ISM Exam LEAD Topic 3 Question 14 Discussion

Actual exam question for ISM's LEAD exam

Question #: 14
Topic #: 3

[All LEAD Questions]

A company develops a scorecard to measure performance. The scorecard has the following criteria:

1. Profitability

2. Amount of taxes paid

3. Charitable contributions/activities

4. Average hours of employee training

5. Amount of waste sent to landfills

6. Safety incident rates

This scorecard is an example of which of the following?

AFinancial

BEnvironmental

CSocial responsibility

DTriple bottom line

Show Suggested Answer

Suggested Answer: D

Triple Bottom Line (TBL) Concept: TBL is an accounting framework that incorporates three dimensions of performance: social, environmental, and financial. This approach encourages businesses to consider the full impact of their activities on all stakeholders.

Criteria Alignment: The scorecard criteria cover profitability (financial), taxes paid (financial), charitable contributions (social), employee training (social), waste to landfills (environmental), and safety incidents (social/environmental). This holistic approach aligns with TBL.

Sustainability Focus: TBL emphasizes sustainability and responsible business practices, ensuring that the company's activities are beneficial to society and the environment, in addition to being economically viable.

Reference: The TBL framework is widely discussed in sustainability and corporate social responsibility literature, including works by John Elkington, who coined the term, and various business management resources like Harvard Business Review.

by Ernie at Sep 14, 2024, 02:46 AM

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Ettie

2 months ago

This is a well-rounded scorecard that considers the big picture. Gotta love those companies that think beyond just the bottom line.

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Tanja

1 months ago

A: Definitely, it shows they care about their impact on the environment and society as a whole.

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Marylou

1 months ago

B: I agree, it's great to see companies taking into account more than just financial metrics.

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Colene

2 months ago

A: I think the scorecard is an example of social responsibility.

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Yoko

2 months ago

I'd go with option D. This scorecard is looking at the company's performance from multiple angles, not just the financial side.

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Kiley

25 days ago

It's great to see companies taking a holistic approach to measuring their impact on society and the environment.

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Paulene

28 days ago

I think the scorecard reflects a commitment to sustainability and social responsibility.

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Rodolfo

1 months ago

It's important for companies to consider more than just financial metrics when evaluating their success.

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Lettie

2 months ago

I agree, option D seems to encompass all aspects of the company's performance.

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Art

2 months ago

I think it could also be considered as triple bottom line since it includes financial, environmental, and social aspects.

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Laura

3 months ago

This scorecard definitely seems to cover the triple bottom line. Profitability, environmental impact, and social responsibility - it's all there.

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Haydee

2 months ago

I like how they are taking into account things like employee training and waste management.

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Melissa

2 months ago

It's important for companies to consider more than just financial performance.

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Stevie

2 months ago

I think this scorecard really shows that the company is committed to being sustainable.

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Franchesca

3 months ago

I agree, it's great that they are measuring all three aspects of the triple bottom line.

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Gilma

3 months ago

I agree with Maurine. The criteria like charitable contributions and employee training hours show a focus on social responsibility.

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Maurine

3 months ago

I think the scorecard is an example of social responsibility.

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