What practice involves using resources wisely by balancing economic, social, and environmental factors?

The practice that involves using resources wisely by balancing economic, social, and environmental factors is sustainability. Sustainability emphasizes the importance of meeting present needs without compromising the ability of future generations to meet their own needs. It encompasses a holistic approach where organizations strive to operate in a manner that is environmentally friendly, socially equitable, and economically viable.

This concept is particularly relevant in today’s business environment, where stakeholders increasingly demand accountability from companies regarding their impact on the planet and society. By adopting sustainable practices, organizations can achieve a balance that promotes both profitability and positive contributions to the community and environment, thus ensuring their long-term success and viability.

In contrast, profit maximization primarily focuses on increasing financial gains without necessarily considering social and environmental impacts. Resource allocation is about distributing resources efficiently but does not inherently include the aspects of sustainability. Corporate social responsibility recognizes a company's obligation to act in the best interests of its stakeholders, but it may not cover the comprehensive integration of economic, social, and environmental factors that sustainability does. Therefore, sustainability stands out as the practice that encompasses all these considerations in a balanced manner.