Corporate Social Responsibility Flashcards
Compliance
State of being in accordance with all national, federal,
regional, and/or local laws, regulations, and/or other
government authority requirements applicable to the
places in which an organization operates.
Corporate social responsibility (CSR)
Varying ways an organization can create value,
looking beyond traditional profit measures of revenue
and expenses; includes such areas as philanthropy,
volunteerism, corporate-sponsored community programs,
social change, sustainability, corporate governance,
employee rights, and workplace safety
Ethics
Set of behavioral guidelines that an organization expects
all of its directors, managers, and employees to follow to
ensure appropriate moral and ethical business standards.
Governance
System of rules and processes set up by an organization
to ensure its compliance with local and international
laws, accounting rules, ethical norms, internal codes of
conduct, and other standards.
Sustainability
Practice of purchasing and using resources wisely by
balancing economic, social, and environmental concerns,
with the goal of securing the interests of present and
future generations.
Triple bottom line
Economic, social, and environmental impact metrics used
to determine an organization’s success.
uses the 3 P’s (People, profits, planets)
Maintains that companies should commit to focusing as much on social environment concerns as they do on profits
How have corporate social responsibility strategies evolved in corporations?
- The strategies are tied to the organization’s net earnings
- Values and goals have been redefined based on CSR principles
- The strategies are intended to create visibility for the organization
- The involvement of less-senior employees is required
Values and goals have been redefined based on CSR principles
In many corporations, cSR principles have matured as a strategic approach that is fully integrated into an organization’s mission and core business strategies
Which is the most important reason for a global organization to have a values-based CSR strategy?
- To create a foundation to make ethical decisions
*To be in compliance for local legislation - To avoid business scandals
- To build a better corporate brand
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.
An organization gains many benefits from its employees volunteering in the community. How can volunteering help the employees?
- By building skills
- By providing time off
- By improving the company culture
- By increasing branding
By building skills
Volunteering can allow employees to learn new skills while helping in the community.
An organization is moving from employees working in silos to a team environment. Which corporate social responsibility activity best supports this initiative?
Outside training
Employee volunteerism
Team building
Joining an internal committee
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 CSR activity.
Leadership has requested HR to design a program to allow employees to telecommute. How will this advance the organization’s sustainability?
By allowing the organization to apply for ISO 26000
By reducing organization’s carbon footprint
By reducing costs for the organization
By allowing the organization to apply for SA8000
By reducing organization’s carbon footprint
There are seven areas in which HR has a role in when advancing sustainability. How people work is one of those areas; it can affect the organization’s carbon footprint.
What are the 7 areas in which HR has a role in when advancing sustainability?
Employee contract - must be woven into the corporate culture
Recruiting - need to incorporate sustainability profile into employee value proposition
Brand
Engagements - give employees opportunities to act on their interest in promoting social and environmental responsibility
How people work
Accountability and measurement - CSR incorporated into KPIs
Training and leadership development - sustainability will need to be woven into all training and leadership development curricula
What is meant by the sustainability sweet spot?
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 organizatin’s financial health (profit)
What are the three spheres of sustainability?
Planet (environmental)
Profits (economic)
People (Social)
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 avoid business scandals
To be in compliance for local legislation
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.
How have corporate social responsibility (CSR) strategies evolved in corporations?
The strategies are intended to create visibility for the organization.
The involvement of less-senior employees is required.
The strategies are tied to the organization’s net earnings.
Values and goals have been redefined based on CSR principles.
Values and goals have been redefined based on CSR principles
In many corporations, CSR principles have matured as a strategic approach that is fully integrated into an organizatin’s mission and core business strategies.
What are the steps in the CSR Maturity Curve
Compliance - This is a defensive posture - Social responsibility is seen as a cost of doing business - a tactical response to regulatory requirements or negative publicity
Integration - CSR is integrated into the regular functioning of the business
Transformation - These organizations have redefined themselves, their brand to reflect a commitment to CSR
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?
Governance
Social
Environment
Compliance
Governance
An organization with good governance is transparent and accountable at each level and function. By buying from suppliers that test on animals, the organization is intentionally deceiving consumers and being opaque rather than transparent.
What is the relationship between corporate social responsibility (CSR) and sustainability?
Sustainability focuses externally while CSR focuses internally.
CSR encompasses sustainability.
Sustainability has completely replaced CSR.
CSR focuses on social concerns; sustainability focuses on environmental concerns.
CSR encompasses sustainability
The definition of CSR has broadened from the traditional areas of ethics, governance, corporate philanthropy, and volunteerism to include sustainability.
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?
United Nations Global Compact
ISO 26000
GRI Sustainability Reporting Standards
OECD Guidelines for Multinational Enterprises
GRI Sustainability reporting standards
The GRI Sustainability Reporting Standards enable meaningful and consistent comparisons of organizations’ sustainability performance.
Which is a primary business benefit associated with implementation of an employee volunteerism program?
Enhancing sense of camaraderie and teamwork
Expanding skill sets for employees who participate
Developing opportunities for employee recognition
Strengthening the company’s brand and reputation
Strengthening the company’s brand and reputation
While all of these may occur as a result of successfully implementing an employee voluteerism program, they are not all considered business benefits. Strengthening the company’s brand and reputation is a business benefit. The others are benefits to the employees and/or the work environment.
What are the four benefits of an employee volunteerism program?
- Individual benefits - which include the recognition employees receive in the skills they gain
- Team Benefits - teamwork skills in the sense of camaraderie employees gain
- Organizational benefits - which includes strengthening of the corporate culture
- Business benefits - which include an enhanced corporate reputation and strengthening of the brand.
What type of system does HR help develop that puts rules and processes in place for the organization to go by?
Code of conduct
Social audit
Compliance program
Governance
Governance
Codes of conduct and compliance programs are part of governance. A social audit is something you would perform to determine if you are in compliance.
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?
Increase the program’s marketing budget to encourage participation.
Realign the program’s focus to mirror the organizational mission.
Make company facilities available to participants.
Support employee participation with paid time off.
SUpport employee participation with PTO
An organization’s CSR programs are more effective in involving employees if the organization actively supports employee involvement, e.g., allowing time off, paying related expenses. Increasing awareness through publicizing the program without actively facilitating employees’ participation will probably be ineffective. This program is well aligned with the company’s focus. Using company facilities may be problematic.
Why is ethics an intrinsic part of a corporate social responsibility program?
Ethics is based on laws and regulations.
Ethics dictates behavioral guidelines for an organization.
Ethics increases external stakeholders’ influence.
Ethics allows for the adherence to the letter of the law.
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.
Which approach best helps a company achieve its commitment to develop a community volunteerism program as part of a sustainability strategy?
Mandate a community volunteer activity for each department to take on.
Survey employees to gather feedback on community volunteer interests.
Ask applicants about their community volunteer interests during the interview.
Assign a project to an HR specialist to research what other companies are doing.
Survey employees to gather feedback on community volunteer interests.
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.
