The natural environment poses a problem for economic theory. Even if we accept, for the sake of argument, that the free market serves both employer and employee, buyer and seller, equally, the environment may be harmed by market transactions.
The air and water can suffer. Economists calls this the problem of externalizes.
What does sustainable enterprise mean and are there any?
This case study is focusing upon the fact that the natural environment influences the economic condition of any country or not. Some business experts says that the natural environment like the perfect competition has a positive impact on business environment whereas other experts argue against it as they say that the natural environment effect both the employee and employers, the buyer and seller, and forces of supply and demand.
There seems to a possibility of problems and influences which can be occurred upon the environment of business and this environment can harmed the market transactions if free trade is available. The problem of externalities also exist which this phenomenon. This discussion has also focused upon the issue of green concept of companies and how the government can positively influence upon the environment of companies to become green and role of people in this regard.
The other important issue in this discussion is the sustainable enterprises which can maintain themselves with longer time and their motive is societal welfare along with generating huge amounts of profits their owners.
I have visited the following sources for this discussion:
Aragón-Correa, Juan Alberto. “Strategic proactivity and firm approach to the natural environment.” Academy of management Journal 41.5 (1998): 556-567.
Aragon-Correa, J. Alberto, and Sanjay Sharma. “A contingent resource-based view of proactive corporate environmental strategy.” Academy of management review 28.1 (2003): 71-88.
Bansal, Pratima, and Iain Clelland. “Talking trash: Legitimacy, impression management, and unsystematic risk in the context of the natural environment.”Academy of Management Journal 47.1 (2004): 93-103.