posted on Feb, 16 2014 @ 05:23 PM
I've been catching up on my reading/listening this weekend. My schedule has changed as so have my 'study' habits. I've always listened to
Terrance McNally's Free Forum on KPFK radio in LA (Pacifica Network) because his programs are very positive and he always has the most fascinating
guests. I was looking through the archives from his show (my schedule doesn't allow me to hear it live anymore) and came across an interview with
Hazel Henderson. I'd never hear of her before but the short bio intrigued me.
I'm sorry to say that I'd never heard of her before and she been around and involved in business, economics, pollution, etc since the mid sixties
and takes a whole systems approach to all her areas of interest (which are pretty vast - as are whole systems)
A major focus of hers is the deception of GDP and working towards a more accurate measurement of 'progress'. In the referenced she expalins how on
an individual corporate basis the standard Balance Sheet is analogious to a national GDP and just as inaccurate.
The title of this thread is the title of an op-ed she wrote for GreenBiz and is an excellent primer on 'Externalities" in business.
An “externality” is code in economics jargon meaning any cost of producing a product that can be omitted (i.e., externalized) from the
producer’s balance sheet and passed on to taxpayers, the public or hidden in the environment for future generations to pay.
Responsible investors internalize these externalities in their “triple bottom line” ESG accounting in their financial decisions (SIF) as
do institutional investors of the UN PRI with $32 trillion AUM.
Externalities are now too obvious and can no longer be the basis of business models. False “profits” and toxic sub-prime assets are being flagged
in company accounts. They are becoming questioned in GDP, now a Grossly Distorted Picture of a country’s “progress.” New scorecards: Canada’s
Index of Wellbeing, OECD’s Better Life Index, the UN’s Human Development Index, Bhutan’s Gross National Happiness, these new multi-discipline
“dashboards” of quality of life. Going beyond money-based measures to account for health, education, poverty gaps and the environment helps
clarify that money is an accounting unit – not the real human and resource wealth it tracks.
I hope you read the article and her other work as she (and many others) are making important points.
One thing she said on Terrance McNally's Free Forum (you can hear his programs at AWorldThatMightJustWork.com) is that Renewable Energy and
Sustainable Businesses are taking over and that there is no stopping it. That would be why the old guard of fossil and nuclear power would be
fighting so hard to survive right now.
I hope you care enough to see solutions rather then just problems.
Check them both out.