Corporate Governance and CSR Quiz

A business's commitment to act ethically, responsibly, and with integrity in its operations and interactions with society and the environment.

A company's commitment to meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Managing CSR initiatives across different cultures, legal frameworks, and expectations.

Financial constraints that make it difficult for businesses to invest in CSR initiatives.

Businesses that proactively embrace CSR and become leaders in ethical practices.

A model that ranks businesses on their social responsibility by their actions. The more socially responsible actions a business takes, the higher they rank in the pyramid.

A model that recognizes businesses can prioritize different responsibilities. It shows the different dimensions of social responsibility that a firm can pursue.

One of the challenges to CSR is balancing profitability with acting responsibly. Businesses need to make money to stay in business, but they also want to behave ethically.

Another challenge to CSR is dealing with differing opinions from stakeholder groups. These groups have different ideas about what is socially responsible.

A challenge to CSR is that economic downturns impact a firm's ability to invest in socially-conscious projects.

A board member directly involved in the company's daily operations, making strategic decisions to achieve the company's goals.

A board member who isn't an employee but represents stakeholders, offering unbiased perspectives for effective decision-making.

Someone who acts like a director but wasn't officially appointed or registered. They are still held accountable by the court.

A board member appointed by an existing director to take their place when they're unavailable. They have the same power and responsibility as the original director.

An individual who exerts significant influence on the decisions of a company even though they are not officially appointed as a director. They may give advice and make decisions 'behind the scenes'.

Both executive and non-executive members share a single governing body.

Separate boards for executives (managing) and non-executives (overseeing).

A quick decision-making process in a unitary board, as everyone is involved.

Potential for conflict of interest in a unitary board, as management and oversight are mixed.

Clearer responsibilities in a multi-tier board reduce the likelihood of conflict.

A system of rules, practices, and processes that guide a company's direction and control. It's like a set of instructions that everyone follows to make sure the company is run fairly and responsibly.

One of the key pillars of corporate governance. It's about making sure that management is held accountable for their actions by the board and that the board is accountable to the shareholders.

Another pillar of corporate governance that involves ensuring all shareholders are treated equally and that their rights are protected.

This pillar of corporate governance emphasises clear and transparent communication with stakeholders, ensuring that all vital information is disclosed effectively, accurately, and in a timely manner.

This pillar of corporate governance aims to prevent conflicts of interest by establishing procedures and structures that promote independence. Examples include the presence of independent directors on the board.

This approach relies on clear rules, regulations, and punishments for violations. It follows a strict 'black and white' framework, prioritizing compliance and deterring wrongdoing through fear.

Focuses on guiding principles and values, promoting ethical decision-making and discretionary judgment. It encourages open communication and explanation, emphasizing prevention and ethical conduct.

This approach emphasizes compliance, often driven by fear of punishment. It relies on clear rules and a system of detection and enforcement.

This approach prioritizes open communication and explanation. It encourages individuals to understand the reasons behind rules and norms, fostering a culture of trust and responsibility.

This approach emphasizes proactive measures to prevent wrongdoing. It focuses on establishing a culture of ethics and accountability, aiming to minimize the need for punishments.

Individuals or groups that have an interest in a company's success and whose needs should be considered in decision-making.

A visual representation of the relative power and influence different stakeholder groups have on a company.

The degree to which stakeholders can impact a company's decisions and operations.

The process of understanding and responding to the needs and expectations of various stakeholders.

The potential downside of focusing too heavily on meeting stakeholder needs, such as compromising business objectives or creating conflicts between different groups.