ChapterTenBusinesssEnvironmentalResponsibilities.pptVIP

Chapter TenBusiness’s Environmental Responsibilities Jerry Estenson Classic View of Ethics in Business Environment Maximize profit within the law Utilitarian Greater overall good of optimally satisfying consumer preference William Baxter Search for optimal level of pollution that would best serve society’s interests. Caveat Emptor (protect consumer safety and allow for individual bargaining No perfect “state of health” Allow market to balance risk and benefits Air safe enough to breath water safe to drink without costing to much Julian Simon Allow for human ingenuity and incentives to work Allow the market to work to balance supply and demand for resources Natural objects have no value but that placed on them by humans. The term “nature” has no normative connotation Preserving biological diversity is appropriate if it satisfies more consumer preference than the alternative Market serves four environmental goals Reducing pollution Conserve resources Preserve natural areas Support biological diversity Market Failures Cost of such things as pollution are borne by third parties No market exists to create a price for important social goods (protection of animals versus using threatened animals – Rhinoceros, tigers, elephants Buying is an individual decision consequences are borne by group Market does not respond until there is a major screw up Mark Sagoff – The Economy of the Earth Environmental issues not economic issues Confusion between wants/preferences: What one is willing to pay handled through a cost-benefit analysis Beliefs and Values Purely personal and subject Conflict resolved non-rational means Dialog and democratic processes Ignores the individual role of being both a consumer and a citizen What is business to do? Business needs to meet “Moral minimum” Bowie – cause no harm to humans, obey the law and refrain from unduly influencing environmental legislation Citizen are free to create laws and exercise consumer preference Issue with this Rx Underestimat