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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Governance Influencers

Anand Cements Ltd. publishes its sustainability report. To show that it has captured views of affected communities, the company's report describes the groups consulted, the issues each raised and how the issues influenced the report's content. Which reporting principle is mainly being demonstrated?

The company is demonstrating the principle of stakeholder inclusiveness. It identifies the groups consulted, records the issues they raised and shows how those issues shaped the report. Cost minimisation, related party disclosure and dividend smoothing do not concern responding to stakeholder expectations.

  1. AStakeholder inclusivenessCorrect
  2. BCost minimisation
  3. CRelated party disclosure
  4. DDividend smoothing

Explanation

Stakeholder inclusiveness requires an organisation to identify its stakeholders, explain how it responded to their reasonable expectations and interests, and reflect these in reporting. The other options are unrelated to stakeholder engagement.

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