Chapter 10

Question 1

Sustainability challenges

Answer 1

• Climate change
• Biodiveristy
• Water-energy-food domains
• Wast increase
• Poverty and inequalities

Question 2

What is Corporate Social Responsibility (CSR)?

Answer 2

–> an organisation that embraces CSR is considering the interest of a broader group of stakeholders rather than just shareholders

Question 3

CSR reporting is…

Answer 3

a process whereby an organisation publicly discloses information about its interactions with, and impacts upon, the various societies and environments in which it operates. Includes social reporting and environmental reporting

Question 4

CSR - social reporting

Answer 4

Provides information about an organisation´s impacts upon particular people and societies, ex: diversity and equal opportunity policies

Question 5

CSR - Environmental reporting

Answer 5

Provides information about an organisation´s impacts upon living and non-living natural systems, including land, air, water and ecosystems, ex: energy/water consumed, compliance with environmental regulations

Question 6

A true sustainability report…

Answer 6

would report how an organisation´s activities and initiatives are helping the planet move towards a sustainable existence and sustainable future

Question 7

Internal and external benefits of sustainability reporting

Answer 7

internal
- set vision & strategy
- measure performance
- manage risk
- motivate employees
External
- build reputation & trust
- attract capital
- engage with stakeholders
- comply with regulatory requirements

Question 8

The system of GRI standards

Answer 8

GRI - Global Reporting Initiative - has developed the world´s most widely used standards for sustainability reporting.
1. Universal standards - foundation, general disclosures, material topics
2. Sector standards
3. Topic standards

Question 9

The four-step accountability model - sustainability

Answer 9

1. Why is the organisation collecting and reporting particular information?
2. To whom is the organisation reporting information
3. What information is it collecting and reporting?
4. How is it reporting the information?

Question 10

Limitations of traditional financial accounting in respect of its ability to reflect social and environmental performance

Answer 10

• tends to focus or fixate on the information needs of stakeholders with a financial interest in the organisation
• applies the entity assumption
• excludes from expenses that impacts on resources not controlled by the entity
• focuses on short-trerm results
• applies the concept of materialty
• adopts the practice of discounting liabilities