Fundamentals of Sustainable Business. Matthew Tueth

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      Many well-intentioned social and economic reform efforts have historically focused on relieving the symptoms of our troubles rather than on an overhaul of the underlying systemic problems. One example is the emphasis in our nation on combating illegal drug sales rather than on targeting the root causes for societal demand for such substances. Another example is government bailouts of failing industrial sectors such as the auto industry or commercial banking. These types of ill-advised policies squander billions of public dollars on symptoms without significantly affecting the core systemic issues permanently miring us in the same untoward situations. If we maintain the same type of misdirected superficial approach for our current industrial dilemma, we can expect similar results. In short, nothing changes if nothing changes.

1.5An Intelligent Beginning

      Auspiciously, a fresh, systemic, solution-oriented approach has been quietly taking shape over the past couple of decades that leverages the inextricable links among business, society, and the natural world. Although this approach involves environmental themes, it is not merely a continuation of the well-intentioned but largely ineffective modern environmental movement. Rather than heavy-handed government regulators attempting to coerce business into specific actions or end results, our potent approach originates inside business itself. Instead of a bevy of regulatory requirements adding to the overall costs and complexity of doing business, this new strategy finds business, among other things, improving its economic performance. Leaders from all business sectors — extractive, processing, supply chain, manufacturing, service, and retail — and from all business sizes — sole proprietor to multinational corporations and for-profit companies to non-profit institutions — and even governmental departments have the opportunity to join their innovative and inspirational counterparts and begin the transformation of their own organization.

      A word of warning to those whose interest is peaked: this movement is not about pulling the old recycling bins out of storage, turning down the office thermostat, or even meeting those governmentmandated pollution and worker safety regulations. As the coming chapters will explain, this movement involves a series of universal and sweeping changes in our approach to production and consumption of goods and services that will dramatically and positively affect the very core of business and society. Now let’s review a bit of history concerning the evolution of our current de facto production systems.

      The western industrial revolution began in northern England in the late 18th century and spawned new technologies that first produced textiles and later other goods in a superior fashion to previously existing methods. This new approach gradually proved to be a significant advantage over the simpler and less efficient technologies of the past and produced lower cost goods that were then made available to a much larger market. But this revolution, led by early British industrialists, lacked a long-term comprehensive design plan; the single short-term goal was to provide British commerce a major advantage over other exporting nations. This technological revolution did achieve that goal, and Great Britain used its superior navy to firmly establish trade relationships for its manufactured items. Soon, this fresh industrial technology spread across political boundaries to continental Europe and the new fledgling United States of America.

      Unfortunately, the fossil fuel energy choices, linear cradle-tograve material strategy, and unsavory working conditions combined to also deliver a legacy of pollution-induced illness, short supplies of key production materials, denuded global farmland, and Russianroulette-style global climate-change risks that we pass on to our children. Clearly, this catastrophic endowment was not part of a plan crafted by industrialists throughout the recent past. Rather, the snowballing deleterious effects resulted from a lack of thoughtful and intelligent planning early in the revolution. Had pioneering industrialists set their sights on an industrial system that could indefinitely supply humanity the goods and services for a high quality of life, we would have no present need for such a drastic and immediate change in course.

      Fortunately, we now have the opportunity to reverse the devastatingly unfortunate blunder of proceeding without an inspired and intelligent design plan. Various key instigators of this new movement have begun by crafting innovation components that are intended to deliver only positive long- and short-term outcomes for all world community members. Momentum within the movement provides a growing opportunity to not only re-invent businesses into efficient, profit-driven enterprises but also to design organizations that are intentionally adaptive, 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