity and Forest Principles
Covered both economic development and growing environmental threat (e.g: destruction of biodiversity, increase green house gases)
United Nations conversation on SustainabilityFCCC – greenhouse gases had to be reduce.
All country need to decrease greenhouse gases but challenge developed countries to do more by voluntarily rolling back their green house gas emission to 1990 levels by the year 2000
1995 – follow up meeting, lack of reduction since Rio cause the 150 nation to increase their efforts at forging stronger agreement
United Nations conversation on Sustainability1997 – Kyoto Conference (10,000 delegates, journalist and observer)
Focused on the growing evidence of global warming
Legally binding agreement – industrialized country would reduce their collective emission (6 greenhouse gases) by 5.2 % by 2008-12
Industrialized nation could trade emission credit among their selves
United Nations conversation on SustainabilityGlobal Compact (2000) – to encourage corporate participation
By embrace, support and enact a set of core values in the area of human rights, labor standard, environment and anti corruption.
Human Right• Principle 1: Business support and respect the protection of internationally human right
• Principle 2: Not complicit in human right abuse Labor Standard
• Principle 3: Business uphold the freedom of association and recognition of the right to collective bargaining
• Principle 4: Eliminate of all forms of forced and compulsory labor
• Principle 5: Abolition of child labor• Principle 6: Elimination of discrimination in respect of employment and occupation
Environment• Principle 7: Business support precautionary approach to environmental challenges
• Principle 8: Undertake initiative promote greater environment responsibility
• Principle 9: Encourage the development& diffusion of environmentally friendly technologies
Anti - corruption• Principle 10: Business work against all form of corruption (extortion and bribery)
United Nations conversation on Sustainability2000: nearly 50 corporation agreed
2002: Johannesburg Earth Summit – 2 theme ( environment protection & human development)
Global Reporting Initiative (GRI) – provide corporate guideline for triple line reporting (transparency, inclusiveness and accuacy)
Bretton Woods conversation about world trade and finance•1944: 45 nation agreed to create institution – aid in the reconstruction of an economic after World War 2, formulate policy on international monetary exchange •Establishment of Bank of Reconstruction and Development (World Bank), International Monetary Fund (IMF), General Agreement on Tariff and Trade (World Trade Organization, WTO)•US Dollar linked to the gold standard – become currency other national currencies were linked
Bretton Woods conversation about world trade and finance
UNCTAD (United Nations Conference on Trade and Development) establish in 1964 – to promote the integration of developing countries into the world economy (southern leaders hope UNCTAD rectifying the inequalities bween northern and southern)
Proposed a proposal (refer page 182) which allow southern developing nation to compete with northern developed nation – required patience of northern nation, more equality among nations
Bretton Woods conversation about world trade and finance
However, US withdrew support for UNCTAD, transferred the issues of trade and monetary policy to Bretton woos organization
World trade largely controlled by United States:
Dollar off the gold standard Development of Organization of Oil Producing Countries (OPEC)
Leads to currency speculation, money from OPEC nation to Western Bank, Offer tempting loan to developing country, high interest leads developing country unable to pay loans, force World Bank and IMF to interfere
Bretton Woods conversation about world trade and financeTheme of Free Trade and Open Market
Conversations promoting consumption
The growing gap between rich and poor countries
Increase in ethnic hatred
Bretton Woods conversation about world trade and finance
Conversation on promoting consumptionIn advance industrial societies – buying more goods, acquiring more things, increase the stock of material wealth
Companies gain profit by catering to customer by:
Make goods more convenient to buyMassive advertising (materialistic conception of good life)
However, increase in global consumption leads to increase in environmental cost of transportation (refer page 184, example of semiconductor chips)
Bretton Woods conversation about world trade and financeThe growing gap between the rich and the poorGap between the rich and poor increasedBetween 1945 to 1970 – the inequality decline all over the world
East Asia – extreme poverty (living on less than a dollar a day) increased in every developing countries in the world
Reason : wealth globalization create not come from providing needed good and services but from speculation of financial markets
Bretton Woods conversation about world trade and financeIncreased in ethnic hatredHatred between the ruling minority and the ethnic majority
Global expansion of capitalist markets and the promotion of democratic expansion cause intensified ethnic conflict in developing countries
Conversation about the integrity of nature
Basic theme of conversation:Small is beautiful (E.F Schumacher)
Deep ecology (Arnold Naess)Nature as living systems
Conversation about the integrity of nature
A land ethicLand – not only soil, energy flowing thru circuit of soil, plants and animal
Food chain (conduct energy upward), death and decay turn it into soil
Principle: a thing is right when it tends to preserve the integrity, stability and beauty of the biotic community
Leopold suggest to add ecological standard in existing standard of conduct (economic and philosophical conduct)
Conversation about the integrity of natureSmall is beautiful (E.F Schumacher)Emphasized in size – appropriate technologyTechnological development match the size of man, man are small then small is beautifulAppropriate technology = human development, not economic developmentMeasure standard of living = amount of annual consumptionPerson consume more are is better off than person who consume less
Conversation about the integrity of nature
Deep ecologyProposes transformation from anthropocentric to a biocentric view of life
Anthropocentric : nature as resources for human
Biocentric : human of one aspect of natureBiosphere is a self regulating entity with the capacity to keep our planet healthy by controlling the chemical and physical environment
If various part of system take care of each other’s biological needs in such a way that the whole system remains healthy
Conversation about the integrity of nature
The Natural StepEnvironment program developed by Dr Karl Henrick Robert
Earth’s flow is seriously imbalance – producing more than earth than can absorb
Increase the use of earth resources (e.g: oil, water) = increase production of G&S = destroy more natural habitat, destroy earth future
Conversation about the integrity of nature
Natural step proposed – corporation must change their treatment of nature
The condition (refer page 195)Corporation must find new way to: Design their resources use Production process Distribution processWaste can be biological resources (biodegradable) or material resources (reusable or recycle) – cradle to cradle
Conversation about the integrity of nature
Seven element of sustainability: Eliminating waste Eliminating harmful emission to the biosphere Using renewable energy sources Creatg self-sustaining, closed loop products n process
Developing alternative – physical movement of people, material and resource efficient transportation
Creating culture – integrating the principle of sustainability in everyday life
Creatg new model for business (redesign) by pioneering sustainability commerce
The three conversation about sustainability, world trade and integrity of nature represent the significant aspect of relationship between member of civil society and nature
Every human system (corp, family, community, nation) must take responsibility for designing, redesign its system to safeguard the ecological balance that took billions years to create
Four theme of natural integrityBasic theme:Asking the right questionPracticing the principle of subsidiary
Selecting appropriate boundaries
Promoting natural prosperity
Four theme of natural integrityAsking the right questionAssumption: individual cannot solve system problem, system problem need system solution
Imaging how to change the system
Appropriate question : what can we do??
Challenge of asking the right question required to ask more than one
Four theme of natural integrity
The principle of subsidiarySubsidiary : political structure, authority of distant level of administration
Principle support both bottom up and top down structure
Issue should be addressed at the lowest level of at which it is possible to make an adequate response
Also applies to production and consumption (e.g: local wood to make furniture)
Four theme of natural integritySetting boundariesUnited Nation 2002 Earth Carter principle:
Respect and care for the communityEcological integritySocial and economics justiceDemocracy, nonviolence and peaceUnify human and non human lifeEnvironment integrity requires the prosperity of both human and nonhuman communities (natural prosperity)
Four theme of natural integritNatural ProsperityEmphasized on local over the global (natural context)
Technological illusion – problem arise as technological solution
E.g: b4 run out of oil, develop hydrogen fuel
Move from defending private interest to promoting the public good