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

Himalaya Foods Ltd. faces a viral social media campaign by a consumer group alleging misleading health claims. The board's response options are discussed. Which response best reflects sound governance of media and civil society pressure?

The best response is to verify the facts through an internal review, communicate transparently and promptly, and correct any lapse found. This builds stakeholder trust and limits reputational and regulatory risk, whereas denial without checking, paying influencers or ignoring the campaign are poor governance responses.

  1. AVerify the facts through an internal review, respond with transparent and timely disclosure, and correct any lapse foundCorrect
  2. BIssue a blanket denial immediately without checking the facts
  3. CPay the influencers to remove the posts
  4. DIgnore the campaign since social media has no legal standing

Explanation

Sound governance requires fact-finding, transparent timely communication and corrective action, which protects trust and reduces reputational and compliance risk. A denial without verification may worsen the issue, and paying influencers is unethical. Legal standing is irrelevant to reputational and regulatory consequences.

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