Lesson 2: Social Responsibility

Community

Two major social issues that affect a business and the community are business closings and pollution of the environment.


Business Closings

Many Canadian communities have grown and developed around a single major company or industry.


In Alberta, the closing of coalmines and the decline in the oil industry have left many workers without jobs. Sometimes, this has resulted in the complete or partial closing of a town. When a company decides to close a plant or an office, people in the community lose their jobs. The loss of wages has a ripple effect on other businesses in the area. For example, although only 800 people were employed at the coalmine in Nordegg, Alberta, the town’s population was 2500 in the early 1940s. A decline in coal markets caused the coalmine to close in 1955, and this once-booming town became a ghost town. Since 2002, it has recovered somewhat as a small town servicing recreation interests. Other towns disappeared entirely; Mountain Park (located south of Edson) went from 1500 people in 1950 to 0, with only a cemetery remaining.

Although a company must remain profitable to survive, some socially responsible actions can be taken. These include advance notice to employees and the community when a large employer is forced to close its operations partially or completely. Large corporations might offer severance payments, early retirement, and retraining programs.

Environmental Pollution

Think about the following kinds of pollution resulting from some industries and how they can be harmful. Then, click the pollution type to link to explanations of these.


the release of gasses or solid particles into the air; a contributing factor in illness and agricultural and timber losses as well as property damage from rot and discoloration
the discharge of solid or liquid materials into lakes and streams from industrial establishments; makes water unfit for human consumption and enjoyment, kills aquatic life, and leads to losses through the destruction of fishing grounds and the cost of extraordinary water purification measures
solid wastes such as bottles, tin cans, and automobile bodies and operations such as strip mining in which the top soil is stripped to expose the minerals, particularly coal; defaces the natural beauty of the land and, in some cases, destroys important wildlife habitats
the disposal of radioactive material through storage either above or below ground; a severe health hazard
noise from industrial plants, airplanes, and automobiles; can cause nervous disorders and sleep disturbances
the often excessive use in the production of food of pesticides to control insects ; can cause cancer; side effects of many are unknown
Through stringent monitoring, inspection, and enforcement procedures, Alberta Environment promotes and expects responsible stewardship of Alberta's resources. Although business has been quick to recognize the problems of pollution and is generally anxious to correct these effects wherever possible, control is expensive.

Consumers are demanding that companies build products that are environmentally friendly, and Canadians are increasingly willing to pay extra for products and services if pollution and waste are reduced. Many companies realize that producing environmentally friendly products and services is important for their profitability. Consequently, they have invested billions of dollars in pollution abatement, recycling, and alternative manufacturing techniques.