ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Which of the following best describes the 'social' pillar of sustainability for a business?
The social pillar of sustainability concerns how a business treats its people: employees, customers, suppliers and local communities. Examples include fair pay, safe working conditions and community investment. Reducing emissions is environmental and long-term profitability is economic, so neither describes the social pillar.
- AIts treatment of employees, customers and the wider community, such as fair pay and safe working conditionsCorrect
- BIts reduction of carbon emissions and waste
- CIts ability to generate profit consistently over many years
- DIts compliance with company law and accounting standards
Explanation
The social pillar concerns people: employees, customers and communities, including fair labour practices and health and safety. Emissions and waste are environmental, while profit generation is economic. Legal compliance is not itself the social pillar.
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