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Social Impact & Stakeholder Engagement Flashcards

7 cards from real CEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Social Impact & Stakeholder Engagement flashcards as text
  1. What is the primary purpose of a stakeholder grievance mechanism in ESG practice?

    Answer: To provide an accessible way for affected parties to raise concerns and seek remedy

    Grievance mechanisms give affected stakeholders a formal channel to raise concerns, enabling companies to identify and address social impacts before they escalate.

  2. When mapping supply chain social risks, which population segment typically requires heightened due diligence?

    Answer: Migrant and seasonal workers at lower supply chain tiers

    Migrant and seasonal workers are often vulnerable to labor rights abuses including debt bondage, excessive hours, and wage theft, especially in lower supply chain tiers where oversight is limited.

  3. Which concept describes the unintended displacement of social harm from one community to another as a result of a company's ESG intervention?

    Answer: Leakage

    Leakage refers to when addressing a problem in one location or population simply shifts it elsewhere, undermining the net social benefit of the intervention.

  4. A CEP candidate reviews a company's community investment report that lists only inputs and activities. What critical information is MISSING?

    Answer: Outcomes and impacts on the intended beneficiaries

    Robust social impact reporting requires outcomes (changes in people's conditions) and impacts (attribution of those changes), not just inputs and activities.

  5. Under the GRI Standards, which series specifically addresses social topics such as employment, labor practices, and human rights?

    Answer: GRI 400 series (Social)

    GRI 400 series covers social performance disclosures including employment, training, diversity, human rights, and community impacts.

  6. An organization wants to ensure its stakeholder engagement is not merely performative. Which practice BEST demonstrates authentic engagement?

    Answer: Incorporating stakeholder feedback into decision-making and reporting back on how input was used

    Authentic engagement requires a feedback loop where stakeholders can see how their input influenced outcomes, creating accountability and trust.

  7. Which of the following is an example of 'social washing' in ESG reporting?

    Answer: Prominently featuring community donation amounts while omitting supply chain labor violations

    Social washing occurs when companies selectively highlight positive social activities while obscuring or omitting material negative social impacts.