GPHR Risk Management and Compliance 2 — Questions and Answers
Question 1: A multinational company discovers that its third-party vendor in a foreign country is using child labor. Under the GPHR framework, what is the FIRST step HR should take?
- Immediately terminate the vendor contract without further review
- Conduct a risk assessment and engage the vendor to understand the scope and remediation options (Correct answer)
- Report the vendor to local authorities and wait for their investigation
- Issue a public statement acknowledging the violation
Correct answer: Conduct a risk assessment and engage the vendor to understand the scope and remediation options
HR should first assess the scope of the issue and engage the vendor on remediation before taking action, following a risk-based approach consistent with responsible sourcing standards.
Question 2: Which international standard provides a framework for organizations to manage bribery risks and is relevant to global HR compliance programs?
- ISO 9001
- ISO 37001 (Correct answer)
- ISO 14001
- ISO 45001
Correct answer: ISO 37001
ISO 37001 is the international standard specifically designed for anti-bribery management systems, directly relevant to global compliance programs.
Question 3: A company operating in multiple countries must navigate conflicting data privacy laws. The GDPR requires data minimization, but a local law mandates retention of employee records for 10 years. How should HR handle this conflict?
- Apply the stricter of the two standards to ensure maximum compliance
- Apply only the local law since it is the law of the jurisdiction where employees work
- Consult legal counsel to determine which law prevails and document the rationale (Correct answer)
- Ignore the local law since GDPR supersedes national regulations globally
Correct answer: Consult legal counsel to determine which law prevails and document the rationale
When laws conflict, HR must consult legal counsel to determine which law takes precedence in each jurisdiction and document the compliance rationale.
Question 4: What is the primary purpose of a 'whistleblower protection policy' in a global organization?
- To protect the company from reputational damage caused by employee complaints
- To encourage reporting of misconduct by protecting employees from retaliation (Correct answer)
- To limit the legal liability of management when misconduct is reported
- To ensure that all internal reports are kept confidential from regulatory bodies
Correct answer: To encourage reporting of misconduct by protecting employees from retaliation
Whistleblower protection policies are designed to encourage reporting of misconduct by assuring employees they will not face retaliation for raising concerns.
Question 5: An HR professional is designing a global ethics hotline. Which feature is MOST critical to ensure its effectiveness across multiple countries?
- Using a single language (English) to maintain consistency
- Ensuring 24/7 availability with multilingual support and anonymous reporting options (Correct answer)
- Routing all reports directly to the CEO for immediate action
- Making the hotline available only to management-level employees
Correct answer: Ensuring 24/7 availability with multilingual support and anonymous reporting options
An effective global ethics hotline must be accessible at all hours, support multiple languages, and allow anonymous reporting to encourage use across diverse workforces.
Question 6: Under the U.S. Foreign Corrupt Practices Act (FCPA), which of the following is TRUE regarding payments to foreign government officials?
- Small 'facilitation payments' to expedite routine government actions are permitted under certain conditions (Correct answer)
- All payments to foreign government officials are permitted if properly disclosed
- The FCPA only applies to U.S. government officials, not foreign ones
- Companies are exempt from FCPA if the bribery occurs in a country where it is legal locally
Correct answer: Small 'facilitation payments' to expedite routine government actions are permitted under certain conditions
The FCPA historically permitted narrow 'facilitation payments' for routine government actions (like processing permits), though many companies prohibit them as a best practice.
Question 7: A global company wants to assess its exposure to human rights risks in its supply chain. Which tool is MOST aligned with internationally recognized standards for this purpose?
- A balanced scorecard measuring supplier financial performance
- Human rights due diligence aligned with the UN Guiding Principles on Business and Human Rights (Correct answer)
- An ISO 9001 quality audit of supplier manufacturing processes
- A Six Sigma analysis of supplier defect rates
Correct answer: Human rights due diligence aligned with the UN Guiding Principles on Business and Human Rights
The UN Guiding Principles on Business and Human Rights (UNGPs) provide the internationally recognized framework for human rights due diligence in supply chains.
GPHR Risk Management and Compliance 2
A multinational company discovers that its third-party vendor in a foreign country is using child labor.
Under the GPHR framework, what is the FIRST step HR should take?