Investing Quote by Roger Scruton
““Instead of the benign competition to secure a market share, we discover a malign competition to externalize costs. The firm that can transfer its costs to others has the advantage over the one that must meet its costs itself, and if the costs can be transferred so widely that it is impossible to identify a victim, they can be effectively written off.””
About This Quote
Source Book: The Politics of Cost, Roger Scruton, 2015
Companies compete by shifting costs onto others, creating hidden victims and allowing firms to avoid responsibility.
In simple terms: Firms externalize costs to gain advantage.
Key Takeaway
Hold companies accountable for hidden costs.
Themes
economics
ethics
competition
Mood
critical
concerned
Type
analytical
philosophical
When to use this quote
- supply chain management
- environmental policy
- consumer advocacy
Key Concepts
externalities
corporate responsibility
Questions to Reflect On
- Who bears the hidden costs?
- How can transparency be increased?
A Different Perspective
Regulation may be difficult to enforce.
