Exam 2 Prep

Which of the following is a framework that helps businesses align their strategies with ten principles related to human rights, labor, environment, and anti-corruption?

• Global Reporting Initiative
• United Nations Global Compact
• Sustainable Development Goals
• B Corp Certification

Which of the following is a framework that provides guidelines for companies to disclose their sustainability performance in their annual reports and other communications?

• Global Reporting Initiative
• United Nations Global Compact
• Sustainable Development Goals
• Fairtrade Certification

Which of the following is a set of 17 goals adopted by the United Nations General Assembly in 2015 to end poverty, protect the planet, and ensure prosperity for all?

• Global Reporting Initiative

• United Nations Global Compact

• Sustainable Development Goals

• Fairtrade Certification

Which of the following is an advantage of participating in the United Nations Global Compact?

• Access to a global network of businesses and stakeholders committed to sustainability
• Legal enforcement of sustainability practices
• Exemption from paying taxes on sustainability-related expenses
• Exemption from environmental regulations

Which of the following is a feature of good CSR reporting?

• Using complex technical language that is difficult for the general public to understand
• Ignoring the interests and concerns of stakeholders such as employees, customers, and local communities
• Providing clear, concise, and relevant information that is accessible to all stakeholders
• Reporting on CSR initiatives that are not aligned with the company's core business activities

Which of the following is a feature of good CSR reporting?

• Focusing solely on the company's environmental performance and ignoring social and governance issues

• Only reporting on positive impacts and ignoring negative impacts and challenges

• Using a structured framework or guideline to ensure completeness and comparability of the information

• Reporting on all sustainability initiatives and impacts, even those that reflect negatively on the company

What is a primary reason why firms report on CSR?

• To comply with legal requirements and regulations
• To avoid negative publicity and criticism from stakeholders
• To enhance their reputation and brand image
• To reduce their operational costs and increase profitability

Why do firms report on CSR?

• To shift the responsibility of sustainability to stakeholders
• To make their sustainability efforts seem more important than their core business activities
• To demonstrate their commitment to sustainable practices to investors, customers, and other stakeholders
• To avoid tax liabilities and other financial penalties

How does agency theory apply to corporate governance?

• It suggests that managers always act in the best interest of the shareholders
• It highlights the potential conflicts of interest between managers and shareholders
• It argues that the board of directors should not have any decision-making power
• It proposes that shareholders should have direct control over the company's operations

Which of the following is an example of a mechanism of corporate governance?

• The CEO of a company decides to invest in a new project that will benefit the shareholders

• The board of directors approves a proposal to pay excessive compensation to top executives

• Shareholders vote to remove a board member who has been ineffective in monitoring the management

• The managers of a company use company resources for their own personal gain