Deck 9: Corporate Social Responsibility and Sustainability Accounting

Question 1

Which of these groups is recognised by stakeholder theory as having a legitimate interest in the business?

A)Customers
B)Government
C)Shareholders
D)All of the above

Answer 1

D

Question 2

The total impact of business actions on society at large is known as:

A)social responsibility.
B)risk.
C)corporate governance.
D)economic impact.

Answer 2

A

Question 3

Which Australian company had to pay compensation to victims of exposure to asbestos?

A)BHP Billiton
B)James Hardie
C)Rio Tinto
D)Enron

Answer 3

B

Question 4

An argument against corporate social responsibility is:

A)it is too costly.
B)it is too difficult.
C)business is about building wealth for its shareholders, not helping society.
D)All of the above

Question 5

Aspects of corporate social responsibility are:

A)impact on employment and job creation.
B)health and safety.
C)pollution.
D)All of the above

Question 6

For a business to be seen as socially responsible, the business must:

A)assess the social costs and benefits of the actions it takes.
B)develop and implement policies and practices in the area of social responsibility.
C)ensure the media is aware that it takes social responsibility seriously, even though there may be no real indicators.
D)Both A and B

Question 7

Meeting society's need for goods and services without destroying natural or social capital is known as:

A)the greening of Australia.
B)ethical living.
C)sustainable value creation.
D)None of the above

Question 8

The ten-point code of environmental conduct is known as the:

A)GR Initiative.
B)Sustainability Ethics.
C)Ceres Principles.
D)Environmental Practices.

Question 9

The principle of 'stewardship' means that the main focus of accounting is on providing information to:

A)employees.
B)shareholders.
C)accounts payable.
D)None of the above

Question 10

What is the collective term for any individual or group with an interest in the activities of an entity?

A)Creditor
B)Shareholder
C)Manager
D)Stakeholder

Question 11

Which of these is a way in which sustainable reports should be similar to current financial reports?

A)Degree of auditability of reports
B)Reliance on monetary measures
C)Scope of report
D)Comparability

Question 12

The main work carried out by Ceres in recent years relates to:

A)corporate environmental reporting.
B)climate change.
C)reduction and disposal of wastes.
D)All of the above

Question 13

What is the most common area of voluntary social responsibility reporting in Australia?

A)Nuclear waste
B)Human resources (health and safety, working conditions, etc.)
C)Philanthropy
D)None of the above

Question 14

A way to encourage more socially responsible behaviour by companies is:

A)market the 'good citizen' concept.
B)make breaches of behaviour more costly.
C)government action such as legislation.
D)All of the above

Question 15

'How companies manage the business process to produce an overall positive impact on society' is a definition of:

A)environmental responsibility.
B)corporate social responsibility.
C)ethics.
D)None of the above

Question 16

Which of the following statements is not correct?

A)Social and environmental concerns now have to be taken seriously by business.
B)It is no longer sufficient for business to be focused solely on the maximisation of wealth.
C)All businesses currently accept that sustainability is the primary goal.
D)There is increasing pressure for management to address a much broader range of issues than in the past.

Question 17

Which of the following statements is incorrect?

A)All stakeholders have an equal interest in a business.
B)Some stakeholders have legitimate interests in only a part of a business.
C)Environmentalists are seen as relatively 'new' stakeholders in business.
D)All of the above are incorrect.

Question 18

What is the approach to accounting that focuses mainly on providing information that enables owners to make money?

A)Triple bottom line approach
B)The stakeholder approach
C)The sustainability approach
D)The stewardship approach

Question 19

Reasons why a business might engage in activities that are less profitable to itself but which are beneficial to society are:

A)because of expectations of future legislation.
B)to market itself as a good citizen.
C)to improve liquidity.
D)Both A and B

Question 20

Which of these is an example of an environmental disclosure in an annual report?

A)Implementation of tree planting schemes
B)Introduction of environmental audits
C)Sponsoring environmental achievement awards
D)All are examples

Question 21

A study by Deegan and Gordon in 1996 reviewing the accounts of 197 Australian companies found which of the following types of environmental disclosures?

A)Recycling of materials
B)Use of environmentally safe products in manufacturing
C)Compliance with government standards
D)All of the above

Question 22

Which of the following is an independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines?

A)The Global Reporting Initiative (GRI)
B)The Group of Eight
C)The United Nations
D)The World Bank

Question 23

Australia:

A)has most companies reporting on social responsibilities.
B)has some companies who report on social responsibilities.
C)has no companies who report on social responsibilities.
D)None of the above

Question 24

Research has found that in Australia, environmental disclosures in annual reports tend to be:

A)mostly positive in nature.
B)mostly negative in nature.
C)about half positive and half negative.
D)All positive

Question 25

What is the accounting standard on corporate social responsibility in Australia?

A)AASB 111
B)AASB 101
C)AASB 110
D)There is no Australian standard on corporate social responsibility.

Question 26

Which of these is regarded as a benefit of triple bottom line reporting for companies practicing it?

A)Encouragement of a value driven culture
B)Better management of risk
C)Attracting better staff
D)All of the above

Question 27

Why do organisations find corporate social responsibility (CSR)such a challenge?

A)The public view of CSR continues to change
B)There is no real definition of CSR
C)There is no CSR 'checklist' for businesses to tick off
D)Both A and C

Question 28

Once there is a complete move to sustainability reporting, TBL:

A)will still be required.
B)may have to be extended.
C)will be absorbed by sustainability reporting.
D)may have to be modified.

Question 29

What is the essence of triple bottom line reporting?

A)Pollution control
B)Social responsibility
C)Sustainable development
D)Wealth creation

Question 30

In 2018 in Australia, voluntary disclosures in annual reports relating to social responsibility accounting can be described as:

A)becoming more common.
B)rare.
C)occasional.
D)universal.

Question 31

Triple bottom line reporting refers to reporting in the three areas of:

A)pollution, climate, recycling.
B)economic prosperity, environmental quality, social justice.
C)physical resources, energy, human resources.
D)None of the above

Question 32

Which of the following would not be seen as a positive CSR disclosure?

A)Recycling materials
B)Rehabilitating mining sites
C)Admission of excessive pollution emissions
D)Using environmental audits

Question 33

The major challenge seen for triple bottom line reporting is:

A)Not everything can be measured financially.
B)The production of each of the three parts of the report.
C)Environmental activities are often measured negatively.
D)The integration of economic prosperity, social justice and environmental quality.

Question 34

What has been found in recent world studies on voluntary social responsibility reporting?

A)Reporting was done principally by the largest companies
B)Disclosure was greatest in Australia
C)Reporting was mainly of a quantitative nature
D)Companies tended to provide 'bad news' as well as 'good news'

Question 35

On what does sustainability reporting tend to report?

A)Social sustainability
B)Issues impacting on the environment
C)Both A and B
D)Neither A nor B

Question 36

Which of the following statements in relation to the outcomes of the major studies undertaken in relation to CSR disclosures is incorrect?

A)Voluntary disclosures have increased considerably since the mid-1970s.
B)Companies appear to be using CSR disclosures as part of their public relations.
C)Only small companies make CSR disclosures.
D)When disclosures first commenced, companies were very sensitive to public criticism.

Question 37

Which of the following statements in relation to triple bottom line (TBL)reporting is correct? TBL reporting:

A)can only be used by companies.
B)can and is being used by at least one Australian council.
C)is not supported by the Australian government.
D)All of the above statements are correct

Question 38

Which of the following is a reason that a business might engage in activities that are less profitable to itself but which are beneficial to society?

A)Because of expectations of future legislation
B)Because of enlightened self-interest
C)To publish the results and put pressure on competitors
D)All of the above

Question 39

Which statement concerning triple bottom line reporting is not correct?

A)It means that the need for goods and services should be met without destroying natural or social capital.
B)Companies tend to report favourable news rather than unfavourable news.
C)It only deals with things that can be measured.
D)The phrase was coined by John Elkington.

Question 40

Which of these is not a broad guideline that it would be desirable for triple bottom line reporting to follow?

A)Be balanced, including negatives as well as positives
B)Have external verification
C)Be independent of other financial reports
D)None of the above, i.e., all are broad guidelines

Question 41

The perspective in the balanced scorecard approach that is concerned with how the business is running internally is the:

A)learning and growth perspective.
B)customer perspective.
C)financial perspective.
D)business perspective.

Question 42

Which of the following is not a measure that can be used for the customer perspective when using the balanced scorecard?

A)Number of new customers
B)Number of branches closed down
C)A customer satisfaction index
D)Market share

Question 43

The balanced scorecard approach was developed by:

A)John Elkington
B)Kaplan and Norton
C)R Grey
D)KPMG

Question 44

The GRI Guidelines relating to reporting content covers the areas of sustainability context and:

A)materiality.
B)completeness.
C)shareholder inclusiveness.
D)All of the above

Question 45

Which statement about the effect of the Global Reporting Initiative (GRI)and strategic decision-making is not true?

A)The GRI broadens management perspectives.
B)Management must consider questions such as how the perception of the company can be improved or damaged in the longer term.
C)Strategic decision-making is less difficult than short-term decision-making as more options become available when looking to the longer-term.
D)SWOT analysis is an approach that can be applied to strategic decision-making.

Question 46

In evaluating the business perspective under the balanced scorecard approach, possible measures that could be employed are:

A)percentage of production completed which meets the set standards.
B)percentage of systems automated.
C)production days lost.
D)All of the above

Question 47

The form of the report recommended by the Global Reporting Initiative include:

A)an organisation profile.
B)a description of governance structure and management systems.
C)a vision and strategy statement.
D)All of the above

Question 48

Which of these is not claimed as an advantage of the balanced scorecard approach?

A)Overhead costs will become a smaller percentage of total costs.
B)More staff will have a better understanding of the big picture.
C)Continual feedback and review will occur.
D)Decisions will be based on fact.

Question 49

Which statement concerning the balanced scorecard is incorrect?

A)Reliance solely on financial data will provide an incomplete or unbalanced approach.
B)Its essence is to develop qualitative rather than quantitative measurement tools.
C)Financial information remains a core component of decision-making and strategy development.
D)None of the above, i.e., all are correct

Question 50

The specific standards classifications used by the GRI for disclosure does not include:

A)economic.
B)environmental.
C)governance.
D)social.

Question 51

Which of these is not one of the perspectives from which the balanced scorecard views the business?

A)Product
B)Financial
C)Customer
D)Business process

Question 52

The sustainability reporting framework that is the most widely accepted standard for corporate sustainability reporting around the world is:

A)the ASX corporate governance principles.
B)the balanced scorecard.
C)the global reporting initiative (GRI).
D)None of the above

Question 53

Which of these is a standard disclosure for sustainability reporting recommended by the Global Reporting Initiative?

A)Disclosure of strategy
B)Disclosure of the management approach used
C)Disclosure of performance indicators
D)All of the above

Question 54

Which statement concerning the balanced scorecard is not true?

A)The Global Reporting Initiative and the balanced scorecard have much in common.
B)The GRI approach is likely to shrink the role of the management accountant and expand the role of the financial accountant.
C)It tends to change the emphasis from production to customers.
D)None of the above, i.e., all are true statements

Question 55

Under the GRI Guidelines for General Standard Disclosures, which of the following would not be reported under governance?

A)The process for appointing executives responsible for environmental issues.
B)A listing of all organisations constituting the group in the consolidated report.
C)The composition and process selection for directors.
D)Processes followed for consultation between the executive body and the stakeholders.

Question 56

Briefly outline the essence of the balance scorecard approach.

Question 57

Which of the following statements relating to integrated reporting is incorrect?

A)There are no similarities at all between the integrated and GRI frameworks.
B)The framework for integrated reporting appears to be more aligned with traditional accounting principles than with the GRI framework.
C)Integrated reports give the impression of being more business oriented than socially or environmentally focussed.
D)Integrated reports appear to target the financial providers.

Question 58

Which of the following statements does not apply to an organisation's human resources?

A)Traditional accounting does not account for human resources very well.
B)In some organisations, human resources are the key assets.
C)Human resources can be the only significant asset in some organisations.
D)All of the above statements apply