CSEET · Economic and Business Environment · Environmental Governance
A steel manufacturer in Odisha voluntarily installs equipment that cuts its carbon emissions well below the legal limit and reports the results to investors. Which idea does this best illustrate?
This illustrates going beyond compliance as part of corporate environmental responsibility. The firm voluntarily reduces emissions below the legal limit and discloses results, showing it treats environmental protection as its own duty to stakeholders rather than merely meeting minimum regulatory requirements.
- ARegulatory arbitrage
- BGoing beyond compliance as part of corporate environmental responsibilityCorrect
- CTransfer pricing
- DWindow dressing of accounts
Explanation
Corporate environmental responsibility means a company acts to reduce its environmental impact, often beyond what law requires. Cutting emissions below the legal limit and reporting transparently is such a step. Regulatory arbitrage means exploiting differences in rules, which is not described here.
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