Which of the following is not a reason to report sustainability-related information?

Question

BlackTom AI · Accepted Answer

Question restatement: Which of the following is not a reason to report sustainability-related information?

Option A: 'To comply with legal requirements.' Here, the motivation is legal compliance, which is a common and legitimate reason for sustainability reporting. It helps ensure organizations meet mandatory disclosures and avoid penalties, so this is a valid reason.

Option B: 'To influence the perceived legitimacy of the organisation.' This reflects a reputational or legitimacy-based motive. Reporting can enhance trust and legitimize the organization in the eyes of stakeholders, customers, investors, and the public, making this a plausible reason.

Option C: 'To increase the wealth of shareholders & managers.' This statement centers on generating personal wealth for insiders rather than informing stakeholders or improving governance. While financial performance can be related to sustainability success, the primary purpose of reporting sustainability information is not to directly increase personal wealth of insiders; it is more about accountability, transparency, and external communication. Therefore, this option is not aligned with the typical aims of sustainability reporting.

Option D: 'All of the above are reasons to report sustainability-related information.' Since Option C is not a valid reason, this option would be incorrect as a blanket statement claiming all listed reasons are valid.

Additional notes: When evaluating motives for sustainability reporting, keep in mind the typical purposes—compliance, legitimacy and trust-building, transparency, stakeholder engagement, and improving sustainability governance. Personal wealth interests of shareholders or managers are not regarded as the intended justification for issuing sustainability reports, even if financial outcomes may be influenced indirectly by good sustainability practices.

Which of the following is not a reason to report sustainability-related information?

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