Question

ABC Inc. hires you as its Ethics Officer, and the CEO of ABC Inc wants you to help ABC Inc become ESG compliant. She asks you to make two recommendations each for the Environmental, Social, and Governance components of the ESG report for ABC Inc. She is keen on not repeating Enron’s mistakes, and also wants you to point out how your recommendations will ensure that ABC Inc will function differently from Enron

Answer 1

Answer:

The definition of the problem is listed throughout the section below on explanations.

Explanation:

ABC Inc employs ABC Inc as an internal auditor as well as CEO into becoming compliant with ESG. She requests you should consider 2 recommendations each for ABC Inc's ESG research on Climate, Economic, and Governance. Why your advice will ensure ABC Inc operates differently against Enron.

Environment:

• Through its operational activities, ABC should incorporate renewable energy. Solar panels could be used for generating power in organizations where appropriate.
• ABC will devote 5% of all its sales to research for environmentally friendly energy resources to significantly reduce its reliance on coal.

Social:

• ABC could perhaps recognize the perspective including its investors and therefore should share the required info.
• When the CEO is unaware of the corporation's misconduct as well as some informant points something out to herself, therefore that individual or organization must be tended to or respected.

Governance:

• ABC ought to be more open concerning its activities. If it's the founder or the worker. Stockholders ought to learn what the internal operations of their business are.
• Boards must be supervised closely and they should include separate, representative members. Their pay should not have been so strong that incongruity is prevented in conferences.

As contrasted with Enron's. Enron did not follow up on such above compliance issues.

• We were vague when it came to disclosing their liabilities off the income statement. Shareholders were unfamiliar with the firm's operations.
• Whistle-blower or anybody who referred out such a program flaw was embarrassed and disciplined.

ABC Inc may obey these guidelines above to have been consistent with ESG.