Certified Supply Chain Professional (CSCP) Practice Exam

What type of performance is addressed in economic sustainability?

1. Social impacts on communities

2. The organization's environmental footprint

3. The organization's impact on the economic picture for stakeholders

4. The organization’s governance structure

The correct answer is: The organization's impact on the economic picture for stakeholders

Economic sustainability focuses on the long-term financial health and stability of an organization and its ability to contribute positively to the economic environment in which it operates. This encompasses how an organization creates value for its stakeholders, ensuring that its operations do not merely prioritize short-term profits but consider the broader economic implications of its activities. By addressing the impact on the economic picture for stakeholders, economic sustainability recognizes that a business must not only seek profit but also consider how its financial performance affects various groups, including employees, customers, suppliers, and the local community. This can involve creating jobs, supporting local economies, and engaging in fair trade practices—all of which strengthen the economic fabric of the surrounding area. In contrast, the other options focus on different dimensions of sustainability. Social impacts address community well-being and societal issues, while the organization’s environmental footprint looks at ecological effects. Governance structure pertains to organizational accountability and internal management practices rather than direct economic outcomes. Each of these areas is important for overall sustainability but does not specifically capture the essence of economic sustainability, which emphasizes the organization’s role and influence on the economic landscape.