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Corporate Social Responsibility Flashcards

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1
Q

Technological forces have had which critical effect on today’s corporate social responsibility (CSR) practices.

A

Using analytical capabilities has made CSR impacts more demonstrable.

Data mining and analytics capabilities have made CSR factors more readily measurable and their impacts more demonstrable and understandable. That in turn has increased accountability, helped shape regulatory requirements, and, where measurable performance results are positive, given organizations a powerful strategic tool.

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2
Q

Which traditional HR area of focus is affected by employees being given opportunities to act on their interests in promoting social and environmental responsibility espoused by the organization’s mission and values?

  1. Recruiting
  2. Accountability and measurement
  3. Engagement
  4. Employee contract
A

Engagement
Engagement is affected, either positively or negatively, by whether employees are given opportunities to act on their interests in promoting social and environmental responsibility espoused by the organization’s mission and values.

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3
Q

Leadership has requested HR to design a program to allow employees to telecommute. How will this advance the organization’s sustainability?

  1. By reducing organization’s carbon footprint
  2. By allowing the organization to apply for ISO 26000
  3. By reducing costs for the organization
  4. By allowing the organization to apply for SA8000
A

By reducing organization’s carbon footprint

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4
Q

How does a corporate social responsibility (CSR) program impact employee retention?

  1. Allows employees to work on projects they are passionate about
  2. Increases brand image as an ethical and sustainable organization
  3. Improves employee compensation and benefits and morale
  4. Keeps employees engaged in diversity initiatives
A

Increases brand image as an ethical and sustainable organization

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5
Q

What is a Benefit Corporation, or B Corp?

  1. Outsourcing partner specializing in design of total rewards programs
  2. International certification of corporate sustainability achievement
  3. Third-party participant in organization’s value chain
  4. Special compensation classification for nonprofit organizations
A

International certification of corporate sustainability achievement

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6
Q

Benefit Corporation, or B Corp

A

The nonprofit B Lab uses detailed measures of social and environmental performance, accountability, and transparency to assess an organization’s maturity on the corporate sustainability curve. An organization that has transformed itself as a result of a commitment to CSR principles receives certification as a Benefit Corporation (B Corp).

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7
Q

Which is one of the negative social effects of global technological forces?

  1. Increasing ethnocentrism
  2. Complexity of privacy issues
  3. Economic imperialism by developed economies
  4. Decreasing foreign investment in developing economies
A

Complexity of privacy issues

Because of technology and integration of information, privacy issues have become much more ubiquitous and complex. Privacy issues range from employer-employee privacy to compliance questions raised by government requests for customer data from corporations. In response to the prevalence of issues, many countries have instituted privacy laws.

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8
Q

What is the relationship between corporate social responsibility (CSR) and sustainability?

CSR focuses on social concerns; sustainability focuses on environmental concerns.

Sustainability focuses externally while CSR focuses internally.

Sustainability has completely replaced CSR.

CSR encompasses sustainability.

A

CSR encompasses sustainability.
The definition of CSR has broadened from the traditional areas of ethics, governance, corporate philanthropy, and volunteerism to include sustainability.

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9
Q

What is Corporate Social Responsibility (CSR)?

A

CSR encompasses the varying ways an organization can create value beyond traditional profit measures, impacting nonmonetary assets like brand reputation and employee morale.

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10
Q

What are the two major changes in CSR in recent decades?

A
  1. Expansion of CSR to include sustainability, considering a broader range of stakeholders. 2. CSR has moved from the corporate periphery to a strategic, central role.
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11
Q

PESTLE Forces Shaping CSR Efforts

A

Technology

Communications are now global, continuous, and instantaneous.

Advances in data mining and collection have enhanced measurement and understanding of CSR issues.

Privacy and work/life balance issues are more widespread and complex.

Environmental concerns

Climate change has resulted in more government regulations and requirements.

Sustainability is now central to corporate branding.

There are new innovation opportunities, especially in relation to energy efficiency.

Economic pressures

Energy efficiencies lower costs, encouraging sustainability. (They can also result in competitive advantage and publicity/reputational boosts.)

CSR has become an important way to attract top talent when salary and benefits packages face constraints.

Economic pressures can, however, limit organizational enthusiasm for CSR efforts.

Sociopolitical forces

Civil and social rights movements have far greater ability to gain traction, attention, and action.

Changing public attitudes toward certain social issues will shift organizational CSR emphasis and priorities.

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12
Q

What are some benefits of CSR identified by the SHRM Corporate Social Responsibility and Sustainability Special Expertise Panel?

A

A: Compete for talent, scalable solutions, increased employer brand, and expanded global reach.

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13
Q

How has CSR moved up the maturity curve?

A

From a tactical or defensive approach to a strategic, fully integrated approach aligned with organizational mission and core strategies.

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14
Q

What is an example of strategically aligned CSR?

A

Employee volunteer efforts aligned with an organization’s sustainability goals.

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15
Q

What are some environmental concerns impacting CSR?

A

Climate change, sustainability as a brand component, and new opportunities in energy efficiency.

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16
Q

How do economic pressures influence CSR?

A

They can both encourage sustainability (through cost savings) and limit enthusiasm for CSR (during financial constraints).

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17
Q

What is a key first step in developing a CSR strategy?

A

Conducting preparatory research into existing benchmarks and international frameworks.

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18
Q

What are the three phases of the Corporate Social Responsibility Maturity Curve?

A
  1. Compliance (defensive approach).
  2. Integration (CSR integrated into business).
  3. Transformation (CSR redefines brand and strategy).
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19
Q

What characterizes the Compliance phase of the CSR Maturity Curve?

A

CSR is seen as a cost of doing business, often a tactical response to regulation or negative publicity.

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20
Q

What is a B Corp certification?

A

A certification given to organizations meeting high standards of social and environmental performance, accountability, and transparency.

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21
Q

What is a critical issue for HR regarding the CSR Maturity Curve?

A

Determining the organization’s current position on the curve and planning steps to advance to the next phase.

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22
Q

What are the two major changes in CSR in recent decades?

A
  1. Expansion of CSR to include sustainability, considering a broader range of stakeholders. 2. CSR has moved from the corporate periphery to a strategic, central role.
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23
Q

What role can HR play in Corporate Strategy for CSR?

A

A: HR can facilitate stakeholder involvement in strategic planning and guide employee behaviors in strategy execution.

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24
Q

How can HR support corporate strategy in CSR?

A

By involving stakeholders in strategy creation and guiding employee behaviors in implementing CSR strategies.

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25
What is HR’s role in improving organization effectiveness for CSR?
HR helps decide on CSR structures, such as separate departments or external consultants, matching them to the organization's culture.
26
What is the difference between compliance and ethics?
A: Compliance is adhering to laws and regulations, while ethics is following an organization’s values and moral principles.
27
Why is educating employees about ethical decision-making important?
It prepares them for situations not covered by laws, reducing risks to the organization’s reputation and stakeholder relationships.
28
What are the three SHRM competencies related to CSR, ethics, and compliance?
Leadership & Navigation, Business Acumen, and Global Mindset.
29
What is governance in the context of CSR?
Governance is a system of rules and processes ensuring compliance with laws, ethical norms, and social codes.
30
What defines good governance?
Transparency, accountability, and ethical behavior by the board of directors and executives.
31
What can poor governance lead to?
Consumer boycotts, shareholder actions, and employee recruitment/retention issues.
32
What is ethical universalism?
A: The idea that there are universal ethical standards that apply across all cultures.
33
What is cultural relativism in ethics?
A: The belief that ethics should be based on cultural context and may vary between regions.
34
Why are ethics in the supply chain important?
A: They ensure supplier practices align with the organization’s ethical standards, protecting brand reputation and product quality.
35
How should organizations handle child labor ethically in their supply chain?
By balancing the need to protect children with supporting impoverished families responsibly.
36
What is the benefit of ethical supply chain management?
Better products, satisfied customers, and sustainable working communities.
37
What is the impact of sustainability on supply chain metrics?
It shifts the focus from traditional metrics to sustainability measures across the supply chain.
38
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. Publish a code of ethics that includes the behavior of suppliers. Develop community-based programs to improve living conditions for all. Know the provenance of every component of every product.
Know the provenance of every component of every product. The first step is to know exactly where every "ingredient" in the products it sells comes from, not just what happens at final assembly but in procurement and manufacture of raw ingredients or components. The firm can then assess whether conditions at every stage in the supply chain are truly ethical.
39
Why is ethics an intrinsic part of a corporate social responsibility program? Ethics is based on laws and regulations. Ethics increases external stakeholders’ influence. Ethics allows for the adherence to the letter of the law. Ethics dictates behavioral guidelines for an organization.
Ethics dictates behavioral guidelines for an organization. Ethics is a set of behavioral guidelines an organization expects all to follow. Compliance is based on laws and regulations and allows for adherence to the letter of the law.
40
Which is the most important reason for a global organization to have a values-based corporate social responsibility (CSR) strategy? To avoid business scandals To be in compliance for local legislation To build a better corporate brand To create a foundation to make ethical decisions
To create a foundation to make ethical decisions The values established create the foundation for ethical decisions. Avoiding business scandal, being in compliance, and building a better brand can also be considered reasons, but the values-based CSR strategy is the key to all decisions.
41
Which term describes a system of rules and processes put in place to ensure compliance with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct? Rule of law Governance Compliance Ethics
Governance
42
Governance
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. Good governance is the outcome of a thoughtful assessment of an enterprise’s legal, ethical, and civic obligations to the communities it serves and the development of systems that support fulfillment of these obligations.
43
What is the difference between compliance and ethics?
Compliance is adhering to laws and regulations, while ethics is following an organization’s values and moral principles.
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Why is educating employees about ethical decision-making important?
A: It prepares them for situations not covered by laws, reducing risks to the organization’s reputation and stakeholder relationships.
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What are the three SHRM competencies related to CSR, ethics, and compliance?
Leadership & Navigation, Business Acumen, and Global Mindset.
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How did the HR manager in the SHRM example demonstrate ethical leadership?
A: By insisting on fair pay, reasonable work hours, and safe conditions for workers in a new country, even with little local oversight.
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What is governance in the context of CSR?
Governance is a system of rules and processes ensuring compliance with laws, ethical norms, and social codes.
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What defines good governance?
Transparency, accountability, and ethical behavior by the board of directors and executives.
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What can poor governance lead to?
A: Consumer boycotts, shareholder actions, and employee recruitment/retention issues.
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What is ethical universalism?
The idea that there are universal ethical standards that apply across all cultures.
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What is cultural relativism in ethics?
The idea that there are universal ethical standards that apply across all cultures
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Why are ethics in the supply chain important?
They ensure supplier practices align with the organization’s ethical standards, protecting brand reputation and product quality.
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What are the focus areas for supply chain ethics?
Workplace safety, child labor, and sustainability.
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How should organizations handle child labor ethically in their supply chain?
By balancing the need to protect children with supporting impoverished families responsibly.
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What is the benefit of ethical supply chain management?
Better products, satisfied customers, and sustainable working communities.
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How did a British retailer enhance supply chain ethics?
By knowing product provenance, setting workplace standards, collaborating with NGOs, and supporting suppliers in meeting ethical standards.
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71
What is the impact of sustainability on supply chain metrics?
It shifts the focus from traditional metrics to sustainability measures across the supply chain.
72
Which action shows how HR can be 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
By working with leadership to ensure that bribery and corruption are not taking place Bribery and corruption are social sustainability measures. Recycling and transportation are part of environmental sustainability, and business flexibility deals with economic sustainability.
73
HR has been asked to identify ways to improve recruitment and retention efforts through community engagement. Which step should HR take first?
Draft a new leave policy. Discuss different candidate selection strategies. Change organizational policies and procedures. Conduct a social audit.
74
HR has been asked to identify ways to improve recruitment and retention efforts through community engagement. Which step should HR take first? Draft a new leave policy. Discuss different candidate selection strategies. Change organizational policies and procedures. Conduct a social audit.
Conduct a social audit. A social audit might help the employer identify ways in which it could improve its employer brand as a sustainable and socially responsible organization. Changing the type of employees being recruited would probably limit the talent pool available to the employer. Drafting new policies and procedures on candidate selection without an audit would be costly and risky. A new leave policy might appeal to some employees but may not be effective in reducing turnover or increasing retention.
75
How has the sustainability movement changed organizations’ relations with their stakeholders? Customers are now considered as stakeholders in addition to shareholders, and there is more focus more on providing them value. A broader range of stakeholders is now considered, allowing for a more active role in shaping policies and goals. The focus has shifted from internal to external stakeholders, and stakeholder value is defined more broadly. Organizations focus on fewer key stakeholders but give those few more input on strategic decisions.
A broader range of stakeholders is now considered, allowing for a more active role in shaping policies and goals. Sustainability has expanded both who the significant stakeholders are and how the organization interacts with them. Instead of just those with a direct financial stake in the organization, stakeholders now also include those affecting or affected by an organization’s social and environmental value. Sustainability also expands the ways in which the organization interacts with its stakeholders, who now play a more active role in helping it define and implement everything from individual projects to larger corporate social responsibility strategy and goals.
76
What is meant by the sustainability sweet spot? The ability of an initiative to improve an organization’s brand as an employer of choice The overlapping area of the triple bottom line perspectives The point at which management, employees, and the community agree on goals The point at which a sustainable initiative’s investment is surpassed by its economic benefits
The overlapping area of the triple bottom line perspectives The sustainability sweet spot includes actions that satisfy all three of the needs in the triple bottom line: benefits to the environment (or planet); employees, customers, or neighbors (people); and the organization’s financial health (profit).
77
Which best illustrates the principle of sustainability in the workplace? Competitive business practices are aligned with local norms in each operating region. 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. The organization implements a flat structure, with few layers of decision-making authority.
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. Including a careful assessment of a change that would affect a large number of employees and the surrounding communities is sustainable.
78
How are local cluster developments used in corporate social responsibility? To broaden the range of stakeholders To create shared value To move up the sustainability maturity curve To create a sustainability sweet spot
To create shared value Porter and Kramer argue that the success of most organizations is dependent on a cluster of other organizations (related businesses, suppliers, schools) and infrastructure (roads, communication networks, water and energy supply). Shared value results when organizations build and enhance the local cluster and improve the conditions of those operating in it, benefiting the organization and its community.
79
Which is the most significant impact of the triple bottom line? It enables governments to quantify sustainability efforts through measurement of relevant data. It provides a universally accepted definition of corporate citizenship for all organizations. It serves as the foundation for measurement and reporting of sustainability performance. It enables organizations that are less effective financially to still claim success.
It serves as the foundation for measurement and reporting of sustainability performance. The 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.
80
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 managing philanthropic initiatives By redefining stakeholders By achieving sustainability By creating a code of conduct
By redefining stakeholders HRM must engage both internal and external stakeholders to identify ways in which the organization can contribute to the social and environmental vitality of those most affected by the company’s actions.
81
What is the difference between compliance and ethics?
Compliance is adhering to laws and regulations, while ethics is following an organization’s values and moral principles.
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Q: What is the difference between compliance and ethics?
A: Compliance is adhering to laws and regulations, while ethics is following an organization’s values and moral principles.
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Q: Why is educating employees about ethical decision-making important?
A: It prepares them for situations not covered by laws, reducing risks to the organization’s reputation and stakeholder relationships.
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Q: What are the three SHRM competencies related to CSR, ethics, and compliance?
A: Leadership & Navigation, Business Acumen, and Global Mindset.
89
90
Q: How did the HR manager in the SHRM example demonstrate ethical leadership?
A: By insisting on fair pay, reasonable work hours, and safe conditions for workers in a new country, even with little local oversight.
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92
Q: What is governance in the context of CSR?
A: Governance is a system of rules and processes ensuring compliance with laws, ethical norms, and social codes.
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Q: What defines good governance?
A: Transparency, accountability, and ethical behavior by the board of directors and executives.
95
96
Q: What can poor governance lead to?
A: Consumer boycotts, shareholder actions, and employee recruitment/retention issues.
97
98
Q: What is ethical universalism?
A: The idea that there are universal ethical standards that apply across all cultures.
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100
Q: What is cultural relativism in ethics?
A: The belief that ethics should be based on cultural context and may vary between regions.
101
102
Q: Why are ethics in the supply chain important?
A: They ensure supplier practices align with the organization’s ethical standards, protecting brand reputation and product quality.
103
104
Q: What are the focus areas for supply chain ethics?
A: Workplace safety, child labor, and sustainability.
105
106
Q: How should organizations handle child labor ethically in their supply chain?
A: By balancing the need to protect children with supporting impoverished families responsibly.
107
108
Q: What is the benefit of ethical supply chain management?
A: Better products, satisfied customers, and sustainable working communities.
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110
Q: How did a British retailer enhance supply chain ethics?
A: By knowing product provenance, setting workplace standards, collaborating with NGOs, and supporting suppliers in meeting ethical standards.
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Q: What is the impact of sustainability on supply chain metrics?
A: It shifts the focus from traditional metrics to sustainability measures across the supply chain.
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Q: What is the purpose of a CSR strategy?
A: To translate organizational goals into specific CSR objectives and initiatives.
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Q: What are the six steps in the CSR strategic process?
A: 1. Executive commitment, 2. Assessment, 3. Infrastructure creation, 4. Plan implementation, 5. Measurement, reporting, and evaluation, 6. Reassessment and revision.
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Q: Why is executive commitment important in CSR?
A: It secures top-level support by demonstrating CSR's business value.
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Q: What is involved in the assessment step of CSR strategy?
A: Reviewing current systems and gathering input from stakeholders.
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Q: What is the role of HR in CSR strategy implementation?
A: HR supports ethical management, social engagement, and ethical supply chain management.
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Q: What is philanthropy in CSR?
A: Corporate giving through donations, grants, partnerships, or community services.
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Q: What is employee volunteerism in CSR?
A: Employees engaging in social or community service activities supported by the organization.
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Q: What are the benefits of employee volunteerism?
A: Individual recognition, teamwork skills, stronger corporate culture, and enhanced brand reputation.
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Q: What is the difference between global and local CSR approaches?
A: Global focuses on standardization, while local adapts to local market needs.
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Q: What are the advantages of a globally integrated CSR program?
A: Lower costs, consistent branding, and shared learning.
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134
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 Outside training Employee volunteerism Team building
Employee volunteerism All activities listed will help with employees learning to work within a group, but employee volunteerism is the only one that can be part of a corporate social responsibility activity.
135
An organization gains many benefits from its employees volunteering in the community. How can volunteering help the employees? By increasing branding By building skills By improving the company culture By providing time off
By building skills Volunteering can allow employees to learn new skills while helping in the community.
136
Which key task should an HR leader focus on first in implementing a corporate social responsibility strategy? Measuring and evaluating initial results. Establishing a sustainability department. Setting priorities and objectives. Identifying the leadership roles for leading the initiative.
Setting priorities and objectives. The key tasks at the implementation stage are to set strategy and priorities and objectives (including how intermediate tactical steps will lead to long-term objectives) and to implement the action plan. Establishing a sustainability department is optimal, but is not a key task. Measuring and evaluating initial results is better following the implementation. Identifying leadership roles is important, but those roles better fit once the priorities and objectives have been identified.
137
HR has determined that it is necessary to implement a corporate social responsibility (CSR) strategy. Leadership has already committed to the idea. What is the next step? Implementing Reporting Employee buy-in Assessment
Assessment
138
Which should be the first step in creating an organization’s philanthropic strategy as part of its corporate social responsibility (CSR) strategy? Creating a policy for employee involvement resulting in employee satisfaction Aligning philanthropic activities with strategy and values Identifying worthy social programs for employees to participate in Establishing contacts with local agencies to provide support to
Aligning philanthropic activities with strategy and values
139
Steps for creating a philanthropic compent of a CSR Strategy
1. align its focus with the organization’s own business strategy, goals, and values. 2. The identification of projects can proceed from this alignment. 3. The projects can be social as well as environmental and can be directed internally (e.g., reducing waste) as well as externally (e.g., tutoring students). 4. Networking with external contacts and policy creation will follow the initial alignment of the organization’s and CSR strategy’s goals.
140
An organization is interested in beginning the process of creating an ethical environment. Who has the most impact on the success of this process? Organization’s employees Organization’s leaders Local community Organization’s customers or constituents
Organization’s leaders The process of creating an ethical environment must begin with the organization’s leaders. It must receive continuous reinforcement from leadership at all levels.

SHRM CP (2 decks)

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