What is the recommended corporate focus for ABC?

• A. Profitability Only
• B. Sustainability Only
• C. Both Profitability and Sustainability
• D. Growth at All Costs

Answer: (C)

Balancing profitability with sustainability creates long-term value for the firm. Profitability keeps the business financially viable, funds investment, and delivers returns to owners. Sustainability ensures the company operates responsibly, manages risks, and preserves resources for the future, aligning with regulatory expectations, stakeholder concerns, and brand trust. Together, they support durable performance and resilience, rather than chasing short-term gains or sacrificing future viability.

Focusing only on profits can lead to reckless risk-taking or reputational damage that hurts the long run. Focusing only on sustainability can undermine the firm’s ability to fund operations and growth. Growth at all costs ignores limits and can undermine both profitability and sustainability.