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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board's Accountability on ESG

Surya Logistics Ltd's board wants a reliable way to learn the views of its dealers and small suppliers on its ESG practices and to show this in board reporting. Which step best serves this purpose?

The board should use a structured feedback mechanism, such as surveys or consultations, and receive summarised findings and actions. This gives systematic, representative stakeholder input and closes the loop in board reporting, unlike relying on meeting attendance, litigation or personal contacts.

  1. ARely only on the annual general meeting attendance records
  2. BUse a structured feedback mechanism such as surveys or consultations, and present summarised findings and actions to the boardCorrect
  3. CWait for suppliers to approach the court with complaints
  4. DCollect feedback only from the CEO's personal contacts

Explanation

A structured mechanism such as surveys or consultations gives systematic, representative input from dealers and suppliers. Summarising findings and the follow-up actions to the board closes the loop and supports accountable reporting. Attendance records, litigation or personal contacts are not representative or systematic.

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