Sustainable Business vs. Pure Profits
In 1970, Milton Friedman argued that, "There is one and only one responsibility of business . . . to engage in activities designed to increase its profits. To burden business with wider goals is pure and unadulterated socialism." The debate pertaining to whether or not the single aim of wealth generating is an act that can be considered a social good has continued ever since. Andrew Zolli of Fast Company recently wrote an article entitled Business 3.0 that explores this debate. It states that advocates for capitalism and the singular responsibility of wealth creation continue to stand against the backers of capitalism unified with a social responsibility. In an effort to satisfy the demands of both sides of the latter mentioned debate, many corporations are attempting to work within the confines of both arguments. Further, as the argument rages on, solutions are not being created or properly implemented and our environment is suffering as a result.
Improvements need to happen now, not later: natural resources are rapidly dwindling: resources like potable water, arable land, fresh air, fish, aluminum, silver, steel, in addition to fossil fuels are being unnaturally stressed. Corporations like Walmart are already feeling it because they work on a global scale. Energy consumption is clearly on the rise: within the last 50 years, the amount of energy used on a global level has increased 400 percent. Reports indicate that within the next 15 years one out of every three people on the planet will not have access to drinking water, or clean drinking water. The widespread global problems are something people are going to have to start seriously thinking about. The latter mentioned issues are not something that will occur a couple hundred years down the road, the seeds of devastation have been planted and are very close to being reaped –some studies reveal that within several decades freshwater scarcity will become an issue that limits world development. This month’s issue of National Geographic (click side picture) features startling evidence that “From Greenland to Antarctica, the world is losing its ice faster than anyone thought possible”.
The necessary changes in the way that corporations function and create wealth will have to include a variety of solutions if humankind is to receive any benefit. Not only will corporations have to rely on cleaner energy sources, but also waste will have to be reduced. Ultimately, corporations are going to have to take their responsibility to society seriously or dire consequences will result. Governmental changes need to be implemented, including changes in policy. Should there be a “carrot and stick” approach? Perhaps more taxes should be taken from corporations that engage in environmentally hazardous activities and incentives given to those that engage in sustainable ones. Such changes will open the doors to important improvements that will help to preserve the world’s natural resources and to ensure that planetary welfare (“a greater responsibility for the whole”) remains a primary focus of all capitalistic ventures.
Tuesday, June 5, 2007
National Geographic Cover