Ethics, sustainability and ESG

Question 1

What 3 tests can help identify and explain ethical issues in an exam?

Answer 1

Transparency - does the company mind other knowing its decision?
Effect - whom does it hurt?
Fairness - is the decision fair?

Question 2

What is sustainability?

Answer 2

The ability to meet the needs of the present without damaging future needs

Question 3

Examples of social sustainability issues

Answer 3

Negative impact on society, low paid workers, lack of diversity

Question 4

Examples of environmental sustainability

Answer 4

Pollution, use old sustainable resources, climate change

Question 5

Examples of economic sustainability issues

Answer 5

Economic stability, impact on local economy, provision of job

Question 6

What is Corporate Social Responsibility (CSR)?

Answer 6

The belief that a firm owes a responsibility to society and stakeholders

Question 7

List some ESG issues

Answer 7

Environmental- Climate change, waste, air equality
Social - Human rights, diversity and inclusion, health and safety
Governance - Board accountability, anti-birbery, corruption

Question 8

How is ESG different to sustainability?

Answer 8

ESG is a strategic business issue. If they are addressed, they can enjoy financial success as a result

Question 9

What are benefits and risks of CSR?

Answer 9

Benefits - may help gain good publicity
Risks - long-term damage to reputation

Question 10

What are the steps for tackling ethical issues?

Answer 10

1. Identify range of issues from the scenario
2. Explain using ethical terminology
3. Consider extent of issues and mitigating factors
4. Provide practical advice