Should companies follow a model of sustainable growth? why or why not?
Answer:
In the view of the company, sustainable growth makes a lot of sense.
Given the focus on renewable resources, the companies have a large incentive to pursue the model because an investment in this area will reduce the cost of the resources in the future. The resources and raw materials will not become scarce as quickly, adding a small measure of stability to prices. The company will spend less money in the future finding the resources as well (for an example, look at the rising costs of oil exploration).
In the brand-focused, modern economy, companies also have a large incentive to do so because of the ethical consciousness of consumers. The sustainable growth model is proving to be a selling point for investors. Some consumer preferences have shown to favor responsible growth over lower prices.
In the normative sense, because companies have 1.) the capability of creating a large, preventable negative externality on the populace of a country and 2.) better resources to fix growth problems, they should bear some responsibility to follow these models. Unfortunately, due to short sightedness, it doesn't mean they will.
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