What is the relationship between corporate social responsibility (CSR) and sustainability?
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Sustainability focuses externally while CSR focuses internally.
CSR encompasses sustainability.
CSR focuses on social concerns; sustainability focuses on environmental concerns.
Sustainability has completely replaced CSR.
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CSR encompasses sustainability.
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Rationale
The
definition of CSR has broadened from the traditional areas of ethics, governance, corporate philanthropy, and volunteerism to include sustainability.
How have corporate social responsibility (CSR) strategies evolved in corporations?
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The strategies are intended to create visibility for the organization.
Values and goals have been redefined based on CSR principles.
The involvement of less-senior employees is required.
The strategies are tied to the organization's net earnings.
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Values and goals have been redefined based on CSR principles.
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In many corporations, CSR principles have matured as a strategic approach that is fully integrated into an organization's mission and core business strategies.
A small but growing organization is just beginning to build its corporate social responsibility (CSR) program. Which objective would be most appropriate for the organization at this stage?
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To develop an annual auditing tool for recipients of the organization's support
To develop a CSR program that is aligned with the organization's business strategy
To find local nonprofits that merit financial support and that share the same values
To place senior executives on boards of prominent nonprofits in the local area
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To develop a CSR program that is aligned with the organization's business strategy
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Rationale
CSR has moved up the sustainability maturity curve. In the past, CSR was seen as a tactical, public relations-centered way to "pay back" or do good, or a compliance activity, or a defensive maneuver to protect a company's reputation and share value. It has changed to a strategic approach that is fully integrated into an organization's mission and core business
strategies. The starting point for any CSR strategy is thus to align CSR goals with core business goals.
Technological forces have had which critical effect on today's corporate social responsibility (CSR) practices?
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Using analytical capabilities has made CSR impacts more demonstrable.
Organizing multicultural efforts through social media is easier.
Monitoring tools have made it easier to track regulatory compliance.
Telecommuting tools have helped organizations reduce their carbon footprint.
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Using analytical capabilities has made CSR impacts more demonstrable.
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Rationale
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.
Which is one of the negative social effects of global technological forces?
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Decreasing foreign investment in developing economies
Economic imperialism by developed economies
Complexity of privacy issues
Increasing ethnocentrism
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Complexity of privacy issues
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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.
Which would be an accurate statement about the forces that are shaping organizations' corporate social responsibility (CSR) strategies?
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Governments have mostly allowed organizations to take the lead on sustainability.
CSR has increased individuals' rights to privacy.
Technology has had a mostly negative effect on society and the environment.
CSR initiatives are seen by organizations as necessary but poor economic investments.
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CSR has increased individuals' rights to privacy.
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Rationale
Although technology has created many challenges to privacy, the social and political reactions to this threat have created many protections for individuals' rights to privacy. Technology has had a mixed effect on society and the environment. Some technology increases work hours and stress, but some can be used to increase work flexibility, such as telecommuting, or to expand access to disabled employees. Governments have taken actions that often impel organizations to
respond, such as carbon taxes or environmental, workplace, and ethical regulations. Many CSR investments are net money makers, such as improvements to efficiencies. It may be hard to calculate the economic impact of an organization's reputation for CSR, but the effect on recruiting and retention has been noted.
An organization has redefined its brand to demonstrate a commitment to corporate social responsibility (CSR). Which phase of the CSR maturity curve is the organization in?
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Review
Integration
Transformation
Compliance
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Transformation
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Rationale
Transformation is the phase in which organizations redefine themselves.
Leadership has requested HR to design a program to allow employees to telecommute. How will this advance the organization's sustainability?
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By allowing the organization to apply for ISO 26000
By reducing costs for the organization
By reducing organization's carbon footprint
By allowing the organization to apply for SA8000
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By reducing organization's carbon footprint
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Rationale
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.
Why is ethics an intrinsic part of a corporate social responsibility program?
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Ethics increases external stakeholders' influence.
Ethics is based on laws and regulations.
Ethics dictates behavioral guidelines for an organization.
Ethics allows for the adherence to the letter of the law.
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Ethics dictates behavioral guidelines for an organization.
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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.
The term "cultural relativism" is best demonstrated by which of the following?
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State of mind that focuses on narrow section of an issue versus considering a broader context
Philosophical position that, for every interaction with others, conditions exist that cause no other events
Concept that holds that there are no absolutes and everything is based on the situation
Evaluation of other cultures according to preconceptions originating in the customs of one's own culture
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Concept that holds that there are no absolutes and everything is based on the situation
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Relativism states that because cultures vary so greatly, there are
no absolutes. Everything varies based on the situation.
What type of system does HR help develop that puts rules and processes in place for the organization to go by?
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Social audit
Code of conduct
Compliance program
Governance
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Governance
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Governance is a system of rules and processes that ensure compliance with laws, ethical
norms, and a social code of conduct. Codes of conduct and compliance are part of governance. A social audit is something you would perform to determine if you are in compliance.
Which term describes a system of rules and processes put in place to ensure adherence to laws, rules, norms, and social codes of conduct?
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Governance
Rule of law
Ethics
Compliance
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Governance
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Governance is 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. 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.
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?
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Social
Governance
Compliance
Environment
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Governance
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Rationale
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.
For an organization to be considered sustainable, what areas of practice are examined?
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Environmental, social, ethics
Social, ethics, economics
People, profits, environment
Environmental, economic, social
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Environmental, economic, social
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Rationale
Environmental, economic, and social are the three spheres of sustainability.
For an organization to be considered sustainable,
How do the three spheres of sustainability support an effective corporate social responsibility (CSR) program?
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By limiting the measures of success to financial, earth, air, and water
By incorporating a blend of local, regional, and global perspectives
By allowing an organization to better focus on the community in which it operates
By offering an all-encompassing view of how an organization should function
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By offering an all-encompassing view of how an organization should function
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The term "sustainability" originally referred to an ecological or environmental goal. Now that focus has expanded to also
consider an organization's social and economic impact (sometimes referred to as the 3Ps: people, planet, profits). Based on stakeholder demands, the three spheres attempt to provide a balanced focus to the organization's goals, objectives, and outcomes.
Which best illustrates the principle of sustainability in the workplace?
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Changes to a headquarters location are weighed against the effects on stakeholders.
Global HR policies are reviewed to make sure they comply with local laws and regulations.
The organization implements a flat structure, with few layers of decision-making authority.
Competitive business practices are aligned with local norms in each operating region.
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Changes to a headquarters location are weighed against the effects on stakeholders.
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Rationale
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.
Which change might a corporation make in the way it does business to create a sustainability sweet spot?
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Reducing how much of its processes are automated in order to employ more local workers
Switching supply chain vendors to those whose more socially responsible practices slow down the delivery cycle
Altering its production facilities to use renewable energy sources (wind, solar) despite the increase in costs
Redesigning products so that components are made locally from recycled materials, thereby reducing production costs
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Redesigning products so that components are made locally from recycled materials, thereby reducing production costs
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Sustainability sweet spots create a win-win situation in which the changed products, procedures, or processes have a positive impact on society and/or the environment but also on the organization's bottom line. A change that does social or environmental good but costs the organization may be admirable but is not a sweet spot initiative.
When an organization has a strong corporate social responsibility (CSR) orientation, which is it likely to see as a primary outcome?
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Increased profitability for its shareholders
Proactive and ongoing interaction with all stakeholders
Retention of existing customers and referral of new customers
Greater employee productivity and performance
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Proactive and ongoing interaction with all stakeholders
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A CSR-oriented organization's primary responsibility should
be to its stakeholders rather than to its shareholders.
How are local cluster developments used in corporate social responsibility?
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To create a sustainability sweet spot
To create shared value
To broaden the range of stakeholders
To move up the sustainability maturity curve
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To create shared value
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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.
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?
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ISO 26000
GRI Sustainability Reporting Standards
OECD Guidelines for Multinational Enterprises
United Nations Global Compact
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GRI Sustainability Reporting Standards
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Rationale
The GRI Sustainability Reporting Standards enable meaningful and
consistent comparisons of organizations'
sustainability performance.
What is the implication of an organization using the Global Reporting Initiative (GRI) Standards to create an enhanced and comprehensive sustainability strategy?
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The GRI Standards have been in place longer than the organization's own measures.
It is easier to evaluate performance and progress against industry and global benchmarks.
It will save money by enabling the use of GRI-provided templates, forms, and surveys.
These metrics are approved by all national and global HR organizations.
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It is easier to evaluate performance and progress against industry and global benchmarks.
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The GRI Sustainability Reporting Standards are universally accepted for global reporting of an organization's sustainability efforts and progress, enabling meaningful and consistent comparisons of multinational
organizations' sustainability performance.
At which point in the corporate social responsibility (CSR) strategic process should a global organization decide on using local leadership?
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Executive commitment
Infrastructure creation
Plan implementation
Assessment
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Infrastructure creation
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The infrastructure creation step involves
creating the infrastructure that will be responsible for guiding, overseeing, administering, reviewing, and championing the CSR strategy. For a global corporation, that includes determining whether local departments, divisions, or individuals will be responsible for local efforts and how these will coordinate with global goals and initiatives.
An organization gains many benefits from its employees volunteering in the community. How can volunteering help the employees?
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By building skills
By increasing branding
By providing time off
By improving the company culture
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By building skills
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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?
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Employee volunteerism
Joining an internal committee
Outside training
Team building
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Employee volunteerism
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Rationale
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.
HR is looking for ways to increase the organization's brand while developing the employees. How can this be achieved?
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Job rotation
Job sharing
Outsourcing
Volunteering
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Volunteering
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Volunteering gives people a chance to learn new skills while representing the organization. Job sharing and rotation may improve an organization's effectiveness and
productivity but not perceptions of its brand by external stakeholders. Outsourcing, if performed without due diligence, can hurt the organization's brand, but performed appropriately it will affect productivity and effectiveness rather than brand.
Which is a primary business benefit associated with implementation of an employee volunteerism program?
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Strengthening the company's brand and reputation
Enhancing sense of camaraderie and teamwork
Expanding skill sets for employees who participate
Developing opportunities for employee recognition
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Strengthening the company's brand and reputation
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While all of these may occur as a result of successfully implementing an employee volunteerism 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.
A manufacturer assembles commercial equipment in its host country, using components purchased from small manufacturers in other countries. Pursuing a new corporate social responsibility (CSR) strategy, the manufacturer has reviewed its own processes for potential environmental improvements related to energy and waste. HR has been directed to survey employees' workplace impressions, implement engagement practices, and initiate volunteer programs with local community groups. What else is HR in a good position to do to advance the CSR program?
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Train suppliers in the organization's code of conduct.
Implement an employee suggestion program at headquarters.
Compile a list of green products to be used in the organization.
Conduct workplace compliance audits for supply chain partners.
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Conduct workplace compliance audits for supply chain partners.
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Rationale
Because of the manufacturer's business model, it makes sense for HR to recommend to management that suppliers' workplaces be audited for conditions that would violate local laws and/or the organization's own values and ethical code. The employee suggestion program has probably already been considered as part of an engagement program. Compiling a list of green products is outside HR's area of expertise.
The manufacturer and HR cannot impose their code of ethics on a supplier, who must develop a code that complies with local laws, customs, and their own values. HR could, however, include review of such a code in their compliance audit of suppliers.