Quiz chapter 19 - Sustainability and the Finance Sector Flashcards Preview

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Flashcards in Quiz chapter 19 - Sustainability and the Finance Sector Deck (20):
1

Sustainability in the business enterprise means ensuring long-term business success while contributing toward economic and social development, a healthy environment and a stable society. a. True
b. False

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2

Ethical investing means an approach to business which takes into account ethical, economic, social and environmental impacts.
a. True
b. False

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3

Socially Responsible Investment means investing in a way that reflects an individual's values.
a. True
b. False

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4

The main stakeholders for a typical financial services organisation are shareholders and employees.
a. True
b. False

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5

The integration of sustainability into management systems and practices brings tangible benefits, including new lines of business, new clients, greater access to financing, greater shareholder value, and improved reputation and goodwill.
a. True
b. False

..

6

A key principle in a financial institution engaging in sustainability is a genuine desire to 'do the right thing'.
a. True
b. False

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7

In an increasingly environmentally concerned community, financial institutions that finance the operations of organisations that have a positive environmental impact stand to benefit from developing green credentials.
a. True
b. False

..

8

The Equator Principles set out a step-by-step process for 'green financial institutions.'
a. True
b. False

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9

On the positive side, climate change may lead to new asset classes and products emerging such as carbon, water and weather markets, clean technology and renewable energy.
a. True
b. False

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10

The business of financial institutions is all about risk.
a. True
b. False

..

11

The Kyoto Protocol is a binding agreement made by 192 countries in 1997 to reduce greenhouse gas emissions
a. True
b. False

..

12

The Investor Group on Climate Change is a group of institutional investors in Australia and New Zealand committed to promoting a dialogue between institutional investors and senior corporate management in relation to climate change by encouraging private and public sector organisations to measure, manage and reduce greenhouse gas emissions and climate change impacts.
a. True
b. False

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13

The Enhanced Analytics Initiative is an international collaboration between asset owners and asset managers, with the aim of encouraging investment research to include non-financial issues and to take a longer-term focus.
a. True
b. False

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14

The centre piece of the Australian Government's regulatory response to climate change is the Responsible Investment Association Australasia.
a. True
b. False

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15

A fiduciary duty can be defined as a legal responsibility for firms to practice corporate social responsibility.
a. True
b. False

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16

Corporate governance describes the framework by which companies are directed and controlled, including the process of establishing and monitoring corporate objectives.
a. True
b. False

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17

According to principle VI of the OECD Principles of Corporate Governance, the corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the board, and the board's accountability to the company and the shareholders.
a. True
b. False

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18

Shareholder activism means active shareholder participation in the organisation's decision making process.
a. True
b. False

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19

There is a business case as well as the desire to 'do the right thing' that drives business to engage in social issues.
a. True
b. False

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20

A key element of climate change response is to have sufficient information on energy use and emissions.
a. True
b. False

...