ACCA Applied Knowledge · Business and Technology · Social and demographic factors
Which of the following is most likely to be a result of a growing public awareness of ethical and social issues for businesses?
Growing public awareness of ethical and social issues most likely leads to increased demand for sustainability and social impact reporting. Stakeholders expect transparency about non-financial performance, and reputational risk from adverse publicity rises rather than falls as awareness grows.
- AReduced need for organisations to report on non-financial performance
- BIncreased demand for sustainability and social impact reportingCorrect
- CLower risk of reputational damage from adverse publicity
Explanation
Greater social awareness raises stakeholder expectations for transparency, so more sustainability and social reporting is demanded. The other options state the opposite of what usually happens, since reputational risk rises with awareness.
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