UGC NET Questions (Paper – 1)

Statements A, B and D are correct: corporate environmental responsibility typically goes beyond compliance, includes reporting and accounting tools and acknowledges that some firms engage in greenwashing. Statement C is incorrect because environmental responsibility is generally seen as part of the broader corporate social responsibility agenda. Thus, the combination that selects A, B and D only is correct.

Option A:
Option A is incorrect as it omits D, even though D accurately defines greenwashing, an important concept related to corporate environmental claims. Without D, the description of corporate environmental responsibility is incomplete.

Option B:
Option B is correct because it brings together the three true statements and excludes C, which wrongly disconnects environmental responsibility from the CSR framework. It reflects the integrated ethical, social and environmental expectations from businesses.

Option C:
Option C is incorrect since it treats C as true by including it along with B and D. Statement C denies the relationship between corporate environmental responsibility and CSR, which contradicts standard corporate governance literature.

Option D:
Option D is incorrect because it includes C along with A and D and leaves out B. Although A and D are correct, accepting C and omitting B—on reporting and disclosure—makes this combination conceptually flawed.

Green accounting attempts to integrate environmental factors into national income accounts. It recognises that GDP can rise while natural capital is depleted or environmental quality declines, giving a misleading picture of true wealth. By subtracting costs of pollution and resource depletion and adding the value of environmental services, green GDP provides a more realistic measure of sustainable economic performance. Thus, the main idea is to adjust income measures for environmental losses, as described in Option C.

Option A:
Option A is incorrect because simply calculating physical output volumes does not address environmental externalities. Green accounting is specifically concerned with valuing environmental gains and losses.

Option B:
Option B is incorrect as it suggests excluding environmental assets, which is the opposite of what green accounting advocates. Ignoring these assets perpetuates the shortcomings of conventional GDP.

Option C:
Option C is correct since it points to the need for incorporating the depreciation of natural capital alongside produced capital. This adjustment helps policymakers see whether growth is being achieved at the cost of long-term environmental health.

Option D:
Option D is incorrect because green accounting does not demand the abolition of all traditional measures. Instead, it complements and refines them by adding an environmental dimension.