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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Green Initiatives

Arjun Chemicals Ltd defines sustainability in its annual report as meeting present business needs without compromising the ability of future generations to meet theirs. The Company Secretary is asked which idea this definition reflects. What is the best answer?

The definition reflects sustainable development: meeting present needs without compromising future generations' ability to meet theirs. It balances economic growth, social equity and environmental protection over time, which is wider than short-term profit, bare compliance or cost strategy.

  1. ASustainable development, balancing economic growth, social equity and environmental protection over timeCorrect
  2. BMaximisation of short-term dividend payout to present shareholders
  3. CStrict regulatory compliance with the Companies Act only
  4. DCost leadership through lower input prices

Explanation

The wording describes sustainable development, which balances economic, social and environmental concerns across generations. Dividend maximisation focuses on the short term, and mere statutory compliance or cost leadership does not address intergenerational needs.

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