Which of the following is a benefit of following GRI standards for organizations?

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Following GRI standards enhances transparency in sustainability reporting, which is crucial for organizations seeking to communicate their environmental, social, and governance (ESG) impacts effectively. By adhering to these globally recognized standards, organizations can provide clear, consistent, and comparable data on their sustainability performance, making it easier for stakeholders—such as investors, customers, and the general public—to understand their efforts and commitments.

Improved transparency fosters trust and credibility, allowing organizations to engage meaningfully with stakeholders and demonstrate accountability. This can lead to better relationships, enhanced reputation, and potentially improved financial performance as stakeholders appreciate the organization's commitment to sustainability.

The other options, such as increased secrecy and less emphasis on stakeholder feedback, run counter to the core principles of the GRI, which is designed to promote openness and stakeholder engagement. While GRI standards may lead to some efficiencies in reporting processes, the primary benefit is not necessarily a direct reduction in costs but rather the facilitation of better communication and trust through transparent reporting.

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