CEP Social Impact & Stakeholder Engagement 2

Question 1

Which framework is most commonly used to quantify social value created relative to investment in ESG programs?

Accepted Answer

Social Return on Investment (SROI)

Answer

SROI assigns monetary values to social outcomes, allowing organizations to calculate the ratio of social value generated per dollar invested.

Question 2

A company is planning a new facility in a low-income community. Which stakeholder engagement approach best reflects the principle of 'Free, Prior, and Informed Consent' (FPIC)?

Accepted Answer

Consulting affected residents before finalizing project plans

Answer

FPIC requires that communities receive full information and provide genuine consent before projects proceed, not after decisions are finalized.

Question 3

What does a 'materiality assessment' help an organization determine in the context of social impact?

Accepted Answer

Which ESG issues are most significant to stakeholders and business performance

Answer

A materiality assessment identifies and prioritizes ESG topics based on their significance to both stakeholders and the organization's financial performance.

Question 4

Which of the following best describes 'stakeholder salience'?

Accepted Answer

The degree to which managers prioritize stakeholder claims based on power, legitimacy, and urgency

Answer

Mitchell, Agle, and Wood's salience model ranks stakeholders by the combination of power, legitimacy, and urgency they possess.

Question 5

An ESG planner wants to measure the social impact of a workforce training program. Which metric is MOST appropriate?

Accepted Answer

Increase in participants' average wages six months post-training

Answer

Wage increases for participants six months after training is an outcome metric that directly reflects improved economic well-being, which is the intended social impact.

(CEP) Certified Environmental, Social, and Governance (ESG) Planner Practice Test

(CEP) Certified Environmental, Social, and Governance (ESG) Planner Practice Test

CEP Social Impact & Stakeholder Engagement 2