“Earth’s Balance Sheet” discussion by Nestle

A discussion with Nestle’s Jose Lopez (http://www.youtube.com/watch?v=ulB-ETDI2wA) focuses on the idea of the Earth’s balance sheet, a concept described by Solomon Darwin in (http://openinnovation.berkeley.edu/Solomon_Darwin_Balance_Sheet_Earth_Executive_Summary.pdf). The idea is to account for the assets that are removed from the earth and not replenished in order to realize the profits that are generated and services offered. This balance sheet and its contributions by individual supply chains, nations, consumers etc is described as an accounting for the long term impact on the Earth as an entity, just as all the other stakeholders lay claim to a company’s impact. Should each company be required to examine their contribution to the Earth’s balance sheet and be required to be involved in offsetting consumption of assets with equivalent replenishment of other assets or reduction of liabilities ? How should the rules of sovereign nations regarding their individual responsibility with respect to the Earth’s balance sheet be balanced with a company’s goal to maximize shareholder value ? Is the Earth a shareholder to a corporation too ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , , . Bookmark the permalink.

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