SHRM CP and SCP- Workplace - CSR, Ethics & Compliance/Sustainability/Creating a CSR Strategy

Serving on a board of directors

An HR vice president is adding goals to the corporate social responsibility strategy. Which leadership activity best supports this endeavor? -Collecting donations from employees -Volunteering two hours a week -Serving on a board of directors -Recycling plastic goods

It is unethical and dishonest, but it is not illegal.

An employee is reinstated after being wrongfully terminated. The HR director is instructed to ensure restoration of the employee's full leave accrual balances even though the employee received full payment for all applicable accrued leave balances at termination. Which is true of this request? -It is a violation of the organization's code of ethics. -It is unethical, dishonest, and illegal. -It is unethical and dishonest, but it is not illegal. -It is a violation of HR policy.

By building skills

An organization gains many benefits from its employees volunteering in the community. How can volunteering help the employees? -By increasing branding -By providing time off -By building skills -By improving the company culture

Lobbying for better bus service to the organization's facility

An organization has committed to sustainable business practices, focusing on reducing energy use, waste, and pollution. What community action would be a logical extension of this value? -Lobbying for better bus service to the organization's facility -Joining a local business chamber for a year -Creating aesthetically pleasing landscapes on the organization's property -Networking with local government officials

Research the supplier's labor practices.

An organization is completing due diligence on a new supplier. The product and the manufacturing processes are environmentally friendly, and the cost allows the organization to make a profit. What further action will help the organization reach the sustainability sweet spot? -Gain the agreement of its employees. -Make sure the product meets operational needs. -Research the supplier's labor practices. -Inform its shareholders and the media.

By redefining stakeholders

An organization is looking to become an employer of choice and achieve increased success in its current markets. To accomplish this, there has been a greater desire to incorporate a CSR strategy. How best should HR support this change? -By achieving sustainability -By creating a code of conduct -By managing philanthropic initiatives -By redefining stakeholders

Employee volunteerism

An organization is moving from employees working in silos to a team environment. Which corporate social responsibility activity best supports this initiative? -Joining an internal committee -Employee volunteerism -Outside training -Team building

Environmental, economic, social

For an organization to be considered sustainable, what areas of practice are examined? -Environmental, social, ethics -People, profits, environment -Environmental, economic, social -Social, ethics, economics

GRI Sustainability Reporting Standards

HR has been charged with benchmarking the organization's sustainability performance against that of its global competitors. Which resource will best help HR accomplish this? -OECD Guidelines for Multinational Enterprises -GRI Sustainability Reporting Standards -United Nations Global Compact -ISO 26000

Volunteering

HR is looking for ways to increase the organization's brand while developing the employees. How can this be achieved? -Outsourcing -Job sharing -Job rotation -Volunteering

To create shared value

How are local cluster developments used in corporate social responsibility? -To create a sustainability sweet spot -To create shared value -To broaden the range of stakeholders -To move up the sustainability maturity curve

By gathering input from external stakeholders

How can HR best help an organization create value in corporate social responsibility? -By ensuring that business operations are generating results -By benchmarking against other local organizations -By gathering input from external stakeholders -By conducting a compliance audit on HR-related material

By evaluating the economic, social, and environmental effects of HR practices and policies

How can HR develop sustainability sweet spots? -By looking for ways to tie HR initiatives to the organization's overall vision, mission, and values -By evaluating the economic, social, and environmental effects of HR practices and policies -By shifting the burden of sustainability reporting and compliance to other organizational functions -By identifying and eliminating business practices that contribute to the organization's carbon footprint

By offering an all-encompassing view of how an organization should function

How do the three spheres of sustainability support an effective corporate social responsibility (CSR) program? -By offering an all-encompassing view of how an organization should function -By limiting the measures of success to financial, earth, air, and water -By allowing an organization to better focus on the community in which it operates -By incorporating a blend of local, regional, and global perspectives

Increases brand image as an ethical and sustainable organization

How does a corporate social responsibility (CSR) program impact employee retention? -Increases brand image as an ethical and sustainable organization -Improves employee compensation and benefits and morale -Keeps employees engaged in diversity initiatives -Allows employees to work on projects they are passionate about

Investing in the local cluster to strengthen local businesses and infrastructure

A small marketing company with a single location is looking to enhance organizational success while creating shared value. Where should it focus efforts in order to be most successful in that pursuit? -Investing in the local cluster to strengthen local businesses and infrastructure -Creating marketing materials supporting employees' philanthropic passions -Examining whether the marketing products it produces are beneficial to society at large -Creating advertising only for companies with a strong social responsibility code

Partner with other local businesses to drive sustainability initiatives in the local area.

A small printing organization is looking to increase its sustainability. The organization lacks the ability to allocate large amounts of financial resources to sustainability and does not have the clout to drive major changes with overseas business partners. Which option is the best way for the organization to increase sustainability? -Hire a new chief sustainability officer and allow the new hire to set the course for the organization. -Purchase only sustainably produced paper at a higher cost, passing the cost difference on to the customer. -Partner with other local businesses to drive sustainability initiatives in the local area. -Invest in the creation of online products and influence customers to avoid printing hard copies of its products.

Ethical Universalism

Concept that argues that there are fundamental ethical principles that apply across cultures and that global organizations must apply these principles when making decisions in a country, without regard to local ethical norms..

Creating Shared Value (CSV)

Michael Porter & Mark Kramer Business and society could be brought back together if business redefined the basic purpose as creating shared value --> generating economic value in a way that also produces value for society Making societal Impact WHILE making a lot of money

Values

On what is a code of conduct based? -Compliance -Guidelines -Values -Instructions

Concept that holds that there are no absolutes and everything is based on the situation

The term "cultural relativism" is best demonstrated by which of the following? -Concept that holds that there are no absolutes and everything is based on the situation -State of mind that focuses on narrow section of an issue versus considering a broader context -Philosophical position that, for every interaction with others, conditions exist that cause no other events -Evaluation of other cultures according to preconceptions originating in the customs of one's own culture

triple bottom line

has become the foundation for measurement and public reporting of CSR or sustainability performance by multinational corporations. That in turn is significant because it allows fair and consistent comparisons and evaluations of corporate sustainability performance.

sustainability

meeting the needs of the present without compromising the ability of future generations to meet their own needs

3 spheres of sustainability

people, planet, profit

ISO 26000 standards

provide guidance on how businesses and other organizations can be socially responsible. Although compliance is not required, compliance could improve relationships with suppliers, regulators, customers, and other stakeholders.

sustainability sweet spot

that place where an action can fulfill expectations in all three categories; people-planet-profit

sustainability stakeholders

- company executives - community, society, customers - shareholders and potential investors - creditors - regulators - standard setters

Growth (CSR value creation)

-Composition of business portfolio -Innovation and new products -Reaching new customers and markets

Returns on Capital (CSR value creation)

-Green sales and marketing -Sustainable value chains -Sustainable operations (e.g., reducing emissions, energy, waste, water)

Risk Management (CSR value creation)

-Operational risk management -Reputation management -Regulatory management

CSR Strategic Process

1. Executive Commitment 2. Assessment 3. Infrastructure Creation 4. Plan Implementation 5. Measurement, Reporting, and Evaluation 6. Reassessment and Revision

3 Areas of CSR Value Creation

1. Growth 2. Returns on Capital 3. Risk Management

societal values (3 ways to accomplish)

1. Reconceiving products and markets (e.g. is our product good for our customers?) 2. Redefining productivity in the value chain (cutting costs to benefit society) 3. Enabling local cluster development

Allow employees more voice in choosing the community involvement partner.

A CEO assigns employees to participate in fund-raising for a nonprofit school for students with learning disabilities. The company provides time off and covers the employees' expenses. Employee contributions and school accomplishments are communicated in newsletters and at annual meetings. How could this attempt at community involvement be improved? -Avoid turning the involvement into personal gain through publicizing it. -Allow employees more voice in choosing the community involvement partner. -Provide volunteers with additional training in community work. -Choose another community partner less involved in advocacy.

Conduct a social audit.

A company has had difficulty attracting and retaining employees. Exit interview data indicates that the company's lack of community engagement is a major factor. HR has been asked to identify ways to act on this feedback. Which of the following steps should HR take first? -Conduct a social audit. -Change organizational policies and procedures. -Draft a new leave policy. -Discuss new selection strategies.

Governance

A cosmetics company that denounces animal testing as a primary part of its branding was recently reported to be working with suppliers that routinely test on animals. Which aspect of the corporate social responsibility (CSR) strategy is misaligned? -Social -Environment -Compliance -Governance

Investing in better supply chain management tools to drive efficiency in the way the organization transports goods

An organization wants to simultaneously cut costs and benefit society. Which action would best achieve this goal? -Investing in an independent waste management program that sorts recyclable and compostable materials from waste generated -Removing all landscaping from its facilities in an effort to reduce water consumption -Investing in better supply chain management tools to drive efficiency in the way the organization transports goods -Purchasing 100% renewable energy at an increased cost over energy produced from traditional sources

Support employee participation with paid time off.

As part of a software company's corporate social responsibility (CSR) program, during non-working hours employees volunteer time and expertise helping low-income people build their own small businesses. Participation has been consistent but at a very low level. What recommendation should HR make to assist the company in increasing employee involvement? -Make company facilities available to participants. -Increase the program's marketing budget to encourage participation. -Realign the program's focus to mirror the organizational mission. -Support employee participation with paid time off.

By educating employees on ways to reduce their carbon footprint

As part of its brand, an employer espouses a commitment to green energy. How does a focus on sustainability support the employment brand's credibility? -By encouraging employees on ways to save the company money -By presenting an appearance of commitment to overshadow other activities -By placing a focus on awareness regardless of the bottom-line effect -By educating employees on ways to reduce their carbon footprint

Consulting with external stakeholders

As part of its strategic corporate social responsibility (CSR) assessment, the CSR initiative team has reviewed all organization systems and procedures, interviewed all upper management personnel, and surveyed all employees as to current attitudes, concerns, and goals. Which item will complete the assessment phase? -Creating the strategic infrastructure -Outlining the strategic implementation plan -Consulting with external stakeholders -Developing a sustainability scorecard

Infrastructure creation

At which point in the corporate social responsibility (CSR) strategic process should a global organization decide on using local leadership? -Assessment -Plan implementation -Executive commitment -Infrastructure creation

By working with leadership to ensure that bribery and corruption are not taking place

How is HR involved in social sustainability in relation to the triple bottom line? -By ensuring that all departments have a recycling program in place -By working with leadership to ensure that bribery and corruption are not taking place -By serving on a committee to discuss how the organization can increase business flexibility -By creating a policy stating that employees may rent only electric cars for business trips

The organization should adapt from OECD and ISO 26000 those elements that seem most consistent with their own strategic goals and values.

To develop its corporate social responsibility strategy, a global corporation is reviewing existing international principles and guidelines. They find that, while the OECD Guidelines and ISO 26000 are in general agreement on most issues, there are some significant differences. Which set of guidelines should the organization follow? -The organization should follow the OECD Guidelines, since the OECD is the more prestigious organization and their principles will carry more weight with outside stakeholders. -The organization should follow ISO 26000, because these standards were created by business people so they are more likely to be realistic and appropriate to a global corporation's needs. -The principles the organization adopts should be independently developed and implemented, with the OECD/ISO guidelines used as reference. -The organization should adapt from OECD and ISO 26000 those elements that seem most consistent with their own strategic goals and values.

Ethics is determined by local culture, laws, and practices.

What best demonstrates cultural relativism? -Cultures of a region must be reflected in the code of ethics for global enterprises. -Ethics is determined by local culture, laws, and practices. -There are universal norms. -There is no dominant culture in a multinational enterprise.

Fundamental principles apply in all cultures

What best demonstrates ethical universalism? -A well-developed ethical code should be applied to all countries. -Firms are required to follow a code of ethics. -Ethical behaviors may vary across cultures and countries. -Fundamental principles apply in all cultures.

It is easier to evaluate performance and progress against industry and global benchmarks.

What is the implication of an organization using the Global Reporting Initiative (GRI) Standards to create an enhanced and comprehensive sustainability strategy? -It will save money by enabling the use of GRI-provided templates, forms, and surveys. -The GRI Standards have been in place longer than the organization's own measures. -It is easier to evaluate performance and progress against industry and global benchmarks. -These metrics are approved by all national and global HR organizations.

CSR encompasses sustainability.

What is the relationship between corporate social responsibility (CSR) and sustainability? -CSR focuses on social concerns; sustainability focuses on environmental concerns. -CSR encompasses sustainability. -Sustainability focuses externally while CSR focuses internally. -Sustainability has completely replaced CSR.

Governance

What type of system does HR help develop that puts rules and processes in place for the organization to go by? -Compliance program -Code of conduct -Social audit -Governance

Proactive and ongoing interaction with all stakeholders

When an organization has a strong corporate social responsibility (CSR) orientation, which is it likely to see as a primary outcome? -Proactive and ongoing interaction with all stakeholders -Increased profitability for its shareholders -Retention of existing customers and referral of new customers -Greater employee productivity and performance

Changes to a headquarters location are weighed against the effects on stakeholders. (Sustainable workplace policies focus on long-term effects and the integrated needs of people, the environment, and economic needs)

Which best illustrates the principle of sustainability in the workplace? -Competitive business practices are aligned with local norms in each operating region. -The organization implements a flat structure, with few layers of decision-making authority. -Global HR policies are reviewed to make sure they comply with local laws and regulations. -Changes to a headquarters location are weighed against the effects on stakeholders.

How willing the participants are to report issues of noncompliance

Which can best be used in the evaluation of the outcomes of a compliance program? -What knowledge participants retain after completion of the program -How many people attended the compliance program -How often the compliance program is offered -How willing the participants are to report issues of noncompliance

Set priorities and objectives.

Which is a key task in the implementation stage in CSR strategy? -Define the extent and nature of HR's leadership role. -Set priorities and objectives. -Measure and evaluate initial results. -Establish a guiding sustainability department.

Strengthening the company's brand and reputation

Which is a primary business benefit associated with implementation of an employee volunteerism program? -Enhancing sense of camaraderie and teamwork -Strengthening the company's brand and reputation -Developing opportunities for employee recognition -Expanding skill sets for employees who participate

Know the provenance of every component of every product.

Which is the best first step a retailer should take to make sure that its products have been ethically produced? -Make sure that suppliers comply with local labor laws. -Develop community-based programs to improve living conditions for all. -Publish a code of ethics that includes the behavior of suppliers. -Know the provenance of every component of every product.

To create a foundation to make ethical decisions

Which is the most important reason for a global organization to have a values-based corporate social responsibility (CSR) strategy? -To build a better corporate brand -To be in compliance for local legislation -To create a foundation to make ethical decisions -To avoid business scandals

It serves as the foundation for measurement and reporting of sustainability performance.

Which is the most significant impact of the triple bottom line? -It serves as the foundation for measurement and reporting of sustainability performance. -It enables governments to quantify sustainability efforts through measurement of relevant data. -It enables organizations that are less effective financially to still claim success. -It provides a universally accepted definition of corporate citizenship for all organizations.

Human rights

Which key area must be included in a multinational company's social audit? -Human rights -Company values -Philanthropic alliances -Interpersonal relations

An organization aligns its value with CSR principles, promoting this identification to stakeholders.

Which organization has evolved farthest on the CSR maturity curve? -An organization reports sustainability results to fulfill local country mandates for reduced carbon emissions. -Product sustainability claims are included in employer branding used in recruiting. -An organization aligns its value with CSR principles, promoting this identification to stakeholders. -Objectives related to CSR are included in performance management at all levels.

Providing an incentive for opting out of paper statements

Which strategic initiative is an example of creating shared value? -Providing an incentive for opting out of paper statements -Running a promotion available only to new customers -Decreasing a tuition reimbursement benefit -Increasing fees for the use of an online self-service portal

Governance

Which term describes a system of rules and processes put in place to ensure adherence to laws, rules, norms, and social codes of conduct? -Rule of law -Compliance -Governance -Ethics

Ethics dictates behavioral guidelines for an organization.

Why is ethics an intrinsic part of a corporate social responsibility program? -Ethics allows for the adherence to the letter of the law. -Ethics dictates behavioral guidelines for an organization. -Ethics increases external stakeholders' influence. -Ethics is based on laws and regulations.

Producing better products supports the growth of business.

Why should a firm require its supply chain to mirror its code of conduct? -Public image is critical to the suppliers and vendors. -It is a contractual requirement for an organization's vendors. -Cultural imperialism is a deciding factor in business. -Producing better products supports the growth of business.

Local government officials may be influenced by organizational efforts.

Why would HR direct an organization to be involved in philanthropy efforts at the local level instead of global? -This reduces the appearance that the organization is taking advantage of the cause. -Local government officials may be influenced by organizational efforts. -Favorite programs are less likely to be picked. -Risk to the organization is reduced by participating in little-known causes.

Global Reporting Initiative Sustainability Reporting Standards (GRI Standards)

a universally accepted standard for reporting the results of an organization's sustainability programs. They include: economic, environmental, and social standards

compliance

being in accordance with all national, federal, regional, or local laws, regulations, and government authority requirements for all the locations in which the organization operates. This often means fulfilling technical requirements as set forth by law.

Organization for Economic Cooperation and Development (OECD)

created the Guidelines for Multinational Enterprises relating to corporate governance in 1976; they cover the following topics: disclosure, human rights, employment and industrial relations, environment, combating bribery, consumer interests, science and technology, competition, taxation

cultural relativism

the practice of judging a culture by its own standards

governance

the system of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct.