Business, Policy and the Forest Fires in Borneo

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1. Introduction The recent forest fire in Borneo Island has not only caused harmful haze or thick smokes within themselves, but also to neighboring countries. Haze, due to billowing smoke from forest fires, has clouded many parts of the archipelago, particularly in Sumatra and Kalimantan. The haze is wreaking havoc with people's daily activities and becoming a health hazard.[1] It has endangered plant and wildlife species, air pollution, and public health and safety. Uncontrolled fires and haze also have adverse economic impacts through the loss of industrial and agriculture production, the destruction of commercial timber, decline in tourism and increased health care costs.[2] Forest fires in Borneo are largely caused by both timber and oil palm corporations.[3] The fires are traced to reckless forest destruction by timber and palm-oil companies, because setting fire to the forest is the cheapest, quickest way to clear land for plantation. They were deliberately lit to clear land and make way for new plantations, timber estates and new settlements.[4] Sadly, these corporations have no notion of acceptable ethical behavior, and not taking into account environmental problems they had created. No doubt that these corporations had invested their time and capital to make profit through business transactions, but lest not forget that doing businesses in the 21st century are no longer done in isolation - unaffected by public values and pressures. Stakeholders are increasingly expressing concerns as to what responsibilities business has to the society it exists in. These concerns have lead to an appeal for the government to provide leadership to lead stakeholders and stockholders (corporations) in coordinating forest fire prevention, and businesses to acknowledge their corporate and social responsibility (CSR). Haze from forest fire will continue if

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