The HRA Editorial - Sep 2008: CSR and HR---The Tie That Binds

  • 08 Mar 2009 18:41
    Message # 125775
    Jun (Administrator)

    It used to be that business was just all about profits.

    Nowadays, from top global brands to mid-level enterprises, companies are firmly setting their feet on a wide range of activities that span everything from volunteering in the local community and looking after employees' welfare, to building homes for poor families in third world countries, and forest and wildlife conservation projects.

    Simply put, corporate social responsibility (CSR) is regarded as the private sector's way of integrating the economic, social and environmental imperatives of their business activities. CSR, in other words, is primarily a conscious effort on the part of corporate entities to create innovative and proactive solutions to societal issues which they may have direct or indirect interest either as stakeholders or beneficiaries.

    What's in it for companies? For one, with the recent scandals rocking major companies they must work harder to protect not only their reputation but the very markets in which they operate. Moreover, of late there has been a growing interest, if not pressure, for private entities to play a more active role in providing services that the state by itself cannot provide adequately, or in confronting issues that national governments on their own have not been able to solve.

    However, it must be emphasized that CSR is more than just philanthropy, community service, legal compliance, or public relations. And as with any process based on collective human activities, CSR is not a panacea. In different countries and organizations there will be different priorities and how they value one over others ultimately determines how business is run.

    Among Western companies development projects such as adult education, anti-HIV campaigns, and giving of aid to local organizations and impoverished communities in developing countries have become the most typical approach to CSR. Note, however, that there is also the fact that a lot of companies which purport to promote CSR are also notorious for harmful business practices (e.g., oil, energy, and mining companies for example).

    Japanese companies, on the other hand, are more likely to confine their scope to environmental issues and less likely to address issues that are outside of its traditional system. Observers imply that this is due to the existence of a strong cultural resistance (again!) and the difficulty of coming in terms with the total collapse of the traditional system.

    But if it is any consolation, corporate managers, including HR, are also finding the business of trying to look good becoming more and more of a necessity than a luxury. From the HR standpoint, we have seen than CSR has been used in attracting and retaining talents as part of an organization's employer-of-choice branding.

    There is nothing wrong with that. In fact, I believe it is a wise thing to do so. But HR needs to do its part as well by fulfilling its pivotal role in CSR. That is, instead of being a mere observer, HR can do a more active role in telling and living the message of CSR.

    In fact, after attending The Faces of CSR Symposium recently hosted by the American Chamber of Commerce in Japan or ACCJ (kudos, by the way, to the organizing committee for doing a great job!), I can't help but realize that CSR can be regarded as an HR issue and as such, it further supported my belief that HR does need to play a more central role in CSR.

    In that symposium, speakers and panelists shared their best practices and a number of them are HR-related. As an example, Shinsei Bank not only uses CSR as a way to attract and retain talents but it also creatively incorporates the organization's CSR philosophy into the company's on-boarding programs for new graduates as well as continuing education and volunteerism programs for their current employees.

    British Petroleum even made CSR as one of the factors in an employee's performance scorecard and linked its results to the performance bonus while The Dow Group worked on introducing work-life balance initiatives, creation of a discrimination-free workplace, and a more diverse workforce.

    The above are just a few examples of how HR can contribute to the CSR drive and I believe that there are many other creative ways that HR can come up with. These companies already showed that there is a tie that binds HR and CSR. The logical next question is, are you, as an HR professional, ready to further strengthen that tie that binds? If so, then act now.---JK

     

    To download the full white paper on this topic, click here.

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