Capitalism Vs Natural Capitalism
Capitalism is a financially profitable, nonsustainable aberration in human development as it doesn’t completely conform to its own accounting principles and liquidates its capital and calls it income (Hawkins & Lovins, 1999, p. 5). Though this is true, the natural resources and living systems, as well as the social and cultural systems that are the basis of human capital, must be categorized as valuables in a system of natural capitalism due to the neglection of assigning any value to the largest stocks of capital it employs (Hawkins & Lovins, 1999, p.5). Natural capitalism therefore implies proper use and maintenance of the natural system while efficiently deploying human capital for production. Natural capitalism is also a deviation from
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Strategies of Natural Capitalism
(1) Radical resource productivity
Substantial downsizing of resources regarded as destructive or wasteful could be viewed as a major business opportunity. Restructuring the production technology and design could see natural capital such as water, minerals, and energy increase in vast quantities. A company that wishes to use this natural capitalism approach has two options to choose from. Other than undertaking a holistic system design, the organization can interpret new alternative technologies that improve natural processes.
The idea of whole system design is directed by the model of expanding returns. This indicates that the new system design will cost the company less while providing resource conservation. The lean manufacturing is the ideal example of how the concept of whole system design can be used by a corporation to lower production costs while improving their resource …show more content…
By restructuring its manufacturing process, the company was able to reduce energy consumption by about 90%. This method ensured reduction in costs while simultaneously reducing resource wastage using the already available technology. By including a strong human element in the formulation of the system, the company managed to present a holistic solution to a problem.
D. Sustainable economic system
To develop a sustainable economic system, the society needs to start by developing an aggressive, yet realistic, sustainability strategy. When developing such strategy, a holistic approach has to be taken. This implies incorporating the technological, economic, social and environmental aspects in the strategy. The first stem will involve identification of key sustainability areas. After doing so, the society will formulate plans and processes that will ensure that the areas of concern are sufficiently addressed.
Other than including all stakeholders from the formulation to implementation phase, the society also needs to ensure that these plans, structures and systems are consistent with the society’s capabilities and resources. The long term aggressive sustainability strategy should also be consistent with the short term
Strategies of Natural Capitalism
(1) Radical resource productivity
Substantial downsizing of resources regarded as destructive or wasteful could be viewed as a major business opportunity. Restructuring the production technology and design could see natural capital such as water, minerals, and energy increase in vast quantities. A company that wishes to use this natural capitalism approach has two options to choose from. Other than undertaking a holistic system design, the organization can interpret new alternative technologies that improve natural processes.
The idea of whole system design is directed by the model of expanding returns. This indicates that the new system design will cost the company less while providing resource conservation. The lean manufacturing is the ideal example of how the concept of whole system design can be used by a corporation to lower production costs while improving their resource …show more content…
By restructuring its manufacturing process, the company was able to reduce energy consumption by about 90%. This method ensured reduction in costs while simultaneously reducing resource wastage using the already available technology. By including a strong human element in the formulation of the system, the company managed to present a holistic solution to a problem.
D. Sustainable economic system
To develop a sustainable economic system, the society needs to start by developing an aggressive, yet realistic, sustainability strategy. When developing such strategy, a holistic approach has to be taken. This implies incorporating the technological, economic, social and environmental aspects in the strategy. The first stem will involve identification of key sustainability areas. After doing so, the society will formulate plans and processes that will ensure that the areas of concern are sufficiently addressed.
Other than including all stakeholders from the formulation to implementation phase, the society also needs to ensure that these plans, structures and systems are consistent with the society’s capabilities and resources. The long term aggressive sustainability strategy should also be consistent with the short term