Final answer:
The additional costs of implementing internal controls for environmental compliance are substantial but potentially beneficial in the long term, considering the reduction of future liabilities, the societal benefits of a cleaner environment, and the ethical responsibility of businesses.
Step-by-step explanation:
Whether the additional costs of implementing internal controls are worth it depends on the long-term benefits compared to the immediate expenses. Government economists estimate that U.S. firms spend a significant sum, over $200 billion per year, to comply with federal environmental laws such as those ensuring clean air and clean water.
These costs are substantial, but they must be evaluated against the benefits these laws provide, not just economically, but also for public health and the sustainability of the environment.Implementing strong internal controls to ensure compliance can lead to a more ethically responsible business environment.
In the long run, firms could potentially save money by avoiding fines and reputational damage associated with non-compliance. Moreover, there is an inherent value in contributing to a healthier environment and society which may not be directly quantifiable.
Therefore, while the expense is significant, the potential for reduced future liability, coupled with the societal benefits of a cleaner environment, suggest that these costs may indeed be well spent. The decision however is complex and may vary depending on the specific context and the direct impact of the environmental controls on the business operations and its stakeholders.