CSC Corporate Social Responsibility & Ethical Standards 2 — Questions and Answers
Question 1: Which ethical framework judges the morality of an action based solely on its consequences and outcomes?
- Deontological ethics
- Virtue ethics
- Consequentialism (Correct answer)
- Contractarian ethics
Correct answer: Consequentialism
Consequentialism evaluates actions by their outcomes, making the ends central to moral judgment.
Question 2: A company discloses only positive ESG metrics while omitting material negative data. This practice is best described as:
- Selective reporting
- Greenwashing (Correct answer)
- Cherry-picking
- Materiality filtering
Correct answer: Greenwashing
Greenwashing encompasses misleading sustainability disclosures, including selective omission of negative performance data.
Question 3: Under the UN Guiding Principles on Business and Human Rights, which pillar requires companies to conduct human rights due diligence?
- Protect
- Respect (Correct answer)
- Remedy
- Restore
Correct answer: Respect
The 'Respect' pillar assigns companies the responsibility to avoid infringing human rights through due diligence processes.
Question 4: Which of the following best defines 'ethical sourcing' in a CSR context?
- Purchasing only from domestic suppliers
- Procuring goods from suppliers who meet defined labor, environmental, and human rights standards (Correct answer)
- Choosing the lowest-cost supplier regardless of practices
- Sourcing from certified B Corporations only
Correct answer: Procuring goods from suppliers who meet defined labor, environmental, and human rights standards
Ethical sourcing ensures that supply chain partners adhere to acceptable labor, environmental, and human rights standards.
Question 5: The concept of 'license to operate' in CSR refers to:
- Government permits required for business operations
- Informal social acceptance granted by communities and stakeholders (Correct answer)
- ISO certification for environmental management
- Board approval for sustainability initiatives
Correct answer: Informal social acceptance granted by communities and stakeholders
A social license to operate is the ongoing acceptance by communities and stakeholders that a company has earned through responsible conduct.
Question 6: Which reporting standard is specifically designed for supply chain sustainability disclosure?
- GRI Standards
- CDP Supply Chain Program (Correct answer)
- SASB Industry Standards
- TCFD Recommendations
Correct answer: CDP Supply Chain Program
The CDP Supply Chain Program enables companies to request environmental data from their suppliers in a standardized format.
Question 7: A whistleblower policy is a CSR best practice primarily because it:
- Reduces the need for external auditors
- Provides a safe channel for reporting unethical behavior without retaliation fear (Correct answer)
- Satisfies ISO 14001 requirements
- Limits liability from regulatory investigations
Correct answer: Provides a safe channel for reporting unethical behavior without retaliation fear
Effective whistleblower policies encourage internal reporting of misconduct by protecting employees from retaliation.
CSC Corporate Social Responsibility & Ethical Standards 2
Which ethical framework judges the morality of an action based solely on its consequences and outcomes?