How green can money be; climate change responsibilities of the private sector in a capitalist system

This paper investigates the responsibilities of the private sector in climate change mitigation within a capitalist system. It examines the incentives inherent in capitalism that drive corporate behaviour, particularly the pursuit of profit maximization, and how this affects the sector’s ability to engage in environmental sustainability. The research reveals that while companies can undertake certain green initiatives autonomously, their efforts are constrained by the need for profitability. Consequently, the paper argues that government intervention is essential to facilitate and enhance the private sector’s contributions to climate change mitigation. By analysing various academic perspectives, such as business sciences, environmental sciences, and legal sciences, as well as political sciences, this paper concludes that the division of responsibility between the state and private businesses is clear-cut: it is the government’s role to set moral and legal boundaries within which...Show moreThis paper investigates the responsibilities of the private sector in climate change mitigation within a capitalist system. It examines the incentives inherent in capitalism that drive corporate behaviour, particularly the pursuit of profit maximization, and how this affects the sector’s ability to engage in environmental sustainability. The research reveals that while companies can undertake certain green initiatives autonomously, their efforts are constrained by the need for profitability. Consequently, the paper argues that government intervention is essential to facilitate and enhance the private sector’s contributions to climate change mitigation. By analysing various academic perspectives, such as business sciences, environmental sciences, and legal sciences, as well as political sciences, this paper concludes that the division of responsibility between the state and private businesses is clear-cut: it is the government’s role to set moral and legal boundaries within which businesses must operate. This study contributes to the dialogue on corporate environmental responsibility by highlighting the limitations of private sector initiatives and the crucial role of government in enabling meaningful progress in climate change mitigation.Show less

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How green can money be; climate change responsibilities of the private sector in a capitalist system