ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility
Marlow Energy plans a new wind farm. The board wants to ensure the project is assessed on economic, social and environmental outcomes, and that decisions today do not compromise the ability of future generations to meet their needs. Which framework best describes this combined assessment?
The triple bottom line within sustainable development fits best. It measures performance across economic, social and environmental dimensions, and sustainable development requires meeting present needs without harming future generations. Mendelow's matrix, the value chain and the balanced scorecard serve other purposes and do not capture this combined assessment.
- AThe triple bottom line, applied within the concept of sustainable developmentCorrect
- BPorter's value chain, applied to primary and support activities
- CMendelow's matrix, applied to stakeholder power and interest
- DThe balanced scorecard, applied to four performance perspectives
Explanation
The triple bottom line (people, planet, profit) assesses economic, social and environmental performance, and sustainable development is defined by meeting present needs without compromising future generations. Mendelow's matrix classifies stakeholders and does not assess outcomes. The value chain and balanced scorecard do not address sustainability across all three dimensions.
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