Comprehensive Guide to ESG Standards, Reporting, and Strategic CSR in Business

What is the key to defining a company's social purpose?

Align ESG activities around it and engage with government and community partners around bold goals.

What are the core principles of governance?

Transparency and accountability.

Why is reporting important in governance?

It enables measurement, comparison, and accountability.

What do the UN SDGs provide for ESG reporting?

232 measurable indicators for transparency on environmental, social, and governance impact.

What is Integrated Reporting (IR)?

It combines financial and non-financial performance.

What does the Global Reporting Initiative (GRI) focus on?

Transparency and accountability standards used by most Fortune 250/500 companies.

What is the role of the International Integrated Reporting Council (IIRC)?

To provide an integrated financial and ESG framework.

What does ISO 26000 integrate into organizations?

CSR principles.

What is the significance of certification in standards?

It demonstrates a commitment to continual improvement, stakeholder trust, and responsible governance.

What are the conditions for successful integration of CSR?

Executive buy-in, materiality assessment, alignment with business model, measurable goals, and transparent reporting.

How does CSR influence employee engagement?

It positively influences motivation, commitment, satisfaction, and productivity.

What is the strategic focus of responsible business principles?

To design competitive strategy and sustain long-term success.

What are the four components of Carroll's pyramid of CSR?

Economic viability, regulatory obligations, ethical principles, and societal and ecological impact.

What does the VRIO framework assess?

Value, rarity, imitability, and organization of resources.

What are the three groups of firm resources classified in strategic management?

Physical resources, human capital resources, and organizational resources.

What does the threat of new entry in Porter's 5 forces refer to?

The potential for new competitors to enter the market and cut into incumbents' market share.

What influences the bargaining power of suppliers?

Competitiveness of the input market, threat of forward integration, availability of substitute inputs, and concentration of the input market.

What defines the bargaining power of buyers?

The number of buyers, buyer concentration, and relationship-specific investments.

How do SMEs differ from MNEs in terms of stakeholder relationships?

SMEs have closer stakeholder relationships guided by personal ethics, while MNEs have a formal approach with global reporting.

What is a key outcome of responsible management in SMEs?

It promotes authenticity and leverages proximity to stakeholders.

What strategic trade-off do SMEs and MNEs face?

Flexibility versus scalability.

What factors influence executive leadership decisions?

Cognitive factors, social factors, contextual factors, and personal values.

What is the impact of CSR on organizational performance?

It leads to higher employee engagement and contributes to overall organizational success.

What is the role of strategic decision-making in responsible management?

To balance profit, ethics, and sustainability.

What is the significance of the resource-based view in strategic management?

It focuses on valuable, rare, inimitable, and organized resources for competitive advantage.

How does CSR encourage innovation?

By prompting companies to rethink processes and products, leading to sustainable initiatives.