M1-E: Sustainable & Social Responsible SC

Question 1

what are the most widely adopted framework of social corporate responsibility?

Answer 1

1. United nation global compact
2. United nation global compact management model

Question 2

what is the United Nations global compact?

Answer 2

Voluntary initiative the company can adopt to embrace, support and act upon a list of core values pertaining to human rights, labor, standards, environment, and anticorruption

Question 3

what is the United Nations global compact management model?

Answer 3

A standardize framework, that guides companies in the process of committing to, implementing and communicating the United Nations global compact and its principles

Question 4

how many and in which categories are divided the inspiring principles of UN global compact?

Answer 4

10 principles divided into 4 categories:
– Human rights
– labor
– environment
– anticorruption

Question 5

what are the biggest benefits of adhering to the UN global compact act?

Answer 5

Improved the company public image and lower risk for corruption, therefore a more stable look to investors and lower risk of law investigations

Question 6

what is one of the biggest difficulties for companies adhering to the UN global compact act and having a global supply chain?

Answer 6

Be sure that all suppliers along chain also comply to the global compact act, even in countries where labor policies and human rights get valued differently

Question 7

what is the key step to earn the investment payoff of adhering to the UN global compact act?

Answer 7

communicating to local communities, the workforce, press and investors about the success of the implementation and the increased brand reputation.

Question 8

What is social responsibility?

Answer 8

is it the commitment of top management to behave ethically, and contribute to the development of the community, for example, by improving the workforce quality of life and work.

Question 9

what is sustainability regarding social corporate responsibility ?

Answer 9

Is the company focus on activities that provide benefits in the present without compromising the needs of the future generations

Question 10

what is a sign that company cares about ethics?

Answer 10

it developed a code of conduct, as Baker Hughes did

Question 11

what are the typical legal and regulatory risk that a company must take into account?

Answer 11

– Compliance : respect operational country laws, for example, avoiding illegal working condition such as child labor
– contracting risk : suffering reputational and financial damages when a business partner fails to commit to contract obligations
– Patent infringement
– Corruption

Question 12

what are the typical cost incurred by not complying with the regulations in law?

Answer 12

• financial penalties
  – higher legal department costs
  – Slower production due to increased quality inspection
  – Forced closure of company operations
  – Loss of company reputation