Integrating Ethical Issues in Business Decisions: A Case Study on Evaluating the Biodiversity Impacts of a Large-Scale Hydropower Project

29 Pages Posted: 27 Oct 2010 Last revised: 26 Feb 2014

See all articles by Julian Rode

Julian Rode

Helmholtz-Centre for Environmental Research - UFZ

Marc Le Menestrel

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Anthony Simon

affiliation not provided to SSRN

Luk N. Van Wassenhove

INSEAD

Date Written: October 26, 2010

Abstract

We study how the main business actor in the Inambari hydropower project in Peru (EGASUR) treats the biodiversity impacts of its planned operations. Selecting the choice of the Environmental Impact Assessment (EIA) as the crucial decision, we complement an analysis of expected business interests with an ethical analysis. The analyses reveal that following prima facie business interests would lead to a “minimalist” EIA, which raises ethical issues both from a consequentialist and a deontological perspective. Based on observations from Peru, we find indicators that ethical issues may indeed have been neglected or denied by EGASUR and that a failure to anticipate and appropriately deal with possibly unethical aspects is underlying some of the increased opposition against the project. We argue that anticipatory ethical analysis can help companies make more sustainable business decisions.

Keywords: Development, Biodiversity, Environmental Impact, Business Decisions, Ethical Analysis

Suggested Citation

Rode, Julian and Le Menestrel, Marc and Simon, Anthony and Van Wassenhove, Luk N., Integrating Ethical Issues in Business Decisions: A Case Study on Evaluating the Biodiversity Impacts of a Large-Scale Hydropower Project (October 26, 2010). INSEAD Working Paper No. 2010/86/TOM/INSEAD Social Innovation Centre, Available at SSRN: https://ssrn.com/abstract=1698184 or http://dx.doi.org/10.2139/ssrn.1698184

Julian Rode (Contact Author)

Helmholtz-Centre for Environmental Research - UFZ ( email )

Department of Economics
Permoserstr. 15
Leipzig, 04279
Germany

Marc Le Menestrel

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
34 93 542 27 23 (Phone)
34 93 542 17 46 (Fax)

Anthony Simon

affiliation not provided to SSRN ( email )

Luk N. Van Wassenhove

INSEAD ( email )

Boulevard de Constance
77 305 Fontainebleau Cedex
France
(33) (0)1 60 72 42 66 (Phone)
(33) (0)1 60 72 40 49 (Fax)

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