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Academic Paper from the year 2021 in the subject Business economics - Business Ethics, Corporate Ethics, grade: 8,0, , course: Purpose Economy and sustainability, language: English, abstract: Since the rise in globalization and consumerism the world`s leaders become increasingly aware of the negative consequences that are leading to a global climate crisis. Nowadays almost everyone is aware that climate action becomes a necessity instead of an option in order to find a solution for this problem to save the planet. One approach of how to reduce the carbon footprint is the right technique of waste management. The most commonly known process is called Recycling which consists of collecting used materials, reprocessing the waste material into a secondary material into its raw ingredients in order to be able to use this material for new product production. In other words creating a new durable product that is made of waste is the ideal choice to support the environmentally friendly way of living and contributing to our planet. The current times just make it a necessity for every business to act ethically and to have sustainable processes in place that contribute to the purpose economy. It is relevant to change the primary goal of businesses from “profit maximization no matter the costs” to first having sustainable methods in place that protect humanity and future generations. This leads to the main purpose of this essay consisting of explaining the meaning of purpose economy and sustainable development to business. In short, the purpose economy consists of the idea of having a business which has a green economy that helps the planet instead of destroying it. Further the sustainability consists of three main aspects (Social, Ecological and Economic) and aims on acting in an ethical way with the purpose of not harming future generations. This will be properly illustrated by the help of using a real case, the US clothing brand “Patagonia”. Patagonia is an US clothing brand that was founded by Yvon Chouinard in the year 1973 and is known for producing sustainable outdoor clothing. Since the whole clothing industry contributes up to 10% of the pollution which worsens the climate crisis, this company illustrates a perfect example of how to be a leading model for other companies of running a sustainable business.
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