Regulatory Compliance & Ethical Standards Flashcards

Under GRI Standards, which principle requires organizations to report on topics that reflect their significant economic, environmental, and social impacts?

Answer: Materiality

The Materiality principle requires organizations to report on topics that represent their most significant impacts on the economy, environment, and people.

When an organization discovers it has made a material error in a prior GRI report, what is the ethically required course of action?

Answer: Issue a restatement and disclose the reason for the change

GRI's accuracy and transparency principles require organizations to issue a restatement and disclose the nature and reason for any material corrections.

Which GRI Standard specifically addresses anti-corruption disclosures, including training and confirmed incidents?

Answer: GRI 205

GRI 205: Anti-corruption covers disclosures on anti-corruption policies, training programs, and confirmed incidents of corruption.

A company operates in a country where local law permits a practice that violates GRI's ethical standards. Under GRI guidance, what should the organization do?

Answer: Apply the stricter GRI standard and disclose the conflict

GRI expects organizations to apply the highest applicable standard and disclose any conflicts between local law and GRI reporting requirements.

What does the GRI concept of 'double materiality' encompass?

Answer: Considering both the impact of the organization on sustainability AND the impact of sustainability on the organization

Double materiality considers impacts flowing in both directions: how the organization affects sustainability issues, and how sustainability issues affect the organization's financial performance.

Under GRI 102 (now GRI 2), which disclosure requires organizations to list memberships in industry associations and advocacy organizations?

Answer: Membership associations disclosure

GRI 2-28 (formerly GRI 102-13) requires disclosure of memberships in industry or other associations and national or international advocacy organizations.

Which body provides independent oversight and authoritative interpretation of GRI Standards to ensure consistent application?

Answer: The Global Sustainability Standards Board (GSSB)

The Global Sustainability Standards Board (GSSB) is GRI's independent standard-setting body responsible for developing and maintaining GRI Standards.