Ecologically Conscious Organizations

This chapter addresses the problems of ecological consciousness in business organizations, with a special focus on value orientation and business models. A large body of literature has investigated the value orientations of businesses, but the topic of ecological consciousness has been less studied in this context. Based on a summary of the work and reports of major scientific organizations and programs, the chapter justifies why it is meaningful to examine ecologically conscious business organizations.

This chapter describes the importance of business models. The term “business” usually refers to business organizations or business enterprises that are primarily motivated by profit. However, ethical, social, and ecological considerations can also be part of the functioning of a genuine business enterprise. In fact, business practices can only be justified when they are good for society, and do no harm to nature. After reviewing the most relevant concepts related to innovative and sustainable business models, this chapter highlights the definition and six key dimensions of business models promoted by Chesbrough and Rosenbloom that represent a shared framework for the comparative analysis of ecologically conscious business organizations.

This chapter examines the concepts of “ecology” and “human ecology” as elements of the transdisciplinary study of man-made environmental problems. It then presents the different approaches to “consciousness” in Eastern and Western traditions. The chapter continues by showing how “ecological consciousness” differs from “environmental consciousness.” It emphasizes that ecological problems can only be solved if the relationship between nature, society, and human individuals is well understood, and if we recognize that the environmental crisis is the inevitable consequence of an instrumental rationality embodied in the institutions of modernity such as modern capitalism, industrial technology, individualism, and mechanistic science. The chapter summarizes the concepts of deep ecology, ecological economics, and the circular economy, and different ideas such as ecological conscience, land ethics, Gaian ethics, and moral responsibility. Finally, the chapter comments on the real-world relevance of some selected worldviews such as Christianity, Gandhi’s philosophy, and Buddhist economics.

This chapter presents different ideas about how business organizations can implement ecological consciousness in their functioning, and what the underlying values are that may guide them. It covers, inter alia, the “moralist model” of companies, the “ecological worldview,” “sustainability-driven businesses,” “true business sustainability,” “entrepreneurship inspired by nature,” “environmental commitment,” the “really responsible company,” “ecological entrepreneurship,” and “ecologically sustainable business.” The chapter suggests considering those business organizations as ecologically conscious that are willing to put ecological concerns at the center of their functioning, and that are able to operate in a different way to prevailing materialistic, one-dimensional, and profit-maximizing businesses.

This chapter presents two samples of ecologically conscious business organizations. One sample consists of eight internationally well-known ecologically conscious enterprises, including Green Monday, Houdini Sportsware, Interface, Natura, Organic India, Patagonia, Scott Bader, and TerraCycle, while the other sample contains fourteen ecologically conscious businesses based in Hungary, including MagNet Bank, Pendits Winery, Pipacs Bakery, Kör Architect Studio, Béres Pharmaceuticals, NES Shoes, Pannonhalmi Abbey Winery, Hajtás Pajtás, ALTEO Energy, Ecoizm/Zöldbolt, Bio-Drog Berta, Réthy Fashion, Nekedterem Hungary, and Skanska Hungary. The chapter presents and analyzes their value orientations, raison d’être, and definitions of success. The chapter concludes that the operation of these companies is based on values such as respect for nature, responsibility, a holistic approach, circularity, well-being, and cooperation. Their raison d’être is mostly the pursuit of social, ecological, and economic sustainability, the exercise of authenticity, the protection of health and integrity of people and nature, and self-realization. The businesses in the samples interpret success in a multidimensional way. Financial profit is not the only objective, but a means of ensuring long-term survival.

This chapter analyzes the business models of ecologically conscious business organizations in the international and the Hungarian sample in a comparative way. The elements and characteristics of the business models are presented in six main dimensions, including the value propositions, market segment, cost structure, and profit potential, the structure of the value chain, position within the value network, and competitive strategy. Common attributes of ecologically conscious businesses are—compared to the market average—less environmental impact, greater social responsibility, and more attention to a wider range of stakeholders. The genuine value commitments of the former can support their cooperative-, knowledge-sharing-, and resilient functioning.

This chapter explores the current global context of ecologically conscious business and develops some conclusions about the future of business. At present, humanity is not operating in a sustainable way, and mainstream economics is in conflict with the solutions required to reach a state of “one-planet compatibility.” Earlier efforts in international politics and the business world did not succeed in overcoming the obstacles to sustainable change. Aiming to achieve deep transformation and a new economic paradigm, promising new initiatives and conceptions are emerging, such as the “wellbeing economy,” “Emerging New Civilization Initiative,” “Ecological Civilization,” “diverse economies,” “collaborative enterprises,” and “progressive business models.” However, to meet the requirements of the ecological and social reality of the Anthropocene, business organizations should develop radically new solutions and unusual business models through reconsidering and changing their underlying assumptions, core values, and raison d’être. Important inspiration for doing this may be found in the genuine social, ecological, and spiritual value commitments and innovative practices of ecologically conscious business organizations and the exemplary people behind them.