Assignment 2: Poverty and Pollution Case Study
Mustafa Ismail
Professor Jane Osburn
BUS 309-Business Ethics
March 05, 2013

The paper will explore the issues that are associated with poverty and pollution. The first section of the paper will explain the ethical implications of businesses polluting in third world countries. The second portion discusses why businesses disregard standards of pollution control while conducting operations in third world countries. The middle portion will explain how pollution is the price of progress and why human beings have the moral right to a livable environment. The final sections will explain why wealthy nations should not have the obligation to provide poorer nations with greener industries and the sources of energy and propose a plan for uniform global pollution control standards.
Determine the ethical implications of businesses polluting in a third world country. Explain.
First let’s give the definition of ethics. According to Lamb, Hair & McDaniel (2013)
“ethics refers to the moral principles or values that generally govern the conduct of an individual or group” (p. 35). The ethical implications of businesses polluting in third world countries is whether to obey the moral laws that a person knows is right or to make money. Some businesses would rather act unethically and make money than to take responsibility for damaging people, land, animals, and other things. Another ethical implication is abide by the rule that regulate polluting or take the chance of being fined for not abiding by the rules and polluting. Some businesses would rather be fined than abide by the regulations because it is cheaper for the business to pay the fine than to actually fix the problem. Another ethical implication is that businesses would rather pollute in third world countries because it is not harming their surrounding area in America. Businesses have the idea that it is more ethical to pollute in a third world country than to pollute in America.
Suggest the reasons a business may conduct operations in a third world country and disregard any standards of pollution control.
There are still some countries outside of the United States that do not have standards of pollution control. Two countries that currently do not have standards of pollution control are
China and India. The countries are responsible for upholding standards of pollution control for their own country. The United Nations has incorporated some aid by offering credits to the plants that qualify, which turns into money given to the plants for reducing hazardous pollution that emits from the plant. Currently “a small number of coolant factories in China that did not qualify for the United Nations carbon credits freely vent this dangerous chemical. And atmospheric levels are rapidly rising” (Rosenthal & Lehren, 2012, p. 3).
Another reason that a business may conduct operations in a third world country and disregard any standards of pollution control is that they bribe the country in order for their pollution to be overlooked. “Many contend that bribery is unpleasant but necessary part of international business” (Lamb, Hair & McDaniel, 2013, p. 39). Businesses take part in bribery in order to be overlooked by the country and not be reported for violations of standards that may be in place. According to Crossette (1999), “corruption is a third world phenomenon” (p.1). The businesses of the richer nations are exploiting the poorer areas by offering the government and their agencies money in order for them to overlook the wrongdoings of the business.
It has been said that pollution is the price of progress. Assess the connections between economic progress and development, on the one hand, and pollution controls and environment protection, on the other. Some people believe that pollution is the price of progress. “ Traditionally, business has considered the environment to be a free, nearly limitless good” (Shaw, 2011, p. 266). Some businesses look at the environment as being free to use for their use to make money and not have to protect it for future generations to have a livable environment. Other businesses have the belief that the pollution should be shifted to the poorer countries such as Africa because people with higher incomes value cleaner air and places to live than people in the underdeveloped areas.
Another view that some businesses have is that they should pollute in lower income areas because it is cheaper to pay for a death and injury than if they would have to pay for death and injury in countries such as America. The beliefs that the businesses have shows that economic progress and development for countries comes at a huge price for the underdeveloped countries.
There are laws that are in place to help control pollution and protect the environment.
“Pollution involves using up natural resources that are limited” (Shaw, 2011, p. 266). The
Environmental Protection Agency has put in place laws such as the Clean Water Act which regulates pollution that is distributed into the water and the Clean Air Act which regulates pollution that is distributed into the air.
Support the argument that human beings have a moral right to a livable environment regardless of the country they live in.
Every human being has the moral right to a livable environment. William T. Blackstone had the view that “each person, he argues, has this right qua being human and because a livable environment is essential for one to fulfill his human capacities” (Shaw, 2011, p. 268). Everyone in this world is a human being and should not have their rights discriminated against just because of the country or area that they live in. “Because a livable environment is equally necessary to all humans, there is no relevant grounds for excluding any human the opportunity to live this life”
(DesJardins, 2012, p. 103).
Take a position on whether wealthy nations have an obligation to provide poorer nations with, or help them develop, greener industries and sources of energy. Explain.
Wealthy nations do not have an obligation to provide poorer nations with, or even help them develop, greener industries and sources of energy. Wealthy nations are in debt with other countries and need to help the people of their own countries before they aid other countries. An example of a wealthy country being in debt is the United States. The United States has a “deficit with China that rose last year to a record high $295.5 billion” (Reuters, 2012, p. 1). With the deficit the United States is in a recession that has millions of people that are out of jobs and others that have a low level of income. In order to be able to help other countries we need to be able to help ourselves first.
Another reason that wealthy nations do not have an obligation to provide poorer nations with help with greener industries is that the governments of the countries may divert the money for other reasons including their own profit and gain. Some countries are currently run by militias were the government explicitly runs the country and tells the citizens what to do. The citizens will either listen and take part in what the government says or be killed. An example of a country that is still run this way is Somalia. If America or another country tried to help Somalia the country would engage in war against the help. It would be another instance of Black Hawk
Down. Countries such as Somalia would either take the aid and use it against their citizens or fight the aid of the other countries.
Propose a plan for uniform global pollution control standards and how you would enforce them.
A plan for uniform global pollution control standards would consist of market based pollution control standards along with command and controls. Market based pollution control standards “use economic incentives to encourage polluters to reduce their pollution in cost- effective ways” (Johnson, 2012). The market based pollution control would consist of pollution taxes and regulatory waivers. Command and control “requires the Federal Government to establish uniform national pollution standards and to apply those standards to major industrial polluters through a permit program” (Johnson, 2012). In order to enforce the standards the
Federal Government needs to ensure that all businesses that are run by Americans have the proper permit and meets the regulated standards of pollution levels. The Federal Government should have control of the American businesses no matter where they are located. Every country should have taxes that a business has to pay for violating mandated pollution regulations. The regulatory waivers will allow businesses to abide by pollution regulations and standards by taking efforts and controls of their business to produce less pollution. For the countries that do not want to abide by and enforce pollution regulations the Federal Government should ban
American businesses and trade with that country.

References
Crossette, B. (October 27, 1999). A New Index Tracks Bribe-Paying Countries. The New York
Times. Information retrieved on August 25, 2012, from: http://www.nytimes.com/1999/10/27/world/a-new-index-tracks-bribe-paying- countries.html.
DesJardins, J. R. (2012). Environmental Ethics: an introduction to environmental philosophy (5th ed.). Mason, OH: Cengage.
Johnson, S. (2012). Market-Based Pollution Control Programs and Environmental Justice.
Information retrieved on August 20, 2012, from: http://www2.law.mercer.edu/elaw/smj.htm. Lamb, C. W., Hair, J. F., Jr., & McDaniel, C. (2013). MKTG 6 (6th ed.). Mason, OH: South-
Western Cengage Learning.
Rosenthal, E. & Lehren, A. (August 9, 2012). Chilling Effect; Carbon Credits Gone Awry Raise
Output of Harmful Gas. The New York Times. Information retrieved on August 20, 2012, from:http://query.nytimes.com/gst/fullpage.html?res=9B06E5DD1638F93AA3575BC0A 9649D8B63&ref=sustainable development.