Ch. 4 Social

Question 1

What are the 9 social Mega Trends

Answer 1

A. Globalisation.
B. Automation and artificial intelligence (AI).
C. Inequality and Wealth creation.
D. Digital disruption, social media and access to electronic devices.
E. Changes to work, leisure time and Education.
F. Changes to individual rights and responsibilities and Family structures.
G. Changing Demographics, including health and longevity.
H. Urbanisation (Cities)
I. Religion.

Memory Trick
GRAD with a FEW CDs

Question 2

Enviro trends that impact social

Answer 2

Climate, water, pollution and loss of ecosystems

could lead to mass migration and transition risk

Question 3

3 starting consideration on social factors

Answer 3

1) most material
2) company exposure to this item(s)
3) impact to supply chain

Question 4

Internal factors

Answer 4

A. Human capital development;
B. health and Safety;
C. human Rights; and
D. Labour rights, including:
» freedom of association and employee relations;
» forced labour; and
» living wage

Memory Trick
Car: Lambo Hurican RS

Question 5

external factors

Answer 5

E. Stakeholder opposition and controversial sourcing;
F. product Liability and consumer protection;
G. social Opportunities; and
H. animal Welfare and antimicrobial resistance

Memory trick

SLOW

Question 6

There are many different guidelines with respect to human rights. However, two have a direct effect on
companies, and as such also on investors:

Answer 6

▶ The United Nations Guiding Principles on Business and Human Rights (UNGPs); and
▶ The OECD Guidelines for Multinational Enterprises (MNEs).

Question 7

Labour rights considerations

Answer 7

▶ freedom of association and protection of the right to organise;
▶ right to organise and collective bargaining;
▶ forced labour and abolition of forced labour;
▶ minimum age;
▶ worst forms of child labour;
▶ equal remuneration (living wage); and
▶ discrimination (employment and occupation).

Question 8

3 areas to consider material social factors for investors

Answer 8

Country, Sector and Company

Question 9

Application

Answer 9

Materiality, quality of Mgmt, Ratio anaysis and modelling