ACCT 210 Lecture Notes - Lecture 28: Erosion Control, Cost Accounting, Ecosystem Services
17 Jun 2020
School
Department
Course
Professor
Document Summary
Small/no progress despite innovative firms that implement new practices. The problem is simple: it"s generally still cheaper to buy environmental harmful products than the substitute products that are produced in a less harmful way. In addition, it is hard to value/price the externality caused by organizations. True cost accounting would make successful business = sustainable businesses. Sustainability 1. 0: reduce current environmental footprint and cut waste. Sustainability 2. 0: the focus shifted from cost reduction to innovation. Sustainability 3. 0: major term will be redundancy instead of asking for profit options, firms will focus on minimizing impact. The ability to quantify ecosystem services helps to establish a more sustainable market standard. (exp. : erosion control provided by forests: calculate how much a similar procedure to achieve this goal/outcome would cost ) Putting a price on free nature services helps managers to search for the optimal solution rather than just freely and extensively using those services.
