Sustainability

Question 1

What is sustainability?

Answer 1

• how individuals and organisations use the resources available and at what rate.

definition:

Sustainability taking a long term view, and allowing the needs of present generation to be met without compromising the ability of future generations to meet there own needs

Question 2

Sustainable performance

Answer 2

• environmental
• social
• economic

Informally -> planet people and profit

Question 3

Environmental

Answer 3

• reduce carbon footprint
• reduce waste they produce
• implementing policies within organisation to reduce waste produced at individual level

Question 4

Social

Answer 4

Consider organisations wider stakeholders such as community

• having access to local business to work at
• having business in community that don’t pollute the environment
• organisations that perform charitable acts such as volunteering expertise

Question 5

Economic/financial sustainability

Answer 5

Economic sustainability should not be at the cost of the other two aspects

Question 6

Organisational resources

Answer 6

• raw materials
• money (capital)
• Human Resources (employees)
• machines (tools and equipment)
• management (how resources managed)

Question 7

Applying sustainable development

Answer 7

• management of resources focused long term rather then short term
• making decisions that provide less profit in the short term (represents a strategic thinking shift for many organisations
• should be sustainable with products and services, but extend to the supply chain and whether organisations in the supply chain are sustainable
• workforce policies should be focused on insuring sustainable
• recruitment and retention policies
• flexible working policies
• flexible maternity and paternity policies
• sustainable workforce
• contrasts with short term policies of quick dismissal

Question 8

Professional accountant and sustainability

Answer 8

• Protect organisational value for long term
• auditor looking for indicators that might suggest organisation not a going concern
• preparing accurate financial statements is key aspect of attracting confidence from investors and allowing organisations to continue long term
• accountants play key role building confidence that organisations acting in wider public interest