CIPS L3M6 Exam - Topic 3 Question 11 Discussion

Actual exam question for CIPS's L3M6 exam

Question #: 11
Topic #: 3

Shareholders want to obtain maximum return on investment, and therefore it is not a priority for them to behave in a responsible way.

ATRUE

BFALSE

Show Suggested Answer

Suggested Answer: B

While shareholders seek high ROI, responsibility is increasingly a priority. The CIPS L3M6 module notes that modern shareholders---especially institutional investors---value sustainability, as irresponsible behavior (e.g., pollution scandals) risks long-term profitability and reputation. For example, fossil fuel divestment trends show shareholders pushing for green practices. This falsifies the statement, aligning with LO2's view that environmental responsibility enhances, rather than detracts from, financial success.

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by Paris at Jul 08, 2025, 05:56 AM

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Tatum

8 months ago

Surprised to hear that! Can’t we have both?

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Casey

9 months ago

Not true! Responsible investing can yield great returns.

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Maile

9 months ago

Totally agree, profits come first!

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Glenn

9 months ago

Really? I thought ethics mattered to some shareholders.

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Isadora

9 months ago

It's all about the bottom line, no doubt!

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Tish

9 months ago

I’m not entirely sure, but I think the answer could be TRUE since maximizing returns often overshadows other concerns for some investors.

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Willodean

10 months ago

I'm leaning towards FALSE because I believe many shareholders are starting to value sustainability alongside profits.

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Yoko

10 months ago

I feel like this question is tricky. I recall a practice question that suggested shareholders can care about both returns and responsibility.

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Serina

10 months ago

I think I remember discussing how shareholders often prioritize returns, but isn't there a growing trend towards responsible investing?

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Louvenia

10 months ago

I feel pretty confident about this one. The statement clearly says that shareholders prioritize maximum returns over responsible behavior, so I'm going to go with TRUE.

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Keshia

11 months ago

This is a tricky one. I can see the logic behind the statement, but I also know that there's a growing emphasis on corporate social responsibility these days. I'll have to really analyze the wording to decide which answer is correct.

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Dorsey

11 months ago

Okay, I can see both sides of this. On one hand, shareholders do want to maximize their returns. But on the other hand, many companies are now focused on being more socially responsible. I'll have to weigh the pros and cons.

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Lawrence

11 months ago

Hmm, I'm not sure about this one. The statement seems to be making a broad generalization about shareholders. I'll need to think it through carefully before answering.

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Rory

11 months ago

I think this question is pretty straightforward. The statement seems to be saying that shareholders only care about maximizing their returns, not about being responsible. So I'll go with TRUE.

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