Question

Pl elaborate in at least 100 words.

Which of the following statements is true?

A. Sustainability activities involve social and environmental factors.

B. Sustainability activities can only be aligned to long-term financial performance.

C. External costs are the direct costs impacting an organization.

D. External costs are immaterial in multi-national organizations.

Answer 1

Option A. Sustainability activities involve social and environmental factors.

Reason: Sustainability in business is to mean acting responsible that benefits the society at large and also ensures that the resources are available to the future generations as well. These activities involve both environmental as well as social factors since the business uses resources of the society and has its share in polluting the environment. Environmental issues include polluting air, water , dumping of chemicals and creating e waste. Social factors include displaement of people, health costs, overutlization of resources. A business that address both in tandem only can succeed in the long term to ensure customer loyalty and keep up with emerging trends.