ecological sustainability and social equity read with optimum firm
Save nature call and combine the elements of again that in nature.
There are two ways of life; one Sanyasa @ Renunciation and the other,
Grahastan @ Family life.
A renunciate allows the tree to grow upon him in the Aranya; A family
man may have to cut the tree right from firewood to building his home.
Prakrithi is undestroyable, but changes shapes regularly by refurbishing.
Eco balancing is natural. Just imagine; all were flora and fauna once with
90% water, and now reduced 70% only. @0% is exposed as land, depicting the
prakriti. It means that eco balancing is a process. Forest under the sea
in the salt water. Well protected but of no use to the living creatures of
the sea, except only as a hide out. Nature lives independently; even the
renunciate is a dependent; then a grahastan must always be a dependent as
well as supporting the ecosystem. If so, he has always struggled to balance
the demand and the supply -the economic theory. In that process, due to the
population of his family, consumptions do increase when, had to seek the
supply by any means. Always, one man’s food is another man’s poison. So, in
that process Nature yes with the human is supplying his demands and at one
stage fails to run the race. That indeed is supply is poor but consumption
goes up, disproportionately, when nature is also caught, in that demand and
supply, economic theory, unfortunately. It is natural. Economy is in all
directions. The best way to support and keep in good humour the wife’s
spending is, Husband equally earning more. If not, well, the economic state
does prevail. Where the optimum firm principle is asked to be adopted,
Renunciate will suffer. Economy is always a battle of the budge. Some how
it has to be fought. K Rajaram IRS 21724
On Sun, 21 Jul 2024 at 07:24, Markendeya Yeddanapudi <
markandeya101...@gmail.com> wrote:
>
>
> --
> *Mar**The Optimum Firm*
>
>
> *Yesterday from Flipkart I received the book---Man’s Search for Meaning—by
> Viktor E Frankl.After just ten pages, the reading has become very painful,
> though I read many books on the Nazi atrocities on Jews. Most
> incongruously, a thought occurred to me—are we today not carrying out even
> worse atrocities against nature in the name of development, science etc?
> While carrying on the routinized murder of nature euphemized as economic
> activity we feel moral, righteous, even fill us up with a sense of
> achievement, when we completely eliminate a forest, destroy a water body
> etc, for the ‘development’. We bring many fake arguments to shout out
> sanity, obfuscate issues by dumping meaningless and absolutely irrelevant
> arguments, collect people swayed by irrationality to create oppressive
> bludgeoning mad public opinion. The saddest thing is, we feel that we are
> honest.*
>
> *The one topic we mugged, memorized and wrote repeatedly to score marks
> when we were students was ‘the optimum firm’, of Prof EAG Robinson. Before
> I give his definition, which I don’t think my hormonal system can ever get
> rid of, I shall give my own definition.*
>
> *An optimum firm is that firm, which under the existing state of
> enlightenment, gives the maximum contribution to the happiness of all
> people, subsumes its activities in symbiosis with nature, ecology, and
> contributes to the sense of positive and purposeful direction of the
> society in achieving specific goals in terms of al round happiness of all,
> without the mental pollution called competition. The basic paradigm of its
> activities is synchronization of its activities with nature and never
> wounding nature. Profit means, profit to nature, ecology, and human society
> and cost means the monetary representation of each and every activity not
> only within the firm, but also in terms of effects on nature, ecosphere,
> biosphere and the human society and the social contribution to the firm in
> various ways.*
>
> *Now I give the definition of Prof Robinson, which today has become the
> paradigm of the basic economic and business logic.*
>
> *“An optimum firm is that particular firm which under the existing
> conditions of technique and organizing ability has the lowest average cost
> of production per unit of output, when all those costs which must be
> considered in the long run are included.”*
>
> *Fortunately my hormonal system achieved some progress in getting rid of
> this definition as I pleasantly find that I cannot exactly repeat it as it
> was written in the texts. To translate this into the day today actions, an
> optimum firm is that firm which avoids the payment of many expenses by
> shifting its expenses to the society or hapless and helpless workers or
> creates unmet costs in the shape of much pollution. According to the
> professor it is the natural outcome of perfect competition as a result of
> which the firms cannot determine the price in the market and have to adopt
> every means to reduce (avoid) their expenses, each firm adopting its own
> strategy to achieve that optimum level. Competition creates the cost
> reduction stampede and unending stress. He gave the fronts from where this
> cost reduction will be attempted by the firms to achieve the optimum—the
> technical optimum, the managerial optimum, the financial optimum, the
> market optimum and the market uncertainty optimum and the continuous
> process of reconciliation of the different optima. But he did not write a
> single word,about the consequences to the society,to the environment,to the
> ecology and the biosphere.There is also the basic contradiction.My cost is
> income to whom I pay.If I achieve cost reduction,automatically,it will
> result in income reduction and as a result market reduction.*
>
>
>
> *Is it not time to change the definition and meaning of optimum to save
> our earth? Cost must include not only costs of the firm, but also costs to
> the society, to the environment; to the ecosphere...*
>
> *YM*
>
> *Chat GPT*
>
>
>
> *### Revisiting the Concept of the Optimum Firm*
>
>
>
> *The concept of the "optimum firm" has traditionally been defined within
> the confines of classical economic theory, particularly through the lens of
> cost minimization and profit maximization. This perspective, heavily
> influenced by the work of economists like Prof. EAG Robinson, emphasizes
> efficiency in production and competitive dynamics in the marketplace.
> However, as environmental and societal concerns become increasingly
> pressing, there's a growing recognition that this traditional definition is
> insufficient for addressing the complexities and challenges of the modern
> world.*
>
>
>
> *### Traditional Definition of the Optimum Firm*
>
>
>
> *According to Prof. EAG Robinson, an optimum firm is:*
>
>
>
> *> "That particular firm which under the existing conditions of technique
> and organizing ability has the lowest average cost of production per unit
> of output, when all those costs which must be considered in the long run
> are included."*
>
>
>
> *This definition primarily focuses on economic efficiency, encouraging
> firms to minimize costs through improved techniques and organizational
> strategies. The emphasis is on achieving the lowest possible production
> costs to remain competitive in the market. However, this approach often
> leads to externalities, where firms shift costs onto society and the
> environment, resulting in pollution, resource depletion, and other negative
> impacts.*
>
>
>
> *### A New Definition: Integrating Environmental and Societal Costs*
>
>
>
> *In light of contemporary environmental crises and the need for
> sustainable development, it is imperative to redefine the concept of the
> optimum firm. A more holistic definition might be:*
>
>
>
> *> **"An optimum firm is that firm which, under the existing state of
> enlightenment, maximizes the happiness and well-being of all people,
> operates in symbiosis with nature and ecology, and contributes to a
> positive and purposeful direction for society. It ensures that its
> activities do not harm the environment, and it internalizes all costs,
> including those to society, the environment, and the biosphere."***
>
>
>
> *### Key Elements of the New Definition*
>
>
>
> *1. **Symbiosis with Nature**:*
>
> * - The firm operates in harmony with natural ecosystems, ensuring that
> its activities do not degrade the environment.*
>
> * - Profit is redefined to include not just financial gain, but also
> ecological and societal well-being.*
>
>
>
> *2. **Comprehensive Cost Accounting**:*
>
> * - Costs are not limited to internal expenses but include externalities
> borne by society and the environment.*
>
> * - Firms are responsible for the full spectrum of their impact,
> including pollution, resource use, and social consequences.*
>
>
>
> *3. **Societal Contribution**:*
>
> * - The firm's operations contribute to the overall happiness and
> well-being of society.*
>
> * - Activities are aligned with broader societal goals, such as
> sustainability, social justice, and public health.*
>
>
>
> *4. **Elimination of Competition-Driven Stress**:*
>
> * - Rather than competing to reduce costs at the expense of workers and
> the environment, firms cooperate to create a balanced, sustainable economy.*
>
> * - This approach fosters innovation and resilience, ensuring long-term
> viability and societal benefit.*
>
>
>
> *### Implications for Modern Business Practices*
>
>
>
> *Adopting this new definition of the optimum firm requires a fundamental
> shift in business practices and economic policies. It involves:*
>
>
>
> *- **Regulatory Changes**: Implementing policies that enforce
> comprehensive cost accounting and penalize environmental degradation.*
>
> *- **Corporate Responsibility**: Encouraging firms to adopt sustainable
> practices and prioritize long-term societal and ecological well-being over
> short-term profits.*
>
> *- **Consumer Awareness**: Educating consumers about the true cost of
> products and services, promoting responsible consumption.*
>
>
>
> *### Conclusion*
>
>
>
> *Revising the definition of the optimum firm to incorporate environmental
> and societal costs is not just an ethical imperative but also a practical
> necessity for ensuring a sustainable future. As we face unprecedented
> environmental challenges, it is crucial to align economic activities with
> the principles of ecological sustainability and social equity. By doing so,
> we can create a more just, resilient, and harmonious world for future
> generations.*
>
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