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  operaHons  and  their  interacHons  with  their  stakeholders  on  a  voluntary  basis”  -­‐  European  Commission  

•  Corporate  philanthropy  -­‐  donaHons  

 

CSR:  what  it  was?  

TradiHonal  business  funcHons:  risk  management,  accounHng,  HRM,  operaHons  management  etc.  

Corporate  Social  Responsibility  

“the  prevailing  approaches  to  CSR  are  so  disconnected  from  business  as  to  obscure  many  of  the  greatest  opportuniHes  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  opHonal  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  perspecHve  into  the  core  frameworks  it  already  uses  to  understand  compeHHon  and  guide  its  business  strategy”  –  Michael  Porter  

Human  Resource  Management  

$450-­‐550  billion  

Global  financial  crisis  was  HRM  

problem?  

Human  Resource  Management  Stakeholders  perceive  downsizing  differently,  corporate  representaHves  see  the  financial  implicaHons  whereas  employees  focus  on  the  social  implicaHons  

Social  impact  of  all  this?    

Challenges  facing  HRM?  

•  Fundamental  percepHon:  – Human  ‘resource’  management  –  people  are  seen  a  means  to  an  end  

– HRM  ‘obsessed’  with  processes  not  outcome  (e.g.  creaHvity/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  MulHnaHonal  CorporaHons  –  ILO  Guidelines  for  MNEs  –  ISO  26000  – UN  Global  Compact  – Global  ReporHng  ImitaHve    –  SA  8000  

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

•  PromoHon  of  new  and  stable  employment  –  organisaHonal  development  and  culture;  

•  Support  for  professional  development    –  industrial  relaHons;    

•  Support  for  collecHve  bargaining  in  the  absence  of  legal  requirements  

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

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

–  human  rights.  •  ProhibiHon  of  child  and  forced  labour  

Healthy  Workplaces  Framework  

The  HWP  and  the  six  themes  

Thank  you  

•  QuesHons?  

•  Nicholas.andreou@nohngham.ac.uk  

HRM  and  CSR:  employment  condiHons  Em

ploy

men

t Con

ditio

ns Terms of contracting and

Work schedules Legal recognition of work and transparency of employees’ working conditions Promotion of new and stable employment Work schedules, breaks and workload

Actions of company in relation to rotation, dismissals, and retirements

Impact and consequences of worker rotation Company’s actions in relation to dismissals Support to retiring employees

Labour market entrance Initiatives to support entry to organisations Non-discrimination in early career/initial employment Transition/advancement from initial employment

Wages and benefits Wage management policies Salary guarantees Acceptable company salaries Going above and beyond compliance with minimum wage legislation Worker benefits Social security Work-life balance orientated benefits

 

HRM  and  CSR  :  organisaHonal  development  and  culture  

Org

anis

atio

nal

Dev

elop

men

t an

d C

ulture

Training and development

Nature of training Professional development and long-term careers Support to continue and finish studies Local cooperation in training and development

Performance Management

Job performance reviews Individual and corporate performance-based variable compensation Internal promotion, recognition and retention of trained employees

Organisational Climate and Internal Communication

Workers’ job satisfaction and work climate Workers’ wellbeing Ethics training Communication systems Grievance system

 

HRM  and  CSR:  industrial  relaHons  In

dust

rial

rel

atio

ns Employee

representation and collective bargaining

Workers’ representation system Actions when no existence of trade unions in the area or company Negotiation, and adherence to collective bargaining agreements Collaboration with and support to workers’ representatives and trade union activities Level of conflicts within the company and conciliation machinery

Dialogue with workers and stakeholders during corporate restructuring

Policies enacted during changes in operations Dialogue and negotiation with trade unions and stakeholders prior to organizational changes Mitigation of adverse effects of corporate restructuring

 

HRM  and  CSR  :  OHS  system  O

ccupa

tion

al H

ealth a

nd

Saf

ety

(OH

S)

Sys

tem

Workers’ involvement in Occupational Health and Safety system and culture

Involvement of workers on Health and Safety and in Health and Safety Committees Dissemination of OHS information to employees Inclusion of OHS in collective agreements and strategic plans

Management of absenteeism, work fatalities and occupational diseases

Recording and Incidence of work-related injuries/accidents and absenteeism Perceived safety OHS compliance

OHS Training Employees’ access to OHS training and instructions Awareness raising and educational campaigns in OHS

OHS Prevention Safe facilities and processes Prevention and assistance against serious work-related diseases, psychosocial hazards, and community health problems OHS prevention for vulnerable groups OHS management system

OHS Protection Safety protective equipment and machinery Actions when incidents occur Voluntary medical examinations for workers

Violence, bullying and harassment at work

Policies prohibiting, and establishing preventative cultures regarding, violence, bullying and harassment Prevalence and impact of violence, bullying and harassment Protection mechanisms to investigate and respond after accusations of violence bullying and harassment Not toleration of corporal punishment or verbal, mental or physical coercion among disciplinary procedures –including security forces-

 

HRM  and  CSR:  diversity  and  non-­‐discriminaHon  

Div

ersi

ty a

nd

non-d

iscr

imin

atio

n Equal Opportunities (EO) Equality and diversity monitoring

Impact of discrimination No tolerance policy regarding discrimination Prevention: Specific strategies to prevent discrimination in Human Resource policies and guidance and recommendations from institutions Affirmative policies to achieve greater equality or remediate past discrimination Protection: Mechanisms to deal with potential cases of discrimination Respect and awareness-raising about vulnerable groups Establishing supportive mechanisms for minority groups within the community

Gender equality Includes all EO themes specifically relating to differing salaries between genders for the same work and provision of support to women’s’ work

Equal opportunities and support for disabled people

Includes all EO themes specifically relating to the provision of accessible workplaces for those with disabilities and the creation of jobs tailored to those with disabilities

Equal opportunities and support for ethnic, racial or religious minorities

Includes all EO themes specifically relating to ethnic/racial or religious minorities and the creation of a culturally sensitive environment for these groups

Non-discrimination by age

Includes all EO themes specifically relating to age

Non-discrimination to other vulnerable groups

Includes all EO themes specifically relating to individuals with HIV-AIDS Includes all EO themes specifically relating to relating sexual orientation Includes all EO themes specifically relating to any other vulnerable groups

Relation with agency workers

Assessment of legal status and adherence to laws, Human Rights, ILO Conventions and CSR systems of contractors, subcontractors and intermediaries Monitoring and ensuring fair working conditions for employees of contractors, subcontractors and intermediaries Non-discrimination to agency/outsourced/home workers comparing to company’s employees

Labour insertion for economically disadvantaged people

Diversity: Presence of people from disadvantaged backgrounds on staff Avoidance of discrimination and exploitation, and support to poor groups Promotion of social inclusion

 

HRM  and  CSR:  human  rights  H

um

an R

ights

Incorporation of human rights in risk and investment analysis

Strategic risk management evaluation of operations and investment decisions to prevent violations of human rights Evaluation of human rights when considering financial partners or the provision of capital

Human rights compliance of suppliers

Human rights selection criteria for suppliers and affirmative discrimination to most responsible allies Transparency about production processes and location of suppliers Monitoring mechanisms and assurance of human rights by suppliers Policies and procedures throughout supply chain to ensure the maintenance and improvement of human rights and CSR issues, and to avoid collaboration with entities carrying out HR abuses

Training in Human Rights

Quantity and type of training carried out and detailed in policies Level of knowledge of employees and managers regarding awareness, information, international standards, and CSR management

Respect for workers’ human rights

Policies, procedures and guarantees to ensure human rights are maintained throughout the company, especially in high risk sectors, products or countries Human Rights auditing and verification of internal compliance Consultation from local stakeholders and external organizations regarding human rights Non-discrimination at work from a human rights perspective

Freedom of workers’ organisation and collective bargaining

Respect and non-discrimination of employees’ rights of freedom of organization

Guarantees in countries which restrict workers’ organization to avoid such restrictions

Rejection of child labour

No support to child labour and no exploitative employment Prevention of child labour in the supply chain Decent work conditions for workers between 15 and 18 Remediation policies when child workers found Awareness raising against child labour and commitment to children’s future

Rejection of forced labour

Avoidance of forced labour Fair and transparent conditions regarding termination of employment and leaving work Prevention of indirect forced labour within the company

 

How  close  we  are  to  achieving  this  vision:  company  performance  

•  Compared  company  CSR  reports  to  this  framework  –  represent  thinking  by  key  policy  makers  in  CSR/HRM  

•  Sample  taken  from  the  FT  500  •  Considered  100  CSR  reports  maintaining  a  distribuHon  across  sector  (NACE  framework)  and  region  (WHO  regions:  AFRO,  AMRO,  EMRO,  EURO,  SEARO,  WPRO)  

Findings:  Company  reporHng  theme  level  -­‐  WHO  region  

0%  

20%  

40%  

60%  

80%  

100%  Employment  CondiHons  

OrganisaHonal  Development  and  Culture  

Industrial  relaHons  system  

OccupaHonal  Health  and  Safety  (OHS)  System  

Diversity  and  DiscriminaHon  

Human  Rights  System   AFRO  (6)  

AMRO  (26)  

EMRO  (6)  

EURO  (26)  

SEARO  (13)  

WPRO  (23)  

Industrial  RelaHons  System  

Findings  

•  EURO  – Most  comprehensive  and  based  on  best  pracHce    – High  level  of  naHonal  awareness  and  iniHaHves  regarding  CSR  and  OHS  –  many  stakeholders  involved  

 

Findings:  Company  reporHng  subtheme  level  -­‐  total  

0  

20  

40  

60  

80  

100  1  

2  3  

4  

5  

6  

7  

8  

9  

10  

11  

12  

13  14  

15  16  

17  18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  29  

30  

Total  Sample