Toward a sustainable society: The private sector in six guises

Abstract

The meaning of a sustainable society is discussed to provide a framework for considering the role of the private sector. Duration and extent are polarized as long versus short and global versus local. Fundamental forces of geo-politics, social organization and technology argue for a focus on short duration and local extent. Population pressures and standard of living are of central concern in attaining a sustainable society. The target must be a stable population with a rising standard of living. Because resources are limited, the private sector's major role must be in the efficient use of resources to create wealth. To this end, it is well adapted. It consists, generally, of privately owned firms, employing shareholders' capital, to make a profit in a market economy. These characteristics, however, place major constraints on its ability to adopt noneconomic objectives of a social nature or in pursuit of a sustainable society. A number of responses to this dilemma are beginning to emerge, both in theory and practice. To help understand the complexity that constitutes modern economic life and its socio-political environment, the private sector is viewed in six guises: wealth creator, corporate citizen, benevolent despot, reluctant social partner, cooperative social partner, and private patron. Discussion concentrates on the significance of each of these for the sustainable society. Finally, some thought is given to the significance of the private sector as a model for institutional flexibility in a sustainable society.