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  • 1.  Foundations of Sustainable Business Management

    Posted 10-14-2023 03:51 AM

    Sustainable Business Management refers to the practice of conducting business in a manner that is environmentally friendly, socially responsible, and economically viable. It emphasizes the need for businesses to balance profit-making with activities that benefit society and avoid harm to the environment, employees, or stakeholders.

    In traditional business paradigms, there is an evident tension between the pursuits of minimizing costs and maximizing profits. Given this conflict, how might accounting and finance professionals both honor their fiduciary duties and champion sustainable business practices?

    What do you think?

    Best,
    Jay


    #Talent/Community

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    All the best,
    Dr. J. Alexis, PMP
    Associate Teaching Professor
    Northeastern University
    E-mail: j.alexis@...
    Voice: 978-421-6101
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  • 2.  RE: Foundations of Sustainable Business Management

    Posted 11-04-2023 08:54 AM

    Two thoughts

    1. The answer may depend upon how one defines cost and how widely the organization casts its net when determining costs. For example, a new process that reduces water consumption in a production process might be more expensive that the cost of the water that is saved - does the organization consider the "cost" of excessive water usage?  Does it potentially threaten their ability to continue to operate in the long-term?
    2. I then wonder what the fiduciary responsibility is and who it is owed to. Does it, for example, extend to fair and equitable treatment of employees? If so, the sole focus cannot be on simply minimizing costs.  But then that brings me back to the first point - what is the cost of unfair and/or unequitable treatment of employees and is that cost being considered?



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    Paul Juras
    2023-2024 SBMC Chair
    2020-2021 Global Chair
    pjuras@...
    United States
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