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CHAPTER 10
MANAGING FOR SUSTAINABILITY
INTRODUCTION
Growing public concern about sustainability has prompted political, corporate, and civil
society leaders to become increasingly responsive to environmental issues. In the United
States and other nations, government policymakers have moved toward greater reliance
PREVIEW CASES
Levi Strauss & Company
The Western Climate Initiative (WCI)
Environmental Defense Fund
sustainable business practices. A good 8 minute PBS video on the
Teaching Tip: Preview Cases
These Preview Cases illustrate new approaches to environmental
protection by companies, governments, and NGOs. Levi Strauss &
Company sold $500 million worth of “sustainably enhanced” garments.
Several U.S. states and Canadian provinces joined forces in an effort to
trends are described at greater length in the chapter.
Teaching Tip: EDF and Google Earth
“Mapping the Invisible” (3:05) describes the partnership between the
EDF and Google Earth. It is available at:
Teaching Tip: Patagonia
Similar to Levi Strauss & Company, Patagonia is implementing highly
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CHAPTER OUTLINE
I. ROLE OF GOVERNMENT
A. Major Areas of Environmental Regulation
Air pollution
Water pollution
Solid and Hazardous Waste
Information disclosure
Civil and criminal enforcement
Teaching Tip: Environmental Justice
Since land values are often lower in predominantly minority
communities, environmental racism may be the indirect result of
decisions to site waste facilities on inexpensive land. This raises an
A video that may be used in conjunction with this discussion is
“Fenceline: A Company Town Divided” (PBS, 52 minutes, first aired
2002). This film tells the story of a conflict between Shell Chemical
Company and the Dimond community of Norco, Louisiana. The
Dimond community was a largely African-American neighborhood
that was immediately adjacent to one of Shell’s chemical plants.
Members of the community felt that they were subjected to very high
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II. COSTS AND BENEFITS OF ENVIRONMENTAL REGULATION
III. MANAGING FOR SUSTAINABILITY
A. Stages of Corporate Environmental Responsibility
IV. THE ECOLOGICALLY SUSTAINABLE ORGANIZATION
A. Sustainability Management in Practice
B. Environmental Auditing and Reporting
C. Environmental Partnerships
V. SUSTAINABILITY MANAGEMENT AS A COMPETITIVE
ADVANTAGE
A. Cost Savings
B. Brand Differentiation
C. Technological Innovation
D. Reduction of Regulatory and Liability Risk
E. Strategic Planning
Teaching Tip: Alternative Policy Approaches
Figure 10.2 summarizes some of the advantages and disadvantages of
alternative policy approaches to reducing pollution. Students could be
Teaching Tip: The Ecologically Sustainable Organization
Students could be asked to select a business with which they are
familiar and to make recommendations for steps the business could
take to become an environmentally sustainable organization.
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GETTING STARTED
KEY LEARNING OBJECTIVES
LO 10-1: Knowing the main features of environmental laws in the United States
and other nations.
LO 10-2: Understanding the advantages and disadvantages of different regulatory
approaches.
LO 10-3: Assessing the costs and benefits of environmental regulation.
Environmental laws have brought many benefits. Air, water, and land pollution levels
LO 10-4: Defining an ecologically sustainable organization and the stages through
which firms progress as they become more sustainable.
LO 10-5: Understanding how businesses can best manage for sustainability.
Effective environmental management requires an integrated approach that involves all
LO 10-6: Analyzing how effective sustainability management makes firms more
competitive and improves their financial performance.
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evidence shows a positive relationship between sustainability practices and stock
market and financial performance.
KEY TERMS
acid rain
cap-and-trade
chief sustainability officer (CSO)
clean economy
material sustainability issues
Superfund (CERCLA)
sustainability report
INTERNET RESOURCES
www.epa.gov/ Environmental Protection Agency
www.envirolink.org Environmental organizations and news
www.greenbiz.com Green Business Network
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www.sustainablog.org Blogs on green and sustainable businesses
www.theguardian.com/us/sustainable-business The Guardian [newspaper] coverage of
sustainable business
DISCUSSION CASE
HYDRAULIC FRACTURING – CAN THE ENIRONMENTAL IMPACTS BE
REDUCED?
Discussion Questions
1. What is hydraulic fracturing, or fracking, and what are its costs and benefits?
2. Using the classification system presented in this chapter, what type(s) of pollution
is (are) generated by fracking?
Teaching Tip: Health Risks of Fracking
Teaching Tip: Discussion Case Video
Two long-form videos that may be used in conjunction with this case
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.
3. Using the classification system presented in this chapter, what type(s) of
government regulation has (have) been used to address the concerns you
identified in question 1, and which do you think would be most effective?
4. What are the benefits to companies of moving beyond compliance and developing
more sustainable methods of fracking?
5. What factors might influence a company to use more or less environmentally
responsible methods of fracking?
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the
prior written consent of McGraw-Hill Education.