Module 4

Question 1

Corporate Social Reponsibility

Answer 1

Responsibility that a corporate organisation owes to the society in which it operates

Question 2

CSR initiatives are ineffective where they are (2)

Answer 2

• Managing risks associated with reputation

- ‘Bolt on’ rather than ‘built in’

Question 3

To realise benefits from CSR, must be

Answer 3

Embedded in organisation’s objectives and practices

Question 4

To embed CSR successfully there are 10 main elements (5)

Answer 4

• Board and senior management commitment
• Understanding and analysing key sustainability drivers
• Integrating the key sustainability drivers into the organisation’s strategy
• Extensive and effective sustainability training
• Monitoring and reporting sustainable performance

Question 5

Different factors motivating companies to undertake CSR activities (3)

Answer 5

• Compulsory
• Expected
• Desirable

Question 6

CSR objectives (3)

Answer 6

• Considering the interests of employees
• Taking account of needs of environment and local community
• Maintaining excellent relations with all business partners

Question 7

Key components to be considered when developing a CSR strategy (4)

Answer 7

• Defining objectives and strategies
• Assessing the risks
• Embedding actions within business processes
• Monitoring and reporting

Question 8

How to identify predefined objectives for an organisation

Answer 8

By engaging key stakeholders in discussions

Question 9

Stakeholder panels

Answer 9

Means of engaging stakeholders (employees, suppliers, customers and communities) in the CSR process.

Question 10

Integral part of CSR process

Answer 10

Effective reporting (eg transparency/ monitoring of CSR KPIs)

Question 11

UK Government Actions (4)

Answer 11

• Guidance on environmental reporting
• Supporting the GRI (Global Reporting Initiative)
• Enhanced business review requirements of Companies Act
• Requiring disclosure of greenhouse gas emissions (listed companies)

Question 12

Requiring disclosure of greenhouse gas emissions (2)

Answer 12

• Disclosure included in Director’s report in annual report

- Material emissions for six specified gases

Question 13

Greenhouse gas emissions > Scope 1

Answer 13

Direct emissions > activities owned or controlled by organisation that release emissions straight into the atmosphere eg company cars/ furnace

Must be reported in Directors’ report

Question 14

Greenhouse gas emissions > Scope 2

Answer 14

Indirect emissions > from things that a company uses but not control the source of etc electricity in a factory

Must be reported in Directors’ report

Question 15

Greenhouse gas emissions > Scope 3

Answer 15

Indirect emissions > occur as a result of company’s activities but which it does not control and are not directly used by the company eg production of materials purchased

Reporting is discretionary

Question 16

International Federation of Accountants (3) priorities to embed sustainable practices

Answer 16

• Raising awareness
• Establishing international integrated reporting committee
• Incorporating accounting for sustainability within professional training and education

Question 17

The Prince’s Accounting for Sustainability (A4S) Project established to (2)

Answer 17

• Minimise duplication of initiatives undertaken in isolation
• Achieve a common approach to accounting for sustainability

Question 18

A4S three core aims

Answer 18

• Inspire financial leaders to adopt sustainable business models
• Transform financial decision making to integrate opportunities and risks posed by environmental and social issues
• Scale up action across global finance and accounting community

Question 19

International Integrated Reporting Council is

Answer 19

Global Coalition

Question 20

International Integrated Reporting Council mission

Answer 20

To develop a globally accepted integrated reporting framework using a principles-based approach as guidance

Question 21

European Unions directive

Answer 21

PIEs with >500 employees must publish report on policies they have implemented in relation to:

• Environmental protection
• Social responsibility
• Respect for human rights
• Anti-corruption and bribery
• Diversity

Question 22

UK legislation on CSR reporting focuses on

Answer 22

Strategic review required by Companies Act 2006

Question 23

United Nations guidelines (3)

Answer 23

• UN’s Universal Declaration of Human Rights (UDHR)
• UN Global Compact
• UN Earth Summits

Question 24

Financial Stability Board

Answer 24

Promotes global financial stability in G20 countries (+4 key financial centres)
Not legally binding just a coordinating body

Question 25

Key recommendations of TCFD (task force on climate related financial disclosures) (4)

Answer 25

• governance
• strategy
• risk management
• metrics and targets

Question 26

Global reporting initiative (GRI)

Answer 26

Helps businesses, governments and other organisations understand and communicate the impact of business on critical sustainability issues such as climate change, human rights, corruption etc.

Replaced the G4 sustainability reporting guidelines

Question 27

Sustainability report should

Answer 27

Provide a balances and reasonable representation of the sustainability performance of a reporting organisation including both positive and negative contributions

Question 28

Sustainability report should consider the following (3)

Answer 28

• Materiality
• Reporting boundaries
• Content

Question 29

To prepare a report in accordance with GRI standards, must report on two areas:

Answer 29

• Universal standards

- Topic specific standards (social, economic, environmental)