KREFT G202 EXAM 3 COMPREHENSIVE TEST
PAPER 2026 QUESTIONS WITH FULL
EXPLANATIONS AND SOLUTIONS
◉ BP acquisition results. Answer: BP claims #1 position in solar
energy/oil and gas recovery
◉ BP rebranding. Answer: - "Beyond Petroleum"
- trying to appear as "clean" oil company
- changes to green colors and Helios logo
◉ BP rebranding targets. Answer: - Employees
- Investors
- Policy makers
◉ Why BP rebranding isn't for consumers. Answer: - Oil and gas is a
commodity and has no brand influence
- Consumers care about price/convivence for gas
◉ Why BP rebranding is for employees. Answer: - clean energy is
future oriented
- employees want to work for companies that grow
,- best workers want to work for industry leaders
◉ Why BP rebranding is for investors. Answer: - target socially
responsible investors (SRIs)
- Investors want high returns and low guilt
◉ Why BP rebranding is for policy makers. Answer: - industry
influence if/how new policy written
- policy makers look towards industry leaders to develop them
- BP can help shape the policy to favor them by securing
partnerships (lobbied for portfolio standards)
◉ Risks of BPs rebranding. Answer: - they are under the spotlight of
NGOs
- can be easily accused of greenwashing
◉ Rewards of BPs rebranding. Answer: - become industry leader
- create shared value amongst shareholders
◉ Why Blackrock/Larry Fink calls for business to focus on ESG
issues. Answer: - ESG issues cause social risk (NGO campaigns)
- ESG issues cause political risk (Increasing regulations)
, - ESG issues cause competitive risk (Sharholders look for firms w/
high social responsibility)
◉ ESG issues. Answer: Environmental, Social, Governance issues
◉ What focusing on ESG issues can provide. Answer: long-term
profitablity
◉ Reasons Blackrock wants to see ESG focus in the companies they
are invested in. Answer: - mitigates social/political risk
- improves employee recruitment/retentions
- increases firm productivity/innovation
- increase customer loyalty from ESG focused consumers (Can allow
for market power pricing)
- attract ESG focused investor pools
◉ Risks of focusing on ESG. Answer: - high opportunity cost
- dependent on nonprofits/NGOs to control agendas
- incentivizes greenwashing
◉ Hidden tradeoff. Answer: - claims to be green based on narrow
attributes and ignoring bigger issues
- EX: Starbucks bans straws...Causes lots of cup and lid waste
PAPER 2026 QUESTIONS WITH FULL
EXPLANATIONS AND SOLUTIONS
◉ BP acquisition results. Answer: BP claims #1 position in solar
energy/oil and gas recovery
◉ BP rebranding. Answer: - "Beyond Petroleum"
- trying to appear as "clean" oil company
- changes to green colors and Helios logo
◉ BP rebranding targets. Answer: - Employees
- Investors
- Policy makers
◉ Why BP rebranding isn't for consumers. Answer: - Oil and gas is a
commodity and has no brand influence
- Consumers care about price/convivence for gas
◉ Why BP rebranding is for employees. Answer: - clean energy is
future oriented
- employees want to work for companies that grow
,- best workers want to work for industry leaders
◉ Why BP rebranding is for investors. Answer: - target socially
responsible investors (SRIs)
- Investors want high returns and low guilt
◉ Why BP rebranding is for policy makers. Answer: - industry
influence if/how new policy written
- policy makers look towards industry leaders to develop them
- BP can help shape the policy to favor them by securing
partnerships (lobbied for portfolio standards)
◉ Risks of BPs rebranding. Answer: - they are under the spotlight of
NGOs
- can be easily accused of greenwashing
◉ Rewards of BPs rebranding. Answer: - become industry leader
- create shared value amongst shareholders
◉ Why Blackrock/Larry Fink calls for business to focus on ESG
issues. Answer: - ESG issues cause social risk (NGO campaigns)
- ESG issues cause political risk (Increasing regulations)
, - ESG issues cause competitive risk (Sharholders look for firms w/
high social responsibility)
◉ ESG issues. Answer: Environmental, Social, Governance issues
◉ What focusing on ESG issues can provide. Answer: long-term
profitablity
◉ Reasons Blackrock wants to see ESG focus in the companies they
are invested in. Answer: - mitigates social/political risk
- improves employee recruitment/retentions
- increases firm productivity/innovation
- increase customer loyalty from ESG focused consumers (Can allow
for market power pricing)
- attract ESG focused investor pools
◉ Risks of focusing on ESG. Answer: - high opportunity cost
- dependent on nonprofits/NGOs to control agendas
- incentivizes greenwashing
◉ Hidden tradeoff. Answer: - claims to be green based on narrow
attributes and ignoring bigger issues
- EX: Starbucks bans straws...Causes lots of cup and lid waste
