Business Ethics and Corporate Governance, Second Edition

TRADE AND THE ENVIRONMENT

Historically, nations have had widely varying environmental protection standards. With the increasing recognition that natural resource degradation is a global concern, countries have now begun to negotiate agreements on environmental issues. The first such agreements such as the 1987 agreements, however, have reflected the growing recognition that international trade and environmental protection are intrinsically linked. In the future, any firm with international dealings will have to take environmental issues into consideration.

Because countries have different environmental standards, firms looking to market their services abroad may find it hard to convincingly demonstrate their environmental responsibility to green ...