Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Corporate Sustainability > Begrippen > Flashcards

Begrippen Flashcards

(70 cards)

Start Studying
1
Q

zero-sum

A

belief that the more profit a firm makes, the less value for society (one party’s gain is balanced by another party’s loss)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

high purpose-camaderie

A

organisations that score high on purpose and on dimensions of workplace camaderie (fun place to work)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

high purpose-clarity

A

organisations that score high on purpose and on dimensions of management clarity (makes expectations clear, clear view of where organization is going and how to get there)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Carroll’s pyramid

A

Economic responsibilities, legal responsibilities, ethical responsibilities, philanthropic responsibilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

CSR vs ESG

A

CSR is a business model (strategy) that affects organizational processes and company culture and ESG is a model used by investors to examine the sustainability of a company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Friedman

A

There is one and only one social responsibility of business … to use its resources and engage in activities designed to increase its profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

stakeholder and shareholder view aligned

A

actions in favor of stakeholders ultimately resonate positively with profitability, and/or actions against stakeholders are eventually punished by decreases in the bottom line

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Having a good CSR performance could increase revenues and decrease costs by

A
  • saving on resources and streamlining processes
  • attracting/binding customers
  • motivating and attracting certain employees
  • preventing stricter governmental intervention
  • decreasing risk of catastrophic events
  • having lower costs of equity and debt
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Creating Shared Value (CSV)

A

creating economic value in a way that also creates value for society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

how can CSV be done

A
  • reconceiving products and markets
  • redefine productivitiy
  • enabling local clusters development
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

CSV compared to traditional (Porter and Kramer)

A
  • society’s gains are even greater because business are far more effective than governments at marketing to embrace sustainable products/services
  • not philanthropy but self-interested behavior to create economic value by creating societal value
  • shareholders might care a lot about a firm’s CSR when powerful stakeholders create bad publicity and market pressure
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

sustainability accounting

A

placing a monetary value on firms’ externalities and accounting for it in firms’ strategy/reporting/firm value calculation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Impact accounting

A

monetized amounts of firms’ environmental and social impacts not currently captured in financial accounting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

6 Capitals

A
  • Financial
  • Manufactured
  • Intellectual
  • Social
  • Human
  • Natural
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Scope 1 (GHG emissions)

A

direct emissions from sources that are owned or controlled by a company, such as its production and transportation equipment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Scope 2 (GHG emissions)

A

emissions at facilities that generate electricity bought and consumed by the company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Scope 3 (GHG emissions)

A

emissions from upstream operations in a company’s supply chain and from downstream activities by the company’s customers and end-use consumers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

balanced score card perspectives

A
  • financial
  • customer
  • internal
  • innovation and learning
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

financial perspective (SBSC)

A

align CSR initiatives with financial performance to ensure sustainability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

customer perspective (SBSC)

A

enhance customer loyalty and satisfaction through CSR activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

internal perspective (SBSC)

A

improve internal processes to support CSR goals and operational efficiency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

innovation and learning perspective (SBSC)

A

foster a culture of sustainability and continuous improvement within

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

common measure bias (SBSC)

A

comparing unique measures harder than common measures. Usually non-financial leading factors more unique, financials more common –> might lead to relative neglect of non-financials against the emphasizing of non-financial driving factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

greenwashing

A

misreporting of a firm’s environmental performance in an overly positive light

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Problems with current sustainability reporting
- no mandatory standards/audits - E-goals are aspirations, not targets - non-transparent supply chains - complexity of measurement - inattention to developing countries
26
EU taxonomy
common language tool for companies and investors to know which activities have a positive impact on climate/environment. Describes which economic activities are in line with the Paris Agreement
27
why do we need EU taxonomy
- creates a frame of reference for investors and companies - supports companies in their efforts to plan and finance their transition - protects against greenwashing practices - helps accelerate financing of those projects that are already sustainable and those needed in the transition
28
6 environmental objectives
- climate change mitigation - climate change adaption - sustainable use and protection of water and marine resources - transition to a circular economy - pollution prevention and control - protection and restoration of biodiversity and environment
29
checklist for an activity to qualify as environmentally sustainable aligned
- substantially contribute to at least one environmental objective - do not significantly harm the other environmental objectives - comply with minimum social and governance safeguards - comply with technical screening criteria to determine whether an activity is aligned for the EU taxonomy
30
3 KPIs that are reported to be eligible and aligned
- Revenues - OPEX - CAPEX
31
challenges implementation EU taxonomy
- complexity and scope - data availability and quality - dynamic regulatory environment
32
Non-governmental organizations (NGO)
tackle issues that are ignored by governments or where states have conflicting interests
33
green revenues
share of revenues derived from products and services that provide environmental solutions
34
controversies
companies' actions against commitments (scandal)
35
ESG trading
abnormal purchases of high ESG stocks and sales of low ESG stocks relative to the fund's usual trading strategy --> negative associated with the fund's future performance
36
how ESG affects equity valuation, risk, and performance
- cash flow channel - idiosyncratic risk channel - valuation channel
37
cash flow channel
a strong ESG profile is associated with a competitive advantage, leading to higher profitability which leads to higher dividends (cash flows)
38
idiosyncratic risk channel
a strong ESG profile is associated with better risk, management and compliance leading to lower specific (firm) downside risk
39
valuation channel
a strong ESG profile is associated lower exposure to systematic risks, leading to lower cost of capital and therefore a higher valuation
40
negative screening
exclusion from investment universe
41
exclusion from investment universe
an approach that excludes specific investments such as companies, sectors, or countries
42
positive screening
- best-in-class investment selection - norms-based screening - integration of ESG factors in financial analysis - impact investing
43
best-in-class investment selection
leading or best-performing investments are selected or weighted based on ESG criteria
44
norms-based screening
screening of investments according to their compliance with international standards and norms
45
integration of ESG factors in financial analysis
explicit inclusion by asset managers of ESG risks and opportunities into financial analysis
46
impact investing
investments made in funds with the intention to generate social and environmental impact alongside a financial return
47
engagement
engagement and voting on sustainability matters
48
engagement and voting on sustainability matters
engagement activities through voting of shares and engagement with companies on ESG matters
49
how can investors induce firms to act responsibly
- (shareholder activism) find socially responsible firms and invest in them, help them grow, and do not support socially irresponsible firms - (active ownership) find socially irresponsible firms and invest in them and use your voice to push them: Engagement/Active Ownership (only big investors)
50
passive index-based investment strategies
many investors practice this. They pay little attention to risks and opportunities in individual companies (less focus on ESG)
51
attribution factor
represents the proportion of the company that the financial institution is financially responsible for
52
green bond
debt security that is issued to raise capital to support climate-related or environmental projects
53
UN SDG Framework
distinguishes between green, social and sustainable depending on the use of proceeds
54
critical comments on green bonds
- lack of contractual protection for green bond investors - quality of reporting metrics and transparency - issuer confusion and fatigue - perceived lack of pricing benefits for issuers
55
fiduciary duty
asset managers should always act in the best financial interest of their investors
56
corporate governance
process by which companies are directed and controlled. Primary participants are stakeholders, management and the board of directors
57
political tension SEC regulation
- increase compliance costs, particularly for SMEs harming their competitiveness - focusing on reporting ESG-factors diverts attention from primary objective
58
Kenneth Pucker
problem of overselling sustainability reporting. We are confusing output with impact (change). More reporting but CO2 emissions are still growing because no mandatory standards, E-goals are aspirations and not targets, complexity measurement, and supply chains lack transparency
59
ESG rating disagreement
because of different objective functions or a conflict of interest, lack of consensus on term corporate sustainability, correlation is low, disagreement due to scope, more disclosures
60
CSR definition (voluntary dimension)
a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis
61
sustainability definition
meeting the needs of the present without compromising the ability of future generations to meet their own needs
62
definition CSR (normative dimension)
the responsibility of enterprises for their impacts on society and outlines what an enterprise should do to meet that responsibility
63
several approaches to categorize and empirically substantiate the link between CSP and CFP
1) cost and risk reduction 2) gaining competitive advantage: justify benefits over costs 3) developing reputation and legitimacy 4) seeking win-win outcomes: strategy integration, learning and innovation
64
countermeasures information assymetry
- signalling - screening - monitoring
65
key features of sustainability reporting
1) diversity of topics 2) diversity in measurement 3) diversity of users 4) diversity in objective functions 5) voluntary nature of CSR activities 6) central role of externalities 7) long term horizon
66
targeted transparency
aim to nudge firms toward changing their business activities in a socially desirable way
67
ESG profile competitive advantage
- more efficient use of resources - better human capital management & development - long-term business plans and incentives
68
ESG profile better risk management and compliane
- better monitoring - less severe incidents
69
ESG profile lower exposure to systematic risks
- less vulnerable to systematic market shocks - lower cost of capital
70
5 ways ESG can create value
- top-line growth - cost reductions - regulatory and legal interventions - productivity uplift - investment and asset optimization

Corporate Sustainability (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions