Posted on 02/02/2006 10:50:47 AM PST by presidio9
Corporate America must face up to green and ethical challenges if they are to avoid disaster, former US Vice President Al Gore has told the BBC. Firms are so focused on delivering quarterly financial figures, he said, they lose sight of long-term trends.
"The quarterly reports might look good for a little while and then they fall off a cliff," he told BBC Radio 4 In Business presenter Peter Day.
The US car industry's problems is an example of consumer power, he said.
"Ford and General Motors are now in a state of crisis in the United States because they have missed the long term shift in consumer preferences and societal preferences toward more efficient automobiles with much less pollution," Mr Gore said.
Managing money
As such, it is not just US companies that need to change their ways.
Five years ago, a Supreme Court decision put George W Bush in the White House, leaving Mr Gore out in the cold.
Mr Gore shuns companies that pollute
He immediately changed direction.
"I went into investment management and very quickly began to notice some rather odd developments that seemed to me out of touch with reality," Mr Gore said.
"So many very significant factors that affect shareholders, that affect the health of the company were being sort of systematically ignored.
"And not only the environment, but also corporate ethics and stakeholder analysis; how're the communities where a company is located being dealt with?"
Bubble of unreality
Mr Gore said he firmly believed the impact a company has on the environment and on society affects both its underlying health and the price of its shares, and he believed ever more US business leaders are waking up to this new reality.
So he is putting his money where his mouth is.
In 2004, he and the former Goldman Sachs investment banker David Blood founded the international investment firm Generation Investment Management, which actively seeks to invest in companies that take a sustainable view of their business.
"David and I met privately with the chief executive of one of the largest companies in America," Mr Gore said.
"He has been a supporter of President Bush and still is, but he said to David and me in confidence: 'Let's face it, 15 minutes after President Bush leaves office the United States will have a new policy on climate change and carbon emissions'.
"I think the significance of that is that many business leaders are now looking at their 'hole cards' as we say in America, and realising America is in a kind of bubble of unreality.
"As soon as the current administration leaves, and perhaps before it leaves incidentally, there will be a change and those companies that get out in front of this curve are going to be better positioned," he predicted.
Mr Gore is also doing his best to spread the word.
He recently criss-crossed America to warn about global warming, at about 1,000 gatherings - a journey documented in the independent film "An Inconvenient Truth", which premiered at the Sundance film festival in Utah last week.
"Between 1990 and 2000 our military has been cut virtually in half; the number of army divisions has been reduced from 18 to 9, the navy has shrunk from 600 ships to 300, and the number of air wings has declined from 36 to 18. That has been the national security policy of the administration." Former Vice President Dan Quayle, Imprimis, October 2000.
In August 2001 members of the Congressional Armed Services Committee visited 20 military bases in 12 states. Chairman Curt Weldon said, "America's military has deteriorated to the point that the U.S. could not do a Desert-Storm-level mission today." As an example, he said he "saw mechanics on $2 billion B-1 aircraft trying to install spare parts from another plane, because no B-1 parts were available. This reminds me of 10 or 12 years ago when we were listening to what was happening to Russia, how their infrastructure was breaking down," he said. "Now the same thing is happening to our infrastructure."
Energy-dependence on others - When the U.S. entered World War II not only was its private sector a larger share of the economy compared to its significantly smaller share today (as covered above regarding significantly reduced war-time economic surge potential), but America's defense spending was a much, much larger share of total government spending than its meager share today. During that war America was a creditor nation with the capacity to pay for all its import needs with export earnings (not today's largest debtor nation on earth with exploding trade deficits), and America's manufacturing base was a significant portion of the total economy, unlike today's declining base.
AND - during World War II America was energy self-sufficient since it then produced all oil and natural gas needed, and even exported oil to others. The Energy Report graphically shows today America has lost its energy independence, since its oil production peaked in 1971 and reserves continue to decline with today's oil production now back to the level of 1950, and declining - - as we now import 62% of needed oil and more and more of needed natural gas to makeup for declining domestic production vs. soaring consumption at the same time that other nations demand more energy and all sources of supply have declining reserves - - which will cause increased tensions over oil in the future.
"After World War I, the "war to end all wars," we scaled down to virtually nothing. In World War II, we were able to build up because we had this magnificent monumental manufacturing might. We don't have that anymore. And a lot of that manufacturing ability has gone straight across the Pacific Ocean to China. China has a huge military-industrial structure in place that it can use to turn out missiles and tanks and planes - - much financed by its trade surplus with the USA. Which is exactly what we did when the Second World War started, in converting plants into manufacturing military munitions. We couldn't do it again today." April 2001, Geoff Metcalf interviews China expert Steven W. Mosher (see Links).
All of this, including our accelerating energy crisis, points toward major living standard and national security implications facing our young generation - - perhaps more so than faced by their parents and grandparents. We cannot allow this danger to be passed along. Therefore, the Federal Government must concentrate more on the number one reason for its establishment, National Security, and less on the overwhelming menu of stuff not sanctioned by our founding forefathers.
Oh man... Ya gotta watch out for that Geoff Metcalf kinda stuff that belongs on World Net Daily and NewsMax, et al... It can make ya crazy and turn ya into one of them fundamentalist constitutionalist America first right wing nuts that's even a danged Christian WITH STANDARDS and stuff like dat!!! (/dripping sarcasm)(broad grin, too)
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