Why Don't People Take into Consideration the External Costs of Their

question 20

Essay

Why don't people take into consideration the external costs of their actions and reduce the amount of externalities?

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Definitions:

Traditional Management Accounting Systems

Accounting practices that focus primarily on financial information and cost control to aid management in decision-making.

Environmental Costs

Expenses associated with the actual or potential deterioration of natural resources, environmental quality, or public health due to production processes or operations.

Operational Performance Indicator

Metrics or measurements used to assess the efficiency and effectiveness of a company's operations in achieving its objectives.

ISO14031

An international standard that provides guidelines for evaluating environmental performance through the use of environmental performance indicators.