Corporate Social Responsibility

Question 1

Encompasses the varying ways an organization can create value, looking beyond traditional profit measures of revenue and expenses.

Answer 1

Corporate Social Responsibility (CSR)

Question 2

Applies the 3Ps principle of sustainability (people, planet, profits), arguing that the environmental and social costs and benefits generated by an organization should be considered as well.

Answer 2

Triple Bottom Line

Question 3

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

Answer 3

CSR Strategic Process

Question 4

Defined by SHRM Foundation in “HRM’s Role in Corporate Social and Environmental Sustainability” as 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.

Answer 4

Compliance

Question 5

A 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.

Answer 5

Ethics

Question 6

Encompasses all the direct and indirect remuneration approaches that employers use to attract, recognize, and retain workers.

Answer 6

Total Rewards

Question 7

Plan or method implemented by an organization that provides monetary, benefits-in-kind, and developmental rewards to employees who achieve specific business goals.

Answer 7

Total Rewards Strategy

Question 8

Tangible payments or services provided to broad groups of employees to cover issues such as retirement, health care, sick pay/disability schemes, life insurance, and paid time off, in addition to those required by law.

Answer 8

Benefits

Question 9

Refers to all other financial returns (beyond any tangible benefits payments or services), including salary and allowances.

Answer 9

Compensation

Question 10

Compensation provided on an individual basis in the form of goods or services.

Answer 10

Perquisites

Question 11

Payments in return for the achievement of specific, time-limited, targeted objectives. Often they are calculated as a percentage of base salary.

Answer 11

Incentives/Premiums

Question 12

Short (but broad) statement documenting the organization’s guiding principles and core values about employee compensation.

Answer 12

Compensation Philosophy

Question 13

One or more HR professionals evaluate the current compensation and benefits systems and the effectiveness of those systems in helping the organization reach its goals. (Part 1 of Total Rewards Strategy Process)

Answer 13

Assessment

Question 14

A senior management team made up of HR and department representatives identifies and analyzes various reward strategies to determine what would apply best in their workplace. (Part 2 of Total Rewards Strategy Process)

Answer 14

Design

Question 15

The HR department implements the new rewards system and circulates materials that communicate the new strategy to employees. (Part 3 of Total Rewards Strategy Process)

Answer 15

Implementation

Question 16

How well does the system achieve its goals - cost-effectiveness, affordability, compliance with laws and statutory regulations, compatibility with mission and strategy, match with the organizational culture, appropriateness for the workforce, and equity. (Part 4 of Total Rewards Strategy Process)

Answer 16

Evaluation

Question 17

Argues that there are fundamental 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.

Answer 17

Ethical Universalism

Question 18

Argues that ethical behaviors is determined by local culture, laws, and business practices.

Answer 18

Cultural Universalism

Question 19

A type of liability insurance covering an organization against claims by employees, former employees, and employment candidates alleging that their legal rights in the employment relationship have been violated.

Answer 19

Employment Practices Liability Insurance (EPLI)

Question 20

HR professionals model ethical conduct and the organization’s values in all their actions. They strive to be ethical and admit their shortcomings.

Answer 20

Personal Integrity

Question 21

HR professionals demonstrate awareness of and commitment to ethics in their work.

Answer 21

Professional Integrity

Question 22

The group can brainstorm strengths, weaknesses, opportunities, and threats and agree on a numerical value for each.

Answer 22

SWOT Analysis

Question 23

The team determines critical characteristics of a successful decision (e.g., ability to meet project requirements, likelihood of success, least chance of causing secondary risks). A matrix is used to score each alternative and compare results.

Answer 23

Multi-Criteria Decision Analysis (MCDA)

Question 24

Group discussion is critical to identifying all relevant costs and benefits.

Answer 24

Cost-Benefit Analysis (CBA)

Question 25

This tool was designed to analyze the forces favoring and opposing a particular change. The group identifies and weights factors that could influence an outcome in either a negative or positive manner according to their possible impact. The group then uses factors to score different opportunities. They agree to pursue those showing favorability for change and avoid initiatives that face very strong resistance.

Answer 25

Force-Field Analysis

Question 26

Supports trust in relationships with stakeholders, who could be business associates, investors, governments and communities, and employees.

Answer 26

Transparency

Question 27

Situations in which a person or organization may benefit from undue influence due to involvement in outside activities, relationships, or investments that conflict with or have impact on the employment relationship or its outcomes.

Answer 27

Conflicts of Interest

Question 28

The exchange of anything of value to gain greater influence or preference.

Answer 28

Bribery

Question 29

The treatment of personal information that has been disclosed to another person (e.g., one’s doctor, lawyer, or financial advisor) or organization (e.g., one’s employer or a hospital).

Answer 29

Confidentiality

Question 30

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.

Answer 30

Governance

Question 31

Exists when one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting loss.

Answer 31

Moral Hazard

Question 32

An economic concept often associated with moral hazard in employment.

Answer 32

Principal-Agent Problem (Agency Dilemma)

Question 33

Occurs when employees feel that performance or job differences result in corresponding differences in rewards that are fair.

Answer 33

Internal Equity

Question 34

Involves comparing an organization’s compensation levels and benefits to those of other organizations that are in the same labor market and that compete for the same employees.

Answer 34

External Equity