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Thinking in Systems: The Long-Term Impacts of Short-Term Business growth

In: Corporate Sustainability in Practice

Author

Listed:
  • Roberto Pasqualino

    (Anglia Ruskin University
    Exoshock LTD
    Anglia Ruskin University)

Abstract

Short-term business growth is the main paradigm governing business activities today. This is important for employing workers, servicing debt and being competitive in a complex world among others. In 1972, the Limits to Growth (LtG)Limits to Growth demonstrated how short-term business as usual behaviour could cause long-term global risks, including the possibility of overshoot of the global economy to environmental limits and economic collapse within the twenty-first century. This chapter first gives a definition of complex systems, system thinking and sustainabilitySustainability. Then it explains the nature of financial riskFinancial risk assessment practices and exponential growth. Thus, it reviews the LtG model and compares it to historical data. The major drivers for growth and the state of planetary boundariesPlanetary boundaries are then assessed showing the relationships between risk, economic growth and environmental pressures. Potential leverage solutions to reduce long-term risks and directions for businesses to support a sustainabilitySustainability transition are highlighted.

Suggested Citation

  • Roberto Pasqualino, 2021. "Thinking in Systems: The Long-Term Impacts of Short-Term Business growth," Management for Professionals, in: Paolo Taticchi & Melissa Demartini (ed.), Corporate Sustainability in Practice, chapter 0, pages 41-61, Springer.
  • Handle: RePEc:spr:mgmchp:978-3-030-56344-8_3
    DOI: 10.1007/978-3-030-56344-8_3
    as

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