Prineville Data Center Analysis and Greenwashing
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Questions and Answers

What was the primary reason for choosing Prineville for the data center?

  • Talented regional workforce and supportive business environment (correct)
  • Low property taxes in the region
  • Proximity to major urban centers
  • High availability of traditional energy sources

    • What percentage of IT power was consumed by the facility?

  • 30%
  • 50%
  • 25%
  • 15% (correct)

    • Which company was the power provider for the Prineville data center?

  • Portland General Electric
  • Avangrid
  • Pacific Gas and Electric
  • PacifiCorp (correct)

    • What was the total cost of the facility in Prineville?

    <p>$188 million</p> Signup and view all the answers

    What was the projected energy consumption of Facebook by 2020 compared to several countries?

    <p>Larger than France, Germany, Canada, and Brazil combined in 2010</p> Signup and view all the answers

    What percentage of PacifiCorp’s energy was sourced from coal, according to the content?

    <p>60%</p> Signup and view all the answers

    What was the size of the Prineville facility in square feet?

    <p>147,000 square feet</p> Signup and view all the answers

    What was the unemployment rate in Prineville at the time the facility was established?

    <p>20%</p> Signup and view all the answers

    What is an example of a false label in greenwashing?

    <p>Claiming ‘all natural’ for chicken without third-party validation</p> Signup and view all the answers

    Which of the following is NOT one of the effective ESG disclosure standards?

    <p>Transparency</p> Signup and view all the answers

    What does the term 'lesser of two evils' refer to in greenwashing?

    <p>Advertising minor improvements when major issues exist</p> Signup and view all the answers

    Which of the following metrics is critical to ensure the reliability of ESG disclosures?

    <p>Independent verification</p> Signup and view all the answers

    What does fibbing in the context of greenwashing imply?

    <p>Claiming environmental results that are blatantly false</p> Signup and view all the answers

    Which requirement for effective ESG disclosure ensures metrics are comparable across different companies?

    <p>Comparability</p> Signup and view all the answers

    Which of the following statements best represents irrelevance in greenwashing?

    <p>Claiming sustainability but financing fossil fuel projects</p> Signup and view all the answers

    In ESG investing, what does the term 'comparability' imply?

    <p>Metrics need to be consistent across various companies</p> Signup and view all the answers

    What is the first phase in the evolution of social issue recognition to regulation?

    <p>Development</p> Signup and view all the answers

    During which phase do politicians begin to engage with the social concern?

    <p>Politicization</p> Signup and view all the answers

    What primarily motivates new statutes to address social concerns?

    <p>Majority support</p> Signup and view all the answers

    What is the nature of compliance choices firms make regarding social regulation?

    <p>Maximized based on expected net benefits</p> Signup and view all the answers

    Which company profile is more likely to yield higher returns from social targeting campaigns?

    <p>Well-recognized brands</p> Signup and view all the answers

    In the phase of Implementation, how are new rules enforced?

    <p>By regulators who can be challenged in court</p> Signup and view all the answers

    How does the perceived threat from NGO lobbying affect a firm's compliance decision?

    <p>It raises the benefits of compliance.</p> Signup and view all the answers

    What is a potential outcome if a company is labeled as the 'biggest sinner' in its industry?

    <p>It may face increased pressure from consumers and NGOs.</p> Signup and view all the answers

    What percentage of compliance with social regulations did Facebook achieve with Greenpeace?

    <p>Near full compliance</p> Signup and view all the answers

    What is the primary energy source Facebook aims to utilize to achieve net zero greenhouse gas emissions?

    <p>Renewable energy from solar and wind</p> Signup and view all the answers

    What type of organization is the Climate Science Center launched by Facebook intended to connect users with?

    <p>Factual resources from climate experts</p> Signup and view all the answers

    What was the expected benefit that motivated Facebook to invest in compliance with Greenpeace's demands?

    <p>Protected profit</p> Signup and view all the answers

    What is the marginal cost of solar and wind power once the infrastructure is established?

    <p>Essentially zero</p> Signup and view all the answers

    How did Facebook respond initially to Greenpeace's message?

    <p>With an initially negative reply</p> Signup and view all the answers

    What strategy did Facebook utilize to manage its remaining emissions?

    <p>Purchasing carbon offsets on voluntary markets</p> Signup and view all the answers

    What was the main factor that made Greenpeace's demands seem reasonable to Facebook?

    <p>Threat to profit</p> Signup and view all the answers

    What was a primary reason Prineville was chosen for Facebook's data center?

    <p>Its location supported energy efficiency.</p> Signup and view all the answers

    What was a concern regarding Facebook's potential concession to Greenpeace?

    <p>It might lead to accusations of greenwashing.</p> Signup and view all the answers

    What is a consequence of Facebook promoting a single social issue?

    <p>It could encourage demands for a variety of other issues.</p> Signup and view all the answers

    What was implied about Greenpeace’s demands for Facebook?

    <p>They had an implicit flexibility.</p> Signup and view all the answers

    Which aspect of Facebook’s operational strategy was consistent with sharing its carbon footprint data?

    <p>Aligning with its role as an information provider.</p> Signup and view all the answers

    What was the response of Greenpeace to Facebook's stance on coal?

    <p>To create 'The So Coal Network' as a counter-campaign.</p> Signup and view all the answers

    Which statement best reflects Facebook’s user demographics concerning the 'Unfriend Coal' movement?

    <p>It was a small fraction of the total user base.</p> Signup and view all the answers

    By 2020, what was perceived as a business advantage for Facebook regarding Greenpeace's demands?

    <p>Meeting the demands was considered good business.</p> Signup and view all the answers

    What is considered an economic profit?

    <p>Accounting profit adjusted for the opportunity cost of alternative investments.</p> Signup and view all the answers

    Which of the following is a key feature of entrepreneurial ventures?

    <p>They introduce new products and redefine markets.</p> Signup and view all the answers

    What does the opportunity cost represent in investment decisions?

    <p>The profit lost by not choosing the best alternative investment.</p> Signup and view all the answers

    Which statement accurately reflects the relationship between entrepreneurial innovation and ecological impact?

    <p>Innovation has reduced the carbon dioxide to real GDP ratio over time.</p> Signup and view all the answers

    Why must entrepreneurial ventures earn more profit than traditional investments?

    <p>Investors expect higher returns due to increased risks associated with new ventures.</p> Signup and view all the answers

    What is the average annual return rate of the S&P 500 since its inception?

    <p>12%</p> Signup and view all the answers

    What role does microcredit play in entrepreneurial ventures?

    <p>It provides loans to small groups, promoting economic activity.</p> Signup and view all the answers

    Which of the following is NOT an example of home medical technology?

    <p>Traditional hospital machinery.</p> Signup and view all the answers

    Study Notes

    Course Information

    • Course name: Business, Government, and Society
    • Course code: BUS-G202
    • Instructor: Professor Phil Powell
    • Topics covered include: Business Analytics, Stakeholder Engagement, Asymmetric Information, Social Regulation, Social Innovation
    • Case studies: BlackRock, Starbucks, BP, Nike, and Greenpeace.

    Exam 3 Information

    • Exam date: Thursday, December 5th
    • Exam duration: 40 minutes
    • Format: Multiple choice (25 questions)
    • Topics covered: Topics 9 through 13, as outlined in the review sheet
    • Materials needed: Scantron sheet and knowledge of the course material
    • AES accommodation arrangements to be confirmed in View'em

    Other Important Information

    • Course evaluation link: https://coursequestionnaire.iu.edu/
    • Class schedule adjusted due to instructor's external obligations
    • No class on Thursday, November 7th
    • Lecture video provided in lieu of class
    • Online Quizzes 9 and 10 close on November 5th
    • Case discussion on BlackRock closes on November 4th

    Additional Notes

    • Study materials for the exam should include notes taken during lectures and case study reviews
    • Review the provided review sheet for specific exam topics and study suggestions.
    • Material on topics like prediction errors, regression analysis, profit maximizing calculations should be reviewed.

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    Description

    This quiz explores key facts about the Prineville data center, its energy consumption, and the impact of greenwashing in ESG disclosures. Test your knowledge on the reasons for selecting Prineville, its economic factors, and the principles of effective sustainability reporting.

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