Ecologically Conscious Organizations, 1st ed. 2021 New Business Practices Based on Ecological Commitment Palgrave Studies in Sustainable Business In Association with Future Earth Series

This book investigates the value orientation of ecologically conscious business. It analyzes, in a systematic and comparative way, the value commitments and business models of exemplary ecologically conscious businesses from around the world.

Ecological consciousness is gaining importance in modern business thinking, as the effects of the Anthropocene ? acidification of oceans, diminishing potable water, climate change, and decreasing biodiversity ? are becoming more evident. Surviving this ecological crisis requires a radical inner transformation of humanity, and an ecological transformation of business and the economy.

This book is valuable reading for masters and Ph.D. students, as well as academics, business practitioners, and policymakers who are working in the field of business ethics, business and the natural environment, business and society, sustainability, and corporate social responsibility. It also serves as general reading for reflective practitioners who are interested in progressive, ecologically conscious businesses, ethical business functioning, and business model innovation.

In an interview in 1986, the late Erwin Chargaff, professor of biochemistry at Columbia University, answered a question if there is or there should be a place for ethics in science.

“There should be [a place for ethics in science], but can’t be. Any kind of delving into nature could be said to be sacrilegious. An American Indian prayed to the tree when he had to cut it down and asked for forgiveness. This is, of course, incompatible with any of our activities today, incompatible with science. In the 17th century, science began to cross the ethical frontier when it began delving into nature. Of course, for a while everything was fine because of the relative inefficiency of "modern science". They were so far from serious harming that this issue did not arise until our century, mainly by nuclear fission, nuclear energy, and now genetic energy, which comes from the nucleus. We have crossed the line of ethics and it is all too late now... Ethics may still be present in the laboratory, in small things that are not published. Some people do not conduct animal experiments. In my opinion, there cannot be ethics in science. This is an essentially unethical occupation. Perhaps some of its areas are less so, but you see, theoretical physics has led to the atomic bomb, and astronomy is now occupied by the Star Wars. Science has lost its innocence, is incompatible with ethics. If you want to be an ethical person, be an accountant or something.” (Chargaff, 1987, p.883)[1]

Part I Introduction

1 Ecology and Business

Research confirms that we nowadays live in the era of the Anthropocene when human activities have significant and global impact on Earth’s ecosystems. Biosphere-transforming activities of humanity – primarily through the operation of societies and economies becoming global – by today have reached such an extent that results in incomparably higher, harmful and largely irreversible changes compared to other species. It is not only our well-being, but also the survival of our own and other living being that are at stake.

To have a chance to alleviate the ecological crisis affecting our planet, spreading of ecological consciousness and a praxis focusing on the restoration of the natural environment is needed. This may enable the economy to function again as a system embedded in nature and society.

Part II Ecological Consciousness in Business Context

2 The Importance of Business Models

The research of business models has expanded over the past few years. After reviewing the most relevant concepts of innovative and sustainable business models, this chapter highlights the definition and six key dimensions of business models given by Chesbrough and Rosenbloom (2002)[2] as a common framework for the comparative analysis of ecologically conscious business organizations presented in Part III.

3 Beyond Environmental Consciousness

This chapter first examines the concept of “ecology”, including “human ecology” as a transdisciplinary study of man-made environmental problems. It then presents the evolution of the study of and different approaches to “consciousness” in the Eastern and Western traditions. After reviewing the historical roots of it, the chapter shows how “ecological consciousness” began to be distinguished from “environmental consciousness” from the end of 1960s because the latter interprets environmental problems too narrowly, degrades them to technical problems, and it cannot thus understand the root causes.

Environmental problems can only be solved if the relationship between nature, society and the individual is well understood, and we recognize that environmental problems are inevitable consequences of false ontological and epistemological presuppositions and instrumental rationality embodied in social and cultural institutions of modernity (modern capitalism, industrial technology, individualism, mechanistic science). The chapter ends with the summary of further relevant concepts of the topic (inter alia deep ecology and ecosophy, ecological economics, circular economy), even different ethical and spiritual aspects of the term (ecological conscience, land ethics, Gaia ethics, moral disengagement strategies, principle of responsibility), and its relevance for some worldviews (Christianity, Gandhi’s philosophy, Buddhist economics).

4 Ecological Consciousness and Value Orientations in Business

This chapter presents different concepts of how business organizations could realize ecologically conscious ways of functioning. It covers, inter alia, the “moralist model” of the companies; “ecological worldview”; values of “sustainability-driven businesses”; “true business sustainability”; “entrepreneurship inspired by nature”; “environmental commitment”, “really responsible company”; “ecological entrepreneurship” and “ecologically sustainable business”. According to the book, those business organizations can be considered ecologically conscious, which are willing and able to operate in an alternative way compared to the prevailing materialistic, one-dimensionally profit oriented economic system, and placing ecological aspects at the center of their mindset and functioning.

Part III Working Models of Ecologically Conscious Businesses

5 Ecologically Conscious Business Organizations and their Value Orientations

This chapter introduces the population of ecologically conscious business organizations, and presents the sample of the empirical research. The sample consists of eight international and fourteen Hungarian well-known ecologically conscious organizations. All of them are here described in order to make readers familiar with this special set of business organizations.

For the studied international ecologically conscious business organizations, the most important values are responsibility, considering future generations, holistic approach, intrinsic value of nature, material and spiritual development of all stakeholders, respect, service for all beings; acting good and well, commitment, free thinking, hard work and self-realization. Values such as cooperation, caring, diversity, empowerment, leading by example, knowledge sharing, accountability, authenticity, genuineness, transparency, compassion, generosity, love are also important for them. They also consider sustainability, circularity of systems, innovation, openness, simplicity, functionality and feasibility but these values were given less emphasis as identified during the case analyses. Non-possession, an essential value of transcending the materialistic worldview, never appeared as relevant value for the studied organizations.

6 Comparative Analysis of Ecologically Conscious Business Models

This chapter presents the business models of international ecologically conscious business organizations in comparison with Hungarian ones. Their main common attributes are, compared to the market average, more favorable environmental impacts, greater social responsibility, wider definition of and special attention to the range of stakeholders. Additionally, they intend to set an example and lead the market segment, which they operate in. They can experience higher costs and/or lower but more stable profitability, and a strong competitive situation. However, in the fierce competition, the competitive advantages derived from material benefits gained by their genuine value commitments (as confirmed by Cornell economist Robert Frank[3]) effectively help their long-term survival, pursuit of cooperation and knowledge sharing, and adaptability.

The business models of Hungarian organizations are similar to leading ecologically conscious international businesses along value propositions and cost structure. The market segments and the structure of value chains may nevertheless vary greatly. There are also remarkable differences regarding the size of the international enterprises, which are typically significantly bigger than the Hungarian ones, their profit potential are more favorable, and they operate in a global competitive environment. Primarily the smallest Hungarian organizations have to face a more challenging economic situation because they mainly struggle with financing difficulties, human resource difficulties, and deficiencies in general business knowledge (marketing, sales, finance, human resource management).

7 Raison d’être and Success in Ecologically Conscious Business

The “raison d’être” of the studied international and Hungarian business organizations are the pursuit of multidimensional (social, ecological, economic) sustainability and exercising authenticity. Their basic goals often include protection of the health, the integrity of the people in general and of the nature, preserving the quality of their life, and the service of especially their home culture, society and economy, and local communities. They strive for production of high quality products and services, pursue not growth at all costs but organic development, as well as self-realization, expression of the personal values of the owners and managers.

Both the international and the Hungarian ecologically conscious businesses interpret success in a multidimensional way: financial profit is not the only objective but a means of long-term survival of the enterprise. The real success is simultaneously harmonized nurturing, preserving and restoring of social and ecological values. An important element of the success definitions is to take into consideration the well-being of the whole stakeholder network in a wide sense.

Part IV Summary and Conclusions

8 The Future of Ecologically Conscious Business

As psychiatrist Stanislav Grof argues, the obstacles that stand in the way of transforming planetary future for the better deeply lie inside the human personality, and reflect the level of consciousness evolution of humanity. Untamed forces and absurd, violent and greedy elements of human nature prevent reorienting our concerns to ecological priorities. The global crisis is of a psychospiritual nature and that radical inner transformation of humanity, enhancing emotional maturity and spiritual awareness seem to be inevitable in order to reinforce ethical values, sensitivity towards others, accept voluntary simplicity and develop ecological consciousness. A hopeful solution could be “systemic and deep inner work with inspired action in the external world […], if it were practiced on a sufficiently large scale” (Grof, 1998, pp. 220)[5].

Investigates the value orientation of ecologically conscious business

Analyzes, in a systematic and comparative way, the value commitments and business models of exemplary ecologically conscious businesses from around the world

Serves as general reading for reflective practitioners who are interested in progressive, ecologically conscious businesses, ethical business functioning, and business model innovation