Session 2: Views on sustainability and their assumptions
Je moet leren:
• De vier visies op de relatie tussen economie, ecologie en samenleving herkennen en
onderscheiden
• De aannames en duurzaamheidsgevolgen van elke visie kritisch beoordelen
• Deze visies historisch situeren en koppelen aan veranderende
duurzaamheidsdefinities
• Begrijpen dat de visies naast elkaar bestaan en botsen
• Eigen en andermans visie kunnen herkennen en begrijpen
Four visions on ERS (Economic, Responsible,
Sustainable worldviews)
1. Disparate view – systemen staan los van elkaar.
2. Subsuming view – sociale en ecologische systemen dragen
bij aan economische prestaties.
3. Intertwined view – alle drie systemen zijn gelijkwaardig.
4. Embedded view – economie is ingebed in maatschappij,
die weer ingebed is in natuur.
Disparate view
Economic, social and environmental systems are separate; companies should not engage in
non-economic systems.
Assumptions
• Beneficiary: Economy is the only beneficiary (begunstigde)
• Hierarchy: Non-related systems + economic system as the largest
• The market is self-regulating (“invisible hand”) = will regulate everything
Business model
• Profit maximalization or “The only business of business is business”(Milton
Friedman 1970)à main purpose: to make money
• Assessment: Financial performance
If attention to sustainability, it is along
• Legal compliance (als er aandacht is voor duurzaamheid, dan is dat naleving van wet-
en regelgeving,…)
• Personal initiatives: philanthropy, volunteering, ...
, Criticism: neglects social and environmental problems.
Example: Archie Carroll’s CSR pyramid; cases ExxonMobil & Philip Morris.
these companies represent the disparate view because
they traditionally operate on the principle that "the only
business of business is business" and treat social or
environmental engagement as a secondary layer of legal
compliance or philanthropy
Economic, social and environmental systems
are separate; companies should not engage in
non-economic systems.
Subsuming view
Engage in environmental or social systems only to the extent that it increases economic
performance => alleen als ze econmische winst opleveren
Assumptions
• Nested hierarchy, hierarchy where social and environmental issues are
managed as a means to achieve economic benefits.
Business model
• primary model for this view is Creating Shared Value (CSV), developed by
Porter and Kramer
“recognizes that societal needs, not just conventional economic needs, define
markets”
Implications sustainability
• Goal: mutual reinforcement (wederzijdse versterking) between business
growth and social/environmental progress
• Focus: social and environmental needs are seen as sources of innovation,
competitiveness, and growth
• Assessment: economic valuation of social and environmental resources =>
strategic integration
, Criticism: Instrumental approach; social and environmental needs are olny used
if it works to gain profit
Examples: Nestlé and Coca-cola:
The capsules you can bring to the shop and there they re-use the capsules:
reduce their environmental impact
Product Innovation: Growing the business by offering choices like beverages
without sugar and focusing on the circular economy through increased
collection and better design
ð social and environmental needs are treated as drivers of competitiveness. By
addressing societal challenges, they define new markets and ensure mutual
reinforcement between business growth and societal progress
Intertwined view
Economic, social and environmental systems are separate; companies should should
balance their considerations for each.
Assumptions
• Each system is equally valid; companies should balance their considerations
for each.
• No hierarchy - Win-win-win approach
Business model
• represented by the Triple Bottom Line (3-P model): Profit, People, and Planet
(Elkington,1997)
Implications for sustainability
• Goal: Long term harmony between economy, society, and environment
• Focus: Companies must weigh and report on all three dimensions equally
• Assessment: non-financial reporting + financial performance
èbalance of three pillars
Criticism
• Balancing trade-offs is challenging; profit may still dominate
• Measurement difficulties of social and environmental dimensions
• Risk that it will become more a reporting checklist rather than rethinking the
system (can lead to greenwashing and social washing = risk!)
, Example: Interface
hey set aggressive targets, such as becoming a carbon-negative enterprise by
2040, and focus on ESG (environmental, social, and governance) criteria like
Focus on impact of the emissions
Embedded view
Economic system is embedded in social system, which is embedded in environmental
system; economic activity as a means to achieve social and environmental wellbeing
Assumptions
• new hierarchy that gives dominance to the environmental system which hosts
the social system which hosts the economic
Business model
• Regenerative model: "We're in business to save our home planet"
• Doughnut Economics (by Kate Raworth): focuses on staying within planetary
boundaries (such as climate change and biodiversity loss) while maintaining a
social foundation
balans tssn ecologische grenzen vd planeet en desociale basisbehoeften
Implications for sustainability
• Goal: strong sustainability: profit is a means to well-being, not the goal.
• Moving away from the “win-win” logic → focus on well-being and planetary
boundaries
Criticism
• Niche model so not widely scalable in the current economic system.
• Example: Patagonia (1970): "We're in business to save our home planet"
Vision: to use its business to inspire and implement solutions to the
environmental crisis.
Mission: "We're in business to save our home planet". they prioritizes
reinvestment in the environment over maximizing earnings, famously
declaring that "Earth is now our only shareholder": the profit will be devoted in
te futur to environmental and climate causes
Its ownership was transferred in 2022 to a trust and a non-profit to align with
its mission, making Earth its 'only shareholder' and dedicating all profits to
environmental causes.
Je moet leren:
• De vier visies op de relatie tussen economie, ecologie en samenleving herkennen en
onderscheiden
• De aannames en duurzaamheidsgevolgen van elke visie kritisch beoordelen
• Deze visies historisch situeren en koppelen aan veranderende
duurzaamheidsdefinities
• Begrijpen dat de visies naast elkaar bestaan en botsen
• Eigen en andermans visie kunnen herkennen en begrijpen
Four visions on ERS (Economic, Responsible,
Sustainable worldviews)
1. Disparate view – systemen staan los van elkaar.
2. Subsuming view – sociale en ecologische systemen dragen
bij aan economische prestaties.
3. Intertwined view – alle drie systemen zijn gelijkwaardig.
4. Embedded view – economie is ingebed in maatschappij,
die weer ingebed is in natuur.
Disparate view
Economic, social and environmental systems are separate; companies should not engage in
non-economic systems.
Assumptions
• Beneficiary: Economy is the only beneficiary (begunstigde)
• Hierarchy: Non-related systems + economic system as the largest
• The market is self-regulating (“invisible hand”) = will regulate everything
Business model
• Profit maximalization or “The only business of business is business”(Milton
Friedman 1970)à main purpose: to make money
• Assessment: Financial performance
If attention to sustainability, it is along
• Legal compliance (als er aandacht is voor duurzaamheid, dan is dat naleving van wet-
en regelgeving,…)
• Personal initiatives: philanthropy, volunteering, ...
, Criticism: neglects social and environmental problems.
Example: Archie Carroll’s CSR pyramid; cases ExxonMobil & Philip Morris.
these companies represent the disparate view because
they traditionally operate on the principle that "the only
business of business is business" and treat social or
environmental engagement as a secondary layer of legal
compliance or philanthropy
Economic, social and environmental systems
are separate; companies should not engage in
non-economic systems.
Subsuming view
Engage in environmental or social systems only to the extent that it increases economic
performance => alleen als ze econmische winst opleveren
Assumptions
• Nested hierarchy, hierarchy where social and environmental issues are
managed as a means to achieve economic benefits.
Business model
• primary model for this view is Creating Shared Value (CSV), developed by
Porter and Kramer
“recognizes that societal needs, not just conventional economic needs, define
markets”
Implications sustainability
• Goal: mutual reinforcement (wederzijdse versterking) between business
growth and social/environmental progress
• Focus: social and environmental needs are seen as sources of innovation,
competitiveness, and growth
• Assessment: economic valuation of social and environmental resources =>
strategic integration
, Criticism: Instrumental approach; social and environmental needs are olny used
if it works to gain profit
Examples: Nestlé and Coca-cola:
The capsules you can bring to the shop and there they re-use the capsules:
reduce their environmental impact
Product Innovation: Growing the business by offering choices like beverages
without sugar and focusing on the circular economy through increased
collection and better design
ð social and environmental needs are treated as drivers of competitiveness. By
addressing societal challenges, they define new markets and ensure mutual
reinforcement between business growth and societal progress
Intertwined view
Economic, social and environmental systems are separate; companies should should
balance their considerations for each.
Assumptions
• Each system is equally valid; companies should balance their considerations
for each.
• No hierarchy - Win-win-win approach
Business model
• represented by the Triple Bottom Line (3-P model): Profit, People, and Planet
(Elkington,1997)
Implications for sustainability
• Goal: Long term harmony between economy, society, and environment
• Focus: Companies must weigh and report on all three dimensions equally
• Assessment: non-financial reporting + financial performance
èbalance of three pillars
Criticism
• Balancing trade-offs is challenging; profit may still dominate
• Measurement difficulties of social and environmental dimensions
• Risk that it will become more a reporting checklist rather than rethinking the
system (can lead to greenwashing and social washing = risk!)
, Example: Interface
hey set aggressive targets, such as becoming a carbon-negative enterprise by
2040, and focus on ESG (environmental, social, and governance) criteria like
Focus on impact of the emissions
Embedded view
Economic system is embedded in social system, which is embedded in environmental
system; economic activity as a means to achieve social and environmental wellbeing
Assumptions
• new hierarchy that gives dominance to the environmental system which hosts
the social system which hosts the economic
Business model
• Regenerative model: "We're in business to save our home planet"
• Doughnut Economics (by Kate Raworth): focuses on staying within planetary
boundaries (such as climate change and biodiversity loss) while maintaining a
social foundation
balans tssn ecologische grenzen vd planeet en desociale basisbehoeften
Implications for sustainability
• Goal: strong sustainability: profit is a means to well-being, not the goal.
• Moving away from the “win-win” logic → focus on well-being and planetary
boundaries
Criticism
• Niche model so not widely scalable in the current economic system.
• Example: Patagonia (1970): "We're in business to save our home planet"
Vision: to use its business to inspire and implement solutions to the
environmental crisis.
Mission: "We're in business to save our home planet". they prioritizes
reinvestment in the environment over maximizing earnings, famously
declaring that "Earth is now our only shareholder": the profit will be devoted in
te futur to environmental and climate causes
Its ownership was transferred in 2022 to a trust and a non-profit to align with
its mission, making Earth its 'only shareholder' and dedicating all profits to
environmental causes.
