Analysis of The Problems of Sustainable Management - Essay Example

? SUSTAINABLE MANAGEMENT FUTURES The paper discusses a number of questions relating to issues in sustainable management. The issues discussed in the paper include the scientific evidence on climate change and its repercussions on organizations; the practice of whistle-blowing in organizations and finally, the disproportionate representation of women in the top management in the UK economy. Q1 Scenario 1 Mike Hulme cautions in his chapter "The performance of science" in his book Why We Disagree About Climate Change: Understanding Controversy, Inaction and Opportunity about the certainty of science. Discuss what these issues are. Mike Hulme explains the scientific consensus presented by the Intergovernmental Panel on Climate Change (IPCC) about the physical transformation in world climate due to global warming. According to Hulme, “Climate change is a scientific and a moral issue.” The process of generating scientific consensus has been largely driven by the desire to communicate climate science to policy users and to construct knowledge’ (Weingart, 1999). However, in doing so, the uncertainties have been downplayed (Van der Sluijs et al., 1998). Who are the IPCC and what is their function, and what are major findings of their report on global warming? IPCC is the Intergovernmental Panel on Climate Change (IPCC) which is a scientific intergovernmental body and its main aim is to assess human-induced climate change, analyse its impact and provide options for adaptation and mitigation. The two major findings of its reports are --- firstly, climate change is unequivocal and secondly, the past and future anthropogenic carbon emissions will contribute to global warming resulting in rising sea levels. Global warming a consequence of the earth’s natural life cycle and has nothing to do with the emission of greenhouse gases? Discuss. Anthropogenic warming and rise in sea level would continue for centuries due to the impact of the Earth’s natural life cycle, even if the Greenhouse gas concentration stabilizes. Carter et al. (2006) suggest that climate is not driven primarily by human use of fossil fuels. Researchers believe that the perception that nature is a resource at our disposal is the factor which shapes our view towards exhaustion of resources. Further, Christiansen (1994a, 1994b, 1994c) argues that the formation of climate based institutions based on IPCC, suites the union of some political, scientific and business interests. To what extent do you agree with the Stern Report? Stern believed a rise of five to six degree of temperature may be a real possibility due to climate change. The Stern Report concludes that the benefits of early actions on climate change outweigh the cost of not acting. The report points towards the potential impact of climate change on water, health, food production and environment. Some conclusions of the Stern Report can be justified, as not taking any steps to reduce climate change will definitely raise the cost of living. The report states the cost of not acting on climate change will be equivalent to at least 5% of the gross domestic product loss each year. What steps can organisations take reduce their carbon footprint? Organizations can reduce their carbon footprints by reducing carbon emissions through fuel combustion, transportation, process emissions and fugitive emissions. The carbon footprints can be reduced by reducing the consumption of fossil fuels, monitoring waste disposal, transportation and use of products. What are the main points in Peter Senge’s book “The Necessary Revolution”, chapters 1 and 2? Peter Senge’s book “The Necessary Revolution” (chapters 1 and 2) talks about a different kind of world where excess energy of one business can be used to heat another. The book imagines a world where the commercial buildings are regenerative and create more energy than they are using. The book imagines a world of sound products and processes where products are cost effective rather than wasteful. Corporations such as Cosco, Nike and BP, are forming partnerships with social justice organisations and environmental groups to ensure better livelihoods and safety of the Earth. The book explains the significance of implementing sustainability in the business world to integrate social, ecological and business world. The author later explains how a growing number of corporations are implementing and promoting sustainability in their organization. What problems and issues do businesses face now, and in the future concerning global warming and climate change issues? Do businesses in your opinion need to be involved with issues of sustainability, and if not, why not? It is not easy for organizations to maintain scientific integrity and quality control while retaining their political credibility, which is a classic twin goal of any organization (Guston, 2001) trying to integrate solutions for climate change and global warming. Furthermore, the cost of complexity, procedural bureaucracy, accountability and loss of transparency (Grundmann, 2007; Beck, 2009) can be observed while designing models based on global warming and climate change. In the current and future scenario, political credibility is based on scientific credibility (Beck, 2009). Businesses need to be involved with issues of sustainability and help build confidence to respond effectively to the greatest challenge of our current world. The organizations need to act to create a sustainable world for themselves and also the future generations. Define sustainability? How might duty and utilitarianism ethical perspectives influence the attitudes of businesses or individuals towards environmental sustainability. Use examples/cases to illustrate your answers wherever possible. Sustainability is the development that meets the requirements of the present without affecting the ability of future generations to meet their requirements. Basically, its erosion can affect people, and it includes concern for welfare of current and future generations. There is always a conflict between duty and utilitarianism. It is not possible to act ethically in many circumstances and even if everyone knows their duty; in certain set of circumstances there is no reason to act except the self-evidence in particular instance. For example - In the UK, the prosecution of organizations for neglect of duty has been difficult via criminal law. Utilitarian have a calculated approach towards ethics and business ethics, and duty generate conflict between moral decisions and profit seeking. Utilitarian require the presence of a powerful figure to calculate the source of happiness. Organisations need to exercise their environmental duty even if it coincides with their financial interests to promote sustainability. The utilitarian argue that the company has a duty to decide how to spend the tax revenue of the country. Sustainable development is linked to the ethical nature of an organization for which a concern for overall social welfare is required; this however is difficult in the world where there is a huge gap between the rich and poor. Even during the Industrial Revolution, Benjamin Franklin related cleanliness and industry with utilitarian motives. Using the data from Berners-Lee (2010) in Fisher, Lovell and Valero-Silva (2012), p.393 what activities could you take to reduce your personal carbon footprint? We need to follow a good corporate practice to reduce carbon footprints. As individuals are responsible for the ethical outcomes of company’s actions, we need to take responsibility for ourselves. We need to determine the course of action which gives best ethical solutions for a business case. To reduce personal carbon footprints, we need to form sound carbon management policies. Additionally, we need to develop social, cultural and behavioural changes to reduce personal carbon footprints. Why are some responses to carbon emission reduction ethically controversial, for example, off-setting and carbon trading Carbon trading and carbon offsetting are ethically controversial because there is a lack of a political will to tackle the issue. Carbon trading and carbon offsetting have the backing of industrial per pressure groups. Businesses are only interested in trading carbon in the market and getting higher rates for carbon offsetting. There exists a lack of ethical outlook towards these ambitious, environmentally sensitive and bold issues. Additionally, the decision on target reduction remains unresolved and the main intention is to drive-up the price of carbon credits instead of reducing the level of emissions while the agencies, government and pressure groups act to push the price up of carbon offsetting. The approach is highly calculative and does not offer a complete solution to encourage an ethical stand on global warming. It is difficult to see these methods stimulating the reduction in global warming. Fisher, Lovell and Valero-Silva refer to the drivers of sustainability as: The perception of danger; Systems thinking; Population growth and poverty; Consumerism; Recycling of waste; the role of the media; Climate change. Evaluate to what extent these have shaped the discourse concerning the debates about sustainability. Sustainability analyses the dangers of our current efforts on future. As the global population is increasing, the pressure on natural resources has increased. The main areas of concern are food, water, energy, transportation and the overuse of Earth’s natural resources, which has been further affected by waste and toxicity. According to Fisher, Lovell and Valero-Silva, the drivers of sustainability are – the perception of danger; Systems thinking; population growth and poverty; consumerism; recycling of waste; the role of the media and climate change. These factors have shaped the discourse concerning the debates on sustainability. There can be serious unintended consequence of our actions on the future but fortunately, it can be controlled by our actions. With the escalating growth of world population, the less fortunate nations are seeking their share to prosperity which shall result in exceeding the limits of our planet to sustain life. Consumerism is seen as the reason for breaking ethical principles. Consumerism promotes the use of natural resources that creates enormous quantities of waste and toxicity. The natural resources produce waste which can be recycled to promote technical recovery of raw materials and reuse of waste. The media plays a major role in marketing the concept of recycling and regenerating waste. Media can promote the stories of corporate actions on ethical practice and sustainability. It can make people aware of the quality of waste generated and invite ideas to reduce practices which are effecting the Earth’s environment. Also, media can act as a tool to change the perception that nature is at our disposal. References Boehmer-Christiansen S (1994a). A Scientific Agenda For Climate Policy? Nature 372: 400–402. Boehmer-Christiansen S (1994b) Global Climate Protection Policy: The Limits Of Scientific Advice – Part 1. Global Environmental Change 4(2): 140–159. Boehmer-Christiansen S (1994c) Global Climate Protection Policy: The Limits Of Scientific Advice – Part 2. Beck, S. (2009) ‘One Size Fits All?’ Can The IPCC Serve As Blueprint For Scientific Advice On Adaptation To Climate Change?, IOP Conference Series: Earth and Environmental Science 6: 392010. Carter, C. (2004) ‘Parmalat Subsidy Superior To CAP’, Financial Times, 25 February, Letters to the Editor: 18. Guston D (2001) Boundary Organizations in Environmental Policy And Science: An Introduction. Science, Technology and Human Values 26: 399–408. Grundmann, R (2007). Climate Change and Knowledge Politics, Environmental Politics 16(3): 414–432. Van der Sluijs, J (2005). Uncertainty As A Monster In The Science-Policy Interface: Four Coping Strategies, Water Science and Technology 52(6): 87–92. Weingart, P (1999). Scientific Expertise and Political Accountability, Paradoxes of Science in Politics, Science and Public Policy 26(3): 151–161. Scenario 2 What are De George’s six conditions of whistle blowing? De George’s conditions of permissive whistle blowing are as follows: 1. When the organization or employee causes substantial harm to person or public 2. When there is a serious threat to those who may get harmed 3. When the employee receives no satisfactory answer from superiors, and other channels within the company are exhausted The conditions for mandatory whistle blowing are as follows: 1. When the employee has documented evidence about his claims for public safety and the company’s product is likely to cause serious public harm 2. When there is strong evidence that proves making the information public will prevent serious public harm. Further , De George insists that the engineer cannot be morally obliged to go public unless he knows the way the information he is providing, will be put by the organization or government agency . Also there is no obligation to blow the whistle when the chance of success is low. Hence, the principles should be acted only when the chances of success are high. Define the following terms: Loyalty and integrity. What role do they play in terms of debates concerning whistle blowing? Loyalty is putting principles and relationships prior to personal gains. Integrity is acting ethically. Loyalty measures the quality of any relationship and loyal employees share their goals and have mutual interests of their organization. Although whistle blowers are treated negatively in an organization, it is believed that the internal whistle blowers in any organizations have strong loyalty and commitment towards their work, which makes them not to report about the wrongdoing outside the organization (Miceli and Near 1985; 1992a). The loyalty and integrity of employees who report illegal and unethical practices internally is high. Organizations are promoting such actions as it helps to reduce risks by taking steps on time which prevent legal actions and negative publicity. What is the Disclosure Act (1998) and what does it cover? The Public Interest Disclosure Act was created for supporting whistle blowing public, private and voluntary organizations in 1998. The act provides a protection to the whistleblowers that raise genuine concerns of victimization at the workplace. It gives protection to workers who raise concerns within the organization against malpractices. The act also covers the conditions where the disclosure of public interests outside the organization is protected. Is “Whistle blowing a positive or negative force within society” Whistle -blowing is relevant because every organization faces the risk of going wrong. Whistle blowers identify the risk and report it. Internal whistle blowing of wrongdoing by someone anonymous is considered significant for internal control mechanism of any organisation (Sarbanes-Oxley Act 2002). As compared to external whistle blowers, the internal whistle blowers benefit the organization members and stakeholders in the society (Miceli, Near and Schwenk, 1991; Hooks et al., 1994). However, the degree of seriousness of any wrongdoing in an organisation may force the observers to report externally for the wrongdoing (Near and Miceli, 1985). All in all, whistle blowing is a positive force within society, which is promoted by organizations. Using appropriate examples examine to what extent you agree that lying is permissible in business transactions and whether or not business can be ethical. Ethical issues in business are an identifiable problem, opportunity or situation, where the person may have to choose from several actions that can be ethical or unethical. In business, the issue may involve choice where monetary profits are considered against what a person considers appropriate conduct. The sole objective of any business is to maximize profits where it may not consider its social responsibility; although the activities of the organization may be legal. The National Business Ethics Survey (2007) found the incidence of observed misconduct on organization included lying to employees (20%) and lying to stakeholders (14%) Business ethics is a complex issue where certain actions may seem ethical at one place and non-ethical at another. For example -- giving a gift to a client during the first meeting may be considered a bribe in the US, however in Japan, it is considered impolite to not to bring any gift in the first meeting itself. In business transactions, the organization may lie to the employee by portraying overly aggressive financial or business objectives to motivate employees to work hard. Lying to clients, faking data and betraying the trust of client are examples of unethical and illegal activities. Ethical conduct should be promoted in business relationships as establishing trust and confidence will be very difficult for organizations having a reputation for acting unethically. Using appropriate literature to inform your discussion, what is the role of codes of ethics in organisations and for their employees? To what extent do you agree they are central for ethical leadership? Ethics is based on moral values which are established and applied within an organization. The code of ethics or the policies on ethics are a set of rules for promoting ethical behaviour in any organization. These are guidelines and principles which help employees to achieve organizational objectives and address risk in an ethical manner. They limit the case of misconduct, violation of rules and standards. These codes of ethics are central for ethical leadership. The idea of ethical leadership emerges from the Code of Engagement in NHS (2009) which promotes the culture of trust and responsibility in NHS. The role of ethical leadership is to motivate people to follow an internal sense of morality and ethics. Ethical leaders are competent, attentive, honest and selfless. Moreover, ethical leadership shifts the focus towards moral and ethical principles for motivating good behaviour and actions. To what extent would you agree that legal considerations are more important than ethical considerations? Give examples to illustrate and support your arguments. Legal and economic concerns have been addressed by organizations. Any activity in an organisation that is illegal as per government regulations can be reported, and steps can be taken before any legal action is initiated. Legal considerations are important because timely actions reduce the chances of negative publicity. However, the significance of ethical considerations cannot be ruled out because unethical organisation culture and actions can also results in negative publicity and legal actions. For example - Pfizer Inc., the drug company, produces a cholesterol reducing product named Lipitor, proven to lower cholesterol. Pfizer was however using an advertising strategy where Robert Jarvik, inventor of a kind of artificial heart, who was not a practising physician, was hired to promote the product. This raised a morality issue and the company pulled the ad before a federal investigation was set up into the matter. References Hooks, K.L., Kaplan, S.E. & Schultz Jr., J.J. (1994). Enhancing Communication to Assist In Fraud Prevention and Detection, Auditing: A Journal of Practice & Theory, 13, 86-117. Miceli, M.P., Near, J.P. & Schwenk, C.R. (1991). Who Blows the Whistle and Why? Industrial and Labour Relations Review, 45, 113-130. National Business Ethics Survey (2007). “An Inside View of Private Sector Ethics,” Ethics Resource Center, available at [Accessed May 14, 2013]. Sarbanes, P. & Oxley, M. (2002). Sarbanes-Oxley Act of 2002. US Congress, Washington, D.C. Q3 Scenario 3 Quotas to increase female representation on executive boards are a good idea – discuss. There are mixed evidences in favour of and against quotas for female representation on executive boards. The quotas system was implemented in Norway which led to hiring of less experienced boards, leading to deterioration in operating performance, consistency and a less capable board. However, promotion of women to senior management positions through the system of quotas can reduce gender discrimination and increase female leadership in influencing policy outcomes. This promotes gender diversity and inflow of new perspectives in board. What are the contents of the Lord Davies report concerning Women on Management Boards? The Lord Davies report concerning Women on Management Boards, states businesses are taking steps to find and appoint capable women to their boards. They see women on senior positions making good business sense, especially in the global market. More women in boardroom bring fresh perspectives, ideas, talent and broader experience for improved decision making, which makes a good business sense. The momentum of women making to the senior positions in boardroom is slow. Quotas are real possibility by 2015 if the companies do not meet the 25% target of having women in boardrooms. What are contents of the Institute of Leadership and Management Report “Ambition and Gender at work” report? The Institute of Leadership and Management Report “Ambition and Gender at Work” states the women representation is relatively low in senior positions in organizations. Women constitute 46% of the workforce but their presence on senior positions is 33% of managerial levels and 9.6% of board members in FTSE 250. A survey of people on managerial positions found women have low confidence and lower expectations (McKinsey & Company, 2007). More men are expected to take leadership roles as compared to women. Also, younger women had higher expectations as compared to older women. Women are mostly in functional roles and there are several barriers to women’s rise to senior positions due to “masculine corporate culture.” Explain the three waves of feminism: first wave; second wave and post-feminism. The first wave of feminism started by the end of 19th century and continued till the start of 20th century. This was a wave of new opportunities for women. Feminism was related to certain activities and Victorian America behaved “un-ladylike” challenging the cult of domesticity (Office for National Statistics, 2012). The second wave started in 1960s and remained till 1990s. It was marked by civil right movements and the growth of self consciousness in women groups across the world. The third wave of feminism is the post-feminism wave that started in mid-1990s. It promoted the concept of universal womanhood, gender and body. The post-feminism wave was about breaking boundaries where women have the freedom to choose adopting behavioural patterns. What are the main barriers to women occupying top executive positions in the workplace The representation of women in different sectors is different as there are many barriers to women reaching the senior management levels. A survey by World Economic Forum found general norms and practices and the typical corporate culture are major barriers for women in senior positions. Long working hours, “anytime - anywhere” work culture and double burden of work are major barriers (Office for National Statistics, 2012). Women have to handle domestic responsibilities and childcare that forces them to work part time and their male partners take up long working hour’s jobs. These responsibilities force women to take up low-paid part-time jobs and it becomes difficult for women to adjust to the fast moving industries. Aspirations, psychology and choices are other barriers to women occupying top executive positions in the workplace. The survey on working women reveals a low level of confidence and lower expectation in female employees. Women workers may not apply for a job until it meets all their needs while men may apply for such jobs (Carter et al, 2007). Why does poverty have an adverse effect on women Women are more vulnerable to poverty due to gender inequalities in household resource allocations and decision-making. Women are vulnerable due to illiteracy, marriage and childbearing responsibilities which may results in incomplete education leading to lower wages. Women account for growing number of world’s poor (Buvinic, 1997). Poverty has an adverse effect on female-headed households. It promotes inequalities and discrimination against women. Members of female-headed homes face difficulties in getting employment due to poor education or poorly paid jobs. Furthermore, women employment has increased but the average wage of women is lower than men. Hence, female employment is necessary for improving the financial conditions of poor (Buvinic, 1997). What are the advantages of having more women on management boards? Having more women on management boards will introduce fresh perspective, new ideas and a new board experience (Carter et al, 2007). Research shows a strong market growth can occur if a higher proportion of women occupy senior positions in teams. Research also shows that companies having women on higher management levels have outperformed their competitors (Carter et al, 2007). The main aim of any board is to increase profitability and inducing women in the board promotes gender diversity which helps in improving performance, accessing new talent pool, becoming responsive to the market and finally, achieving better corporate governance. References Buvinic, M. (1997). The Picture Of Poverty Contains Mostly Female Faces. Chicago Tribune, Nov, 16, Section 16, p. 10. Carter, Nancy M, Wagener, Harvey M ,Narayanan, Sriram (2007). “The Bottom Line: Corporate Performance and Women’s Representation on Boards Office for National Statistics (2012). Labour Market Statistics November 2012, Available at < http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/november-2012/index.html> [Accessed May 16, 2013] Office for National Statistics (2012). Annual Survey of Hours and Earnings, National Statistics Professional Boards Forum: Boardwatch Available at < http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/november-2012/index.html> [Accessed May 16, 2013] McKinsey & Company (2007). Women Matter: Gender Diversity, A Corporate Performance Driver, available at < http://www.europeanpwn.net/files/mckinsey_2007_gender_matters.pdf> [Accessed May 15, 2013] Read More