Managing Environmental Issues Simulation
Resource: Managing Environmental Issues Simulation
Complete the Managing Environmental Issues simulation located on your student website.
Write a 1,050- to 1,400-word paper in which you discuss the relationship between this simulation and environmental justice. Include the following:
- Identify each of the stakeholders.
- Describe the ethical thinking or philosophy of each stakeholder.
- Identify the conflicting or competing priorities of each stakeholder.
- Describe how these tensions can be understood as environmental justice issues.
- Include the budget you came up with to accommodate the various interests (you can use a screen shot or retype it)
The environmental issues simulation covers the activities of the pharmaceutical company Colney and Pitts. Although the company is based in California, they are looking to grow new operations in Aberdares Mountains of Kenya to develop drugs that treat prostate cancer. A rare plant known as Pygeum is indigenous to the area and it has been used for centuries to treat medical issues of older males by the local Kikuyu tribe. The company is investing $250,000 to research the viability of using this plant in modern pharmaceutical products, which has en estimated market size of $220 million annually. The International Center for Ethno Botanical Research (ICER) will be monitoring this project to ensure that this rate plant is not irreversibly damaged. The following paper will identify the stakeholders of this project and analyze their conflicting interests. In addition, a budget outline will be provided to show how to financially accommodate the various interests.
- Student: Jason Obertrain
- Textbook: Simulation on Student Website
- Course: SCI/362 Environmental Issues and Ethics
There are several key stakeholders will be impacted by the expansion of Colney and Pitts into the remote mountains of Kenya. First, the common shareholders of Colney and Pitts have the potential to profit immensely if the project is a success. Second, the indigenous Kikuyu people of Kenya are stakeholders because their local habitat could be changed as a result of the project. Closely tied to the local people is the Kenya Agro Forestry Research Department, which is a public agency that is responsible for protecting the environment within the country’s borders. A third stakeholder is the International Center for Ethno Botanical Research (ICER), which is a nonprofit firm with a mission to maintain environmental integrity. Lastly, the end-users of the cancer-treating drug would also be considered important stakeholders. Together, these major stakeholders have different philosophies on how to appropriately execute this project in a way that is mutually beneficial to all parties.
Ethical Philosophy of Each Stakeholder
As a for-profit company, Colney and Pitts has a primary mission of generating a profit for its shareholders. The company maintains a code of ethics and will attempt to generate the highest possible profit while maintaining this ethical standard. If it hopes to bring this product to a wide market, it will most likely come at a large environmental cost to local Kikuyu tribe. The company does not wish to cause harm to the local people, but the vast cultural differences between the two parties could lead to disagreements on what is acceptable behavior.
The local Kikuyu tribe has a long history of Swahili cultural traditions and it does not want modernize into the norms of Western society. Above all, the local inhabitants want to make sure their environment is not damaged as a result of the project. The people rely on the land for all their food, water, medicine, clothing, etc. An imbalance in the environment could be devastating for the tribe and impact the long-term survival of the locals.
ICER is a non-profit environment agency with a mission to monitor and correct concerns related to environmental degradation. The Pygeum plant has the potential to help countless people suffering from prostate cancer, but it must be harvested in an environmentally sustainable way. The organization relies on donations from 3rd parties and it must be able to show its donors it is making progress towards this mission. Therefore, the primary ethical philosophy is to make sure rare plants in Kenya are harvested sustainably, despite any lost profits that Colney and Pitts may experience as a result.
The Kenya Agro Forestry Research Department has a similar mission to ICER, but has a greater degree of power when it comes to controlling the operations of foreign corporations. If the department finds that the Colney and Pitts is depleting the environment at an unsustainable rate, they have the political means to put a stop to the operations. The primary philosophy of this stakeholder is to protect the interests of the Kenyan people and its environment.
Conflicting Priorities of Each Stakeholder
Each party has an interest in the outcome of the project, but each for different reasons. The greatest contrast in interests is between Colney and Pitts and the local Kikuyu tribe. The California-based company is primarily interested in generating short-term profits, while the locals are mostly interested in protecting their native lands for future generations. In order correct this conflict, it will be necessary for the company to conduct the operation in a way that benefits the Kikuyu tribe. The most effective way of doing this providing support for the environment and avoid overstepping ethical boundaries. Another conflicting interest to Colney and Pitts is the ICER, which is dedicated to environmental sustainability even it means costing the company profits. Avoiding conflict will require that the company works closely with the organization and provides them with access to conduct their mission effectively (Killing 2012).
Budget to Accommodate Various Interests
A suitable budget for this project should allow each party to pursue it primary mission successfully. Colney and Pitts stands to make a large profit from the project and should support the other parties in their operations. For instance, a portion of the profits should go to the environmental ICER to ensure that they can adequately monitor the health of the local environment. In addition, the local Kikuyu Tribe and Kenyan authorities should be compensated in the form of land leases and royalties for the extraction of raw materials from the area. The Kenyan government can also impose taxes and export tariffs to ensure that it is generating sufficient revenue from the operation. A fair distribution of the budget will allow each stakeholder to have a positive interest in the project.
The environmental issues simulation highlights the importance of stakeholder interests in the international business deals. Cultural differences between each party are very large, making it a challenge reach agreements that benefit all parties equally. Creating a budget that meets each stakeholder’s needs and protects the environment is essential to the success of the project. In summary, the simulation has provided valuable lesson related to the balancing of stakeholder needs.
Killing, P. (2012). Strategies for Joint Venture Success (RLE International Business). (Vol. 22).