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ACCA Applied Knowledge · Business and Technology · Sustainable business practices

Which of the following is the strongest reason for a board to integrate sustainability into core business strategy rather than treat it as a separate public relations activity?

The strongest reason is that sustainability risks and opportunities affect long-term value, so they need to be built into strategy and risk management. Treating them as public relations alone misses these effects. Integration does not replace legal compliance, guarantee annual profit or remove reporting duties.

  1. ASustainability risks and opportunities can affect long-term value, so strategy and risk management must address themCorrect
  2. BIt removes the need to comply with environmental laws
  3. CIt guarantees higher short-term profit every year
  4. DIt allows the company to avoid reporting to stakeholders

Explanation

Integrating sustainability links it to long-term value creation, risk (such as resource scarcity, regulation, reputation) and opportunity (new products, efficiency). It does not replace legal compliance, cannot guarantee short-term profit, and increases rather than removes stakeholder reporting expectations.

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