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

Ashoka Retail Ltd faces media reports of poor treatment of contract workers. Within weeks, customers and employee groups voice concern, and the board reviews its supplier code of conduct. Which governance influence is primarily at work here?

The main influence is stakeholder and public pressure, including the media. Customers and employee groups raised concerns and the board responded by reviewing its supplier code. No regulator direction, disqualification or audit finding triggered the change, so this is a non-statutory governance influence.

AStakeholder and public pressure, including the media, shaping board behaviourCorrect
BMandatory direction from the Registrar of Companies
CAutomatic disqualification of directors
DStatutory secretarial audit findings

Explanation

Media, customers and employee groups exert informal pressure that can drive board action even without a legal order. No registrar direction or director disqualification is described, and no audit finding is involved. The board acts in response to reputation and stakeholder concerns.

Did you get it right without looking?

One question tells you little. A timed set on Governance Influencers shows your real accuracy, how long you take and where you lose marks.

Practise Governance Influencers Free diagnostic mock

More Governance Influencers questions