Question 1

Government grants and tax credits increase the costs of implementing sustainability measures.

Accepted Answer

Government grants and tax credits provide financial incentives for businesses to adopt sustainability measures, making them more affordable and cost-effective. Therefore, they do not increase the costs of implementing sustainability measures.

Question 2

Integrating sustainable business practices may help to identify new revenue streams for an organization.

Accepted Answer

Sustainable business practices can lead to innovations and cost-saving measures that can potentially create new revenue streams for an organization. For example, implementing sustainable packaging can attract new environmentally conscious customers and reduce costs associated with waste disposal.

Question 3

There are several reasons an organization might pursue sustainable initiatives. At one organization, employees approached management about implementing green practices throughout the business. This situation is an example of which type of reason to implement sustainable initiatives?

Accepted Answer

Employees approaching management about implementing green practices indicates that internal stakeholders are interested in sustainability and influencing the organization to take action. This aligns with the stakeholder influence reason for pursuing sustainable initiatives.

Question 4

Sustainability is an expense item only. An organization choosing sustainability will see reduced profits.

Accepted Answer

Sustainability is not just an expense item, it can also provide cost-savings for the organization in the long run by reducing waste, improving efficiency, and increasing customer loyalty. It can also create new business opportunities and help mitigate risks associated with environmental and social issues. Therefore, choosing sustainability can lead to both financial and non-financial benefits for the organization.

Question 5

When Doubletree Hotel in Oregon created a "green" floor, it saw decreased housekeeping costs, laundry costs, and personal consumables costs. This situation is an example of which type of reason to implement sustainable initiatives?

Accepted Answer

The situation of Doubletree Hotel in Oregon creating a "green" floor and seeing decreased costs of housekeeping, laundry, and personal consumables costs is an example of cost reduction as a reason to implement sustainable initiatives.

Question 6

Environmental sustainability is the primary concern of which of the following types of organizations?

Accepted Answer

Environmental sustainability is a concern for all types of organizations, regardless of their size, location, or sector. All businesses have a responsibility to consider the impact of their operations on the environment and work towards sustainable practices. This includes large domestic corporations, global service firms, manufacturing firms, and all other types of organizations.

Question 7

Which of the following is not an example of a cost reduction reason to support environmental sustainability?

Accepted Answer

The answer of Which of the following is not an...

Question 8

Environmental sustainability should only be the concern of large multinational manufacturing corporations.

Accepted Answer

Environmental sustainability is not just the responsibility of large multinational manufacturing corporations. It is the responsibility of everyone, including individuals, small businesses, and local communities. We all have a role to play in reducing our environmental impact and promoting sustainability.

Question 9

There are several reasons an organization might pursue sustainable initiatives. "As a result of significant increase in the number of non-compliance notices it received in a recent year, an organization increased sustainability training and focused management attention on sustainability." This situation is an example of which type of reason to implement sustainable initiatives?

Accepted Answer

The organization increasing sustainability training and focusing management attention on sustainability as a result of non-compliance notices suggests that the reason for pursuing sustainable initiatives is regulatory compliance.

Question 10

There are several reasons an organization might pursue sustainable initiatives. "A legislative act requires retailers to take back old batteries and electronic devices for recycling or reuse." This situation is an example of which type of reason to implement sustainable initiatives?

Accepted Answer

The scenario described is an example of regulatory compliance, where an organization is required to follow certain regulations or laws related to sustainability.

Question 11

Sustainability considers not only the needs of the present generation, but also the needs of future generations.

Accepted Answer

Sustainability aims to meet the needs of the current generation without compromising the ability of future generations to meet their own needs. Therefore, it considers the needs and impacts on both present and future generations.

Question 12

There are several reasons an organization might pursue sustainable initiatives. "An automobile manufacturer has committed to being the market leader in fuel economy with every new vehicle developed." This situation is an example of which type of reason to implement sustainable initiatives?

Accepted Answer

The commitment to being the market leader in fuel economy suggests a competitive strategy, as the organization is looking to differentiate themselves from competitors by emphasizing their commitment to sustainability.

Question 13

There are several reasons an organization might pursue sustainable initiatives. "A national hotel chain instituted a paper-saving program that reduced the cost of office paper purchased by 20% annually." This situation is an example of which type of reason to implement sustainable initiatives?

Accepted Answer

The fact that the paper-saving program resulted in a 20% reduction in the cost of office paper purchased indicates that the primary reason for implementing sustainable initiatives was cost reduction.

Question 14

There are several reasons an organization might pursue sustainable initiatives. "Increasing pressure from customers has pushed a utility company to maintain average rates for electricity that are lower than the national average." This situation is an example of which type of reason to implement sustainable initiatives?

Accepted Answer

The pressure from customers is an example of stakeholder influence. The utility company is likely implementing sustainable initiatives in response to customer demand for lower rates and a commitment to environmental responsibility.

Question 15

There are several reasons an organization might pursue sustainable initiatives. "Due to rising costs, a manufacturing firm has reduced the amount of plastic used in each of its products, which helps to keep down the cost of raw materials (plastics). The drop in plastic usage also reduces the amount of plastic sent to the landfill after consumer use." This situation is an example of which type of reason to implement sustainable initiatives?

Accepted Answer

The situation described in the scenario is focused on reducing costs through sustainability initiatives, making it an example of cost reduction as a reason to pursue sustainability.

Question 16

Implementing sustainable business practices may help an organization to grow its market share.

Accepted Answer

Implementing sustainable business practices, such as reducing waste and energy usage, can attract consumers who prioritize environmental responsibility. This can lead to increased customer loyalty and potentially attract new customers, ultimately resulting in growth in market share.

Question 17

For maximum impact, a firm should initially focus on pollution control and cleanup measures.

Accepted Answer

For maximum impact, a firm should initially focus on prevention measures such as reducing or eliminating pollutant emissions at the source, rather than just controlling and cleaning up pollution after it has occurred. This approach is known as pollution prevention or source reduction. By preventing pollution at the source, a firm can reduce its environmental impact, save money on cleanup costs, and improve its public image.

Question 18

________ may include shareholders, bankers, special interest groups, employees, policy makers, customers, suppliers, or community members.

Accepted Answer

The term "stakeholders" refers to individuals or groups who have an interest or investment (i.e. a stake) in a particular business or organization. These could be any of the groups listed in the question, or others. Understanding the needs and concerns of stakeholders is important for effective management and decision-making within a company.

Question 19

Which of the following is a reason an organization would pursue sustainability?

Accepted Answer

Pursuing sustainability can bring multiple benefits for an organization such as improving its competitive position by demonstrating its commitment to responsible practices, saving money by reducing waste, and satisfying shareholders who may value sustainability initiatives. Therefore, all of the above reasons would motivate an organization to pursue sustainability.

Question 20

Possible future liabilities related to pollution may negatively affect an organization's ability to access credit.

Accepted Answer

If an organization has future liabilities related to pollution, it could be viewed as a financial risk by lenders and creditors, thus affecting its ability to access credit or loans. This is because the organization may have to incur significant costs to remediate the pollution, which may impact its future financial performance and cash flows.

Quiz 15: Sustainability