Business And The Enviornment 11Pager Essay

, Research Paper

The relationship between corporations and the environment is a tumultuous one. Corporations have abused and violated the environment for generations. These actions have now become unacceptable in our present society. There is growing concern for our natural resources; the world s forests, waterways, and air are noticeably tainted. In the last twenty years, the U.S. has become more vigilant in recognizing and passing acts to attempt to regulate and purify our environment. Between 1938 and 1986, twelve acts regarding business and the environment have been passed. The Food and Drug Administration established the first act in 1938. The Federal Food, Drug and Cosmetic Act was passed to regulate food and drug additives. The Delaney Clause in 1958 added the prohibition of the sale of foods containing human or animal carcinogens to the original act. The Wilderness Act of 1964 outlawed the development of wilderness areas and gave new procedures for the appointment of new protected areas. In 1969, the National Environment Policy Act created a nation wide environmental policy and the Council on Environmental Quality. A year later, the first legislation passed for the Clean Air Act. It was relegislated in 1977 and again in 1990. This act established the Environmental Protection Agency (EPA) to control the enforcement of air quality standards. In 1972, both the Federal Insecticide and Rodenticide Act and the Clean Water Act were passed. They were relegislated in 1988; and 1977, 1981, and 1987 respectively. FIFRA requires the registration of every pesticide, certification and preconsumer testing. The Clean Water Act established standards for wastewater treatment, sludge management, and set discharge limitation and water quality standards. The Endangered Species Act of 1973 protects animals that are threatened or endangered. Relegislated in 1984, the Resource Conservation and Recovery Act of 1976 standardized the manufacturing, transportation, storage, treatment and dumping of solid and hazardous waste. Also passed in 1976 was the Toxic Substances Control Act, which delegates the EPA control over the assessment of risks involved in chemicals and recordkeeping. 1980 saw the passing of the Comprehensive Environmental Response, Compensation, and Recovery Act, which brought liability upon the owners, transporters and sources of hazardous waste, and established the Superfund to help with cleanup costs. The Superfund Amendment and Reauthorization Act requires companies to publicly disclose all chemical and toxic hazards in their operations. These acts have often left companies feeling as though their hands were tied. The Clean Air Act by 1989 managed to reduce air pollution to two thirds of the 1970 s level. The Act achieves this through the use of permits to regulate the construction and production of major sources of pollution. The act specifies that a major source is one that emits 100 tons or more per year. This means that a factory can be built that emits 90 tons of pollution per year with out a permit. A permit is also necessary if you want to increase an existing factory that emits 100 tons by 25 tons. This act has its shortcomings. For example, a university wants to expand its heating plant. The administration has two options either modify the existing plant or build a new plant. The university s heating plant emits 100 tons of pollution, this means that they will need a permit. The modification would normally be more cost effective because it is a smaller job and would not take as much time to accomplish. The practicality of the situation would force the building of a new heating plant that is to be smaller than 100 tons of pollution. The reason for this is the delay, cost and uncertainty of the permitting process, which would drive the over all cost up. It is probable that the modification of the single plant would ultimately produce less pollution that the two separate plants. The SARA, or Superfund Amendment and Reauthorization Act passed by the government as an addendum to the Comprehensive Environmental Response, Compensation and Recovery Act specifies that companies make public details of their storage and handling techniques. All firms manufacturing 300 specific chemicals must abide by this. Firms with ten or more full time workers must painstakingly report must report all chemicals released routinely. The quantity of the specific chemicals released into water, soil, and air, along with a listing of waste treatment efficiency must be made available to the surrounding community. It is difficult for companies to cite specific waste treatment facilities, for not many true ones exist. The public demands total removal of hazardous wastes and at the same time that the goods be produced with the same efficiency and quality. The Clean Water Act is a system of minimum national standards for the discharge of toxins and hazardous waste into the environment. The rules given call for complicated technical decisions to be made by businesses. The fact that a company must comply with all new standards within a year causes for much loss and payment of fines. These acts do have negative effects upon businesses. However, corporations are finding advantages to environmentally sound procedures. Not only are environmentally friendly policies popular with consumers, but they can also save businesses a great deal of money. As the acts and their socially conscious agenda become more assimilated into the business world, business is working to gain advantage and minimize disadvantages. Many case studies support this idea. Corporations have discovered that they can often use environmental friendly programs and products to produce more profits. An excellent example of this is Ben and Jerry s ice cream company. The company began by making all natural ice cream on a very small scale in Burlington, Vermont in 1978. Natural food held great appeal in Vermont, even before it held nation-wide popularity. Soon, their product became extremely popular. Ben and Jerry s all natural products provided the first benefits of environmental-friendly policies for the company. Later, when two large manufacturing facilities were built in Waterbury and St. Albans Vermont, they decided to treat the waste created form their processing with a prototype solar aquatic treatment system. Like a wetland, the system combines solar energy with plants, algae and microbes to break down wastewater. Three “green teams” strive to ensure compliance with their priorities of managing their waste, conserving energy, practicing sustainability, finding renewable energy sources and forming environmentally positive community programs. Besides these positive actions, which attract many customers, other environmentally correct actions save Ben and Jerry s money. Instead of sending massive amounts of waste to the landfill, the company implemented procedures that minimize waste and reduce cost simultaneously. Cardboard waste is baled and sold or recycled, which saves the company $17,400 annually. Office employees must follow a recycling program to save energy, cost and trees. $235,000 a year is saved in recycling or reusing plastic buckets. As much as $250,000 a year will be saved from new energy saving devices incorporated by the company. There are environmentally positive aspects in every part of the company which prove Ben and Jerry s to be unhypocritical, for the environmentally friendly image they sell their products. Since their total sales were $97 million in 1991, it seems that this philosophy works and brings about a large customer base. Other companies have found profit through environmentally safe Merck & Co., a worldwide health product corporation for animals and humans, and specialty chemicals balances profit and responsibility even in the face of SARA. To maintain an inner accordance, Merck runs its operations with the same regard for health and well being that its products have. Merck has declared,