KREFT G202 TEST PAPER ACTUAL QUESTIONS
AND ANSWERS SURE A+
✔✔What was the impact of the compromise? - ✔✔mitigate risks in the short term
✔✔Most companies wait until a crisis occurs but ... - ✔✔Starbucks proactively
collaborates with non profit partners before losing control of a social issues agenda
✔✔Starbucks voluntarily collated with: - ✔✔-CEPCO
-Ford Foundation
-Oxfam
during the one year beta test of Fair Trade coffee
✔✔Impact of voluntary investment w CEPCO, Ford Foundation, and Oxfam - ✔✔-
Immature Fair-Trade Suppliers
-First mover if market develops
-enhanced corporate rep
✔✔Initially MB was - ✔✔more than marginal cost
✔✔but after the beta testing, it was revealed that MB - ✔✔was less than Marginal cost
✔✔Starbucks made a public commitment to - ✔✔source 100% of its coffee from ethical
sources by the end of 2015
✔✔By 2015... - ✔✔-99% of coffee is ethically sourced
-less than 10% was Fair Trade Certified
-99% was C.AF.E certified
total only comes to 99 because of double certifications
, ✔✔What does it mean to be C.A.F.E certified? - ✔✔-Coffee and Farmer Equity
-certified for:
-product quality
-economic accountability
-social responsibility
-environmental leadership
✔✔Who was C.A.F.E developed by? - ✔✔Starbucks with Conservation International.
- It is third party certified by Scientific Certification System (SCS) Global Services.
✔✔BlackRock - ✔✔
✔✔Who is Larry Fink? - ✔✔Chairman and CEO of BlackRock
-called for business leaders to focus on corporate purpose under ESG issues
✔✔ESG targeting is about - ✔✔long run profitability
✔✔BlackRock operates as an ______ investor - ✔✔index
✔✔Index investors: - ✔✔-create a fund from a diversified portfolio of assets that mirrors
a market (or index) to create longer term returns
-considered passive investing, as performance is simply based on changes of individual
stocks in the fund, rather than someone actively trading stocks
✔✔Activist investors: - ✔✔-may not care about creating sustainable corporate value
over long periods of time
-purchases a large number of shares in a given public company to strategically obtain
board seats, change management , and influence operating strategy to create shorter-
term returns
-can seize control of a given company
✔✔Risks of linking purpose to profit - ✔✔-high opportunity cost if social issues that
receive investment are peripheral to meaningful stakeholders engagement
-de dependent on non-profit partners that control too much of the agenda
-incentivize firms to greenwash more often
✔✔7 types of greenwashing - ✔✔
✔✔Hidden Trade-off - ✔✔Claiming to be green based on a narrow set of attributes
without attention to larger, more impactful, environmental issues
AND ANSWERS SURE A+
✔✔What was the impact of the compromise? - ✔✔mitigate risks in the short term
✔✔Most companies wait until a crisis occurs but ... - ✔✔Starbucks proactively
collaborates with non profit partners before losing control of a social issues agenda
✔✔Starbucks voluntarily collated with: - ✔✔-CEPCO
-Ford Foundation
-Oxfam
during the one year beta test of Fair Trade coffee
✔✔Impact of voluntary investment w CEPCO, Ford Foundation, and Oxfam - ✔✔-
Immature Fair-Trade Suppliers
-First mover if market develops
-enhanced corporate rep
✔✔Initially MB was - ✔✔more than marginal cost
✔✔but after the beta testing, it was revealed that MB - ✔✔was less than Marginal cost
✔✔Starbucks made a public commitment to - ✔✔source 100% of its coffee from ethical
sources by the end of 2015
✔✔By 2015... - ✔✔-99% of coffee is ethically sourced
-less than 10% was Fair Trade Certified
-99% was C.AF.E certified
total only comes to 99 because of double certifications
, ✔✔What does it mean to be C.A.F.E certified? - ✔✔-Coffee and Farmer Equity
-certified for:
-product quality
-economic accountability
-social responsibility
-environmental leadership
✔✔Who was C.A.F.E developed by? - ✔✔Starbucks with Conservation International.
- It is third party certified by Scientific Certification System (SCS) Global Services.
✔✔BlackRock - ✔✔
✔✔Who is Larry Fink? - ✔✔Chairman and CEO of BlackRock
-called for business leaders to focus on corporate purpose under ESG issues
✔✔ESG targeting is about - ✔✔long run profitability
✔✔BlackRock operates as an ______ investor - ✔✔index
✔✔Index investors: - ✔✔-create a fund from a diversified portfolio of assets that mirrors
a market (or index) to create longer term returns
-considered passive investing, as performance is simply based on changes of individual
stocks in the fund, rather than someone actively trading stocks
✔✔Activist investors: - ✔✔-may not care about creating sustainable corporate value
over long periods of time
-purchases a large number of shares in a given public company to strategically obtain
board seats, change management , and influence operating strategy to create shorter-
term returns
-can seize control of a given company
✔✔Risks of linking purpose to profit - ✔✔-high opportunity cost if social issues that
receive investment are peripheral to meaningful stakeholders engagement
-de dependent on non-profit partners that control too much of the agenda
-incentivize firms to greenwash more often
✔✔7 types of greenwashing - ✔✔
✔✔Hidden Trade-off - ✔✔Claiming to be green based on a narrow set of attributes
without attention to larger, more impactful, environmental issues
