A certain company is known to be profitable, but for years by-products from its plant have been polluting a nearby stream.The company management has decided that it would not be cost effective to clean up the stream.This is an example of

Question

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The company's decision to not clean up the polluted stream is an example of externalizing costs. This means that the company is placing the burden of the negative effects of their production on the external environment and community, rather than internalizing these costs and addressing them appropriately. This behavior is often justified by a focus on cost-effectiveness and profit maximization, rather than social and environmental responsibility.

A Certain Company Is Known to Be Profitable, but for Years