Green Business as the Path to a Sustainable Future

Introduction: The Problem with Industrial Capitalism

It is a well-known fact that industrialization and capital accumulation over the last three hundred years have fundamentally endangered our planet. In a drive toward efficiency in production and distribution, great minds of the last several centuries built a global capitalist economy that has allowed businesses to grow at the expense of native peoples around the world, workers, and the environment. Unchecked capitalism has led to pollution, environmental degradation, and global inequality. More problematic is the way people's cultures have been shaped by the logic of capitalist efficiency — many people now view more production, more consumption, and attempts to outsmart nature through technological advancement as positive values. In a process where a "consumption boost" is seen as a precursor to "market growth," many people have completely forgotten about long-term sustainability (Norberg, 2005, p. 149).

Identifying the problem of modern capitalism, however, is not enough to solve it. A better question is: what can be done about it? Many people call for the abolition of capitalism, but that is hardly a solution. The socialist alternatives offered by the Soviet Union and other members of the Communist bloc proved no more efficient at guaranteeing social justice or building a clean environment. More importantly, capitalism is here to stay because people believe in it. The best hope for a better future is therefore to reform capitalism by encouraging businesses to go green. In other words, green business should be the future — and the principles of green business should be incorporated into college curricula.

Defining Green Business

Green business is defined as one that is "based on selling green products and services or one that adopts green practices and procedures in more traditional undertakings," where both practices and procedures "help the world and the budget" (Young, 2010, p. 53). The green business concept suggests that it is possible to prosper economically while remaining environmentally friendly at the same time. It does not disavow capitalism but acknowledges that the problems we face today — pollution, global warming, the destruction of forests, and others — stem from the "uneconomically wasteful use of human and natural resources" (Hawken, Lovins, & Lovins, 1999, p. 10). The purpose of green business is to build a sustainable future in which natural resources are not valued merely in market terms or for short-term goals, but as limited resources that function best when used in accordance with natural environmental processes.

Implementing a green revolution is not an easy task. Many businesses still operate on the old principle of earning the most with the least use of resources, with little regard for the environment unless their actions are effectively curtailed by law. The development of green business requires that business people and ordinary citizens change their attitudes toward business, consumption, and nature. Corporate social responsibility must be incorporated into the corporate structure.

Corporate Social Responsibility and Attitude Change

Indeed, many in the fields of business and economics recognize that the nineteenth-century legal understanding of the corporation is problematic today. If corporate governance in the past dealt primarily with fiduciary responsibilities and the protection of shareholder rights, today it should encompass "how corporate decisions affect both employees and the larger community," including the environment (Spackman et al., 2010, p. 136). Green business must find "a balance between meeting the strategic goals of the company (serving stakeholders, making a profit, etc.) and respecting and understanding the social and environmental impact of the company's actions" (Spackman et al., 2010, p. 136).

The challenge is how to change the attitudes of business people. Gary Hirshberg, the CEO of Stonyfield, an organic yogurt producer, argues that there is an answer. He contends that "nature and business are born allies — potentially the richest partnership in the history of capitalism" (Hirshberg, 2008). The key to this alliance, he says, is sustainability. Businesses should emulate nature's model, which allows the interdependent processes of our planet to nourish themselves. By adopting this model, businesses can earn more and benefit humanity without endangering the environment.

Real-World Examples of Green Business in Practice

Hirshberg describes current models in agribusiness as inefficient. Scientific interference in the natural trade-offs of agricultural processes requires greater use of chemical fertilizers and fossil fuels, forcing fishermen, oystermen, scallopers, taxpayers, lumberjacks, and "in the long run all of us, especially our children, pay a terrible toll for this unnatural approach to 'efficiency'" (Hirshberg, 2008). Hirshberg does not speak in theory alone; he backs up his arguments with real examples. He and his company adopted a green business model, benefiting their customers, suppliers, the environment, and the company itself. While the yogurt industry has grown by five to seven percent per year over the last eighteen years, Stonyfield grew by twenty-seven percent annually (Hirshberg, 2008).

Many companies and governments around the world are adopting the principles of green business. Johnson and Suskewicz (2009) argue that embracing the idea does not simply mean using new technologies, but focusing on four major components: a technological system that enables green business, a new and innovative business model, a fitting market-adoption strategy, and a favorable government policy. They specifically note that government policies should be directed not just at technology but also at business models. There are already examples where such multi-layered policies are being adopted. The government of Abu Dhabi built a city called Masdar that runs entirely on clean technologies. In Israel, Shai Agassi's company launched an electric-automobile network called the Better Place, with the purpose of decreasing dependence on oil.

The Better Place initiative incorporates the multi-layered model proposed by Johnson and Suskewicz: it uses new technology, an innovative business model, a favorable market niche, and the support of government officials. President Shimon Peres introduced a policy initiative regarding car imports: in the past all cars were subject to a fifty percent tax, but under the new policy "the tax on gas-powered cars would rise to 72%, while electric vehicles would be charged only 10%" (Johnson & Suskewicz, 2009, p. 58).

Conclusion: Persevering Toward a Sustainable Future

Norberg, J. (2005). In defense of capitalism. Academic Foundation.

Spackman, A., Ross, C., Donaldson, C., Feldman, L., Griffis, P., Stephan, E., & Siciliano, M. (2010). Clean, green, and not so mean: Can business save the world? Reference & User Services Quarterly, 50(2), 135–140.

Villano, M. (2011). Selling green. Entrepreneur, 39(11), 52–56.

Young, B. (2010). Changing the color of business. Georgia Trend, 26(3), 53–58.

Appendix 1: Source: Johnson & Suskewicz, 2009, p. 57.

Appendix 2 — Survey Questions:

1. Should the values of sustainability and green business be incorporated into school curricula?

2. Do you believe business programs effectively teach the values of green business?

3. Do you believe that adopting social and environmental responsibility will yield greater profits for businesses?

Survey conducted with twenty MBA students. One student assisted in facilitating the survey by providing access to a website through which the author composed and distributed the questions.