Business Ethics Chapter 12 Business And Utilities Taxed From Their Co2

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Instructor Resource

Collins, Business Ethics 3e

SAGE Publishing, 2022

• The Starbucks environmental mission statement in this section provides useful

example.

DISCUSSION ACTIVITY

Have students independently create an environmental mission statement for the college, business

school, or employer. Share in small groups and reach consensus on a model environmental

ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

• The International Organization for Standardization (ISO), a nongovernmental

organization, has worked closely with industry, technical experts, and other

stakeholders to develop an environmental management system (EMS) plan for

achieving superior environmental performance.

• An EMS is the basic component of ISO 14001 certification, a competitive advantage

in a marketplace where more organizations are using a green screen to choose

suppliers. This is a voluntary self-regulatory system not mandated by government

Instructor Resource

Collins, Business Ethics 3e

SAGE Publishing, 2022

DISCUSSION ACTIVITY

Have students assess the college or employer’s environmental management system (EMS) plan

according to the five categories in Table 12.3, Environmental Management System (EMS) Plan.

Provide the following prompts: Is it clear exactly what students need to do if they want to (1)

develop a new environmental policy, (2) establish a new short-term environmental target, (3)

communicate an environmental accomplishment to the campus community, (4) create a new

database for an environmental performance item, and (5) obtain administrative approval for these

activities?

If the college or employer does not have an EMS plan, then have students draft one by

responding to the issues in Table 12.3 and share the draft with the appropriate manager.

GREEN BUILDING

• One of the most visible signs of caring for the environment and employees is

operating in a green building.

• Green buildings improve employee health, reduce energy costs, and limit detrimental

environmental impacts.

Instructor Resource

Collins, Business Ethics 3e

SAGE Publishing, 2022

DISCUSSION ACTIVITY

Have students review the “Ten Steps to Green Your Office” in Ethical Applications. List how

many of the 10 steps their employer or college/university does. Why do they do them? Which of

the 10 steps not being done would be easy to adopt? Why? What would it take for the employer

or college/university to adopt them? Discuss the results in small groups.

CRADLE-TO-CRADLE PRODUCTS IN A CIRCULAR ECONOMY

• Cradle-to-Cradle products designed to achieve zero waste, where every aspect of

GREEN SUPPLIERS

• Going green entails making sure that the inputs being received are themselves

environmentally friendly. Suppliers should be held accountable for providing green

DISCUSSION ACTIVITY

Have students interview a purchasing manager for the college, business school, or employer, and

complete the following: Evaluate two or three products recently purchased using Table 12.5,

Instructor Resource

Collins, Business Ethics 3e

SAGE Publishing, 2022

Sustainable Products Checklist. Are there alternative products that score higher? Would the

purchasing manager like to adopt the Sustainable Products Checklist? Why or why not?

• Walmart goes deeper into the supply chain by making sure that their supplier

DISCUSSION ACTIVITY

Have students interview a purchasing manager for the college, business school, or employer

using Walmart’s Supplier Sustainable Index Questions in Best Practices in Use, and answer the

following questions: How did they score? What are the strengths and weaknesses? How can the

organization transform a weakness into a strength?

ENVIRONMENTAL GOALS AND PERFORMANCE INDICATORS

• Continuous environmental improvement entails creating historical benchmark

measurements documenting previous environmental performance, measuring current

DISCUSSION ACTIVITY

Have students collect the appropriate data and assess the carbon footprint for the college,

business school, or employer by using the Climate Care carbon calculator at

www.jpmorganclimatecare.com/business/business-co2-calculator/. Answer the following

Instructor Resource

Collins, Business Ethics 3e

SAGE Publishing, 2022

questions: Are you surprised by the results? What are the organization’s strengths and

weaknesses? How can the organization transform one weakness into a strength? Discuss in small

groups.

• Global Reporting Initiative (GRI), an international multi-stakeholder coalition

founded 1997, provides general guidelines for sustainability reporting that allow for

CARBON OFFSETS AND GREEN PHILANTHROPY

• Some organizations reduce the carbon waste on Earth by purchasing carbon offsets

equivalent to their carbon footprint and participating in green philanthropy.

DISCUSSION ACTIVITY

Have students review the extended list of environmental organizations that are members of the

nonprofit One Percent for the Planet

Then ask them to randomly review several of the nonprofit organization profiles and choose one

to present to classmates.

Instructor Resource

Collins, Business Ethics 3e

SAGE Publishing, 2022

Chapter 12 QUESTIONS ANSWERED

1. Chapter Question 1: How do fossil fuel economies impact the Earth’s climate and

human well-being?

• Beginning with 18th century Industrial Revolution, there has been significant damage

to atmosphere.

• The number of people consuming the Earth’s scarce resources continues to rise.

• NASA’s five vital signs on website (https://climate.nasa.gov/)

1. Global temperature: increased 1.7 °F (0.95 °C) since 1880

2. Carbon dioxide: 405.6 parts per million (ppm), compared with 280 ppm pre–

Chapter Question 2: How have the three largest carbon dioxide emitting countries

responded to the 2015 Paris Agreement?

INTERNATIONAL EFFORTS AND AGREEMENTS

• Pollution knows no international boundaries.

Instructor Resource

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• 2015 Paris Agreement set goal to limit average global temperature increases to

1.5°C of pre-industrial levels

o Negotiated by representatives from 195 nations

CHINA AND EUROPEAN UNION EFFORTS

• China is world’s largest CO2 emitter.

o Establishing higher energy efficiency standards

• European Union (EU) is leader in CO2 reductions.

o 22 percent reduction in CO2 emissions from 1990–2014

U.S. GOVERNMENTAL EFFORTS

• Obama provided $90 billion to help in the American Recovery and Reinvestment

Act, blocked construction of a major oil pipeline, established more and higher

WALL STREET INVESTORS

Instructor Resource

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• 2016, socially responsible investing (SRI)—also referred to as environmental, social,

and governance (ESG)—market accounted for $8.7 trillion in assets, more than triple

2010.

Chapter Question 3: What are the competitive advantages of being eco-friendly?

• Table 12.2, Competitive Advantages of Being Eco-Friendly, lists some of the

competitive advantages:

Chapter Question 4: What are some of the big impact greenhouse gas reduction

solutions?

• Project Drawdown

Chapter Question 5: What are the 10 aspects of the environmental change process and how

do they contribute to managing environmental change?

• summarizes 10 aspects of the environmental change process, beginning with the

importance of one environmental manager held accountable for initiatives.

o Step 1: Create a Green Team accountable to a specific high level manager.

Instructor Resource

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Chapter Question 6: What are some of the key features and best practices of green

organizations?

GREEN MISSION STATEMENT

• Some organizations create an environmental mission statement that clearly

example.

GREEN ENERGY:

• Goal is 100 percent renewable energy use.

GREEN BUILDING

• Green buildings improve employee health, reduce energy costs, and limit detrimental

environmental impacts.

Instructor Resource

Collins, Business Ethics 3e

SAGE Publishing, 2022

GREEN SUPPLIERS

• Suppliers should be held accountable for providing green products and operating in

an eco-friendly manner.

ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

• The International Organization for Standardization (ISO), a nongovernmental

organization, has worked closely with industry, technical experts, and other

stakeholders to develop an environmental management system (EMS) plan for

ASSESS PERFORMANCE—SUSTAINABILITY REPORTING

Instructor Resource

Collins, Business Ethics 3e

SAGE Publishing, 2022

• Global Reporting Initiative (GRI), an international multi-stakeholder coalition

founded 1997, provides general guidelines for sustainability reporting that allow for

CHAPTER 12 ANALYSIS FOR “WHAT WOULD YOU DO?” OPENING DILEMMA

CHAPTER 12: Environmentally Friendly Cabinets

Summary

• You are a purchasing manager for a mid-size company and chair the company’s

Green Committee.

• You need to purchase filing cabinets and find out about eco-friendly filing cabinets.

Table 6.3 Systematic Rational Ethical Decision-Making Process

1. Who are all the people affected by the action?

2. What option benefits me the most?

Instructor Resource

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Mixed: Buying from eco-friendly supplier demonstrates adherence to company policy, but

3. What option does my social group support?

4. What option is legal?

Both: You have policy flexibility.

5. What option is the greatest good for the greatest number of people affected?

6. What option is based on truthfulness and respect/integrity toward each stakeholder?

7. What option would a virtuous person do?

Both: Moral character is strengthened by standing up for the environment (Option A), but

also by coming to the aid of a loyal local supplier in economic hard times (Option B).

Option

Option Strengths Based on

Application of Ethical Theories

Option Weaknesses Based on

Application of Ethical Theories

A: Purchase eco-

friendly cabinets.

This option supports the

environment.

You abandon loyal local supplier in

time of need.

Instructor Resource

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Option Chosen

Option B: Purchase from local supplier.

Chosen Because

This is based on utilitarianism, deontology, and virtue ethics. The local

supplier has provided high quality goods for 30 years and is struggling

through a recession. You are being loyal to a long-time supplier

(deontology) and community well-being (utilitarianism) at a time when

economic help is needed. Buying locally can also have a ripple effect

within the local business community.

How Will You

Manage Chosen

Option

Weaknesses?

Purchase the highest quality eco-friendly product within your price range

that your local supplier can locate. Educate the local supplier about the

company’s new product checklist and work with the supplier as needed to

locate eco-friendly products for future purchases.

CHAPTER 12 ANALYSIS FOR UP FOR DEBATE

Up for Debate: Carbon Tax

Carbon dioxide is a heat-trapping greenhouse gas that contributes to air pollution and related

health problems. Carbon dioxide emissions, caused by the burning of fossil fuels (coal, gas, and

oil) for energy, is considered by scientists to be the major contributor to global warming. Some

people claim that the most efficient and fairest way to reduce carbon dioxide emissions is to tax

the production, distribution, and/or use of fossil fuels. Some individuals claim that such a tax,

1. Should government implement a carbon tax?

a. Yes: Implement a carbon tax.

b. No: Don’t intervene.

Instructor Resource

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SAGE Publishing, 2022

2. Why is this the right option to choose?

3. What are the ethics underlying your decision?

Up for Debate: Carbon Tax—Should government implement a carbon tax?

Yes

• If tax is passed on to consumers in the

form of higher prices, it would result in

• This will generate increased revenue

for government to fund environmental

and other projects (utilitarianism).

• This allows increased awareness of

fossil fuel costs (utilitarianism).

• The extra costs would be detrimental to

the economy (utilitarianism).

(utilitarianism).

• This would lead to a production shift

toward renewable because renewable

energy becomes more price competitive

(utilitarianism).

• This can result in higher administrative