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!

Multiple Choice

Which of the following is a valid example of a social capital metric?

The main idea here is to recognize which type of metric fits under social capital—measures that relate to relationships with external stakeholders, trust, and social risk. Incidents of privacy breaches reflect how well a company protects customer data and maintains trust with customers, regulators, and the public. A higher number of privacy incidents signals greater risk to relationships and reputation, which are core concerns of social capital. In contrast, training hours per employee focus on internal human resources—developing the workforce—which is a human capital metric. Energy intensity and water use per unit of production are environmental metrics that track resource use and environmental efficiency, not social relationships or trust.

The main idea here is to recognize which type of metric fits under social capital—measures that relate to relationships with external stakeholders, trust, and social risk. Incidents of privacy breaches reflect how well a company protects customer data and maintains trust with customers, regulators, and the public. A higher number of privacy incidents signals greater risk to relationships and reputation, which are core concerns of social capital.

In contrast, training hours per employee focus on internal human resources—developing the workforce—which is a human capital metric. Energy intensity and water use per unit of production are environmental metrics that track resource use and environmental efficiency, not social relationships or trust.