Which of the following is correct?

Question

BlackTom AI · Accepted Answer

To analyze the question, we examine each statement in turn and assess its validity given typical knowledge about sustainability reporting frameworks.
Option A: 'The Integrated Reporting (IR) framework focuses on 4 types of capital: financial, manufactured, natural and intellectual.' This is accurate in spirit because IR does emphasize multiple capitals, but the standard phrasing often includes financial, manufactured, intellectual (or human), natural, and other capitals such as social or relational capital. The wording here leaves out human/social capital and can be interpreted as incomplete, which makes this statement potentially misleading or not fully precise.
Option B: 'The Global Reporting Initiative (GRI) guidelines are presented in one part: reporting principles & standard disclosures.' In reality, GRI guidance is structured with two main modules: General Disclosures and Specific Disclosures, plus various standards and sector supplements. Saying it is presented in one part oversimplifies the framework and is therefore inaccurate.
Option C: 'The GRI framework is accepted by all as representing current “best practice”.' This claim is overly absolutist. In practice, sustainability reporting frameworks are subject to debate, with some organizations adopting GRI, others using SASB, TCFD, or integrated reporting, and not everyone agreeing that GRI is universally the sole best practice. Thus this statement is incorrect.
Option D: 'An issue with the GRI framework is that companies can be selective about which indicators to report.' This accurately reflects a known critique: GRI guidelines encourage disclosure across a range of indicators, but organizations may choose not to report on all indicators, leading to selective reporting. This is a recognized limitation or challenge of the GRI framework rather than a strength, making it a valid point.
Overall, the analysis shows that A and B contain precision issues, C presents an absolute claim that’s contested, while D highlights a genuine drawback of the framework. The reasoning aligns with common critiques of GRI related to indicator selection and reporting completeness.

Which of the following is correct?

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