CSR Introduction

Question 1

How does the UN define CSR?

Answer 1

Integrating social and environmental concerns into business operations.

Question 2

What is the European Commission’s view on CSR?

Answer 2

Firms are responsible for societal and environmental impacts.

Question 3

What does ESG stand for?

Answer 3

Environmental, Social and Governance.

Question 4

What is socially responsible investing (SRI)?

Answer 4

Investment strategies considering ethical and financial returns.

Question 5

What is the Triple Bottom Line?

Answer 5

Measuring performance in social, environmental and financial returns

Question 6

What historical forms of CSR existed before industrialization?

Answer 6

Guilds and waqfs providing social insurance and services.

Question 7

Who is Robert Owen, and what did he do for CSR?

Answer 7

Introduced worker rights and education reforms in the 1800s.

Question 8

What motivated early CSR efforts in Germany?

Answer 8

Worker welfare programs to deflect criticism of capitalism.

Question 9

What ESG factors are commonly assessed?

Answer 9

Climate impact, human rights, and corporate governance standards.

Question 10

What is negative screening in responsible investing?

Answer 10

Excluding firms based on ethical concerns or norm violations.

Question 11

What are ESG ratings?

Answer 11

Scores evaluating a firm’s environmental, social and governance practices.

Question 12

What challenges exist in ESG reporting?

Answer 12

Reliance on self-reporting, inconsistent standards, and rating divergence.

Question 13

What is the role of the EU in regulating ESG reporting?

Answer 13

Mandating standards and independent audits for large firms.

Question 14

How does CSR benefit businesses?

Answer 14

Enhances reputation, labor supply, and long-term profitability.

Question 15

What was Tata Group’s CSR contribution in India?

Answer 15

Introduced pensions, insurance, and transferred ownership to charity.

Question 16

Why is ESG data controversial?

Answer 16

Issues with data consistency and lack of transparancy.

Question 17

What does “green investing” focus on?

Answer 17

Investments emphasizing environmental sustainability.

Question 18

What are voluntary CSR measures?

Answer 18

Unregulated firm initiatives to address social and environmental issues.

Question 19

What is the significance of limited liability in corporations?

Answer 19

It protects owners from exceeding their investment loss.

Question 20

How does ESG integration differ from screening?

Answer 20

ESG integration evaluates risks and opportunities, not just exclusions.

Question 21

What are the new EU CSR reporting rules?

Answer 21

Standardized ESG disclosures and mandatory independent audits.

Question 22

What was a major flaw in Volkswagen’s ESG practices?

Answer 22

Misrepresentation of emissions despite high ESG scores.

Question 23

What is blackfiling in ESG ratings?

Answer 23

Retroactively altering ESG scores, as observed in some data providers.

Question 24

Why do ESG ratings often diverge?

Answer 24

Different methodologies and indicator interpretations.

Question 25

How does CSR intersect with industrial history?

Answer 25

Early initiatives addressed gaps in regulation and policy.

Question 26

What are RepRisk reports?

Answer 26

ESG analyses based on media and stakeholder inputs.

Question 27

Why are employee welfare programs a CSR priority?

Answer 27

They improve productivity and reduce turnover.

Question 28

How do firms self-regulate environmentally?

Answer 28

By adopting voluntary pollution and abatement measures.

Question 29

What is the World Economic Forum’s initiative on ESG?

Answer 29

A push for unique global ESG reporting standards.

Question 30

What is “CSR pays”?

Answer 30

The idea that CSR enhances profitability and societal goodwill.