One of our favorite historian-scientists here at ComingAnarchy has some unorthodox thinking on environmental issues. Below, an abridged excerpt from a last week’s Financial Times.

The Green Lobby: Scientist and author Jared Diamond believes businesses can help to solve the world’s environmental problems

By FIONA HARVEY 1088 words 10 February 2006 Financial Times London Ed1 Page 12

Jared Diamond says he is booed by environmentalists when he talks about business: “They call me a sell-out, say I’m corrupt and that I’ve taken the money and leapt into bed with big business.” But, he shrugs: “It doesn’t bother me.”

The biologist, thinker and Pulitzer Prize-winning writer has aroused the ire of some sections of the green movement by co-operating with large companies—and insisting that business has a role to play in remedying environmental problems.

Pollution, desertification and stress on water supplies, he believes, could potentially cause the collapse of modern life, in much the same way that the overuse of resources and external environmental changes have caused the demise of earlier civilisations.

But Prof Diamond sticks to his arguments: businesses play such a large role in modern life that it could be difficult to imagine progress on key environmental issues without the co-operation of the corporations.

Moreover, he says, an awareness of environmental issues in business thinking is a good discipline for managers, and can even save companies money. This is because taking into account environmental considerations—such as how to clean up pollution or minimise use of resources—requires managers to consider vital business issues such as waste and inefficiencies, and relationships with employees and consumers.

He says: “If you want to cut down on the amount of resources you need to bring into an area, that saves money. If you reduce the amount of waste you produce, that saves money. Using less energy saves money too. And if you make the water dirty, that could be a health problem for your employees. If you alienate the local community, and you are operating in a democracy, you may get thrown out, or you may get people trying to disrupt your business.”

Reputational risk also plays a role, although a lesser one. Bad environmental and social practices can attract negative publicity, even boycotts, that can lose sales. Employees can feel demoralised if they think they are working for an organisation that is harming people.

For these reasons, building an environmental awareness into management thinking from the start, rather than seeing such an awareness as a burden or an afterthought, makes for better management throughout a project.

Prof Diamond recounts an experience that convinced him of how valuable a role large businesses could play in preserving the earth’s natural resources, as well as exploiting them. A few years ago he went to Papua New Guinea with WWF, the conservation group, to look at some oil works. “I went expecting to see the usual oil company mess,” he says.

“It shocked me when I arrived there to find that the oilfield had been managed more scrupulously than most national parks. If you want to see tree kangaroos by daylight in Papua New Guinea, go to the Chevron oilfield. You’ll find the shyest and most beautiful animals there.”

Chevron’s part in preserving the local flora and fauna was born not of altruism, but of business sense, Prof Diamond says. “They want to make money. And they discovered that they could make more money by being clean than by making messes.”

Once businesses have realised it generally costs little more, and can often end up costing less, to behave in a responsible manner, those practices propagate through the company and into the corporate world.

In his book, Collapse: How Societies Choose to Fail or Survive, Prof Diamond sets out 12 of the most serious problems the world faces, arguing that any one of them could result in catastrophe. These include deforestation and the loss of habitats, soil erosion and degradation, water shortages, toxic pollution and climate change.

Prof Diamond can come up with plenty of examples of bad practice to warn businesses of the danger of ignoring environmental problems. He cites the case of Rio Tinto, which had a copper mine in Papua New Guinea where local people complained that their fishing waters were being polluted. Prof Diamond says: “Eventually, this led to a civil war on the whole island for 10 years.” That was bad for business and cost the company money, he notes drily. Rio Tinto now employs environmental consultants who work to prevent problems occurring.

However, Prof Diamond is optimistic that business people will respond to the need to tackle the planet’s ills. This may be driven much more by self-interest—there will be no one to sell to in a world broken apart by wars over environmental resources—than by concern for the disappearance of animals or plants, but that is not the only factor in play.

Another is the simple fact that business people are as subject as anyone else to concern for the planet’s and their children’s well-being.

Prof Diamond notes: “If a chief executive is finding that his children come home and say I heard that your company is making a mess, why are you doing that, that has a big effect.

“Children learn a lot about these things, they are very interested (in environmental issues). If (business people) are seeing their children come home upset and angry, saying I’m ashamed about you, that really shakes them up.”


COMMENTS / 8 COMMENTS

[...] interviews and talks afterwards (I’ve previously posted about his comments on the subject here). For whatever perceived failings, multinational corporations are subject to far more scrutiny than [...]

ComingAnarchy.com » Blog Archive » Congo’s Mines and the Great Corporate Hope added these pithy words on May 10 07 at 8:09 pm

Many parts of America are facing severe water shortages. According to MSNBC :
“This year is shaping up as drier than any in at least a century in Arizona.”

The water shortage is causing a growing dispute between the US and Canada. Canada has an abundant supply of freshwater, but some Canadians don’t want their national resource to be diverted to the US. There’s a report about it.

Regarding how businesses help the environment, it all depends on how ethical and responsible a company is. For example, Monsanto dumped toxic chemicals in Alabama, and it took a lawsuit to force the company to clean up, after the health of many people were damaged.

Mi-Hwa added these pithy words on 12 Feb 06 at 1:31 pm

Without commenting on Diamond’s comments at all (in general I like what he says, if not every detail) but there isn’t a thing in this article that wasn’t lifted straight out of his most recent book. It would’ve been nice to see some new examples from him, reflecting events in the time since he finished writing “Collapse.”

Mutantfrog added these pithy words on 12 Feb 06 at 1:57 pm

The potential role for business in protecting the environment reminds me of something Fukuyama wrote in TEOH:

...[D]efense of the environment, far from requiring a break with modern technology and the economic world created by it, may in the long run require that world as its precondition… the mainstream of the environmental movement recognizes that the most realistic solutions to environmental problems are likely to lie in the creation of alternative technologies, or technologies to actively protect the environment.

Saru added these pithy words on 12 Feb 06 at 4:39 pm

I read somewhere that wireless technology is now all over the undeveloped world. We can expect no unsightly phone lines will mar the pristine charm of the rainforests, other issues notwithstanding. Why even in our own country business interests are, as you say, hard at work making conditions better for a teeming underclass.

Hootsbuddy added these pithy words on 13 Feb 06 at 7:36 am

What’s the solution to the US wanting more fresh water from Canada? Pay (more) for it.

Unfortunately many in the enviro-lobby hold an underlying assumption that business is the epitome of pure greed and evil. But for those who do care for the environment without being stuck in Marxist idiocy, there is the knowledge that business and market driven approaches to environmental problems hold great potential. For example, I think many multinational oil companies are much better world citizens (because they are more accountable to a wide range of stakeholders) than are many of the government-run ones of the Middle East-most of which are inefficient, corrupt, horrible polluters and secretive with not an ounce of accountability outside a core group of insiders.

Governments can only do so much by trying to coerce people to save the enviroment. Profit is a much better incentive, and many corporations are waking up to the possibilities of making money while playing a part in improving the environment.

snow added these pithy words on 13 Feb 06 at 9:21 am

I agree with Snow – profit is a far better way to go than coercion, The challenge is to find a way to make environmental protection truly profitable. The example of Chevron, for example, is almost certainly an evaluation that the PR and litigation costs of a dirty site outweigh the minor costs of good stewardship. How do we persuade power companies that sulfur mitigation is the right thing to do when the current administration gives waivers to the old facilities? No-one will build a clean plant, even if they preferred to, in competition with older plants that should invest in clean technology but won’t…

Dr. Alfred Russel Wallace added these pithy words on 13 Feb 06 at 12:48 pm

Ah, this is why I love so much of Diamond’s work.

Environmental (read: health, since this is really the main reason most of the moderate left ever signed on to the Earth movement in the first place) protection is cost-efficient, but only in the long run. In the short run, it isn’t.

I cannot wait for the day that the corporate sector begins to truly factor in the long-term costs and benefits of their practices, so that environmental/health lobbyists do not have to resort to cheap publicity and lawsuits to make it worth their (the companies’) while to act responsibly. The government should offer economic incentives for companies to respect certain standards, indeed, but this would not be necessary if companies with long-term visions looked at their costs.

If companies made 50-year risk analyses (even with a very broad vision like, “Our company is well-known and respected worldwide for providing high-quality services and products at good prices”) they would need to look at the impact on the health of their staff and buyers, the knock-on effect on the economy, the effect of the environment on the property prices where their workers are and what that means for local schools, relocation costs, etc…

Litigation and legislation are not the only answers to corporate responsibility. Long-term planning would also do…

Elizabeth added these pithy words on 13 Feb 06 at 1:26 pm
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‘They say that I’m a sell-out’

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