Sustainability Reporting

Question 1

What is the Agency Theory?

Answer 1

The relationship between principles and agents in a business context

Question 2

What is stakeholder theory?

Answer 2

The importance of addressing the interests and needs of all stakeholders in a business

Question 3

What is the definition of corporate social responsibility?

Answer 3

The responsibility of businesses impacts on society

Question 4

What are the UN Global Compact’s ten principles?
(Hint: 2 under Human rights, 4 under Labour, 3 under Environment, 1 under Anti-Corruption)

Answer 4

1: Businesses should support human rights
2: Make sure they are not complicit in human rights abuse
3: Businesses should uphold the freedom of the right to collective bargaining
4: Elimination of all forms of forced labour
5: Abolition of child labour
6: Elimination of discrimination
7: Businesses should support precautions towards environmental challenges
8: Take initiative to promote environmental responsibility
9: Encourage the development of environmentally friendly techniques
10: Businesses should work against corruption in all its forms

Question 5

What does the International Sustainability Standards Board (ISSB) stand for?

Answer 5

To create sustainability related global standards and to give investors clear information about businesses sustainability risks in order to support informed decision-making

Question 6

What are a few challenges that multi-national corporations face when implementing sustainability reporting?

Answer 6

• Risk of greenwashing
• Lack of universally accepted framework for sustainability reporting
• Stakeholder’s demands
• High costs of implementing sustainability reporting systems

Question 7

What is the triple bottom line? (Hint: the three Ps)

Answer 7

People: Impact on stakeholders
Planet: Environmental impact
Profit: Economic impact

Question 8

Identify four reasons why corporations should take CSR seriously

Answer 8

• It would affect the reputation of the company due it being a big thing nowadays. Aka a pr case.
• It would allow the company to have long-term survival
• It would affect the stakeholders opinion of the corporation if CSR is not taken seriously
• It can be a business strategy due to it being profitable