Corporate Social Responsibility & Ethical Standards Flashcards
7 cards from real CSC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Corporate Social Responsibility & Ethical Standards flashcards as text
Which of the following is a key characteristic of a 'living wage' as distinct from a 'minimum wage'?
Answer: It is sufficient to meet a worker's basic needs including housing, food, and healthcare
A living wage is calculated based on the actual cost of basic needs, whereas a minimum wage is a legally mandated floor that may fall short of those needs.
The 'double materiality' concept, prominent in EU sustainability reporting, requires companies to assess:
Answer: Both the impact of ESG factors on the company AND the company's impact on society and environment
Double materiality captures inside-out impacts (company on world) and outside-in impacts (ESG factors on company financials).
A company implements a community investment program and measures its return on investment. This approach is best described as:
Answer: Strategic CSR
Strategic CSR aligns social investments with business goals and measures outcomes, distinguishing it from pure philanthropy.
Which governance mechanism is most directly responsible for overseeing a company's CSR and ESG commitments at the board level?
Answer: Sustainability or ESG committee
A dedicated sustainability or ESG board committee provides focused oversight of the company's non-financial commitments and risks.
The concept of 'responsible investment' as defined by the UN PRI primarily asks signatories to:
Answer: Incorporate ESG factors into investment analysis and ownership decisions
The UN Principles for Responsible Investment ask signatories to integrate ESG considerations into investment processes, not to mandate specific exclusions.
When a company conducts a 'social impact assessment' before a major project, the primary goal is to:
Answer: Identify and mitigate potential negative effects on affected communities
A social impact assessment evaluates how a project will affect surrounding communities so that harms can be anticipated and minimized.
An employee at a manufacturing firm notices that safety data is being falsified to meet regulatory requirements. The most ethically appropriate first step is to:
Answer: Report it through the company's internal ethics or whistleblower channel
Internal reporting through established ethics channels is the appropriate first step, allowing the company to address the issue before escalating externally.