Question

Kathmandu Holdings Limited is a public company with shares listed on the Australian Securities Exchange. Kathmandu Holdings Limited is a transnational chain of retail stores, selling travel and adventure outdoor apparel and equipment. Kathmandu is a retailer of clothing and equipment for travel and adventure in New Zealand and Australia. Kathmandu Holdings Limited have released their 2019 Business Sustainability Report, which contains information about the company’s corporate social responsibility (CSR) activities.

The following information has been extracted from the 2019 Business Sustainability Report of Kathmandu Holdings Limited.

“Between 8 January and 12 February, an unidentified third party gained unauthorised access to Kathmandu’s website. During this process, the third party may have captured customer personal information and payment details entered at checkout for potential fraudulent use. As soon as we became aware of this incident, we took immediate steps to confirm that our online store and our wider IT environment were secure. After this, we worked closely with leading external IT and cyber security consultants to fully investigate the circumstances of the incident and confirm which customers were impacted. Kathmandu proceeded to roll out a global notification campaign to directly notify 19,726 potentially affected customers and 24 regulators/law enforcement agencies in 93 jurisdictions.”

For the CSR activities outlined above you are required to:

(i) Identify which CSR motivation would most likely apply to explain Kathmandu’s’ decision to disclose that information, (1 mark) and

(ii) Explain how the information disclosed applies to the CSR motivation you have identified.

Answer 1