Corporate Social Responsibility

Steps 1 and 2

Step 1:  Vision, mission, values and strategy

Successful CSR requires a clearly articulated vision, mission and values.  The HR practitioner could initiate or support the development, or upgrade, of a vision, mission and values foundation if one does not exist or does not explicitly address CSR.  The foundation needs to incorporate elements of corporate social responsibility or sustainability in order for it to foster alignment.  Where a CSR ethic has not yet taken hold, the HR manager could champion the need and opportunity for a vision, mission and set of values and show how it can add ROI to the organization, why this could be both a good business strategy and a good people strategy.  The manager can bring the opportunities to the attention of the senior executive and the board on what it means, and why it makes good business sense.  These are the first steps to building CSR into the company’s DNA and into the organization’s operating and strategic framework.

Ideally employees and other stakeholders would be involved in the development of the corporate vision, mission and values, more of which will be said later. 

Values Case Study:  Novo Nordisk

The Novo Nordisk Way of Management forms the values-based governance framework for the company.  From vision to policies, it describes how people at Novo Nordisk put values into action and defines the principles for how the company does business.  It consists of the vision, which sets out the direction for the company.  It expresses what the company is striving for, how the company works and how it is guided by its values in its endeavours to find the right balance between commercial interests and acting as a responsible business.  Its Charter describes the company’s values, commitments, fundamentals and followup methods.  The values underpin the commitments to the triple bottomline and sustainable development.  The fundamentals are a set of 11 management principles to ensure focus on business objectives, customers, compliance, collaboration and sharing of better practices, and quality mindset.

Once the vision, mission and values framework is defined, the firm is ready to undertake the development of its CSR strategy.  This paper will not delve into the components of CSR strategy development, as that is a significant topic of its own.  The role of the human resource manager at this phase is central to all other steps:  it is critical that the human resource function be represented at the table in the development of the CSR business plan and strategic direction.  They have an important “people perspective” to contribute and will be involved in implementing key measures.  Particularly in those firms where CSR is housed in the human resource department, the HR manager has a key role in CSR strategy development.  HR is a strategic partner in the organization and as such, can help drive the formulation of the CSR strategy.

At Vancity Credit Union, a Canadian leader in CSR, HR was functionally responsible for CSR for a number of years, before it moved to Strategic Planning and later to its own department under the heading “Community Leadership”.  At the 2010 Olympic and Paralympic Winter Games CSR (in the name of sustainability) was assigned to the HR function from the outset.  This responsibility secures the mandate for HR leadership in CSR strategy development.  At the least, the HR executive should be one of the members of the cross-functional team established to articulate the CSR agenda.

Step 2:  Employee codes of conduct

The HR function is typically responsible for drafting and implementing employee codes of conduct.  As such, HR managers hold the pen on the principles contained in the employee codes.  Since a number of recent high profile corporate frauds, boards of directors have become very concerned about the ethical culture within their organizations, looking for 100% sign-off on and compliance with codes of conduct which articulate their ethical values.  This is an ideal home for the expression of an organization’s commitment to socially and environmentally-based decision-making as it is one of the rare documents which all employees are bound by and come into contact with. As such it is a key tool for cultural integration of CSR norms.  It is important to avoid rhetoric and undefined terms such as “sustainability” and “CSR”, but to clearly enunciate the conduct standards expected of employees.  3M’s Business Conduct Policy (see Text Box) is a case in point.

3M Business Conduct Policy includes environment, health and safety

3M has a number of components in its Business Conduct Policy, one of which relates to environment, health and safety (EHS).  Its policy statement mandates employees to comply with 3M EHS policies, including preventing pollution at the source, developing products that have a minimum effect on the environment, work to improve energy efficiency, and incorporating appropriate safety and health considerations in daily job duties and business decisions.  It cautions employees to avoid “missed opportunities for preventing pollution and reducing waste; missed opportunities to improve energy efficiency; unsafe activities and workplace conditions; and suppliers, outsource manufacturers and service providers who do not share 3M’s environmental, health and safety values”.

From:  3m Business Conduct Policies retrieved Feb. 14, 2009

Some firms establish an ombuds office to adjudicate employees concerns around corporate alignment with company values, a further means of fostering organizational alignment on CSR.  (CBSR, 2003, p. 4).

Rate this page

The content of this page was useful to me.

Share this page

To share this page, just select the social network of your choice: