Degrowth & business

Published on July 31, 2023   15 min
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0:00
My name is Egbert Dommerholt and I'm a Professor of bio-based business binarization or circular economy at the Hanze University of Applied Sciences, Groningen in the Netherlands. In this talk, I will particularly focus on business moral responsibility to contribute to the transition towards a degrowth economy. Although we all, business as well as non-business communities, have a moral responsibility in that respect.
0:27
This talk is the second in a series of three on Degrowth. In the first talk, I focused on what Degrowth entails and why we need to transition towards a degrowth economy. From a business perspective, strategies need to be developed echoing these moral responsibilities. While doing so, I think it makes sense to distinguish between corporate moral responsibilities and corporate moral responsiveness. Distinguishing between responsibilities and responsiveness has good credentials and builds on the corporate social responsibility and corporate social responsiveness construct by Archie Carroll and Wartick & Cochran respectively. In the third talk, I will sketch the outlines of what a Degrowth business model framework could look like.
1:19
In my first talk, I discussed why we need to transition towards a degrowth economy. The starting point was the sustainable development notion as defined by the World Commission on Economic Development back in 1987. As I pointed out, on a global level, fossil fuels, material resources, and CO_2 efficiency measures do not keep pace with production growth. Although we see signs of absolute impact decoupling in some regions and countries, implying a reduction of CO_2 emissions along with a growing economy, absolute resource decoupling is still very, very far away. To counter these effects, we need to transition towards a degrowth economy, which can be defined as a planned reduction of energy and resource throughput or consumption designed to bring the economy back into balance with the living world in a way that reduces inequality and improves human well-being. In my view, a degrowth economy is the materialization of the sustainable development notion mentioned earlier.