Ch04 Investigating the Social Aspects of ESG
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Questions and Answers

What is the ESG investor's view on employee engagement?

  • It is unnecessary for organization success.
  • It is detrimental to shareholder profits.
  • It has no impact on corporate culture.
  • It is crucial for attracting and retaining talent. (correct)

What is a focus of some investment funds when targeting firms promoting human capital?

  • Reducing employee autonomy.
  • Neglecting job purpose.
  • Promoting fairness and work environment. (correct)
  • Minimizing personal development opportunities.

How has the COVID-19 pandemic impacted employee engagement?

  • It has caused a decline in skilled talent attraction.
  • It has led to a decrease in employee engagement due to remote work.
  • It has provided firms with an opportunity to strengthen their commitment to employee engagement. (correct)
  • It has made employee engagement irrelevant in the workplace.

Why may creating a positive corporate culture be difficult in sectors facing in-work poverty?

<p>Because employees are struggling to get by. (B)</p> Signup and view all the answers

Why is engaging with a more disparate workforce considered challenging in the 'new normal' environment?

<p>Because it presents different challenges compared to traditional workplace settings. (B)</p> Signup and view all the answers

How can promoting diversity in a company benefit organizational effectiveness?

<p>It promotes an inclusive company culture (A)</p> Signup and view all the answers

What is likely to be one potential advantage of boardroom diversity?

<p>It improves decision-making at the board level (B)</p> Signup and view all the answers

Why do investors most likely emphasize the value of boardroom diversity?

<p>To reduce company-specific risk in the long term (A)</p> Signup and view all the answers

How does integrating diversity into a company affect the cost of capital?

<p>Reduces it as it adjusts discount rates for factors not fully priced into the market (A)</p> Signup and view all the answers

What contributes toward the best-performing companies?

<p>Engaged employees and a positive corporate culture (C)</p> Signup and view all the answers

What is the potential impact of employee engagement on company performance?

<p>Enhanced corporate culture and improved company performance (C)</p> Signup and view all the answers

What is the primary concern raised regarding the typical "shareholder value" model?

<p>It focuses too much on short-term profits and dividends at the expense of long-term reinvestment. (D)</p> Signup and view all the answers

What is the primary reason given in the text for including employee representation on a company's supervisory board?

<p>To improve decision-making by incorporating different perspectives and fostering trust and co-ownership. (A)</p> Signup and view all the answers

What is one of the potential benefits of employee engagement and satisfaction?

<p>Improved productivity and better results for the organization. (B)</p> Signup and view all the answers

What does the text suggest about the connection between employee representation and corporate governance?

<p>Employee representation is a way to promote longer-term horizons and address worker risks. (B)</p> Signup and view all the answers

Based on the information provided, which of the following is NOT a potential benefit of employee representation on corporate boards?

<p>Higher short-term profits and shareholder returns. (D)</p> Signup and view all the answers

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