Free markets cannot always be relied on to produce socially optimal, or even acceptable, outcomes. In many cases market evaluation is misleading from a social or environmental point of view – it may be a necessary form of evaluating economic activities, but it is not sufficient. Alternative evaluation of economic activities by the techniques of environmental and social reporting, accounting, and auditing is also needed. Only the combination of conventional, market-based and alternative evaluations will provide a fair and accurate picture of economic activities.
Source: European Business Forum (EBF)
Subjects: Capitalism, Social Responsibility