Ecobusiness: Living in the Real World
Lou de Leeuw, A Chartered Accountant, MBA and Chief Executive of Ecobusiness Consultants.Business is necessary to the community, supplying the majority of goods and services and meaningful employment. But to quote a cliche " there must be a better way" for businesses to relate to the community in which they operate.
The word Ecobusiness was created intending to encompass the two Eco's of the twentieth century Economics and Ecology, and remind business that it has more than responsibility to the "bottom line".
Oikonomia not Chrematistics
When discussing economics the Ecobusiness adopts the origins of the word namely oikonomia ( as described in For the Common Good, John Cobb and Herman Daly ), the management of the household so as to increase its value to all members of the household over the long run, with an expansion of the scope of household to include the larger community of the land, of shared values, resources, biomes, institutions, language, and history, then we have a good definition of economics for community. Cobb and Daly point out that the current understanding of economics is actually chrematistics, which is defined as the branch of political economy relating to the manipulation of property and wealth so as to maximise short-term monetary exchange value to the owner.Principles
An Ecobusiness is an organisation committed to the introduction of sound environmental principles in business and ensures these principles can be economically sustainable.
Environmental principles include:
Paul Hawken In "The Ecology of Commerce, A Declaration of Sustainability" gave the following criteria for a sustainable business:
- the protection of the biosphere,
- the sustainable use of natural resources,
- the adoption of human scale development,
- the reduction and responsible disposal of waste,
- the effective use of sale energy resources,
- an emphasise on accountability.
To ensure the economic sustainability the Ecobusiness will aim to delight its clients/customers and other stakeholders with its professionalism, high quality goods and services, and aim to be a leading provider in its market segment. Staff of an Ecobusiness will work in an environment in which their needs will be fulfilled and in which they are willing to work with passion. The Ecobusiness will strive to meet their objectives in a financially sound basis thereby safeguarding its continuing existence.
- "Replace nationally and internationally produced items with products created locally and regionally.
- Take responsibility for the effects they have on the natural world.
- Do not require exotic sources of capital in order to develop and grow.
- Engage in production processes that are human, worthy, dignified, and intrinsically satisfying .
- Create objects of durability and long-term utility whose ultimate use or disposition will not be harmful to future generations.
- Change consumers to customers through education."
Against the Trend ?
Some will note that many of these principles go against what are currently regarded as "sound business principles". Exports are not encouraged, debt is avoided, each stakeholder receives benefits, and the total costs of business will be accounted for as a cost of the product not a cost to society as they are now. The goods and services produced will satisfy real needs and be durable. The environment will be protected and communities will benefit from their labour.There are of course many businesses abiding by these principles already, many of them small and community based. Some are larger but again active in the communities in which they operate. They would all say they are living in the "real world" and many more are wishing to join them. They can be businesses that are :
- Businesses wishing to start in an "environmentally positive" way eg. Renewable energy technologies,
- Businesses that are "environmentally positive" that wish to expand and increase their market penetration, existing renewable energy technologies wishing to move from a " Cottage" industry to a "main stream" business,
- Businesses that are "environmentally negative" that wish to reduce their environmental impact, eg. waste management companies that wish to change from land fill to waste reduction and recycling.
Doing Business in the Real world
No-one would say that adopting these principles would make "doing business" easy, but business never is. The adopting of theses principles will see the business reviewing its products to reduce pollutants and waste, look at motor vehicle use, the use of energy in its products etc. They will in many cases need to educate their customers in the benefits that they derive from the products and in many cases have prices higher than their non-ecobusiness competitors. But as for any businesses these are changes to be met, assessed and overcome, often with the help of outside consultants.When an economic rationalist calls for us to live in the real world we can only agree, remind them of the " true" meaning of economics and ask them to join an Ecobusiness.
Lou de Leeuw may be contacted by Email : lou@ecobusiness.com.au
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