CSR Reporting – Test Bank | Edition 9th

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Chapter 32 Testbank

1. There is general consensus on the relationship between corporate responsibilities and associated accountabilities.

True   False

2. Reporting that provides information about the economic, environmental and social performance of an entity is known as as triple-bottom-line reporting.

True   False

3. Sustainable development refers to development that meets the needs of the present world without compromising the ability of future generations to meet their own needs.

True   False

4. Sustainability reporting can help organisations to measure, understand and communicate their economic, environmental, social and governance performance, and to then set goals and manage change more effectively.

True   False

5. Sustainability reporting is a relatively recent development that combines the analysis of financial and non-financial performance.

True   False

6. While reports in the early 1990s were typically not subject to any independent verification, it is now common for social and environmental reports to be subject to some form of verification or assurance.

True   False

7. Social-responsibility reporting may be defined as:

A. the reporting of information relevant to key stakeholders identified by the entity as requiring non-performance information.

B. the provision of information about the performance of an organisation in relation to its interaction with its physical and social environment.

C. the reporting of events and impacts on the financial and economic wellbeing of the organisation that stakeholders will find useful for decision making.

D. the provision of financial information about the impacts of the entity on the environment and communities.

8. For an organisation to be sustainable in the long-term it must:

A. be financially secure.

B. minimise or eliminate its negative environmental impacts.

C. act in conformity with societal expectations.

D. All of the given answers are correct.

9. According to Gray, Owen and Adams (2014), accountability involves:

A. the responsibility to use the entity's resources and engage in activities to increase profits, without deception or fraud.

B. the expectation that entities will undertake responsibility for the financial and economic effects of their actions.

C. social expectation that a corporation will act in the general public interest, not just out of self-interest.

D. the duty to undertake certain actions (or to refrain from taking certain actions) and the duty to provide an account of those actions.

10. A number of research studies of environmental disclosure by Australian entities have common findings. These include:

A. firms that had environmental prosecutions against them also disclosed information relevant to the prosecution.

B. the disclosure of negative information regarding social and environmental performance is motivated by a desire to improve the legitimacy of the organisation.

C. environmental disclosures are typically self-laudatory, with very little mention of any negative environmental information about the entity.

D. social reporting does not have a dollar value.

11. The Global Reporting Initiative (GRI) suggests that sustainability-related information should have which of the following attributes?

A. reliability, relevance, comparability and understandability

B. inclusivity, materiality, accuracy and timeliness

C. reliability, clarity, balance, comparability, accuracy and timeliness

D. inclusivity, materiality, sustainability context and completeness

12. From the mid-1990s a number of Australian companies started producing stand-alone environmental reports voluntarily. These were not subject to any:

A. clarifications

B. accountability

C. social pressure

D. independent verification

13. Which of the following is not considered to be among the 'social benefits' generated by an entity?

A. Provision of education

B. Provision of safe products

C. Provision of health care

D. Increased profitability

14. The National Greenhouse and Energy Reporting Act 2007 (Cwlth) (NGER Act) includes all of the following objectives EXCEPT to:

A. help meet Australia's international reporting obligations

B. inform educational policies

C. assist Commonwealth, state and territory government programs and activities

D. avoid the duplication of similar reporting requirements in the states and territories

15. Which of the following is not a perceived limitation of financial accounting?

A. It adopts the practice of discounting liabilities.

B. It focuses on long-term results.

C. It applies the concept of 'materiality'.

D. It tends to focus on the information needs of stakeholders with a financial interest.

16. Which among the following is not an issue in the four-stage accountability model?

A. Why provide an 'account'?

B. To whom is an 'account' to be provided?

C. What should be included in an 'account'?

D. When should an 'account' be prepared?

17. The process whereby an enterprise can account for its performance against its social objectives, and report on that performance to evaluate observance of the principles of accountability, is known as a/n ____ .

A. social audit

B. economic audit

C. general audit

D. environmental audit

18. Which of the following considerations is a step involved in social and environmental reporting?

A. Why provide a report?

B. To whom should the report be directed?

C. What should be in the report?

D. All of the given answers are correct.

19. Which of the following is a hypothesis holding that the market price of a particular security is directly affected by all relevant information that is publicly available to the market?

A. Efficient-markets hypothesis

B. Market-price hypothesis

C. Market-relevant hypothesis

D. None of the given answers are correct.

20. An SRI market refers to which of the following?

A. Science and research investment

B. Socially responsible investment

C. Statistics and reliability investment

D. None of the given answers are correct.

21. The UN's Sustainable Development Goals require the commitment to action of which of the following?

A. Organisations

B. Governments

C. Communities

D. All of the given answers are correct.

22. A robust sustainability materiality process can help to:

A. build better relationships with stakeholders.

B. ensure global megatrends and local market conditions are being used to assess and approach risks and opportunities.

C. prioritise what to focus on strategically.

D. All of the given answers are correct.

23. Which of the following is defined as the amount an organisation must spend to put the biosphere at the end of the accounting period back into the state (or its equivalent) it was in at the beginning of the accounting period?

A. Sustainable cost

B. Environmental cost

C. Sunk cost

D. None of the given answers are correct.

24. The accounts produced by stakeholders other than managers are often referred to as:

A. counter accounts

B. macro accounts

C. micro accounts

D. None of the given answers are correct.

25. According to Brown (2009), a situation in which there is typically more than one 'logic' that could be employed to assess organisational performance, and these different 'logics' could be used to develop different accounts, is known as:

A. monologic accounting

B. dialogic accounting

C. multiple accounting

D. None of the given answers are correct.

26. Which of the following is a risk for business posed by climate change, according to climate-related financial disclosures (2017) by the World Business Council for Sustainable Development?

A. Changing customer behaviour

B. Increased costs of some materials

C. Damage created by increased severity of weather events

D. All of the given answers are correct.

27. Which of the following is an opportunity for business resulting from climate change, according to climate-related financial disclosures (2017) by the World Business Council for Sustainable Development?

A. More efficient transportation options

B. Government incentives for cleaner technologies

C. Development of low-emission goods and services

D. All of the given answers are correct.

28. PSR refers to:

A. public social responsibility

B. personal social responsibility

C. public social reporting

D. None of the given answers are correct.

29. An approach to external reporting that incorporates the impacts of the organisation on its physical surroundings is referred to as:

A. environmental accounting

B. personal accounting

C. public accounting

D. None of the given answers are correct.

30. List the stages in the four-stage 'accountability model'.

______________________________________________________________________________

31. Why is there a need to know about the logic behind the four-stage 'accountability model'?

______________________________________________________________________________

32. Discuss the findings of the KPMG report, Survey of Corporate Responsibility Reporting 2017.

______________________________________________________________________________

33. What is a social audit?

______________________________________________________________________________

34. What is an efficient-markets hypothesis?

______________________________________________________________________________

35. Why is it necessary to know about the nature of the United Nations' Sustainable Development Goals?

______________________________________________________________________________

36. Why it is necessary to know about the nature of externalities and how accounting addresses them?

______________________________________________________________________________

37. Define sustainable cost.

______________________________________________________________________________

38. Discuss the aim of dialogic accounting.

______________________________________________________________________________

39. Why it is necessary to understand the ways in which organisations can report information about their performance and initiatives in relation to climate change?

______________________________________________________________________________

40. What is environmental accounting?

______________________________________________________________________________

Chapter 32 Testbank