Chapter Ten: Business’s Environmental Responsibilities
Chapter Ten: Business’s Environmental Responsibilities
Review Questions
1. How would you define a sustainable business? What are the three pillars of
sustainability?
2. Give examples of at least two market failures and explain how they represent challenges
to the free market understanding of business’ environmental responsibilities.
3. What is the difference between consumer desires and citizen beliefs? How is this
distinction relevant to business’ environmental responsibility?
4. What is the circular flow model of economic transactions? Explain how this model differs
from the sustainable economics of Herman Daly.
5. Explain the four guiding principles of natural capitalism as developed by Lovins, Lovins,
and Hawken.
Chapter Ten – Business’s Environmental Responsibilities
Discussion Questions
1. Interface shifted from a product-based to a service-based company. The growing
popularity of leasing in the automotive and computer business suggests that paying for
services rather than products might be an innovation that others can adopt. Can you think
of other industries and businesses that might make a similar shift? As a consumer, which
would you prefer?
2. Some critics argue that sustainability is popular only because it allows industrialized
countries to believe, falsely, that consumer-driven lifestyles can continue indefinitely. In
what ways do you believe your own lifestyle is sustainable? Unsustainable?
3. Should manufacturers be legally liable for “cradle to grave” responsibility for their
products? Should manufacturers be responsible to recycle their products after consumers
are finished with them? Who should pay for disposal of consumer goods at the end of
their product life?
4. What government policies might encourage other businesses to follow Interface’s lead?
What government policies hinder such activities?
5. What responsibilities, if any, do we have to future generations? How might these
responsibilities change contemporary business?
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