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Question: Conservation Is Good Business at The Walt Disney Company Say the word "Disney" and you may think of any one of hundreds of movies produced by Walt Disney Studios. You may think of a wild, exciting ride in one of the Disney theme parks around the world. You may even think of a fun-filled resort area within Walt Disney World in Orlando. How many of you, however, would think of the environment when you hear the word "Disney"? In 1990, The Walt Disney Company introduced an initiative called "Environmentality." Disney Online describes Environmentality as "a fundamental ethic that blends business growth with the conservation of natural resources. Attention to the environment drives new business initiatives, demonstrating how environmental stewardship goes hand-in-hand with bottom-line cost savings." Environmentality goes beyond just complying with laws. It includes "purchasing recycled products, waste minimization, resource conservation, research and development, community involvement, and education" to make the program successful. A 2003 report designed to highlight environmental accomplishments describes many examples of waste reductions and resource conservation. One example is a water-monitoring program in Disney's Animal Kingdom. The monitoring results identified areas where water usage could be reduced, saving an estimated 145,000,000 gallons of water each year.
Critical Thinking
1. List at least two reasons why The Walt Disney Company would be interested in such environmental measures.
2. If The Walt Disney Company purchased equipment to help measure water usage, would that equipment be classified as an asset, liability, or owner's equity on the balance sheet? Why?
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