As we see every day, companies spend enormous amounts of money trying to be socially responsible. My first consideration concerns why companies are “socially” and “ethically” active and what are the main issues involved in corporate social responsibility (CSR).
There are many references to corporate social responsibility, sometimes called corporate citizenship, in our workplaces, in the media, in government, in our communities. Companies can be socially responsible in different dimensions: environmentally, economic contribution to the community, having progressive relationships with stakeholders, such as a commitment to consumer safety or demonstrating respect for human rights.
CSR means the commitment of a company to manage its role in a society in a responsible and sustainable way (Akgeyik, 2005).
A series of events in recent years, such as the highly publicized financial scandals at Enron and WorldCom, the clandestine working of retail sports shoe and apparel manufacturers, and the “under the table” deals the companies have received. As a consequence, reputation, brand, integrity and trust are now increasingly considered important measures of corporate social responsibility.
The main CSR issues that companies are taking seriously are those related to reputation and brand enhancement, accountability and transparency, risk management (investor confidence management is another factor that supports the business case for CSR) and the “war for talent” based on labor shortages. in the next 10 to 25 years cause companies to make a special effort to attract, develop, motivate and retain. In addition, the war for talent is evidenced by an influx of “best places to work” awards. Therefore, a strong argument in favor of CSR is the management of talent both in the short and long term.
Consequently, CSR influences a company’s competitive advantage today through two key value drivers: 1) the company’s reputation and brand; and 2) human capital (Paul Lee, 2008). Human resource leaders have begun to take leadership roles to address both areas.
For example, would the Enron and Worldcom incidents be noticed if the recruiting process were to identify and rule out in advance those managers who breached their legal duties and were caught in corrupt conduct?
HR has an important role in companies to achieve CSR standards. HR leaders can influence three main CSR standards: ethics, labor practices, and community involvement, which relate directly or indirectly to employees, customers, and the local community.
What kind of labor practices can be promoted in companies to be more CSR? Human resource management practices promote the personal and professional development of employees, diversity at all levels, and empowerment. Other human resources practices include: viewing employees as valued partners, entitled to fair labor practices, competitive wages and benefits, and a safe, harassment-free, and family-friendly work environment.
What can HR leaders do to track the HR scorecard in CSR? Some ideas to use as a checklist based on recent studies (Fenwick, 2008 & Lockwood, 2004)
• Create a strong organizational culture around the company’s core values.
• Scan the environment to identify potential threats (eg, competition for talent within the organization’s industry sector).
• Build the personal and professional capacity of the workforce (eg, expand intellectual capital within the organization and in collaboration with other organizations).
• Include ethical concerns in staff performance measures.
• Support for participatory decision-making.
• Guarantee the highest standards in health and safety at work.
• Encourages active participation in community activities.
References:
– Akgeyik, T. (2005) The human resource management dimensions of corporate social responsibility in Turkey: a survey. Journal of the Academy of Business and Economics, January 2005.
– Fenwick, Tara and Bierema, Laura (2008), “Corporate Social Responsibility: Issues for Human Resource Development Professionals”. International Journal of Training and Development, vol. 12, number 1, p. 24-35, March 2008.
-Lockwood, NR (2004). Corporate Social Responsibility: HR Leadership Role. SHRM, December. Obtained from [http://www.shrm.org/Research/quarterly/1204RQuart.asp#summary].
-Paul Lee, M. (2008). A review of the theories of corporate social responsibility: its evolutionary trajectory and the way forward. International Journal of Management Reviews, 10(1), 53-73.
– Trudel, R. and Cotte, J. (2008 5). Does being ethical pay? Wall Street Journal online, page R1.
