Terms and definitions Flashcards
Environmental, Social, and Governance
a framework for corporations to report on their governance structure and how it is used to manage and monitor their social and environmental impacts
primary stakeholders vs secondary stakeholders
primary = direct (employees, shareholders, partners), secondary = indirect (communities, public)
sustainable development goals (SDG)
adopted by UN, 17 goals, 193 members states, goal is to end poverty in all its forms everywhere
shareholder
a person who owns shared in a company (stocks)
stakeholder
any individual or group who is affected by or can affect an organization
corporate social responsibility (CSR)
a management concept in which corporations act sustainably and responsibly in an effort to contribute to society and protect the environment, making decisions based on the impact their actions will have on all stakeholders, not just financial
global reporting initiative
most widely used sustainability framework: the global standard for external ESG reporting, seeks to provide common reporting standards for ESG factors in organizations in all industries, sectors, and parts of the world
social impact
the effect an organization’s actions can have on the well-being of direct and indirect stakeholders
governance
the action or manner of governing
greenwashing
the act of misleading customers regarding the environmental practices of a company or the environmental benefits of a product or service; has been extended beyond environmental issues to include other types of misleading marketing that makes a company seem to be more socially responsible than it is in practice
employees engagement
the extent to which employees feel passionately about their jobs, are committed to the organization and put discretionary effort into their work
global outsourcing
when manufacturing and assembly or other services are contracted to come from outside of a company’s headquarters country - usually from a developing low wage economy
corporate code od conduct
a set of standards and norms developed voluntarily by a private organization and spelling out the working conditions, health, and safety protections and overall environment where expected to operate
nonprofit organization
mission driven, tax exempt, no investors/shareholders/owners
for-profit organization
owned by an official owner and shareholders, focused on making a profit, owners subject to income taxes
