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Question 94 - CPIM-Part-2 discussion

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When deciding what to report externally regarding sustainability performance, a company should disclose:

A.
results of poor performance.
Answers
A.
results of poor performance.
B.
results of acceptable performance.
Answers
B.
results of acceptable performance.
C.
past results and future strategies.
Answers
C.
past results and future strategies.
D.
why current regulations are too costly.
Answers
D.
why current regulations are too costly.
Suggested answer: C

Explanation:

When deciding what to report externally regarding sustainability performance, a company should disclose its past results and future strategies. This will help the company to demonstrate its progress, achievements, challenges, and commitments in relation to its environmental, social, and governance (ESG) goals. Disclosing past results and future strategies will also enhance the company's transparency, accountability, and credibility with its stakeholders, such as investors, customers, employees, regulators, and the public.

Disclosing results of poor performance or acceptable performance alone is not sufficient, as it does not provide a complete picture of the company's sustainability performance. Moreover, disclosing only poor performance may damage the company's reputation and trust, while disclosing only acceptable performance may raise doubts about the company's honesty and reliability. Disclosing why current regulations are too costly is irrelevant and inappropriate, as it does not reflect the company's sustainability performance or efforts. It may also imply that the company is not willing or able to comply with the regulations or improve its sustainability practices.

asked 16/09/2024
Kurt Woodfin
43 questions
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