Description
Book SynopsisThe free market underpins our economy and our way of thinking around enterprise and value, but it is also a major factor in the sustainability problems that we now live with. Climate change, child labour and oil spills are just a few of the many problems associated with our economic activity and, although many companies have made an effort to produce more sustainably, the pace of change is much too slow. This engaging and accessible textbook teaches students the relationship between the economy and sustainability, assessing the hand of the free market on company behaviour and, ultimately, providing a framework for transition to a sustainable economy.
Using case studies and optional assessment questions, this textbook explains to students what a market is at the macro level and then translates the effects of the market to industries and subsequently to the strategic choices of companies at the micro level. It adopts a model of 8 guiding principles that underpin the current free market economy and 8 guiding principles for the sustainable market economy. Switching these deeply held principles will be essential to any serious transition to a sustainable economy.
Table of ContentsIntroduction 9
1. How markets work 11
1.1. What do we mean by a (free) market? 12
1.2. Effects of markets on the choices of companies 22
1.3. Summary 35
2. Market Failure: The Tragedy Of The Coercive Hand 37
2.1. Damage due to product leadership 37
2.2. Damage due to cost savings 51
2.3. Summary 72
3. Guiding principles in our current economic model 75
3.1. Acting freely for more possessions 76
3.2. The employee is a means of production 86
3.3. Economic growth and trickle down 94
3.4. The role of government in the market economy 99
3.5. Summary 103
Towards a new DNA for a sustainable market 106
4. Guiding principles for a sustainable economy 109
4.1. Acting responsibly for greater well-being 109
4.2. Man is an equal production partner 135
4.3. Multiple growth for all 139
4.4. The role of government in a sustainable market 143
4.5. Summary 148
5. The happiness of a sustainable market 151
5.1. How the sustainable market works 151
5.2. Translating guiding principles into a sustainable mission and vision 154
5.3. Sustainable product leadership 158
5.4. Cost savings: devoloping sustainable production processes 167
5.5. Summary 187
Afterword – Now What? The role of citizens, businesses and government 191
