The most effective way for an entity to take into account the external environmental and the sustainability costs of its activities is:

Question

Quizplus · Accepted Answer

Internalizing external costs involves taking into account the impacts of an entity's activities on society and the environment and incorporating them into the cost of doing business. This approach incentivizes the entity to reduce its negative impacts and can lead to more sustainable practices. Fines and penalties from the government, following guidelines from external parties, and voluntary disclosure can all be helpful, but internalizing external costs is the most effective way for an entity to truly take responsibility for its actions and make a positive impact on the environment and society.

The Most Effective Way for an Entity to Take into Account