Externalities and Personal Responsibility

 
Externalities  is a term used by economists to describe the side effects of a business’s operations.  They are the impact that a business has on other parties not directly involved in a transaction or an operation.  The effects may be either negative, such as air

Smokestacks in the 19th Century
19th Century Smokestacks
pollution caused by a smokestack in one town affecting a neighboring community or positive, such as a new safety system in a car like “parking assist” that makes it less likely that a driver will damage another car while parking.    

Businesses are not required typically to calculate, account or pay for these externalities.  Nor are they obliged to consider externalities in their decision making.  Prior to the industrial revolution, the effect of commercial activity was insignificant.  Nowadays, however, the impact of business on the environment and on human physical and mental health is something we can no longer ignore.     

The challenge in resolving any large-scale, complex and systemic challenge is finding the appropriate starting point.  One thing that anyone and everyone can do is to begin to understand the externalities of their own personal habits and approaches to living.  Ask yourself, “how will this behavior, this action, this approach affect the world around me(?)” and you will begin to get a picture of the nature of your impact on the world.      

The well-worn phrase “think globally, act locally” encapsulates this line of thought.  Just as a Chinese medical doctor would consider the health of an organ first in terms of its relatedness to the larger context of the physical and emotional body, you too can have a large vision for yourself and your function.  Take a step back from yourself, hover above, and consider yourself from a detached perspective on occasion.  If you’re unable to do that, ask for feedback from others and more importantly, be open to adjust your approach based on what you hear.     

Sometimes feedback doesn’t come packaged in exactly the way you’d like it.  Don’t react, rather, let the core value and meaning of the feedback take root in your heart and ignore the rest.  Don’t let yourself off on a technicality!  The wise person receives all feedback with equanimity and poise, making the necessary changes with as little fanfare as necessary.  No need to make a spectacle of yourself every time a little change is in order!     

Be mindful of your personal externalities.  It never hurts to be conscious of your impact on your broader milieu.  If you care, others will begin to care.  At some point, the larger organizations that are made up of people like you and me will adopt an ethos of care, but it has to start somewhere.  Why not with you? 

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5 thoughts on “Externalities and Personal Responsibility

  1. Colin's avatar Colin

    Unfortunately, I think that many people forget that their decisions affect not only themselves, but those around them as well. I think that it is really interesting to think about your personal impact the way an economist would think about a business. It seems to encourage a larger view in my thoughts about what my decisions affect. Yes, my decisions affect me, my friends, and my family; but how far do they reach? It might affect more than you’d think.

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  2. Brenda Ruppright's avatar Brenda Ruppright

    I read the following quote recently from the book, The Rhythm of Life: Living Every Day with Passion and Purpose.

    DO NOT LET YOUR LIFE BE LIKE A SHOOTING STAR,

    WHICH LIGHTS UP THE SKY FOR ONLY A BREIF MOMENT.

    LET YOUR LIFE BE LIKE THE SUN,

    WHICH ALWAYS BURNS BRIGHTLY IN THE HEAVENS.

    BRING LIGHT AND WARMTH TO ALL THOSE ON EARTH.

    LET YOUR LIGHT SHINE!

    Let the side affect of your life be the shining light!

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  3. Brad's avatar Brad

    There is an art to receiving feedback and I think you bring up two excellent points here:
    1) “Don’t let yourself off on a technicality” – too often the tendency is to disregard advice if we can find anything wrong with the delivery, the exact message, or any number of other “technicalities”.
    It was suggested to me to “look beyond the messanger and the delivery, to the message itself”….that’s rescued me from my own knee-jerk reaction more than a few times!
    2) “no need to make a spectacle of yourself everytime a little change is in order” – oh how often we’ve all seen or personally experienced this! But it’s the person that recognizes the need for change, takes the necessary steps without a big ‘to do’ and then moves on – that’s a character trait to live up to all the time.

    These are just two points to start with as we ‘hover above” in self examination.

    Thanks for your continued suggestions, it’s been great material for reflection.

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  4. Lady Leo's avatar Lady Leo

    Great question.
    Makes me think of the term the military uses “collateral damage”. I’ve watched people particularly those looking to “get their due” or sometimes “settle the score” will ravage those elements of their lives dearest to them. My grandmother used to call it “cutting off your nose to spite your face”.
    As a teacher I’ve witnessed many children who become the “collateral damage” of their parents marriage or their parents lack of maturity.
    I’ve been in meetings when this result was being discussed and some chalked it up to “you always hurt the ones you love” my answer is … “Really? Why? Is that acceptable in our lives and for those who depend on us?

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