Opportunity Cost
The benefit that could have been received by taking an alternative course of action. Opportunity Cost is used to determine if a business investment is worthwhile in light of other opportunities. It should be a component in projecting cost flows.
Open-Loop Recycling
The conversion of material from one or more products into a new product, involving a change in the inherent properties of the material itself (often a degradation in quality). For example, recycling plastic bottles into plastic drainage pipes. Often called downcycling or reprocessing.
Niche
A type of market characterized by small size (relative to traditional markets) and special interests. Growing markets and trends often start as niche markets. In most categories, because there are no market majorities (a product or service with more than 50% of market sales), niche markets can be influential and lucrative.
NGO (Non-Governmental Organization)
A non-profit group or organization that is run neither by business or government created to realize particular social or economic pursuits, through research, activism, training, promotion, advocacy, lobbying, or community service.
Neoclassical Economics
Most of modern economic theory is based on this set of assumptions and mathematical models of markets. Neoclassical economic theory believes that markets are the best mechanisms for solving problems and are most effective when left alone without government or corporate interference. While this may be true, it is only so when markets and economies […]
Negawatt
The saving of a megawatt of power by reducing consumption or increasing efficiency.
Natural Step™
A trademarked, science-based framework to help organizations and communities understand and become more sustainable. It is also an international organization that provides consulting and education services around this framework. More information: www.naturalstep.com
Natural Capital
One of at least four forms of capital used by people, organizations, corporations, and governments, to build and maintain their livelihoods. Natural Capital includes all forms of resources from the environment, including minerals, water, air, sunlight, heat, plants, animals, and other organic matter. Sustainable organizations seek to maximize their effectiveness and efficiency in using natural […]
Multiple Stakeholders
Traditionally, stakeholders in a company have been thought to be limited to stockholders and, possibly, employees. However, stakeholders have come to refer to all people for whom a company or its products and services have an impact, including, customers, governments, organizations, and the environment. Sustainable management requires that these stakeholders’ needs be addressed in the […]
Muda
A Japanese word for waste especially through poorly organized systems. Organizations seeking economic, manufacturing, and human efficiency seek to design and/or replace systems to eliminate muda.
