Corporate Value Beyond Profits

Corporate value encompasses more than just financial metrics such as share price and profits; it includes the broader impact on stakeholders like employees and consumers, as well as externalities that affect third parties. Companies can create both positive externalities, such as technological advancements, and negative externalities, such as carbon emissions. These externalities are significant because they often go unaccounted for in traditional financial assessments, leading to a skewed understanding of a company's true value. By recognizing these additional dimensions of value, corporations can better align their operations with societal expectations and environmental responsibilities.