Apathy towards sustainable development
One inspiring industrial ecology-inspired puzzle out there is the perception that a large part of the population in the developed countries are apathetic towards sustainability topics. This gets mostly reflected in consumer trends. For example, C&A has a wide range of organic cotton textiles in its stores. This apparel costs a bit more, but makes a world of change, according to C&A, in third world countries. This, not only on the environmental side but also in relation to abhorrent working conditions and local health. However, organic cotton is not widely popular. Sales have risen in the past years, but not to such an extent that shows that people are consciously buying it. Other sustainability trends are also only picked up by minor parts of the population.The first explanation is one put forward by Lertzman (The myth of apathy, 2008) included that it is not apathy but a psychoanalytical defense mechanism. With this mechanism, the anxiety caused by continuous climate-change campaigns is actually too large to manage. While trying to defend ourselves to the insurmountable challenge that we are facing, we rather shut down completely and subconsciously pretend the problem is not there. This theory is very valuable. Although, some might argue that the news about eutrophication does not create the same immeasurable anxiety that would push memories about abuse to the subconscious level.
Second, a variation of the trickle-down effect could be at play. In this variation, I propose that the middle class of developed countries actually see the merit in sustainable products. However, marketing is especially focused at these people and is very successful. In the traditional trickle-down effect it is the pricing that distinguishes the upper class from being able to buy certain products that lower classes can’t. Once this is no longer the case and everybody is able to buy the product, the upper class is no longer interested in this. In very much the same way the middle class nowadays buys sustainable products. The somewhat higher prices distinguish them from perceived lower classes and the higher moral value of the product places them above higher classes. This variation of the effect could only be true if my perceived sense of the wealthy not being as much interested in sustainability as middle class individuals.
A final explanation consists of the priority argument. This is the most down-to-earth explanation as it talks about a conscious choice people make in everyday life. The reason people would not buy sustainable products or live more sustainable, would be because of other priorities. A common example is the priority of poverty over sustainable development. This would entice people to say: ”why not first solve poverty and hunger in developing countries, or even our own country, while you are trying to change the planet.” Theoretically, intergenerational equity is a part of sustainable development but in the general public, and also most academic courters, it is only about environmental protection.
The business of business
A task is at hand. This task is quite harsh for a concrete thinker as myself. The task is to describe an ex ante position on following proposition:
"the
business of business is to increase its profits."
Speaking from a sustainability point of view, the business of business can refer to governmental interference. By which we mean the creation of legislation, bounding the current economy into a more environmental mind set. It can also refer to ngo's, which out of filantrophical reasons mendle with ongoing afairs. Then there are a multitude of other options, the most obvious one being consultancy. In an industrial ecology point of view, every one of these is a viable option. Governmental activities are firmly entwined with the economic system. It's prime motive is indeed the help the economy into establishing a balance that procures the needs of its subjects. Our current economic system only knows two states; growth or recession, but not balance. As growth is the optimum option, the government indeed needs to increase the profits of its nations economy. And by all means not stop these profits by ruthless restrictive legislations.
Ngo's are a different story. They interfere in different ways. This alone is a whole discussion worth, in which ngo's can be quite harmful to companies with ill-practices. This type of ngo tries to stop current practices. However, it is my firm belief that this type of ngo does not achieve anything. And quite likely cannot stop a business from making its profit. Other ngo's take it concrete path in which they themselves try to put into practice what they preach. These do not medle with business, as they themselves become a business side-tracted conception.
The best example of the third option is consultancy. In which, a service of knowledge is provided to the inquiring company. This service, however, is sold for money and thus creates a profit. No distinction can thus be made between a sustainable oriented consultancy firm and more traditional oriented firm. Profit is the key factor at hand.
To conclude with a valuable position on the proposition. In the current economic setting, the only way of medling, or maybe rather communicating, with current businesses is by talking the same language. And the language of business entails profit. This is one of the most straightforward paths to changing this business. Other efforts in which institutions make it their business to decrease profit will end up in profit oriented discussions. Unable to communicate, unable to entice any effects. However, in the future, as social involvment grows, this might be able to change. But in order for this to change, our social system itself shall fundamentally entice our current economic system to alter.
Feedback for “Business of Business is increasing its profits
BeantwoordenVerwijderenIn general your post is clear and comprehensible. In the beginning you take your time to analyze the phrase under discussion and then you break it down to smaller concepts. This is a smooth and helpful way to introduce your reader to the topic.
Furthermore, I really liked your remark that ” Our current economic system only knows two states; growth or recession, but not balance” and I would like it, if you have elaborated a little more on that in order to go deeper in the concept of profit nowadays.
All in all I believe that your post has a good and concrete structure; each paragraph represents an argument with the last one to be the conclusion. However concerning the content, I claim that you could have taken the risk to elaborate a little more on “the environment and the governmental interference through a sustainable view” since this is far more disputable and vague as a relation between business and profit in comparison to your other two arguments.
I hope my feedback was helpful enough to you and I will be glad to answer to any inquiries that you may have on it.
Hello again William,
VerwijderenFeedback for Industrial Ecology Puzzle:
In your IE puzzle, with my understanding you try to highlight and explain the puzzling apathy that characterizes people in developed countries towards the imminent aggravation of environmental problems. Although one could tell that does not see enough direct correlation between the two variables to be a puzzle, and I personally have my doubts, you managed to present your explanations briefly and eventually to make your points clear. I really liked your selection of arguments as they give a clear and multi-layered elaboration on the matter. As far as your structure is concerned I believe that it was nicely organized. Regarding the content, you could elaborate more on the introduction of your correlation setting the context of your puzzle better in order to avoid vagueness and misinterpretation.
As I understood in your Industrial Ecology Puzzle you give three alternative explanations to the question why people in developed countries seem to be apathetic towards sustainability issues. Now I totally agree with you on that observation per se. However, considering the specific task we were given, I am afraid I can not quite recognize a correlation within your chosen puzzle. The populations behavior towards sustainable development is obviously different from what you would expect or want it to be. It represents one variable within the correlation. Maybe you could identify the according second variable by asking yourself what made you develop this expectations? Is it the fact that in developed countries there are ever more sustainable solutions such as organic cotton are offered to consumers. Or maybe one could imply that the majority in developed countries receives sufficient education so one could assume there should be awareness about the need of taking action to encounter environmental problems. And I am sure there many more variables that suit your correlation.
BeantwoordenVerwijderenMoving on to your explanations I really like that you managed to build all three of them upon existing concepts in literature and science (Lertzman´s Myth of apathy, the trickle down-effect, the priority argument). I think this gives a very solid fundament to your argument that makes it hard to challenge them. Also it shows you put effort into developing reasonable arguments.
With your business to business blog entry I have to admit I had some difficulties. I am not sure whether I understood your point. From my understanding (and please correct me if I misinterpreted that) you distinguish between three possible options of how the current economic system tries to make businesses internalize the social and environmental impact caused by their actions. Concluding you basically say that these options do not yield the wished results because they fail to communicate in the only language business would ever understand: profits. So by that I guess you imply that the only way to make businesses in the future take responsibility for their actions is to find a way that does no longer exclude the one from the other, but makes responsibility profitable. To achieve this our social system has to change fundamentally.
Does this reflect what you wanted to state? Assuming it does, can I withdraw that you agree with the Friedman proposition - right now the business of business is to make profit - but you see it as highly desirable to change that in the future?