Human Resource Management ( Hrm ) And Corporate Social Responsibility

Corporate Social Responsibility (CSR) is a very controversial topic. A question that has been debated for the past few decades is; is it corporately viable to introduce social responsibility as a proposed addition to the work ethic of business organisations. As well as, if adopting the framework of corporate social responsibility would yield positive improvements for those organisations.

In business, Anne Lawrence and James Weber (2014) identify enlightened self-interest as a corporation’s recognition that using corporate resource to serve others, including customers, employees, and the community as a whole, is in the best interest of the company. This social responsibility enhances the company’s image within the community, which increases both customer loyalty and satisfaction of employees. Some of the ways that businesses serve others is through philanthropy and backing environmental sustainability. Within his lecture on ethics and corporate responsibility, Dr. Kahlib Fischer (n.d.) encourages the importance of corporate social responsibility (CSR) in that it provides mutual benefit to both the organization and the community.

The existence of CSR performances guarantee the interest of stakeholders, which involving investors, sponsors, employees, consumers and suppliers. More specifically, for inner management, the workers can be treated respectfully and received well treatment. For example, the workers should be ethically treated when they make a contribution to the performance of organization. Which means the workers not only will improve the enthusiasm to the work, but also will hold the same attitude to handle their works and customers when they receive and be treated equally and ethically in the working environment. Consequently, the employees will make more profits by working in a comfortable workplace. Moreover, the performance of organization will be promoted dramatically by workers’ support.

Through these examples, it is clear that CSR can be embodied in a multitude of avenues affectively, and, that, constructive use of CSR has the potential to multiply throughout the respective industry that it is practiced in. 

Additionally, by practicing CSR, the internal wellbeing and job satisfaction of organisational members can also increase. Within Maslow’s hierarchy of needs (Maslow, 1943), the concept of ‘self-actualization’ (sic) and ‘self-transcendence’ is detailed as a human need to achieve goals outside oneself — an intrinsic desire to paint, create, innovate, and invent; therefore, it would be fair to suggest that figures in organisations who practice CSR have an easier time at fulfilling this step of the model. There’s also evidence revealing a positive correlation between organisational ethics and job satisfaction, indicating lower levels of Counterproductive work behaviours and absenteeism, and higher levels of Organisational citizenship (Viswesvaran, et al. 1998). Seemingly, as the company makes voluntary decisions for the better good, employees do the same. Furthermore, there’s also been findings showing that leaders of organisations can influence collective outcomes by supporting and acting out ethical behaviour (Koh, 2001). Meaning, people at the top of the organisation, can trickle down this ethical standard to create a culture that supports responsible behaviour. As in

n Karataş-Özkan, M., In Nicolopoulou, K., & In Özbilgin, M. (2014). Corporate social responsibility and human resource management: A diversity perspective.

CSR is the commitment of a company to behave ethically and to improve its employee’s quality of life, while contributing to economic development. Companies are expected to work with CSR and it can be rewarding for both customers and companies. However, CSR can be damaging for a company if it is performed incorrectly. For example, if the organization`s CSR efforts are focused on areas

Once a business realizes that it has gotten wrapped up in maximizing profit that it neglect ethics of care, the next step is to readjust and realign its core values internally and be more responsible to the environment in which they operate by showing societal care. Therefore, the aim of this report is to address the importance of realigning the business with ethics of care through involving in CSR activities, and as well as showing how these actions can impact on a company’s performance even if it may be demoralized in the society.

In this article, “The Truth About CSR,” authors Rangan, Chase and Karim stress the importance in aligning a company’s social and environmental activities with its business purpose and values (Rangan, Chase, & Karim, 2015, 41). Outcomes of CSR programs should be a “spillover” and not a primary focus of a business, expressing concern towards social responsibility and corporations failing to contribute to society accordingly (Rangan, Chase, Karim, 2015, 42). There is a great deal of importance in companies refocusing their CSR activities on a primary goal and in providing an organized process for bringing consistency and discipline to CSR strategies (42). Rangan, Chase and Karim want corporations to understand why it is important for them to evaluate their CSR activities and refocus them towards the goal of reinforcing the firm’s societal and environmental actions, while also ensuring their actions add to the overall purpose and values of the corporation. According to the authors, even though

CSR lacks universal methods. The United Nations Industrial Development Organization (UNIDO) mentions that it is important to draw a distinction between CSR as part of strategic business management concept and charity, sponsorships or philanthropy. The latter applications make valuable social impacts that enhance the reputations of the companies, however, CSR is a continual effort instead of an instance. A few features that CSR should focus on are: eco-efficiency, employee and community relations, environmental management, gender balance, responsible souring, anti-corruption, stakeholder engagement and human rights. Utilizing some of these key features a company can bring competitive advantages into the market place. Increased sales and profits from operational cost savings as well as improved reputation and brand image and customer loyalty can result from a well-defined CSR strategy.

HR based CSR policies are set in place to optimize the well being of employees by ensuring an ethical and stress-free work environment. Happy employees usually amplify profitability, which is exactly what any business needs.

University of Manchester, as a huge educational organization, is made up by thousands of staffs. Undoubtably, these staffs are the one to perform the social responsibility. This is where to show management on human resources is extremely vital.

Among modern century more companies are being interested about corporate social responsibility (CSR) as business reports proved that it became a fact in business growth. CSR is a mechanism accomplished to maintain the economic, legal, and ethical responsibility to the community as same as organization. Stakeholder theory enables managers to take account of these different interests in business ethical responsibility:

Employees, as members of an organization, contribute a lot to the enterprise’s manufacture, management and profitability. Corporations’ CSR activities definitely have an enormous influence on the qualities of employees’ behaviors. (Nan, X. & Heo, K. 2007, p.65) Employees may react negatively when they perceive a corporate injustice because that implies a mismatching with their values and threatens their psychological demands. CSR activities on employees are consisted of many aspects, such as skill training, working condition, payment as well as health and safety. Every corporation has its own human and labor policies.

Globalisation, as an integrated and independent world economy, has contributed to the rapid expansion of international trade and world’s economic growth (Paik & Vance, 2006; Mutsuddi, 2012). The increase presence of global firms is shifting domestic HR towards global HR in addition to carry out a wider span of HR responsibilities (Losey, Meisinger & Ulrich, 2005; Rao, 2010; Jie, 2011; Mutsuddi, 2012). The generation of cross-border labour market also had brought human resource management into an international context (Mutsuddi, 2012).

I believe that there are mutual beneficial aspects of constructing a two-way HRM-CSR relation, however this study will maintain a realistic approach and HRM has a stronger grasp in corporate affairs compered to CSR management. This is due to mainly two reasons: first, HRM has been widely developed in research since early 1920s being therefore more utilized within corporations while CSR is a concept taking momentum now and still broadly debated. Second, there is more evidence about HRM acting as a corporate facilitator to reach positive a profitable outcomes compered to CSR strategies which are still discussed among business and political parties. Therefore, in order to produce a conceptual tool that can be substantially used the emphases will be given to the role of HRM in developing CSR policies.