KPMG Study: A New Vision of Value - Connecting Corporate and Societal Value Creation

Author:Gheorghiţa DIACONU, Alin ȚIPLIC

JEL: D46, D62, M14

DOI:

Keywords:internalization, business externalities, corporate value, societal value, stakeholders, business environment

Abstract:
Externalities have been largely excluded from the measurement of corporate value because, historically, they have had little or no impact on cash flows or risk profiles. However, economic, social and environmental megaforces are transforming the operating landscape for business. \r\nKPMG`s report, from which the ideas and arguments of this article were extracted, explains how the new regulations, growing stakeholder influence and changing market dynamics are driving the internalization of business externalities, it proposes a methodology for quantifying externalities, for its internalization and its integration in the business models.\r\n

---