As the society advances and expands, businesses are faced with challenges of maintaining social responisibility through the enviroment while at the same time generate profits for their shareholders. Can a business achieve both goals without jeopordizing their economic value? In order to answer this we analyze three factors that directly affect green business strategies.
Ethical consideration – Ethical consideration happens on four different levels: personal, economical, societal/enviromental, and technological. Throughly analyzing each level of consideration creates a much better understanding of different morals and values in our society.
Ethical Theories – Can ...view middle of the document...
Events such as the BP oil spill in 2010, has made it so that business leaders can no longer afford to execute poor decisions, take shortcuts, or make devastating mistakes that jeopardize the beauty of our Earth and all of its inhabitants. According to an extensive report conducted by Trucost, commissioned by the United Nations Environmental Program (UNEP) “the estimated annual environment costs from global human activity equals to US$6.6 trillion dollars, 11% of global GDP in 2008; if trends continues, the projected environmental cost will be $28.6 trillion by 2050.” (Trucost Plc, 2010)
What factors directly affect business leaders decision towards a greener business? Can businesses maintain a profitable position while incorporating a green business strategy? These are some of the questions that this paper aims to address as we analyze the on-going eco-friendly challenges in the business world. The factors that will explore are ethical considerations, ethical theories, and decision-making.
Ethical guidelines are determined by our individual values, morals, and beliefs. Every individual has their own understanding of the code of ethics. Furthermore, because we are so diversified in our society, we must pay close consideration to the different levels that are fundamental to humankind as a whole. The different levels of consideration we will analyze while focusing on the aspect of green business is: personal, economical, societal/enviromental, and technological.
Personal and Economical
The personal level of consideration on the issue of the green business is parallel to our own individual mindset. There are many different outlooks about converting a business into an eco-friendly enterprise, especially from the perspective of both the investor and our community.
According to “Enviroment, Ethics, and Business” by R. Edward Freeman, Jeffrey G. York, and Lisa Stewart, there are five mindsets framework that impact green business on the personal consideration level: Regulatory Mindset, Cost/Benefit Mindset, Constraint Mindset, Sustainable Development Mindset, and Greenwashing Mindset.
Regulatory mindset – This concept considers the government as the primary factor responsible for creating regulations and educating the public on enviromental issues in regards to business operations. There has been a huge increase in government regulations over the years, but is the government solely responsible for the enviroment? Or, is it also up to us (the society) to take innitative to pursue a greener future? Freeman, York, and Stewart believe that the regulatory mindset may delay the recognition of real problems, and that we cannot predict the future to regulate everything. (R. Edward Freeman, 2008)
Cost/Benefit mindset – This concept attempts to balance the scale of the enviroment in terms of costs vs. benefits. In other words, should businesses only take action if only the benefits outeight the costs? R. Edward et al,...