Accounting for social impacts and costs in the forest industry, British Columbia

Business reviews of the forest industry in British Colombia, Canada, typically portray an unequivocally positive picture of its financial and economic health. In doing so, they fail to consider the following six categories of social impacts and costs: (1) direct and indirect subsidies; (2) government support through investment; (3) community dependence; (4) the maintenance of public order; (5) aboriginal title; and (6) the overestimation of employment. Our findings show that conventional economic and financial accounting methods inflate the industryʹs net contribution to the economy. We make a number of recommendations to address this shortcoming to improve future accounting and reporting procedures.