Human capital issues encompass which of the following?

Advance your understanding of sustainability accounting with the FSA Level 2 Exam. Practice with engaging quizzes and detailed explanations to enhance your learning experience. Prepare to excel!

Human capital issues primarily focus on the relationship between an organization and its workforce. This encompasses labor practices and employee engagement, which are crucial aspects of managing and optimizing the talents, skills, and productivity of employees. Effective management of human capital directly impacts not only the organizational performance but also employee satisfaction, turnover rates, and overall workplace culture.

Labor practices involve how an organization treats its employees in terms of hiring, training, compensation, and working conditions. Engaging employees means fostering a work environment where individuals feel valued, supported, and motivated to contribute to the organization’s goals. Thus, addressing these human capital issues can lead to enhanced creativity, innovation, and commitment among employees, which are vital for sustainable success.

The other options, while important to overall business strategy and sustainability, do not specifically relate to human capital. Product lifecycle management focuses on the stages of a product's life and is not inherently about employees. Market expansion strategies pertain to business growth and revenue generation, while corporate governance practices deal with the structure and processes for decision-making, accountability, and transparency in an organization. Therefore, the option that accurately reflects human capital issues is centered on labor practices and employee engagement.

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