Theory of Natural Capitalism (Essay Sample)
Write an essay about theory of natural capitalism that satisfies the conditions described below:
1 page, double space, 275 words
3 sources
APA format
The essay should have an introduction, body and a brief conclusion. The introduction and essay should be at least 80 words each. In the introduction, you must clearly state the objective of the paper, while the conclusion must restate the introduction.
Theory of Natural Capitalism
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Theory of Natural Capitalism
Natural capital is a system of four interlinked principles where the business objectives and environmental interests overlap, and the business satisfies its clients' needs better. Therefore, the business increases its profit margin while also improving environmental welfare. It can be summarized as a production system that supports sustainable development as business organizations maximize profits alongside environmental stewardship. It appreciates the planet's value as people realize that they need a calm environment as much as they need the products manufactured by companies (Lovins et al., 2007). An example of natural capital includes timber from trees in their natural state.
The theory of natural capitalism critiques traditional industrial capitalism because the latter only takes from the environment and exploits the natural resources to maximize income. However, the former seeks to strike a balance between using the plants and living things in the production process and taking care of the continuity of the generations of the resources. Natural capitalism recognizes that natural resources are the most significant and most valued resources required to produce various goods and services. Hence, the capitalists take the responsibility of using the resources sparingly (Lovins et al., 1999). In a nutshell, natural capital encompasses all the resource endowments on the earth and ecological systems that support life. They are of high economic value as some of them are priceless. They have no absolute substitute.
Unfortunately, the current business world disregards the economic value of these resources and vandalizes them. Accordingly, the assets constantly diminish, and with time the cost of production increases as health hazards become more prominent. Typical examples of priceless natural capital that are consistently eroded due to human activities include water, topsoil, energy, materials and fibre. Natural capitalism is a new accounting system that explores the opportunities emb
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