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

Milton Co publishes a sustainability report claiming that it is a leader in reducing carbon emissions. In fact, it has only reduced emissions at one small site, while emissions at its main plants have risen. This practice is best described as:

The practice is greenwashing. Milton presents a small, isolated improvement as company-wide leadership while its main emissions rise, which misleads stakeholders about its real environmental performance and is an ethical problem as well as a reputational risk.

  1. AGreenwashing, because it misleads stakeholders about its environmental performanceCorrect
  2. BStakeholder mapping, because it identifies the interests of different groups
  3. CSocial auditing, because it independently assesses its social impact

Explanation

Greenwashing is giving a misleading impression of environmental performance. Here a minor improvement is presented as leadership while overall emissions rise. Social auditing would be an objective assessment, and stakeholder mapping is unrelated to reporting claims.

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