Which of the following statements is a benefit of measuring environmental and social performance?
A) It limits the number of performance measures, identifying only the most critical ones.
B) It helps to communicate the strategy to all members of the organization.
C) It enhances the identification of cause-and-effect relationships to evaluate benefits.
D) It uses financial measures to serve as leading indicators of future nonfinancial performance.

Question

Quizplus · Accepted Answer

Measuring environmental and social performance enhances the identification of cause-and-effect relationships to evaluate benefits. This can lead to more informed decision making and better performance outcomes. Option A is incorrect because measuring environmental and social performance usually involves measuring multiple performance indicators, rather than limiting to only the most critical ones. Option B is incorrect because while measuring environmental and social performance can help to communicate the strategy to some members of the organization, it is not necessarily the primary benefit. Option D is incorrect because measuring environmental and social performance typically uses nonfinancial measures to evaluate performance.

Which of the Following Statements Is a Benefit of Measuring