Environment & Ethics: Notes | Corporate & Other Laws for CA Intermediate PDF Download

 Page 1


10 
Environment & Ethics 
Learning Objectives 
After reading this chapter, you will be able to- 
? Explain the Concept of Sustainable Development 
? Understand the Effects of Pollution and Resource Deletion 
? Understand the importance of Conservation of Natural Resources 
? Explain Eco friendly Business Practices 
"Once the last tree is cut and the last river poisoned, you will find you cannot eat your money." 
(Proverb) 
10.1 Introduction 
The Prayer "Sarvatra Sukhinah Santu Sarve Santu Niramayah;" `Let all be happy here and let 
all enjoy full health’ of Vedic Sages echoed universal welfare. The earthly life constituted the 
central concern for the Vedic Aryans. The sacrificial fire-rites which were evolved during Vedic 
period had social welfare as its motto, the motive was to prepare the land for agriculture for 
abundance and welfare of human race. Gandhiji said “There's enough on this planet for 
everyone's needs but not for everyone’s greed.” 
Industrial and technological development has provided us with material prosperity but has also 
created unique environmental threats to us and to future generations. As the twenty-first 
century begins, several well-established environmental trends are shaping the future of 
civilization - rising pollution, global warming, falling water tables, shrinking forests, and the 
loss of plant and animal species. The extent of the environmental damage produced by 
present and projected industrial technology makes one wonder how long this kind of 
development would be sustainable. 
10.2 Sustainable Development 
The Concept of sustainable development was brought into focus by 
1
Brundtland Report, which 
                                                           
1
 Report of Brundtland Commission – ‘Our Common future’, 1987 
Page 2


10 
Environment & Ethics 
Learning Objectives 
After reading this chapter, you will be able to- 
? Explain the Concept of Sustainable Development 
? Understand the Effects of Pollution and Resource Deletion 
? Understand the importance of Conservation of Natural Resources 
? Explain Eco friendly Business Practices 
"Once the last tree is cut and the last river poisoned, you will find you cannot eat your money." 
(Proverb) 
10.1 Introduction 
The Prayer "Sarvatra Sukhinah Santu Sarve Santu Niramayah;" `Let all be happy here and let 
all enjoy full health’ of Vedic Sages echoed universal welfare. The earthly life constituted the 
central concern for the Vedic Aryans. The sacrificial fire-rites which were evolved during Vedic 
period had social welfare as its motto, the motive was to prepare the land for agriculture for 
abundance and welfare of human race. Gandhiji said “There's enough on this planet for 
everyone's needs but not for everyone’s greed.” 
Industrial and technological development has provided us with material prosperity but has also 
created unique environmental threats to us and to future generations. As the twenty-first 
century begins, several well-established environmental trends are shaping the future of 
civilization - rising pollution, global warming, falling water tables, shrinking forests, and the 
loss of plant and animal species. The extent of the environmental damage produced by 
present and projected industrial technology makes one wonder how long this kind of 
development would be sustainable. 
10.2 Sustainable Development 
The Concept of sustainable development was brought into focus by 
1
Brundtland Report, which 
                                                           
1
 Report of Brundtland Commission – ‘Our Common future’, 1987 
 Environment & Ethics  10.2 
 
stated that economic growth has to be environmentally sustainable. There is no economic growth 
without ecological costs. One must realize that increased development and higher GNP are related 
to environmental damage and resource depletion. Therefore, an element of resource regeneration 
and positive approach to environment have to be incorporated in developmental programmes. 
Literally sustainable development refers to maintaining development over time. Most widely cited 
definition of sustainable development is 
2
“Development that meets the needs of the present without 
compromising the ability of future generations to meet their own needs.” A nation or society should 
satisfy its requirements – social, economic and others – without jeopardizing the interest of future 
generations.  
High economic growth means high rate of extraction, transformation and utilization of non-
renewable resources. There is no doubt that twenty first century markets shall be driven by 
the requirements of sustainable environments.  
10.3 Pollution and Resource Depletion 
Pollution refers to the undesirable and unintended contamination of the environment by the 
manufacture or use of commodities. Resource depletion refers to the consumption of finite or 
scarce resources. In a certain sense, pollution is also a type of resource depletion because 
contamination of air, water, or land diminishes their beneficial qualities.  
Air Pollution: Air pollution has increased exponentially as industrialization expanded. The 
most prevalent forms of air pollution are the gases and particulates spewed out by autos and 
industrial processes, which affect the quality of the air we breathe. One of the worst industrial 
disasters of all time occurred in Union Carbide’s plant in Bhopal on the night of December 3, 
1984. The accidental release of methyl-isocynate in the congested, low-income district of Old 
Bhopal killed 3,000 people and left many thousand more with chronic disabilities leading to 
premature deaths.  
Air pollutants also affect vegetation decreasing agricultural yields, deteriorate exposed 
construction materials through corrosion, discoloration, and rot, are hazardous to health and 
life and threaten disastrous global damage in the form of global warming, destruction of the 
stratospheric ozone layer and acid rains. 
Global Warming: Greenhouse gases - carbon dioxide, nitrous oxide, methane, and 
chlorofluorocarbons, occur naturally in the atmosphere to absorb and hold heat from the sun, 
preventing it from escaping back into space, to keep the earth's temperature about 33°C 
warmer than it would otherwise be, so that life can evolve and flourish. However, industrial, 
and other human activities during the last 50 years have released substantially more 
greenhouse gases into the atmosphere, particularly by the burning of fossil fuels such as oil 
and coal rising the levels of greenhouse gases and resulting in increasing amounts of heat, 
raising temperatures around the globe. Average global temperatures are now at least 1°C 
higher than in 1900 and are expected to rise by upto 4.5°C during this century. This rising 
                                                           
2
 World Commission on Environment and Development, 1987 
Page 3


10 
Environment & Ethics 
Learning Objectives 
After reading this chapter, you will be able to- 
? Explain the Concept of Sustainable Development 
? Understand the Effects of Pollution and Resource Deletion 
? Understand the importance of Conservation of Natural Resources 
? Explain Eco friendly Business Practices 
"Once the last tree is cut and the last river poisoned, you will find you cannot eat your money." 
(Proverb) 
10.1 Introduction 
The Prayer "Sarvatra Sukhinah Santu Sarve Santu Niramayah;" `Let all be happy here and let 
all enjoy full health’ of Vedic Sages echoed universal welfare. The earthly life constituted the 
central concern for the Vedic Aryans. The sacrificial fire-rites which were evolved during Vedic 
period had social welfare as its motto, the motive was to prepare the land for agriculture for 
abundance and welfare of human race. Gandhiji said “There's enough on this planet for 
everyone's needs but not for everyone’s greed.” 
Industrial and technological development has provided us with material prosperity but has also 
created unique environmental threats to us and to future generations. As the twenty-first 
century begins, several well-established environmental trends are shaping the future of 
civilization - rising pollution, global warming, falling water tables, shrinking forests, and the 
loss of plant and animal species. The extent of the environmental damage produced by 
present and projected industrial technology makes one wonder how long this kind of 
development would be sustainable. 
10.2 Sustainable Development 
The Concept of sustainable development was brought into focus by 
1
Brundtland Report, which 
                                                           
1
 Report of Brundtland Commission – ‘Our Common future’, 1987 
 Environment & Ethics  10.2 
 
stated that economic growth has to be environmentally sustainable. There is no economic growth 
without ecological costs. One must realize that increased development and higher GNP are related 
to environmental damage and resource depletion. Therefore, an element of resource regeneration 
and positive approach to environment have to be incorporated in developmental programmes. 
Literally sustainable development refers to maintaining development over time. Most widely cited 
definition of sustainable development is 
2
“Development that meets the needs of the present without 
compromising the ability of future generations to meet their own needs.” A nation or society should 
satisfy its requirements – social, economic and others – without jeopardizing the interest of future 
generations.  
High economic growth means high rate of extraction, transformation and utilization of non-
renewable resources. There is no doubt that twenty first century markets shall be driven by 
the requirements of sustainable environments.  
10.3 Pollution and Resource Depletion 
Pollution refers to the undesirable and unintended contamination of the environment by the 
manufacture or use of commodities. Resource depletion refers to the consumption of finite or 
scarce resources. In a certain sense, pollution is also a type of resource depletion because 
contamination of air, water, or land diminishes their beneficial qualities.  
Air Pollution: Air pollution has increased exponentially as industrialization expanded. The 
most prevalent forms of air pollution are the gases and particulates spewed out by autos and 
industrial processes, which affect the quality of the air we breathe. One of the worst industrial 
disasters of all time occurred in Union Carbide’s plant in Bhopal on the night of December 3, 
1984. The accidental release of methyl-isocynate in the congested, low-income district of Old 
Bhopal killed 3,000 people and left many thousand more with chronic disabilities leading to 
premature deaths.  
Air pollutants also affect vegetation decreasing agricultural yields, deteriorate exposed 
construction materials through corrosion, discoloration, and rot, are hazardous to health and 
life and threaten disastrous global damage in the form of global warming, destruction of the 
stratospheric ozone layer and acid rains. 
Global Warming: Greenhouse gases - carbon dioxide, nitrous oxide, methane, and 
chlorofluorocarbons, occur naturally in the atmosphere to absorb and hold heat from the sun, 
preventing it from escaping back into space, to keep the earth's temperature about 33°C 
warmer than it would otherwise be, so that life can evolve and flourish. However, industrial, 
and other human activities during the last 50 years have released substantially more 
greenhouse gases into the atmosphere, particularly by the burning of fossil fuels such as oil 
and coal rising the levels of greenhouse gases and resulting in increasing amounts of heat, 
raising temperatures around the globe. Average global temperatures are now at least 1°C 
higher than in 1900 and are expected to rise by upto 4.5°C during this century. This rising 
                                                           
2
 World Commission on Environment and Development, 1987 
10.3  Business Law, Ethics and Communication 
 
heat will expand the world's deserts; melt the polar ice caps, causing sea levels to rise; make 
several species of plants and animals extinct; disrupt farming; and increase the distribution 
and severity of diseases. Bodies of water such as lakes and oceans will warm, and this will 
dramatically shift the geographical distribution of fish and other marine species and increase 
the frequency and magnitude of droughts. The increase in levels of greenhouse gases would 
require reducing current emissions of greenhouse gases by 60 to 70 percent-an amount that 
would seriously damage the economies of both developed and developing nations.  
Ozone Depletion: A layer of ozone in the lower stratosphere screens all life on earth from 
harmful ultraviolet radiation. This ozone layer, however, is destroyed by CFC gases, which 
have been used in aerosol cans, refrigerators, air conditioners, industrial solvents, and 
industrial foam blowers. When released into the air, CFC gases rise; in 7 to 10 years, they 
reach the stratosphere, where they destroy ozone molecules and remain for 75 to 130 years, 
continuing all the while to break down additional ozone molecules. Shrinking of the ozone 
layer. This results in the subsequent increase of ultraviolet rays which could cause several 
hundred thousand new cases of skin cancer and could also lead to considerable destruction 
of the 75 percent of the world's major crops that are sensitive to ultraviolet light. 
But ozone depletion has been minimized with adoption of the Vienna Convention on ozone 
depletion in the year 1985 and Montreal Protocol on substances that deplete the ozone layer 
in the year 1989. Under these two international agreements various Governments had 
restricted the use of CFC gases by the business houses within their national borders. It is 
believed that if the international agreement is adhered to, the ozone layer is expected to 
recover by 2050. Due to its widespread adoption and implementation it has been hailed as an 
examples of exceptional international cooperation with Kofi Annan (former U.N. Secretary 
General) quoted as saying of the Montreal Protocol that is perhaps the single most successful 
international agreement to date. 
Acid Rain : Like global warming, acid rain is a threat to the environment that is closely related 
to the combustion of fossil fuels (oil, coal, and natural gas),which are heavily used by utilities 
to produce electricity. Burning fossil fuels, particularly coal containing high levels of sulphur, 
releases large quantities of sulphur oxides and nitrogen oxides into the atmosphere. When 
these gases are carried into the air, they combine with water vapour in clouds to form nitric 
acid and sulphuric acid. These acids are then carried down in rain, which often falls hundreds 
of miles away from the original sources of the oxides raising the acidity of the water sources. It 
also soaks into soils and falls directly on trees and other vegetation. Numerous studies have 
shown that many fish populations and other aquatic organisms are unable to survive in lakes 
and rivers that have become highly acidic due to acid rain. Other studies have shown that acid 
rain directly damages forests and indirectly destroys the wildlife and species that depend on 
forests for food and breeding. Acidic rainwater can also contaminate drinking water. Acid rain 
can corrode and damage buildings, statues, and other objects, particularly those made of iron, 
limestone, and marble.  
Water Pollution: In 1985, about 11,000 oil spills, involving about 24 million gallons of oil, were 
recorded in and around U.S. In the past, the oceans have been used as disposal sites for 
Page 4


10 
Environment & Ethics 
Learning Objectives 
After reading this chapter, you will be able to- 
? Explain the Concept of Sustainable Development 
? Understand the Effects of Pollution and Resource Deletion 
? Understand the importance of Conservation of Natural Resources 
? Explain Eco friendly Business Practices 
"Once the last tree is cut and the last river poisoned, you will find you cannot eat your money." 
(Proverb) 
10.1 Introduction 
The Prayer "Sarvatra Sukhinah Santu Sarve Santu Niramayah;" `Let all be happy here and let 
all enjoy full health’ of Vedic Sages echoed universal welfare. The earthly life constituted the 
central concern for the Vedic Aryans. The sacrificial fire-rites which were evolved during Vedic 
period had social welfare as its motto, the motive was to prepare the land for agriculture for 
abundance and welfare of human race. Gandhiji said “There's enough on this planet for 
everyone's needs but not for everyone’s greed.” 
Industrial and technological development has provided us with material prosperity but has also 
created unique environmental threats to us and to future generations. As the twenty-first 
century begins, several well-established environmental trends are shaping the future of 
civilization - rising pollution, global warming, falling water tables, shrinking forests, and the 
loss of plant and animal species. The extent of the environmental damage produced by 
present and projected industrial technology makes one wonder how long this kind of 
development would be sustainable. 
10.2 Sustainable Development 
The Concept of sustainable development was brought into focus by 
1
Brundtland Report, which 
                                                           
1
 Report of Brundtland Commission – ‘Our Common future’, 1987 
 Environment & Ethics  10.2 
 
stated that economic growth has to be environmentally sustainable. There is no economic growth 
without ecological costs. One must realize that increased development and higher GNP are related 
to environmental damage and resource depletion. Therefore, an element of resource regeneration 
and positive approach to environment have to be incorporated in developmental programmes. 
Literally sustainable development refers to maintaining development over time. Most widely cited 
definition of sustainable development is 
2
“Development that meets the needs of the present without 
compromising the ability of future generations to meet their own needs.” A nation or society should 
satisfy its requirements – social, economic and others – without jeopardizing the interest of future 
generations.  
High economic growth means high rate of extraction, transformation and utilization of non-
renewable resources. There is no doubt that twenty first century markets shall be driven by 
the requirements of sustainable environments.  
10.3 Pollution and Resource Depletion 
Pollution refers to the undesirable and unintended contamination of the environment by the 
manufacture or use of commodities. Resource depletion refers to the consumption of finite or 
scarce resources. In a certain sense, pollution is also a type of resource depletion because 
contamination of air, water, or land diminishes their beneficial qualities.  
Air Pollution: Air pollution has increased exponentially as industrialization expanded. The 
most prevalent forms of air pollution are the gases and particulates spewed out by autos and 
industrial processes, which affect the quality of the air we breathe. One of the worst industrial 
disasters of all time occurred in Union Carbide’s plant in Bhopal on the night of December 3, 
1984. The accidental release of methyl-isocynate in the congested, low-income district of Old 
Bhopal killed 3,000 people and left many thousand more with chronic disabilities leading to 
premature deaths.  
Air pollutants also affect vegetation decreasing agricultural yields, deteriorate exposed 
construction materials through corrosion, discoloration, and rot, are hazardous to health and 
life and threaten disastrous global damage in the form of global warming, destruction of the 
stratospheric ozone layer and acid rains. 
Global Warming: Greenhouse gases - carbon dioxide, nitrous oxide, methane, and 
chlorofluorocarbons, occur naturally in the atmosphere to absorb and hold heat from the sun, 
preventing it from escaping back into space, to keep the earth's temperature about 33°C 
warmer than it would otherwise be, so that life can evolve and flourish. However, industrial, 
and other human activities during the last 50 years have released substantially more 
greenhouse gases into the atmosphere, particularly by the burning of fossil fuels such as oil 
and coal rising the levels of greenhouse gases and resulting in increasing amounts of heat, 
raising temperatures around the globe. Average global temperatures are now at least 1°C 
higher than in 1900 and are expected to rise by upto 4.5°C during this century. This rising 
                                                           
2
 World Commission on Environment and Development, 1987 
10.3  Business Law, Ethics and Communication 
 
heat will expand the world's deserts; melt the polar ice caps, causing sea levels to rise; make 
several species of plants and animals extinct; disrupt farming; and increase the distribution 
and severity of diseases. Bodies of water such as lakes and oceans will warm, and this will 
dramatically shift the geographical distribution of fish and other marine species and increase 
the frequency and magnitude of droughts. The increase in levels of greenhouse gases would 
require reducing current emissions of greenhouse gases by 60 to 70 percent-an amount that 
would seriously damage the economies of both developed and developing nations.  
Ozone Depletion: A layer of ozone in the lower stratosphere screens all life on earth from 
harmful ultraviolet radiation. This ozone layer, however, is destroyed by CFC gases, which 
have been used in aerosol cans, refrigerators, air conditioners, industrial solvents, and 
industrial foam blowers. When released into the air, CFC gases rise; in 7 to 10 years, they 
reach the stratosphere, where they destroy ozone molecules and remain for 75 to 130 years, 
continuing all the while to break down additional ozone molecules. Shrinking of the ozone 
layer. This results in the subsequent increase of ultraviolet rays which could cause several 
hundred thousand new cases of skin cancer and could also lead to considerable destruction 
of the 75 percent of the world's major crops that are sensitive to ultraviolet light. 
But ozone depletion has been minimized with adoption of the Vienna Convention on ozone 
depletion in the year 1985 and Montreal Protocol on substances that deplete the ozone layer 
in the year 1989. Under these two international agreements various Governments had 
restricted the use of CFC gases by the business houses within their national borders. It is 
believed that if the international agreement is adhered to, the ozone layer is expected to 
recover by 2050. Due to its widespread adoption and implementation it has been hailed as an 
examples of exceptional international cooperation with Kofi Annan (former U.N. Secretary 
General) quoted as saying of the Montreal Protocol that is perhaps the single most successful 
international agreement to date. 
Acid Rain : Like global warming, acid rain is a threat to the environment that is closely related 
to the combustion of fossil fuels (oil, coal, and natural gas),which are heavily used by utilities 
to produce electricity. Burning fossil fuels, particularly coal containing high levels of sulphur, 
releases large quantities of sulphur oxides and nitrogen oxides into the atmosphere. When 
these gases are carried into the air, they combine with water vapour in clouds to form nitric 
acid and sulphuric acid. These acids are then carried down in rain, which often falls hundreds 
of miles away from the original sources of the oxides raising the acidity of the water sources. It 
also soaks into soils and falls directly on trees and other vegetation. Numerous studies have 
shown that many fish populations and other aquatic organisms are unable to survive in lakes 
and rivers that have become highly acidic due to acid rain. Other studies have shown that acid 
rain directly damages forests and indirectly destroys the wildlife and species that depend on 
forests for food and breeding. Acidic rainwater can also contaminate drinking water. Acid rain 
can corrode and damage buildings, statues, and other objects, particularly those made of iron, 
limestone, and marble.  
Water Pollution: In 1985, about 11,000 oil spills, involving about 24 million gallons of oil, were 
recorded in and around U.S. In the past, the oceans have been used as disposal sites for 
 Environment & Ethics  10.4 
 
intermediate and low -level radioactive wastes. Oceanographers have found traces of 
plutonium, cesium, and other radioactive materials in seawater that have apparently leaked 
from the sealed drums in which radioactive wastes are disposed. 
Although water is essential to human life as well as to industrial growth and development, the 
world's per capita supplies of water are shrinking and are now 30 percent smaller than 25 
years ago. A number of factors have contributed to this. An increase in population and 
economic activity particularly in urban areas, has resulted in increased demands for water. To 
meet these demands, water is being increasingly diverted from agricultural irrigation to provide 
water for cities. 
Land Pollution:  
Solid Wastes: Each year people living in cities produce tons of solid wastes every year. City 
garbage dumps are significant sources of pollution, containing toxic substances such as 
cadmium (from rechargeable batteries), mercury, lead (from car batteries and TV picture 
tubes), vanadium, copper, zinc.  
Hazardous or toxic substances: are those that can cause increase in mortality rates or 
irreversible or incapacitating illness or those that have other seriously adverse health or 
environmental effects. Benzene is a common industrial toxic chemical used in plastics, dyes, 
nylon, food additives, detergents, drugs, fungicides, and gasoline. Benzene workers are 
several times more likely than the general population to get leukemia. Vinyl chloride is another 
common industrial chemical used in the production of plastics, which is released in small 
amounts when plastic products deteriorate, causes liver damage; birth anomalies; liver, 
respiratory, brain, and lymph cancers, and bone damage Basel Convention 1992. 
Depletion of fossil fuels: Fossil fuels depletion at an exponentially rising rate results in the 
loss of forest habitats. Combined with the effects of pollution it has led to the extinction of a 
phenomenal number of species and the danger of many existing species disappearing forever. 
10.4 Ecological Ethics 
The problem of pollution and other environmental issues can best be framed in terms of our 
duty to recognize and preserve the ecological systems within which we live. An ecological 
system is an interrelated and interdependent set of organisms and environments, such as a 
lake, in which the fish depend on small aquatic organisms, which in turn live off decaying plant 
and fish waste products. Since the various parts of an ecological system are interrelated, the 
activities of one of its parts will affect all the other parts. Business firms (and all other social 
institutions) are parts of a larger ecological system. Business firms depend on the natural 
environment for their energy, material resources, and waste disposal, and that environment in 
turn is affected by the commercial activities of business firms. For example, the activities of 
18
th
 century European manufacturers of beaver hats led to the wholesale destruction of 
beavers (a semi aquatic large furry rodent) in the United States, which in turn led to the drying 
up of the innumerable swamp lands that had been created by beavers. Unless businesses 
recognize the interrelationships and interdependencies of the ecological systems within which 
Page 5


10 
Environment & Ethics 
Learning Objectives 
After reading this chapter, you will be able to- 
? Explain the Concept of Sustainable Development 
? Understand the Effects of Pollution and Resource Deletion 
? Understand the importance of Conservation of Natural Resources 
? Explain Eco friendly Business Practices 
"Once the last tree is cut and the last river poisoned, you will find you cannot eat your money." 
(Proverb) 
10.1 Introduction 
The Prayer "Sarvatra Sukhinah Santu Sarve Santu Niramayah;" `Let all be happy here and let 
all enjoy full health’ of Vedic Sages echoed universal welfare. The earthly life constituted the 
central concern for the Vedic Aryans. The sacrificial fire-rites which were evolved during Vedic 
period had social welfare as its motto, the motive was to prepare the land for agriculture for 
abundance and welfare of human race. Gandhiji said “There's enough on this planet for 
everyone's needs but not for everyone’s greed.” 
Industrial and technological development has provided us with material prosperity but has also 
created unique environmental threats to us and to future generations. As the twenty-first 
century begins, several well-established environmental trends are shaping the future of 
civilization - rising pollution, global warming, falling water tables, shrinking forests, and the 
loss of plant and animal species. The extent of the environmental damage produced by 
present and projected industrial technology makes one wonder how long this kind of 
development would be sustainable. 
10.2 Sustainable Development 
The Concept of sustainable development was brought into focus by 
1
Brundtland Report, which 
                                                           
1
 Report of Brundtland Commission – ‘Our Common future’, 1987 
 Environment & Ethics  10.2 
 
stated that economic growth has to be environmentally sustainable. There is no economic growth 
without ecological costs. One must realize that increased development and higher GNP are related 
to environmental damage and resource depletion. Therefore, an element of resource regeneration 
and positive approach to environment have to be incorporated in developmental programmes. 
Literally sustainable development refers to maintaining development over time. Most widely cited 
definition of sustainable development is 
2
“Development that meets the needs of the present without 
compromising the ability of future generations to meet their own needs.” A nation or society should 
satisfy its requirements – social, economic and others – without jeopardizing the interest of future 
generations.  
High economic growth means high rate of extraction, transformation and utilization of non-
renewable resources. There is no doubt that twenty first century markets shall be driven by 
the requirements of sustainable environments.  
10.3 Pollution and Resource Depletion 
Pollution refers to the undesirable and unintended contamination of the environment by the 
manufacture or use of commodities. Resource depletion refers to the consumption of finite or 
scarce resources. In a certain sense, pollution is also a type of resource depletion because 
contamination of air, water, or land diminishes their beneficial qualities.  
Air Pollution: Air pollution has increased exponentially as industrialization expanded. The 
most prevalent forms of air pollution are the gases and particulates spewed out by autos and 
industrial processes, which affect the quality of the air we breathe. One of the worst industrial 
disasters of all time occurred in Union Carbide’s plant in Bhopal on the night of December 3, 
1984. The accidental release of methyl-isocynate in the congested, low-income district of Old 
Bhopal killed 3,000 people and left many thousand more with chronic disabilities leading to 
premature deaths.  
Air pollutants also affect vegetation decreasing agricultural yields, deteriorate exposed 
construction materials through corrosion, discoloration, and rot, are hazardous to health and 
life and threaten disastrous global damage in the form of global warming, destruction of the 
stratospheric ozone layer and acid rains. 
Global Warming: Greenhouse gases - carbon dioxide, nitrous oxide, methane, and 
chlorofluorocarbons, occur naturally in the atmosphere to absorb and hold heat from the sun, 
preventing it from escaping back into space, to keep the earth's temperature about 33°C 
warmer than it would otherwise be, so that life can evolve and flourish. However, industrial, 
and other human activities during the last 50 years have released substantially more 
greenhouse gases into the atmosphere, particularly by the burning of fossil fuels such as oil 
and coal rising the levels of greenhouse gases and resulting in increasing amounts of heat, 
raising temperatures around the globe. Average global temperatures are now at least 1°C 
higher than in 1900 and are expected to rise by upto 4.5°C during this century. This rising 
                                                           
2
 World Commission on Environment and Development, 1987 
10.3  Business Law, Ethics and Communication 
 
heat will expand the world's deserts; melt the polar ice caps, causing sea levels to rise; make 
several species of plants and animals extinct; disrupt farming; and increase the distribution 
and severity of diseases. Bodies of water such as lakes and oceans will warm, and this will 
dramatically shift the geographical distribution of fish and other marine species and increase 
the frequency and magnitude of droughts. The increase in levels of greenhouse gases would 
require reducing current emissions of greenhouse gases by 60 to 70 percent-an amount that 
would seriously damage the economies of both developed and developing nations.  
Ozone Depletion: A layer of ozone in the lower stratosphere screens all life on earth from 
harmful ultraviolet radiation. This ozone layer, however, is destroyed by CFC gases, which 
have been used in aerosol cans, refrigerators, air conditioners, industrial solvents, and 
industrial foam blowers. When released into the air, CFC gases rise; in 7 to 10 years, they 
reach the stratosphere, where they destroy ozone molecules and remain for 75 to 130 years, 
continuing all the while to break down additional ozone molecules. Shrinking of the ozone 
layer. This results in the subsequent increase of ultraviolet rays which could cause several 
hundred thousand new cases of skin cancer and could also lead to considerable destruction 
of the 75 percent of the world's major crops that are sensitive to ultraviolet light. 
But ozone depletion has been minimized with adoption of the Vienna Convention on ozone 
depletion in the year 1985 and Montreal Protocol on substances that deplete the ozone layer 
in the year 1989. Under these two international agreements various Governments had 
restricted the use of CFC gases by the business houses within their national borders. It is 
believed that if the international agreement is adhered to, the ozone layer is expected to 
recover by 2050. Due to its widespread adoption and implementation it has been hailed as an 
examples of exceptional international cooperation with Kofi Annan (former U.N. Secretary 
General) quoted as saying of the Montreal Protocol that is perhaps the single most successful 
international agreement to date. 
Acid Rain : Like global warming, acid rain is a threat to the environment that is closely related 
to the combustion of fossil fuels (oil, coal, and natural gas),which are heavily used by utilities 
to produce electricity. Burning fossil fuels, particularly coal containing high levels of sulphur, 
releases large quantities of sulphur oxides and nitrogen oxides into the atmosphere. When 
these gases are carried into the air, they combine with water vapour in clouds to form nitric 
acid and sulphuric acid. These acids are then carried down in rain, which often falls hundreds 
of miles away from the original sources of the oxides raising the acidity of the water sources. It 
also soaks into soils and falls directly on trees and other vegetation. Numerous studies have 
shown that many fish populations and other aquatic organisms are unable to survive in lakes 
and rivers that have become highly acidic due to acid rain. Other studies have shown that acid 
rain directly damages forests and indirectly destroys the wildlife and species that depend on 
forests for food and breeding. Acidic rainwater can also contaminate drinking water. Acid rain 
can corrode and damage buildings, statues, and other objects, particularly those made of iron, 
limestone, and marble.  
Water Pollution: In 1985, about 11,000 oil spills, involving about 24 million gallons of oil, were 
recorded in and around U.S. In the past, the oceans have been used as disposal sites for 
 Environment & Ethics  10.4 
 
intermediate and low -level radioactive wastes. Oceanographers have found traces of 
plutonium, cesium, and other radioactive materials in seawater that have apparently leaked 
from the sealed drums in which radioactive wastes are disposed. 
Although water is essential to human life as well as to industrial growth and development, the 
world's per capita supplies of water are shrinking and are now 30 percent smaller than 25 
years ago. A number of factors have contributed to this. An increase in population and 
economic activity particularly in urban areas, has resulted in increased demands for water. To 
meet these demands, water is being increasingly diverted from agricultural irrigation to provide 
water for cities. 
Land Pollution:  
Solid Wastes: Each year people living in cities produce tons of solid wastes every year. City 
garbage dumps are significant sources of pollution, containing toxic substances such as 
cadmium (from rechargeable batteries), mercury, lead (from car batteries and TV picture 
tubes), vanadium, copper, zinc.  
Hazardous or toxic substances: are those that can cause increase in mortality rates or 
irreversible or incapacitating illness or those that have other seriously adverse health or 
environmental effects. Benzene is a common industrial toxic chemical used in plastics, dyes, 
nylon, food additives, detergents, drugs, fungicides, and gasoline. Benzene workers are 
several times more likely than the general population to get leukemia. Vinyl chloride is another 
common industrial chemical used in the production of plastics, which is released in small 
amounts when plastic products deteriorate, causes liver damage; birth anomalies; liver, 
respiratory, brain, and lymph cancers, and bone damage Basel Convention 1992. 
Depletion of fossil fuels: Fossil fuels depletion at an exponentially rising rate results in the 
loss of forest habitats. Combined with the effects of pollution it has led to the extinction of a 
phenomenal number of species and the danger of many existing species disappearing forever. 
10.4 Ecological Ethics 
The problem of pollution and other environmental issues can best be framed in terms of our 
duty to recognize and preserve the ecological systems within which we live. An ecological 
system is an interrelated and interdependent set of organisms and environments, such as a 
lake, in which the fish depend on small aquatic organisms, which in turn live off decaying plant 
and fish waste products. Since the various parts of an ecological system are interrelated, the 
activities of one of its parts will affect all the other parts. Business firms (and all other social 
institutions) are parts of a larger ecological system. Business firms depend on the natural 
environment for their energy, material resources, and waste disposal, and that environment in 
turn is affected by the commercial activities of business firms. For example, the activities of 
18
th
 century European manufacturers of beaver hats led to the wholesale destruction of 
beavers (a semi aquatic large furry rodent) in the United States, which in turn led to the drying 
up of the innumerable swamp lands that had been created by beavers. Unless businesses 
recognize the interrelationships and interdependencies of the ecological systems within which 
10.5  Business Law, Ethics and Communication 
 
they operate and unless they ensure that their activities will not seriously injure these systems 
one cannot hope to deal with the problem of pollution.  
Ecological ethics is based on the idea that the environment should be protected not only for 
the sake of human beings but also for its own sake. The issue of environmental ethics goes 
beyond the problems relating to protection of environment or nature in terms of pollution, 
resource utilization or waste disposal. It is the issues of exploitive human nature and attitudes 
that should be addressed in a rational way. Problems like Global warming, Ozone depletion 
and disposal of hazardous wastes that concern the entire world. They require International 
cooperation and have to be tackled at the global level. 
10.5 Conservation of Natural Resources 
Conservation refers to the saving or rationing of natural resources for later uses. 
Conservation, therefore, looks primarily to the future: to the need to limit consumption now to 
have resources available for tomorrow. In a sense, pollution control is a form of conservation. 
Pollution "consumes" pure air and water, and pollution control "conserves" them for the future. 
Consequently, our concern over the depletion of resources is primarily a concern for future 
generations. Conservation, therefore, is the only way of ensuring a supply for tomorrow's 
generations. 
Business and Environmental Ethics : Few decades ago, the corporate world, the industry or 
others engaged in the use of natural resources or environmental services were mainly 
concerned with good business in economic sense. Concern for environment and resource 
depletion was not on their agenda; if conservation of resources was required it was with a 
motive of mere economic gains or profits.  
Not only in India but all over the world, there is now a growing concern for Social responsibility 
and ethical norms in all spheres of human activities; be it public behaviour, business or 
environment and there are ethical concerns to look after not only the interest of stakeholders 
but also that of community; as the regulatory / mandatory requirements have also become 
more stringent. This translates into providing safety for the workers at workplace, concern for 
their health, reducing pollution and incorporating environmental values in governance.  
Environmental ethics is a larger issue that concerns ethical behaviour of all types of 
organisations ranging from International bodies, national governments, opinion makers, 
media, intelligentsia, public and private enterprises and NGOs. In India many companies have 
come to realize that ethical practices make good business sense especially the organisations 
engaged in exports as these organisations have to satisfy the importer in regard to the quality, 
ethics and environmental standards.  
10.6 Developments in India 
The Chipko movement in India is a proof of people’s concern about balance in ecosystem 
when in 1973 they embraced the trees to prevent their felling by the government. In India 
especially the big cities are having the problem of air pollution on account of concentration of