Inexpensive energy is becoming a thing of the past. The prices of oil and gas are rising. Due to depletion of fossil fuels, it is becoming increasingly difficult to harvest these natural resources. Canadian projects to develop the oilsands are being cancelled due to the excessive cost of the work. However, despite the high cost, businesses are still developing these resources due to an excessive demand. The International Energy Agency warns that $53 trillion will be needed by 2035 just to reduce emissions to the point where global warming is only two degrees Celsius. Despite this “Inconvenient Truth” and high cost to save this depleted public good that is our earth, fossil fuel is still in heavy demand, and heavily supplied.
What is the ethical thing for a business to do in this situation? Aiming for profit, a business will develop fossil fuels. Despite having a high production cost, there is a great demand for fossil fuels and they produce a high profit. However, these businesses have a social responsibility to the earth and the environment. The responsibility they hold is to innovate. Although fossil fuels are the primary good sold on the energy market, through innovation companies can change pollution habits.
Innovation may have a high cost relative to the cost of staying with Fossil Fuels, but is miniscule relative to the social cost of environmental damage.
References:
Freeman, Edward. “Stakeholder Theory.” YouTube. YouTube, Web. 11 Sept. 2014
https://www.youtube.com/watch?v=Ih5IBe1cnQw
http://www.cbc.ca/news/business/days-of-cheap-energy-over-iea-figures-show-1.2663195