IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i20p8523-d428685.html
   My bibliography  Save this article

Organic Growth Theory for Corporate Sustainability

Author

Listed:
  • Ahmad Karnama

    (Aban Foundation, 187 65 Stockholm, Sweden)

  • Ricardo Vinuesa

    (SimEx/FLOW, Engineering Mechanics, KTH Royal Institute of Technology, 100 44 Stockholm, Sweden)

Abstract

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.

Suggested Citation

  • Ahmad Karnama & Ricardo Vinuesa, 2020. "Organic Growth Theory for Corporate Sustainability," Sustainability, MDPI, vol. 12(20), pages 1-10, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8523-:d:428685
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/20/8523/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/20/8523/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Linnenluecke, Martina K. & Griffiths, Andrew, 2010. "Corporate sustainability and organizational culture," Journal of World Business, Elsevier, vol. 45(4), pages 357-366, October.
    2. Schmalensee, Richard, 1981. "Economies of Scale and Barriers to Entry," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1228-1238, December.
    3. Manoj K. Dash, 2014. "Corporate Social Responsibility (CSR) and Entrepreneurship in India: Exploring the Landscape of Possibilities," Springer Books, in: Subhasis Ray & S. Siva Raju (ed.), Implementing Corporate Social Responsibility, edition 127, chapter 6, pages 85-100, Springer.
    4. Anne Kok & Frank de Bakker & Peter Groenewegen, 2017. "Sustainability Struggles: Conflicting Cultures and Incompatible Logics," Post-Print hal-01745274, HAL.
    5. Qamar Farooq & Peihua Fu & Shahzad Ahmad & Yanni Zhang & Yunhong Hao, 2019. "Assessing Human Factor in the Adoption of Computer-Based Information Systems as the Internal Corporate Social Responsibility," SAGE Open, , vol. 9(3), pages 21582440198, August.
    6. Chichilnisky, G., 1992. "Traditional Comparative Advantages vs Economies of Scale: NAFTA and the GATT," Papers 93-13, Columbia - Graduate School of Business.
    7. Van Zyl, Johan & Miller, Bill R. & Parker, Andrew, 1996. "Agrarian structure in Poland : the myth of large-farm superiority," Policy Research Working Paper Series 1596, The World Bank.
    8. Stamatios Ntanos & Grigorios Kyriakopoulos & Michalis Skordoulis & Miltiadis Chalikias & Garyfallos Arabatzis, 2019. "An Application of the New Environmental Paradigm (NEP) Scale in a Greek Context," Energies, MDPI, vol. 12(2), pages 1-18, January.
    9. Deborah de Lange & Timo Busch & Javier Delgado-Ceballos, 2012. "Sustaining Sustainability in Organizations," Journal of Business Ethics, Springer, vol. 110(2), pages 151-156, October.
    10. Baumers, Martin & Dickens, Phill & Tuck, Chris & Hague, Richard, 2016. "The cost of additive manufacturing: machine productivity, economies of scale and technology-push," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 193-201.
    11. Thomas Hanke & Wolfgang Stark, 2009. "Strategy Development: Conceptual Framework on Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 85(3), pages 507-516, April.
    12. John C. Panzar & Robert D. Willig, 1977. "Economies of Scale in Multi-Output Production," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(3), pages 481-493.
    13. Keshara Manindri De Silva & Chitra Sriyani De Silva Lokuwaduge, 2020. "Impact of corporate social responsibility practices on employee commitment," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 17(1), pages 1-14, January.
    14. Ricardo Vinuesa & Hossein Azizpour & Iolanda Leite & Madeline Balaam & Virginia Dignum & Sami Domisch & Anna Felländer & Simone Daniela Langhans & Max Tegmark & Francesco Fuso Nerini, 2020. "The role of artificial intelligence in achieving the Sustainable Development Goals," Nature Communications, Nature, vol. 11(1), pages 1-10, December.
    15. Silberston, Aubrey, 1972. "Economies of Scale in Theory and Practice," Economic Journal, Royal Economic Society, vol. 82(325), pages 369-391, Supplemen.
    16. Ross, Ian Simpson, 2010. "The Life of Adam Smith," OUP Catalogue, Oxford University Press, edition 2, number 9780199550036.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ruixin Su & Bojan Obrenovic & Jianguo Du & Danijela Godinic & Akmal Khudaykulov, 2022. "COVID-19 Pandemic Implications for Corporate Sustainability and Society: A Literature Review," IJERPH, MDPI, vol. 19(3), pages 1-23, January.
    2. Sooksan Kantabutra, 2022. "Toward a System Theory of Corporate Sustainability: An Interim Struggle," Sustainability, MDPI, vol. 14(23), pages 1-27, November.
    3. Nijsiree Vongariyajit & Sooksan Kantabutra, 2021. "A Test of the Sustainability Vision Theory: Is It Practical?," Sustainability, MDPI, vol. 13(14), pages 1-20, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kleer, Robin & Piller, Frank T., 2019. "Local manufacturing and structural shifts in competition: Market dynamics of additive manufacturing," International Journal of Production Economics, Elsevier, vol. 216(C), pages 23-34.
    2. Tone, Kaoru & Sahoo, Biresh K., 2003. "Scale, indivisibilities and production function in data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 84(2), pages 165-192, May.
    3. Slobodan Marić & Nemanja Berber & Agneš Slavić & Marko Aleksić, 2021. "The Mediating Role of Employee Commitment in the Relationship Between Corporate Social Responsibility and Firm Performance in Serbia," SAGE Open, , vol. 11(3), pages 21582440211, August.
    4. Qamar Farooq & Jie Hao & Xuan Liu & Di Xiao & Yunhong Hao, 2020. "Social and environmental development: Fresh concepts and soft measures towards sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1796-1803, November.
    5. Ioana Gutu & Daniela Tatiana Agheorghiesei & Alexandru Tugui, 2023. "Assessment of a Workforce Sustainability Tool through Leadership and Digitalization," IJERPH, MDPI, vol. 20(2), pages 1-30, January.
    6. Henrik Skaug Sætra, 2021. "AI in Context and the Sustainable Development Goals: Factoring in the Unsustainability of the Sociotechnical System," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    7. Xi Liu & Yugang He & Renhong Wu, 2024. "Revolutionizing Environmental Sustainability: The Role of Renewable Energy Consumption and Environmental Technologies in OECD Countries," Energies, MDPI, vol. 17(2), pages 1-21, January.
    8. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2006. "Multi-Product Firms and Product Switching," NBER Working Papers 12293, National Bureau of Economic Research, Inc.
    9. Callum Williams, 2015. "Famine: Adam Smith and Foucauldian Political Economy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(2), pages 171-190, May.
    10. Galina Besstremyannaya & Sergei Golovan, 2023. "Measuring heterogeneity in hospital productivity: a quantile regression approach," Journal of Productivity Analysis, Springer, vol. 59(1), pages 15-43, February.
    11. Gutierrez, I. & Alcaraz, J.M. & Susaeta, L. & Suarez, E. & Pin , José Ramón, 2015. "Managing Sustainability for Competitive Advantage: Evidence From the Hospitality Industry," IESE Research Papers D/1115, IESE Business School.
    12. Gavin Kennedy, 2015. "Adam Smith's Use of the 'Gravitation' Metaphor," Economic Thought, World Economics Association, vol. 4(1), pages 67-79, March.
    13. Olufunke P. Adebayo & Rowland E. Worlu & Chinonye L. Moses & Olaleke O. Ogunnaike, 2020. "An Integrated Organisational Culture for Sustainable Environmental Performance in the Nigerian Context," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    14. Wilson, Christopher & van der Velden, Maja, 2022. "Sustainable AI: An integrated model to guide public sector decision-making," Technology in Society, Elsevier, vol. 68(C).
    15. Catherine Le Roux & Marius Pretorius, 2016. "Conceptualizing the Limiting Issues Inhibiting Sustainability Embeddedness," Sustainability, MDPI, vol. 8(4), pages 1-22, April.
    16. Hsueh, Che-Fu, 2014. "Improving corporate social responsibility in a supply chain through a new revenue sharing contract," International Journal of Production Economics, Elsevier, vol. 151(C), pages 214-222.
    17. Stéphanie Camaréna, 2021. "Engaging with Artificial Intelligence (AI) with a Bottom-Up Approach for the Purpose of Sustainability: Victorian Farmers Market Association, Melbourne Australia," Sustainability, MDPI, vol. 13(16), pages 1-28, August.
    18. Kwon, He-Boong & Lee, Jooh, 2019. "Exploring the differential impact of environmental sustainability, operational efficiency, and corporate reputation on market valuation in high-tech-oriented firms," International Journal of Production Economics, Elsevier, vol. 211(C), pages 1-14.
    19. Keeheon Lee, 2021. "A Systematic Review on Social Sustainability of Artificial Intelligence in Product Design," Sustainability, MDPI, vol. 13(5), pages 1-29, March.
    20. Gianluca MISURACA & Colin van Noordt, 2020. "AI Watch - Artificial Intelligence in public services: Overview of the use and impact of AI in public services in the EU," JRC Research Reports JRC120399, Joint Research Centre.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8523-:d:428685. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.