Discussion board reply

You will reply to 2 classmates. Every reply should be 200-300 words and should advance the conversation further by providing new ideas and insights, asking probing questions that get to the heart of critical issues, and share from one’s personal and professional experience.  For the purposes of citations, every reply must include:

• • At least 1 scholarly article;
  • A relevant business article (any article from a reputable business source—website, magazine, book, etc.—that discusses a relevant business/ethical issue)
  • Remember to provide new ideas, research, and analysis that create a clear dialogue with your classmate’s ideas.  Go beyond providing basic definitions to topics being discussed—that is information that should have been provided in the original post.  Your replies should not read as just another thread, nor should it merely regurgitate and restate what your classmate has said, or what you said in your own thread from the week before, for that matter. 

First DB Qustion

Introduction

Businesses definitely must be involve in the development of betterment of the environment about what is required by law in order to benefit the organization and its future, develop better relations with the partners in the society, and promote a better life for consumers, employees, and families of the community.        

Businesses’ Involvement

Sometimes businesses get involve in environmental activities due to the benefits attached to these types of activities. For example,  

“Many businesses have come to the conclusion that “going green” gives them a competitive advantage over other businesses.  Not only does it often same them money, but it can also gain new customers since environmental concerns are so popular among consumers” (Fisher, n.d.).

This is a very important factor on why businesses should be very involve in the protection of the environment that allow the organization to prosper thanks to the natural resources that the Lord let us utilize in this world. Many more Christians are involve and educated above the positive and negative consequences of “going green” (Fisher, n.d.).

Businesses’ Practices

            The businesses are practicing and witnessing more and more the benefits of programs such as recycling, impact of production on the environment, water waste. Businesses that actually support and develop this type of programs are ripping the benefits at many levels. In a recent study Fernando, Lawrence, Kelly, & Arunachalam (2015) found that “foreign-owned companies are more likely than Sri Lankan-owned companies to adopt environmental practices” (p. 875). This small action from foreign businesses provides credibility that otherwise the company will not possess in a foreign culture.

Government and Businesses Partnerships (GPB)’

Due to many issues such as pollution, natural environmental disasters, and negative press coverage organizations venture into businesses / government efforts in order to support and improve the current environmental situation on the ground as well as help their image with the community. An explanation of why the partnerships are important to businesses is that “GBPs are formed not only in response to public pressures, but also as a strategic means to seek opportunities related to environmental improvements” (Lin, 2014, p. 384). At times, a negative image of a business event that affects the environment forces the corporation to enforce and increase support for the GBPs.

Biblical Integration

Last, the bible states the following: “In everything I did, I showed you that by this kind of hard work we must help the weak, remembering the words the Lord Jesus himself said: ‘It is more blessed to give than to receive” (Acts 20:35, NIV). Businesses understand that many times as they get involve in volunteer work that helps employees, consumers, and the communities around its area; they receive more in the long run due to their good reputation and support from the community due to their support.

Conclusion

Research shows that businesses that support the environment and help the communities around the area to prosper are prosper as they involve in more activities as required by law. These bold moves by businesses to support the need of the community many times provides longevity benefits to these businesses and a positive image; in addition, government and businesses practices and “environmental partnerships” are popular for the last few decades due to the benefits that its provides to the communities. This powerful combination of money, policy, and power provides a wealth of benefits to no just the communities, but also to the businesses that get involved in this positive commitment to help the environment. (Lawrence & Weber, 2017, p. 222).

References

Bible Gateway. (1995). Retrieved from https://www.biblegateway.com/

Fernando, S., Lawrence, S., Kelly, M., & Arunachalam, M. (2015). CSR practices in Sri Lanka:

An exploratory analysis. Social Responsibility Journal, 11(4), 868-892. Retrieved from http://ezproxy.liberty.edu/login?url=https://search-proquest-com.ezproxy.liberty.edu/docview/1713922127?accountid=12085

Fischer, K. (n.d.). Part 3: Contemporary Issues. {PointeCast three}.

Lawrence, A. & Weber, J., (2017). Business & Society: Stakeholders, Ethics and Public Policy,

15th Ed., Chapter 2. New York, NY: McGraw-Hill Education.

doi:10.1007/s10551-013-2012-8

Lin, H. (2014). Government–Business partnership formation for environmental improvements.

Organization & Environment, 27(4), 383-398. doi:10.1177/1086026614554716

Second DB Question

Market-Based Mechanisms and Acid Rain

The Environmental Protection Agency (EPA) is the main environmental regulatory agency in the United States (Dhanda, 1999). After its inception, the EPA attempted to enforce environmental standards and regulations through an authoritarian approach called “command and control” (Lawrence & Weber, 2017). With command and control, “the government commands business firms to comply with certain standards and often directly controls their choice of technology” (Lawrence & Weber, 2017, p. 212). However, the EPA has identified that businesses are more inclined to change how they operate if there is an incentive. These incentive approaches are called “market-based mechanisms” and they have been proven to be the most effective for the EPA in reducing emissions problems such as acid rain (Lawrence & Weber, 2017). When combining market-based mechanisms with emission regulation, McLean (1999) states that, “a market-based approach to emission regulations gives businesses the flexibility they need to take advantage of numerous cost saving opportunities as multiple methods for reducing emissions competed with each other” (p. 662).

Acid Rain

Acid rain is detrimental to ecosystems, external structures, and human health. Lawrence and Weber (2017) state that, “acid rain is formed when emissions of sulfur dioxide and nitrogen oxide, by-products of burning fossil fuels…combine with natural water vapor in the air and fall the earth as rain or as snow” (p. 209). Although acid rain can occur naturally through volcanoes, the major contributors of acid rain are power plants, vehicles, and manufacturers (United States Environmental Protection Agency [EPA], 2017). For fish and wildlife, “acid rain water can leach aluminum from soil clay particles and then flow into streams and lakes. The more acid that is introduced…the more aluminum is released” (EPA, 2017). For plants and trees, “acidic fog and clouds…strip nutrients from trees’ foliage, leaving them…less able to absorb sunlight, which makes them weak” (EPA, 2017). Because of these detrimental effects to ecosystems, the EPA initiated the Acid Rain Program with market-based mechanisms as part of the Clean Air Act Amendments in 1990 (Dhanda, 1999).

Market-Based Mechanisms

In order for the EPA to implement their new Acid Rain Program, they introduced market-based mechanisms such as “tradable allowances, pollution fees and taxes, and incentives to achieve environmental objectives where possible” (Lawrence & Weber, 2017, p. 214). These mechanisms were, “based on the idea that the market is a better control than extensive standards that specify precisely what companies must do” (Lawrence & Weber, 2017, p. 213). Essentially, these approaches give businesses the freedom to choose what works best for them in terms of compliance. According to McLean (1999), “this new approach [tradable allowances] became known as ‘cap and trade’” (p. 661). Within the cap and trade program, businesses were authorized emission caps, and if their emissions fell below their authorized cap, they were allowed to transfer, or sell, allowances to businesses that are operating over their own cap. The ability to sell allowances, through the market-based approach, incentivized businesses to reduce their own emissions. Additionally, the fees associated with exceeding their allowance, $2,000 per ton, incentivized businesses to conform as well (Dhanda, 1999). Since its inception, the Acid Rain Program, and its cap and trade method, has been successful in reducing the amount of emissions in the United States through market-based mechanisms. “In the first 5 years of the Acid Rain Program, sulfur dioxide emissions…were reduced substantially and all sources were in compliance with respect to their allowable emissions” (McLean, 1995, p. 662).

Conclusion

            Proverbs 21:20 states, “Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it” (ESV). The Acid Rain Program, and its market-based mechanisms, has been successful because of its accountability requirements and its level of simplicity. McLean (1999) states that, “simplicity can be achieved if the government focuses on setting goals and measuring results, and…lets the market figure out how to meet those goals” (p. 665). Dr. Fischer (n.d.) also states that businesses are realizing that, “going green saves them money…because they are wasting less resources…and it also gives them a competitive advantage” (0:50). The required push by the EPA has delivered, “a significant cost savings over traditional environmental regulations and, at the same time, has led to a drop in…acid rain” (Dhanda, 1999, p. 263).

References

Dhanda, K. K. (1999). A market-based solution to acid rain: The case of the sulfur dioxide trading program. Journal of Public Policy & Marketing, 18(2), 258-264.

Fischer, K. (n.d.). Contemporary issues.

Lawrence, A. T., & Weber, J. (2017). Business and society: Stakeholders, ethics, public policy. New York, NY: McGraw-Hill Education.

McLean, B. J. (1999). Emissions trading: U.S. experience implementing multi-state cap and trade programs. Journal of Business Administration and Policy Analysis, 659-668.

United Stated Environmental Protection Agency. (2017). What is acid rain? Retrieved April 20, 2017, from https://www.epa.gov/acidrain/what-acid-rain