ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Which of the following is a commonly cited business benefit of adopting sustainable practices?
A commonly cited benefit of sustainable practices is an improved reputation and stronger relationships with stakeholders such as customers, employees and investors. Sustainability does not guarantee short-term profit, remove legal obligations or eliminate costs, so the other statements are incorrect.
- AImproved reputation and stronger relationships with stakeholdersCorrect
- BA guarantee of higher short-term profit
- CExemption from environmental legislation
- DElimination of all operating costs
Explanation
Sustainable practices often enhance reputation and stakeholder relationships, helping attract customers, staff and investors. They do not guarantee short-term profit, exempt a business from law, or remove operating costs, as sustainability can involve initial costs.
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