Skip to content

ACCA Applied Knowledge · Business and Technology · Governance in business organisations

Brelmont plc discovers that one of its overseas suppliers uses child labour. Management decides to keep the supplier because switching would raise costs and reduce short-term profit, but also publishes a glossy CSR report praising its ethical sourcing. Which term best describes this practice of presenting a misleadingly responsible image?

The practice is greenwashing, or window dressing of CSR claims. The company promotes an ethical image while knowingly tolerating child labour in its supply chain, which misleads stakeholders. Genuine philanthropy or social auditing would involve real giving or honest assessment instead.

  1. AStakeholder mapping
  2. BGreenwashing or window dressing of CSR claimsCorrect
  3. CCorporate philanthropy
  4. DSocial auditing

Explanation

Publicising ethical credentials while knowingly tolerating contrary practice misleads stakeholders; this is greenwashing, or more broadly window dressing CSR. Philanthropy is genuine charitable giving, and social auditing is an assessment of social performance, which would actually reveal the problem.

Did you get it right without looking?

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

Practise Governance in business organisationsFree diagnostic mock

More Governance in business organisations questions