Accounting For Water Paper # 8

924 WordsDec 8, 20154 Pages
Accounting for Water Paper #8 Fall 2015 1. Read The Tragedy of the Commons by Garrett Hardin at http://www.garretthardinsociety.org/articles/art_tragedy_of_the_commons.html. In plain English, what is “the Tragedy of the Commons?” Answer 1: Tragedy of the commons exposes the ignored truth that supply of resources is limited. Everyone has equal right on common resources and this freedom works if there are limits. Increase in demand by an additional unit will reduce supply by same and at certain stage the demand will overwhelms the supply. This situation occurs when individuals tries to maximize the benefit while neglecting the society. Water is going through same phase due to which it’s being privatized and may be in future it is not -common. 2. What is the literal Commons to which we must all pay attention? How does it pertain to the sustainability movement for business and accounting? Melting glaciers, depleting water resources and decreasing air quality needs immediate attention. Everyone needs air and water to survive. Business started practicing sustainable accounting in mid-70. This practice discloses non-financial and financial information related to the business activities that has direct impact on society and its environment (air, water, people etc.). Companies use triple bottom line method to calculate the impact of business activities on society and based on these calculation companies makes policies which make its operation more ecologically and socially
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