Sustainable development

Definition

Sustainable development is a strategy for meeting the needs of the present without compromising the ability of future generations to meet their own needs. It integrates environmental, social, and economic considerations into decision-making processes to create long-term business value.

5 Must Know Facts For Your Next Test

1. Sustainable development helps businesses reduce costs through efficient resource use.
2. It enhances brand reputation and customer loyalty by addressing environmental and social concerns.
3. Companies practicing sustainable development often experience increased employee satisfaction and retention.
4. Investors are increasingly considering sustainability metrics in their decision-making processes.
5. Sustainable development can lead to innovation and open new market opportunities for businesses.

Review Questions

• How does sustainable development contribute to cost reduction in businesses?
• Why is sustainable development important for investor relations?
• What is one way that sustainable development can improve employee satisfaction?

Related terms

Corporate Social Responsibility (CSR): A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Triple Bottom Line: An accounting framework that includes social, environmental (or ecological), and financial dimensions.

Green Accounting: A type of accounting that attempts to factor environmental costs into the financial results of operations.