Chapter 12 - Reporting CSR And Sustainability Flashcards Preview

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Flashcards in Chapter 12 - Reporting CSR And Sustainability Deck (12)
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1
Q

What are the UK statutory requirements for companies to report on social and environmental issues in the report and accounts?

A

CA2006 contains requirements for quoted companies to report on social and environmental issues in their strategy report, including information about:

  • environmental matters
  • company employees
  • social, community and human rights issues
2
Q

What are the main ABI guidelines to companies about ESG reporting?

A

Reporting should:

  • set ESG risks in the context of the whole range of issues facing a company
  • contain a forward looking perspective
  • describe the actions of boards to mitigating these risks.
3
Q

What is the problem with the UK law on reporting on environmental and social issues?

A

There is no requirement on specifically what must be reported, only that there must be a report.

4
Q

Why might companies decide to produce voluntary SE reports?

A
  • a genuine concern for SE issues
  • reputational protection
  • competitive advantage
  • pressure from institutions
  • general public has lost trust
5
Q

What might be the arguments against voluntary SE reports?

A
  • insufficient awareness by managers and directors
  • deterred by cost
  • reluctant to disclose information that could be sensitive to competitors
  • avoiding reputational damage if it presents unfavourable information.
6
Q

What is triple bottom line reporting?

A

Another term for sustainability reports, reporting on economic social and environmental indicators.

7
Q

How do triple bottom line reports differ in content to SEE reports?

A

There are greater quantitative reporting measures:
e.g. social = employee diversity
economic = profits
environmental = recycling rate

8
Q

What is the limitation of triple bottom line reporting?

A
  • no standardisation of measuring SE impacts

- if SE measures are not independently audited, with will be doubts over the reliability of reporting

9
Q

What is the purpose of conversion factors for measuring waste, pollution and consumption of non-renewable resources?

A

To ensure standardisation that allows companies to be compared according to their sustainability. and size of their organisation.

10
Q

What is the GRI Sustainability Reporting Framework?

A

A voluntary framework for sustainability reporting, seeking to standardise reports.

11
Q

What types of disclosure should be included in a GRI G4 report?

A

1 General standard disclosures
2 Specific standard disclosures, suvdivided into:
a Disclosures on management approach
b Indicators

12
Q

What is the purpose of the BiTC Responsibility Index?

A

The Business In The Community index helps companies to measure manage and integrate responsible business practice.