ABC Manufacturing Ltd. operates a large factory employing 1,200 workers. Over the past year, management has introduced new shift schedules to meet…

CA Final · Advanced Auditing, Assurance and Professional Ethics · PYQS · January 2026
ABC Manufacturing Ltd. operates a large factory employing 1,200 workers. Over the past year, management has introduced new shift schedules to meet rising demand. However, production targets have pushed some line supervisors to require employees to work extended hours, routinely exceeding 12-hour shifts with only 15-minute breaks. Several workers have complained of chronic fatigue, frequent musculoskeletal injuries and lack of time for rest or family commitments. A small group attempted to form a workers' committee to discuss these issues, but were told by management that any "collective gathering" would hamper productivity and could lead to disciplinary action. ABC Manufacturing Ltd.'s board of directors has engaged you, to conduct the social impact assessment and whether the company policies are aligned with Corporate Social Responsibility (CSR) guidelines. Based on the above scenario, which principle is not being adhered to by the Company?
(A) Principle 5-Respect and Promote Human Rights
(B) Principle 8-Promote inclusive growth and equitable development
(C) Principle 3-Promote well-being of all Employees including those in the Value Chain.
(D) Principle 4-Respect for stakeholders' Interests and Responsiveness.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

Principle 3-Promote well-being of all Employees including those in the Value Chain.

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