Global warming is a major threat for the generations to come. Although, the conduct of business around the globe is a primary issue for climate change, especially multinational companies can hardly be regulated by national governments. Since the compliance with environmental standards can not be enforced effectively, it is up to the corporations to fulfill their responsibilities to the environment. This paper seeks to provide an ethical reasoning for the obligations corporations have to the environment. Furthermore, the nature of this responsibility will be examined in order to develop a basic guideline for the decision makers in the companies.
Table of Contents
1 INTRODUCTION
2 GLOBAL WARMING AND INTERNATIONAL COMPANIES
3 THE RESPONSIBILITY OF THE CORPORATION
3.1 THE PRINCIPLE OF RESPONSIBILITY
3.2 APPROACHES TO CORPORATE RESPONSIBILITY
3.3 EXTENSION OF STAKEHOLDER THEORY
4 BUSINESS AND SUSTAINABILITY
4.1 THE CONCEPT OF SUSTAINABILITY
4.2 FRAMEWORK FOR BUSINESS DECISIONS
4.3 BUSINESS REALITY
5 CONCLUSION
Objectives and Topics
This seminar paper explores the ethical obligations of multinational corporations regarding global warming and environmental preservation. The primary research goal is to develop a guideline for corporate decision-makers by synthesizing Hans Jonas’s principle of responsibility with Freeman’s stakeholder theory, ultimately questioning how businesses can integrate sustainability into their core strategies despite short-term financial pressures.
- The ethical dimensions of corporate responsibility in the context of climate change.
- Application of the principle of responsibility to future generations.
- Comparison between traditional shareholder value theory and extended stakeholder theory.
- Strategic implementation of sustainability through frameworks like the Connected Reporting Framework (CRF).
- The tension between short-term financial performance and long-term ecological necessity.
Excerpt from the Book
3.1 THE PRINCIPLE OF RESPONSIBILITY
The nature of human action has been changed considerably by modern technology. Nowadays acts of men have reached unconceivable extents and can cause completely new results. Because of its self-confirmative nature, technical progress is shaped by an accelerating dynamic. On the one hand, the consequences of technological inventions are already extended to the far future, even though they are applied to meet current necessities. On the other hand, knowledge about these consequences is not in line with the dynamic pace of technological progress. However, it is obvious that due to the new power of mankind the environment has become vulnerable. Thus, mankind is now responsible for the entire ecological system of the earth. Whether nature has a right of its own is a permissible question, but it must be sufficient to realize that the fate of mankind heavily depends on the state of nature. Hence, the well-being of generations to come is determined by the way mankind copes with its new power today. Due to the power the current generation has over the generations to come, this generation becomes responsible for the existence of future generations and the circumstances these generations have to face (Jonas, 1984, pp. 26 - 34).
Under the theoretical assumption that human beings will always exist, the fact that these humans will be, gives them the right to blame the past generations for the circumstances they have to suffer from. There would be no complaint of the coming generations though, if they were indifferent to the dreadful conditions they found. This however, is only possible if the future generations lose their dignity and vocation of mankind. Hence, the absence of any complaint of future generations against the current generations would be the most terrible complaint of all. Therefore, the existing generations have the obligation to ensure that future generations will be able to live a life appropriate of mankind. This is the first responsibility of the current generations. It is a non-reciprocal duty and all other obligations of the current generations for the generations to come can be diverted from this responsibility (Jonas, 1984, pp. 84 - 92).
Summary of Chapters
1 INTRODUCTION: Outlines the threat of global warming and the necessity for corporations to assume environmental responsibilities beyond legislative requirements.
2 GLOBAL WARMING AND INTERNATIONAL COMPANIES: Discusses the scientific and economic impact of climate change, emphasizing that multinational corporations are primary contributors and possess the resources to foster change.
3 THE RESPONSIBILITY OF THE CORPORATION: Analyzes the moral duty of current generations toward the future, contrasting the shareholder-centric view with an extended stakeholder model that includes future generations.
4 BUSINESS AND SUSTAINABILITY: Evaluates sustainability as a management tool and examines how corporations can integrate ecological concerns into business decisions using frameworks like the Connected Reporting Framework.
5 CONCLUSION: Reaffirms that corporations have a moral duty to act on behalf of future generations and calls for external stakeholders to drive this commitment.
Keywords
Global Warming, Corporate Responsibility, Sustainability, Stakeholder Theory, Hans Jonas, Future Generations, Climate Change, Environmental Ethics, Shareholder Value, Connected Reporting Framework, Multinational Corporations, Business Strategy, Intertemporal Justice, Ecological Preservation, Economic Performance.
Frequently Asked Questions
What is the core focus of this seminar paper?
The paper examines the moral and ethical responsibilities of multinational corporations in the face of climate change, specifically addressing how they should manage their environmental impact on behalf of future generations.
What are the primary thematic areas covered?
The main themes include climate change science, ethical theories of responsibility (specifically Hans Jonas), stakeholder management, and the integration of sustainability into business strategy.
What is the main objective of the author?
The goal is to move beyond the traditional "shareholder value" model and propose a guideline for executives that incorporates the needs of future generations into current business decision-making.
Which scientific and ethical methods are used?
The author uses an interdisciplinary approach, combining the Stern Review’s economic analysis of climate change with ethical frameworks like Hans Jonas’s principle of responsibility and Freeman’s stakeholder theory.
What does the main body of the text cover?
It covers the nature of human responsibility, the application of stakeholder theory to environmental issues, the definition and management of sustainability, and the current realities of short-termism in corporate finance.
Which keywords best characterize this work?
Key terms include Corporate Responsibility, Global Warming, Sustainability, Stakeholder Theory, and Future Generations.
How does the author define the "Principle of Responsibility"?
It is presented as a non-reciprocal duty of the current generation to ensure that future generations can live a life appropriate for mankind, given our technological power to potentially destroy the ecological foundation of the earth.
What is the role of the "Connected Reporting Framework" (CRF)?
The CRF is introduced as a practical management tool that helps companies integrate sustainability information into their mainstream financial reporting, allowing them to better align business strategy with environmental performance.
How does the business reality (short-termism) conflict with sustainability?
The paper argues that the rise of mutual and hedge funds with short time horizons pressures executives to prioritize immediate financial returns over long-term environmental sustainability, effectively subordinating moral obligations to short-term profits.
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- Tim Schabsky (Autor:in), 2009, Environmentalism and International Companies, München, GRIN Verlag, https://www.hausarbeiten.de/document/154082
