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Video Case Study

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Video Case Study


Course: MGMT- 520-11534 Legal, Political, Ethical Dimensions of Business
Date Submitted: January 25, 2016

Video Case Study


The idea of global warming has not been universally accepted. Discuss how the law must
balance competing scientific opinions and make decisions in light of uncertainty. How
should this be done?
Answer:
The scientific opinion on climate change is the overall judgment among scientists
regarding whether global warming is occurring, and (if so) its causes and probable consequences.
This scientific opinion is expressed in synthesis reports, by scientific bodies of national or
international standing, and by surveys of opinion among climate scientists. Individual scientists,
universities, and laboratories contribute to the overall scientific opinion via their peerreviewed publications, and the areas of collective agreement and relative certainty are
summarized in these respected reports and surveys. The scientific consensus is that the
Earth's climate system is unequivocally warming, and that it is extremely likely (meaning, of at
least 95% probability or higher) that humans are causing most of it through activities that
increase concentrations of greenhouse gases in the atmosphere, such as deforestation and
burning fossil fuels. In addition, it is likely that some potential further greenhouse gas warming
has been offset by increased aerosols.
The global warming controversy concerns the public debate over whether global
warming is occurring, how much has occurred in modern times, what has caused it, what
its effects will be, whether any action should be taken to curb it, and if so what that action should
be. In the scientific literature, there is a strong consensus that global surface temperatures have
increased in recent decades and that the trend is caused by human-induced emissions of
greenhouse gases. No scientific body of national or international standing disagrees with this

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view, though a few organizations with members in extractive industries hold non-committal
positions. Disputes over the key scientific facts of global warming are now more prevalent in
the popular media than in the scientific literature, where such issues are treated as resolved, and
more prevalent in the United States than globally.
Theres nothing wrong with wanting more information but we should not forget that more
information is not necessarily the cure for uncertainty. In some cases, data can even lead to
increased uncertainty for a number of reasons, including the nature of data, the methodology of
science, and the biases inherent to research. In seeking data for our decisions, reasonable
expectations are essential. As the statistician George E.P. Box said, All models are wrong, some
are useful. Not only can data be useful when incomplete, an expectation of uncertainty is
crucial.
We must not conflate actionable data with irrefutable data and we should expect that
much data will, sooner or later, be called into question. In addition, if ecology can, at present,
only provide case specific answers that are locally relevant but cannot provide answers about
ecosystems that have not been directly studied; we would do well to accept that there can only be
so much research and only so much data available. Given the enormous number of ecosystems
that exist at any given moment, the task of amassing knowledge about each of them is elusive.
Every bit of ecological research may get us closer to the broad principles we are seeking in
making land use decisions, but not in the time frame that interests us. As designers, we must
move from anxiety to acceptance of uncertainty.

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Discuss the different stakeholders who have concern in this situation. What are their
interests, and which stakeholder should have the priority position?
Answer:
Climate change is deemed as one of the major environmental problems that the world
faces today. Its impact is seen through the melting polar ice caps, heavier than normal rainfalls
and thunderstorms, rising sea levels and the increase of the Earths temperature. The recent
United Nations Intergovernmental Panel on Climate Change (UN IPCC) reiterated this fact and
reported that the world is already experiencing the impacts of climate change as it continues to
endanger the Earth, along with its vulnerable populations, industries and ecosystems.
According to the United States Environmental Protection Agency (EPA), climate change
is a threat to the worlds basic needs because it affects our food and water security. Therefore,
businesses should seriously evaluate mitigation efforts as climate change poses a significant
impact on everyone. Droughts, heat stress and floods cause farmers to experience reduced crop
yields and livestock productivity affecting global food production. This also puts pressure on
water resources and water quality causing an increase in water demand as the worlds water
supplies slowly decline. Some areas, especially in the coastal and island regions, may have
problems with the rising sea levels, increases in runoff and massive flooding due to climate
change effects.
Climate change has indeed brought several changes to the Earth's ecosystems and natural
resources. Thus, the ability to adapt to climate change will greatly influence how it affects
individuals, communities, countries and the global population. This is why it is crucial for both
the government and the private sector to monitor the ever-changing effects of climate change as
it presents a range of environmental risks that will significantly affect their operations,

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regulations, policies and stakeholders. In fact, a study conducted by the World Bank shows that
the cost to adapt to climate change is around $70-100 billion annually; an expensive fiscal cost
that governments around the world cannot meet alone.
In order to initiate efforts that will help mitigate climate change, the world needs the
technical and financial resources of the private sector to make vulnerable countries and
communities more resilient to climate change. Climate change should be, therefore, the
stakeholders business.
Climate change exposes businesses to an array of risks and opportunities. Some of these
will be common across all business sectors, while others will be organization-specific, depending
on where the business is located, what they are doing and what their priorities are. Many risks
and opportunities are already present, including the opening up of new markets and services (e.g.
low carbon solutions), emergence of new legislation (e.g. the CRC Energy Efficiency Scheme)
and the occurrence of climate-related impacts (e.g. increased incidence of flooding). However,
the future evolution of risks and opportunities related to climate change is hard to quantify,
making them difficult to include in formal business and strategy planning. Furthermore, the
emergence of new risks and opportunities makes it problematic to make judgments based on
past experience.
Environmental law is both federal and state-controlled. Discuss the effect on state
regulations if the federal government, through the Environmental Protection Agency,
changes the standards for air pollution and carbon dioxide emissions.
Answer:
With one exception, the responsibility for regulating emissions from new motor vehicles
under the CAA rests with the EPA. Section 209(a) of the Act states in part: No state or any

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political subdivision thereof shall adopt or attempt to enforce any standard relating to the control
of emissions from new motor vehicles or new motor vehicle engines subject to this
part.[35] Section 209(b) of the Act provides for the exception; it grants the EPA the authority to
waive this prohibition for any state that had adopted emissions standards for new motor vehicles
or engines prior to March 30, 1966. California is the only state that meets this eligibility
requirement and is thus the only state in the nation, which can seek to obtain a waiver from the
EPA. In order to obtain a waiver and establish its own emissions requirements, the State must
demonstrate, among other things, that its standards will be at least as protective as public health
as any applicable federal standards. Once California obtains a waiver for a particular standard,
other states may generally adopt that standard as their own.
On September 24, 2004, the California Air Resources Board (CARB) adopted emissions
standards for GHGs from new passenger cars, light-duty trucks and medium-duty vehicles. Not
unlike the LDV Rule, Californias regulations establish standards for CO2 equivalent emissions
from two classes of vehicles on a gram per mile basis. Also like those in the LDV Rule,
Californias standards become more stringent over time. CARB initially requested a waiver from
EPA for these standards on December 21, 2005. EPA denied that request on March 6, 2008,
stating that the State did not need the standards to address compelling and extraordinary
conditions (as is required by CAA section 209(b)(1)(B)) because the effects of climate change in
California were not extraordinary compared to the effects in the rest of the country. Upon
reconsideration, EPA later withdrew its previous denial and approved Californias waiver request
on July 8, 2009. Fifteen states have adopted Californias standards. Further, California and EPA
have worked together so that the two programs converge and allow automakers to produce a
single national fleet, which complies with both programs.

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References
Lovejoy, Shaun; Chipello, Chris (11 April 2014). "Is global warming just a giant natural
fluctuation?". McGill University. Retrieved January 25, 2016
Julie Brigham-Grette; et al. (September 2006). The AAPG stands alone among scientific
societies in its denial of human-induced effects on global warming. Retrieved January 25, 2016
George E. P. Box, and Norman R. Draper, Empirical Model-Building and Response
Surfaces (Hoboken: Wiley Press, 1987). Retrieved on January 25, 2016 from
http://scenariojournal.com/article/uncertainty-and-anxiety/.
Firstcarbon Solutions: Climate Change is a Stakeholders Business. (n.d). Retrieved on January
25, 2016 from http://www.firstcarbonsolutions.com/resources/newsletters/april-2014-climatechange-is-a-stakeholder-s-business/climate-change-is-a-stakeholder-s-business/
Westaway. R. Climate Change and Business: The Importance of Stakeholder Engagement and
Communication.(January, 2011) Retrieved on January 25, 2016 from
http://www.environmentalleader.com/2011/01/04/climate-change-and-business-the-importanceof-stakeholder-engagement-and-communication/.

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