Module Eight Debate
One of the most often-debated topics regarding sustainability is the relationship between economy and ecology. Traditional business philosophies often pit economic success against environmental goals, resulting in stalemates and perceived compromises. Essentially, the conventional wisdom was that environmental goals required financial sacrifice. Today, some business schools, such as the University of North Carolina at Chapel Hill’s Kenan-Flagler School of Business, have embraced a business philosophy that no longer puts economic and environmental considerations at odds. Kenan-Flagler uses the term “Triple Bottom Line” to label this approach of environmental and economic sustainability as complementary goals.
Here is another business school that promotes this concept, and defines it in this article:
http://www.ibrc.indiana.edu/ibr/2011/spring/article2.html (Links to an external site.)
Although business philosophies have evolved, there is still considerable debate regarding whether prioritizing environmental goals is always good for the economy. After reviewing your knowledge of the laws of thermodynamics and the definition of sustainability, read the following landmark article on the topic:
Economics and Ecology: The Need for Detente in Conservation Ecology
http://www.ecologyandsociety.org/vol2/iss1/art4/ (Links to an external site.)
In addition, there is a good argument that the problem is not really about opposing views, but rather an error in accounting. For example, it is extremely difficult to place a value on clean air, and if we could, on who’s balance sheet would it reside? Traditionally, for those items that are difficult to value, we have not placed any accounting value on them at all, causing us to ignore costs that truly are realized, and leading business to false accounting profits and unsustainable practices.
