Corporate Responsibility to the Environment
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Corporate responsibility to the environment has become one of the critical issues of the 1990s. Corporate responsibility, also known as "corporate greening", "product stewardship", or "proactive management", often goes beyond adherence to regulatory requirements and results in corporate environmental activism. Transnational corporations possess the technology and research ability to provide solutions to global and regional environmental problems or to alter the environment adversely. In the past, international businesses have been associated with environmental degradation in developing countries. In contrast, the collective corporate agenda for the 21st century includes substantial investment of both financial and personnel resources in meeting the sustainable development challenges of the global environment. Sustainable development recognizes the need to preserve natural resources for future generations. Environmental pollution resulting from economic development imposes significant losses on the public as natural resources grow increasingly scarce. Corporations which contribute to the scarcity of these resources have a responsibility to the human future. Thus, the critical concern of sustainable development is intergenerational equity. Ignazio Musu (1994) contends that sustainable development also involves intragenerational issues: "[Sustainable development] must also guarantee opportunities for populations in developing countries; and this implies important modif
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ty of nature" (United Nations, 1993a, p. 28). The soaring costs for environmental clean-up and waste treatment are likely factors in the high priority given to traditional environmental activities such as water, air and soil quality, noise pollution, and waste disposal/recycling technologies.
The Benchmark Survey found that transnational corporations gave relatively low priority to sustainable development issues and protection of the global environment. Generally, North American and Asian (Japanese) companies are more global in their outlook than European companies. The Survey found that 60 percent of the Asian (Japanese) and North American companies engaged in environmental-related activities in developing countries: "The most common developing-country activities aimed at protecting the environment are related to the monitoring of pollution, support for local infrastructure, and toxic-education programmes" (United Nations, 1993a, p. 31).
Japanese companies are involved in numerous afforestation programs aimed at reducing greenhouse gas emissions. (Japan is the world's largest consumer of tropical wood products). Toyota, Mitsubishi Paper Mills, and Honshu Paper have undertaken tree-planting projects in South America, L
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Approximate Word count = 2450
Approximate Pages = 10 (250 words per page)
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