The transition to the sustainable enterprise

The sustainable enterprise is entering a new phase. Private enterprise engages in a shift from environmentally friendly production methods towards true sustainable entrepreneurship, dealing both with quality and volume aspects of natural capital. Corporate governance changes at two levels. First, the internal governance of the firm alters as new environmental preservation demands come forward. Secondly, the external governance of the firm changes as new initiatives need to be employed to ensure adequate and sustainable social, technological, and infrastructural conditions for production. It is argued that the preservation of non-reproducible 'key stocks' of energy, biodiversity, and space requires new and special attention in the strategic management of the sustainable enterprise. Also, it is shown that evolving ethical values of intergenerational equity demand a timely transition to new business practices. Finally, a program for governments and enterprises to enhance progress towards the next stage of sustainable entrepreneurship is presented. (C) 2002 Elsevier Science Ltd. All rights reserved.