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ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors

Zephyr Foods plans to replace its plastic packaging with a recyclable alternative. The new material costs more per unit, but management expects stronger customer loyalty and lower waste disposal costs over ten years. Which feature of sustainability does this decision best illustrate?

The decision illustrates balancing economic performance with environmental responsibility over the long term. Zephyr accepts higher packaging costs now to reduce environmental harm and gain loyalty and lower disposal costs later, which reflects a long-term sustainability view rather than short-term profit or mere compliance.

  1. AShort-term profit maximisation at the expense of other stakeholders
  2. BBalancing economic performance with environmental responsibility over the long termCorrect
  3. CCompliance with a legal requirement only

Explanation

The company accepts higher costs now for long-term benefits and reduced environmental impact, balancing economic and environmental aims. It is not short-term profit maximisation, and the scenario states no legal requirement, so the third option is unsupported.

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