Corporate Social Responsibility and Human Resource Management

Introduction

Picture 1: Corporate Social Responsibility
Source: (Visual Factories, 2020)

As a result of globalization companies are expanding overseas, when companies are global, an important challenge in bringing success is to respect other cultures and workforce environments, and start forming a global profile or social consciousness. Identifying these differences with a good Corporate Social Responsibility (CSR) plan can enhance shareholder value, improve employee engagement and increase employer brand recognition (Lokhadwala, 2019). CSR is an integrated approach that encompasses social and environmental concerns in their business operations and their relationship with internal and external stakeholders voluntarily (Hopkins, 2006).

In today’s competitive environment organizations increasingly engage in addressing social, environmental or, green issues to build their reputation as responsible corporate citizens. HR departments engage in managing the CSR plan implementation and monitoring, and communicating its success throughout the company (Lokhadwala, 2019).

HR technologies can help CSR programs in the following ways.

  • Encourage green practices

Implementing green practices has become increasingly important in today’s context in the means of making our planet healthier.

HR Department can host practices to enhance the environment waste reduction in the workplace such as promote brown-bagging to reduce packaging waste, recycle paper, cans, and bottles in the office, collect donations for victims of disasters around the globe, and inspire reduced energy consumption (Lokhadwala, 2019).

  • Adapt a Culture of Corporate Social Responsibility

The responsibility of creating a cultural change starts with HR. Recruiting a committed set of employees who are environmentally conscious,  and who infuse enthusiasm about initiatives of CSR is a great way to begin with.

In the recent past unethical behavior of financial institutions that took an unacceptably high risk, contributed to the global financial crisis. These organizations have failed employees, and the public who have kept on trusting them, and the failures enhanced the culture of mistrust around the corporate world (Buchanan & Huczynski, 2019).

CSR can rehabilitate the employer brand by defeating the image that corporates are solely profit focus. Furthermore, good CSR practices can enhance trust within the existing employees by providing stable income, lifelong jobs without focusing on performance-based remunerations (Lokhadwala, 2019).

  • Celebrate the Successes of Corporate Social Responsibility

Celebrating the success of CSR accomplishments is vital to sustaining the momentum of any CSR program. Through proper publicity on these successes may let the local public know, in addition to providing jobs, the company actively participates in society-related issues. Share and communicate the importance of corporate social responsibility to employees and the community is another important thing to do.

Focusing on the following three key areas will provide value addition through a cohesive map for the future.

    • Encouraging Community Relations

The HR team can implement reward programs, make charitable contributions and encourage community involvement as a part of their CSR program. By communicating those to staff members by highlighting employees' and managers' involvement in community relations or creating monthly reward programs to recognize their efforts can encourage their participation in future activities.

    • CSR Training and Development

The HR team can organize training and development programs to clarify the connection between the company’s products or services and the society at large and their value to the local public. They also need to be recognized the areas in which employees can get involved in CSR projects that would sustain and direct these initiatives.

    • A Consistent Global CSR Platform

Now it has become more important for all organizations to create a single multi-functional platform that provides access to the entire workforce as it helps to maintain work-life balance and to flourish the success of CSR plan through effective planning, controlling, and managing goals through proper communication between the employees and managers.

Global Context

In today’s context most organizations trying to perform in ethical and socially responsible ways. Any violation can quickly expose through social media and can damage organizations reputation. Companies with poor corporate social responsibility records may have problems in recruiting and retaining staff. In the modern world Investors and consumers have also started to adopt socially responsible views and behaviors, not only about concerning operations, working practices but also with regard to social and political issues that organizations support. As an example In 2017 United States withdrew from the Paris climate agreement, the chief executive of Disney and Tesla resigned from the US President’s business advisory council, because they did not want to be associated with an environment damaging policy (Buchanan & Huczynski, 2019). 

Conclusion

In today’s turbulent environment even a well-performing company will not be sustained in the long run, if they are not aware of or engage in Corporate Social Responsibility. Human Resource Management plays a critical role in promoting CSR programs within the company. It is an increasingly important concept, as it helps companies, societies, and people by providing an economically efficient, socially equitable, and environmentally sustainable development while ensuring its' profitability and growth.

                                                                                                
Video 1: Corporate Social Responsibility
Source: (Servier International, 2019)


References

Buchanan, D. A. & Huczynski, A. A., 2019. In: Organizational Behaviour. s.l.:Pearson, p. 61.

Daft, R. L., 2016. Corporate Social Responsibity. In: Management. s.l.:Cengage Learning.

Hopkins, M., 2006. What is corporate social responsibility all about?. [Online]
Available at: https://www.researchgate.net/publication/246912286_What_is_corporate_social_responsibility_all_about
[Accessed 31 July 2021].

Jan, W. S. W., 2006. Defining corporate social responsibility. [Online]
Available at: https://www.researchgate.net/publication/229578267_Defining_corporate_social_responsibility
[Accessed 31 July 2021].

Lokhadwala, S., 2019. The Balance Careers. [Online]
Available at: https://www.thebalancecareers.com/the-hr-role-in-promoting-corporate-social-responsibility-1917743
[Accessed 31 July 2021].

Servier International, 2019. What is Corporate social responsibility (#CSR) ?. [Online]
Available at: https://www.youtube.com/watch?v=1bpf_sHebLI&ab_channel=ServierInternational
[Accessed 01 August 2021].

Visual Factories, 2020. What is Corporate Social Responsiblity and Why You Should Care. [Online]
Available at: https://visualfactories.com/blog/what-is-corporate-social-responsibility-and-why-you-should-care/
[Accessed 1 August 2021].

 

 

 

Comments

  1. The ultimate goal of a true CSR is to contribute to a better society. And CSR affords firms and managers the opportunity to adjust their means of production in way that gives then competitive advantage and enhance their long term profitability as you explained above. Good stuff Rukmali.
    Thanks for sharing

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  2. Today's organizations are immersed in a global market, where any detail can provide a competitive advantage over rival companies and condition their sustainability. Corporate Social Responsibility and Human Resource Management have become very powerful tools within organizations. Thanks for sharing Rukmali.

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  3. The term corporate social responsibility (CSR) refers to practices and policies undertaken by corporations that are intended to have a positive influence on the world. The key idea behind CSR is for corporations to pursue other pro-social objectives, in addition to maximizing profits. Examples of common CSR objectives include minimizing environmental harm, promoting volunteerism among company employees, and donating to charity.

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  4. In today context, companies are focused on triple bottom line such as people, profit & planet on CSR activities. Because sustainability is much more important rather than spending more money. By targeting the triple bottom line, it is much productive.

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  5. CSR shows how companies treat to environmental and society . This means a careful consideration of human rights, the community, environment, and society in which it operates. There are lot of direct and indirect benefits for organizations as well. Such as public image, Brand awareness, Increase customer engagement. HRM arm of organization must dedicate to have a genuine CSR projects .

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  6. Good topic Rukmali, One of the most important and less spoken subject.
    According to a report by Strandberg (2009), it was mentioned that according to a poll done for the Conference Board of Canada in 2000, 71% of employees prefer to work for firms that are concerned about social and community issues. In another comparable Corporate Citizenship research conducted in the United States by Cone Inc., 77% of respondents said “a company's commitment to social concerns is essential when they pick where to work. This shows the CSR is influential factor to select better talents and also benefits the society and environment.

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  7. Interesting topic Rukmali.Consumers are attracted to companies that are committed to corporate social responsibility. Keeping all things constant, customers are more likely to choose a company with higher CSR performance that aligns with their core values and preferences. CSR enhances the reputation and credibility of a firm and deepens customer loyalty and trust.

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  8. Hi Rukmali, interesting topic. Corporate social responsibility means that enterprise staff, consumers, the community and the environment must be held accountable for making a profit and assuming legal responsibility to shareholders (Jay Shen, 2011, 1360).

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  9. Corporate social responsibility (CSR) is simply describe as company’s efforts to improve society. Through CSR programs, businesses can benefit society while boosting their brand image. Human Resource departments play a critical role in ensuring that the company adopts Corporate Social responsibility programs. CSR is abroad subject to implemented now a days companies using their human resource to play a part of it.

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  10. Corporate Social Responsibility related activities are handled by the organizations Human Resources department without a doubt. A company that enacted CSR is ensured to enhance its brand value among the external community which attracts new investors to the company. The company must have a team to drive the CSR Projects which involves high cost at times but still company's exercise cautious practice in implementing same. In Sri Lanka, there are annually conducted survey to identify top companies with best CSR Projects conducted within a period and reward them accordingly. These rewards are linked directly to the brand value and attract investors. Thank You.

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  11. Businesses can no longer operate solely for financial gain at the expense of the economy, customers, and employees. Businesses must consider how they may give back to society and the environment. Companies that are socially responsible raise brand awareness, increase consumer loyalty, and attract top talent. These are some of the characteristics that contribute to increased profitability and long-term financial success.

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  12. A pilot survey done by the Society for HRM (SHRM) in 2007 on the role of HR in CSR in the United States, Australia, India, China, Canada, Mexico and Brazil accomplishes that HR should be more involved in applying CSR strategies than in generating them.

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  13. Well written article Rukmali. Human resource Dept have a key role to play to help a company to achieve its CSR. It can range from donating money to nonprofits to implementing environmentally-friendly policies in the workplace, according to Double the Donation. CSR increases public trust, Enhance positive relationships, company become more sustainable, increases profit level, Encourage personal and professional growth.

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  14. CSR activity in an organization demonstrates their values and brand and engage their employees and communicate with the public about how they operate and their contribution towards corporate social responsibilities for a sustainable future. A very important practice to be implemented by organizations in order to support and contribute and to take care the social responsibilities. Worth to read. Thank you for sharing.

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  15. Great Article Rukmali! CSR activities are a very important part of any organization as it helps the to project an overall better brand image & lend a helping hand to wards a sustainable future. Not only will these activities help enhance the brand image it will also help to develop the local communities as such it's a very sustainable concept of brand upbringing.

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  16. Interesting post. I Have Been wondering about this issue, so thanks for posting. Pretty cool post. It 's really very nice and Useful post. Want a staff for hire, visit us

    ReplyDelete

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