Chap 4 Test

Question 1

1. Which social megatrends are important to consider within the investment analysis?

Answer 1

(c) Automation, globalisation and longevity.

Question 2

2. What is an example of an internal and an external social factor?

Answer 2

(b) Internal: health and safety; external: social opportunities.

Question 3

3. Why is a (social) materiality assessment important?

Answer 3

Not all countries, sectors and companies are affected equally by the different social megatrends and social factors.

Question 4

4. What is meant with the concept of a just transition?

Answer 4

(b) A transition that shares the financial and social burden in a fair way.

Question 5

5. What is the FAIRR initiative?

Answer 5

(d) It focuses on the increased prevalence of antimicrobial resistance.

Question 6

6. The OECD Guidelines for Multinational Enterprises

Answer 6

(c) is a comprehensive set of government-backed recommendations on responsible business
conduct.

Question 7

7. What does ‘offshoring’ mean?

Answer 7

(c) Moving company production to low income countries.

Question 8

8. What kinds of cases require Free Prior Informed Consent (FPIC)?

Answer 8

(a) Developments on ancestral land or the use of resources of a territory owned by indigenous people.

Question 9

9. What does the Access to Medicine Index analyse?

Answer 9

(a) How pharmaceutical companies are addressing access to medicine in low- to middle-income countries.

Question 10

10. What is the increase in automation and AI most associated with?

Answer 10

(d) Future employment losses in the transportation sector.

Question 11

12. What is the platform on living wage?

Answer 11

(d) A platform of investors that encourage investee companies to address the non-payment of living wage in their supply chains.

Question 12

Which of the following are included in labour rights?

Answer 12

(c) Abolition of forced labour; equal remuneration; and protection against worst forms of child
labour.

Question 13

11. What does the corporate human rights benchmark look at?

Answer 13

(d) It looks at the policies, processes and practices of corporations on human rights.

Question 14

14. What has been happening to Income inequality over the last few decades?

Answer 14

(c) It has been growing, which has a negative effect on the economy.

Question 15

15. Which of the following are examples of internal and external social factors?

Answer 15

(c) Internal: forced labour; external: controversial sourcing.