ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors
Which of the following is the most likely benefit to a business of proactively reducing its environmental impact beyond legal requirements?
The most likely benefit is lower resource costs, for example through reduced energy and waste, together with a stronger brand image among environmentally aware customers. Voluntary action does not guarantee market share, exempt the firm from regulation or remove competitors.
- ALower resource costs and an enhanced brand image with environmentally aware customersCorrect
- BA guaranteed increase in market share in every market
- CExemption from all environmental regulation
- DThe elimination of all competitive pressure
Explanation
Proactive measures such as reducing energy and waste can cut costs and strengthen reputation. Benefits are not guaranteed in every market, and voluntary action does not exempt a firm from regulation or remove competition.
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