The Ecological Allowance of Enterprise: An Absolute Measure of Corporate Environmental Performance, its Implications for Strategy, and a Small Case

Abstract

ABSTRACT: In order to determine the sustainable ecological scale of business activities, the measure ecological allowance is introduced in this contribution. Its main idea is that every enterprise “owns” a certain allowable ecological impact that can be calculated through relating impact and economic performance. This measure then enables the evaluation of absolute environmental performance of a business enterprise, compared to only relative measures as in most other approaches. The measure is explained and detailed with a case from the German automotive industry and complimented by a scenario analysis of different configurations of self-owned and carsharing cars, including technological and economic parameters. KEYWORDS