Social Responsibility & Community Engagement Flashcards

A company operating in a low-income community wants to demonstrate shared value creation. Which approach best aligns business success with social progress?

Answer: Designing core business activities that simultaneously address social needs and create economic value

Shared value creation, as defined by Porter and Kramer, integrates social impact into the core business model rather than treating it as a separate philanthropic activity.

Under the UN Guiding Principles on Business and Human Rights, what is a company's duty when it identifies that a supplier is causing adverse human rights impacts?

Answer: Use leverage to encourage the supplier to remediate the harm and track progress

The UN Guiding Principles emphasize using leverage and engagement to remediate harm rather than automatic contract termination, which may leave workers worse off.

A mining company plans to operate on indigenous lands. Which international standard most directly governs the requirement for Free, Prior, and Informed Consent (FPIC)?

Answer: ILO Convention 169 on Indigenous and Tribal Peoples

ILO Convention 169 is the primary binding international instrument that establishes FPIC rights for indigenous and tribal peoples affected by development projects.

Which metric is most appropriate for measuring the social return on investment (SROI) of a workforce training program in a disadvantaged community?

Answer: Ratio of financial proxies for social outcomes to the total investment cost

SROI is calculated by assigning financial proxies to social outcomes (e.g., increased earnings, reduced unemployment benefits) and comparing this value to the total investment.

A corporation's community investment program focuses exclusively on causes aligned with its commercial interests. Critics argue this compromises genuine social responsibility. What term describes this strategic philanthropy concern?

Answer: Social washing

Social washing refers to overstating or misrepresenting the social benefit of corporate activities, including philanthropy that primarily serves commercial rather than community interests.

When conducting a community needs assessment before launching a CSR initiative, which method best ensures authentic representation of marginalized voices?

Answer: Partnering with trusted community organizations to facilitate focus groups with hard-to-reach populations

Partnering with trusted intermediaries to conduct focus groups reaches marginalized groups who may distrust corporate outreach or lack digital access.

The concept of 'impact materiality' in the context of social responsibility refers to:

Answer: The significance of a company's actual and potential impacts on people and communities

Impact materiality, central to double materiality frameworks like ESRS, focuses on the significance of a company's effects on people, communities, and society rather than financial effects on the firm.