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CIMA Exam CIMAPRA19-E03-1 Topic 5 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam
Question #: 72
Topic #: 5
[All CIMAPRA19-E03-1 Questions]

LLL is an international oil and gas exploration company. It is considering investing S300 million in developing new oil fields in Country D. For this it will need to obtain a license from the government of Country D.

These new oil fields will bring much wealth to Country D because a large proportion of the revenue from the production of oil will be paid to the government as part of the licensing agreement.

However, oil production in Country D will have some undesirable social effects, such as the threat of pollution, congestion to the roads and pressure on local amenities such as housing, electricity and clean water.

Which of the following approaches to stakeholder management should LLL NOT undertake in order to enter Country D?

Show Suggested Answer Hide Answer
Suggested Answer: A, C

Contribute your Thoughts:

Harris
2 days ago
Promotional videos are great, but they don't actually address the real concerns of the local stakeholders. Option C is not enough on its own.
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Charlie
3 days ago
Option A is a clear conflict of interest and should not be considered. Bribing government officials is unethical and illegal.
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Aleisha
7 days ago
I think option B is the best approach. Committing to improving local amenities and infrastructure shows that LLL is taking the social impact seriously and trying to mitigate it.
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Jacqueline
18 days ago
I disagree. I think LLL should focus on improving local amenities and roads to show their commitment to the community.
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Mozell
19 days ago
I agree with you, Nickolas. That could be seen as bribery and unethical.
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Nickolas
26 days ago
I think LLL should not issue free shares to government ministers from Country D.
upvoted 0 times
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