Unit 6: MC questions

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Questions and Answers

What is the primary focus of Amazon's $2 billion fund?

To enhance logistics capabilities

To increase sales of externally produced products

To support carbon neutrality technologies (correct)

To reduce operational costs

Which type of emissions is considered the easiest for companies to reduce?

Externally produced product emissions

Scope 3 emissions

Scope 1 emissions (correct)

Scope 2 emissions

How does Amazon's calculation of emissions present a challenge?

It focuses solely on retail operations.

It neglects production emissions from externally produced products. (correct)

It includes all emissions from the supply chain.

It only shows absolute emissions data.

What is a characteristic of proactive corporate responses to sustainability demands?

They have more strategic control over integration. Signup and view all the answers

Why are scope 3 emissions considered the toughest to manage?

They involve activities across the supply chain and consumer usage. Signup and view all the answers

What potential negative consequence might companies face with reactive responses to sustainability?

Significant damage to their reputation. Signup and view all the answers

What is one way Amazon indirectly supports the fossil fuel industry?

Selling cloud services that aid exploration and extraction. Signup and view all the answers

What issue arises from Amazon's choice to depict relative emissions instead of absolute emissions?

It may obscure fundamental issues related to emissions. Signup and view all the answers

What is essential for a firm to avoid overexpanding resources in sustainability efforts?

Accurate prediction of sustainability demands Signup and view all the answers

Which classification is NOT mentioned for stakeholders?

Engagement level Signup and view all the answers

What approach requires companies to have sufficient bargaining power?

Standards based approach Signup and view all the answers

How do developmental approaches typically improve performance?

Through collaborative problem solving with partners Signup and view all the answers

What is a potential risk of having multiple different certifications in the market?

Inefficiency risk in the market Signup and view all the answers

What does a proactive approach to sustainability emphasize?

Anticipating sustainability demands Signup and view all the answers

Why is engaging along the value chain increasingly important for companies?

To manage supplier relationships effectively Signup and view all the answers

What is a key focus for firms looking to improve their sustainability approach?

Accurately predicting sustainability trends Signup and view all the answers

Study Notes

Amazon and Corporate Sustainability

Many stakeholders advocate for taxation on companies based on climate emissions.
Amazon established a $2 billion fund to support technologies for carbon neutrality.
Amazon aims to achieve climate neutrality a decade ahead of the Paris Agreement requirements.
Lack of transparency exists as Amazon does not disclose complete emissions data.
Amazon reports relative emissions rather than absolute figures, masking underlying issues.
Emissions calculations are contentious; production emissions from external products are counted in sales but excluded from direct emissions.
Significant logistics-related emissions (Scope 3) are not fully accounted, including those from consumer product use.
Scope 1 emissions are the simplest to mitigate, stemming directly from company operations.
Scope 2 emissions arise from purchased electricity and can be addressed through renewable energy procurement.
Scope 3 emissions are the most challenging, linked to the supply chain and customer usage.
Amazon's cloud services support fossil fuel companies, indirectly facilitating oil and gas extraction.

Corporate Response Orientations

Companies can adopt proactive or reactive strategies towards sustainability.

Proactive Approach

Greater control and strategic integration of sustainability into corporate priorities.
Risks of over-expenditure but potential for comprehensive sustainability goals.
Encourages proactive prediction of future sustainability demands to optimize resource allocation.

Reactive Approach

Companies respond to external expectations rather than shaping their own sustainability goals.
Opportunity for cost savings exists, but reputation may suffer from lack of proactive measures.
Reactive strategies allow for targeted efforts in response to minimum compliance requirements.

Importance of Stakeholder Engagement

Identifying relevant stakeholders is essential for effective communication.
Stakeholders must be classified based on their power, influence, and interest in sustainability demands.

Approaches to Supply Chain Engagement

Standards-Based Approach: Organizations set minimum certification standards for suppliers, feasible only with sufficient bargaining power (e.g., NIKE, McDonald's).
- Industry collaboration is encouraged to mitigate inefficiencies from multiple certifications.
Developmental Approach: Businesses engage collaboratively with partners to solve problems and enhance performance.
- Example: Coca-Cola focused on developing new procedures and incentives instead of punitive measures against partners.

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Description

Test your knowledge on Amazon's efforts toward corporate sustainability. This quiz covers their initiatives for carbon neutrality, emission reporting practices, and the complexities surrounding emissions classifications. Understand the challenges and commitments of one of the largest corporations in the context of climate change.