Global Risks Climate change is something affecting all countries, with particular relevance to low-lying coastal regions. Island nations in the Indian Ocean, for example, and the dozens of nations in the Caribbean are at risk of inundation not just from the constantly rising sea levels from melting glacial ice in polar regions. Climate change leads to warming ocean waters, which in turn lead to more frequent and more severe storms. In addition to island nations, low-lying coastal regions on mainland continents will also become increasingly vulnerable to the effects of climate change. Climate change does impact other regions of the globe and other countries, as weather patterns impact precipitation levels, which could lead to some regions experiencing more severe drought conditions and others more flooding; some regions might incur greater damage from forest fires too, due to the persistent lack of precipitation. Therefore, the risks of climate change are genuinely global.

In addition to climate change, pollution is a major environmental risk affecting population health throughout the world. Related to climate change, pollution refers to the carbon dioxide emissions that result from business practices such as factory emissions and the emissions from the organization’s transportation fleet. The carbon dioxide emissions could be curtailed with alterations to business practices, and collaborative partnerships with logistics firms. Similarly, organizations that pollute directly are adversely impacting public health in their communities. Environmental concerns like poor air quality and poor water quality are evident almost everywhere in the world, but especially in countries with poor regulatory environments and poor governance, including the United States, China, India, and Brazil. Generally, any nation with a robust manufacturing base will reveal underlying culprits contributing to environmental degradation, climate change, as well as to deleterious public health outcomes. Organizations in those countries are also in a position to intervene, changing their business practices to become more aligned with ethical principles.

The Role of Ethical Decision Making

All organizations have a direct responsibility to perform ethically and to engage in ethical business practices. Ethical decision making starts with senior management, which sets the ethical tone for the entire organization. Even with strong codes of ethics, leaders have the power and ability to engage in unethical business practices. The normative environment in the organization needs to reflect the values and principles set by the leaders. Leaders become the role models for others in the organization, and with collective, collaborative decision making, all senior managers can work together to come up with ideal strategies and solutions. Organizations that fail to take action on business practices that exacerbate climate change, which fail to address problems like carbon dioxide emissions or pollutants, are direct culprits in creating the devastating effects felt by the residents of nations around the world. Because climate change is a global issue that knows no geopolitical boundaries, organizations in one country can have a major impact on countries on the other side of the globe.

Ethical decision making affects business practices that impact environmental risks at every level of the organization. From the decision to manufacture cheap disposable products made from plastic, to the decision to not invest in alternative energy options for manufacturing and transportation, organizations and their leaders are contributing to environmental risk factors leading to climate change and other problems. When organizations defer responsibility, claiming that they are acting within the boundaries of the law or when they point fingers at their suppliers or logistics companies, they are making a decision to not care about their primary stakeholders around the world.

The Impact of Business Ethics on Stakeholder Relationships

Business ethics impact stakeholder relationships in major ways. Ethical business practices show respect for stakeholders. Known as the stakeholder systems approach to business ethics, taking stakeholders into account is one way...

Corporate social responsibility and environmental responsibility are both becoming strategic business practices that improve relationships with stakeholders by demonstrating respect. Research shows how businesses demonstrating openness to change, flexibility and adaptability, and an ongoing commitment to innovation are in a position uniquely situated to promote environmental sustainability at all levels of business practice (Pedersen, Gwordz & Hvass, 2016). Stakeholders may also respond to ethical decisions by altering their own behaviors, resulting in a domino effect of changing values and social norms. Organizations are in a position to set new standards of behavior among their peers in the industry and between competing stakeholder groups in government, target consumer audiences, and the supply chain. Because of their power, experience, and role, leaders in organizations have a direct impact on improving stakeholder relationships by practicing corporate social responsibility.
Organizations that actively pursue innovative transportation and manufacturing solutions, and which change their business practices to reflect...…effectiveness of the innovations in transportation and logistics. The program will also be evaluated by assessing the marketing and new product development department, and also by communicating with major stakeholders. Program evaluation will take into account a costs-benefits analysis that will determine which instructional or training strategies or methods have proved most effective in achieving the measurable outcomes such as reducing emissions or carbon footprint.

Conducting Training

Training will be conducted differently for each department and for each specific training need. Some training will involve innovation strategies: methods used to stimulate creative thinking using incentives for unique product design and development, or for unique approaches to logistics and transportation solutions. Other training will be delivered using online instruction, with course material designed by third parties invested in the improvement of the organization’s environmental ethics. Training will also be conducted in classroom settings, through workshops and seminars, and via the distribution of books to all employees. Company and departmental leaders will be actively engaged in the training program, conducting meetings that inculcate environmental ethical awareness.

Compliance Auditing

Compliance auditing has become “commonplace” because of its role in changing business practices (Usnick & Usnick, 2013, p. 1). In fact, the methods used in compliance auditing in this organization will reflect the ethical objectives that influence changes to business practices. Compliance auditing is “no longer stop with legal compliance, and now include industry protocols, licensing requirements, and an array of standards and ethical concerns,” (Usnick & Usnick, 2013, p. 1). The organization and its leaders set new standards in their industry sector, by altering employee behavior, attitudes, and normative company culture to become more aligned with ethical principles. Compliance auditing ensures that the organization goes beyond the call of duty, perhaps ultimately changing public policy as well as internal policies.

Summary of Key Findings

The effort to better align business practices with environmental ethics will pay off in terms of improved relationships with stakeholders and an improved reputation for the organization. Business practices will parallel ethical decision making processes, used in each department. Individual employees will model their behavior after leaders, who establish a benchmark for environmental sustainability and overall performance. The organization’s investment in ethical training practices will pay off almost immediately in measurable returns due to increased innovation and a reduced carbon footprint. The organization will leave a remarkable legacy by working together with clients, suppliers, and even competitors to reduce the…