Corporate Social Responsibility and Human Resource Management
Onete, Dina, and Vlad (2013) defined corporate social responsibility (CSR) as a business model that incorporates self-policing. The business model of the organization meets laws, ethical standards, and international norms (Onete, Dina, &Vlad, 2013). Schoemaker, Nijhof, and Jonker (2006) further defined CSR as going beyond the required laws and by being good corporate citizens. Onete, Dina, and Vlad (2013) stated that by exhibiting these characteristics in the business model, the organization will increase the likelihood of long-term profitability. Demonstrating social responsibility can advance economic growth because social actions can lead to profit that will cover economic costs. Also, demonstrating responsibility toward employees can make them more efficient, be more responsible toward investors, and be willing to invest themselves into the organization (Onete, Dina, &Vlad, 2013).
Pless, Maak, and Stahl (2012) stated that human resource management has a critical role in establishing social responsibility and sustainability in the organization. Pless, Maak, and Stahl (2012) stated that
successful pursuance of social and environmental objectives is heavily dependent on corporate values, organizations must design HR processes that increase employee value awareness and recognition of stakeholder concerns. These include hiring for attitudes and values, performance management systems that assess employees on how much they contribute to the social performance of the organization, training and development activities that develop skills in receptive stakeholder engagement.
Based on this theory, HRM can affect ethical culture and social performance of the organization (Pless, Maak, & Stahl, 2012).
Schoemaker, Nijhof, and Jonker (2006) posited that three strategies for CSR exist: risk orientation (outside-in), identity orientation (inside-out), and world view orientation (integrated). Risk oriented CSR is focused on working with the external environment. The organization has high visibility. Environmental and medical organizations often use this strategy.
Focuses of risk orientation include examining the stakeholders to determine their needs and expectations (Schoemaker, Nijhof, &Jonker, 2006). In identity orientation, the strategies to relate strengthening organizational identity and communicating with the external environment are detailed. Organizations with this orientation are not controversial like medical or environmental organizations could be. These organizations are interested in transparency (Schoemaker, Nijhof, &Jonker, 2006). In a world view orientation, the organization is concerned with not only its own CSR but also with the CSR of stakeholders like suppliers, governments, and consumers. Schoemaker, Nijhof, and Jonker, (2006) stated that
organisations adopting a world-view orientation on CSR make their own organisation subservient to contributing to the gradual solution of an important societal issue. These companies are also called double goal companies because they explicitly acknowledge issues like animal rights or employee equality as company goals next to an economic objective.
Understanding the types of CSR and the role of HRM in CSR is important for individuals developing training for an organization. This week, one of your discussions is on CSR. Ask yourself how your organization handles CSR and what improvements could be made.