Which of the following best describes a sustainable supply chain?

Prepare for the Fundamentals of Sustainability Accounting Test. Hone skills with real exam questions, detailed explanations, and strategic tips for success. Make the most of every practice attempt!

A sustainable supply chain is best described as one that reduces ecological impact while ensuring fairness. This definition encompasses the key principles of sustainability, which include environmental stewardship, social equity, and economic viability. Prioritizing the reduction of ecological impact means that the supply chain actively seeks to minimize pollution, reduce waste, and use resources efficiently, contributing to the preservation of the environment for future generations.

Ensuring fairness in a sustainable supply chain involves ethical labor practices, fair trade, and equitable treatment of workers throughout the supply chain. This approach supports social responsibility and community well-being, recognizing that sustainable operations must also benefit people, not just the planet.

In contrast to the correct answer, emphasizing profit above all else ignores the social and environmental aspects that are crucial for sustainability. Focusing solely on domestic sourcing might overlook broader sustainable practices applicable in a global context. Lastly, a traditional supply chain that disregards sustainability principles does not align with the practices necessary to create a sustainable future. Thus, the statement that best captures the essence of a sustainable supply chain is one that integrates ecological concern and fairness.

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