Human Resource Management and Corporate Social

Responsibility: A future of promise

Aditya Jain &Nicholas Andreou

CSR: what it was?

• The Social Responsibility of Business is to Increase its Profits

• “A concept whereby companies integrate social and environmental concerns in their business operations and their interactions with their stakeholders on a voluntary basis” - European Commission

• Corporate philanthropy - donations

CSR: what it was?

Traditional business functions: risk management, accounting, HRM, operations management etc.

Corporate Social Responsibility

“the prevailing approaches to CSR are so disconnected from business as to obscure many of the greatest opportunities for

companies to benefit” – Michael Porter

Global Financial Crisis

CSR: what it is now?

• Business can no longer operate as if in a vacuum – have to act more responsibly

• CSR no longer seen as an optional choice:– “the responsibility of enterprises for their impacts on

society” – European Commission • No longer seen as philanthropy• Strategic CSR: “a company must integrate a social

perspective into the core frameworks it already uses to understand competition and guide its business strategy” – Michael Porter

Human Resource Management

$450-550 billion

20% Europeans

70% Americans

Global financial crisis was HRM

problem?

Human Resource Management

Stakeholders perceive downsizing differently, corporate representatives see the financial implications whereas employees focus on the social implications

Social impact of all this?

Challenges facing HRM?

• Fundamental perception:– Human ‘resource’ management –

people are seen a means to an end

– HRM ‘obsessed’ with processes not outcome (e.g. creativity/well-being)

How can CSR help?• CSR highlights

the social responsibility of the business

• CSR offers an opportunity to be strategic – how can being responsible to employees deliver value to the firm

CSR and HRM – the specifics

• Analysed key CSR instruments including:– FTSE 4 Good Index– DJSI – World Business Council for Sustainable Development –

Measuring Impact Framework– OECD Guidelines for Multinational Corporations– ILO Guidelines for MNEs– ISO 26000– UN Global Compact– Global Reporting Imitative – SA 8000

HRM and CSR – the details• Six key areas emerged:

– employment conditions; • Promotion of new and stable employment

– organisational development and culture;• Support for professional development

– industrial relations; • Support for collective bargaining in the absence of legal requirements

– occupational health and safety system; • Systems to prevent ill health among workers

– diversity and non-discrimination; • Monitoring to establish areas of discrimination

– human rights.• Prohibition of child and forced labour

Healthy Workplaces Framework

The HWP and the six themes

Thank you

• Questions?

• Nicholas.andreou@nottingham.ac.uk