Sustainability - Lesson 4

Question 1

Definition of sustainability

Answer 1

The ability to last

Question 2

The Brundtland Report 1987

Answer 2

Also known as Our Common Future, alerted the world to the urgency of making progress toward economic development that could be sustained without depleting natural resources or harming the environment

Question 3

The 3 key components of The Brundtland Report 1987 (Triple bottom line)

Answer 3

Economic growth, Environmental protection, social equality

Question 4

Corporate Social Responsibility (CSR) reports

Answer 4

Not a legal requirement but detail how a firm is responsible for promoting sustainable development through policies and procedures. If a firm chooses to publish a CSR report it will be more admired by the public

Question 5

Examples of CSR initiatives

Answer 5

Reduce CO2 emmissions
Support charities
Set recycling targets
Car sharing
Buy from local suppliers
Trade with companies that have good staff conditions

Question 6

Responsibilities of accountants to up uphold sustainability

Answer 6

Public interest duty - long-term responsibility of resources, assessing risks to the firm
Promote an ethics-based culture - e.g anti-money laundering, fraud, bribery etc
Promoting sustainability - encourage clients to be sustainable but stay objective (consider all issues before making a decision)
Not being sustainable can also have a reputational risk

Question 7

Sustainability defined in the Brundtland report

Answer 7

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.