Question

which of the following is not a reason integrating sustainability into strategy be advantageous for firms? focusing on lowering input needs and re-using materials can lower operating costs it creates new job roles for people measuring compliance with targets it can motivate staff who care about this more socially aware purpose

Answer 1

Focusing on sustainability can sometimes increase operational costs for firms and create additional roles focused on environmental compliance, which might not be advantageous in all contexts, particularly for firms in low-income countries balancing economic needs with environmental standards.

Step-by-step explanation:

One reason that integrating sustainability into strategy might not be advantageous for firms is that it can lead to increased operational costs associated with monitoring compliance and establishing new job roles to manage sustainability targets. Firms, especially in low-income countries, face the challenge of balancing environmental standards with the need to provide necessities, and may compete for jobs by reducing these standards, as environmental compliance does incur costs. Competitive reduction in regulations in these countries can lead to greater environmental damage. Despite this, many firms consider other factors, such as labor costs, infrastructure, proximity to customers, and political stability as more influential than environmental regulations when selecting locations for new factories.

While pollution management and complying with environmental standards are costs for businesses, these costs are relatively small compared to others. Hence, firms might prioritize other economic considerations over environmental factors. Therefore, it is not solely the reduced environmental standards that attract businesses to low-income countries, as other logistical factors are typically more significant than the desire to avoid environmental costs.