Sustainable entrepreneurship, social economy, competitive advantage, innovation, human resources, ethics
The concept of sustainable entrepreneurship can be considered, when looked too fast, as an oxymoron. In fact, the integration of moral and ethical elements in the production in a capitalistic economy can appear as an unnecessary cost that will prevent companies that apply those values to be as profitable as those who refuse to apply them.
It is fair to say that the integration of sustainable entrepreneurship is still to be developed in most companies and are, indeed, a source of costs on the short term. However, the careful study of this concept shows that this approach of management and entrepreneurship reveals new productivity deposits that can, on the long run, overcome the initial costs generated by this entrepreneurship philosophy.
The present essay aims at presenting the conceptual framework of sustainable entrepreneurship and especially its US and French roots but also its integration in the larger concept of the social economy. After, we will present the potential costs and competitive disadvantages of the use of this philosophy over the company's profitability. We will discuss the benefits of its application, especially in terms of financial profitability but also of negative externalities limitation for the company and, last but not least, the possible problems related to the trending application of this concept in the economy.
[...] However, it would be naïve to consider that this trend cannot be used on a cynical way by companies using a "free rider" strategy to benefit from certain benefits of the image provided by sustainable entrepreneurship without ackoledging and engaging the related costs. Environmental lobbyists have been the first to use it to designate and denounce the communications of companies that highlight their progress in sustainable development, even though they do not carry out real responsible actions. What is more, and despite the potential of ethical behavior from entrepreneurs, it is fair to say that, in a capitalist market, the final decision is to the customer. [...]
[...] On the other hand, J. Ellul developed a thought that inspires ecologists. It is based on the recognition of the change of status of technology which, from a set of means assigned to an end, becomes a binding autonomous phenomenon. In other words, the collective sacralisation of the technique imposes on the man a set of determinations outside confining his creativity. In this design, the contractor sustainable is the one that comes out of the technical constraints and finds solutions, sources of new organizations of work and thus of new companies. [...]
[...] Demoustier (20016) also points out, these companies all refer to humanistic values ??and principles of social justice. III. Sustainable entrepreneurship as a potential source of cost and competitive disadvantage However, in the context of globalisation, sustainable entrepreneurship can be considered, on the short term, as an important source of competitive disadvantage especially in the context of strong cost competition. In fact, for most of the cost-driven products (with a high degree of price elasticity) margins for the companies are low. [...]
[...] Finally, in the context of the consequences of PSR, it is possible to observe a ripple effect between the different causes of PSR. Indeed, a high level of stress within an organization will tend to facilitate the manifestation of internal violence and burnout. This ripple effect is particularly harmful in that, beyond a certain level, it will allow a general rise in the level of stress and violence in the company, the consequences of which on the well-being of employees cannot be ignored. [...]
[...] In this context, a company that makes a green advertisement but does not take into account in its operation, its strategy of environmental concerns, and the effects of such communication on the environment is greenwashing. This term, which is opposed to ethical advertising, appeared in the early 1990s in an article published in Mother Jones magazine (Catellani, 200912). Conclusion: In conclusion, it is fair to say that sustainable entrepreneurship allows management and companies to integrate longer-term objectives in their strategic and operational decision making process. [...]
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