Sustainability as the use of natural resources in a manner that prevents their depletion and seeks to maintain balance in the ecosystem.We recognise and acknowledge the need to conserve natural resources for the future and current generation. We at Anchor Management thus believe in strong sustainability.
We do not believe that manufactured capital can make up for natural capital, since natural capital can be irreversibly damaged. We therefore strive to find modern day, practical solutions that enable us to create sustainable value over time while still looking after our environment.
An externality is a cost or benefit experienced by a third party due to an economic activity. Externalities lead to market failures as they cause markets to be inefficient which leads to tragedy of the commons. Here, individuals acting according to their own self-interest deplete a shared resource without consideration of other users of that resource. The storyboard below depicts a typical tragedy of the commons in the fishing industry.
It is through that very reason that we at Anchor management do our best to limit and prevent externalities, especially those that are negative. We do so by adhering to the laws the government has put in place. Pollution is suppressed by firstly limiting waste as much as possible and secondly disposing that small waste in an environmentally frindly manner. Keeping Aqua waves clean by not littering and ensuring that there are no gas leakages on our boats.
To avoid a situation of the tragedy of the commons, we need to fish sustainably. In terms of over-fishing, one is not aware of it in the process but only realises it after it has occurred. In our previous fishing season, it is exactly what happened, the fish stock market collapsed due to over-fishing hence why the government had to intervene and effect certain fishing regulations and laws.
Resource depletion is the consumption of a resource faster than it can be replenished. This is bad for business as it means the business will run out of stock and have nothing to sell while incurring fixed costs, thus running at a loss due. This then affects the job security of our workforce, resulting in an increase of unemployment in the country. The economy will be negatively affected as the prices will be increased by the wholesalers as a result of depletion in stock more stock will be demanded but there will be less output.Anchor Management understands the global limit of resources and therefore practices sustainable fishing methods.
Sustainable yield refers to the amount of harvest that can occur while maintaining the population’s ecosystem stability and function. The voluntary industry codes are rules that are not mandatory. Only members of an industry or profession that have agreed to those codes are bound to those codes. These codes are developed within consultation with stakeholders. If the companies fishing in the Aqua waves decide on having a voluntary industry code that would result in them being bound by that code. It should be included in the codes that fishing in the shores is prohibited so all the companies belonging to the Aqua waves fishing industry will not fish in the shore as they have agreed to that code. In addition, there can be a limitation of the size of fish to be caught per week and thus a yearly limits.
Aqua Waves Marine Stewardship Council
Anchor Management Ltd is a proud founding member of Aqua Waves Marine Stewardship Council.
Since our goal is more focused on long term profit, we have regulations in place that promote sustainable fishing. There is past evidence showing that an industry without regulations in place rarely succeeds, because the resources gets depleted quickly. Unfortunately, government regulations didn’t do much of a difference as there were ships from other entities still placed in the coast and that goes against the idea of sustainable yield.
Sustainable yield refers to the surplus of a natural resource that can be harvested without reducing the capital base itself and giving the ecosystem adequate time to regenerate the resources. First and for most when we move companies visions from short term to long term then their employees will have a higher job security in the future, which in return helps to grow the economy. Secondly our clients will have a reasonable secure future since we won’t run out of the resources, they need to grow their business. Lastly, the shareholders would have a greater return in the future which would attract other investors and bring about growth and development in the industry.
After the Aqua waves marine stewardship Council was established there were no ships which were placed in the coast which means the idea of sustainable yield was followed. The revenue from Harvest was much higher than the first two seasons.
The Aqua waves marine stewardship council also offers cultivating and expanding sustainable seafood markets. It means there will be focusing on building demand in markets that offer the biggest incentives to drive change in water. These include European markets of Germany, the UK, France, Spain, and Italy as well as the US, China and Japan. Which will result in higher profits in companies under the Council
Anchor Management 