Air Quote by Philip Kotler
“Every company that manufactures something is causing some damage either to the soil or water or air. Most companies treat these as externalities. But the growing movement of sustainability calls for companies to internalize these costs. Once companies do this, they will have a strong incentive to reduce their carbon footprint.”
About This Quote
Source Speech: Sustainability in Business, Philip Kotler, 2015
Companies often ignore environmental harm they cause, treating it as an external cost, but internalizing these costs creates financial incentives to lower emissions.
In simple terms: Businesses should count environmental damage as a cost.
Key Takeaway
Make pollution a cost, not a freebie.
Themes
environment
economics
business strategy
Mood
concerned
determined
Type
business
environmental.
When to use this quote
- corporate planning
- product design
- supply chain management
- investment decisions
Key Concepts
externalities
internalization
carbon accounting
Questions to Reflect On
- How can firms balance profit with environmental responsibility?
- What policies help internalize environmental costs?
A Different Perspective
If costs are internalized, firms may pass them to consumers, raising prices.
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