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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
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    References listed on IDEAS

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    Cited by:

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    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.

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