Accounting: the expanded

TABLE 5.7: Average Cost of Property Crime to Victims, by Type of Crime (1996$)

Theft	$2,131
Mischief	$638
Break and enter	$2,309
Motor vehicle
theft	$6,649
Robbery	$2,857
Fraud	$3,531
Overall average	$2,390

Prior to the development of Community Village, property crime rates in the area, as reported by the city, were 50 per 1,000 people per year. With a population in the area of 40,000, this amounts to 2,000 crimes per year. Since the development and the Community Policing Centre were established, crime rates have gone down by five percent. Using these figures, the overall impact over ten years amounts to $7.5 million.
Impact of purchasing decisions. The Expanded Value Added model makes explicit the economic, social and environmental impacts of purchasing decisions, especially useful if these impacts are realized in the long-term. One example of this is in the choice of energy-using devices. In a housing development, the impact of choosing energy efficient equipment can be significant. The following example illustrates the impact of two such devices: exit signs and compact fluorescent light bulbs (Table 5.8). In both cases, the initial cost outlay is significantly more for the ENERGY STAR²⁹ rated devices than for the non-ENERGY STAR ones. However, this is recouped fairly quickly. Indeed, over the ten years, the total cost (including energy costs) for the ENERGY STAR rated devices is $278,914, while the cost of the non-ENERGY STAR ones is $955,453.
In other words, as a result of a purchasing decision, the organization is providing extra value to its customers of $676,539.
²⁹ ENERGY STAR is an international standard for consumers that identify products that are the most energy-efficient on the market.