ACCA Applied Knowledge · Business and Technology · Sustainable business practices
Lumo Co publishes a sustainability report. Its board wants the report to be accountable to stakeholders and to give readers confidence in the figures. Which action would BEST achieve this?
Obtaining independent assurance over the sustainability data is best. An external review adds credibility and reliability to the figures, which supports accountability to all stakeholders. Selective reporting or restricted distribution would reduce transparency and weaken stakeholder confidence in the report.
- AObtain independent assurance over the reported sustainability dataCorrect
- BLimit the report to favourable environmental statistics
- CPublish the report only to shareholders
Explanation
Independent assurance gives credibility to the reported data and supports accountability. Reporting only favourable results is selective and undermines trust. Restricting the report to shareholders ignores the wider stakeholders to whom the company is accountable.
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