Ch4 Corporate Social Responsibility

Question 1

Corporate social responsibility

Answer 1

Triple bottom line - TBL
People
Planet
Profit

Question 2

Envionmental accounting

Answer 2

Inclusion of key environmental information (cost-related) in the information systems
1. identify relevant environmental facets (air, water, land quality)
2. measure the facet
3. decide how to measure damage or loss of quality to these facets
4. quantify costs of damage or quality erosion

Environmental audits：
1. Environmental policy
2. Environmental objectives
3. Environmental control system
4. Environmental risk assessment
5. Compliance with environmental legislation (ISO 14000)

Question 3

Environmental costing

Answer 3

quant portion of environmental accounting

A. Managerial (internal use)：environmental cost control and management, correlation of business and environmental performance, and proper resource management

B. Financial (external use): ASPE / IFRS and includes financial reports to stakeholders where appropriate

Question 4

Specific benefits to environmental costing:

Answer 4

1. informed stakeholders
2. integrated business and environmental planning
3. improved product and process design
4. guidance in the selection of value chain partners
5. a heightened awareness of the need to protect the environment
6. guidance in budget planning and resource management

Question 5

Four categories of environmental costs

Answer 5

1. Preventiion: costs to prevent a negative event from happening (regular maintenance)
2. Assessment: costs to assess the situation (testing)
3. Control: costs of enforcing control measures (safety supervisors)
4. Failure: costs when a negative event occurs and company incurs costs as a result (lawsuits and lost future sales)

Question 6

Social ethics

Answer 6

1. enables management to effectively balance and support the achievement of a well-rounded and sustainable set of strategic objectives
2. enhances employee engagement and connection with the organization
3. improves customer perception and satisfaction through demonstrated positive impact
4. leads to enhancements in environment, in communities and for society in general