CSEET · Economic and Business Environment · Environmental Governance
A Mumbai manufacturer reduces emissions beyond legal limits, reports its environmental, social and governance performance annually, and invests in renewable power. Which approach to sustainability does this best illustrate, as distinct from mere legal compliance?
The firm illustrates voluntary integration of sustainability into business strategy and disclosure that goes beyond minimum legal compliance. Exceeding emission limits, publishing ESG results and funding renewable energy show a proactive, stakeholder-oriented approach instead of only meeting statutory requirements.
- AVoluntary integration of sustainability into strategy and disclosure beyond the minimum legal requirementCorrect
- BStrict liability imposed after an accident
- CRegulatory capture of the pollution authority
- DPure profit maximisation in the short term
Explanation
Going beyond statutory limits, voluntarily reporting ESG performance and investing in renewables shows sustainability built into strategy. Strict liability arises only after harm, regulatory capture concerns influence over regulators, and short-term profit maximisation ignores these commitments.
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