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ACCA Applied Knowledge · Business and Technology · Sustainable business practices

Lorvan Co is considering a project that would raise profit and create jobs, but would permanently damage a local wetland that cannot be restored. Which sustainability concept does the permanent damage most directly conflict with?

The permanent damage conflicts most directly with intergenerational equity. Sustainable development requires that future generations are not deprived of resources, and an irreplaceable wetland destroyed for present profit and jobs would leave them worse off, regardless of the immediate economic gains.

  1. AIntergenerational equity, because future generations lose a resource that cannot be replacedCorrect
  2. BEconomies of scale, because output will rise
  3. CSpan of control, because more staff will be employed

Explanation

Intergenerational equity holds that future generations should inherit a comparable resource base. Irreversible damage removes the wetland for them, even though present benefits arise. The other options are unrelated business concepts.

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