In “An Inquiry into the Nature and Causes of the Wealth of Nations ”, published in 1776, Adam Smith—
the father of economics, outlines what business is and emphasizes on the role of self-interest in business.
In 1970, Milton Friedman in his article “The Social Responsibility of Business is to Increase its Profits”
stated that, the business of business is to only make profits. Therefore, business was all meant to make
wealth and profits for the shareholders. Profits were made; distributed to the shareholder; and profits
made progress. The benefits of this progress lead to development in the field of science, technology,
medicine, production etc. In this race to earn and enjoy the fruits of his labor, man failed to realize that
his progress has come at a price.
During the Industrial Revolution, human productivity increased by 20,000%; when labor was scarce
and natural resources were abundant. Now labor is abundant, supplemented with technological skills, but
natural resources are scarce and have been over-exploited, which eventually, lead to severe environmental
problems.
Sustainable development is not a new concept. Over the years, many cultures have recognized the
need for harmony among people, and between people and the environment. What is new is the
articulation of this idea for the framework of better living. In 1972, with the publication of Dennis
Meadows’ book, The Limits to Growth and with the Earth Summit in 1992, the phrase “Sustainable
Development” was coined. The human race realized that industrial development has not only brought
in economical development but also endangered the very existence of mankind. Hence, in the 21st
century a new mantra evolved: “Sustainable development”. However, its definition and understanding
has always remained fuzzy and confusing. It meant different things to different people. |
