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Q.3) Financial capital is just one of the multiple capitals a successful company must possess. This brings sustainability into the focus. In light of this, discuss the factors that are forcing the companies to factor in the sustainability in their business models. (10 marks)

Written by

Swatantra

in

“Mentor’s comments”

  • https://www.financialexpress.com/opinion/the-sustainability-heat-on-companies/2268494/
  • In the intro, mention Business Responsibility and Sustainability Reporting (BRSR) by SEBI to be mandatory for the top 1000 companies from the next year.
  • In the body discuss three undercurrents that is compelling the companies to consider the impact of their operation on the climate, these three undercurrents are investors’ pull, regulatory push by the governments and reporting as per the required standards.
  • Conclude by mentioning the sustainability heat on the companies is going to increase further in the near future

Comments

25 responses to “Q.3) Financial capital is just one of the multiple capitals a successful company must possess. This brings sustainability into the focus. In light of this, discuss the factors that are forcing the companies to factor in the sustainability in their business models. (10 marks)”

  1. Anupam Singh Avatar
    Anupam Singh

    Ref_id # 422544

    1. Swatantra Avatar
      Swatantra

      Anupam

      You are totally off topic in this question. Question is about why company need to pay attention to climate change and do sustainable business.

      Please go through the mentor’s comments and article tagged above.

      Discuss three undercurrents that is compelling the companies to consider the impact of their operation on the climate which are investors’ pull, regulatory push by the governments and reporting as per the required standards.

      Please read the question carefully and take help from the article if not sure.

      Read some other answers. 🙂

  2. sanvi sanjay Avatar
    sanvi sanjay

    @swatantra sir

    1. Swatantra Avatar
      Swatantra

      Sanvi

      Please mention reference ID for timely review.

      In investor’s pull point, investors are not scared of pandemic but they don’t want to invest in a company whose business doesn’t care about environment and are polluting. So, frame the point accordingly. Environmental sustainability is a pre-pandemic phenomenon. In government regulations give examples of strict environmental targets set by various governments.

      You can use some global examples from the article of how companies like Royal Dutch Shell and Exxon mobile have been reprimanded recently.

      You can add a point about increasing public awareness and demand for sustainable goods and services also as one of the compelling reasons.

      Rest of the points are good, read some other answers too.

      Keep writing. 🙂

  3. SUMITA DOWERAH Avatar
    SUMITA DOWERAH

    Payment Id: pay HFrdyJMOEZ9967. Please review, Sir.

    1. Swatantra Avatar
      Swatantra

      Sumita

      You have written well, mentioned all points. Not much scope to improve upon this.

      You can mention different types of capital which the companies now need to possess such as social capital, human capital, cultural capital etc and hence sustainability in operations is becoming more and more important.

      Nice attempt. Keep writing. 🙂

      5.5/10

  4. Soundarya Shamala Avatar
    Soundarya Shamala

    Payment Id HI8PMXcXL5cH9q

    1. Swatantra Avatar
      Swatantra

      Soundarya

      You have made a good attempt, but explain the three factors you have mentioned. That is the main part of the question and should be given more space.

      Investor’s pull: Investors also realize the long-term business risk of companies if sustainability isn’t a focus.
      Government control: In this you can give examples of environmental commitments of various governments and hence it makes the companies to focus more on sustainable operations.
      Sustainable reporting: Realization that the investors need a set of comparable and verifiable reporting formats has gathered momentum in the past one year and hence less chance to get off with unsustainable practices.

      You can arrange the points you have written under these heads. It will make the flow of the answer better.

      Read some other answers. Keep writing. 🙂

      3.5/10

  5. ankita thakur Avatar
    ankita thakur

    Payment id-HJHAZEWKSzM3CX

    1. Swatantra Avatar
      Swatantra

      Ankita

      You have written well. Most of the points are mentioned.

      Instead of giving all examples in one go at the beginning, you can give specific examples under those three specific points.

      That will improve the presentation of the answer.

      Points are good. Keep writing.

      Read some other answers too. 🙂

  6. Kartikey Singh Avatar
    Kartikey Singh

    pay_HHogiMPYpQ87sC

    1. Swatantra Avatar
      Swatantra

      Kartikey

      Nice attempt. You can use examples from the article of how companies like Royal Dutch Shell and Exxon mobile have been reprimanded recently.

      Also while mentioning about government’s role, mention the strict targets the governments have set for climate change action which forces them to demand accountability from the companies.
      (can give some examples)

      Also mention about increasingly strict reporting standards now-a-days about sustainability in operations which is demanded by the investors as one of the reasons.

      Rest of the points are very good, keep writing. 🙂

      4.5/10

  7. Rohan Sinha Avatar
    Rohan Sinha

    Order id #0000420396
    @swatantra

    1. Rohan Sinha Avatar
      Rohan Sinha

      not checked

    2. Swatantra Avatar
      Swatantra

      Rohan

      All your answers will be checked, don’t worry. If you write on the same day the question is posted, it gets checked a bit faster otherwise some time required.

      Coming to the answer, you have written well. All the points are mentioned.

      You can add a point about increasing public awareness and demand for sustainable goods and services also as one of the reasons. Hence, companies aiming to build social capital, human capital need to pay heed to such demands.

      Rest of the points are good.

      Keep writing. Read some other answers too. 🙂

    3. Rohan Sinha Avatar
      Rohan Sinha

      @swatantra… thanks sir… can I cut a word or two if something goes wrong or should I rephrase the sentence with that only? how many marks get deducted if one does so?

  8. Dr. House Avatar
    Dr. House

    REF ID: #0000425733
    Please review @Swatantra Sir

    1. Swatantra Avatar
      Swatantra

      Dr House

      Your introduction is good, but since you have mentioned financial capital, you can also mention various other types of capital such as social capital, human capital, cultural capital etc which need to be taken care of now-a-days.

      You can use some global examples from the article of how companies like Royal Dutch Shell and Exxon mobile have been reprimanded recently.

      You can add a point about increasing public awareness and demand for sustainable goods and services also as one of the reasons.

      Rest of the points are neatly mentioned. Nice attempt. Keep writing. 🙂

      4.5/10

  9. Arpit Singh Avatar
    Arpit Singh

    Payment id HHU8LODcXby9Db

    1. Swatantra Avatar
      Swatantra

      Arpit

      You have attempted well, but some key points in the reasons are missing such as :

      Investor’s pull: Investors also realize the long-term business risk of companies if sustainability isn’t a focus. (this you have mentioned, but this is true for all kinds of companies not just bitcoin or dogecoin, so you can write in a more broad manner)

      Government control: In this you can give examples of environmental commitments of various governments(net zero emissions targets by 2050 etc) and hence it makes the companies to focus more on sustainable operations.

      Sustainable reporting: Realization that the investors need a set of comparable and verifiable reporting formats has gathered momentum in the past one year and hence less chance to get off with unsustainable practices.

      Introduction and conclusion is good. Keep writing.

      Read some other answers too. 🙂

  10. shivanshu pandey Avatar
    shivanshu pandey

    pay_HH4AoVE2qPd386

    1. Swatantra Avatar
      Swatantra

      Shivanshu

      I think you are using too much of shorthand and flowcharts, use point wise format for the core points of the body of the answer if not cramped for space or time. Otherwise, it becomes very hard to distinguish the important and relevant points from non-relevant ones.

      For example in this answer,these 3 points should be clearly mentioned as reasons for companies to factor in sustainabilty:

      Investor’s pull: Investors also realize the long-term business risk of companies if sustainability isn’t a focus.Hence, take out money.

      Government control: In this you can give examples of environmental commitments of various governments(net zero emissions targets by 2050 etc) and hence it makes the companies to focus more on sustainable operations.

      Sustainable reporting: Realization that the investors need a set of comparable and verifiable reporting formats has gathered momentum in the past one year and hence less chance to get off with unsustainable practices.

      You have mentioned some of these but not in a very coherent manner. If you have relevant points, better to write the relevant points in complete sentences unless there is no time.

      Read some other answers. Keep practicing. 🙂

      3.5/10

  11. Mradul sharma Avatar
    Mradul sharma

    ref id – #0000422539

    1. Swatantra Avatar
      Swatantra

      Mradul

      You have made a good attempt, however you can improve on some parameters:

      You can use some global examples from the article of how companies like Royal Dutch Shell and Exxon mobile have been reprimanded recently.

      You can add a point about increasing public awareness and demand for sustainable goods and services also as one of the reasons.

      Also you have mentioned ESBR twice in the later part, however it is not clear what do you mean by it, you can explain in very brief, point is good otherwise.

      Nice attempt, read some other answers too. Keep writing. 🙂

      4.5/10

  12. Vishnu Agrawal Avatar
    Vishnu Agrawal

    Order id: 0000422561
    @Swatantra sir please review.

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