Even though the conventional capitalist corporation is the globally do
minant form of business organization, it may not be the most environme
ntally friendly. Given the need for a sustainable steady-state economi
c system, some other form of business organization will likely be requ
ired that uses natural resource inputs more efficiently and is less gr
owth oriented than the typical corporation. An attractive alternative
is the producer cooperative, where employment is accompanied by a righ
t to democratic participation in organizational governance and a share
of surplus earnings. A comparative theoretical analysis of cooperativ
e and profit-maximizing corporate behavior suggests that cooperatives
will tend to use natural resource inputs more efficiently and will be
less growth oriented than corporations. The limited comparative empiri
cal research that is available supports the greater input efficiency o
f cooperatives relative to corporations. This same research suggests t
hat in fully employed economies, cooperatives will be less growth orie
nted than corporations, although where unemployment is substantial the
reverse is likely. Environmentally sustainable full employment is the
oretically achievable through workweek reductions.