Business Strategy, Development Application 2nd Canadian Edition By Gary Bissonette - Test Bank

Business Strategy, Development Application 2nd Canadian Edition By Gary Bissonette – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 04
The Environment and Sustainable Business Practices

 

True / False Questions

1. Only the United States scored worse than Canada, with respect to water consumption.
   TRUE

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

2. Only the residents of the United States, on a per capita basis, use more water than Canadians.
   TRUE

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

3. Experts estimate that Canada will need to spend between $70 billion and $90 billion between now and 2016 in order to meet the future needs of our country.
   TRUE

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

4. Continued, unabated degradation of our air, land, and water, as the accelerated rate of global economic growth continues, has the making of a massive environmental and planetary disaster.
   TRUE

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

5. Successful economic development ratings need to go beyond production and consumption indices and include additional measures such as the protection of our biosphere.
   TRUE

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

6. Successful economic development ratings need to go beyond production and consumption indices and include additional measures such as the sustainable use of global resources.
   TRUE

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

7. Successful economic development ratings need to go beyond production and consumption indices and include additional measures such as energy conservation.
   TRUE

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

8. The United Nations’ (U.N.) current estimate for the population growth of our planet in 2050 is 9.2 billion.
   FALSE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-02 The Sustainability Challenge

9. To significantly reverse the downward spiral associated with climate change, we will need to cut carbon-based emissions during this period by at least 50% from their current levels.
   TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-03 Climate Change

10. Decarbonizing the energy supply by continuing to apply alternate energy power solutions, such as wind, solar, geothermal, biomass, hydro, and even nuclear, where applicable, will reduce the carbon footprint further.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-03 Climate Change

11. The Global Fuel Economy Initiative expects the number of cars worldwide to triple between now and 2050.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-03 Climate Change

12. Farming, logging, and energy consumption have resulted in a serious erosion of our green carpet.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-03 Climate Change

13. Creating a regulatory and financial environment, which moves manufacturers to stress fuel economy instead of performance, could enable us to cut fuel emissions by 50% between now and 2030.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-03 Climate Change

14. Deforestation, which is the massive clearing of the earth’s forest, continues to be a major issue in many developing countries.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-03 Climate Change

15. According to the World Health Organization (WHO), as many as 1.1 billion people live in areas which do not have access to clean and safe drinking water.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-04 Pollution and Health

16. Coal accounts for the most significant share of world energy consumption.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-05 The Energy Crunch

17. We have consumed about half of what is believed to be the total global supply of oil.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-05 The Energy Crunch

18. Electric vehicles will significantly impact traditional fossil fuel requirements for transportation by 2020.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-05 The Energy Crunch

19. According to forecasts, the global marketplace is going to require 26% more energy over the next decade.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-05 The Energy Crunch

20. BTUs measure the amount of heat required to raise the temperature of one pound of water by 1 degree (F).
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-05 The Energy Crunch

21. Fair trade refers to government actions that restrict the outflow of funds from one country to another.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-07 The Capital Squeeze

22. The “capital crunch” means that inexpensive capital will be more difficult to access in the future.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-07 The Capital Squeeze

23. Global demand for capital for investment purposes is expected to reach $24 trillion (USD) by 2020.
    FALSE

 

Difficulty: Moderate
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-07 The Capital Squeeze

24. State-owned investment funds are also known as mutual funds.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-07 The Capital Squeeze

25. Historically, as economies grow and citizens become wealthier, savings rates increase.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-07 The Capital Squeeze

26. Being responsible to your customers may require your firm to provide more information regarding your product than the law demands.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-10 Eco-Efficiency Management

27. In the long run, a firm’s loyalty to their employees can pay off financially.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

28. Businesses alone cannot solve the environmental sustainability challenge which currently confronts us.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-08 Businesss Response to the Sustainability Challenge

29. Participants in trade and economic development must agree to pay for the social costs of environmental degradation.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-09 Trade Management

30. Participants across markets need to support and accept pricing policies which reflect the full cost of expenses incurred in order to achieve environmental sustainability.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-09 Trade Management

31. Participants must block the ability of market players from obtaining and leveraging a competitive advantage as a result of efforts to avoid environmental costs.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-09 Trade Management

32. Eco-efficiency management can be thought of as consisting of two broad categories of operational reassessment, these being resource management and emissions management.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-10 Eco-Efficiency Management

33. Within the resource management model, a desired outcome to achieve the goal of zero waste.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-10 Eco-Efficiency Management

34. Emissions management is focused on our ability, across the globe, to achieve a position of zero global emissions.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-10 Eco-Efficiency Management

35. Trade management is the tactical shift required within our business operations to maximize the efficiency of our resource utilization and minimize or eliminate the resulting current degradation to the planet.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-10 Eco-Efficiency Management

36. The sustainability balancing act includes balancing planet stewardship against operating costs.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

37. Pricing power is one of the long-term benefits of environmental sustainability strategic integration.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

38. Customer retention is NOT one of the benefits of environmental sustainability strategic integration.
    FALSE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

39. For the global marketplace to be truly successful in responding to this challenge, businesses need to completely integrate environmental responsibility into their business strategies.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

40. Strategic integration means that businesses need to see environmental sustainability as an integral part of value creation.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

41. Environmental sustainability is a highly complex challenge which literally reaches to the core of an organization’s soul.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

42. For many businesses, environmental sustainability is focused on two short-term outcomes: Improved Corporate Image and Regulatory Compliance.
    TRUE

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

 

Multiple Choice Questions

43. According to the World Health Organization (WHO), approximately how many people live in areas which do not have access to clean and safe drinking water?
    A.  3.1 billion
    B. 2.1 billion
    C.  1.1 billion
    D.  0.5 billion
    E.  3.6 billion

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-04 Pollution and Health

44. What is the United Nations’ (U.N.) current estimate for the population of our planet in 2050?
    A.  6.8 billion
    B. 8.2 billion
    C.  10 billion
    D.  12 billion
    E.  15 billion

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-02 The Sustainability Challenge

45. What is the United Nations’ (U.N.) current estimate for the population growth of our planet in 2050?
    A.  25%
    B. 50%
    C.  30%
    D.  36%
    E.  40%

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-02 The Sustainability Challenge

46. What percentage cuts to carbon-based emissions are needed to significantly reverse the downward spiral associated with climate change?
    A.  25%
    B. 50%
    C.  75%
    D.  10%
    E.  100%

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-03 Climate Change

47. What was a key factor in why Canadians use so much water, according to the Conference Board of Canada study?
    A.  industrial usage
    B. agricultural usage
    C.  a lack of water conservation practices
    D.  deficient distribution system
    E.  deficient water infrastructure system

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

48. Emissions management is focused on our ability, across the globe, to achieve a position of ________.
    A.  phase out of hazardous inputs
    B. zero global emissions
    C.  attacking pollution at the source
    D.  cut carbon-based emissions
    E.  environmental sustainability

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-10 Eco-Efficiency Management

49. Which of the following groups need NOT be involved to redefine the way in which we can achieve the required economic development which will result in an improvement in the standard of living for all global citizens while, at the same time, protect the planet which we call home?
    A.  governments
    B. organizations
    C.  businesses
    D.  individuals
    E.  lobbyists

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-08 Businesss Response to the Sustainability Challenge

50. Which of the following is NOT one of the long-term benefits that results from the integration of environmental sustainability practices?
    A.  Pricing power
    B. Enhanced efficiencies
    C.  Customer defection
    D.  Customer retention
    E.  Stronger employee base

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

51. Which of the following is NOT a key factor impacting energy supplies?
    A.  Rate of new discoveries
    B. Long-run access to additional capacity
    C.  Declines in current production
    D.  Current supply development constraints
    E.  Political impact factors

 

Difficulty: Moderate
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-05 The Energy Crunch

52. ___________, often driven by external groups and concerned citizens, has resulted in a greater awareness and understanding of the environmental challenge which we are now facing.
    A.  Regulatory compliance
    B. Societal pressure
    C.  Eco-management
    D.  Environmental sustainability initiative
    E.  Environmental responsibility

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

53. ___________ means that businesses need to see environmental sustainability as an integral part of value creation and that this creation includes sustaining and enhancing the resources which we depend on well into the future.
    A.  Regulatory compliance
    B. Societal pressure
    C.  Eco-management
    D.  Environmental sustainability initiative
    E.  Strategic integration

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

54. Reductions in savings rates occur in a developing economy because of all of the following except:
    A.  Citizens becoming wealthier
    B. Increased focus on quality of life
    C.  Economic growth
    D.  Increase in consumption-based practices
    E.  Citizens aging

 

Difficulty: Moderate
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-07 The Capital Squeeze

55. Which of the following is NOT a reason why Great Britain and Europe, during the mid-to-late 1700s, began the shift from one of a largely agricultural-based dependent society to that of a market transitioning towards a production-based model?
    A.  population growth
    B. increase in trade and inventiveness
    C.  environmental stewardship
    D.  growing emphasis on wealth creation
    E.  mercantilism backed by the rise of business systems

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

56. ________ refers to the tactical shifts required within our business operations in order to maximize the efficiency of our resource utilization and minimize or eliminate the resulting current degradation to the planet which such operations bring.
    A.  Environmental sustainability standard
    B. Eco-efficiency management
    C.  Environmental sustainability challenge
    D.  Resource management
    E.  Emissions management

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-10 Eco-Efficiency Management

57. The “capital crunch” refers to:
    A.  Supply of capital exceeding demand
    B. Demand for capital exceeding supply
    C.  Impact of sovereign wealth funds on tax policy
    D.  Impact of tax policy on sovereign wealth funds
    E.  Impact of tax policy on capital supply

 

Difficulty: Moderate
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-07 The Capital Squeeze

58. Which of the following is NOT a goal of sustainable business strategy?
    A.  design and redesign business processes
    B. allow for increased wealth and enhanced competitive advantage
    C.  incorporate the principles of human mankind
    D.  incorporate resource protection and sustainability for the future
    E.  incorporate protection and respect for water resources

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

59. Which of the following is NOT one of the societal responses to environmental degradation mentioned in the text?
    A.  unabated consumption
    B. regulatory compliance
    C.  intentional disregard
    D.  eco-management initiatives
    E.  full integration of business strategies and environmental responsibilities

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

60. The full immersion of environmental sustainability into the strategic planning process of an organization means integrating it throughout our _____, _______, and __________.
    A.  principles; operations; environment
    B. culture; practices; processes
    C.  management teams; operations; processes
    D.  culture; operations; processes
    E.  culture; operations; principles

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

61. Which of the following is NOT a successful economic development ratings that goes beyond production and consumption indices and include additional measures?
    A.  protection of our biosphere
    B. sustainable use of global resources
    C.  production-based productivity indices
    D.  energy conservation
    E.  environmental restoration

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

62. Which of the following is NOT a key factor impacting energy supplies?
    A.  Development speed of alternative energy sources
    B. Current demand development constraints
    C.  Rate of new discoveries
    D.  Immediate access to additional capacity
    E.  Geopolitical instability

 

Difficulty: Moderate
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-05 The Energy Crunch

63. Which of the following is NOT one of the fundamental shifts in the thought process associated with waste according to the resource management model?
    A.  resources are finite
    B. waste disposal is an unavoidable cost
    C.  resource efficiency can lead to lower overall costs in the long run
    D.  investments in reduce, reuse, recycle and recovery initiatives are yielding long-term cost savings
    E.  societal pressure, such as a company’s waste reduction and waste prevention strategies is becoming closely linked to company image and brand reputation

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-10 Eco-Efficiency Management

64. For many businesses, environmental sustainability is focused on which two short-term outcomes?
    A.  Pricing power and enhanced efficiencies
    B. Stronger recruitment positioning and customer retention
    C.  Stronger employee base and strong environmental management
    D.  New business options and improved corporate image
    E.  Improved corporate image and regulatory compliance

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

65. According to statistics released by the Conference Board of Canada (2013), our country ranks 15^th out of 16 (with 1 being the best) peer countries in terms of _________.
    A.  environmental stewardship
    B. regulatory environmental compliance
    C.  water conservation
    D.  energy conservation
    E.  deforestation

 

Difficulty: Easy
Learning Objective: 04-01 An overview of the business practices that created the environmental sustainability issues challenging us today
Topic: 04-01 The Consumption Journey

66. Which of the following is NOT one of the five critical sustainability challenges?
    A.  climate change
    B. pollution and health
    C.  water depletion
    D.  energy crunch
    E.  resource depletion

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-02 The Sustainability Challenge

 

Short Answer Questions

67. What did governments initially do in response to growing scientific evidence and environment disasters? Provide an example.

Governments, in response to growing scientific evidence, and in response to environment disasters which occurred, began to create minimum levels of regulatory environmental compliance for a growing number of business sectors (see Figure 4.1).
These regulations were designed to provide some element of accountability and control, with respect to environmental management within the business and public sectors.
Examples of such regulatory practices would be regulations associated with pollution and waste.

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-02 The Sustainability Challenge

68. Name and briefly describe the goals of sustainable business strategies.

The goal is to design and redesign business processes to allow for increased wealth and enhanced competitive advantage, incorporates the principles of human mankind and resource protection and sustainability for the future.

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-08 Businesss Response to the Sustainability Challenge
Topic: 04-11 Strategic Integration

69. Explain how transportation is key to responding to climate change.

Transportation is another key area where a significant improvement can be achieved.

The Global Fuel Economy Initiative expects the number of cars worldwide to triple between now and 2050.
Unchecked, this rapid growth in vehicles and their carbon-based emissions can have serious implications on climate degradation.
Having said this, a report titled “50 by 50”, Prospects and Progress, by George Eads, Charles River Associates, indicates that with proper action, this growth can be managed.
Critical to this action is ensuring that governments and manufacturers set fuel economy as a top priority, and that worldwide binding fuel economy targets be set.

 

Difficulty: Moderate
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-03 Climate Change

70. List and briefly describe the top six toxic threats according to the Blacksmith Institute.

The highly-respected Blacksmith Institute, in its 2010 report on the world’s worst pollution problems, listed the top six toxic threats to mankind. In all, the Blacksmith Institute has identified more than 2000 sites, affecting an estimated 56 million people, which contain these leading toxins (lead, mercury, chromium, arsenic, pesticides, and radionuclides). 1000 of these sites are, according to the Blacksmith Institute, considered to be toxic hotspots. In Dzerzhinsk, Russia, as an example, the ongoing dumping of chemical waste has contaminated the groundwater to such an extent that the life expectancy for residents has fallen to age 42, for men, and age 47, for women. This identification work, however, is far from complete. Initial estimates, based on work in progress, indicate that the number of sites globally impacted by toxic pollutants could be double the current 2000 sites identified, and the number of people impacted could be more than 100 million, most of which live in low and middle-income countries.

 

Difficulty: Easy
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-04 Pollution and Health

71. List and briefly describe the 7 key supply side factors for resource availability.

The supply side of the demand/supply relationship is influenced by 7 key factors. These factors are as follows:

Current Supply Development Constraints-how quickly can we develop the production of existing known resource supplies? This relates to how quickly capital investment in existing sources of energy (i.e. Alberta Sands opportunities) can result in such energy sources being moved from a state of known, but not developed, to “into the pipeline”.
This would include the cost/benefit trade-off of developing such opportunities. It would also include transportation capacity constraints and refining constraints which could bottleneck or impact the delivery of final products to users.
Political Impact Factors-refers to political, legislative or environmental action which constrains the ability of companies and organizations to proceed with supply development.
An example of this would be the current disagreement between nations relating to ownership of arctic land rights which have been found to possess energy reserves.
It would also refer to the environmental impact requirements, existing and new-to-come, which will impact costs and time associated with the pre-infrastructure development process.
Political impact factors can be viewed as either positive or negative influences on supply.
Rate of New Discoveries-refers to the identification of new sources of fossil fuels.
New exploration technologies have resulted in the identification of fossil fuel reserves in areas where such reserves were not known to exist.
Declines in Current Production-relates to the reduction in current supply volume due to energy sources drying up, or being taken offline.
The closing of a well due to the exhaustion of the oil supply associated with that well is an example of a supply contraction contributor.
Immediate Access to Additional Capacity-refers to the ability of current suppliers to tap into excess capacity to meet the demand needs of the marketplace. The ability of OPEC to increase supply capacity from existing sources is an example of this.
Enhanced production capability in Alberta, resulting in greater resource extraction from existing oil sands sites, is another example of our ability to add capacity to the supply side.
Geopolitical Instability-refers to instability in the countries and/or regions which supply our global energy needs.
The instability in the Middle East and in North Africa (Libya), in the first quarter of 2011, is reflective of how supplies can be disrupted due to geopolitical instability.
Development Speed of Alternate Energy Sources-refers to the speed at which alternate energy sources can be brought online and achieve the necessary scale and cost structure to be viewed as

 

Difficulty: Difficult
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-05 The Energy Crunch

72. Explain the two energy productivity alternatives to averting an energy crunch.

Although some improvement in energy productivity has been achieved, averting an energy crunch’s negative impact to global growth means that we will need to either reduce the amount of energy input per dollar of GDP output, or we will need to create more GDP output from the same level of energy input. The approach will, most likely, be a combination of both.

 

Difficulty: Moderate
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-05 The Energy Crunch

73. Explain resource management.

Resource management refers to our ability to actively manage existing supplies and regenerate new supplies of materials in such a way that we minimize resource depletion.

Our industrial and technology-based society is based on the acquisition and consumption of materials found in, and on, our planet.
These materials form the basis for the creation of goods and services designed, in large part, to improve our standard of living.
Some of these resources are more renewable than others.
What has grown significantly, however, is an overall concern that the replacement rates on renewable resources lags far behind their consumption.
This concern is further compounded by the acceleration of non-renewable resource consumption, which, in some areas, has grown to the point where they are well past their peak supply points.
With the projected population growth for our planet, noted above, combined with the tremendous economic growth in emerging economies across the globe, this resource depletion curve continues to accelerate.

 

Difficulty: Moderate
Learning Objective: 04-02 An understanding of the major environmental sustainability challenges the global marketplace must respond to
Topic: 04-06 Resource Depletion

74. Why can’t businesses alone solve the environmental sustainability challenge?

Businesses alone cannot solve the environmental sustainability challenge which currently confronts us. It will take the combined efforts of governments, organizations, businesses, and individuals working together to redefine the way in which we can achieve the required economic development which will result in an improvement in the standard of living for all global citizens while, at the same time, protect the planet which we call home.

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-08 Businesss Response to the Sustainability Challenge

75. Explain strategic integration.

Strategic integration means that businesses need to see environmental sustainability as an integral part of value creation and that this creation includes sustaining and enhancing the resources which we depend on well into the future.

The problem is not that we are unaware of what needs to be done, but lies in how to do it.
Environmental sustainability is a highly complex challenge which literally reaches to the core of an organization’s soul.
Integrating it into the long-term strategic plan of an organization requires, in many cases, redesigning the business model.
Successful execution, in this regard, requires experience and expertise in an area where many businesses, beyond their compliance requirements, simply do not possess such skills.
It is this gap between intent and action that is preventing organizations from moving beyond compliance and eco-management tactics to a position of true strategic integration.

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

76. Name and briefly describe at least three long-term benefits of environmental sustainability practices.

Integration of environmental sustainability practices into an organization’s strategy can yield significantly greater long-term benefits which are often overlooked by organizations and their management teams.
Some of these include:

1. Pricing Power-a stronger brand increases an organization’s pricing power.
2. Enhanced Efficiencies-resource intensity reduction techniques lead to greater long-term operating efficiencies and stronger supply chain management.
This can lead to higher margins and/or an overall lower cost base which can be leveraged into a competitive advantage.
3. Customer Retention-improved customer loyalty leads to lower customer desertion rates, resulting in greater opportunity to leverage additional revenue from these customers and lower customer transaction costs.
4. Stronger Employee Base-employee engagement via sustainability initiatives can result in greater employee retention, stronger recruitment positioning, and higher levels of employee motivation and productivity.
5. Strong Environmental Management-leads to lower risk exposure, which can result in lower insurance premiums, lower capital costs, and greater access to capital.
6. New Business Options-can lead to new skill development within the organization, which can lead to the creation of new business opportunities and an enhanced ability to enter into new markets.

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

77. What do organizations and their management teams need to recognize to be successful in an integrative approach?

To be successful in such an integrative approach, organizations and their management teams need to recognize where and how their current practices are impacting the environment. Once identified, they need to create a well-organized approach to responding to these issues.

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration

78. What is a key outcome of the analysis of the key drivers of environmental impact and degradation?

The initial impact assessment is followed by a comprehensive analysis of the key drivers of environmental impact and degradation and how each of these identified areas will impact the business system and market positioning. A key outcome of this analysis is the identification of opportunities which such drivers offer, the threats which are present, and a conclusion as to the “gaps” which exist, as well as the risks associated with such gaps. A key aspect of this identification process is also the identifying of channel partners, stakeholders, and external agency partnerships which are considered to be critical to our overall success, as well as the identification of key capabilities which are required, but which currently do not exist within the organization. Once the gap and risk analyses are completed, the organization will then need to build a thorough business plan that defines how a commitment to environmental sustainability can be integrated into its culture, operations and processes.

 

Difficulty: Easy
Learning Objective: 04-03 An appreciation for the complex factors that affect the ability of governments, organizations, businesses, and individuals to respond to the current environmental sustainability challenge
Learning Objective: 04-04 An understanding of the need for organizations to successfully integrate environmental sustainability stewardship into their strategies, operations, and processes
Topic: 04-11 Strategic Integration