CIMA BA4 · Chapter 8 · Question 10 of 10
A company publishes a glossy sustainability report highlighting a small tree-planting project while its main factory continues to breach pollution limits. Which term best describes this behaviour and which principle does it threaten?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Greenwashing; it threatens integrity because the reporting is misleading
Explanation
Greenwashing is presenting a misleading impression of environmental responsibility through selective disclosure. Accountants associated with such reporting risk breaching integrity, which forbids being associated with misleading information. It is neither genuine philanthropy nor balanced triple bottom line reporting, since it ignores legal breaches at the base of Carroll's pyramid.
More Corporate social responsibility and sustainability MCQs
- Q2The 'triple bottom line' requires organisations to report on which three dimensions of performance?
- Q3In Carroll's pyramid of corporate social responsibility, which responsibility forms the base of the pyramid?
- Q4Which view of CSR is most closely associated with the economist Milton Friedman?
- Q5A manufacturer pays suppliers in developing countries a fair price, monitors their labour conditions and refuses to use child labour…
- Q6Which of the following is the best example of sustainable business practice?