How to Measure a Company’s Real Impact

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Executive Summary

Companies have always caused “externalities” — benefits for society for which they are not fully compensated and costs on society which they don’t have to fully pay for. A major change in global business in recent years is that these externalities are becoming increasingly rare — what was once extraneous to a business is increasingly affecting corporate revenues, costs, and risk profiles. This is a positive development, as society holds business to account. A major outstanding hurdle to this “internalization,” however, is the lack of a full…

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