that restore the natural world, and that grow the local community as part of their day-to-day operations. Indeed, if our commercial enterprises are to have the capacity to continually support all humanity through time, deep environmental and social considerations are requirements, not options, for this second industrial revolution.
Incumbent upon this movement is to — once and for all — design the provisioning of consumers so that all outcomes of the industry are positive and supportive for all life on Earth. Today, we find that our current production strategies do not acknowledge or approach this criterion. For example, the production of common office white paper not only provides useful printing material but also requires the harvest of oxygen-producing, habitat-providing, and carbon-sequestering trees. The most common wood pulp bleaching process also emits into the air extremely dangerous carcinogens called dioxins and furans. Even the process for most white-paper reprocessing (generally referred to as “recycling” and considered environmentally friendly) unwittingly releases these same chemicals and uses fossil fuels (with all their negatives) to power the system.
However, the inadvertent but harmful consequences of white-paper production and reprocessing are not foregone conclusions. There are chlorine-free processes that do not emit dioxins while processing wood pulp or used white paper, as well as print surfaces consisting of a reusable synthetic polymer material instead of a wood pulp base. Electronic display of information, if designed intelligently, is another step in the right direction. These types of successful process innovations rely upon the creativity of savvy design professionals who are committed to delivering only positive product performance at a reasonable price. Intelligently redesigned industrial processes provide value that will attract a broad base of consumers at the marketplace, particularly if the new process actually enhances product appearance and performance.
1.6Are the Results Worth the Effort?
We can cite many reasons for expanding our profit-driven commercial endeavors to include both natural world and societal considerations. In 1997, ecological economist Robert Costanza and a team of distinguished researchers documented the importance of the natural world as a fundamental form of capital for human society (and for the business of millions of other species as well).5 The term natural capital means living and non-living components of the environment that work in concert to produce beneficial conditions for all life on Earth, including a favorable climate, productive soils, and a materials cycling system throughout the biosphere. Unfortunately, the capacity of natural capital to provide these vital services is continuously degraded by the many routine activities of industrialized man. Costanza and his research team recommend that business leaders recognize and acknowledge the value of the natural world and that industries actively address the challenge of restoring and supporting all forms of natural capital, just as they do with more conventional types of capital-like production machinery, office equipment, and buildings. Although natural capital is generally considered a common property resource (owned by no one but vital to all), clean air and clean water are just as essential to sustained positive business activity as privately held equipment or monetary wealth.
Another opportunity for substantial progress involves the treatment of employees and the relationship between employees and the organization. A growing number of business leaders have begun to recognize the direct payback for actively supporting their employees and communities in a variety of ways. Organizations typically invest substantial time and money to attract and continually train their staff, so long-term retention of skilled and satisfied employees in a productive work environment is a significant asset for business. Competent workers who are comfortable, properly equipped, and fairly compensated most often perform more productively and creatively and display loyalty to their companies.
Relatedly, business leaders can cultivate interrelationships among the organization, its workforce, and the surrounding community. Movement-oriented leaders have learned that circumstances benefitting their employees and communities also benefit their companies. They are finding that becoming more involved in the fabric of community life pays dividends in terms of recognition as solid community members and supporters of civic improvement. Further, they are cultivating mutually beneficial associations with other nearby businesses by combining resources for a common purpose, such as group purchasing, or by exploring whether one company’s waste product could be an asset for another. Chapter 4 discusses in detail business leaders who are particularly focused on developing strong support structures with their employees and the surrounding communities.
Strategic philanthropy results in an improved local living community that attracts and holds top employees. Often locally owned businesses with deep roots have a rich history of investing in their local communities, and they subsequently enjoy the long-term benefits of a more stable and productive workforce. Conversely, because corporations have philanthropic restraints placed on them by their corporate charters, inspired leaders will sometimes establish foundations with the role of allocating sizeable financial resources toward a variety of social causes. Indeed, creative minds in business have devised impressive community partnerships that help all parties involved.
Today, we find numerous examples of benevolent projects that benefit society, nature, and the organization. An endowment scholarship fund for low-income students who enroll in an undergraduate sustainable business program is an example of a particularly effective hybrid initiative that provides a critical cutting-edge education experience to those who may not otherwise have this opportunity. The underwriting organization would then have an opportunity to advance its own efforts toward sustainable practices by providing internships for these students and then hiring the most promising interns to participate in the company’s transition. In addition to providing real value to the participating business, this ingenious program also benefits the natural world and the human community, and it offers disadvantaged but talented students the opportunity to apply sustainable business theory in a real-world setting.
Let’s now briefly turn our attention to an opportunity for improvement of the durable goods manufacturing sector. Product demand volatility is a constant challenge for supply-chain manufacturers and big-ticket item producers. Drastically reducing the frequency and intensity of product demand changes (both downturn and upturn) can help stabilize a company’s business operation and the size of its workforce. Cyclical expansion and contraction of a company’s labor force in order to align with product demand is an expensive proposition for business and a negative influence for communities. In Chapter 2 we will discuss at length one particular about-face strategy that, among other things, works to significantly reduce the oscillating demand cycle for products over time, lower long-term production costs, decrease the extraction of raw materials, and stabilize community jobs.
For the past several decades, concerned citizens have looked toward government for relief from the litany of serious problems that accompany commercial endeavors, and most have been largely disappointed. A remaking of business by business with the outcome of simultaneously promoting profitability, people, and the planet is outlined in the chapters that follow. Today, manufacturing, engineering, architecture, construction, health care, and a variety of service sectors are already actively involved in the evolution of this movement. As we will see, government and our formal education system also play important roles, and the coordinated efforts of private, non-profit, and government sectors are needed to give this movement the best chance of lasting success.
Interestingly, sustainable business differs from previous social reform movements in that it lacks both a single visionary leader and a central location of origin; rather, it is inspired by an assortment of creative thinkers and doers throughout the world and, in some ways, is linked to traditional Eastern thought. Many people from a variety of backgrounds and settings have set the ball rolling, and hopefully, a much larger group will add to the current momentum of change and further champion this emerging revolution. But the evolution of the movement is at a critical point in its early stage, and the next set of choices by engaged businesses will significantly influence
