Chapter 9: Environmental Sustainability and Its Challenges to
Management
Sample Discussion Answers
These answers should be treated as supplemental to your own thoughts and analysis and
are by no means comprehensive. Feel encouraged to include your own experiences and
points of disagreement with the chapter should you find any.
1. What is your view of how things stand with the environment? How big an issue is
this for us, how much (if any) is business responsible for it? How much change (if
any) is needed to get us on the right track?
2. What are the four mind-sets about the environment? Why are they important for
our thinking? (p. 322)
The four mind-sets introduced in this chapter include:
Doomsayer mind-set
We’re all doomed! The world is doomed! The only way to mitigate the inevitable
Cornucopian mind-set
We will innovate, we always have. At least in terms of resources, humans have
always been faced with scarcity and responded with substitutions. Whenever the
“Haves versus have–nots” mind-set
Largely agrees with the Doomsayers mindset, but focuses on the fact that in 50
Aesthetic mind-set
Largely agrees with Cornucopians that the future in all likelihood will not be as
3. What is Pascal’s Wager? How does it influence how you look at the uncertainty
surrounding the environment?
Pascal’s Wager refers to a thought problem formulated by the French philosopher and
mathematician Blaise Pascal. Pascal argues that it is rational to believe in a Christian God
(as opposed to being atheist) because 1.) if Christianity is true, the believer will be saved
and 2.) if Christianity is false, the believer still has nothing to lose by living according to
Christian principals. (Note that Pascal implies that non-Christians will suffer eternal
damnation if Christianity is true. Also note that this wager would not work so well if
other religions offered similar damnation policies [the kind with the after-lifetime
warranty].)
4. What are the four Shades of Green? Where do most businesses operate? (p. 328)
1. Light Green Principle: Create and sustain competitive advantage by ensuring
2. Market Green Principle: Create and sustain competitive advantage by paying
3. Stakeholder Green Principle: Create and sustain competitive advantage by
4. Dark Green Principle: Create and sustain value in a way that sustains and
5. What do we need to do to help businesses do a better job regarding the
environment?
6. What is the end goal here? How does this discussion relate back to the goal of
putting ethics and business together?
Environmental challenges are one important aspect of the project of putting ethics and
ExxonMobil in Chad and Cameroon*
Teaching Notes
Synopsis
In November 1999, ExxonMobil and its CEO Lee Raymond had to determine what
course of action to take after two major partners, Royal Dutch/Shell and France’s
TotalFinaElf, withdrew from the Chad-Cameroon Oil and Pipeline Project. The project
was enormously complex, involving billions of dollars in potential revenue, with a wide
variety of stakeholders, an array of critics, and a potentially volatile political and social
environment. The situation was further complicated by the history of oil extraction in
developing countries and the unbridled corruption that had inevitable ensued. Shell’s and
Elf’s pullout threatened to sideline the whole operation and seemed to give credence to
those critics who thought that the environmental and human costs of oil exploration and
extraction in the extremely poor countries of Chad and Cameroon were too great.
Raymond and ExxonMobil had to decide whether to proceed with the project.
Objectives
While a greater conscientiousness of the interactions between business and the
environment has grown in recent years, it is important to note that business and the
environment have always impacted each other. How can ExxonMobil balance the
interests of the Chadian and Cameroonian citizens, the two countries’ indigenous people,
the environment, and development? What are the ethical issues and sources of ethical
guidance involved in ExxonMobil’s decision-making process?
Students should be encouraged to consider the interests and roles of the various
stakeholders involved. Stakeholders here can refer to:
1. Direct Parties: ExxonMobil, the governments of Chad and Cameroon
For the stakeholders, this project can potentially result in much progress and in much
Questions for Discussion
1. How should managers think about the environment as part of their decision-
making? How much should it matter and how should it be incorporated?
2. If ExxonMobil is truly committed to the environment, is this the last place they
should be drilling or exactly where they belong? For those who say they should
leave, where else is it OK to drill for oil? For those who say stay, is there
anywhere that ExxonMobil should not drill for oil?
3. What about this case and its appeal for ExxonMobil? What are the biggest
opportunities and risks for the company?
Suggested Lesson Plan (85 minutes)
1. Question 1 (5 minutes): Ask students to think about how they think about the
environment as part of being a manager and how they think companies like
2. Question 2 (10 minutes): Press students to consider the broader case, especially
in terms of the generalizability problem – if the environmental issues are too great
to drill here, does this mean we have to get out of the oil business? If so, chances
3. Question 3 (20 minutes): There is a lot of material to fit in here, from the size of
the oil reserves, its strategic location, the impacts on various stakeholders, the risk
4. Question 4 (10 minutes): One can argue that this is a very significant case for
ExxonMobil. Precisely because it is environmentally sensitive, this context may
5. Question 5 (10 minutes): This is a key question in the case. If I care so much
about the environment, does that obligate me to step in if I can do a better job? Or
6. Question 6 (10 minutes): The Chad government is a huge factor in this case. Take
some time to get them to think through the challenges of going into business with
7. Question 7 (20 minutes): Bring it all back together, see where people stand, and
Additional Material: ExxonMobil proceeded with the project. The pipeline created
11,000 new jobs for Chadians (55 in supervisory positions). ExxonMobil spent $3.7
million to train those employees and $100 million when into local businesses. In 2004,
*This teaching note is based on a teaching note prepared by Senior Ethics Research
Walden Paddlers*
Teaching Notes
Synopsis
This case chronicles the formation and development of Walden Paddlers, a company that
produces affordable, high performance recreational kayaks from recycled plastic. While
on vacation after being laid off, Paul Farrow came across the idea of producing
Objectives
This case should help students to think about green business by providing an example of
an entrepreneur who managed to successfully pursue what he enjoys in a manner that fits
his personal values. It can be used not only as an example of innovation that can be
Questions for Discussion
1. How serious are the global environmental problems we face? What kinds of changes
2. How does this make you think about environmentally conscientious business? In what
ways was Walden Paddlers environmentally conscious? In what ways could it be doing a
better job?
3. What decisions do you think were most important to Walden Paddlers’ success?
4. What are the advantages and disadvantages of the informal relationships developed in
7. In what ways is Walden Paddlers’ model useful for thinking about what business can
do and what business needs to do? What insights can other businesses, especially larger
and more traditional businesses, learn from Walden Paddlers?
Suggested Lesson Plan (85 minutes)
1. Question 1 (10 minutes): This question provides a way to connect these issues
back to the students and get their sense of how big the problems are and what
2. Question 2 (15 minutes): Before diving into the details of this case, take some
time to push them to reflect on what business can and should do about the
environment. Then take some of those ideas and apply them to the case. To what
extent is Walden Paddlers a company to emulate and applaud? What have they
done that is remarkable? As good as they are, chances some students will feel
3. Question 3 (10 minutes): Take time to go back through the case and encourage
students to look for choices that seemed particularly significant in shaping this
story. What made this a success? At what point did we gain confidence that this
was going to work? What did it take and how did the alignment of values among
key stakeholders play a role?
4. Question 4 (10 minutes): The informality with which the people in this case were
able to conduct business was perhaps one of the greatest assets that contributed to
the success of this venture. Such informality was made possible because of a high
happened if the venture did not succeed?
5. Question 5 (15 minutes): This question should give students pause. It offers an
opportunity to go back to the case to think about the barriers to Walden Paddlers
6. Question 6 (10 minutes): There is no limit to the number of options for Walden
that students can think of. As for the second argument, there can be good reasons
7. Question 7 (15 minutes): Take time to push students beyond this case to think
about how it may speak to other companies – particularly traditional businesses.
What about this story, and this environmental entrepreneur, can be used to help