Organic Growth Theory for Corporate Sustainability

Organic Growth Theory for Corporate Sustainability

Ahmad Karnama, Ricardo Vinuesa

This paper introduces a theory for the evolution of corporates in which the growth and sustainability strategies are developed simultaneously. Since the introduction of corporate sustainability, it has been seen an extra cost for risk mitigation and making “compensating” positive impact. The world has reached a tipping point of volatility, mainly due to climate change but also due to the emergence of COVID-19, therefore the applicability of existing corporate structures is under question and this poses high risk to the existence of our planet. On the other hand, the technology cost for sustainable investment has reached parity in comparison with non-sustainable alternatives. Therefore, our proposed Organic Growth Theory introduces a step-by-step approach so that corporates can grow and be profitable without compromising the ability of future generations to meet their needs. It is concluded that a new structure for corporates, called founcorps, would be required to direct corporates to evolve into being a responsible legal entity.

2020

Corporate Social Responsibility, Corporate responsibility, Maslow Pyramid, corporate sustainability strategy, corporate growth strategy, Organic Growth Theory

10.3390/su12208523

Biotemas

Universidade Federal de Santa Catarina

Environmental effects of industries and plants, Renewable energy sources, Environmental sciences