In his revolutionary 1993 book, The Ecology of Commerce: A Declaration of Sustainability, Paul Hawken describes how companies and the country would benefit from taking a new approach to business. Hawken suggests that the climate in which businesses have operated cannot possibly continue. He points out the need for all products and energy sources to reflect their true cost. In order to achieve these goals, Hawken provides a wealth of ideas toward achieving sustainability.
In chapter four he delves into the necessity of a carbon tax in order to represent the entire lifecycle costs of fuels. Furthermore, Hawken states that the time has come for a restorative economy; what 2nd Green Revolution has referred to as the regenerative economy. In chapter nine he sets forth the following principles to serve as the foundation of sustainable businesses:
- Replace nationally and internationally produced items with products created locally or regionally. Hawken argues in favor of local economies that can reduce energy, and keep money within an economy. In addition, he believes that companies need to take responsibility for the effects they have on the natural world.
- Do not require exotic sources of capital in order to develop and grow. This rule (again formulated in 1993) speaks directly to the overleveraging of assets that led to the banking crises experienced last fall.
- Engage in production processes that are human, worthy, dignified, and intrinsically satisfying – which is the heart of social equity component of sustainable development.
- Create objects of durability and long-term utility whose ultimate use or disposition will not be harmful to future generations
- Change consumers to customers through education
Hawken’s argument can be boiled down to a manifesto that aims to reconnect businesses with their essential purpose: serving the needs of the customer. In order to do so society, must align itself with a set of values espoused in Japanese business where customers (not consumers) are treated deferentially. By gearing ones message to this constituent group, it is possible to create long term, restorative growth.
Check back tomorrow for more thoughts on Ecology of Commerce.
[image source: PaulHawken.com]
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