Social and Environment Challenges pdf
Running head: SOCIA L A ND ENV IRONMENT CHA LLENGES
Social and Environment Challenges – Past, Present, Future
Beesan Witwit
City University of Seattle
1
SUCCESSFUL ORGA NIZA TIONA L CHA NGE
2
A bstract
This paper includes a brief discussion about corporate social and environment responsibility,
with a highlight on three global industries; the aviation industry, the pharmaceutical industry, and
the oil industry. The three industries have social/ environment problems that are of great concern
to the public as they impact the three components of sustainability; economic, social and
environment. The second part of the paper consists of an analysis of the oil and gas industry
impact on climate change and sustainability. The third part includes a discussion of historical
practices that helped in creating the problem. The final part contains a conclusion about the
future effect of the oil and gas industry on sustainability.
SOCIA L A ND ENV IRONMENT CHA L LENGES
3
Social and Environment Challenges – Past, Present, Future
Over two decades the awareness of environmental and social responsibility have
significantly increased, and greater expectation from corporates of adjusting their business
practices to improve their operations towards sustainability is growing (Cowper-Smith & de
Grosbois, 2011). Corporate social responsibility (CSR) is one of the main actions that
organizations perform for the good of the society and environment. Giving back to the
community and considering environmental protection are important acts that reveal the
organization’s values and commitment to developing the society.
Preuss, Barkemeyer, and Glavas (2016) defined corporate social responsibility as the
notion that enterprises have the responsibility for their impact on society beyond a narrow
economic one. In their article Preuss et al., (2016) discussed how businesses worldwide
(developed and developing) formalized their structure to reflect social responsibility and
sustainability, but the implementation requires a strong and well-enforced regulations to be
effectively adopted.
Likewise, M. Funaru and Funaru (2013) emphasized the importance of protecting and
preserving natural environment as a fundamental element in sustainable economic development.
They asserted that the use of clean energy technology and production are essential elements in
protecting the environment and natural resources. Moreover, M. Funaru and Funaru (2013)
confirmed that CSR is the work of not only organizations but also its people and consumers as
they have great influence on companies’development.
Unfortunately, there is an irresponsible behavior of some corporates towards nature
including the disposal of chemical waste in rivers or oceans, and the increase of gas emission that
causes air pollution. The reckless actions endanger the livelihood of human, plants and animals
SOCIA L A ND ENV IRONMENT CHA L LENGES
4
on this planet (M. Funaru & Funaru, 2013). A s well, the attitude of people, either in
organizations or in the society, showing inconsiderable behaviors in dealing with the
environmental issues will create serious future challenges.
A viation Industry
A viation is one of the industries that has the attention of scholars since it is rapidly
growing and has a great impact on the social/ environment responsibility. In a study by CowperSmith and de Grosbois (2011) stated that airline industry brings economic, social and
environmental impacts. However, it also has huge negative impacts on nature because of the air
and noise pollution, biodiversity loss, and waste generation (Smith & de Grosbois, 2011).
Research also revealed that the fuel consumption and gas emission highly contribute to climate
change and the impact is increasing due to the projected rapid future growth of air transport
(Smith & de Grosbois, 2011).
Cowper-Smith and de Grosbois (2011) indicated, the impact of the air transport gas
emission is greater than the emission of greenhouse gasses alone; because aircraft emit carbon
dioxide (CO2) in addition to other gasses. The gas emission that occurs directly in the sensitive
atmosphere at an altitude of 10,000 meters is ten times toxic for the environment than at the
ground level (Franklin, 2012). Temperature decrease from roughly 20 celsius at ground level to
about – 60C, which cause thermal inversion (Zawar-Reza, 2008). Regular fuel combustion
process produces CO2, but at higher altitude, there can also be incomplete combustion of the
carbon, due to the thermal inversion, which leads to the formation of a carbon monoxide (ZawarReza, 2008). The formation of carbon monoxide takes places when the oxygen present during
the combustion is insufficient to form carbon monoxide. Since fuel is a prime source of CO,
sparked-ignited internal combustion engine, where burning of the gasoline takes place at high
SOCIA L A ND ENV IRONMENT CHA L LENGES
5
pressure and temperature but not in an overabundance of oxygen (Zawar-Reza, 2008).
Consequently, at higher altitude the gas emission can be more toxic because it is more
concentrated and can be in the form of carbon monoxide. However, despite the fact that the
airline's industry leadership are aware of the social/ environmental problems, there are few
airlines who are addressing this problem through a small number of specific initiatives.
Pharmaceutical Industry
A nother industry that has controversial lifecycle sustainability compliance for customers
and communities is the pharmaceutical industry. Page, Cyr, and Richardson (2015) discussed the
pharmaceutical manufacturer's compliance with Food and Drugs A dministration (FDA )
regulations. Page et al. (2015) found that there is non-compliance behavior in the industry,
covered by political factors, influencing the FDA ’s decision-making process.
Moreover, the research showed that pharmaceutical economic performance was on the
environmental and social expense; as it has public health and environmental concerns (Page et
al., 2015). One of the main concerns is the pharmaceutical compounds and manufacturing
products disposal. In the drug operations, the organic, inorganic, and synthetic processes
involved in the pharmaceutical manufacturing that negatively impacts people; like unsafe
chemical compounds, and nature; as the extreme use of natural resources and chemical disposals
(Page et al., 2015).
Oil Industry
The third industry that has a continuous problem that is hugely impacting climate change
is the oil industry. Du and V ieira (2012) search documented that oil industry has negative social
and environmental impact, especially on global warming. The production and use of oil caused
deterioration in air and water quality in surrounding area to oil refineries. Media, governmental
SOCIA L A ND ENV IRONMENT CHA L LENGES
6
and non-governmental organizations harshly criticized oil companies for the environmental
violations, human rights abuses, detrimental impact on local communities, and breaches of labor
and safety standards (Du & V ieira, 2012).
The three discussed industries have manufacturing and business practices that are
controversial because of their effect on the livelihood of people, nature inhabitants, and global
economy. In the following sections, the focus will be on the oil industry and its practices impact
on sustainability from the past, in the present, and future.
Oil Industry Social and E nvironmental Impact
Scholars argued that oil industry is controversial because of its unethical business
practices that endanger the society, environment, and economic (Du & V ieira, 2012). Oil
consumption negatively affects the environment and human wellbeing, as it is heavily used in
generating energy in all aspects of life (Benea & Baciu, 2012). The massive usage of oil
generates huge amounts of CO2 emissions in the atmosphere that is the main cause for climate
change (Mulligan, 2010; Benea & Baciu, 2012).
Other than CO2 emission, F. García-Rodríguez, J . García-Rodríguez, Castilla-Gutiérrez,
and Major (2013) in their study summed up the main negative environmental impacts of the
refinery’s activity as follow: waste production, soil contamination, wastewater generation,
excessive water loss, and atmospheric and noise pollution. García-Rodríguez et al. (2013)
emphasized that there are serious problems to the oil the industry’s operations and processes.
These problems amount to spewing emissions into the atmosphere, draining liquid effluents in
waterways, and dumping solid and hazardous waste onto public and private lands. Therefore,
they suggest a CSR strategy that addresses those concern to prevent or minimize the harmful
impact.
SOCIA L A ND ENV IRONMENT CHA L LENGES
7
Benea and Baciu (2012) highlighted the fact that oil is the key source for transportation,
which is another cause for social and environmental problems. They also discussed the sensitivity
of transporting oil through risky routes from resources, as it has dangerous consequences on land,
water, and air. Therefore, oil companies need to invest in developing climate- friendly energy to
cover the production capacity, change the energy system and provide better livelihood in the long
run (Benea & Baciu, 2012).
Mulligan (2010) discussed the impact of the oil industry from another perspective with
emphases on energy security and fossil fuels. Mulligan (2010) stated that the depletion of fossil
fuels harming human communities and populations, where oil accounts around 34 percent of the
primary energy consumption. Climate change is exhausting Earth because of the biodiversity
loss, fisheries depletion, deforestation, and pollution that will gradually diminish the natural
resources. Oil declines will have worse impacts on people and environment, Mulligan (2010)
expected, as the growth of other energy resources as the natural gas, biofuels, and processed
bitumen require consuming more energy to obtain the same usable energy. Consequently, the
mentioned alternatives may aggravate the problem of emissions and thus further climate
insecurity (Mulligan, 2010).
Oil industry proved to be one of the main factors of endangering the life of people and the
environment. Therefore, oil companies are urged to develop or improve their production
processes to reduce the pressure and negativity on natural resources. To further understand the oil
companies practices in the refineries, the following section will include a historical discussion of
some oil industry practices that helped in creating the mentioned problems.
Oil Industry Historical Practices
SOCIA L A ND ENV IRONMENT CHA L LENGES
8
To further understand the link between oil business and climate change, this section will
provide insights on the manufacturing practices in oil refinery areas. García-Rodríguez et al.
(2013) talked about the past practices that include waste generating from production. Oil
refineries generate huge amounts of waste including: containers waste; scrap and metal waste
(lids, tubes, electricity cables, used pumps, valves, broken vehicle parts, electrodes, etc.); grease
and oil from tank-cleaning, equipment maintenance and storage of hydrocarbons; special waste
(large and small batteries, dyes, etc.); and construction waste (including contaminated land). In
developing countries, the mentioned waste is usually located at the host home, and the
international refineries lack CSR activities due to weak regulations (García-Rodríguez et al.,
2013).
A n example of the social and environmental problems provided by García-Rodríguez et
al. (2013) is A ngola’s coastal region; there are around 1500 wells and approximately1200 km of
abandoned pipelines that cause oil spills on the south A tlantic ocean. The area was established
for the refinery’s employees without any sanitation or waste collection. The refinery’s and
urban’s waste were drained in the water, causing oil patches. The oil spills formed balls of tar
that spread and covered the surface of the water. The oil coating created serious threats to
beaches, fish, and the development of coastal flora and fauna. Moreover, the death of fish and
marine species were the result of the extreme pollution, which negatively impacted the society
economically and environmentally (García-Rodríguez et al., 2013).
Magness (2007) provided another example of the oil industry environmental impact in
Canada; the oil sand operations required the removal of the forested land to dig earth layers to be
mined. Then the waste was put back into the soil, and the refineries were continuing its
operations and emitting its chemical disposals into the air, earth, and water.
SOCIA L A ND ENV IRONMENT CHA L LENGES
9
Likewise, Mulligan (2010) stated that oil operations in Canada had a devastating impact
on locals and environment. In the process of extracting the bitumen, Canada’s tar sands consume
tremendous quantities of fossil fuels, particularly the natural gas. Furthermore, the production of
biofuel has heavy consumption fossil fuel, and it even does not provide much fuel.
Mulligan (2010) provided another example of oil industry practices in Indonesia and
Malaysia who highly depend on oil in the production of palm diesel. The operations of
devastating peat forests increased fuel usage, consequently raised the gas and (CO2) emissions.
A long the process, the life of animal, plant, and human inhabitants was adversely affected.
Mulligan (2010) added, the process of finding alternative energy has negative impacts on the
efforts of reducing emissions as it requires more fuel, in which it will produce higher CO2
emissions.
In the U.S., Southern California has twenty-one oil refineries, four of them around the
city of Carson (Loewenberg, 2005). Citizens of Carson City suffered from the BP oil company
refineries for decades; the smell of benzene and other gasses fill the area, and many people had
breathing difficulties, asthma, headaches and allergies. In addition to the constant acrid smells in
the air, people lived in a state of anxiety of the ongoing accidents that are harmful to their health
and the environment (Loewenberg, 2005).
BP refineries gas emissions are causing air pollution, in 2001 there were seven shutdowns
because of serious leaks of noxious gas hydrogen sulfide accidents (Loewenberg, 2005). The
refinery process produces a byproduct known as “sour water” that emits hydrogen sulfide, the
leaks of this toxic gas is hazardous and has long-term problems (Loewenberg, 2005). A s
indicated in Loewenberg (2005) report, BP is among the top ten sources of toxic emissions in
Southern California. Moreover, the report included that oil refineries are the largest sources of air
SOCIA L A ND ENV IRONMENT CHA L LENGES
10
pollution in the USA . The gas emissions consist of volatile organic compounds (V OCs) and
benzene, which are the main ingredients in urban smug (Loewenberg, 2005).
A nother example of past practices by oil refineries is also from BP oil company in the
State of Texas. Eisberg (2010) wrote about the benzene emission in Texas City, TX ; the report
stated that BP exceeded the amounts of emissions of the nitrogen oxide, benzene, carbon
monoxide, and propane. Such amounts of emissions are unauthorized and directly affect the air
quality. Hence, BP failed to report any of these violations, and as a result, the residents of Texas
City have been affected health wise and their air polluted.
The examples of oil refineries past practices exhibited unethical behavior and lacked the
social and environmental responsibility. The violations were not limited to areas with less
regulation governing the oil industry business like in developing countries. It also covered the
developed countries that have strong and restricted regulations. If oil companies continued the
same practices in the future, many problems would arise, and that will affect sustainability.
F uture C oncerns and C onclusion
Human and environment are strongly interconnected; the environment has an influence
on human activity, at the same time, human activities affect the environment and sometimes it
can be harmful (Benea & Baciu, 2012). Energy production was essential for human development
and civilization. Hence the increased convention and industrialization caused irreversible
devastation to the environment. The rising concentrations of toxic gas in the air influenced the
temperature patterns that created the problem of climate change (Benea & Baciu, 2012).
Gough (2016) stated the increased levels CO2 in the atmosphere impacted the global
temperature to change through two main humanity activities; (1) the burning of fuel fossil in its
different shapes, oil, gas, wood or coal. (2) The forestry devastation, which caused an imbalance
SOCIA L A ND ENV IRONMENT CHA L LENGES
11
between the quantities of oxygen production. In this context, both activities are an ongoing
practice of the oil industry and applied globally. Therefore, the oil industry has a harmful impact
on the environment and the society.
From the literature review, it has been found that transportation has extreme influence on
the levels of CO2 emission (Benea & Baciu, 2012). It is also expected that the levels will rise
dramatically, Benea and Baciu (2012) reported the figures were 6444 million tons in the year
2006. The projected increase might reach 8013 million tons in the year 2020, and to 8921 million
tons in the year 2030 (Benea & Baciu, 2012).
Benea and Baciu (2012) added, the increase of temperature at the average of two Celsius
degrees would acutely influence the plant and animal species lifecycle, and the entire ecosystem
may collapse. Moreover, Benea and Baciu (2012) argued that climate change would cause global
security risks; as explained, if the planet warms 1.3 degrees by the year 2040, the world will have
many challenges including large-scale migrations, diseases spread, resources shortages, and
additional conflicts over the remaining energy resources. The imbalance in the ecosystem would
have dangerous consequences on people and the economy, which will end the sustainability
efforts accordingly.
Loewenberg (2005) highlighted people’s health if oil refineries continued its current
practices of toxic gas emission, the effect of V OCs and benzene varies from simple lung
problems to death if inhaled in high doses. A lso, it is linked to learning disabilities because of the
chronic low-level exposure. The research found that children are more likely to be the victims of
the emissions as their lungs lose a minimum of 5% of its capacity till they reach the age of 18
years (Loewenberg, 2005). Children who are exposed to air pollution, their lungs become less
elastic and calloused because they are developing. A lso, they are exposed to air pollution more
SOCIA L A ND ENV IRONMENT CHA L LENGES
12
than adults because they breathe faster and spend more time outdoors (Loewenberg, 2005).
Endangering people’s life, especially children, will threaten the societies safety, which is an
essential element in the sustainability process.
In the final notes, the present world economy highly depends on oil productions, and the
reduction of this dependence is an essential step towards sustainability (Benea & Baciu, 2012).
Mulligan (2010) pointed that if the excessive use of oil continued at the same levels, the natural
oil levels will decline. A ccordingly, the shortage of energy might create recession periods that
affects the industrial civilization undesirably.
In conclusion, the oil industry is a key element in the societies’development and the
economic prosperity. Thus, the oil industry leadership should closely consider the environmental
aspects and work for enhancing their operations to become eco-friendly. García-Rodríguez et al.
(2013) suggested that oil companies adopt an Environment Management System (EMS) to
improve their environmental situations considerably.
Gough (2016) recommended the utilization of renewable energy; wind, solar, geothermal,
hydropower, bioenergy, ocean, the hydrogen and fuel cells, and the green power, to reduce the
effect of climate change. The renewable energy is not the sole action; consumers of energy are
also encouraged to make more energy-saving decisions in their societies. Therefore, Gough
(2016) suggest that governments should encourage the investments in developing more efficient
energy resources that reduce or eliminate the CO2 emissions.
Educating the public on how to reduce their carbon footprint is their duty to prevent the
dangers of climate change is one of the important steps in creating a generation that cares to
innovate new technologies that generate eco-friendly energy (Gough, 2016). Moreover,
promoting the benefits of reducing the dependency on oil production as it will significantly
SOCIA L A ND ENV IRONMENT CHA L LENGES
13
decrease the power of politics in the world (Benea & Baciu, 2012). A ltogether, will help in
stabilizing the ecosystem and lead to the desired sustainability.
To conclude, corporates should look at the environment as an important factor that
influences their economic activity and should emerge the protection of the environment in their
strategies and goals. Environmental responsibility is a social responsibility of companies, of
public power, and the society.
SOCIA L A ND ENV IRONMENT CHA L LENGES
14
References
Benea, C. B., & Baciu, A . (2012). The geopolitics of oil and climate change. Annals of the
University of Oradea, Economic Science Series, 21(2), 70-74. Retrieved from
http://proxy.cityu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=b
th&A N=85948912&site=ehost-live&scope=site
Cowper-Smith, A ., & de Grosbois, D. (2011). The adoption of corporate social responsibility
practices in the airline industry. J ournal of Sustainable Tourism, 19(1), 59-77.
doi:10.1080/09669582.2010.498918
Du, S., & V ieira, E. (2012). Striving for legitimacy through corporate social responsibility:
Insights from oil companies. J ournal of Business Ethics, 110(4), 413-427.
doi:10.1007/s10551-012-1490-4
Eisberg, N. (2010). BP's woes continue at Texas city refinery. Chemistry & Industry, (16), 5.
Retrieved from
http://proxy.cityu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=b
th&A N=54107125&site=ehost-live&scope=site
Funaru, M., & Funaru, G. (2013). Protecting the environment: Social responsibility or legislative
constrains? Bulletin of the Transilvania University of Brasov. Series V: Economic
Sciences, 6(2), 37-42. Retrieved from
http://proxy.cityu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=
bth&A N=95565361&site=ehost-live&scope=site
García-Rodríguez, F. J ., García-Rodríguez, J . L., Castilla-Gutiérrez, C., & Major, S. A . (2013).
Corporate social responsibility of oil companies in developing countries: From altruism to
SOCIA L A ND ENV IRONMENT CHA L LENGES
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business strategy. Corporate Social Responsibility & Environmental Management, 20(6),
371-384. doi:10.1002/csr.1320
Gough, J . (2016). Economics, science and climate change. World Economics, 17(2), 31-62.
Retrieved from
http://proxy.cityu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=b
th&A N=116677489&site=ehost-live&scope=site
Loewenberg, S. (2005). South California residents hit back at BP over
pollution. Lancet, 366(9485), 535-536. doi:10.1016/S0140-6736(05)67081-X
Magness, V . (2007). Legitimacy in green: Pollution vs. profit in Canadian oil refineries. Issues in
Social & Environmental Accounting, 1(1), 54-71. Retrieved from
http://proxy.cityu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=b
th&A N=35647840&site=ehost-live&scope=site
Mulligan, S. (2010). Energy, environment, and security: Critical links in a post-peak
world. Global Environmental Politics, 10(4), 79-100. Retrieved from
http://proxy.cityu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=b
th&A N=54427650&site=ehost-live&scope=site
Page, R. A ., Cyr, D. M., & Richardson, A . S. (2015). Sustainability and stratified noncompliance
in the pharmaceutical industry. J ournal of International Business Disciplines, 10(1), 1840.
Preuss, L., Barkemeyer, R., & Glavas, A . (2016). Corporate social responsibility in developing
country multinationals: Identifying company and country-level influences. Business
Ethics Quarterly, 26(3), 347-378. doi:10.1017/beq.2016.42
Social and Environment Challenges – Past, Present, Future
Beesan Witwit
City University of Seattle
1
SUCCESSFUL ORGA NIZA TIONA L CHA NGE
2
A bstract
This paper includes a brief discussion about corporate social and environment responsibility,
with a highlight on three global industries; the aviation industry, the pharmaceutical industry, and
the oil industry. The three industries have social/ environment problems that are of great concern
to the public as they impact the three components of sustainability; economic, social and
environment. The second part of the paper consists of an analysis of the oil and gas industry
impact on climate change and sustainability. The third part includes a discussion of historical
practices that helped in creating the problem. The final part contains a conclusion about the
future effect of the oil and gas industry on sustainability.
SOCIA L A ND ENV IRONMENT CHA L LENGES
3
Social and Environment Challenges – Past, Present, Future
Over two decades the awareness of environmental and social responsibility have
significantly increased, and greater expectation from corporates of adjusting their business
practices to improve their operations towards sustainability is growing (Cowper-Smith & de
Grosbois, 2011). Corporate social responsibility (CSR) is one of the main actions that
organizations perform for the good of the society and environment. Giving back to the
community and considering environmental protection are important acts that reveal the
organization’s values and commitment to developing the society.
Preuss, Barkemeyer, and Glavas (2016) defined corporate social responsibility as the
notion that enterprises have the responsibility for their impact on society beyond a narrow
economic one. In their article Preuss et al., (2016) discussed how businesses worldwide
(developed and developing) formalized their structure to reflect social responsibility and
sustainability, but the implementation requires a strong and well-enforced regulations to be
effectively adopted.
Likewise, M. Funaru and Funaru (2013) emphasized the importance of protecting and
preserving natural environment as a fundamental element in sustainable economic development.
They asserted that the use of clean energy technology and production are essential elements in
protecting the environment and natural resources. Moreover, M. Funaru and Funaru (2013)
confirmed that CSR is the work of not only organizations but also its people and consumers as
they have great influence on companies’development.
Unfortunately, there is an irresponsible behavior of some corporates towards nature
including the disposal of chemical waste in rivers or oceans, and the increase of gas emission that
causes air pollution. The reckless actions endanger the livelihood of human, plants and animals
SOCIA L A ND ENV IRONMENT CHA L LENGES
4
on this planet (M. Funaru & Funaru, 2013). A s well, the attitude of people, either in
organizations or in the society, showing inconsiderable behaviors in dealing with the
environmental issues will create serious future challenges.
A viation Industry
A viation is one of the industries that has the attention of scholars since it is rapidly
growing and has a great impact on the social/ environment responsibility. In a study by CowperSmith and de Grosbois (2011) stated that airline industry brings economic, social and
environmental impacts. However, it also has huge negative impacts on nature because of the air
and noise pollution, biodiversity loss, and waste generation (Smith & de Grosbois, 2011).
Research also revealed that the fuel consumption and gas emission highly contribute to climate
change and the impact is increasing due to the projected rapid future growth of air transport
(Smith & de Grosbois, 2011).
Cowper-Smith and de Grosbois (2011) indicated, the impact of the air transport gas
emission is greater than the emission of greenhouse gasses alone; because aircraft emit carbon
dioxide (CO2) in addition to other gasses. The gas emission that occurs directly in the sensitive
atmosphere at an altitude of 10,000 meters is ten times toxic for the environment than at the
ground level (Franklin, 2012). Temperature decrease from roughly 20 celsius at ground level to
about – 60C, which cause thermal inversion (Zawar-Reza, 2008). Regular fuel combustion
process produces CO2, but at higher altitude, there can also be incomplete combustion of the
carbon, due to the thermal inversion, which leads to the formation of a carbon monoxide (ZawarReza, 2008). The formation of carbon monoxide takes places when the oxygen present during
the combustion is insufficient to form carbon monoxide. Since fuel is a prime source of CO,
sparked-ignited internal combustion engine, where burning of the gasoline takes place at high
SOCIA L A ND ENV IRONMENT CHA L LENGES
5
pressure and temperature but not in an overabundance of oxygen (Zawar-Reza, 2008).
Consequently, at higher altitude the gas emission can be more toxic because it is more
concentrated and can be in the form of carbon monoxide. However, despite the fact that the
airline's industry leadership are aware of the social/ environmental problems, there are few
airlines who are addressing this problem through a small number of specific initiatives.
Pharmaceutical Industry
A nother industry that has controversial lifecycle sustainability compliance for customers
and communities is the pharmaceutical industry. Page, Cyr, and Richardson (2015) discussed the
pharmaceutical manufacturer's compliance with Food and Drugs A dministration (FDA )
regulations. Page et al. (2015) found that there is non-compliance behavior in the industry,
covered by political factors, influencing the FDA ’s decision-making process.
Moreover, the research showed that pharmaceutical economic performance was on the
environmental and social expense; as it has public health and environmental concerns (Page et
al., 2015). One of the main concerns is the pharmaceutical compounds and manufacturing
products disposal. In the drug operations, the organic, inorganic, and synthetic processes
involved in the pharmaceutical manufacturing that negatively impacts people; like unsafe
chemical compounds, and nature; as the extreme use of natural resources and chemical disposals
(Page et al., 2015).
Oil Industry
The third industry that has a continuous problem that is hugely impacting climate change
is the oil industry. Du and V ieira (2012) search documented that oil industry has negative social
and environmental impact, especially on global warming. The production and use of oil caused
deterioration in air and water quality in surrounding area to oil refineries. Media, governmental
SOCIA L A ND ENV IRONMENT CHA L LENGES
6
and non-governmental organizations harshly criticized oil companies for the environmental
violations, human rights abuses, detrimental impact on local communities, and breaches of labor
and safety standards (Du & V ieira, 2012).
The three discussed industries have manufacturing and business practices that are
controversial because of their effect on the livelihood of people, nature inhabitants, and global
economy. In the following sections, the focus will be on the oil industry and its practices impact
on sustainability from the past, in the present, and future.
Oil Industry Social and E nvironmental Impact
Scholars argued that oil industry is controversial because of its unethical business
practices that endanger the society, environment, and economic (Du & V ieira, 2012). Oil
consumption negatively affects the environment and human wellbeing, as it is heavily used in
generating energy in all aspects of life (Benea & Baciu, 2012). The massive usage of oil
generates huge amounts of CO2 emissions in the atmosphere that is the main cause for climate
change (Mulligan, 2010; Benea & Baciu, 2012).
Other than CO2 emission, F. García-Rodríguez, J . García-Rodríguez, Castilla-Gutiérrez,
and Major (2013) in their study summed up the main negative environmental impacts of the
refinery’s activity as follow: waste production, soil contamination, wastewater generation,
excessive water loss, and atmospheric and noise pollution. García-Rodríguez et al. (2013)
emphasized that there are serious problems to the oil the industry’s operations and processes.
These problems amount to spewing emissions into the atmosphere, draining liquid effluents in
waterways, and dumping solid and hazardous waste onto public and private lands. Therefore,
they suggest a CSR strategy that addresses those concern to prevent or minimize the harmful
impact.
SOCIA L A ND ENV IRONMENT CHA L LENGES
7
Benea and Baciu (2012) highlighted the fact that oil is the key source for transportation,
which is another cause for social and environmental problems. They also discussed the sensitivity
of transporting oil through risky routes from resources, as it has dangerous consequences on land,
water, and air. Therefore, oil companies need to invest in developing climate- friendly energy to
cover the production capacity, change the energy system and provide better livelihood in the long
run (Benea & Baciu, 2012).
Mulligan (2010) discussed the impact of the oil industry from another perspective with
emphases on energy security and fossil fuels. Mulligan (2010) stated that the depletion of fossil
fuels harming human communities and populations, where oil accounts around 34 percent of the
primary energy consumption. Climate change is exhausting Earth because of the biodiversity
loss, fisheries depletion, deforestation, and pollution that will gradually diminish the natural
resources. Oil declines will have worse impacts on people and environment, Mulligan (2010)
expected, as the growth of other energy resources as the natural gas, biofuels, and processed
bitumen require consuming more energy to obtain the same usable energy. Consequently, the
mentioned alternatives may aggravate the problem of emissions and thus further climate
insecurity (Mulligan, 2010).
Oil industry proved to be one of the main factors of endangering the life of people and the
environment. Therefore, oil companies are urged to develop or improve their production
processes to reduce the pressure and negativity on natural resources. To further understand the oil
companies practices in the refineries, the following section will include a historical discussion of
some oil industry practices that helped in creating the mentioned problems.
Oil Industry Historical Practices
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8
To further understand the link between oil business and climate change, this section will
provide insights on the manufacturing practices in oil refinery areas. García-Rodríguez et al.
(2013) talked about the past practices that include waste generating from production. Oil
refineries generate huge amounts of waste including: containers waste; scrap and metal waste
(lids, tubes, electricity cables, used pumps, valves, broken vehicle parts, electrodes, etc.); grease
and oil from tank-cleaning, equipment maintenance and storage of hydrocarbons; special waste
(large and small batteries, dyes, etc.); and construction waste (including contaminated land). In
developing countries, the mentioned waste is usually located at the host home, and the
international refineries lack CSR activities due to weak regulations (García-Rodríguez et al.,
2013).
A n example of the social and environmental problems provided by García-Rodríguez et
al. (2013) is A ngola’s coastal region; there are around 1500 wells and approximately1200 km of
abandoned pipelines that cause oil spills on the south A tlantic ocean. The area was established
for the refinery’s employees without any sanitation or waste collection. The refinery’s and
urban’s waste were drained in the water, causing oil patches. The oil spills formed balls of tar
that spread and covered the surface of the water. The oil coating created serious threats to
beaches, fish, and the development of coastal flora and fauna. Moreover, the death of fish and
marine species were the result of the extreme pollution, which negatively impacted the society
economically and environmentally (García-Rodríguez et al., 2013).
Magness (2007) provided another example of the oil industry environmental impact in
Canada; the oil sand operations required the removal of the forested land to dig earth layers to be
mined. Then the waste was put back into the soil, and the refineries were continuing its
operations and emitting its chemical disposals into the air, earth, and water.
SOCIA L A ND ENV IRONMENT CHA L LENGES
9
Likewise, Mulligan (2010) stated that oil operations in Canada had a devastating impact
on locals and environment. In the process of extracting the bitumen, Canada’s tar sands consume
tremendous quantities of fossil fuels, particularly the natural gas. Furthermore, the production of
biofuel has heavy consumption fossil fuel, and it even does not provide much fuel.
Mulligan (2010) provided another example of oil industry practices in Indonesia and
Malaysia who highly depend on oil in the production of palm diesel. The operations of
devastating peat forests increased fuel usage, consequently raised the gas and (CO2) emissions.
A long the process, the life of animal, plant, and human inhabitants was adversely affected.
Mulligan (2010) added, the process of finding alternative energy has negative impacts on the
efforts of reducing emissions as it requires more fuel, in which it will produce higher CO2
emissions.
In the U.S., Southern California has twenty-one oil refineries, four of them around the
city of Carson (Loewenberg, 2005). Citizens of Carson City suffered from the BP oil company
refineries for decades; the smell of benzene and other gasses fill the area, and many people had
breathing difficulties, asthma, headaches and allergies. In addition to the constant acrid smells in
the air, people lived in a state of anxiety of the ongoing accidents that are harmful to their health
and the environment (Loewenberg, 2005).
BP refineries gas emissions are causing air pollution, in 2001 there were seven shutdowns
because of serious leaks of noxious gas hydrogen sulfide accidents (Loewenberg, 2005). The
refinery process produces a byproduct known as “sour water” that emits hydrogen sulfide, the
leaks of this toxic gas is hazardous and has long-term problems (Loewenberg, 2005). A s
indicated in Loewenberg (2005) report, BP is among the top ten sources of toxic emissions in
Southern California. Moreover, the report included that oil refineries are the largest sources of air
SOCIA L A ND ENV IRONMENT CHA L LENGES
10
pollution in the USA . The gas emissions consist of volatile organic compounds (V OCs) and
benzene, which are the main ingredients in urban smug (Loewenberg, 2005).
A nother example of past practices by oil refineries is also from BP oil company in the
State of Texas. Eisberg (2010) wrote about the benzene emission in Texas City, TX ; the report
stated that BP exceeded the amounts of emissions of the nitrogen oxide, benzene, carbon
monoxide, and propane. Such amounts of emissions are unauthorized and directly affect the air
quality. Hence, BP failed to report any of these violations, and as a result, the residents of Texas
City have been affected health wise and their air polluted.
The examples of oil refineries past practices exhibited unethical behavior and lacked the
social and environmental responsibility. The violations were not limited to areas with less
regulation governing the oil industry business like in developing countries. It also covered the
developed countries that have strong and restricted regulations. If oil companies continued the
same practices in the future, many problems would arise, and that will affect sustainability.
F uture C oncerns and C onclusion
Human and environment are strongly interconnected; the environment has an influence
on human activity, at the same time, human activities affect the environment and sometimes it
can be harmful (Benea & Baciu, 2012). Energy production was essential for human development
and civilization. Hence the increased convention and industrialization caused irreversible
devastation to the environment. The rising concentrations of toxic gas in the air influenced the
temperature patterns that created the problem of climate change (Benea & Baciu, 2012).
Gough (2016) stated the increased levels CO2 in the atmosphere impacted the global
temperature to change through two main humanity activities; (1) the burning of fuel fossil in its
different shapes, oil, gas, wood or coal. (2) The forestry devastation, which caused an imbalance
SOCIA L A ND ENV IRONMENT CHA L LENGES
11
between the quantities of oxygen production. In this context, both activities are an ongoing
practice of the oil industry and applied globally. Therefore, the oil industry has a harmful impact
on the environment and the society.
From the literature review, it has been found that transportation has extreme influence on
the levels of CO2 emission (Benea & Baciu, 2012). It is also expected that the levels will rise
dramatically, Benea and Baciu (2012) reported the figures were 6444 million tons in the year
2006. The projected increase might reach 8013 million tons in the year 2020, and to 8921 million
tons in the year 2030 (Benea & Baciu, 2012).
Benea and Baciu (2012) added, the increase of temperature at the average of two Celsius
degrees would acutely influence the plant and animal species lifecycle, and the entire ecosystem
may collapse. Moreover, Benea and Baciu (2012) argued that climate change would cause global
security risks; as explained, if the planet warms 1.3 degrees by the year 2040, the world will have
many challenges including large-scale migrations, diseases spread, resources shortages, and
additional conflicts over the remaining energy resources. The imbalance in the ecosystem would
have dangerous consequences on people and the economy, which will end the sustainability
efforts accordingly.
Loewenberg (2005) highlighted people’s health if oil refineries continued its current
practices of toxic gas emission, the effect of V OCs and benzene varies from simple lung
problems to death if inhaled in high doses. A lso, it is linked to learning disabilities because of the
chronic low-level exposure. The research found that children are more likely to be the victims of
the emissions as their lungs lose a minimum of 5% of its capacity till they reach the age of 18
years (Loewenberg, 2005). Children who are exposed to air pollution, their lungs become less
elastic and calloused because they are developing. A lso, they are exposed to air pollution more
SOCIA L A ND ENV IRONMENT CHA L LENGES
12
than adults because they breathe faster and spend more time outdoors (Loewenberg, 2005).
Endangering people’s life, especially children, will threaten the societies safety, which is an
essential element in the sustainability process.
In the final notes, the present world economy highly depends on oil productions, and the
reduction of this dependence is an essential step towards sustainability (Benea & Baciu, 2012).
Mulligan (2010) pointed that if the excessive use of oil continued at the same levels, the natural
oil levels will decline. A ccordingly, the shortage of energy might create recession periods that
affects the industrial civilization undesirably.
In conclusion, the oil industry is a key element in the societies’development and the
economic prosperity. Thus, the oil industry leadership should closely consider the environmental
aspects and work for enhancing their operations to become eco-friendly. García-Rodríguez et al.
(2013) suggested that oil companies adopt an Environment Management System (EMS) to
improve their environmental situations considerably.
Gough (2016) recommended the utilization of renewable energy; wind, solar, geothermal,
hydropower, bioenergy, ocean, the hydrogen and fuel cells, and the green power, to reduce the
effect of climate change. The renewable energy is not the sole action; consumers of energy are
also encouraged to make more energy-saving decisions in their societies. Therefore, Gough
(2016) suggest that governments should encourage the investments in developing more efficient
energy resources that reduce or eliminate the CO2 emissions.
Educating the public on how to reduce their carbon footprint is their duty to prevent the
dangers of climate change is one of the important steps in creating a generation that cares to
innovate new technologies that generate eco-friendly energy (Gough, 2016). Moreover,
promoting the benefits of reducing the dependency on oil production as it will significantly
SOCIA L A ND ENV IRONMENT CHA L LENGES
13
decrease the power of politics in the world (Benea & Baciu, 2012). A ltogether, will help in
stabilizing the ecosystem and lead to the desired sustainability.
To conclude, corporates should look at the environment as an important factor that
influences their economic activity and should emerge the protection of the environment in their
strategies and goals. Environmental responsibility is a social responsibility of companies, of
public power, and the society.
SOCIA L A ND ENV IRONMENT CHA L LENGES
14
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