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In today's global economy, businesses are increasingly recognized for their ability to generate profit, but they are also increasingly expected to contribute positively to sustainable development. Sustainable development is no longer a peripheral concern for businesses; it has become a central factor in determining corporate success and responsibility. The United Nations Sustainable Development Goals (UNSDGs) provide a comprehensive framework for addressing global challenges. These challenges include environmental sustainability, social inclusion, and economic growth, with Goal 6 Clean Water and Sanitation, standing out as particularly important. This goal aims to ensure the availability and sustainable management of water and sanitation for all.

Water is an essential resource, underpinning all aspects of life, from individual health to ecosystem integrity and economic prosperity. In Australia, where water scarcity is a pressing issue due to the country’s arid climate and vulnerability to droughts, the ethical management of water resources has become a particularly critical concern. The ethical issue at hand involves the delicate balance between corporate water consumption and the need to preserve water resources for the well-being of communities, the environment, and future generations.

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This assessment will explore the ethical implications of corporate water management in Australia, focusing on how businesses impact water resources and the broader community. By analyzing real-world cases, aligning these issues with UNSDG 6, and considering the roles of both corporations and individuals, this paper aims to highlight the significance of ethical water stewardship in promoting sustainable development.

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Water is fundamental to life on Earth and is crucial for environmental sustainability, economic activities, and social well-being. In Australia, a country characterized by its dry climate, water scarcity is a recurring problem. Managing this precious resource ethically is a complex challenge for corporations, which must balance operational needs with the rights of communities and the environment. The ethical issue revolves around how businesses utilize water, the extent of their impact on water resources, and the responsibility they bear in ensuring that water use is sustainable and equitable.

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Whitehaven Coal’s Unauthorized Water Extraction: Between 2016 and 2019, Whitehaven Coal was found to have unlawfully extracted 1 billion liters of water from a local water source, a violation that occurred during one of Australia’s most severe droughts. Despite this breach, the company was fined only $200,000. This amount was widely criticized by environmental groups, who felt it was insufficient given the scale of the violation (Wikipedia).

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Challenges Faced by Australian Businesses

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Challenges Faced by Australian Businesses

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Australian corporations face several challenges when it comes to ethical water management, including:

Over-extraction of Water Resources: Many industries extract large amounts of water to support their operations, which can lead to over-extraction, reducing the availability of water for local communities and ecosystems. For example, the mining sector in Australia, particularly open-cut coal mining, requires significant amounts of water for dust control and mineral processing. This water consumption can lead to the depletion of local water resources and cause environmental degradation (Wikipedia).

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Pollution and Contamination: Industrial activities, particularly those in construction and agriculture, can result in the discharge of pollutants into water systems. Such pollutants can harm aquatic life and pose significant health risks to humans. One example of this is the case of ADCO Constructions, which was fined $30,000 for poor sediment control that led to contaminated runoff affecting the critically endangered Climbing Galaxias fish in Curl Curl Creek. This case highlights the critical need for businesses to adopt effective environmental management practices to minimize pollution (Daily Telegraph).

Compliance with Environmental Regulations: Adhering to environmental laws and regulations is a significant challenge for businesses. Non-compliance not only results in financial penalties but can also damage the company’s reputation. For instance, Thomson Resources Limited was fined $85,000 for failing to manage contaminated water during the 2022 wet season, violating environmental protection orders (The Courier-Mail).

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Despite the challenges faced by businesses, some organizations in Australia are adopting proactive measures to ensure responsible water management:

Water Stewardship Programs: Many businesses are implementing water stewardship initiatives to promote sustainable water use. For example, the Alliance for Water Stewardship (AWS) Asia-Pacific provides training and support to businesses that want to incorporate responsible water practices into their operations (Australian Water School).

Ethical Water Product Labels: A growing trend involves the introduction of ethical water labels on products, allowing companies to disclose their water usage and management practices. This transparency empowers consumers to make informed purchasing decisions and encourages companies to adopt sustainable water practices (Smart Water Magazine).

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Water is an essential resource for both environmental sustainability and economic prosperity. However, corporate mismanagement of water resources in Australia has led to significant issues affecting ecosystems, communities, and industries.

Statement Identifying the Real-World Ethical Issue

The core ethical issue revolves around the unsustainable management of water resources by Australian corporations. This mismanagement results in environmental degradation, social inequities, and economic challenges, all of which are intensified by Australia's vulnerability to droughts.

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Several factors contribute to this ethical dilemma, with corporate activities playing a central role:

1. Over-extraction of Water Resources: Industries such as agriculture and mining are major contributors to water over-extraction. The agricultural sector, which accounts for approximately 75% of Australia’s total water use, exacerbates water scarcity, especially during periods of drought. This extraction places immense pressure on already limited water resources.

2. Pollution and Contamination: Industrial activities often lead to the discharge of pollutants into water bodies. This has been particularly problematic in construction projects, where inadequate sediment control can result in water contamination. As in the case of ADCO Constructions, where sediment runoff threatened endangered species, the consequences of poor water management practices are far-reaching.

3. Inadequate Compliance with Environmental Regulations: Failing to adhere to environmental regulations has resulted in serious legal and reputation consequences for several companies. Thomson Resources Limited’s failure to manage contaminated water during the 2022 wet season is an example of how non-compliance with environmental protection orders can lead to both financial and reputation damage.

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consequences of corporate water mismanagement are far-reaching:

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consequences of corporate water mismanagement are far-reaching:

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https://sdgs.un.org/goals/goal6

Environmental Degradation: Over-extraction and pollution lead to the destruction of aquatic ecosystems, loss of biodiversity, and a decline in water quality. The Murray-Darling Basin, one of Australia’s largest and most important river systems, has experienced significant ecological damage due to poor water management practices (State of the Environment, 2021).

Social Impacts: Communities that rely on local water sources face significant challenges when water resources are mismanaged. Reduced water availability affects everything from personal consumption to agricultural production. This creates social tensions, particularly in rural areas where livelihoods depend on access to water.

Economic Consequences: The economic impacts of water mismanagement are also profound. Industries dependent on water, such as agriculture and manufacturing, face operational risks when water resources are scarce. Furthermore, companies that violate environmental regulations may face costly legal battles and reputation damage that can affect their bottom line.

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Billions of people still lack access to safe water, sanitation, and hygiene, despite improvement in the provision of these basic services. Water scarcity is a growing problem in many parts of the world, and conflicts and climate change are exacerbating the issue. In addition, water pollution is a significant challenge which affects both human health and the environment in many countries. Achieving universal coverage by 2030 will require a 6-fold increase in current global rates of progress on drinking water, a 5-fold increase for sanitation, and an 8-fold increase for hygiene. Boosting infrastructure investment, improving cross-sectoral coordination, and addressing climate change is key to getting SDG6 back on track.

Targets 6.1 and 6.2: Despite progress, 2.2 billion people still lacked safely managed drinking water services, 3.4 billion lacked safely managed sanitation services, and 1.9 billion lacked basic hygiene services in 2022. While the majority live in rural areas, the unserved population is decreasing in rural areas and stagnating or increasing in urban areas. Achieving universal coverage by 2030 will require an increase of 5 to 8 times the current rate.

Target 6.3: An estimated 58% of wastewater generated by households was safely treated in 2022, based on data from 140 countries and territories. Trends for domestic wastewater suggest that little, if any, progress is being made towards the target of halving the proportion of unsafe discharges by 2030.

Target 6.4: Water use efficiency rose from $17.4/m3 in 2015 to $18.9/m3 worldwide in 2020, which represents a 9% efficiency increase. Around 57% of countries presented a water use efficiency equivalent to $20/m3 or less in 2020, compared to 58% in 2015.

Target 6.4: At the global level, water stress remains at a safe level of 18.2% in 2020, but this figure masks vast regional variations and indicates a 1.2% increase from 2015 to 2020. In 2020, water stress levels ranged from high in Southern Asia and Central Asia to critical in Northern Africa. The situation in Western Asia and Northern Africa is particularly concerning since it registered an 18% increase in water stress levels from 2015 to 2020.

Target 6.5: One in two countries still lacks effective frameworks for sustainable water management. A lack of cross-sector coordination over water use, between agriculture, industry, energy production, and household supply, threatens the achievement of several SDGs, including those on food, energy, and life on land. While progress has been made globally since 2015-from 49/100 in 2017 to 54/100 in 2020-the rate of implementation needs to double to achieve the target.

Target 6.5: Data from 2017 and 2020 show that only 32 out of 153 countries that share transboundary rivers, lakes, and aquifers have 90% or more of those waters covered by operational arrangements.

Target 6.6: The extent of surface water bodies, including lakes, rivers, and reservoirs, is rapidly changing across the entire planet, with one in five river basins experiencing high (i.e. above natural) fluctuations in surface water during the last 5 years.

Target 6.a: ODA disbursements to the water sector decreased between 2015 and 2021 from $9.1 billion to $7.8 billion, a decrease of 15%. Total ODA commitments to the water sector have also reduced by 13% from $10.8 billion in 2015 to $9.4 billion in 2021. Commitments peaked at $13 billion in 2017 and have decreased every year since.

Target 6.b: Since 2016, the percentage of countries having procedures for local community participation defined in law or policy has remained high (over 70%) for both rural drinking water and for water resources management. However, the percentage of countries with high levels of participation remains consistently low (under 40%).

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Goal 6 | Department of Economic and Social Affairs

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Ensure availability and sustainable management of water and sanitation for all

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Case study illustrating corporate Water Management 

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Case study illustrating corporate Water Management 

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Whitehaven Coal’s Unauthorized Water Extraction: Whitehaven Coal extracted 1 billion liters of water without proper licensing, a violation that occurred during one of Australia’s most severe droughts. The company was fined $200,000, a penalty that was considered by many to be insufficient considering the severity of the breach.

Sustainable Development Goal (SDG) 6 and Corporate Water Management Ethics in Australia: SDG 6 focuses on ensuring the availability and sustainable management of water and sanitation for all. This goal encompasses targets related to improving water quality, ensuring access to safe drinking water, and promoting water-use efficiency across all sectors. For businesses, adopting practices that align with SDG 6 is not just a legal or regulatory requirement but also an ethical obligation.

Relevance of SDG 6 to Corporate Water Management in Australia: While most Australians have access to managed drinking water and sanitation services, water quality and affordability remain pressing issues, particularly in remote communities. Corporations play a key role in addressing these challenges by adopting sustainable water management practices that align with SDG 6 targets.

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Implications for Businesses: Incorporating SDG 6 into corporate water management strategies can lead to a number of positive outcomes, including improved operational efficiencies, risk mitigation, and enhanced corporate reputation. Conversely, failure to manage water resources responsibly can lead to legal penalties, reputation damage, and strained community relations.

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Addressing corporate water management ethics in Australia is pivotal for achieving Sustainable Development Goal 6 (SDG 6), which focuses on ensuring the availability and sustainable management of water and sanitation for all. The interconnectedness of environmental sustainability and human well-being underscores the necessity for businesses to adopt ethical water practices. ResearchGate

The evolution of water management policies in Australia reflects a growing recognition of the need for ethical considerations in governance. Studies have highlighted the importance of integrating diverse values and justice perspectives into water policy to ensure equitable and sustainable outcomes. IWA Publishing

By implementing integrated water management systems, engaging in collaborative governance, and investing in water-efficient technologies, businesses can significantly contribute to the sustainable use of water resources. Such initiatives not only align with global sustainability goals but also enhance corporate accountability and public trust. Figshare

In conclusion, ethical corporate water management is essential for the health of both the environment and society. Australian businesses have the opportunity and responsibility to lead by example, demonstrating that sustainable practices are integral to long-term success and the well-being of future generations.

Strategies for Achieving SDG 6 Targets : To contribute effectively to SDG 6, organizations can consider the following strategies:

Implement Integrated Water Management Systems: Adopting systems that encompass water conservation, wastewater treatment, and recycling can significantly reduce water consumption and pollution. For example, the Ecovillage at Currumbin in Queensland has successfully implemented integrated water management practices, serving as a model for sustainable development.Engage in Collaborative Water Governance: Participating in multi-stakeholder platforms allows businesses to collaborate with governments, communities, and other organizations to develop and implement effective water management policies. The Rural Water Futures Program in Queensland exemplifies such collaboration, aiming to enhance water resource management through integrated efforts ( Public sector Network) Invest in Water-Efficient Technologies: Utilizing advanced technologies to monitor and reduce water usage can lead to significant conservation. Case studies from the Department of Climate Change, Energy, the Environment and Water (DCCEEW) highlight how businesses have profited from implementing water-saving projects. DCCEEW

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Alliance for Water Stewardship Asia-Pacific. (n.d.). Ethics in business: Responsible water management. Retrieved from https://awschool.com.au/training/ethics-business-responsible-water-management/

Australian Government. (2022). Health effects of increased ultraviolet radiation. Retrieved from https://www.health.gov.au/resources/publications/health-effects-of-increased-uv-radiation

Australian Water Association. (n.d.). How Australia's SDG approach can truly ensure water for all. Retrieved from https://www.awa.asn.au/resources/latest-news/how-australias-sdg-approach-can-truly-ensure-water-for-all

Department of Climate Change, Energy, the Environment and Water. (n.d.). Water efficiency case studies. Retrieved from https://www.dcceew.gov.au/water/policy/programs/continuing/water-efficiency/case-studies

Kunak, J. (2023). Impact of synthetic fertilizers on atmospheric nitrogen levels. Journal of Environmental Studies, 45(2), 123-135.

Macquarie University. (n.d.). Corporate water accounting and accountability in an Australian context. Retrieved from https://figshare.mq.edu.au/articles/thesis/Corporate_water_accounting_and_accountability_in_an_Australian_context/19443299

Public Sector Network. (n.d.). Case study: Rural Water Futures Program. Retrieved from https://publicsectornetwork.com/insight/case-study-rural-water-futures-program

ResearchGate. (n.d.). Australian policies on water management and climate change: Are they supporting the sustainable development goals and improved health and well-being?. Retrieved from https://www.researchgate.net/publication/338008798_Australian_policies_on_water_management_and_climate_change_are_they_supporting_the_sustainable_development_goals_and_improved_health_and_well-being

Smith, L. (2022). Ultraviolet radiation and its effects on human health. International Journal of Dermatology, 58(4), 567-579.

United Nations. (n.d.). Water and sanitation – United Nations sustainable development. Retrieved from https://www.un.org/sustainabledevelopment/water-and-sanitation/

United Nations. (2023). The impact of ozone depletion on ecosystems. Retrieved from https://www.un.org/en/global-issues/environment

Water Corporation. (n.d.). Code of conduct. Retrieved from https://www.watercorporation.com.au/About-us/The-way-we-work/Corporate-governance/Code-of-conduct

Water NSW. (n.d.). Case studies. Retrieved from https://water.dpie.nsw.gov.au/our-work/plans-and-strategies/nsw-water-strategy/action-plan-2021-22/case-studies