CAT / FIA FBT Syllabus A. The Business Organisation, Its Stakeholders - Economic Sustanability - Notes ^{3 / 3}

Economic sustainability is the term used to identify various strategies that make it possible to utilise available resources to best advantage.

The idea is to promote usage of those resources that is both efficient and responsible, and likely to provide long-tem benefits.

In the case of a business operation, economic sustainability calls for using resources so that the business continues to function over a number of years, while consistently returning a profit.

Economic sustainability forces a company to look on the internal and external implications of sustainability management.

This means that managing economic sustainability must consider:

• the financial performance of a company;

• how the company manages intangible assets;

• its influence on the wider economy; and

• how it influences and manages social and environmental impacts

There is some consensus that sustainability is desirable for individual businesses to prevent the devastating and inefficient impacts of corporate premature death, and to enable and protect social and environmental initiatives, which tend to be the product of more mature businesses.

Economic sustainability can be seen as a tool to make sure the business does have a future and continues to contribute to the financial welfare of the owners, the employees, and to the community where the business is located.