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

Zeta Ltd, a clothing manufacturer, switches to recycled fabrics, pays suppliers fair prices and invests in training local workers, while still earning a profit. Which statement best describes how this links to sustainable development?

Zeta's actions cover environmental, social and economic dimensions together. Recycled fabrics address the environment, fair pricing and training address social issues, and earning a profit maintains economic viability, which together reflect the balanced approach of sustainable development.

  1. AIt addresses environmental, social and economic dimensions togetherCorrect
  2. BIt addresses only the environmental dimension because recycled materials are used
  3. CIt is purely a marketing exercise because profit is still earned
  4. DIt is a compliance action required by all accounting standards

Explanation

Recycling addresses environmental concerns, fair pricing and training address social concerns, and continuing profit supports the economic dimension. Limiting it to environmental ignores the other actions, and no accounting standard mandates these steps.

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