Trajectories of Transition to Ecological Sustainability: Implications for Business and Business Schools

The David O'Brien Centre for Sustainable Enterprise at the John Molson School of Business presents Laszlo Zsolnai, Director, Business Ethics Center, Corvinus University of Budapest; Chairman, Business Ethics Faculty Group, CEMS - Global Alliance in Management Education.

Globalization contributed to reducing absolute poverty and to fighting against lethal diseases worldwide, but an enormous price has been paid for this success. Today the global economy is functioning in an ecological overshot and produces considerable welfare defi cit in many countries. The transition to ecological sustainability and improved human well-being requires both quantitative and qualitative limitationss on the material throughput of economic activities. This task cannot be achieved by the prevailing mainstream business paradigm. The competitive business model cultivating individualistic self-interest and aiming at profit or shareholder value maximization is not compatible with ecological sustainability and increasing human well-being.

The paper presents the community economy framework as a good vehicle for the required transition toward a more ecologically sustainable and happier society. Trajectories of transition lead to more substantive economic activities which are embedded in local communities and the natural environment. Example of food sovereingity in France, energy independence in Sweden and Germany, transition towns in the UK and alternative currency in Switzerland are used for illustrating the trajectories of transition. Some lessons are derived for required transformation of business.