When a company externalizes costs, it means that it shifts the burden of those costs onto another party or the environment instead of bearing the costs itself. This can happen when a company pollutes the environment and doesn't pay for the cleanup, or when it relies on government subsidies or social programs to support its employees instead of providing fair wages and benefits. Externalizing costs can have negative consequences for society as resources are not allocated efficiently and the true costs of goods and services are not reflected in their prices.
