Corporate Social Responsibility Flashcards
Encompasses the varying ways an organization can create value, looking beyond traditional profit measures of revenue and expenses.
Corporate Social Responsibility (CSR)
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.
Triple Bottom Line
- Executive Commitment
- Assessment
- Infrastructure Creation
- Plan Implementation
- Measurement, Reporting, and Evaluation
- Reassessment and Revision
CSR Strategic Process
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.
Compliance
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.
Ethics
Encompasses all the direct and indirect remuneration approaches that employers use to attract, recognize, and retain workers.
Total Rewards
Plan or method implemented by an organization that provides monetary, benefits-in-kind, and developmental rewards to employees who achieve specific business goals.
Total Rewards Strategy
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.
Benefits
Refers to all other financial returns (beyond any tangible benefits payments or services), including salary and allowances.
Compensation
Compensation provided on an individual basis in the form of goods or services.
Perquisites
Payments in return for the achievement of specific, time-limited, targeted objectives. Often they are calculated as a percentage of base salary.
Incentives/Premiums
Short (but broad) statement documenting the organization’s guiding principles and core values about employee compensation.
Compensation Philosophy
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)
Assessment
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)
Design
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)
Implementation
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)
Evaluation
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.
Ethical Universalism
Argues that ethical behaviors is determined by local culture, laws, and business practices.
Cultural Universalism
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.
Employment Practices Liability Insurance (EPLI)
HR professionals model ethical conduct and the organization’s values in all their actions. They strive to be ethical and admit their shortcomings.
Personal Integrity
HR professionals demonstrate awareness of and commitment to ethics in their work.
Professional Integrity
The group can brainstorm strengths, weaknesses, opportunities, and threats and agree on a numerical value for each.
SWOT Analysis
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.
Multi-Criteria Decision Analysis (MCDA)
Group discussion is critical to identifying all relevant costs and benefits.
Cost-Benefit Analysis (CBA)
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.
Force-Field Analysis
Supports trust in relationships with stakeholders, who could be business associates, investors, governments and communities, and employees.
Transparency
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.
Conflicts of Interest
The exchange of anything of value to gain greater influence or preference.
Bribery
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).
Confidentiality
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.
Governance
Exists when one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting loss.
Moral Hazard
An economic concept often associated with moral hazard in employment.
Principal-Agent Problem (Agency Dilemma)
Occurs when employees feel that performance or job differences result in corresponding differences in rewards that are fair.
Internal Equity
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.
External Equity
