Capitalism vs Eco-Capitalism: Green or Growth?

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Introduction

An Indian Cree prophecy states that “only after the last tree has been cut down, only after the last river has been poisoned, only after the last fish has been caught, only then will you find that money cannot be eaten” (Dibble, 2012, p. 79). For many decades, this remained unheeded and capitalism was the driving force behind our society and its pursuit for finer things in life. With the rise of environmentalism, we began to wonder if it’s possible to run an economy without causing environmental harm. This paper will scrutinize capitalism and its environmental impact. It will also describe eco-capitalism and how it operates in application. Lastly, it will provide an analysis of the current environmentalism as well as give a recommendation.

Capitalism and its Environmental Impact

The global capitalist economic system has accelerated at an exponential speed our small planet’s degradation, overstretching its limited resources and its capacity to withstand pollution –fuelled by our overconsumption and greed. The movie Wall Street states that: “Greed is good… Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind” (Stone, 1987). But if we look closer, does capitalism truly surge mankind upward? Indeed, capitalism has given us the technology and other inventions, but at the expense of harming our planet. Without a doubt, the capitalist system is not sustainable; it contributed to the breach of ecological boundaries, damaging the environment that sustains it (Juniper, 2014). The irreversibility of the destructions is a wake-up call for it means that what is lost is forever gone.

The scientific community fears the adverse ecological impacts such as loss of biodiversity, extinction of some species, waste and pollution, ozone depletion, and global warming. Climate change results in hurricanes, heat waves, starvation and drowning of polar bears, and other calamities (Carroll & Buchholtz, 2015, pp. 206-7). Al Gore’s An Inconvenient Truth unveils the cause and effect of global warming, how the political and economic systems have ignored and suppressed the truth, and most importantly, how it can be fixed (Guggenheim, 2006). Growth for the sake of growth is the ideology of a cancer cell; its sole purpose is growth and it ultimately kills its host (Abbey, 1988, p. 21). In retrospect, capitalism is analogous to a cancer cell in its pursuit of growth; it is endangering the only place that we could thrive and survive. The profit-driven capitalists must listen to what the science says: global warming is real and human-caused; hence, this calls on for a unified action to address this planetary emergency.

Eco-Capitalism and Environmentalism

Experts have already turned their attentions to how best to align capitalism with ecological capacities as externalities have a myriad of hidden cost and represent massive risks such as stranded assets caused by ecological changes or policies (Juniper, 2015). Hence, there is a need to move from pursuit of profit to business environmentalism. In its present and unadulterated form, capitalism is a failing system; however, it is within our power to embrace an environmentally-friendly version. Eco-capitalism, also called business environmentalism, is an emerging trend that focuses on mankind’s effect on the environment. It comes from the poignant realization that our planet’s natural resources are not infinite; hence, we need to rethink our environmental impact and redesign our actions to minimize it. Eco-capitalism believes that we should take extra steps to renew these resources in a sustainable way, leaving the least footprints.

There are firms that have been long-time advocates of business environmentalism. Patagonia started recycling decades before others and made its outdoor gear out of old plastic soda bottles. 3M Company adopted a sustainability program and initiated a pollution prevention program 30 years ago; it also cut its emissions and toxic releases and developed a replacement for CFCs. Contrary to the old assumptions, there is money in business environmentalism; Patagonia, 3M, and many others made profits while advocating these green practices. Business environmentalism enables the businesses to develop new and creative ways that benefit the triple bottom line – the people, planet, and profits (Carroll & Buchholtz, 2015, pp. 225-7).

On the other end of the spectrum, there are many firms that exploit environmentalism for their financial gains. For instance, Fiji Water claims to be “green” despite being sold in single-use bottles and being transported thousands of miles all over the world (Alyona Show, 2010). It is astounding how far these profit-driven corporations would go to make a buck – even if they are fully aware that by harming the environment, they are making their own doom machine.

Eco-capitalism requires innovation and entrepreneurship. This is exemplified by TerraCycle which is an eco-friendly recycling company that has become a global leader in recycling typically non-recyclable waste such as cigarette butts, industrial waste, cartridges, automotive parts, etc. into a wide array of products such as “worm poop” natural fertilizers, cleaning and pest control solutions, bags, and other items for gardening, gifts, office, outdoors, school (TerraCycle, n.d.). TerraCycle has won numerous accolades and was featured in various media for eliminating the idea of waste through its recycling and up-cycling initiatives.

Analysis and Recommendation

Eco-capitalism is not perfect. We still cannot feed the 7.5 billion world population solely from organic farms. Capitalists may reject eco-capitalism as idealistic. However, I’d rather follow its idealism than partake in capitalism’s opportunism; for it represents a sustainable way of life wherein there is an ecological harmony, not destruction. It is an admission of our societal flaws, akin to the granting of women’s suffrage or the abolition of slavery. We all cause damage to the environment, but we can change that with the things we purchase, the water and energy we use, the cars we drive; we can bring our carbon footprints down. We have everything that we need to reduce our environmental footprints – everything but the willingness to do so.

The governments have tremendous power and can play a major role in transforming this vision into a reality. They can impose stringent laws to deter environmental crimes such as Denmark which requires an environmental impact assessment before any project commences and imposes strict liability on the business and its managers (Weitemeyer, 2012). The governments can also grant subsidies to promote environmentalism such as Japan which subsidizes $30,000 rebate for Toyota’s first hydrogen-powered, zero-emission vehicle (Hagiwara & Trudell, 2014).

As individuals, we must be cautious of the unscrupulous businesses that are distorting environmentalism to fit into their profitable framework. To bring a transformation that lasts, we must be more involved and not merely buyers who vote with our wallets. We can transform the way business is done by becoming green consumers, green employees, and green investors.

Conclusion

Capitalism insists that growth and consumerism are more important than the environment; however, the destruction of ecosystems will also bring on the collapse of the economies around the world. Our small blue planet is disintegrating. We do not have to wait until the last tree has been cut down, the last river has been poisoned, or the last fish has been caught before we take radical measures. This is why corporate social responsibility is becoming more crucial. It opens our eyes, our minds, and our hearts to these issues that are of monumental importance. It transforms this indifferent society to a more caring one for today’s learners are tomorrow’s leaders. It gives us hope – a hope for a better future. This paper examined capitalism’s impact on the environment. It also determined eco-capitalism’s current application. Finally, it provided an analysis and recommendation on how to address this ecological dilemma.

References

Abbey, E. (1988). One life at a time, please. New York, NY: Henry Holt.

Alyona Show. (2010). The real Fiji, no clean water [Video file]. Retrieved from https://www.youtube.com/watch?v=l5sN1m0J7pI

Carroll, A.B., & Buchholtz, A.K. (2015). Business and society: Ethics, management, and stakeholder management (9th ed.). Toronto, ON: Nelson Education Ltd.

Dibble, B. J. (2012). Comprehending the climate crisis: Everything you need to know about global warming and how to stop it. Bloomington, IN: iUniverse.

Guggenheim, D. (Director). (2006). An inconvenient truth [Documentary]. USA: Paramount Classics.

Hagiwara, Y. & Trudell, C. (2014, July 24). Want $30,000 off your green car? Head to Japan. Bloomberg. Retrieved from http://www.bloomberg.com/news/articles/2014-07-24/japan-gives-buyers-40-off-to-drive-toyota-fuel-cell-car

Juniper, T. (2014, November 26). Capitalism v environment: can greed ever be green? The Guardian. Retrieved from https://www.theguardian.com/sustainable-business/2014/nov/26/capitalism-environment-green-greed-slow-life-symposium-tony-juniper

Learn about TerraCycle. (n.d.). Retrieved from http://www.terracycle.ca/en-CA/about-terracycle?utm_campaign=admittance&utm_medium=menu&utm_source=www.terracycle.ca

Stone, O. (Director). (1987). Wall Street [Motion picture]. USA: 20th Century Fox.

Weitemeyer, M. (2012, April 17). Denmark: Environmental law. Mondaq. Retrieved from http://www.mondaq.com/x/169684/EU+Regulatory+Law/Environmental+Law

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