Tuesday, November 25, 2014

The Value of Conservation - benefit that flows from nature to us.

Fairness is a fundamental component of a well functioning economy. Buyer and seller have to believe the transaction is fair in order for the transaction to work. But in the early years of our industrial process, the buyers did not understand the economics of nature being transformed for the sake of human consumption. We did not realize the cost of a new shiny cell phone meant labor disputes, social unrest, environmental pollution, climate change, and so on. But today's market place is much smarter than before. Stakeholders have the knowledge and they are incrementally measuring and demanding back the cost that was previously uncaptured. They still want their new shiny cell phone, but they want to know it's made sensibly and in the best way possible. The crowd is also more connected than ever and their reinforcing the good ideas and collectively rejecting the bad ones.   

If economics is really the currency of policy, this new demand of economic accountancy for natural resources and social and environmental impacts should shape policies around the world. But the changes are already happening. We are already seeing more stringent social and environmental standards and reporting requirements. We are also seeing the connected web becoming more exposed and responsive to any violations.    


Well, that's the price you pay for playing this game, right?



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