Changing the economic paradigm: Towards a sustainable business model

Abstract

The Earth is currently facing an era of environmental crisis and climate change. This requires a prompt and effective response in order to at least mitigate or alleviate the negative consequences associated with the environmental imbalances. In this work, first I present a description about the environmental challenges we are facing and the relationship with the current economic model; second, the need for a transition to a sustainable economic model based on common welfare; third, the change towards a sustainable organizational paradigm; and finally, a case of sustainable business such is Patagonia Inc. The theoretical analysis and proposals and the description of the Patagonia case could serve as a framework to understand the current relationship between economics and environmental crisis, as such as a guiding route to develop a sustainable economy and create sustainable business models. This paper highlights that adopting the principles of circular and regenerative economy and taking environmental responsibility are a hallmark of the companies which are contributing to a more sustainable development.