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Chapter 09 – Business and Environmental Sustainability

Chapter 09Business and Environmental Sustainability

Multiple Choice Questions

16. The Triple Bottom Line approach involves measurin business success o! sustainable businesses and sustainable economic development in terms o!"

a. economic# leal# and environmental sustainability.

b. economic# ethical# and environmental sustainability.c. economic# leal# and competitive sustainability.

d. leal# competitive# and environmental sustainability.

$ns%er" b

&i!!iculty" Easy

Learnin 'b(ective" 09)01Topic" *ntroduction

Bloom+s Ta,onomy" -emember $$CSB" $nalytic

ae" /

2eedbac3" Sustainable business and sustainable economic development see3 to create ne%%ays o! doin business in %hich business success is measured in terms o! economic# ethical#

and environmental sustainability# o!ten called the Triple Bottom Line approach.

1. 4no%in %hat the !uture must be# creative businesses then loo3 bac3%ards to the present

and determine %hat must be done to arrive at that !uture. This process is 3no%n as"

a. bac3%ard interation. b. !orecastin.c. !or%ard interation.

d. bac3castin.

$ns%er" d&i!!iculty" Easy

Learnin 'b(ective" 09)01

Topic" *ntroductionBloom+s Ta,onomy" -emember

$$CSB" $nalytic

ae" /9

2eedbac3" Bac3castin e,amines %hat the !uture %ill be %hen %e emere throuh the !unnel.4no%in %hat the !uture must be# creative businesses then loo3 bac3%ards to the present and

determine %hat must be done to arrive at that !uture.

1. 5hich o! the !ollo%in is true o! the conservation movement

a. *t advocated that the natural %orld should not be used as a capital resource.

b. *t rearded natural resources as bein able to provide an ine,haustible supply o! material.c. *t recommended a more restrained and prudent approach to the natural %orld.

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d. *t arued aainst the natural %orld bein used to provide indirect bene!its.

$ns%er" c

&i!!iculty" EasyLearnin 'b(ective" 09)08

Topic" Business Ethics and Environmental >alues


ae" /1

2eedbac3" The conservation movement# the !irst phase o! modern environmentalism#advocated a restrained and prudent approach to the natural %orld.

19. The conservation movement"

a. rearded natural resources as bein able to provide an ine,haustible supply o! material. b. advocated that the natural %orld should not be used as a capital resource.

c. arued that the natural %orld %as valued as a resource# providin humans %ith both direct

bene!its and indirect bene!its.

d. believed that business does not ood reasons !or conservin natural resources.$ns%er" c

&i!!iculty" ediumLearnin 'b(ective" 09)08


Bloom+s Ta,onomy" -emember $$CSB" $nalytic? Ethics

ae" /1

2eedbac3" The conservation movement arued that the natural %orld %as valued as a

resource# providin humans %ith both direct bene!its and indirect bene!its.

80. -eminiscent o! the @@@@@ tradition# it is suested that some animals have the conitive

capacity to possess a conscious li!e o! their o%n and people have a duty not to treat theseanimals as mere ob(ects and means to their o%n ends.

a. 4antian

b. virtue ethicc. neoclassical

d. social %eb

$ns%er" a



Bloom+s Ta,onomy" -emember $$CSB" $nalytic? Ethics

ae" /A

2eedbac3" $ second approach arues that at least some animals have the conitive capacity to possess a conscious li!e o! their o%n. -eminiscent o! the 4antian ethical tradition# this vie%

asserts that %e have a duty not to treat these animals as mere ob(ects and means to our o%n

ends.






81. 5hich o! the !ollo%in is true o! a mar3et)based approach to resolvin environmental

challenes

a. *t is critical o! the narro%# philanthropic vie% o! corporate social responsibility CS-. b. *t asserts that limited resources should not be distributed in the mar3et.

c. *t suests that environmental problems deserve economic solutions.

d. *t conveys that resources are in!inite and !unible.$ns%er" c

&i!!iculty" Easy

Learnin 'b(ective" 09)0ATopic" Business+ Environmental -esponsibility" The ar3et $pproach

Bloom+s Ta,onomy" -emember

$$CSB" $nalytic

ae" //2eedbac3" &e!enders o! the mar3et approach contend that environmental problems are

economic problems that deserve economic solutions.

88. 5hich o! the !ollo%in is involved in environmental problems accordin to the mar3et) based approach to resolvin environmental challenes

a. Lac3 o! 3no%lede o! producin rene%able resources b. *nability o! businesses to produce and sell limited resources

c. Lac3 o! use o! appropriate substitutes !or limited resources

d. $llocation and distribution o! limited resources$ns%er" d

&i!!iculty" edium

Learnin 'b(ective" 09)0A

Topic" Business+ Environmental -esponsibility" The ar3et $pproachBloom+s Ta,onomy" -emember

$$CSB" $nalytic

ae" //2eedbac3" &e!enders o! the mar3et)based approach contend that environmental problems are

economic problems that deserve economic solutions. 2undamentally# environmental problems

involve the allocation and distribution o! limited resources.

8A. 5hich o! the !ollo%in %as suested by 5illiam Ba,ter

a. $n optimal level o! pollution can be achieved throuh competitive mar3ets.

b. Society can strive !or pure air and %ater at a very lo% cost.c. 2rom a strict mar3et economic perspective# resources are in!inite.

d. $ll resources can be replaced by substitutes.

$ns%er" a&i!!iculty" edium

Learnin 'b(ective" 09)0/


$$CSB" $nalytic

ae" //

2eedbac3" 5illiam Ba,ter arued that there is an optimal level o! pollution that %ould best

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serve society+s interests. This optimal level is best attained# accordin to Ba,ter# by leavin it

to a competitive mar3et.

8/. *n economic terms# all resources"

a. are in!inite because they can be replaced by substitutes.

b. are distributed !airly by the overnment.c. can be made available every%here.

d. are distributed e!!iciently in the mar3et.

$ns%er" a&i!!iculty" edium


Topic" Business+ Environmental -esponsibility" The ar3et $pproach

Bloom+s Ta,onomy" Dnderstand$$CSB" $nalytic

ae" //

2eedbac3" *n economic terms# all resources can be replaced by substitutes# and in this sense

resources are in!inite.

8. 5hich o! the !ollo%in e,plains the statement F$ll resources are !unibleGa. *t means that all resources can be reulated by the overnment.

b. *t means that all resources can be replaced by substitutes.

c. *t means that all resources cannot be duplicated.d. *t means that all resources cannot be recycled and reused.

$ns%er" b

&i!!iculty" Easy

Learnin 'b(ective" 09)0/Topic" Business+ Environmental -esponsibility" The ar3et $pproach


$$CSB" $nalyticae" //

2eedbac3" *n economic terms# all resources are F!unible.G They can be replaced by

substitutes# and in this sense resources are in!inite.

86. 5hich o! the !ollo%in is true about the mar3et)based approach to environmental

responsibility

a. ar3et !ailure occurs %hen no mar3ets e,ist to create a price !or important social oods. b. 2ree mar3et e,chanes can uarantee optimal results !or addressin issues related to

e,ternalities.

c. The mar3et)based approach al%ays ensures that %hat is ood and rational !or a collectiono! individuals is also ood and rational !or a society.

d. ar3ets can be very success!ul i! important ethical and policy Huestions and policy

decisions are le!t solely to the outcome o! individual decisions.$ns%er" a

&i!!iculty" edium



9)/7 801/ by c:ra%);ill Education. This is proprietary material solely !or authori<ed instructor use. =ot authori<ed !or sale or distribution in





Bloom+s Ta,onomy" Dnderstand

$$CSB" $nalytic

ae" /2eedbac3" ar3et !ailure occurs %hen no mar3ets e,ist to create a price !or important social

oods.

8. 5hich o! the !ollo%in %ays can lead mar3et !ailure to serious environmental harm

a. Creatin abundant mar3ets to create a price !or important social oods

b. a3in no distinction bet%een individual decisions and roup conseHuencesc. *ne,istence o! e,ternalities in the economic e,chane system

d. $ssinin property rihts to uno%ned oods

$ns%er" b




$$CSB" $nalyticae" /

2eedbac3" ar3et !ailures can lead to serious environmental harm i! no distinction is made bet%een individual decisions and roup conseHuences.

8. 5hich o! the !ollo%in causes inadeHuacy in ad hoc attemptsIinternali<in e,ternalcosts and assinin property rihts to uno%ned oods such as %ild speciesIto repair mar3et

!ailures

a. The bac3castin problem

b. The !unibility problemc. The biomimicry problem

d. The !irst)eneration problem

$ns%er" d&i!!iculty" edium



$$CSB" $nalytic

ae" /6

2eedbac3" *nternali<in e,ternal costs and assinin property rihts to uno%ned oods suchas %ild species are t%o responses to mar3et !ailures. But there are ood reasons !or thin3in

that such ad hoc attempts to repair mar3et !ailures are environmentally inadeHuate. 'ne

important reason is %hat has been called the !irst)eneration problem. That is# %e learnabout mar3et !ailures and thereby prevent harms in the !uture only by sacri!icin the F!irst

enerationG as a means o! ainin this in!ormation.

89. ar3ets can %or3 to prevent harm only throuh in!ormation supplied by the e,istence o!

mar3et !ailures. This is better 3no%n as the"

a. biomimicry e!!ect.

b. bac3castin problem.






c. !irst)eneration problem.

d. primary mar3et e!!ect.

$ns%er" c&i!!iculty" Easy



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ae" /62eedbac3" ar3ets can %or3 to prevent harm only throuh in!ormation supplied by the

e,istence o! mar3et !ailures. This is 3no%n as the !irst eneration problem.

A0. Be!ore environmental leislation %as enacted# the primary leal avenue open !oraddressin environmental concerns %as"

a. tort la%.

b. international la%.

c. public la%.d. criminal la%.

$ns%er" a&i!!iculty" Easy

Learnin 'b(ective" 09)0A

Topic" Business+ Environmental -esponsibility" The -eulatory $pproachBloom+s Ta,onomy" -emember

$$CSB" $nalytic

ae" /6

2eedbac3" uch o! the most sini!icant environmental leislation in the Dnited States %asenacted durin the 190s. Be!ore this leislation %as enacted# the primary leal avenue open

!or addressin environmental concerns %as tort la%.

A1. 5hich o! the !ollo%in is true about the reulatory approach to environmental challenes

a. *t overestimates the in!luence that business can have on establishin the la%.

b. The overnment established reulatory standards to o!!er compensation a!ter theoccurrence o! pollution or any other environmental harm.

c. *t shi!ted the burden !rom those threatened %ith harm to those %ho %ould cause the harm.

d. This approach ensures that business does not pursue any !inancial opportunities that cause

harm to the environment.$ns%er" c

&i!!iculty" Easy

Learnin 'b(ective" 09)06Topic" Business+ Environmental -esponsibility" The -eulatory $pproach


$$CSB" $nalyticae" /

2eedbac3" The environmental reulation enacted durin the 190s established standards that

e!!ectively shi!ted the burden !rom those threatened %ith harm to those %ho %ould cause the

harm. This is not a problem associated %ith the reulatory approach but one o! the chanes






that occurred a!ter it %as enacted.

A8. 5hich o! the !ollo%in is a problem associated %ith the reulatory approach toenvironmental challenes

a. The reulatory model assumes that economic ro%th is environmentally and ethically

benin. b. *! people rely on the la% to protect the environment# environmental protection %ill e,tend

beyond the la%.

c. Business passively responds to consumer desires and consumers are una!!ected by themessaes that business conveys.

c. =ational reulations are the only means to e!!ectively address international environmental

challenes.



Topic" Business+ Environmental -esponsibility" The -eulatory $pproach


ae" /2eedbac3" The most troublin problem !rom an environmental standpoint is that the

reulatory model assumes that economic ro%th is environmentally and ethically benin.

AA. 5hich o! the !ollo%in is true about the concept o! sustainable development and

sustainable business practice

a. *t suests a radically ne% vision !or interatin !inancial and environmental oals#

compared to the ro%th model that preceded it. b. $ccordin to this concept# only individuals %ho can prove that they had been harmed by

pollution can raise leal challenes.

c. $ccordin to this concept# an economic solution to compensation should be o!!ered !or theharm only a!ter the harm has been done.

d. *t !ocuses only on the costs that businesses incur in pursuin environmental oals.



Topic" Business+ Environmental -esponsibilities" The Sustainability $pproach


ae" /)/9

2eedbac3" The concept o! sustainable development and sustainable business practice suestsa radically ne% vision !or interatin !inancial and environmental oals# compared to the

ro%th model that preceded it.

A/. The three oals o! sustainable development that include economic# environmental# and

ethical sustainability are re!erred to as the"

a. tripartite oals.

b. three pillars o! sustainability.






c. three proned charter.

d. shoulders o! sustainability.

$ns%er" b&i!!iculty" Easy


Topic" Business+ Environmental -esponsibilities" The Sustainability $pproachBloom+s Ta,onomy" -emember

$$CSB" $nalytic

ae" /92eedbac3" These three oals# economic# environmental# and ethical sustainability# are o!ten

re!erred to as the three pillars o! sustainability.

A. 5hich o! the !ollo%in %as chared %ith developin recommendations !or paths to%ardeconomic and social development that %ould not achieve short)term economic ro%th at the

e,pense o! lon)term environmental and economic sustainability

a. The Blue%ash Commission

b. The Bindin Commissionc. The Barentsbur Commission

d. The Brundtland Commission$ns%er" d

&i!!iculty" edium

Learnin 'b(ective" 09)0Topic" Business+ Environmental -esponsibilities" The Sustainability $pproach


$$CSB" $nalytic

ae" /92eedbac3" The Brundtland Commission %as chared %ith developin recommendations !or

paths to%ard economic and social development that %ould not achieve short)term economic

ro%th at the e,pense o! lon)term environmental and economic sustainability.

A6. 5hich o! the !ollo%in is true o! the Brundtland Commission

a. *t %as named as the Brundtland Commission a!ter the place in =or%ay# %here the summit%as conducted !or the !irst time.

b. *t %as chared %ith developin recommendations !or paths to%ard economic and social

development at the e,pense o! underdeveloped and developin countries.

c. *t de!ined sustainable development as development that meets the needs o! the present%ithout compromisin the ability o! !uture enerations to meet their o%n needs.

d. *t critici<ed the report !rom the Dnited =ations+ 5orld Commission on Environment and

&evelopment published in 19.$ns%er" c

&i!!iculty" edium



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ae" /9






2eedbac3" The Brundtland Commission o!!ered %hat has become the standard de!inition o!

sustainable development. Sustainable development is development that meets the needs o! the

present %ithout compromisin the ability o! !uture enerations to meet their o%n needs.

A. 5hich o! the !ollo%in models does not di!!erentiate natural resources !rom the other

!actors o! production and does not e,plain the oriin o! resourcesa. The circular !lo% model

b. The triple bottom line model

c. The bilinear modeld. The sustainability model

$ns%er" a

&i!!iculty" edium



$$CSB" $nalytic

ae" /912eedbac3" The circular !lo% model does not di!!erentiate natural resources !rom the other

!actors o! production. This model does not e,plain the oriin o! resources.

A. 5hich o! the !ollo%in is true o! the circular !lo% model

a. *t di!!erentiates natural resources !rom the other !actors o! production. b. *t suests that to 3eep up %ith the economy# the population must ro%.

c. *t treats economic ro%th as both the solution to all social ills and also as boundless.

d. *t arues that the economy cannot ro% inde!initely.

$ns%er" c&i!!iculty" edium



$$CSB" $nalytic

ae" /912eedbac3" $n observation o! the circular !lo% model is that it treats economic ro%th as both

the solution to all social ills and also as boundless.

A9. The possibility that the economy cannot ro% inde!initely is simply not part o! the"a. three pillars o! sustainability approach.

b. circular !lo% model.

c. triple bottom line approach.d. bilinear model.

$ns%er" b




$$CSB" $nalytic






ae" /91

2eedbac3" $n observation about the circular !lo% model is that it treats economic ro%th as

both the solution to all social ills and also as boundless. To 3eep up %ith population ro%th#the economy must ro%. To provide !or a hiher standard o! livin# the economy must ro%.

To alleviate poverty# huner# and disease# the economy must ro%. The possibility that the

economy cannot ro% inde!initely is simply not part o! this model.

/0. $ccordin to economist ;erman &aly# neoclassical economics# %ith its emphasis on

economic ro%th as the oal o! economic policy %ill inevitably !ail to meet these challenes"a. i! it suests that the population o! the %orld needs to be controlled.

b. unless it reconi<es that the economy is but a subsystem %ithin earth+s biosphere.

c. unless it reconi<es that resources are in!inite.

d. i! it !ocuses on recyclin and reusin the by)products o! the production process.$ns%er" b

&i!!iculty" ;ard



$$CSB" $nalyticae" /91

2eedbac3" &aly arues that neoclassical economics# %ith its emphasis on economic ro%th as

the oal o! economic policy# %ill inevitably !ail to meet these challenes unless it reconi<esthat the economy is but a subsystem %ithin earth+s biosphere.

/1. $ccordin to the @@@@@ la% o! thermodynamics the conservation o! matterJenery#

neither matter nor enery can truly be Fcreated#G it can only be trans!erred !rom one !orm toanother.

a. !irst

b. secondc. third

d. !ourth

$ns%er" a&i!!iculty" ;ard




ae" /91

2eedbac3" The sustainable model reconi<es that the economy e,ists %ithin a !inite biospherethat encompasses a band around the earth that is little more than a !e% miles %ide. 2rom the

!irst la% o! thermodynamics the conservation o! matterJenery# %e reconi<e that neither

matter nor enery can truly be Fcreated#G it can only be trans!erred !rom one !orm to another.

/8. The model o! economy# in consistency %ith the second la% o! thermodynamics# implies

that"

a. the amount o! re)usable products decreases %ith an increase in production.






b. the economy e,ists beyond a !inite biosphere.

c. %astes are not produced at each stae o! economic activity.

d. the amount o! usable enery decreases over time.$ns%er" d

&i!!iculty" ;ard



$$CSB" $nalyticae" /91)/98

2eedbac3" The model o! the economy or Economic System as a subset o! the biosphere or

Ecosystem di!!ers !rom the circular !lo% model is several %ays. Enery is lost at every stae

o! economic activity. Consistent %ith the second la% o! thermodynamics entropy increased%ithin a closed system# the amount o! usable enery decreases over time.

/A. 'ver the lon term# resources and enery cannot be used# nor %aste produced# at rates at

%hich the biosphere cannot replace or absorb them %ithout (eopardi<in its ability to sustainli!e. These are %hat ;erman &aly calls the"

a. Feconomic limitations.G b. Fbac3castin e!!ect.G

c. Fbiophysical limits to ro%th.G

d. Fun)e,pandable boundaries.G$ns%er" c

&i!!iculty" edium



$$CSB" $nalytic

ae" /982eedbac3" 'ver the lon term# resources and enery cannot be used# nor %aste produced# at

rates at %hich the biosphere cannot replace or absorb them %ithout (eopardi<in its ability to

sustain human li!e. These are %hat &aly calls the Fbiophysical limits to ro%th.G

//. 5hich o! the !ollo%in is true o! the sustainability model in terms o! environmental

responsibilities

a. Sustainability need not be a lon)term stratey. b. The hue unmet mar3et potential amon the %orld+s developin economies

can only be met in sustainable %ays.

c. Sustainable practices lead to reduced cost savins.d. 2irms that !ollo% sustainable practices lose competitive advantae.

$ns%er" b


Topic" The FBusiness CaseG !or a Sustainable Economy


$$CSB" $nalytic






ae" /9A

2eedbac3" The hue unmet mar3et potential amon the %orld+s developin economies can

only be met in sustainable %ays.

/. 5hich o! the !ollo%in is true o! the sustainability model in terms o! environmental

responsibilitiesa. Sustainability reduces competitive advantae.

b. Sustainability is not a prudent lon)term stratey.

c. Sustainability is a ood ris3 manaement stratey.d. Sustainability leads to reduced cost)savins.

$ns%er" c

&i!!iculty" edium

Learnin 'b(ective" 09)0Topic" The FBusiness CaseG !or a Sustainable Economy


$$CSB" $nalytic

ae" /9/2eedbac3" Sustainability is a ood ris3 manaement stratey. -e!usin to move to%ard

sustainability o!!ers many do%nsides that innovative !irms %ill avoid.

/6. Estimates suest that %ith present technoloies# businesses can readily achieve at least a

!our!old increase in e!!iciency# and perhaps as much as a ten!old increase. This can beachieved throuh the !irst principle o! sustainability 3no%n as"

a. biomimicry.

b. eco)e!!iciency.

c. the cradle)to)cradle responsibility.d. the ta3e)ma3e)%aste model.

$ns%er" b


Topic" rinciples !or a Sustainable Business


ae" /9/)/9

2eedbac3" Eco)e!!iciency has lon been a part o! the environmental movement. F&oin more

%ith lessG has been an environmental uideline !or decades. Some estimates suest that %ith present technoloies alone# business could readily achieve at least a !our!old increase in

e!!iciency and perhaps as much as a ten!old increase. The !irst principle o! sustainability is

sometimes 3no%n as eco)e!!iciency.

/. 5hich o! the !ollo%in recommends cyclin the %aste o! one activity into the resource o!

anothera. The biomimicry principle

b. The cradle)to)rave model

c. The cradle)to)cradle model

d. The eco) e!!iciency principle






$ns%er" a




ae" /9

2eedbac3" *n an ideal situation# the %aste o! one !irm becomes the resource o! another# andsuch syneries can create eco)industrial par3s. Kust as bioloical processes such as

photosynthesis cycle the F%asteG o! one activity into the resource o! another# this principle is

o!ten re!erred to as biomimicry.

/. FClosed)loopG production see3s to interate %hat is presently %aste# bac3 into production.

*n an ideal situation# the %aste o! one !irm becomes the resource o! another# and such

syneries can create eco)industrial par3s. This principle is o!ten re!erred to as"

a. biomimicry. b. eco)e!!iciency.

c. biosynery.d. bac3cast.

$ns%er" a





2eedbac3" FClosed)loopG production see3s to interate %hat is presently %aste bac3 into

production. *n an ideal situation# the %aste o! one !irm becomes the resource o! another# andsuch syneries can create eco)industrial par3s. Kust as bioloical processes such as

photosynthesis cycle the F%asteG o! one activity into the resource o! another# this principle is

o!ten re!erred to as biomimicry.

/9. 5hich o! the !ollo%in suests that a business ta3es resources# ma3es products out o!

them# and discards %hatever is le!t over

a. The cradle)to)rave model b. The ta3e)ma3e)%aste approach

c. The Cradle)to)cradle model

d. The eco)e!!iciency principle$ns%er" b

&i!!iculty" Easy

Learnin 'b(ective" 09)09Topic" rinciples !or a Sustainable Business


$$CSB" $nalytic

ae" /9

9)1A7 801/ by c:ra%);ill Education. This is proprietary material solely !or authori<ed instructor use. =ot authori<ed !or sale or distribution in





2eedbac3" The evolution o! business stratey to%ard biomimicry can be understood alon a

continuum. The earliest phase has been described as Fta3e)ma3e)%aste.G Business ta3es

resources# ma3es products out o! them# and discards %hatever is le!t over.

0. 5hich o! the !ollo%in holds that a business is responsible !or the entire li!e o! its

products# includin the ultimate disposal even a!ter the salea. The cradle)to)rave model

b. The ta3e)ma3e)%aste appoach

c. The cradle)to)cradle modeld. The eco)e!!iciency principle

$ns%er" a

&i!!iculty" Easy



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ae" /92eedbac3" The Fcradle to raveG or Fli!e)cycleG model holds that a business is responsible !or

the entire li!e o! its products# includin the ultimate disposal even a!ter the sale.

1. Cradle)to)rave and cradle)to)cradle responsibilities are part o! the @@@@@ sustainable

business principle.a. eco)e!!iciency

b. bac3castin

c. biomimicry

d. ta3e)ma3e)%aste$ns%er" c

&i!!iculty" edium



$$CSB" $nalyticae" /99)00

2eedbac3" The evolution o! business stratey to%ard biomimicry can be understood alon a

continuum. The earliest phase has been described as Fta3e)ma3e)%aste.G Business ta3es

resources# ma3es products out o! them# and discards %hatever is le!t over. $ second phaseenvisions business ta3in responsibility !or its products !rom Fcradle to rave.G $ third phase

has been described as the Fcradle)to)cradleG responsibility# %hich holds that a business should

be responsible !or incorporatin the end results o! its products bac3 into the productive cycle.

8. 5hich o! the !ollo%in %ould hold a business liable !or round%ater contamination

caused by its products even years a!ter they had been buried in a land!illa. FBac3castG model

b. FEco)e!!iciencyG model

c. FTa3e)ma3e)%asteG model

d. FCradle)to)raveG model

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$ns%er" d

&i!!iculty" Easy




2eedbac3" Cradle)to)rave or li!e)cycle responsibility holds that a business is responsible !or

the entire li!e o! its products# includin the ultimate disposal even a!ter the sale. Thus# !ore,ample# a cradle)to)rave model %ould hold a business liable !or round%ater contamination

caused by its products even years a!ter they had been buried in a land!ill.

A. 5hich o! the !ollo%in holds that a business should be responsible !or incorporatin theend results o! its products bac3 into the productive cycle

a. Bac3castin

b. Cradle)to)cradle

c. Ta3e)ma3e)%asted. Cradle)to)rave

$ns%er" b&i!!iculty" Easy


Topic" rinciples !or a Sustainable BusinessBloom+s Ta,onomy" -emember

$$CSB" $nalytic

ae" /9

2eedbac3" Cradle)to)cradle responsibility holds that a business should be responsible !orincorporatin the end results o! its products bac3 into the productive cycle.

/. 5hich o! the !ollo%in responsibilities entail an incentive to redesin products so thatthey can be recycled e!!iciently and easily

a. Cradle)to)rave

b. Bac3castinc. Cradle)to)cradle

d. Eco)e!!iciency

$ns%er" c




ae" /9

2eedbac3" Cradle)to)cradle responsibility holds that a business should be responsible !orincorporatin the end results o! its products bac3 into the productive cycle. This

responsibility# in turn# %ould create incentives to redesin products so that they could be

recycled e!!iciently and easily.






. 5hich o! the !ollo%in is true o! a service)based economy

a. $ service)based economy tends to the consumers+ demand !or clothes cleanin# !loor

coverin# illumination# entertainment# and so !orth. b. $ service)based economy interprets consumer demand as a demand !or %ashin machines#

carpets# lihts# consumer electronics# and so !orth.

c. $ service)based economy %ea3ens the production e!!iciencies.d. $ service)based economy increases material and enery costs sini!icantly.

$ns%er" a





2eedbac3" $ service)based economy interprets consumer demand as a demand !or servicesI

!or clothes cleanin# !loor coverin# illumination# entertainment# cool air# transportation# %ord

processin# and so !orth.

Fill in the Blank Questions

6. The @@@@@ movement made the case that business had ood reasons !or conservin naturalresources# reasons that paralleled the rationale to conserve !inancial resources.

$ns%er" conservation

&i!!iculty" Easy

Learnin 'b(ective" 09)08Topic" Business Ethics and Environmental >alues



2eedbac3" Conservationists# supporters o! the conservation movement# the !irst phase o!

modern environmentalism# made the case that business had ood reasons !or conservinnatural resources# reasons that paralleled the rationale to conserve !inancial resources.

. $ @@@@@ approach to resolvin environmental challenes suests that environmental

problems are economic problems that deserve economic solutions.$ns%er" mar3et)based

&i!!iculty" Easy




2eedbac3" &e!enders o! the mar3et approach contend that environmental problems are

economic problems that deserve economic solutions.






. *n economic terms# all resources are F@@@@@#G that is# they can be replaced by substitutes#

and in this sense resources are in!inite.

$ns%er" !unible&i!!iculty" Easy



$$CSB" $nalytic

ae" //2eedbac3" *n economic terms# all resources are F!unible.G They can be replaced by

substitutes# and in this sense resources are in!inite.

9. Be!ore environmental leislation %as enacted# the primary leal avenue open !oraddressin environmental concerns %as @@@@@ la%.

$ns%er" tort

&i!!iculty" Easy

Learnin 'b(ective" 09)0ATopic" Business+ Environmental -esponsibility" The -eulatory $pproach


ae" /6

2eedbac3" uch o! the most sini!icant environmental leislation in the Dnited States %asenacted durin the 190s. Be!ore environmental leislation %as enacted# the primary leal

avenue open !or addressin environmental concerns %as tort la%.

60. The concept o! sustainable development can be traced to a 19 report !rom the Dnited =ations+ 5orld Commission on Environment and &evelopment 5CE&# more commonly

3no%n as the @@@@@ Commission.

$ns%er" Brundtland&i!!iculty" edium



$$CSB" $nalytic

ae" /9

2eedbac3" The concept o! sustainable development can be traced to a 19 report !rom theDnited =ations+ 5orld Commission on Environment and &evelopment 5CE&# more

commonly 3no%n as the Brundtland Commission# named !or its chair# :ro ;arlem

Brundtland.

61. The @@@@@ model does not di!!erentiate natural resources !rom the other !actors o!

production.$ns%er" circular !lo%

&i!!iculty" Easy









$$CSB" $nalytic

ae" /912eedbac3" The circular !lo% model does not di!!erentiate natural resources !rom the other

!actors o! production.

68. 5hile the reulatory and compliance model tends to interpret environmental

responsibilities as constraints upon business# the @@@@@ model is more !or%ard loo3in and

may present business %ith reater opportunities than burdens.$ns%er" sustainability

&i!!iculty" Easy


Topic" The FBusiness CaseG !or a Sustainable EconomyBloom+s Ta,onomy" -emember

$$CSB" $nalytic

ae" /98

2eedbac3" 5hile the reulatory and compliance model tends to interpret environmentalresponsibilities as constraints upon business# the sustainability model is more !or%ard loo3in

and may present business %ith reater opportunities than burdens.

6A. The ultimate oal o! @@@@@ is to eliminate %aste altoether rather than reducin it.

$ns%er" biomimicry&i!!iculty" Easy




ae" /9

2eedbac3" The ultimate oal o! biomimicry is to eliminate %aste altoether rather thanreducin it.

6/. The @@@@@ responsibility holds that a business should be responsible !or incorporatin theend results o! its products bac3 into the productive cycle.

$ns%er" cradle)to)cradle

&i!!iculty" Easy




2eedbac3" Cradle)to)cradle responsibility holds that a business should be responsible !or

incorporatin the end results o! its products bac3 into the productive cycle. Thisresponsibility# in turn# %ould create incentives to redesin products so that they could be

recycled e!!iciently and easily.

6. $ @@@@@ economy interprets consumer demand as a demand !or servicesI!or clothes






cleanin# !loor coverin# illumination# entertainment# cool air# transportation# %ord


$ns%er" service)based&i!!iculty" Easy


Topic" rinciples !or a Sustainable BusinessBloom+s Ta,onomy" -emember

$$CSB" $nalytic

ae" /962eedbac3" $ service)based economy interprets consumer demand as a demand !or servicesI

!or clothes cleanin# !loor coverin# illumination# entertainment# cool air# transportation# %ord


Essay Questions

66. E,plain ho% business understands the opportunities available in the ae o! sustainability.$ns%er" The environmental research and consultin roup The =atural Step uses an imae o!

a !unnel# %ith t%o converin lines# to help business understand the opportunities available inthe ae o! sustainability. The resources necessary to sustain li!e are on a do%n%ard slope.

5hile there is disareement about the anle o! the slope# there is %idespread consensus that

available resources are in decline. The second line represents areate %orld%ide demand#accountin !or both population ro%th and the increasin demand o! consumerist li!estyles.

Barrin an environmental catastrophe# many but not all industries %ill emere throuh the

narro%in !unnel into an era o! sustainable livin.


Topic" *ntroduction


ae" /)/9

6. Elaborate on the conservation movement.

$ns%er" By the late 19th century# humans came to reconi<e the sel!)interested reasons !or

protectin the natural environment. The conservation movement# the !irst phase o! modern

environmentalism# advocated a more restrained and prudent approach to the natural %orld.2rom this perspective# the natural %orld %as still valued as a resource# providin humans %ith

both direct bene!its air# %ater# !ood# and indirect bene!its the oods and services produced

by business. Conservationists arued aainst the e,ploitation o! natural resources as i! theycould provide an ine,haustible supply o! material. They made the case that business had ood

reasons !or conservin natural resources# reasons that paralleled the rationale to conserve

!inancial resources. The natural %orld# li3e capital# had the productive capacity to producelon)term income but only i! manaed and used prudently.

Besides the sel!)interested reasons to protect human li!e and health# the natural environment is

essential and valuable !or many other reasons. '!ten# these other values con!lict %ith the more

direct instrumental value that comes !rom treatin the natural %orld as a resource. The beauty






and randeur o! the natural %orld provide reat aesthetic and inspirational value. any

people vie% the natural %orld as a mani!estation o! reliious and spiritual values. arts o! the

natural %orld can have symbolic value# historical value# and such diverse psycholoicalvalues as serenity and e,hilaration. These values can clearly con!lict %ith the use o! the earth

itsel! as a resource to physically# as opposed to spiritually# sustain those %ho live on it.

&i!!iculty" ;ardLearnin 'b(ective" 09)08



ae" /1

6. &iscuss the mar3et)based approach to resolvin environmental challenes.$ns%er" $ mar3et)based approach to resolvin environmental challenes is reminiscent o! the

narro%# economic vie% o! corporate social responsibility CS-. &e!enders o! this mar3et

approach contend that environmental problems are economic problems that deserve economic

solutions. 2undamentally# environmental problems involve the allocation and distribution o!limited resources. 5hether %e are concerned %ith the allocation o! scarce nonrene%able

resources such as as and oil# or %ith the earth+s capacity to absorb industrial by)productssuch as C'8 or CBs# e!!icient mar3ets can address environmental challenes.

&i!!iculty" ;ard



$$CSB" $nalytic

ae" //

69. 5hat is an optimal level o! pollution

$ns%er" *n his %ell)3no%n boo3# People or Penguins: The Case for Optimal Pollution#5illiam Ba,ter arued that there is an optimal level o! pollution that %ould best serve

society+s interests. This optimal level is best attained# accordin to Ba,ter# by leavin it to a

competitive mar3et. &enyin that there is any FnaturalG or ob(ective standard !or clean air or%ater as this vie% %ould deny there is an ob(ective state o! per!ect health# Ba,ter beins

%ith a oal o! Fsa!eG air and %ater Huality# and translates this oal to a matter o! balancin

ris3s and bene!its. $ more reasonable approach is to aim !or air and %ater Huality that is sa!e

enouh to breathe and drin3 %ithout costin too much. This balance# the Foptimal level o! pollution#G can be achieved throuh competitive mar3ets.

&i!!iculty" edium

Learnin 'b(ective" 09)0/Topic" Business+ Environmental -esponsibility" The ar3et $pproach



0. &iscuss the challenes associated %ith the e!!icient mar3et approach to environmental

responsibilities.






$ns%er" $ variety o! mar3et !ailures involvin environmental issues point to the inadeHuacy

o! mar3et solutions. Since the FcostsG o! such thins as air pollution# round%ater

contamination and depletion# soil erosion# and nuclear %aste disposal are typically borne by parties Fe,ternalG to the economic e,chane e..# people do%n%ind# neihbors# and !uture

enerations# !ree mar3et e,chanes cannot uarantee optimal results.

$ second type o! mar3et !ailure occurs %hen no mar3ets e,ist to create a price !or importantsocial oods. Endanered species# scenic vistas# rare plants and animals# and biodiversity are

(ust some environmental oods that typically are not traded on open mar3ets. ublic oods

such as clean air and ocean !isheries also have no established mar3et price. 5ith noestablished e,chane value# the mar3et approach cannot even pretend to achieve its o%n oals

o! e!!iciently meetin consumer demand. ar3ets alone !ail to uarantee that such important

public oods are preserved and protected.

$ third %ay in %hich mar3et !ailures can lead to serious environmental harm involves adistinction bet%een individual decisions and roup conseHuences. 5e can miss important

ethical and policy Huestions i! %e leave policy decisions solely to the outcome o! individual

decisions. Because these are important ethical Huestions# and because they remain unas3ed

!rom %ithin mar3et transactions# %e must conclude that mar3ets are incomplete at best intheir approach to the overall social ood.

There are ood reasons !or thin3in that such ad hoc attempts to repair mar3et !ailures areenvironmentally inadeHuate. 'ne important reason is %hat has been called the !irst)eneration

problem. ar3ets can %or3 to prevent harm only throuh in!ormation supplied by the

e,istence o! mar3et !ailures. That is# %e learn about mar3et !ailures and thereby preventharms in the !uture only by sacri!icin the F!irst enerationG as a means o! ainin this

in!ormation. 5hen public policy involves irreplaceable public oods such as endanered

species# rare %ilderness areas# and public health and sa!ety# such a reactionary stratey is ill

advised.&i!!iculty" ;ard


Topic" Business+ Environmental -esponsibility" The ar3et $pproachBloom+s Ta,onomy" Dnderstand

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ae" /)/6

1. 5hat do de!enders o! the mar3et approach to environmental responsibilities state about

the ability o! economic mar3ets to achieve a sound environmental policy &iscuss i! their

responses are environmentally adeHuate.$ns%er" &e!enders o! a narro% economic vie% o! corporate social responsibility have

responses to the challenes associated %ith mar3et !ailures. *nternali<in e,ternal costs and

assinin property rihts to uno%ned oods such as %ild species are t%o responses to mar3et!ailures. But there are ood reasons !or thin3in that such ad hoc attempts to repair mar3et

!ailures are environmentally inadeHuate. 'ne important reason is %hat has been called the

!irst)eneration problem. ar3ets can %or3 to prevent harm only throuh in!ormationsupplied by the e,istence o! mar3et !ailures. 'nly %hen !ish populations in the =orth $tlantic

collapsed# !or e,ample# did %e learn that !ree and open competition amon the %orld+s !ishin

industry !or uno%ned public oods !ailed to prevent the decimation o! cod# s%ord!ish#

$tlantic salmon# and lobster populations. That is# %e learn about mar3et !ailures and thereby






prevent harms in the !uture only by sacri!icin the F!irst enerationG as a means o! ainin

this in!ormation. 5hen public policy involves irreplaceable public oods such as endanered

species# rare %ilderness areas# and public health and sa!ety# such a reactionary stratey is illadvised.

&i!!iculty" edium

Learnin 'b(ective" 09)0Topic" Business+ Environmental -esponsibility" The ar3et $pproach



8. List the various la%s related to overnmental reulation o! the environment. &escribe the

method o! addressin environmental concerns prior to the establishment o! la%s.$ns%er" :overnmental reulations %ere seen as a better %ay to respond to environmental

problems# compared to unreulated mar3ets. uch o! the most sini!icant environmental

leislation in the Dnited States %as enacted durin the 190s. The Clean $ir $ct o! 190

amended and rene%ed in 19# 2ederal 5ater ollution $ct o! 198 amended and rene%edas the Clean 5ater $ct o! 19# and the Endanered Species $ct o! 19A %ere part o! this

national consensus !or addressin environmental problems. Each la% %as oriinally enacted by a &emocratic Conress and sined into la% by a -epublican president. These la%s share a

common approach to environmental issues.

Be!ore this leislation %as enacted# the primary leal avenue open !or addressinenvironmental concerns %as tort la%. 'nly individuals %ho could prove that they had been

harmed by pollution could raise leal challenes to air and %ater pollution. That leal

approach placed the burden on the person %ho %as harmed and# at best# o!!ered compensation

!or the harm only a!ter the !act. E,cept !or the incentive provided by the threat o!compensation# D.S. policy did little to prevent the pollution in the !irst place. $bsent any

proo! o! nelience# public policy %as content to let the mar3et decide environmental policy.

Because endanered species themselves had no leal standin# direct harm to plant andanimal li!e %as o! no leal concern and previous policies did little to prevent harm to plant

and animal li!e.

&i!!iculty" ;ardLearnin 'b(ective" 09)0A

Topic" Business+ Environmental -esponsibility" The -eulatory $pproach



A. &escribe the challenes associated %ith the reulatory approach to environmentalconcerns.

$ns%er" Several problems suest that the reulatory approach to environmental concerns

%ill prove inadeHuate over the lon term. 2irst# it underestimates the in!luence that businesscan have in establishin the la%. The Corporate $utomotive 2uel E!!iciency C$2E

standards provide a ood e,ample o! ho% this can occur. $ reasonable account o! this la%

suests that the public very clearly e,pressed a political oal o! improvin air Huality by

improvin automobile !uel e!!iciency oals and thereby reducin automobile emissions.






;o%ever# the automobile industry %as able to use its lobbyin in!luence to e,empt liht

truc3s and SD>s !rom these standards.

Second# this approach also underestimates the ability o! business to in!luence consumerchoice. To conclude that business !ul!ills its environmental responsibility %hen it responds to

the environmental demands o! consumers is to underestimate the role that business can play in

shapin public opinion. The best e,ample %ould be the advertisin industry. $ssumin that business is not oin to stop advertisin its products or lobbyin overnment# this model o!

corporate environmental responsibility is li3ely to prove inadeHuate !or protectin the natural

environment.2urther# i! %e rely on the la% to protect the environment# environmental protection %ill e,tend

only as !ar as the la% e,tends. et# most environmental issues# pollution problems especially#

do not respect leal (urisdictions. Similarly# national reulations %ill be ine!!ective !or

international environmental challenes.2inally# and perhaps most troublin !rom an environmental standpoint# this reulatory model

assumes that economic ro%th is environmentally and ethically benin. -eulations establish

side constraints on business+s pursuit o! pro!its and# as lon as they remain %ithin those

constraints# accept as ethically leitimate %hatever road to pro!itability manaement chooses.&i!!iculty" ;ard

Learnin 'b(ective" 09)06Topic" Business+ Environmental -esponsibility" The -eulatory $pproach


$$CSB" $nalyticae" /)/

/. 5hy %as the Brundtland Commission !ormed

$ns%er" The concept o! sustainable development can be traced to a 19 report !rom theDnited =ations+ 5orld Commission on Environment and &evelopment 5CE&# more

commonly 3no%n as the Brundtland Commission# named !or its chair# :ro ;arlem

Brundtland. The commission %as chared %ith developin recommendations !or paths to%ardeconomic and social development that %ould not achieve short)term economic ro%th at the

e,pense o! lon)term environmental and economic sustainability. The Brundtland

Commission o!!ered %hat has become the standard de!inition o! sustainable development.FSustainable development is development that meets the needs o! the present %ithout

compromisin the ability o! !uture enerations to meet their o%n needs.G

&i!!iculty" edium




. &escribe ;erman &aly+s concepts o! sustainable development and the Fcircular !lo%model.G

$ns%er" Economist ;erman &aly has been amon the leadin thin3ers %ho have advocated

an innovative approach to economic theory based on the concept o! sustainable development.

&aly ma3es a convincin case !or an understandin o! economic development that transcends

9)8A7 801/ by c:ra%);ill Education. This is proprietary material solely !or authori<ed instructor use. =ot authori<ed !or sale or distribution in





the more common standard o! economic ro%th. Dnless %e ma3e sini!icant chanes in our

understandin o! economic activity# unless Huite literally %e chane the %ay %e do business#

%e %ill !ail to meet some very basic ethical and environmental obliations. $ccordin to&aly# %e need a ma(or paradim shi!t in ho% %e understand economic activity.

5e can bein %ith the standard understandin o! economic activity and economic ro%th

!ound in almost every economics te,tboo3. 5hat is sometimes called the Fcircular !lo%modelG e,plains the nature o! economic transactions in terms o! a !lo% o! resources !rom

businesses to households and bac3 aain.

T%o aspects o! this circular !lo% model are %orth notin. 2irst# it does not di!!erentiatenatural resources !rom the other !actors o! production. This model does not e,plain the oriin

o! resources. They are simply o%ned by households !rom %hich they# li3e labor# capital# and

entrepreneurial s3ill# can be sold to business. Services can be provided in many %ays and by

substitutin di!!erent !actors o! production. *n Simon+s terms# resources can there!ore betreated as Fin!inite.G

$ second observation is that this model treats economic ro%th as both the solution to all

social ills and also as boundless. To 3eep up %ith population ro%th# the economy must ro%.

To provide !or a hiher standard o! livin# the economy must ro%. To alleviate poverty#huner# and disease# the economy must ro%. The possibility that the economy cannot ro%

inde!initely is simply not part o! this model.&i!!iculty" ;ard



$$CSB" $nalytic

ae" /9)/90

6. E,plain ;erman &aly+s economic system model also 3no%n as the sustainable model.

$ns%er" 2irst# the sustainable model reconi<es that the economy e,ists %ithin a !inite

biosphere that encompasses a band around the earth that is little more than a !e% miles %ide.2rom the !irst la% o! thermodynamics the conservation o! matterJenery# %e reconi<e that

neither matter nor enery can truly be Fcreated#G it can only be trans!erred !rom one !orm to

another. Second# enery is lost at every stae o! economic activity. Consistent %ith the secondla% o! thermodynamics entropy increased %ithin a closed system# the amount o! usable

enery decreases over time. F5aste eneryG is continuously leavin the economic system and

thus ne% lo%)entropy enery must constantly !lo% into the system. Third# this model no

loner treats natural resources as an undi!!erentiated and une,plained !actor o! productionemerin !rom households. 2inally# it reconi<es that %astes are produced at each stae o!

economic activity and these %astes are dumped bac3 into the biosphere.




ae" /91)/98

. Brie!ly describe the reasons supportin the practice o! sustainability %ithin businesses.

9)8/7 801/ by c:ra%);ill Education. This is proprietary material solely !or authori<ed instructor use. =ot authori<ed !or sale or distribution in





$ns%er" 2irst# sustainability is a prudent lon)term stratey" business %ill need to adopt

sustainable practices to ensure lon)term survival. 2irms that !ail to adapt to the converin

lines o! decreasin availability o! resources and increasin demand ris3 their o%n survival.Second# the hue unmet mar3et potential amon the %orld+s developin economies can only

be met in sustainable %ays. Enormous business opportunities e,ist in servin the billions o!

people %ho need# and are demandin# economic oods and services. The base o! theeconomic pyramid represents the larest and !astest)ro%in economic mar3et in human

history. et# the sheer si<e o! these mar3ets alone ma3es it impossible to meet this demand

%ith the environmentally damain industrial practices. *t is obvious that ne% sustainabletechnoloies and products %ill be reHuired to meet these demands.

Third# sini!icant cost savins can be achieved throuh sustainable practices. Business stands

to save sini!icant costs in moves to%ard eco)e!!iciency. Savins on enery use and materials

%ill reduce not only environmental %astes# but spendin %astes as %ell. inimi<in %astesma3es sense on !inancial rounds as %ell as on environmental rounds.

2ourth# competitive advantaes e,ist !or sustainable businesses. 2irms that are ahead o! the

sustainability curve %ill both have an advantae servin environmentally conscious

consumers and en(oy a competitive advantae attractin %or3ers %ho %ill ta3e pride andsatis!action in %or3in !or proressive !irms.

2inally# sustainability is a ood ris3 manaement stratey. -e!usin to move to%ardsustainability o!!ers many do%nsides that innovative !irms %ill avoid. $voidin !uture

overnment reulation is one obvious bene!it. $voidin leal liability !or unsustainable

products is another potential bene!it. Consumer boycotts o! unsustainable !irms are also a ris3to be avoided.

&i!!iculty" ;ard


Topic" The FBusiness CaseG !or a Sustainable EconomyBloom+s Ta,onomy" -emember

$$CSB" $nalytic

ae" /9A)/9/

. 5hat are the eneral principles that %ill uide the movement o! businesses to%ard

sustainability$ns%er" The precise implications o! sustainability %ill di!!er !or speci!ic !irms and industries#

but three eneral principles %ill uide the move to%ard sustainability. 2irms and industries

must become more e!!icient in usin natural resources? they should model their entire

production process on bioloical processes? and they should emphasi<e the production o!services rather than products.

&i!!iculty" edium



$$CSB" $nalyticae" /9/

9. E,plain %ith an e,ample# ho% eco)e!!iciency can be implemented on an individual and a

business scale.






$ns%er" F&oin more %ith lessG has been an environmental uideline !or decades. 'n an

individual scale# it is environmentally better to ride a bi3e than to ride in a bus# to ride in a

!uel)cell or hybrid)po%ered bus than in a diesel bus# to ride in a bus than to drive a personalautomobile# and to drive a hybrid car than an SD>. Li3e%ise# business !irms can improve

enery and materials e!!iciency in such thins as lihtin# buildin desin# product desin#

and distribution channels.&i!!iculty" edium


Topic" rinciples !or a Sustainable BusinessBloom+s Ta,onomy" Dnderstand

$$CSB" $nalytic

ae" /9/)/9

0. E,plain the concept o! eco)e!!iciency# biomimicry and cradle)to)cradle responsibility.

$ns%er" Eco)e!!iciency has lon been a part o! the environmental movement. F&oin more

%ith lessG has been an environmental uideline !or decades. Some estimates suest that %ith

present technoloies alone# business could readily achieve at least a !our!old increase ine!!iciency and perhaps as much as a ten!old increase. Consider that a !our!old increase# called

F2actor)2ourG in the sustainability literature# %ould ma3e it possible to achieve double the productivity !rom one)hal! the resource use.

Kust as bioloical processes such as photosynthesis cycle the F%asteG o! one activity into the

resource o! another# this principle is o!ten re!erred to as biomimicry. The ultimate oal o! biomimicry is to eliminate %aste altoether rather than reducin it. *! %e truly mimic

bioloical processes# the end result o! one process e..# leaves and o,yen produced by

photosynthesis is ultimately reused as the productive resources e..# soil and %ater o!

another process plant ro%th %ith only solar enery added. The evolution o! businessstratey to%ard biomimicry can be understood alon a continuum. The earliest phase has been

described as Fta3e)ma3e)%aste.G Business ta3es resources# ma3es products out o! them# and

discards %hatever is le!t over. $ second phase envisions business ta3in responsibility !or its products !rom Fcradle to rave.G Sometimes re!erred to as Fli!e)cycleG responsibility# this

approach has already !ound its %ay into both industrial and reulatory thin3in.

Cradle)to)rave# or li!e)cycle# responsibility holds that a business is responsible !or the entireli!e o! its products# includin the ultimate disposal even a!ter the sale. Cradle)to)cradle

responsibility e,tends this idea even !urther and holds that a business should be responsible

!or incorporatin the end results o! its products bac3 into the productive cycle. This

responsibility# in turn# %ould create incentives to redesin products so that they could berecycled e!!iciently and easily.

&i!!iculty" ;ard



$$CSB" $nalyticae" /9/)/9

ethics business tbchap009

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