What is your organization’s most important asset? CEOs often respond that the organization’s people are its greatest asset. But if this is true, where are people accounted for in the financial statements? Today, people are generally classified as expenses on the income statement and liabilities on the balance sheet – not as an investable asset. Thus, when CEOs seek to increase profit, they cut costs – like people – rather than investing in assets – like people – that can appreciate. What Is Your Organization’s Most Important Asset?
“Now, explain it to me like I’m a four year old,” says Denzel Washington to Tom Hanks in the 1993 film Philadelphia. We pose this same question to the Global Reporting Initiative, the standard-setter for sustainability reporting.
Motivated, in part, by GRI’s own Report or Explain Campaign, in which GRI exhorts businesses around the world to issue sustainability reports or explain why they don’t, our campaign is aimed at GRI itself.
CBS is not only the most intellectually rigorous form of sustainability management, it is the one upon which the Global Reporting Initiative (GRI) explicitly relies in the form of what it refers to as sustainability context.
On April 30, 2008, the Federal Trade Commission (FTC) will conduct a second public workshop in its continuing efforts to address the question of how sustainability claims in advertising should be handled.