An environmental enterprise is an environmentally
friendly/compatible business.
Specifically, an environmental enterprise
is a business that produces value in the same
manner which an ecosystem does, neither producing
waste nor consuming unsustainable resources.
In addition, an environmental enterprise rather
finds alternative ways to produce one's products
instead of taking advantage of animals for
the sake of human profits.
To be closer to the goal of being an environmentally
friendly company, some environmental enterprises
invest their money to develop or improve their
technologies which are also environmentally
friendly.
In addition, environmental enterprises usually
try to reduce global warming, so some companies
use materials that are environmentally friendly
to build their stores.
They also set in place regulations that are
environmentally friendly.
All these efforts of the environmental enterprises
can bring positive effects both for nature
and people.
The concept is rooted in the well-enumerated
theories of natural capital, the eco-economy
and cradle to cradle design.
Examples of environmental enterprise would
be Seventh Generation, Inc., and Whole Foods.
== Background ==
=== 
Economic globalization is an irreversible
trend ===
Natural resource scarcity or/and abundance
are drivers of globalization, as they incite
supply and demand forces in global markets.
The fast globalization of the world's economies
in recent years is largely based on the rapid
development of science and technologies, has
resulted from the environment in which market
economic system has been fast spreading throughout
the world and has developed on the basis of
increasing cross-border division of labor
that has been penetrating down to the level
of production chains within enterprises of
different countries.
=== Environment and sustainability ===
For the past 50 years we have amassed unprecedented
financial wealth, but have also chronically
under-priced risk in terms of our natural
resource base (our endowment of minerals,
forests, fish, water and climate).
We have financed our extraordinary growth
in aggregate living standards while systematically
under-pricing the goods and services we derive
from our planet's natural resources, the negative
externalities we create by polluting them
and the future risks we face from their cumulative
depletion and degradation.
The phenomenal economic growth we have enjoyed
over the past 50 years has seen our world's
built environment and transport networks expand
in size and complexity at an unprecedented
rate.
We have developed a vastly more interconnected
global human ecosystem to provide us with
food, fuel, water, homes and transportation
than has ever been.
Sustainability can be achieved because the
companies adapt sustainable production to
improve their image.
Being environmentally friendly is good for
product branding.
Meanwhile, as social issues come up, some
companies focus on the environmental issues
in order to create the positive image of the
company.
As environmental social concerns increase,
some companies start to supply environmentally
friendly products and distribution systems.
The meanings of the systems can be explained
either by the viewpoints of the company's
management or the idea that an environmentally
friendly management guidelines will give a
positive image of the company and its goods.
In other words, these thoughts are based on
economic and ethical reasons.
The Kyoto Protocol can be an example: It was
intended to solve global problems of climate
change and global warming; however, some companies
had already put reducing emissions and getting
better energy efficiency into practice, which
is helpful to create a positive public image.
== Nature ==
An environmental enterprise is an environmentally
friendly/compatible business.
Specifically, an environmental enterprise
is a business that produces value in the same
manner which an ecosystem does, neither producing
waste nor consuming unsustainable resources.The
concept is rooted in the well-enumerated theories
of natural capital, the eco-economy and cradle
to cradle design.
The flow process shows the loop between enterprise
and natural capital.
Evidently, nature is the spring of wealth
and the only thing that could and should be
done is to promote the economy efficiency
in the inner cycle.[6] In another word, strengthening
the utilization ratio of raw materials to
increase output, and meanwhile, enhancing
the technology to reduce input of sources
and waste products.
To accomplish sustainability is, in this case,
to make the economy functioning better.
=== External cost ===
In economics, an externality is the cost or
benefit that affects a party who did not choose
to incur that cost or benefit.
The cost of the environment is usually termed
as the external cost of an enterprise.
Air pollution from burning fossil fuels causes
damages to crops, (historic) buildings and
public health.
"Social cost − private cost = External cost".
The ideal situation of environmental enterprise
is to cut the negative external cost.
=== Social cost ===
Social cost in economics may be distinguished
from "private cost".
Economic theorists model individual decision-making
as measurement of costs and benefits.
Social cost is also considered to be the private
cost plus externalities.
For example, the manufacturing cost of a car
(i.e., the costs of buying inputs, land tax
rates for the car plant, overhead costs of
running the plant and labor costs) reflects
the private cost for the manufacturer (in
some ways, normal profit can also be seen
as a cost of production; see, e.g., Ison and
Wall, 2007, p. 181).
The polluted waters or polluted air also created
as part of the process of producing the car
is an external cost borne by those who are
affected by the pollution or who value unpolluted
air or water.
Because the manufacturer does not pay for
this external cost (the cost of emitting undesirable
waste into the commons), and does not include
this cost in the price of the car (a Kaldor-Hicks
compensation), they are said to be external
to the market pricing mechanism.
The air pollution from driving the car is
also an externality produced by the car user
in the process of using his good.
The driver does not compensate for the environmental
damage caused by using the car.
== How to achieve ==
Take environmental issues into consideration
in the process of operation and management
of an enterprise.Generally speaking, regardless
of the scale of an enterprise, every industrial
enterprise have the problem of being environmental
friendly.
Since the environmental issue is gradually
affecting the long-term development of a nation,
not only companies but also the state should
take this into consideration and control the
pollution in practice.
An advanced enterprise should take care of
the natural capital and external cost which
paid by the nature circumstance rather than
merely sacrifice the natural resources to
make profit.
Establishing an environmental managing system
and regulations.To achieve the concept of
environmental enterprise is a multiple task.
Not only polluting problem but also saving
raw materials; decreasing the usage of energy,
output of waste, reducing the carcinogens
in products are highly emphasized.
Only by accomplishing these could an industry
completely deal with the environmental issue.
Invested in reducing pollution from the origin
of contamination and introducing environmental
friendly production line.The origin of contamination
should be constrained.
The most effective way of control degradation
is to go to the beginning of it rather than
the pathways.
Carrying forward the culture of environmental
enterprise and gradually modifying the whole
industry.It is our duty to maintain the globe.
Therefore, making these a culture is one of
the best way to keep people's consciousness
in a long term period of time.
== Case study ==
Whole Foods:
"We see the necessity of active environmental
stewardship so that the earth continues to
flourish for generations to come.
Because of the 42% waste reduction, we were
profiled by the EPA as a construction waste
reduction and recycling record-setter."
=== 
Sustainable agriculture ===
"We support organic farmers, growers and the
environment through our commitment to sustainable
agriculture and by expanding the market for
organic products.
We work with ranchers and producers to develop
hormone and antibiotic-free alternatives for
our customers to buy.
We advocate fewer and safer pesticides in
non-organic foods."
=== 
Wise environmental practices ===
"We respect our environment and recycle, reuse,
and reduce our waste wherever and whenever
we can.
We seek to balance our needs with the needs
of the rest of the planet through the following
actions:
Supporting sustainable agriculture.
We are committed to greater production of
organically and bio-dynamically grown foods
in order to reduce pesticide use and promote
soil conservation.
Reducing waste and consumption of non-renewable
resources.
We promote and participate in recycling programs
in our communities.
We are committed to reusable packaging, reduced
packaging, and water and energy conservation.
Encouraging environmentally sound cleaning
and store maintenance programs.
Promoting the purchase of bulk food and other
products utilizing reduced or reusable packaging,
as well as encouraging shoppers to reduce
waste through nickel per bag rebate program."
== 
See also ==
Environmental accounting
Environmental economics
Environmental finance
Environmental pricing reform
== Notes
