Social Responsibility and
Good Governance
CHAPTER 7
Business and Ecology
Chapter 7.
Objectives:
examine the activities of business that are
detrimental to the environment and the
ecosystem
Understand our moral obligation to protect and
preserve the environment as managers and
business leaders
Establish a strong justification, by way of
philosophizing our commitment to protect nature
and Mother Earth
Analyze the dangers and the detrimental effects
of environmental abuse
The Dimensions of Ecological
Problem
Population explosion
Depletion of Natural Resources
Pollution of the Environment
The Destruction of the Earth
1. Population explosion
1650 (.5B)
1900’s (1.7B)
1960 (3B)
2000 and beyond (7.2B)
Philippines 101,216,497
(http://www.worldometers.info/world-
population/philippines-population/)
http://www.worldometers.info/world-population/
The earth and its resources are
limited.
If human population on earth
continues to grow the whole race will
soon come to a point where the
earth’s space and resources will be
used up which will result to famine,
poverty and more pollution.
Planet earth will be unlivable for
human beings.
2. Depletion of Natural
Resources
The growth of this problem worldwide is
largely due to activities of business.
Resources begun to become less available
because of technological advancement
although people benefit from the use of
natural resources, humanity will one day go
back to a life centered on small-scale
farming.
Aluminum, for example, was depleted in
2003, Zinc in 1990, Copper in 1993, iron
and the oil reserves are projected to be
depleted in 2025.
3. Pollution of the
environment
Wastes coming from increased population
60% of pollution in Metro Manila comes from
Motor Vehicle (DENR)
50 rivers are heavily polluted out of 400 and
10 are virtually dead
Garbage is also a big problem; 3,000 tons of
garbage are being collected in Metro Manila
alone
Destruction of Ozone layer
Unsuitable for decent human living
4. Destruction of the Earth
Only 20% of our forest remains intact
in the Philippines
500,000 hectares mangroves only
130,000 hectares remains
More than 90,000 sq. kms. of our land
are in such distressing condition
because of the soil erosion that they
can no longer support cultivation,
farming and gardening.
Traditional Attitudes of Business
Towards the Environment
Creation of products and services to satisfy
the needs
Traditional beliefs of Businessmen
1. The world is “free and unlimited”
2. Pursuit of private interests at
the expense of common good
created an imbalance between
individual and social cost (e.g.
not treating chemical waste
properly).
Environmental Ethics
1. Man has moral obligation to
preserve the environment (do good
avoid evil)
2. Man has primary duty to take care
of the environment (man’s survival
is interrelated with that of the
environment)
3. Man must submit to the demands of
natural law (man must fit his
technology with his ecology)
The Moral and Social Obligations
of Business to the Environment
Business cannot use with impunity
the different categories and
resources, whether living or
inanimate, simply as they will;
Business must realize that the natural
resources are limited
Business must comprehend the evil
effects of industrial development on
the quality of life.
Reasons for SR of Business
towards the Environment
Business is socially responsible to the
environment because it is an important part of
the macro-ecological system.
Business depends on the natural environment
for its operations (e.g. energy, raw materials
and waste disposal)
Business must take into account the ethical
issues when it relates with environment (e.g.
short term profit vs long term gain of the
environment)
The Valdez Principles
A list of principles that explains how we should
deal with the environmental issues.
Formulated in 1990 after a major oil spill from
Exxon tanker – The Exxon Valdez which run
around near Valdez, Alaska on March 24, 1989
and spilled 240,000 barrels – 11 million gallons
of crude oil which eventually covered 2,600
square miles of Prince William Sound and the
Gulf of Alaska. Although the Exxon spill was not
the largest ever, it was one of the worst in terms
of environmental damage. The effects of the spill
can still be seen10 years after the wreck.
The Valdez Principles
Protection of the biosphere
Minimize or eliminate the release of any
pollutant.
Safeguard habitats in rivers, lakes,
wetlands, coastal zones and oceans.
Minimize contributions to the greenhouse
effect, depletion of ozone layer, acid rain
and smog.
The Valdez Principles
Sustainable use of natural resources
Make sustainable use of natural
resources.
Conserve non-renewable natural
resources through efficient use and
planning.
Protect wildlife habitat, open spaces and
wilderness while preserving the
biodversity.
The Valdez Principles
Reduction and disposal of waste
Minimize creation of hazardous waste
Recycle materials
Dispose of waste through safe methods
The Valdez Principles
Wise use of energy
Use environmentally safe and
sustainable energy source
Invest in improved energy and
conservation in our operation
Minimize energy efficiency of products
we produce and sell
The Valdez Principles
Risk reduction
Minimize the environmental, health and
safety risks to our employees and in the
communities where we operate.
The Valdez Principles
Marketing of safe products or services
Sell products and services which have
minimum adverse environmental impact
and safe for consumption.
Inform consumers of the environmental
impact of our products and services.
The Valdez Principles
Damage compensation
Take responsibility for any harm we
cause to the environment while making
every effort to fully restore the
environment.
Compensate those who are adversely
affected.
The Valdez Principles
Disclosure
Disclose to our employees and to the
public incidents relating to our
operations that cause environmental
harm.
Take no action against employees who
report any condition that creates a
danger to the environment.
The Valdez Principles
Environmental directors and
managers
Commit management resources to
implement the Valdez Principles.
Establish a Committee of Board of
Directors for environmental affairs.
The Valdez Principles
Assessment and annual audit
Conduct and make public an annual self-
evaluation of our progress in
implementing the Valdez Principles.
Work towards the timely creation of
interdependent environmental audit
procedures to be completed every year
and to be made available to the public.
