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CHAPTER 9
SUSTAINABLE DEVELOPMENT AND THE
GLOBAL BUSINESS
INTRODUCTION
The world community faces unprecedented ecological challenges in the 21st century,
including climate change, resource scarcity, and threats to biodiversity. Many political
and business leaders have embraced the idea of sustainable development, calling for
economic development without depleting the natural capital on which future generations
depend. A critical task in coming decades for government policymakers, civil society
organizations, corporate leaders, and entrepreneurial innovators will be to find ways to
meet simultaneously both economic and environmental goals.
PREVIEW CASE
World Summit on Sustainable Development, Rio+20
Of the many remarkable changes that had occurred in the two decades between the first
Earth Summit in 1992 and World Summit on Sustainable Development in Rio de Janeiro,
Brazil in 2012, one of the most striking was the involvement of businesses, both large
and small, from all over the globe, in the pursuit of sustainability, The chapter opens with
examples that demonstrate the tremendous creativity that businesses, governments,
society were bringing to the ecological challenges addressed by Rio+20. Could all of
these groups, working together put the global economy on a more sustainable course?
CHAPTER OUTLINE
I. BUSINESS AND SOCIETY IN THE NATURAL ENVIRONMENT
A. Sustainable Development
Teaching Tip: Preview Cases
The preview material introduces students to examples of companies
that have embraced the challenges of operating within the limits of the
Earth’s natural systems. These examples include Nike (flyknit shoes),
Taylor Guitars (sustainably sourced wood), and Hertz (water-free car
washing). Students may be asked to generate other examples of
businesses working creatively to address the issue of sustainability in
their operations.
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B. Threats to the Earth’s Ecosystem
C. Forces of Change
The population explosion
World income inequality and economic development
D. The Earth’s Carrying Capacity
II. GLOBAL ENVIRONMENTAL ISSUES
A. Climate Change
Teaching Tip: Sustainable Development
The definition of sustainable development is development “that meets
the needs of the present without compromising the ability of future
generations to meet their own needs,” or more simply, “ensuring a
better quality of life for everyone, now and in the generations to come.”
This concept appears, on its face, to embody a contradiction. How can
society meet its own pressing needs today, without damaging or
depleting the ecosystem on which future generations will depend?
Students may be asked to explore this question.
Teaching Tip: Masdar: A Completely Sustainable Community
Exhibit 9.A describes Masdar, the world’s first completely sustainable
community, located within the boundaries of Abu Dhabi, in the United
Arab Emirates (UAE). Students should be encouraged to consider and
debate why a nation that is home to one of the largest oil companies in
the world would want to develop an urban model of clean technology
and innovation.
Teaching Tip: Ecological Footprint
Students may be asked to calculate their own ecological footprint. A
calculator is available at www.footprintnetwork.org, by following the
link to “personal footprint.” The footprint calculation shows in a
dramatic and personal way, how the resource use of most individuals in
advanced societies greatly exceeds the earth’s carrying capacity, given
present technology.
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B. Ozone Depletion
Resource scarcity: water and land
Fresh water resources
Arable land
C. Decline of Biodiversity
D. Threats to Marine Ecosystems
III. RESPONSE OF THE INTERNATIONAL BUSINESS COMMUNITY
A. Codes of Environmental Conduct
Teaching Tip: Global Warming
The most important international treaty on global warming is the
Convention on Climate, which is periodically re-negotiated at an
international gathering called the Conference of the Parties. Students
may be asked to research the results of the most recent negotiations.
(The December 2015 conference was scheduled to take place in Paris,
France.) Students may check the current status of negotiations and
ratification at newsroom.unfccc.int.
Teaching Tip: Climate Change
Students may be interested in the video available from PBS entitled:
“Harsh Weather, Knee Injuries Didn’t Stop Filmmaker from Chasing
Glaciers” at http://video.pbs.org/video/2311159725.
Teaching Tip: Marine Ecosystems
“Fish Banks, Ltd.” is an excellent simulation that may be used to help
students understand the impact of unsustainable fishing practices on
marine ecosystems. The original multi-team game may be ordered
from its developer, Dennis L. Meadows, Director at the Institute for
Policy and Social Science Research – Hood House – Durham, NH
03824-3577 (603)862-2186. lataillede@aol.com. A simplified version
is available at:
http://www.bpa.gov/Corporate/KR/ed/step/fishing_game/fishing.shtml.
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GETTING STARTED
KEY LEARNING OBJECTIVES
LO 9-1: Understanding how business and society interact within the natural
environment.
LO 9-2: Defining sustainable development.
LO 9-3: Recognizing the ways in which population growth, inequality, and
economic development interact with the world’s ecological crisis.
LO 9-4: Examining common environmental issues that are shared by all nations
and businesses.
LO 9-5: Analyzing the steps both large and small businesses can take globally to
reduce ecological damage and promote sustainable development.
LO 9-6: Describing the leading global codes of environmental conduct.
Nationally and internationally, businesses and nongovernmental organizations have
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KEY TERMS
biodiversity
carbon neutrality
carbon offset
INTERNET RESOURCES
Change
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DISCUSSION CASE
CLEAN COOKING
Discussion Questions
1. In what ways would the widespread adoption of clean cookstoves address the
global environmental issues discussed in this chapter?
wood or charcoal leads to deforestation—and the associated loss of biodiversity and
watershed degradation. Moreover, the combustion of biomass in cooking produces
2. In what ways would the widespread adoption of clean cookstoves address the
issues of economic development and poverty discussed in this chapter?
Teaching Tip: Hazards of Indoor Cookstove Fires
An excellent PBS video to use in connection with this case may be
found at:
http://www.pbs.org/newshour/bb/building-cleaner-cookstoves/
In the video, which runs 7:46 minutes, journalist Fred de Sam Lazaro
reports on a clean cookstove project in Guatemala.
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3. Which sectors (e.g., government, business, civil society) would need to be
involved in a successful campaign to promote clean cookstoves in the developing
support. Companies could contribute money, professional skills, and technical
expertise. Nongovernmental organizations could become involved in on-the-ground
practices.
4. What would be the benefit to multinational corporations, such as CEMEX,
Marks and Spencer, and Dow Corning, of participating in this effort?
Teaching Tip: Environmental and Economic Outcomes
A theme of the chapter is the importance of integrating economic
development and environmental goals. Indeed, the concept of
sustainable development encompasses both development and
environmental protection. An important “take–away” of this case for
students is that the adoption of clean cookstoves would have
simultaneous environmental and economic benefits—and thus
contribute to sustainable development.
Teaching Tip: Social Entrepreneurship and Bottom of the Pyramid
Instructors may wish to use this case as an opportunity to refresh
concepts and themes introduced in Chapter 4, which discussed
opportunities to serve customers at the “bottom of the pyramid.”
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companies might benefit from their contributions. However, students may speculate
that these actions might enable these companies to better understand the application
their employers.
5. What distinctive contributions can social entrepreneurs make to promote clean
cookstoves?
sourced materials and built a business to market these stoves to his fellow Ghanaians.
successful business.