Give an example of a social capital topic and a potential metric.

Prepare for the SASB Fundamentals of Sustainability Accounting Level II Test. Study with multiple choice questions, gaining hints and explanations. Enhance your sustainability reporting skills and ace your exam!

Social capital centers on relationships and trust with stakeholders, especially customers and communities. Protecting customer privacy and data security is a clear social capital topic because how a company handles personal information directly affects trust and ongoing relationships. A metric like incidents of privacy breaches or the percentage of customers satisfied with data privacy provides a tangible way to gauge performance in this area and the risk to stakeholder trust. The other choices align with different sustainability areas: energy use is environmental, R&D spending ties to innovation and value creation, and workplace safety incidents relate to labor practices and employee safety, not external relationships with customers.