Business and Competitive Advantage: Creating and Sustaining Ideas to Solve Contemporary Issues in Recent Era

The future of business lies in its sustainability. Any business which is likely to put undue pressure on environment, over exploit resources, and adopt practices undermining health and hygiene will run the risk of being rejected and hence move out of the context. This emanates from strong economic and social logic. The economic logic drives business and how it will fare in the market. The empirical EKC hypothesis (Environmental Kuznets Curve) provides evidence that environmental quality is a luxury good and it is demand more as the income increases. Below a cut-off point, there is a positive relationship between per capita income and environmental degradation, while once the turning point is reached, above a cut-off per capita income, the environmental degradation stops and improvement in environmental quality starts occurring. This necessitates the fact that at higher income, people would start demanding environmental quality.