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MODULE 47: Dumping
Core Module Issues:
• Is a company obligated to go beyond legal requirements to protect the
environment?
• What if the potential harm is “out in the middle of nowhere”.
Module Teaching Notes
This new unit on environmental ethics will probably generate more debate and less consensus that the other
units. This is not necessarily a bad thing – remember that the essential goal of the course is to expose
students to as many ideas as possible.
Even students who do not “change their minds” immediately can at least benefit from hearing how others
think.
I'll credit the media with polarized opinions on environmental issues, for what it's worth.
It would be a good idea to stop here and spend some time letting students give their opening positions on
environmental issues. Should a company:
-Just comply with the law, and do nothing further, where the environment is concerned. Students often
defend this position by saying, “Look – the government needs to change the rules for everyone it's so
important.”
-Go beyond legal requirement, but only to the extent that customers will “like them more” and spend more
money OR actively seek out opportunities to be environmentally conscious, even if the company will likely
“lose money”, especially in the short term.
Let the students speak for longer than usual, here. Get a sense of the room – is it split, or does it lean more
towards supporting or not supporting environmental causes? This will help you to lead all of the discussions
that follow in the next several modules.
At any rate, this opening module, the dilemma is whether a cruise line should dump various things
overboard once they get into international waters. The dumping options would save tons of money, and
some of them are inspired by the actual practices of some cruise lines in recent years.
And so, if “no people are around”, and if a violation of law is unlikely, or is at least unlikely to be terribly
costly, what should the CEO decide to do?
Discussion Points for Scenario Questions
1. If you were the CEO, would you give a green light to dumping? Why?
A. YES – BUT IF EVERYONE DID THIS, WOULDN'T THE CUMULATIVE
EFFECT BE UNACCEPTABLE?
B. NO – BUT WHAT IF THE COMPANY GOES UNDER?
2. At what specific point in the dialogue did you become sure of your decision?
3. Do you view the vice president unfavorably for raising this idea in the first place?
A. YES – BUT ISN'T IT HIS JOB TO PRESENT ALL OPTIONS?
B. NO – SHOULDN'T SOME THINGS BE “OFF THE TABLE”
4. Do you consider “the earth” or “the environment” to be a stakeholder worthy of
consideration?
A. YES – ISN'T “THE EARTH” KIND OF VAGUE WHEN COMPARED TO
“EMPLOYEES” OR “CUSTOMERS”
5. Should Congress change the law to make dumping by U.S. companies illegal worldwide?
A. YES – HOW WILL WE ENFORCE THE LAW? THE OCEAN IS A BIG
PLACE.
