ECONOMIC STRUCTURE FOR ENTERPRISE DECISIONS - EFBD

Economic Framework for Business Decisions - EFBD

Economic Framework for Business Decisions

Economic forces seem to be behind what is perceived as unsustainable consumption patterns. Changing unsustainable behaviour requires developing an economic environment where this behaviour is no longer attractive. It is thus important to understand the factors behind individuals' and societies' decisions on consumption in the first place. These decisions are formed by factors that range from personal preferences and tastes, to ways individuals and countries balance their accounts. It involves both marketed and non-marketed goods and services. It is influenced and influences information and technological development. Above all, it is dynamic, which means it is subject to change with time, for the better "more sustainable" or for the worse. This dynamic aspect is in fact fundamental to policy, since it provides the basis for policy measures to work over time.

Sustainable consumption covers not only a number of disciplines but also a number of fields within economics. While recognising that the study of consumption patterns is not exclusive to economics, the document draws primarily on economic theory for examining the factors that determine household final consumption of goods and services. The conceptual framework identifies and characterises the main driving forces influencing consumption patterns, and briefly suggests directions for the development of policy instruments that address the causes of unsustainable consumption. OECD has a substantial body of work discussing policy instruments to address market failures including those linked to consumption. The Economic Conceptual Framework also provides a basis for the specific components of the Sustainable Consumption Programme, its sector case studies, and its policy case studies. The conceptual framework places OED's Sustainable Consumption Programme into context under a coherent economic and analytical framework.In addition, topic of this week comes up with different type of ownership structure influences governance performance, governance ethos and appointment of directors. Forbes and Milliken (1999) and Davies (1999) discuss this distinctiveness mainly on basis of non-profit and for-profit organizations, former including those in public sector, crown entities, local authorities and those charitable trusts, while latter being made up of variety of benefit-aimed companies sorted by size of firms, publicly-listed vs. private businesses, associations living in new finances vs. old finances, as well as cooperative, mutual societies and employee-owned enterprises vs. SOEs. With different ownership kind, governance performance reflects in diversity of command, service and external functions. For example, non-profit organizations stress certain specific control function--their non-profit status, as well as service function--service quality because they might be responsible for large community. Although distinction does exist due to type of ownership, similarity of governance ethics is obvious. As, there are several ways to add ethics to corporate governance:

1.Legislation

2.Jawboning

3.Peer pressure

4.Regulation

Training and reflection

Among, peer pressure and training are working better than others. At mean time, appointment of directors has something in common and different with type of ownership. For instance, in most cases, the qualified candidate should possess following attributes as: personal qualifications, time availability, absence of conflicts, and major ...