Sample Risk Audit
Theodora Holder
HRMN- Contemporary Issues In Human Resource Management Practices
Risk Management Audit
University of Maryland Global Campus
February 8, 2022
Introduction
In evaluating the key issues in global hr, diversity, equity and inclusiveness it is imperative to acknowledge the differences between domestic hr and global hr such as the cost scale within global hr that can significantly negative impact an organization if not maximized. In addition, as it relates to corporate social responsibility(CSR), diversity, equity and inclusiveness (DEI) these functions are vital and must be considered within any organization where people are the focus(Beechler, S., Pucik, V., Stephan, J., & Campbell, N. ,n.d.).
To that end, this report will encompass a risk management audit of hr policies, processes, and procedures. In addition, there will be one key issue regarding corporate social responsibility explained including how this issue is connected to the effectiveness of the organization. Also, including an explanation of the risk and legal implications associated with corporate social responsibility issues(Beechler, S., Pucik, V., Stephan, J., & Campbell, N. ,n.d.).
Domestic and Global HR Differences
Domestic and Global HR differences. Domestic HR and Global HR are different in many ways. The domestic HR uses a local market to pull talent. Therefore, a domestic HR pulls human resources from a local market which involves recruiting, training and compensating locally. Also, since there is only one market to focus on in a domestic firm, determining the rate of pay is simple. Also, the main objective when seeking talent is to look for candidates who have interpersonal and technical competencies to perform the job -related task. To that end, Global HR operates as a multinational firm. In Global HR, the needs are the same as it relates to recruiting, hiring and retaining. However, the difference is that the Global HR attempts to operate on a lower cost scale than a domestic firm (Beechler, S., Pucik, V., Stephan, J., & Campbell, N. ,n.d.).
In addition, as it relates to Global HR, Global HR is seen as a multinational operation as a whole and activities are combined to maximize efforts on a global scale. Furthermore, the main difference between domestic and global is that global HRM views the whole world as their market and domestic is local (Beechler, S., Pucik, V., Stephan, J., & Campbell, N. ,n.d.).
Most important to Organization
The most important organizational issue. In regards to the most important issue in Apple’s organization as it relates to Corporate Social Responsibility (CSR), partnerships within the local community groups are very important as Apple has fostered relationships with local community groups for over 30 years (Apple, 2020). Therefore, CSR is relevant in Apple’s organization because of their ethical role in society and to various stakeholders (Ethical Cosmetics , n.d.). Thus, this issue affects organizational effectiveness by ensuring that the organizations long-term profits and gain the shareholder’s trust by having integrity and abiding by ethical standards (Ethical Cosmetics ,n.d.).
Risks to the Organization
Possible Risks to the organization. If the issue of corporate social responsibility is not address within Apple’s organization, there is a risk of losing stakeholders. An example would be 42% of North American has punished companies that have not taken corporate social responsibility (Starbucks and Consumer Pressure , n.d.). Thus, consumers are now looking for businesses to place corporate social responsibility before profits. Corporate Social Responsibility role is to decrease negative environmental consequences of corporate involvements as it relates to construction and manufacturing. Also, the stakeholders are employees, unions, investors, suppliers, consumers, local and national governments, and communities (Starbucks and Consumer Pressure ,n.d.).
Another example with regard to the risk, is supply chain pressure from consumers. “Apple has come under scrutiny and criticism for the poor working conditions and environmental hazards in their assembly facilities in China. Even though these facilities are outside of the United States and are separate corporate entities, Apple has spent considerable resources defending its reliance on such suppliers (Starbucks and Consumer Pressure ,n.d.).” Therefore, corporate social responsible holds companies accountable and they are not able to ignore the social and environmental pressures. In addition, stakeholders will sale or purchase according to their CSR performance (Starbucks and Consumer Pressure , n.d.).
Legal implications
Legal implications. In regards to the legal implications of CSR, there are various practices of law associated with CSR such as corporate law, international and European law, corporate governance, tort law and contract law, procedural law, labour and environmental law, and criminal law (Lambooy, T. ,2014). However, CSR is considered as a soft tort law and is not required by U.S statue or regulation as a hard law. Nevertheless, consumers expect corporations to abide by corporate social responsibility (Fellows, U. of H. E. , n.d.).
Conclusion
To conclude this risk management audit, the findings reveal that domestic hr and global hr are different in many ways. However, the difference is that the global HR attempts to operate on a lower cost scale than a domestic firm. In regards to corporate social responsibility(CSR), diversity, equity and inclusiveness (DEI) within the Apple organization, the research reveals that this organization has a practice in place to increase diversity disclosure. Also, this organization does not have a candidate application processes that meets accessibility standards. Therefore, it recommended that Apple implement a live chat on the public website to support accessibility standards. In addition, it was discovered that Apple has a diverse candidate pool of applicants(Beechler, S., Pucik, V., Stephan, J., & Campbell, N. ,n.d.).
In addition, this risk management audit revealed that Apple’s DE & I is aligned with their mission and vision statement . Also, Apple has an accountability practice with regard to holding all leaders within Apple responsible for ensuring that the values of DE & I are implemented. Therefore, Apple implements the DE & I practice and policies to employees through on boarding , trainings and learning sessions (Apple. , 2020). Also, as it relates to the process for complaints it is recommended that all employees take the duty to report any and all discrimination or harassment through the recommended procedure process. In addition, the performance management process does include DE & I competencies(Apple. , 2020).
To that end, with regard to the most important issue in Apple’s organization as it relates to Corporate Social Responsibility (CSR), partnerships within the local community groups are very important as Apple has fostered relationships with local community groups for over 30 years (Apple, 2020). In addition, if the issue of corporate social responsibility is not address within Apple’s organization, there is a risk of losing stakeholders. However, as it relates to any legal implications, CSR is considered as a soft tort law and is not required by U.S statue or regulation as a hard law. Nevertheless, consumers expect corporations to abide by corporate social responsibility (Fellows, U. of H. E. (n.d.).
References
Apple. (2020). Inclusion & Diversity. Apple. https://www.apple.com/diversity/
Beechler, S., Pucik, V., Stephan, J., & Campbell, N. (n.d.). THE TRANSNATIONAL CHALLENGE: PERFORMANCE AND EXPATRIATE PRESENCE IN THE OVERSEAS AFFILIATES OF JAPANESE MNCs. Advances in International Management, 215–242. https://doi.org/10.1016/s-
Disentangling the Meanings of Diversity and - ProQuest. (n.d.). Www.proquest.com. Retrieved February 4, 2022, from https://www.proquest.com/docview/-?accountid=14580&parentSessionId=QOsIwkuZiOsbhFe4C%2FQntD9hb3Q8kx5CftOY
Ethical Cosmetics. (n.d.). Www.youtube.com. Retrieved February 3, 2022, from https://youtu.be/yoGMEX1ZLoc
Fellows, U. of H. E. (n.d.). Can Corporate Social Responsibility Be Legally Enforced? Forbes. Retrieved February 3, 2022, from https://www.forbes.com/sites/uhenergy/2019/10/11/can-corporate-social-responsibility-be-legally-enforced/?sh=6c9ed9ff3d44
Lambooy, T. (2014). Legal Aspects of Corporate Social Responsibility. Utrecht Journal of International and European Law, 30(78), 1–6. https://utrechtjournal.org/articles/78/
Starbucks and Consumer Pressure. (n.d.). Www.youtube.com. Retrieved February 3, 2022, from https://youtu.be/_Z9es2kXLlY