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Deforestation Case Study Analysis

1) Maxxam tripled the logging rate of Pacific Lumber's lands to meet interest payments, damaging the environment and threatening animal habitats. Environmentalists opposed this action. 2) Deforestation in Thailand contributed to severe flooding in 1988 that killed 350 people. While boosting GDP, rapid deforestation had negative economic and social consequences. 3) Both cases illustrate the tension between economic growth through deforestation and corporate social responsibility to protect the environment and communities. Maximizing profits through deforestation damaged habitats and communities.

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0% found this document useful (0 votes)
141 views18 pages

Deforestation Case Study Analysis

1) Maxxam tripled the logging rate of Pacific Lumber's lands to meet interest payments, damaging the environment and threatening animal habitats. Environmentalists opposed this action. 2) Deforestation in Thailand contributed to severe flooding in 1988 that killed 350 people. While boosting GDP, rapid deforestation had negative economic and social consequences. 3) Both cases illustrate the tension between economic growth through deforestation and corporate social responsibility to protect the environment and communities. Maximizing profits through deforestation damaged habitats and communities.

Uploaded by

Sky Khoo
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

CASE STUDY

11.4 FIGHT OVER THE REDWOODS

PRESENTED BY :
1. TAY CHIH JYH I09004397
2. LIM KAI YEN I09004128
3. KHOO SEE HOW I09003754
4. LIM FUI YONG I09002866
MAIN ISSUE: DEFORESTATION
 Removal of a forest or stand of trees
where the land is thereafter
converted to a non forest use.

 Issues from the case:


1. Economy
2. Animals Extinction
3. Social Corporate Responsibility
Main Issue: Deforestation
Plot: In order to meet huge interest payment, Maxxam
tripled the rate of logging activity and intended to log the
Headwaters forest. They plan to harvest timber known as
Owl Creek Grove, and damage the marbled murrelet
habitat.

Real Case: Forest cover in the Philippines has decreased


by 56 percent while lost 2.4 acres of hardwood forests
every minute in the past 50 years. Therefore, it causes
the species animals such as Tamarrow ( the wild
buffalo), and the eagle were almost extinction.
COMPARISON

Similarity:
1. Deforestation due to specific purpose.

2. Species animals losing their habitats and almost


extinction.

Differences:

The Fight Over the Philippines Case


Redwoods
Purpose To meet interest payment Country development and
exports to another country.

Situation Environmentalist oppose Government allowed


MORAL ARGUMENT AND MORAL THEORY

The Fight Over the Theory Philippines Case


Redwoods
Hurwitz is look at the high Government allowed
value of trees, therefore, he logging activity because it
take over the Pacific Lumber Egoism can increase the export of
and started to log. timber toward faster
development at that time.

Hurwitz must consider others Government should aware


in order to create the greatest the animals and people who
happiness to the society. Utilitarian are living those affected
areas.

As conclusion, Hurwitz is not fully unethical if he can reduce the number of


logging activity to .
SUB ISSUE 2: ECOSYSTEM

 Total ecological community, both living and


nonliving.
 Webs of interdependency structure ecosystems.

 A change in any one element can have ripple


effects throughout the system.

 Consequences of Ecosystem
1. Animals lose their habitats
2. Food chain being affected
3. Landslides
Plot: The logging of the redwood trees will affect the
animals and plants that depend not just on living trees
but also on dead because fallen redwoods that provide
wildlife habitat and reduce soil erosion

Real Case (Kalimantan): Forest clearing is threatening


236 plant species and 51 animal species in Kalimantan
with extinction. Orangutans, Owa monkeys and Tarsius
are the most endangered animals. They cutting down
forests to clear areas for palm oil plantations is the
biggest threat because it changes the total structure of the
area. The number of animals, especially orangutans, is
declining as fast as 9-10% a year, around 8,400
orangutans outside the protected forest will disappear
within three years.
COMPARISON

Similarity:
 Earn profits

 Animal lose their habitats

 Encroach on ecological balance

Differences:

The Fight Over the Kalimantan


Redwoods
Purpose Selling redwoods to others Deforest for palm oil
plantations, earn extra profit
by logging
Harmful to Coho Salmon, Murrelet, Orangutans, Owa monkey,
different Northern spotted Owl, Tarsius.
species Steelhead Trout.
MORAL ARGUMENT AND MORAL
THEORY
The Fight Over the Theory Kalimantan
Redwoods
Hurwitz is look for profit so Government allowed
that he cut the redwoods as logging activity for the palm
much as he can. Egoism oil plantation.

Hurwitz must consider others Government should aware


in order to create the greatest the animals that living in
happiness to the society. Utilitarian the forest.

As conclusion, Hurwitz is not fully unethical if he can reduce the number of


logging activity to .
SUB ISSUE 3: CORPORATE SOCIAL
RESPONSIBILITY
•Business would always have some allegations to the society.

•Company have little concerns for the customer, care nothing about the
deteriorating social order, have no concept of acceptable ethical behavior.

•However, a corporation should be held accountable for any of its actions that
affect people, their communities, and their environment.

•In addition, corporate social responsibility can be defined as the obligation that
companies have to develop and implement courses of action that aid in social
issues that impact society.
PLOT

 Pacific
Lumber was took over by Maxxam, which
is owned by Charles Hurwitz.

 Thereason Hurwitz took over Pacific Lumber was


because Pacific Lumber owned the largest single
stand of redwoods, which is the famous Headwaters
forest.

 environmentalistswere completely disagreeing on


Hurwitz’s action because it was irresponsible to the
social
REAL CASE : THAILAND

 Advance Agro Pulp Mill, a company in Thailand that


manufactured pulp and paper.
 Advance Agro’s plantations have displaced communities
and are the final stage of deforestation in east Thailand.
 The company took over the village’s land as for their
own purpose of plantation without responsible for the
villagers’ future.
Similarity:
 Deforestation rapidly increase due to the certain objectives

 Both companies are not social response to the society.

Differences:
  The Fight Over the Advance Agro Pulp Mill
Redwoods

Purpose Deforest for own benefits Deforest for expanding the pulp mill
business in Thailand.

Situation Environmentalist opposed Financial supported by Bangkok


Bank, Thai Farmers’ Bank, Krung
Thai Bank and the UK’s
Commonwealth Development
Corporation
MORAL ARGUMENT AND MORAL THEORY

Charles Hurwitz Theory Advance Agro Pulp Mill

Land owned by Targeting potentially profitable


Hurwitz. He was land for plantation and supported
selfishly motivated by Egoism by governments and investors.
the profits he was
going to earn.

Greater Happiness of Bring happiness and satisfaction


society should be to the residents of Thailand.
considered. Utilitarian Their health care and living area
should be concerned.
SUB ISSUE 4: ECONOMY EFFICIENCY

 Earn high profit through forest

 Trees can be used for furniture,


charcoal, paper and etc.

 Boost up the country’s GDP


Plot: Maxxam has tripled the rate of logging on Pacific
Lumber’s lands. Therefore, Maxxam can earn more
profit compared as Pacific Lumber as well as increase
economy growth. However, environmental will be
damaged by erosion, soil fall and floods. It leads to other
parties suffered from injury, disables or even died.

Real Case: Thailand is one of the highest rates countries of


deforestation among the Southeast Asia. Thailand
economy has been growing very rapidly after Second
World War, averaging 4.4 per cent increase in real GDP.
However, in the years of 1988, the devastating floods of
Southern Thailand killing the 350 people.
COMPARISO
N
 Similarity:
1. Increase in profit toward economic growth
2. Consequences of deforestation

 Differences:

The Fight Over the Thailand Case


Redwoods
1. Purpose To meet the payment To economic growth

3. Situation Environmentalist Intervention Flood killing 350


people
MORAL ARGUMENT AND MORAL
THEORY

The Fight Over the Theory Thailand Case


Redwoods

Hurwitz must make a Government must


decision which is create emphasize on
greater human happiness maximization of happiness
to the society ultimately determines
Eliminate the narrow Utilitarian view of what is fair and unfair.
views and do the actions economic distribution Therefore, they can
accepted by universal as choose the best economic
well as considered the arrangements to promote
long run effect of an act the greatest happiness.

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