Fit for purpose? : Clarifying the role of profit for sustainability
(2020) In Journal of Political Ecology 27(1). p.236-262- Abstract
- This conceptual article contributes to the post-growth strand of political ecology literature, which seeks to find sustainable ways of organizing the economy that do not require economic growth. It explores the idea that transitioning to post-growth societies requires a transition in the relationship-to-profit of business. I first conceptualize relationship-to-profit as the intersection of purpose, investment, and ownership of firms. Specifically, for-profit business structures entail a financial gain purpose, private ownership, and unlimited returns on investment; whereas not-for-profit business structures have a social benefit purpose, collective ownership, and limited returns on investment. I then outline ideal types of for-profit and... (More)
- This conceptual article contributes to the post-growth strand of political ecology literature, which seeks to find sustainable ways of organizing the economy that do not require economic growth. It explores the idea that transitioning to post-growth societies requires a transition in the relationship-to-profit of business. I first conceptualize relationship-to-profit as the intersection of purpose, investment, and ownership of firms. Specifically, for-profit business structures entail a financial gain purpose, private ownership, and unlimited returns on investment; whereas not-for-profit business structures have a social benefit purpose, collective ownership, and limited returns on investment. I then outline ideal types of for-profit and not-for-profit economies, based on the differences between these two kinds of relationship-to-profit. The first ideal type shows how the for-profit business structure drives consumerism, economic growth, and ecological harm, as well as inequality and political capture, preventing post-growth transitions. These dynamics might be slowed down by businesses that seek to balance private financial gain with social benefit (known as dual-purpose businesses). The second ideal type describes the dynamics that might be expected in an economy consisting of not-for-profit businesses, which have a legal mandate to pursue only social benefit. This analysis explains how transitioning from for-profit to not-for-profit forms of business might change some of the most problematic dynamics of the economy, allowing for post-growth transformations. A brief discussion of the possible shortcomings of a not-for-profit economy is also offered. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/8356ecc7-6678-4089-b64f-920c0b669682
- author
- Hinton, Jennifer B. LU
- publishing date
- 2020
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Post-growth economy, Post-growth business, Post-growth profit, Not-for-profit economy, For-profit economy, Degrowth, Degrowth economy
- in
- Journal of Political Ecology
- volume
- 27
- issue
- 1
- pages
- 236 - 262
- publisher
- University of Arizona
- ISSN
- 1073-0451
- language
- English
- LU publication?
- no
- id
- 8356ecc7-6678-4089-b64f-920c0b669682
- alternative location
- https://journals.librarypublishing.arizona.edu/jpe/article/id/2231/
- date added to LUP
- 2023-08-22 14:07:39
- date last changed
- 2023-08-25 18:36:12
@article{8356ecc7-6678-4089-b64f-920c0b669682,
abstract = {{This conceptual article contributes to the post-growth strand of political ecology literature, which seeks to find sustainable ways of organizing the economy that do not require economic growth. It explores the idea that transitioning to post-growth societies requires a transition in the relationship-to-profit of business. I first conceptualize relationship-to-profit as the intersection of purpose, investment, and ownership of firms. Specifically, for-profit business structures entail a financial gain purpose, private ownership, and unlimited returns on investment; whereas not-for-profit business structures have a social benefit purpose, collective ownership, and limited returns on investment. I then outline ideal types of for-profit and not-for-profit economies, based on the differences between these two kinds of relationship-to-profit. The first ideal type shows how the for-profit business structure drives consumerism, economic growth, and ecological harm, as well as inequality and political capture, preventing post-growth transitions. These dynamics might be slowed down by businesses that seek to balance private financial gain with social benefit (known as dual-purpose businesses). The second ideal type describes the dynamics that might be expected in an economy consisting of not-for-profit businesses, which have a legal mandate to pursue only social benefit. This analysis explains how transitioning from for-profit to not-for-profit forms of business might change some of the most problematic dynamics of the economy, allowing for post-growth transformations. A brief discussion of the possible shortcomings of a not-for-profit economy is also offered.}},
author = {{Hinton, Jennifer B.}},
issn = {{1073-0451}},
keywords = {{Post-growth economy; Post-growth business; Post-growth profit; Not-for-profit economy; For-profit economy; Degrowth; Degrowth economy}},
language = {{eng}},
number = {{1}},
pages = {{236--262}},
publisher = {{University of Arizona}},
series = {{Journal of Political Ecology}},
title = {{Fit for purpose? : Clarifying the role of profit for sustainability}},
url = {{https://journals.librarypublishing.arizona.edu/jpe/article/id/2231/}},
volume = {{27}},
year = {{2020}},
}