GRI Regulatory Compliance & Ethical Standards 2 — Questions and Answers
Question 1: Under GRI Standards, which principle requires organizations to report on topics that reflect their significant economic, environmental, and social impacts?
- Materiality (Correct answer)
- Stakeholder Inclusiveness
- Sustainability Context
- Completeness
Correct answer: Materiality
The Materiality principle requires organizations to report on topics that represent their most significant impacts on the economy, environment, and people.
Question 2: When an organization discovers it has made a material error in a prior GRI report, what is the ethically required course of action?
- Quietly correct it in the next report without acknowledgment
- Issue a restatement and disclose the reason for the change (Correct answer)
- Only correct if the error exceeds 5% of the reported figure
- Notify only internal stakeholders and move forward
Correct 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.
Question 3: Which GRI Standard specifically addresses anti-corruption disclosures, including training and confirmed incidents?
- GRI 205 (Correct answer)
- GRI 206
- GRI 207
- GRI 415
Correct answer: GRI 205
GRI 205: Anti-corruption covers disclosures on anti-corruption policies, training programs, and confirmed incidents of corruption.
Question 4: 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?
- Follow local law since it supersedes GRI standards
- Apply the stricter GRI standard and disclose the conflict (Correct answer)
- Omit the topic from reporting entirely
- Apply GRI standards only in countries with equivalent laws
Correct 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.
Question 5: What does the GRI concept of 'double materiality' encompass?
- Reporting both financial and non-financial impacts
- Considering both the impact of the organization on sustainability AND the impact of sustainability on the organization (Correct answer)
- Auditing reports both internally and externally
- Publishing reports in two languages
Correct 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.
Question 6: Under GRI 102 (now GRI 2), which disclosure requires organizations to list memberships in industry associations and advocacy organizations?
- Governance structure disclosure
- Membership associations disclosure (Correct answer)
- Stakeholder engagement disclosure
- Supply chain disclosure
Correct 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.
Question 7: Which body provides independent oversight and authoritative interpretation of GRI Standards to ensure consistent application?
- The GRI Board of Directors
- The Global Sustainability Standards Board (GSSB) (Correct answer)
- The UN Global Compact Office
- The International Accounting Standards Board (IASB)
Correct 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.
GRI Regulatory Compliance & Ethical Standards 2
Under GRI Standards, which principle requires organizations to report on topics that reflect their significant economic, environmental, and social impacts?