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Doing
Business… As
if the Earth Mattered
Does Business Care?
Energy use is a core necessity of all business. But some businesses
use much more than others. Manufacturing, heavy industry (steel-making,
car manufacturing, oil production and refining, cement manufacturing)
all consume enormous amounts of energy to make their products.
They also contribute greatly to greenhouse gas emissions.
As carbon emissions have come to be a global concern, these
industries are equally concerned about being able to carry on without
being penalized for their greenhouse gas emissions. How have they
responded to the climate change issue?
In the
early days of the "global warming" discussion, some businesses
(including the oil business) set out to prove that there was no
conclusive scientific evidence to make a definite link between
human activity and a warming planet. They did not want government
to create regulations which would make them invest in emissions-reducing
measures. They opposed Canada's signing of the Kyoto Agreement.
They felt strongly that spending money to reduce carbon emissions
would cause them to lose money, and their employees to lose their
jobs. (If you browse the Internet, you will find many websites
that claim there is no conclusive proof of climate change, that
Kyoto is a dangerous agreement, and that more carbon dioxide is
good for life on Earth.)
New Attitudes
Over time, however, companies even some oil companies have
began to recognize that the evidence is building in favour of a
human connection to the increase in CO2 in the atmosphere. They
are beginning to think and more importantly, to act differently.
As the world waits for Russia to ratify the Kyoto agreement, which
would allow it to come into effect, and national governments negotiate
targets for carbon dioxide reduction, many businesses are working
to reduce greenhouse gas emissions on their own initiative.
Business and Sustainable Development (SD) - Voluntarily
Business is coming to recognize the need for sustainable development.
This new term was first defined in 1988 in a book called "Our
Common Future," that laid out how developed societies could
live and produce the goods and services they need within a
limited biosphere.
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Sustainable development is "development that meets
the needs of the present without compromising the ability
of future generations to meet their own needs."
In other words, development is essential to satisfy human
needs and improve the quality of human life. At the same
time, development must be based on the efficient and environmentally
responsible use of all of society's scarce resources - natural,
human, and economic.
For more details: http://www.sdinfo.gc.ca/what_is_sd/index_e.cfm
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Doing
business in a way that does less damage to the Earth and its natural
systems is not simply an act of good-will on the
part of companies. A growing number of companies are coming to
see that converting their raw materials and systems to more environmentally
sustainable ones offers a range of benefits, including:
http://www.bsdglobal.com/issues/climate_voluntary_schemes.asp
- improving competitiveness by lowering production costs
- anticipating future regulations and market instruments
- helping to shape government programs that take into account
the interests of business
- improving their corporate reputation
New Ways of Thinking
Several important movements have helped businesses move voluntary without
government regulation towards sustainable development and reduction
of greenhouse gases. Here are some examples.
The
Natural Step (TNS)
www.natralstep.org/gateway_business.php
Building Sustainable Societies
Human society with developed countries like Canada leading the
way - is currently consuming natural resources (including non-renewable
resources such as fossil fuels) and returning wastes into the Earth's
land, air and water faster than natural systems can deal with them.
This means that our behaviour as a species is not environmentally
sustainable. If we destroy soil, water supplies, and forests, alter
the atmosphere, and cause too many species to go extinct, the Earth's
natural systems will no longer be able to provide for human needs.
The biggest task of the 21st century confronting human
societies, therefore, is to learn what is needed to become sustainable.
What would development - designs, manufacturing processes,
transportation, energy choices, city planning, road-building, choices
of consumer goods look like if it required 6 billion humans to
live sustainably within the limits of Earth's biosphere? What would sustainable
development look like?
Defining Sustainability
A Swedish doctor called Karl-Henrik Robèrt, one of his
country's leading cancer researchers, consistently observed the
link between environmental contaminants and human health. In 1989
he decided is was important to find a way to get past the endless
debates on environmental degradation. Instead of debating, he wanted
to start a process that would define what sustainability or sustainable
development was. He wanted to find a way to bring about agreement
on some basic, guiding principles for moving towards a sustainable
society. He was looking for ways for humans to do things more like
nature did.
Dr.
Robert invited 50 of his scientific colleagues to see what they
agreed on. He gathered round after round of ideas from all
of them, and eliminated points of disagreement. He ended up with
a scientific consensus, or agreement, on a set of guiding principles
for a sustainable society. These principles became the basis for
a program he called The Natural Step (TNS).
In terms of nature, sustainability is about the human use of natural
resources in ways that they can be renewed, so that the environment's
natural qualities are maintained. The idea of sustainable development
adds some other ideas to this basic concept.
Sustainable Development: What's good for the Environment, the
Economy, and Society
Sustainable development looks not only at the quality of the
natural environment, but also at the well-being of economies and
human societies. Sustainable development is the concept of improving
the quality of life for all of the Earth's citizens without
increasing the use of natural resources beyond the capacity of
the environment to supply them indefinitely. It requires understanding
that not changing the way we do things has consequences and
what they are. It then requires developing new ways to change institutional
structures and practices, and influence individual behaviour. It
requires taking action which includes changing policy and practice
at all levels, from the individual to the international.
Dr. Robèrt's Natural Step program was
developed into an educational package. It was designed to help
companies, governments, cities, institutions, and non-profit groups
learn strategic planning methods for sustainable development. The
program helps people identify their particular environmental problems.
They can then ask questions, explore possible solutions and make
informed decisions. Using a common set of principles that define
the goals of sustainability, people al all levels of organizations
can work together to reach common goals.
The Natural Step is based on systems thinking, and
helps users see how decisions in one part of an operation are connected
to all the other parts as well as to the world outside their organization.
It provides businesses ways of making sustainable development a
part of their business strategies.
Since its introduction, the Natural Step has established offices
in Australia, Brazil, Israel, Japan, New Zealand, South Africa,
Sweden, the United Kingdom, the United States and Canada. TNS (Canada)
offers educational workshops, training programs, and implementation
programs. It also produces education and communication tools and
services.
They can be reached at:
The Natural Step Canada
2nd Floor, 43 Eccles St.
Ottawa, ON
K1R 6S3
Phone: (613) 748-3001
Fax: (613) 748-3372
Email: info@naturalstep.ca
The Pew Center's Business Environmental Leadership Council (BELC)
Collaboration on Business and Climate Change
The US Pew Center on Global Climate Change brings together business
leaders, policy makers, scientists, and other experts. They work
to bring a new approach to the complex and often controversial
issue of climate change. They take an approach based on sound science,
straight talk, and a belief that voluntary cooperation can protect
the climate while sustaining economic growth. The Pew Center
analyzes and reports on climate change and business issues. It
distributes its reports to more than 4,000 opinion leaders throughout
the world.
The Pew Center Business Environmental Leadership Council (BELC) is
a group of leading companies worldwide that are responding to the
challenges posed by climate change. BELC members recognize the
importance and the complexity of climate change. They choose
to work together to meet this challenge voluntarily. They agree
on a set of important ideas:
- that there is enough scientific evidence about the environmental
impacts of climate change to take action to address its consequences
- that businesses in the US and other countries should 1) analyze
their opportunities for emissions reductions, 2) establish and
meet greenhouse gas reduction targets, 3) invest in new and more
efficient products, processes and technologies
- that companies must find ways to not only meet but improve
on Kyoto targets, and involve more players world-wide in climate
change solutions
- there is a need for the adoption of reasonable policies, programs
and transition strategies in order to both address climate change
and sustain economic growth
http://www.pewclimate.org/companies_leading_the_way_belc/
(Note: There are some environmentalists who believe that continuing
economic growth is not compatible with achieving enough
greenhouse gas emissions reductions to stabilize the Earth's climate.)
Corporate
Social Responsibility (CSR)
What's Important In Business Today? - A New, Broader Vision
Businesses and corporations, sometimes reminded by members
of the public, are beginning to pay attention to more than making
money. They are realizing that there is a growing expectation that
they act as more than isolated profit-making centres. Corporate
Social Responsibility (CSR) is a vision of companies that look
at their broader place in society. It asks them to consider areas
of concern that include the well-being of their employees, their
communities - and society in general, both now and in the future.
It also asks them to look at the total effects of their operations
on the natural environment and work to improve them. CSR is a
way for corporations to become more responsible and accountable
to their shareholders, their customers, their employees and the
natural world.
What has led to this move towards Corporate Social Responsibility?
1) Public Demand As corporations have grown larger
and larger, and many have become multi-national, people have begun
asking them to be more open about how they operate. There is a
growing demand for "corporate disclosure" from customers,
suppliers, employees, communities, investors, and activist organizations.
2) Ethical
Shopping In recent years, more people are using their shopping
choices as a form of ethical activism. This selective shopping
has helped make companies pay more attention to the factors that
are important to their customers: treatment of employees (no
sweatshop labour), "fair-trade" prices for commodities
to the growers (to coffee, sugar, growers), and environmentally-friendly
processes and content ("green products," energy-saving
products, recycled content, forest-friendly, sustainably logged
paper products, etc.)
3) Less government regulation In the past corporations
depended on governments for legislation and regulations about social
and environmental requirements. With tax cuts and reduced government
regulation in many places, corporations are increasingly taking
on the voluntary role of selecting social and environmental initiatives
they believe to be important as business interests.
4) Stocks and Investment More people are considering
the social and environmental performances of companies when they
are deciding to buy stock in their operations. One report noted
that in the US in 1999 there was more than $2 trillion invested
in stocks that used screens for environmental and social responsibility.
5) Green and Socially Responsible Purchasing When companies
pay more attention to effects of their own performance on social
and environmental outcomes, they may then ask their suppliers to
do the same. Social and environmental purchasing policies set out
standards for ethical companies to deal with the companies they
buy from, helping the corporate responsibility attitude to spread.
The results? Companies that find CSR an important part of
how they do business come out ahead. They frequently find they
enjoy benefits
…to the company
- increased
sales and customer loyalty
- greater productivity and quality
- improved financial performance
- lower operating costs
- brand image and reputation
…to the community
- charitable contributions
- employee volunteer programs
- corporate involvement in community education, employment and
homelessness programs
- product safety and quality
…and to the environment
- more recycling in processes and product content
- improvements in product design for durability and functionality
- more use of renewable resources
- adding environmental management tools into business plans (life-cycle
assessment and costing, environmental management standards, and
eco-labelling)
Resources
Business Ethics: Corporate Social Responsibility Report 2004 Including
the 100 best corporate citizens for the year!
http://www.business-ethics.com/
Corporate Social Responsibility: How's it going, how to get
involved? One man's view on the international scene.
http://www.mallenbaker.net/csr/
The International Institute for Sustainable Development Championing
innovation, enabling societies to live sustainably.
http://www.iisd.org/

ACTIVITY 1
- a) What does the term ' sustainable development' mean?
b) What are the benefits to businesses?
- a) What does the term 'systems thinking' mean?
b) Why is it important to use this when considering sustainable development?
- Describe 3 ways that you as an individual can affect Corporate
Social Responsibility (CSR).
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