Many Entrepreneurs Claim to Care About Sustainability, Yet Make Dec...

A corollary to how markets impair morality may be how entrepreneurs who care about sustainability make business decisions that harm the environment. Just as consumers seek "best value" when businesses compete the boss seeks "best profit".

"Entrepreneurs with very high entrepreneurial self-efficacy want to exert influence. This makes them more likely to disengage from values that limit their options. The same principle applies to an unfavorable industry environment, for example if the company is facing sharp competition.

"Up to now, economics courses have placed an emphasis on turning out budding entrepreneurs with a high degree of entrepreneurial self-efficacy," remarks Patzelt. "Now we know that this strategy can also have undesired consequences."

This research suggests that government regulation to control the competitive business environment will be necessary.

"Law-makers could pass stronger regulations in industries prone to challenging economic climates with a view to protecting the environment,"...


Tags: ignoring environmental values

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