Environmental Social Governance (ESG)

What principle underpins the concept of ESG in modern businesses?

• Profit maximization

• Competitive advantage

• Sustainable development

• Operational efficiency

Why has ESG become crucial for businesses today?

• To comply with international trade laws

• To enhance brand loyalty among consumers

• Because of increasing regulatory pressures

• Due to its impact on the global supply chain

What role does the ESG framework play in corporate reporting?

• It provides a basis for tax benefits

• It guides the integration of sustainability in business practices

• It serves solely for environmental impact assessment

• It is used for internal auditing purposes

How does integrating ESG factors influence investment decisions?

• It restricts companies to local markets

• It leads to higher short-term profits

• It attracts conscientious investors and funds

• It limits the types of available financial instruments

What impact does climate change have on business operations?

• It decreases the cost of raw materials

• It increases operational flexibility

• It necessitates adaptations in operational and strategic planning

• It stabilises market demand across industries

Why is biodiversity preservation considered critical under environmental sustainability?

• It guarantees stronger patent protections

• It enhances corporate image among stakeholders

• It supports ecosystem services that businesses depend on

• It simplifies compliance with health and safety regulations

What is the purpose of human rights compliance in ESG practices? A.B. C. D.

• To minimize legal disputes related to property rights

• To ensure fair labor practices and avoid exploitation

• To streamline logistics and supply chain management

• To increase employee productivity directly

How does diversity and inclusion impact a company's performance?

• It reduces the variety of products offered

• It boosts creativity and employee satisfaction

• It standardizes job roles

• It complicates managerial decision-making

What is a key component of ethical leadership in ESG governance?

• Focusing on short-term goals

• Prioritizing shareholder returns

• Promoting ethical standards and accountability

• Reducing operational costs

How do transparency and accountability contribute to ESG governance?

• By ensuring faster product cycles

• By reducing employee turnover

• By building trust with stakeholders

• By enhancing supplier contracts