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Institu-

tion

Level

StateBusiness

and Industry

NGOs (civil

society)

Local/

Regional

Land use

SIPs (air) Agenda 21

Sponsorships

e.g., highway

adoption NIMBY

NationalRegulationInformationTrading

Technology

e.g., Walmart CFL bulbs

Participation

Partnerships

Media use

Supra-national

TreatiesGlobal Compact

Green labels

Seal hunts

Sweatshops

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Government

Civil SocietyPrivate Sector

•Regulatory•Economic•Cultural

•Political•Legal•Cultural

??????

Should firms protect the environment beyond their

legal responsibilities? Argument from business; argument from politics

Can they practically do so, and if so by what

means? A look at some corporate promises

Do they in fact behave in this way and, if not, how

can they be encouraged or constrained to do so? Global Compact as one answer

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Author of concept: John Elkington (1994)

Idea: Bottom lines should include three kinds of impacts Economic: profit (for shareholders) Social: people (for stakeholders) Environmental: planet (for humanity)

Assumption: Maximizing on all three is possible and desirable

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When are corporations accountable to consumers? rarely at the stage of product or process

development primarily through pricing, which does not

question purposes or social impacts of products

under conditions of economic inequality usually without formal process often ex post facto (via litigation after injury)

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Wal-Mart Environment: At Walmart, we know that being an

efficient and profitable business and being a good steward of the environment are goals that can work together.

McDonald’s Global Environmental Commitment: We are

committed to taking a “total life cycle” approach to solid waste…. In doing so, we will follow three courses of action: reduce, reuse and recycle.

DuPont Safety, Health and Environment: Creating

shareholder and societal value…while reducing our footprint throughout the value chain.

Monsanto The Monsanto Pledge: A new pledge was developed to

help fulfill the company’s promise for sustainable agriculture. This new pledge is made up of the following five elements – dialogue, transparency, sharing, sharing in benefits, and respect.

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Wal-Mart Former CEO Lee Scott on Sustainability

Q: How does this environmental commitment fit into Wal-Mart's mission as a

company? A: We've built our business on improving the quality of life for our

customers, associates, suppliers, and their communities. And we have innovated all the way down and up our value chain to increase the value we offer and to grow our business. Our environmental commitments fit perfectly into this model. In fact, innovation is essential if we are going to make good on our commitment to improve the quality of life for customers and people around the world. Like other innovations that have defined our business, empowering our people and trusting them with responsibility are key to our success.

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For two decades, CFLs lacked precisely what we expect from lightbulbs: strong, unwavering light; quiet; not to mention shapes that actually fit in the places we use bulbs. Now every one of those problems has been conquered. The bulbs come on quickly; their light is bright, white, steady, and silent; and the old U-shaped tubes--they looked like bulbs from a World War II submarine--have mostly been replaced by the swirl. Since 1985, CFLs have changed as much as cell phones and portable music players. C. Fishman, Dec.19, 2007

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Non-transparent objectives Where did Wal-Mart’s CFL initiative come from? Weakening deliberative democracy - role of

citizens? Devaluing public interest - lower value of life, of

resources? Lack of accountability

Conflict of interests Disparate global standards (“economic

imperialism”) Claims without substance (“greenwashing”) Science for hire (e.g., “tobacco science”)

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What is it? Not a regulatory policy or code of conduct Value-based platform with 9 principles

(human rights, labor, environment) Companies voluntarily commit to participate

Agree to publicly post steps taken to comply with principles (www.unglobalcompact.org)

Uses power of transparency Disseminates learning and good practices

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The Secretary-General asked world business

to: Principle 7: support a precautionary

approach to environmental challenges; Principle 8: undertake initiatives to promote

greater environmental responsibility; and Principle 9: encourage the development

and diffusion of environmentally friendly technologies.

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Objectives Getting beyond risk regulation to goals of

technology Agenda setting

Upstreaming of public inputs Science

Reforming intellectual property rules Transparency

“Engaging” publics in environmental accounting

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