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ACCA Strategic Professional · Strategic Business Leader · Reporting to stakeholders

Tamsin Retail's board wants its social and environmental audit to give the most useful insight into whether the company is meeting stakeholder expectations. It is choosing between: (1) verifying only the accuracy of reported carbon emissions; (2) comparing actual social and environmental performance against targets and stakeholder expectations set through consultation, and reporting on the gaps and the processes behind them. Which approach is more consistent with the purpose of a social and environmental audit and why?

Option 2 is more consistent, because a social and environmental audit evaluates actual performance against targets and stakeholder expectations and examines the underlying processes. Checking only the accuracy of emissions data is narrower and does not show whether stakeholder expectations are being met.

  1. AOption 2, because it evaluates performance against objectives and stakeholder expectations, not just data accuracyCorrect
  2. BOption 1, because only quantifiable data can be audited
  3. COption 1, because stakeholder expectations are irrelevant to audit
  4. DOption 2, because it removes the need for any reporting to stakeholders

Explanation

A social and environmental audit assesses performance against stated policies, targets and stakeholder expectations, and the systems behind them. Verifying data alone is narrower. Stakeholder views are central, and the audit supports rather than replaces reporting.

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