Human Resources for SustainabilityReader Rating: 4.00

Issue Brief and Management Checklist
Report for Industry Canada

March 2009

Disclaimer:
This paper does not address typical employee performance indicators adopted by leading CSR firms, such as diversity and inclusion; health, safety and wellness; work-life balance; employee benefits and engagement; anti-discrimination, turnover; labour-management relations, professional development, employee volunteering, etc.  Rather, the focus of this paper is on the role the human resource practitioner can play to embed a CSR ethic throughout the organization.  It is accepted that employee treatment – as monitored through some of these key indicators – is a strong indicator of a firm’s CSR commitment.  However, this is not the purpose of this paper.

Table of Contents

Objective

At a Glance

Introduction

Trends and Drivers

The Business Case

How to: The Basics of Integrating CSR into HR Management

• Step 1: Vision, mission, values and strategy
• Step 2: Employee codes of conduct
• Step 3: Workforce planning and recruitment
• Step 4: Orientation, training and competency development
• Step 5: Compensation and performance managment
• Step 6: Change management and corporate culture
• Step 7: Employee involvement and participation
• Step 8: CSR Policy and Program Development
• Step 9: Employee Communications
• Step 10: Measurement, Reporting - celebrating successess along the way

Conclusion

Bibliography

Acknowledgements

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Objective

To understand the foundational elements that need to be in place to foster a high performance CSR (corporate social responsibility) organization and develop a framework or roadmap for firms wishing to become a high performing CSR organization.

At a Glance

• Human resource professionals have a key role to play to help a company achieve its CSR objectives.  Employee involvement is a critical success factor for CSR performance.  Human resource managers have the tools and the opportunity to leverage employee commitment to, and engagement in, the firm’s CSR strategy. 
• High performing CSR organizations foster a culture of CSR and fully integrate CSR throughout their operations, rewarding and incentivizing CSR decisions and initiatives.
• Employees prefer to work for organizations aligned with their values; thus, incorporating CSR into the employee brand can enhance recruitment and retention, particularly in tight labour markets.
• CSR can be applied to the HR toolkit, resulting in a roadmap or pathway for human resource practitioners to follow who wish to contribute to the achievement of their organization’s sustainability and business aspirations, thereby improving social and environmental conditions locally and globally.

Definition of CSR and Human Resource Management

Corporate social responsibility (CSR) is the balanced integration of social and environmental considerations into business decisions and operations.   CSR and sustainability are used interchangeably throughout this paper, with a focus on the CSR terminology as most salient to Canadian organizations.

Human resource management is the organizational function that deals with recruiting, managing, developing and motivating people, including providing functional and specialized support and systems for employee engagement and managing systems to foster regulatory compliance with employment and human rights standards. This paper does not cover the regulatory, payroll, benefits and other transactional aspects of the human resource mandate.

Most, if not all, of the conclusions of this paper can apply equally to private sector, public sector and non-profit organizations, including large and small organizations.

“The argument for HR people taking the CSR agenda seriously can be summarized as follows:

• Companies are increasingly required to take account of the impact of their activities on society
• The credibility of CSR is dependent on delivery, not rhetoric
• HR is responsible for many of the key systems and processes (e.g. recruitment, training, communications) on which effective delivery depends
• HR people have relevant knowledge and skills in relation to organizational learning and cultural change
• Managing trust and risk raises fundamental issues about how people are managed
• Employees are a key stakeholder in any CSR program.” (CIPD, 2002, p. 15)

Implications for the unionized workplace:

This paper does not directly address the implications of CSR integration within a unionized workplace.  Some would argue that a highly integrated CSR wokplace which had robust employee engagement and high levels of employee satisfaction as a result of a CSR strategy and values framework would reduce employee interests in unionization.  Others might argue that a CSR framework aligns with the ideals of the labour movement.  Regardless of one's perspective (and there are many), this paper adopts the CSR premise that genuine employee involvement in CSR is key.  Thus this paper and its recommendations transcend issues associated with unionization.

When CSR is embedded in mainstream business strategy it becomes a mechanism for unlocking human potential.

CSR – HR = PR
If employees are not engaged, corporate social responsibility becomes an exercise in public relations.  The credibility of an organization will become damaged when it becomes evident the company is not “walking the talk” -- Adine Mees and Jamie Bonham, Canadian Business for Social Responsibility

Sustainable human resource management is the contribution HRM can make to sustainable development.