GPHR Risk Management and Compliance 3

Question 1

Which concept describes the process by which a parent company can be held legally responsible for the actions of its foreign subsidiaries regarding human rights violations?

Accepted Answer

Parent company liability / duty of care

Answer

Parent company liability or duty of care holds that a parent company can be legally responsible for harm caused by subsidiaries if it exercised control or created the risk.

Question 2

A global HR director is implementing a new anti-harassment policy. To be effective internationally, the policy MUST:

Accepted Answer

Be adapted to local legal requirements while maintaining core global standards

Answer

A global anti-harassment policy must balance consistent core standards with adaptation to local legal definitions and cultural contexts.

Question 3

What is the significance of the 'Protect, Respect and Remedy' framework in global HR compliance?

Accepted Answer

It is the UN framework outlining state duties and corporate responsibilities regarding human rights

Answer

The 'Protect, Respect and Remedy' framework, developed by John Ruggie for the UN, defines state duties to protect human rights and corporate responsibility to respect them.

Question 4

An employee in a country with no legal protection against discrimination based on sexual orientation is fired for being gay. The parent company is headquartered in the US. What should the global HR policy address?

Accepted Answer

Enforce the parent company's non-discrimination standards globally, even where local law does not require it

Answer

Best practice for global companies is to apply their own non-discrimination standards universally, even in countries where local law does not mandate such protections.

Question 5

What does 'reputational risk' specifically refer to in the context of global HR compliance?

Accepted Answer

The potential for negative public perception to harm the company's brand and business relationships

Answer

Reputational risk refers to the potential damage to a company's brand, trust, and stakeholder relationships resulting from perceived or actual misconduct.

GPHR - Global Professional in Human Resources Practice Test

GPHR - Global Professional in Human Resources Practice Test

GPHR Risk Management and Compliance 3