Sustainable Capitalism

1. Introduction

Sustainable capitalism seek to maximize long term economic value by creating and reforming markets in order to address real needs by considering all costs in the decision –making of any organization. It tries to make the economic value of a company by shaping the market to meet the needs of that company. Sustainability means using anything in a way that will benefit everyone involved in that process over a long period of time. Capitalism is an economic ideology that is based on creating personal wealth with higher level of freedom and self-governance which in turn unlocks the creativity of human. Capitalism is effectively known for rewarding hard work, innovation and ingenuity (GIM, 2012). In this sense, sustainable capitalism

The cost can be reduced as the company does not have to spend money in handling a lot of waste material as cost of handling waste cannot be replaced by the waste itself. For example a mining company that does not use sustainable capitalism will encounter themselves producing too much material in its operations. Handling and maintaining waste dumps will cost the company more money. Considering the social factor of sustainable capitalism, companies that follow this system have better human-capital behaviour. Human-capital practices can be defined as is an approach to employee staffing that perceives people as assets whose current value can be evaluated and whose future value can be improved through investment. (TechTarget,

Cost of debt is the effective rate that a company pays on its current debt (TheFreeDictionary, 2013). It can be measured as either before-tax or after-tax returns; however, because interest expense is deductible, the after-tax cost is seen most often.. and capital constraints. This paper will rationale that it is because of the reputation that companies obtain from utilizing sustainable capitalism. Companies, for example spend a lot of money to get the social go ahead in a given area. This can be reduced when the community has a good impression of such companies from other businesses they