This Won’t Make Business People Happy

Katherine Martinko on Treehugger.com comments on the recent report from the World Resource Institute regarding the reduction of consumption:

This topic tends to be avoided in corporate boardrooms because it challenges the traditional business model that has proven so economically successful; but the WRI argues that a transition to alternative models of providing goods and services to consumers is inevitable. It’s better for companies to get on board with this now, to start exploring and innovating, to figure out ways of “delinking from increasing resource and environmental impact,” than to be irrelevant and outdated with the inevitable arrival of more transformational companies in the near future.

The WRI’s paper makes three recommendations as a starting point for businesses to become aware of resource limitations:

1. Do the math by looking openly and honestly at their dependency on natural resources and the associated limits on business growth;
2. Take a leadership role by using their influence to change the conversation with key stakeholders; and
3. Transform the business to one that will thrive in a resource-constrained environment.

Consumers are driving this change, too. People are catching on to key phrases like “circular economy,” “cradle to cradle,” and “eco-efficiency,” wanting to see these associated with the products they buy. A shift is happening already, and the sooner big companies realize this and start rethinking their use of resources, the better off we’ll all be.

This is all oddly reminiscent of a story from last year about Millenials not driving cars, and how this was forcing businesses to relocate from office parks in the suburbs, which are generally unserviced by mass transit, into the downtowns, where at least buses will provide service. The managers seemed shocked at this revelation that the Millenials didn’t care to drive – whether for environmental reasons or just not interested in driving (with the associated costs). The behaviors of the oncoming generations will change as their perceptions of how the behaviors of preceding generations have shaped their own reality – and their own chances of survival of themselves and their children.

If they see this as a matter of moral behavior, then companies who do not incorporate that thinking into their economic models may run into some unpleasant surprises.

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About Hue White

Former BBS operator; software engineer; cat lackey.

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