Short- versus Long Term Dynamics The Example of Ecological Management

The natural environment has become a public issue of high priority. One of the great challenges to the management of firms today is achieving a balance between the economic, social and ecological dimensions. Managers and organizations are learning that dealing with ecological issues seriously is part of their responsibility. In this paper, the inherent rationality of an ecologically oriented approach to management is highlighted. For this purpose, a conceptual framework for a comprehensive fitness of organizations is presented. Based on this framework and on case studies in small businesses a simulation model has been developed. The structure of this model is outlined. Then, on the basis of simulation experiments, several aspects of ecological management are discussed. The focus is on tradeoffs between shortand longer term decisions, as well as the role of pre-control, and the vulnerability of one-sided strategies are discussed. 1. Purpose and Scope of this Paper The purpose of this paper is to highlight the role of the ecological dimension in the context of a management for the long term. The focus will be on small firms. These are exposed to arguments, which tend to be unbalanced. Either the