Social Responsibility & Community Engagement Flashcards

A retail company sources garments from a factory where workers earn below a living wage. The company has no ownership stake in the factory. Under responsible supply chain management, what is the company's appropriate response?

Answer: Engage the factory to understand constraints and work collaboratively toward living wage benchmarks

Responsible supply chain management involves using business relationships to encourage improvement, not simply transferring the problem or disclaiming responsibility.

Which framework specifically provides guidance for measuring and reporting on a company's contribution to the UN Sustainable Development Goals (SDGs)?

Answer: The SDG Compass developed by GRI, UN Global Compact, and WBCSD

The SDG Compass provides a five-step framework for businesses to align their strategies, measure impact, and communicate contributions to the SDGs.

A technology firm launches a digital literacy program in rural communities where it plans to expand market operations. This is an example of which CSR strategy type?

Answer: Strategic CSR aligning community investment with competitive positioning

Strategic CSR, as described by Porter and Kramer, creates both social value and competitive advantage — here, market expansion is facilitated by the digital literacy program.

In stakeholder engagement, the term 'grievance mechanism' refers to:

Answer: A formal channel through which affected communities can raise concerns and seek redress

Per the UN Guiding Principles, operational-level grievance mechanisms allow affected communities to raise concerns early, enabling companies to address issues before they escalate.

The 'social license to operate' (SLO) is best described as:

Answer: Ongoing acceptance and approval from local communities and stakeholders for a company's activities

The social license to operate is an informal, dynamic concept reflecting the level of community trust, acceptance, and approval that a company must maintain to operate without significant conflict.

Which of the following best describes 'community benefit agreements' (CBAs) in the context of large infrastructure projects?

Answer: Legally binding agreements between developers and community coalitions specifying local benefits

CBAs are negotiated contracts between developers and organized community groups that legally commit the developer to provide specific benefits like local hiring, affordable housing, or park improvements.

When a company reports '80% of employees volunteered in community programs,' what additional data point is most important for assessing the program's social impact?

Answer: The measurable outcomes achieved for beneficiaries of the volunteer programs

Output metrics like participation rates tell us about corporate activity; impact metrics measuring actual outcomes for beneficiaries reveal whether the program created genuine social value.