Tallying companies' societal costs
Should the value of a company take into consideration the environmental toll it produces? An initiative from Harvard Business School, outlined in the Financial Times, is trying to create a broader picture of a company's value beyond simply accounting. Just as the Great Depression ushered in "generally accepted accounting principles" and independent audits of public companies, the creators of the project argue that this now should be broadened to include the environmental and social impact of firms, known as "generally accepted impact principles."
- Read the counterargument here.