BUS268 Corporate Strategy and Environmental Change ID No.

220559588

BUS268 Corporate Strategy and Environmental Change

ID No. 220559588

Essay statement: Eco-business strategies are unable to tackle the

"ecological problem" facing humanity unless accompanied by
system-wide change through eco-institutions.

Total word count: 2,199

BUS268 Corporate Strategy and Environmental Change ID No. 220559588

Introduction

During the Anthropocene period, the impact of human activity on the biosphere caused
an urgent ecological crisis. (Malhi, 2017). To overcome this crisis, eco-business strategies offer
some solutions for sustainability, but they are not enough. For this reason, systemic change
among eco-institutions is essential. Thus, the rapid technological progress and globalization of
the Anthropocene biosphere have led to problems such as the increase in greenhouse gas
emissions, habitat destruction, and loss of biodiversity. These challenges have also emphasized
the need for a systemic approach to environmental protection and gone beyond corporate
sustainability efforts characterized as "Big Brand Sustainability" (Dauvergne and Lister, 2015).

Also, this paper discusses the transformative potential of eco-institutions such as the
principles of the Green New Deal (Tienhaara and Robinson, 2022) and the circular economy in
promoting sustainable and equitable solutions (Ellen MacArthur Foundation, 2021). These eco-
institutions will provide the necessary framework for significant changes in policy, business and
other practices. Thus, solving the environmental crisis requires a serious approach that combines
eco-business strategies with systemic changes through eco-institutions. Only then can a
sustainable and viable future for the planet and humanity be ensured.

Nature and Causes of the Ecological Problem

As previously indicated, the influence of human actions on the equilibrium and

soundness of the biosphere during the Anthropocene epoch signifies a profound shift in Earth's
history. To grasp the essence and origins of the ecological challenge, it becomes crucial to delve
into the intricacies and interplays within the Anthropocene biosphere. (Folke et al.,2021).

In the Anthropocene, the actions of humans and natural systems are intricately
intertwined, creating a profoundly interconnected world. In living things, like air, water, and
ground surfaces plus freezing areas along with weather changes - the biosphere's control is very
large (Folke et al., 2021). One key part of the Anthropocene is the increase in people, from one
billion about 1800 to almost 8 billion now. However, growth has badly affected the activity of
Earth's living part called biosphere. Human actions cause more greenhouse gas pollution and
destroy homes for animals and plants, and reduced the number of different living creatures. In
other words, the Anthropocene provides difficulties that need constant focus. For example, big
BUS268 Corporate Strategy and Environmental Change ID No. 220559588

storms, wars between countries and diseases like COVID-19 showed how quickly issues can
change the balance of all living things (Folke et al., 2021). On the other hand, the increase of
global systemic risks such as climate change and loss of biodiversity also indicate the importance
of solving environmental problems (Folke et al., 2021). In other words, the biosphere can be
protected only through a comprehensive solution that includes eco-business strategies and eco-
institutions.

Eco-business Strategy for Food, Automotive and Electricity

Eco-business strategies for food include a range of practices, including fair trade and
organic standards. These practices aim to develop sustainability in the food system. But without
strengthening eco-institutions, these strategies cannot fully solve the environmental problems
facing humanity. Thus, fair trade initiatives aim to ensure fair trade prices and improved social
and environmental standards and benefit producers.

It should be noted that in addition to large corporations entering the fair trade and organic
sectors, they are also interested in important developments that signal the changing nature of
alternative food systems (Jaffee and Howard, 2010, p. 388). As a result of this change, corporate
agrofood players began to rewrite the rules of fair trade and organic certification to favor their
interests. So the standards didn't weaken or "go out." Note that the concept of regulatory capture,
in this context, is that regulatory bodies that aim to protect the public interest serve commercial
or special interests. Through the provision of services, industry players gain increased leverage
to disrupt standards, paving the way for capital accumulation (Jaffee and Howard, 2010, pp. 238,
304-308).

The weakening of fair trade and organic standards through corporate co-optation and
regulatory capture suggests the need for eco-institutions. Thus, with expanding participation in
both organic and fair trade, the original ideals and transformative potential of these movements
often diminish, giving way to rapid market expansion and the consolidation of larger corporate
entities (Jaffee and Howard, 2010, pp. 376-484). For this reason, post-change alternative agri-
food initiatives should consider projects that focus on small-scale production and agro-ecological
diversity within their own rules and standards. Instead of focusing practices on the lowest
common denominator, more decentralized, semi-autonomous systems should be created that
foster competition among producers for the highest standards (Jaffee and Howard, 2010, p. 396).
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The influence of Transnational Corporations (TNCs) on the global food system also has
an undeniable impact on environmental sustainability and social justice. Although TNCs
contribute to food productivity, their economic gain often raises environmental concerns (Anaf,
et al., 2017). Without change, Transnational Corporations (TNCs) will cause wider
environmental crises, such as deforestation, habitat destruction and pollution.

On the other hand, the discussion of eco-business strategies also covers different sectors,
including sustainable automobiles and electric energy. Thus, the transition to electric vehicles
(EV) in the automotive sector is a significant change in the direction of reducing carbon
emissions (Morgan, 2020, p. 7). However, there are certain problems with the adoption of
electric cars. The production of electric cars involves the exploitation of critical resources such
as cobalt, lithium and copper in mining areas, which raise concerns such as complex and
conflicting justice. (Prause & Dietz, 2022, p. 602). To ensure a fair transition towards sustainable
mobility, these challenges must be addressed.

Furthermore, the electricity sector, which is the basis for an eco-business strategy, is
undergoing its own transformation. To mitigate the carbon footprint associated with electricity
generation, it is imperative to transition from fossil fuels to renewable energy sources. However,
the transition must be carefully made to end existing inequalities and injustices. Distributional,
recognition, and procedural justice must be considered across scales, and justice must be
understood in a multidimensional way when analyzing these transitions (Prause & Dietz, 2022,
p. 602). If energy growth continues, society will need solar panels in the next 300 years. As a
result, there will be no spare soil for plants or animals to sunbathe (Berners-Lee, 2021, p. 75).

Eco-Institutions: Circular Economy, Green New Deal and Alternative Ecologies

Exploring the transformative principles of the circular economy highlights the potential
of climate change by reshaping patterns of production and consumption. It offers a different
approach to combating climate change by fundamentally changing the way goods are produced
and used. So, in this principle, moving beyond the linear model of "take the waste" to a
restorative system where waste is designed, products are kept in use longer and natural systems
are restored. A circular economy is described as not only a shift powered by renewable energy,
but one that reduces greenhouse gas (GHG) emissions in the economy through emissions-
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reducing, energy-conserving strategif ies that embody energy (Ellen MacArthur Foundation,
2021, p. 18).

The foundational principles of the circular economy revolve around implementing

strategies to "eliminate waste and pollution, recycle products and materials, and restore nature,
driven by design and increasingly based on renewable energy and materials. By eliminating the
symptoms of a wasteful and polluting economy, this principle creates value in ways that benefit
society, business and the environment.

Hence, eco-institutions have the capacity to advance circularity by incorporating and

implementing the tenets of the circular economy across various sectors and levels of governance.
They can promote designs that prevent negative impacts and reduce GHG emissions by ensuring
the adoption of strategies to eliminate waste and pollution (Ellen MacArthur Foundation, 2021,
p. 19).

As an illustration, the repurposing of products and components contributes to energy

conservation and the preservation of valuable resources utilized in manufacturing, thereby
mitigating greenhouse gas emissions linked to both new production and end-of-life stages. This
has profound implications for industries that depend on resource-intensive manufacturing
processes. By keeping products in use longer, the demand for new production is reduced, along
with the associated GHG emissions (Ellen MacArthur Foundation, 2021, p. 20). The utilization
of recycled materials or the production of new materials, coupled with end-of-life processes like
recycling, incineration, and landfilling, serves to diminish emissions. Although recycling still
requires energy, it will be significantly less than producing new materials. For example, steel
recycling uses only 10-15% of the energy required for primary steel production. This reduction
directly leads to a reduction in greenhouse gas emissions (Ellen MacArthur Foundation, 2021, p.
20).

Moreover, the regenerative facet of the circular economy provides avenues for carbon
sequestration, emphasizing the utilization of renewable resources and enhancement of natural
systems. Adopting regenerative production practices in agriculture, aquaculture, and forestry
holds promise for positive outcomes, including the cultivation of healthy and sustainable soils,
heightened native biodiversity, and increased carbon sequestration levels (Ellen MacArthur
Foundation, 2021, p. 21).
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Also, inspired by the historic New Deal, the Green New Deal (GND) emphasizes the link
between environmental sustainability and socio-economic justice, emphasizing the need for
change to address the global environmental crisis. Therefore, the Green New Deal (GND) draws
inspiration from the historical New Deal, a set of economic policies, public employment
initiatives, and public works programs implemented by the U.S. government in response to the
challenges of the Great Depression. While the Green New Deal (GND) places a primary
emphasis on employment, it broadens its objectives to tackle worldwide environmental crises,
encompassing issues like climate change, biodiversity loss, land degradation, and plastic
pollution (Tienhaara and Robinson, 2022, p. 2). One of the main principles of GND is the idea
that the market alone cannot lead the necessary socio-economic transformation. He emphasizes
that all economic policies must have positive outcomes for equity in addition to decarbonisation.
This is because the solution to the environmental crisis requires systemic change and cannot be
achieved simply by adjusting existing market mechanisms or relying solely on technological
advances (Tienhaara and Robinson, 2022, p. 2).

Given the institutional changes required for its successful implementation, successful
implementation of the Green New Deal also requires comprehensive institutional changes
(Tienhaara and Robinson, 2022, p. 3). To achieve its goals, it is important to restructure existing
institutions and create new institutions that can effectively integrate and operate the principles.
These encompass the establishment of novel government institutions or the overhaul of existing
ones to oversee the shift towards renewable energy and the generation of green employment
opportunities.

Additionally, the GND offers a collaborative approach that involves all sectors of society,
including government, business, labor and civil society. Collaboratively, without this kind of
broad coalition of people, GND's systemic change cannot be made. Moreover, the Green New
Deal represents a transformative vision to solve the environmental challenges facing humanity.
Implementing the GND will require profound institutional changes, including the restructuring of
existing institutions and the creation of new institutions capable of implementing its ambitious
agenda.

Also, in the field of eco-institutions, the Circular Economy acts as a beacon for
"alternative ecologies". Thus, this concept advocates a holistic approach to environmental
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protection, focusing on interaction, diversity and restorative practices. As an illustration, delving

into the significance of acknowledging our essential interconnection with planetary systems will
unveil the influence of the Circular Economy on the design, management, and sustenance of
products and materials (Bauer et al., 2019, p. 116). Which is the direct opposite of the "take the
waste and prepare it" approach.

Moreover, alternative ecologies advocate the expansion of life forms. For this reason, the
diversity of species and the multiplicity of human cultures must be respected. (Bauer et al., 2019,
p. 127). Diversity is also evident in practices such as agroecology and permaculture, which
mimic natural processes and promote biodiversity, or in community-based conservation efforts
that respect and integrate local knowledge and cultural practices. Also, "alternative ecologies"
propose changes in the legal and economic system to advance the rights of non-human persons.
In practice, change may involve legal frameworks such as the Rights of Nature, which have been
adopted in several countries and locations to protect ecosystems and species from destructive
practices (Bauer et al., 2019, p. 271). Thus, integrating the principles will lead to a more
sustainable and just future of eco-institutions.

Conclusion

In conclusion, the paper explored the complex interplay between eco-business strategies
and the broader systemic changes needed through eco-institutions to address the environmental
challenges. While eco-business strategies offer valuable solutions for sustainability, challenges
remain, particularly in the food, automotive and electricity sectors. A change in eco-institutions
is crucial for the solution. Also, to truly solve the environmental problem, there is a need for
isolated initiatives, i.e. systemic change and reimagining our relationship with the Earth. Change
means rethinking the legal, economic and social frameworks to recognize and extend the rights
of all life forms that embody the principles of the Circular Economy is held.

As we conclude, by combining eco-business strategies with a strong framework of eco-

institutions, our society will move towards a sustainable and viable future. In general, the writing
reflects the recognition of the scale of the environmental crisis, as well as the creation of a more
sustainable and thriving planet. Due to the ever-increasing environmental problems, the need for
systemic change through comprehensive eco-institutions has never been more important. This is
BUS268 Corporate Strategy and Environmental Change ID No. 220559588

why it is so important for all sectors of society to collaborate, innovate and act decisively to
ensure the well-being of the Earth and future generations.

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