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

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.