Corporate plays a major role in shaping the lives of the people so they must be up to date with the social effects that they occur due to their business decisions.The interference of business into natural resources have caused a major impact in the 21st century as years are passing by.There as been an imbalance in the ecological biodiversity system so we must take into consideration our world is facing .We must understand the significance of ” Economic Invisibility of Nature” that are the driving forces for us to survive in this world .
The business world has been affecting the natural capital by the means of extraction of resources,deforestation, increasing carbon footprints etc.The economic invisibility of nature in our dominant economic model is both a symptom and a root cause of this problem so ,putting a value on nature could set a scene for the true green economy.If the cost of externalities can be measured( accounted ) it is basically the twice as the market price of timber and if these costs are taken into consideration the price of timber would be thrice the current price that would reflect the pain of the externalities caused.A company called ” Trucost ” took an effort to calculate the economic cost of top 3000 business companies is estimated to nearly 2.5 trillion dollars .So, a question must occur in everyone’s mind that ” How can these costs be kept into controlled or prevent business from degrading the natural capital ? “that’s so simple that means we must recognise natural capital basically the stuff of life .
The Green Accounting Project in 2000 that focused on the theme that companies must disclose their cost of externalities as Puma disclosed its externality cost in 2010 which estimates to 94 million dollars. However , the modern business is laying a good path to rectify its mistakes and contribute to the natural capital.The stakeholders are solely responsible for this causes so they are contributing to the restoration of the natural resources .As said by Carrol in 1979 “The social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of organisations ” .Now we should compare their social performance by the companies good efforts .For a restorative economy , International coalition has taken by Chartered Accountants in England and Wales to create a right path for maintaining the ecological balance .
Therefore , corporate responsibility will enhance corporate image and reputation, increased sales and market share ,improved brand image ,cost savings and benefits lower health and safety costs ,ability to attract and retain employees and increased appeal to investors .So, corporate responsibility will create a peaceful environment to the corporate sector as well as the society .
Reference :
https://www.ted.com/talks/pavan_sukhdev_what_s_the_price_of_nature?language=en#t-533278]
http://www.worldmapper.org/display.php?selected=299
http://www.trucost.com/?s=&post_types=publication
http://www.trucost.com/publication/natural-capital-risk-top-100-externalities-business/
https://www.theguardian.com/commentisfree/cif-green/2010/feb/10/pavan-sukhdev-natures-economic-model