This week's topic is 'Corporate Social Responsibility,' which is an organisational trend that has been developing for some time now. Newly emerging aspects are added to it frequently. It is my opinion that this is a constantly evolving subject, which organisations must necessarily take into account and address.
What is Corporate Social Responsibility ('CSR')?
Take a few moments to go through these definitions of CSR.
"Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental."
(Fernando, 2022)
"People today are more socially conscious than ever, and buyers are prepared to pay more for sustainable products. Companies can report their efforts to buyers and other stakeholders by developing a CSR model. Promoting CSR has become a critical part of brand management. The activities in a CSR strategy include lowering the business’s carbon footprint, corporate volunteering, improving labour practices, and engaging in charity. For example, Microsoft aims to reduce its carbon footprint and help customers do the same. Verizon has provided school children with technology to help them engage in virtual learning, thus reducing the digital divide."
(O' Neill, 2023)
"Corporate social responsibility (CSR) is the idea that a business has a responsibility to the society that exists around it."
(Stobierski, 2021)
"Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders."
(UNIDO, n.d.)
This video by Harvard Business School Online can help you learn more about CSR.
I suggest here in my own words, that CSR is any undertaking of an organisation to act in a socially responsible manner, having due regard to environmental, philanthropic, ethical or legal, and economic responsibilities.
It stems from the internal framework, and culture of a business (O'Neill, 2023).
Types of Corporate Social Responsibility.
While there are a number of CSR models available for organisations to use as a guide, such as Carroll's Pyramid, the three-domain model, the Intersecting Circle model, and the Concentric Circle model, traditionally, CSR is categorised into 4 types.
They are environmental, philanthropic, ethical, and economic responsibilities.
1. Environmental Responsibility
This refers to organisations believing that they have a duty to protect the environment and deliberately behaving in an eco-friendly manner as much as possible. This is called 'environmental stewardship' in some companies (Stobierski, 2021). I suggest here, that a key component that emerges in this area of CSR, is that of sustainability. The
United Nations Sustainable Development Goals have also contributed to making these efforts plausible.
Organisations that seek to fulfil their environmental responsibilities can do so by way of internal policies, that reduce harmful practices such as single-use plastics, waste disposal, water wastage; regulate energy consumption by way of renewable energy, switching to sustainable resources, encouraging recycling and reusing products; offset negative environmental impacts by initiatives such as growing a garden, planting trees, organising beach clean-ups, and funding research related to environmental causes (Stobierski, 2021).
A noteworthy example of an organisation's commitment to sustainability and environmental responsibility is LEGO. Lego aims to help children learn through creative play while fostering a healthy planet (Gavin, 2019). Here's three things they are doing in this regard.
a. Lego Replay is one initiative whereby, LEGO is contributing towards creating a circular economy. Here, consumers can pass on their pre-loved LEGO bricks to children in need. This encourages reuse, which is undoubtedly sustainable (Lego, 2022). b. Use of sustainable materials - Using bio-polyethylene which is a soft, durable and flexible plastic derived from Brazilian sugarcane which is a bio-based material for their bricks. There is current research into using recycled PET plastic bottles and a prototype has been developed and in the testing stage (Lego, 2022). c. Sustainable packaging - Use of LEGO boxes made from cardboard where 75% of all cardboard used comes from recycled materials (Lego, 2022); Engaged in switching from single-use plastic bags to paper-based bags in LEGO boxes with the aim of phasing out single-use plastics within the next three years (Lego, 2022); Aims to make all packaging from sustainably sourced materials that are renewable or recycled, and certified by the Forest Stewardship Council® by the end of 2025 (Lego, 2022).
Moreover, LEGO was named a World Wildlife Fund Climate Savers Partner, where it marked its pledge to reduce its carbon impact, becoming the first, and only, toy company to do so (Gavin, 2019).
Another interesting example of an organisation's commitment to sustainability and protecting the environment is Alaska Airlines. In what would be a massive undertaking for a company that burns 750 million gallons of fuel per year (Gomez, 2022), the airline has pledged to take the following actions, among others:
a. Achieve net zero carbon emissions by 2040, with near-term 2025 targets to maintain carbon neutral growth from 2019 (Alaska Airlines, 2021).
b. Use technology to optimise flight routes for the purpose of emissions savings (Alaska Airlines, 2021).
c. Cut climate emissions from the ground equipment in half (Alaska Airlines, 2021).
d. Continue the industry-leading recycling program, and source more sustainable packaging for inflight service (Alaska Airlines, 2021).
e. Offset water use with investments in local ecology and habitats (Alaska Airlines, 2021).
f. Formation of Alaska Star Ventures which is an investment arm for the purpose of assisting with emerging aviation sustainability technologies (Gomez, 2022).
2. Ethical Responsibility
This refers to organisations taking steps to operate in a fair, equitable and ethical manner, having due regard to human rights, laws, and custom. This means the fair treatment of all stakeholders of your business (Stobierski, 2021).
An example of an organisation's CSR effort to fulfil its ethical responsibility is that of
Levi Strauss & Co. which is a successful fashion brand that has been taking measures towards ensuring ethical and sustainable supply chains since 1991 (Gavin, 2019).
A few actions they are taking towards this end are:
a. Creation of the Terms of Engagement in 1991, a comprehensive code of conduct that is regularly updated ( Gavin, 2019).
b.
The Worker Wellbeing Initiative - established in 2011, Levi partners with its suppliers and local organisations for the purpose of implementing programs to empower workers financially, to improve health and family wellbeing of workers, to create equality and acceptance (Levi Strauss & Co, n.d.). As of 2020, the program has helped 195,000 workers in 118 factories, in 16 countries (Levi Strauss & Co, n.d.).
c.
LS&CO. Service Corps - where employees are encouraged to apply for a
week-long volunteer immersion program. Here, employees get the opportunity to visit a factory, and participate in community service projects. It helps employees to get a better understanding of the realities of the supply chain (Levi Strauss & Co, n.d.).
d.
Voices for Change - where employees are encouraged and trained to become advocates for causes that they are passionate about, such as climate change, equality, and refugee rights (Levi Strauss & Co, n.d.).
Another example of this is Starbucks and their commitment to ethical sourcing. A few actions Starbucks is taking towards fulfilling its ethical responsibility are:
a. Coffee and Farmer Equity (C.A.F.E.) Practices - Launched in 2004 in collaboration with Conservation International as one of the coffee industry's first ethical sourcing standards. This is a verification program which measures farms in terms of economic, social and environmental criteria. Its aim is to promote transparency, profitability, and sustainability of coffee growing practices (Starbucks, 2023). b. Other commitments include - providing farmer loans; open-source agronomy work; maintaining farmer support centres; providing origin grants to support women and girls; providing support to the Mercy Corps' Community Health and Advancement Initiative Project to provide youth vocational training, health services and improved water access to more than 100,000 people from 39 rural Indian communities in the Darjeeling and Assam regions, as well as in Guatemalan cardamom-growing villages (Starbucks, 2023).
3. Philanthropic Responsibility
This refers to a business proactively taking steps to make the world and society a better place (Stobierski, 2021). In other words, contributing to the betterment of society.
I suggest here, two features of this category of responsibility. One is that it involves donating funds to worthy causes which may or may not relate to the business model and, the other is that it is mainly focused on improving the public image of the organisation.
Examples of this would include actions such as making donations to educational programs, health care initiatives, natural disaster relief efforts, and support services during the pandemic.
A recent example of this was the adoption of Suwaseriya Ambulances by a number of corporates in Sri Lanka to help boost the healthcare service, under the 'Adopt an Ambulance' program (Abayasingha, 2023). John Keells Holdings, Sampath Bank, Dilmah, AMW, MAS Holdings, Dialog, Brandix, Hemas, CIC, Sunshine Holdings and CBL were amongst the donors (Abayasingha, 2023).
4. Economic Responsibility
This responsibility deals with the practice of an organisation backing all of its financial decisions in its commitment to do good for the environment, in an ethical and philanthopic manner (Stobierski, 2021). In other words, this is where the organisation makes financial decisions based on its commitment to do good and create positive impacts by its way of doing business.
A good example of this would be companies investing in blockchain technology solutions for agro-traceability, which provides stakeholders with access to information on food safety, ethical sourcing practices, conformity with regulations and standards, from farm to table. Another would be companies such as LEGO and MAS investing in Research and Development to produce sustainable packaging and recycled products which do not harm the environment. Yet another example, is the previously noted formation of Alaska Star Ventures by Alaska Airlines, which is an investment arm for the purpose of assisting with emerging aviation sustainability technologies (Gomez, 2022).
I suggest here that economic responsibility will often overlap with the types discussed before.
ISO 26000
Introduced in 2010 by the International Organisation for Standardisation (ISO), ISO 26000 is the standard on 'Social Responsibility.' It provides guidance and clarifications on what social responsibility is, and what is entails. It also supports an organisation to assess its commitment to sustainability and its overall performance (ISO, n.d.). This standard helps an organisation to translate principles into effective practical actions, irrespective of the organisation's size, location, or business model (ISO, n.d.).
Benefits of Corporate Social Responsibility.
1. It drives profit - For example, an organisation that no longer sources materials from a farm that treats its farmers inhumanely, will find this paying off when customers learn of the organisation's dedication to human rights and chooses it over its competitors (Harvard Business School Online, n.d.).
2. It drives internal innovation - When employees are expected to think along the lines of sustainability and in a socially conscious manner, they automatically begin to think outside the box, depart from how it is usually done, scrutinise inefficiencies and search for better alternatives. This is how innovation grows (Harvard Business School Online, n.d.).
3. Improves environment and supply risk - Investing in sustainable practices can pay off by reducing environmental and supply risks on a later date. Such as, investing in renewable green energy can offset some of the risks and potential losses associated with skyrocketing fuel prices, or the scarcity of fuel in the first place (Harvard Business School Online, n.d.).
4. It attracts and retains employees - CSR stems from an organisation's culture and internal framework. Where employees are valued and their rights and aspirations are protected and empowered, and their ideas are acknowledged, they will remain with the organisation for a long time. This can help attract new talent as well, as it goes without saying that employees search for conducive work environments.
5. Builds brand loyalty, positive publicity, and gives a competitive advantage - Consumers are increasingly motivated to buy from sustainable and ethical brands. For example, we often find ourselves checking the labels of cosmetic products to ensure that they are cruelty free. Adopting sustainable business practices and socially responsible efforts will help an organisation to reach new, socially responsible market segments and gain a competitive advantage over them. In the meantime, you will also be building brand loyalty among your usual customer base (Harvard Business School Online, n.d.).
6. Avoid legal problems - Cutting corners in pursuit of profit, failing to exercise due diligence, and failing to comply with laws and regulations that are required for the products and services the organisation offers, can all lead to severe legal penalties and sanctions (Hill, 2019). CSR helps to ensure that your business is compliant and doing the right thing, thereby, avoiding legal issues.
Shortcomings of Corporate Social Responsibility Models.
The challenge that CSR models pose to organisations is a strategic one. Not all CSR initiatives are easy to assess, because not all benefits that an organisation achieves via CSR efforts are financially translatable back to the company (Fernando, 2022). Investopedia provides an easy to understand example of this, and that is the challenge a company may encounter when attempting to assess the positive impact to a company's brand image by its participation in a reforestation initiative (Fernando, 2022).
I suggest here that a combination of CSR with an Environmental, Social and Governance (ESG) framework may prove to be a better alternative in this regard. I invite you to read on ESG to get a better understanding of how this could work for your organisation.
The Link Between CSR and HRM.
As much as this article is about CSR, it is important to understand the connection it shares with the HRM function in an organisation. After all, this is an HRM blog.
As I've said before, CSR is essentially created internally and within the culture of the organisation. Therefore, HRM plays a significant role here. It is within the mandate of the HRM function to ensure CSR is understood by the employees and other internal stakeholders and developed within an organisation. Given that the HRM function has a significant stake in building an organisation's culture, it can be suggested that it has a duty to inculcate CSR values within its culture. Moreover, HR professional education now includes training in CSR, and HRM is increasingly seen as an implicit steward for good work (Voegtlin and Greenwood, 2016). These factors indicate an inherent link between the two.
Conclusion.
Organisations can no longer avoid the topic of CSR, as it is constantly evolving with newer issues and concerns. Doing business is no longer limited to making profit, but rather extends to creating a positive impact on society.
The HRM function plays a key role in defining CSR and inculcating CSR values within an organisation's culture. As such, this is an important topic to be considered by any HR professional or student.
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Reference Links:
Abayasingha, D. (2023). Corporates rush to ‘Adopt an Ambulance’ drive to boost healthcare service. [online] Available from https://www.ft.lk/front-page/Corporates-rush-to-Adopt-an-Ambulance-drive-to-boost-healthcare-service/44-747147 [Accessed 16 April 2023]
Alaska Airlines (2021) Flying with purpose: Alaska sets new climate goals, including net-zero carbon emissions by 2040. [online] Available from https://news.alaskaair.com/sustainability/alaska-airlines-net-zero-carbon-goals/ [Accessed 16 April 2023]
Fernando, J. (2022) Corporate Social Responsibility (CSR). [online] Investopedia. Available from https://www.investopedia.com/terms/c/corp-social-responsibility.asp [Accessed 15 April 2023]
Gavin, M. (2019) 5 Corporate Social Responsibility Examples That Were Successful. [online] Available from https://online.hbs.edu/blog/post/corporate-social-responsibility-examples [Accessed 15 April 2023]
Gomez, R. (2022) 7 inspiring examples of corporate social responsibility. [online] Sprout Social. Available from https://sproutsocial.com/insights/corporate-social-responsibility-examples/ [Accessed 16 April 2023]
Harvard Business School Online (n.d.) How to Be a Purpose-Driven, Global Business Professional [online] Available from https://online.hbs.edu/Documents/how-to-be-a-purpose-driven-global-business-professional.pdf?_ga=2.22759739.1465607976.1681642763-1751530584.1681642763 [Accessed 15 April 2023]
HBS Online (2022) What Is Corporate Social Responsibility (CSR)? [online] Available from https://www.youtube.com/watch?v=ZoKihFLCY0s [Accessed 15 April 2023]
Hill, B. (2019) The Advantages of Ethical Behavior in Business. [online] Available from https://smallbusiness.chron.com/advantages-ethical-behavior-business-21067.html [Accessed 16 April 2023]
Levi Strauss & Co. (n.d.). People. [online] Available from https://www.levistrauss.com/values-in-action/social-impact/people/ [Accessed 16 April 2023]
Lego (2022) Sustainability [online] Available from https://www.lego.com/en-us/sustainability/environment/replay [Accessed 15 April 2023]
Levi Strauss & Co (n.d.). Worker Well-being. [online] Available from https://www.levistrauss.com/how-we-do-business/worker-well-being/ [Accessed 16 April 2023]
MAS Holdings. (n.d.). Ocean Plastics, Recycle Clothing, & Circular Fashion - Our Work. [online] Available from https://www.masholdings.com/plan-for-change/products-changed-for-good/ [Accessed 16 April 2023]
O' Neill, S. (2023) What is the difference between CSR and ESG? [online] Available from https://www.thecorporategovernanceinstitute.com/insights/lexicon/what-is-the-difference-between-csr-and-esg/[Accessed 15 April 2023]
Starbucks (2023) Starbucks Ethical Sourcing: Starbucks Coffee Company. [online] Available from https://www.starbucks.com/responsibility/sourcing/ [Accessed 16 April 2023]
Stobierski, T. (2021) Types of Corporate Social Responsibility to Be Aware Of. [online] Available from https://online.hbs.edu/blog/post/types-of-corporate-social-responsibility?utm_medium=social&utm_source=youtube&utm_campaign=blog [Accessed 15 April 2023]
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Voegtlin, C. and Greenwood, M. (2016). Corporate social responsibility and human resource management: A systematic review and conceptual analysis. Human Resource Management Review, 26(3), pp.181–197. doi:https://doi.org/10.1016/j.hrmr.2015.12.003 [Accessed 16 April 2023]
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Great article, made easier to understand by using real world examples. Very good one!
ReplyDeleteThank you for your kind feedback. I'm glad that the examples I've used were helpful in understanding the different types of responsibilities.
DeleteA good article Thanuki. The link between Corporate Social Responsibility (CSR) and Human Resource Management (HRM) is a critical aspect of contemporary organisational management. CSR refers to an organisation's commitment to addressing social and environmental issues, while HRM involves the strategic management of human capital within an organisation. Research has shown that CSR practices can have a positive impact on HRM outcomes such as employee engagement, job satisfaction, and organisational commitment (Vlachos, Panagopoulos, & Rapp, 2014). For example, when organisations demonstrate a genuine commitment to CSR through environmentally responsible practices, employees may perceive their organisation as socially responsible and be more motivated to contribute to its success (Aguilera et al.,2007). Thus, integrating CSR initiatives into HRM practices can enhance employees' perceptions of their organisation and contribute to improved HRM outcomes.
ReplyDeleteThank you for taking the time to engage with my article, Lasni and for the valuable insights on the links between CSR and HRM. I agree with you on all that you have said, as they are excellent extensions to the ideas I have presented above.
DeleteWhile I have my doubts about the genuineness of CSR, it certainly is beneficial from an HRM perspective to keep people motivated and make them feel like they are doing something worthwhile. While there are many examples of companies doing great work through CSR, there are also many of smoke and mirrors. Many also utilize it to take advantage of tax efficiencies. Others also pay lip service to it to tick off the requirements of their ESG maniac investors.
ReplyDeleteBut from an HRM perspective, yes, it does work to get people united towards the cause of a business. Also, this comment does not in any way take away from the genuine good work done by businesses to support communities - though this genuinely good work is, in my experience and view, less publicly displayed and discussed.
From a Human perspective though, I also wonder what individual employees think of their free time being encroached upon, in efforts to masquerade on behalf of the good will of a corporation. Personally, I would not be thrilled, but I'm sure there are many who would see no problem, and even like engaging in such activities. Thus, do you believe that it's right for corporations to encroach officially or unofficially on the free time of their employees to do work that ultimately benefits the company only and not necessarily the employees? Or do you feel, where that is the case, that employees should be compensated, financially or otherwise, in some measure at least, for their efforts?
Kudos on a very nicely written article, though! :-)
Thank you for your kind feedback and insights.
DeleteLet me try and respond to each of your points of contention. Firstly, on the point of many companies using CSR as a means of tax evasion or avoidance, or to tick off the requirements of investors, my response to you is, yes, like any system which can be used negatively, this too can be used to do the opposite of good. In terms of tough investors with strict CSR pre-requisites, I would like to think of it as substantially acceptable, as whether the company wants to or not, it will nevertheless be supporting a good cause in the name of securing and maintaining an investment. The net effect being the common good, I have nothing against this.
Regarding your second question on whether it's right for corporations to encroach officially or unofficially on the free time of their employees to do work that ultimately benefits the company only and not necessarily the employees, my response is three-fold. Firstly, I doubt that employees are expected to work on CSR projects in their free time. What does happen, and is supposed to happen, is that a company wide stance is taken regarding a certain course of action to meet a selected CSR objective, and employees are expected to work in line with it. For example, where a company decides to switch to sustainable materials for the toys they produce, R&D needs to turn their efforts towards innovating, prototyping and testing to that end, Marketing needs to revisit their work to bring this message across creatively etc. Secondly, it is companies that are established and financially able that take on CSR work, as such these would form a part of the internal framework of these organisations. Additional work would usually take place on a voluntary basis, which is entirely on the employee to choose to take on. Therefore, I do not think that there is any encroachment of an employee's free time as such. Thirdly, I do not agree with you that involvement in CSR work does not benefit an employee. It is widely recognised at present by organisations as well as educational institutions when individuals take initiative and are involved in such work.
Regarding your third question as to whether employees should be compensated, financially or otherwise, in some measure at least, for their efforts, my response is, an extension to my response to the second question. Given that CSR efforts form part of the internal framework of an organisation, it is the duty of a company to compensate or reimburse employees for special efforts made in this regard. Ideally, I would think that a system similar to that of overtime, or allowances for transport and food etc. could be considered here.
Hope this answers your questions, to some extent.
Thank you for your detailed response. I am not disputing benefits to the individuals , overall. And the csr I was referring to with regard to encroachment is of the type of these things like beach cleanups and other such activities that are often scheduled for off time and attendance is either compulsory or compulsory in all but name. I wasn't referring to strategic initiatives that call for a change in the business approach, many of which are likely good.
DeleteAs for esg investors, whether these sustainable things they demand and promote are beneficial or not is debatable. Take the case of mines in Africa that use child and slave labour to supply the demand for batteries to cater to the demand for EVs/solar which are considered to be sustainable, amongst others.
I understand what you mean by beach clean ups and tree planting campaigns encroaching on employees' time. Most companies have these on a voluntary basis. Where it is compulsory, it is quite unfortunate, and not what true CSR is meant to be. The goal of environmental responsibilities and related conservation efforts should be to preserve and protect the environment, rather than to meet a checklist. Where organisations focus on voluntary engagement and education, it may be possible to achieve this goal sustainably and effectively.
DeleteRegarding your comment on the ESG investors, again, I believe that your comment focuses on the off chance, negative side of investor requirements. My aim in this article was to cover what CSR is expected to be, the benefits of it being used to positively impact society, and the overall benefits of this to the organisation. As I've said above, there is nothing stopping companies from resorting to misguided approaches. Where they do so, and are caught, the penalties and sanctions are heavy.
Agreed.
DeleteThe article is well written and provides insightful information about the importance of Corporate Social Responsibility (CSR) in Human Resource Management (HRM). The writer has done an excellent job of explaining the connection between CSR and HRM, and how they can work together to achieve organizational goals.
ReplyDeleteIt would be great if you could provide some real-world examples of companies that have successfully integrated CSR into their HRM practices. This would help to illustrate the benefits of CSR for both the organization and its employees, and provide some practical insights for HR professionals looking to do the same.
Hi Prasadi, thank you for taking the time to read my article and your kind feedback. I believe I have already provided a number of real world examples of CSR in organisations. For example, the Levi Strauss example talks about 'Terms of Engagement' and the 'Worker Wellbeing Initiative' which essentially stem from the HRM function, if you think about it. I have also provided a few examples of internal CSR policies which also come from HRM and are implemented by HRM.
DeleteWell written Thanuki. Corporate social responsibility (CSR) is an important aspect of modern business, and it involves the responsibility of organizations to consider the impact of their activities on society and the environment. HRM plays a vital role in implementing CSR initiatives, as it is responsible for managing the workforce and ensuring that employees are aware of the company's CSR policies and practices (Ehnert, Harry, & Zink, 2013).
ReplyDeleteHRM can promote CSR by fostering a culture of ethical behavior and social responsibility within the organization. This can be achieved through training and development programs that educate employees on the importance of CSR and how their actions can contribute to a sustainable future (Bakker et al., 2016). HRM can also facilitate CSR initiatives by aligning HR policies with CSR goals, such as offering flexible work arrangements to reduce carbon emissions or promoting diversity and inclusion to promote social justice (Ehnert et al., 2013).
However, there are also challenges to integrating CSR into HRM practices. One challenge is the potential conflict between CSR goals and business objectives. For example, implementing CSR initiatives may require additional resources or investment that could impact the organization's financial performance (Bakker et al., 2016). Another challenge is the lack of awareness and understanding of CSR among HR professionals, which can hinder the integration of CSR into HRM practices (Ehnert et al., 2013).
Overall, the integration of CSR into HRM practices is crucial for organizations that seek to demonstrate their commitment to social responsibility and sustainability. By promoting CSR through HRM, organizations can create a positive impact on society and the environment while also improving employee engagement and motivation (Bakker et al., 2016).
Thank you for your kind feedback and for contributing some great insights to my article, Prasad. I especially appreciate the way you've brought in suggestions for HRM to embrace CSR within an organisation, all of which are great ideas. You have also managed to identify a few challenges which are equally important for any HRM function to take note of.
DeleteThis blog post provides a comprehensive overview of the different types of Corporate Social Responsibility (CSR) and highlights some examples of companies that have implemented sustainable and ethical practices in their operations. The author has done an excellent job of explaining the four types of CSR and providing real-life examples of how companies have fulfilled their responsibilities. The examples provided are relevant and up-to-date, making the post a valuable resource for anyone interested in understanding CSR and sustainable business practices.
ReplyDeleteOne area where this post could be improved is by providing more in-depth analysis of the impact of CSR initiatives on the stakeholders and the community. While the examples provided are impressive, it would be beneficial to understand how these initiatives have impacted the lives of workers, the environment, and the wider community. Additionally, the author could have included some challenges and criticisms that companies face when implementing CSR initiatives, which would provide a more balanced perspective.
Overall, this blog post is well-written and informative, and it provides a great starting point for anyone interested in understanding CSR and sustainable business practices.
My question for Thanuki, What are some of the common criticisms or challenges that companies face when implementing CSR initiatives, and how can they overcome them?
Thank you for your kind feedback, George.
DeleteI agree with you that I should extend this article and explore the impacts of these initiatives on stakeholders a bit more than I have done above. I also agree that I have not sign-posted and exclusively discussed challenges and criticisms associated with CSR.
To answer your question, some of the challenges of CSR are, creating awareness and understanding of the need for CSR within the organisation's framework; developing an internal framework that supports CSR; measuring the impact of CSR on an organisation's goals; challenges associated with creating transparency and accountability; striking a balance between short term and long term goals; and challenges associated with tax avoidance and tax evasion, the latter leading to legal sanctions. I believe there could be more challenges and general criticisms that are levelled against CSR initiatives. These are some of the obvious ones.
To address these issues, the HRM function of an organisation must play a proactive role in clearly defining CSR, drawing up responsibilities for different stakeholders, ensuring the company policy is in alignment with CSR and goals. Moreover, the audit functions of a firm need to be up-to-date and diligent, keeping an eye on the CSR initiatives, to ensure they are conducted diligently, ensuring transparency and accountability. In light of this, proper reporting and disclosure frameworks need to be established and maintained. The HRM function must engage employees in continuous professional development exercises in view of CSR as often as possible, such that they see its relevance and importance and are committed to its maintenance.
I hope this answers your questions to some extent.
Thank you for sharing this insightful article. As you pointed out, CSR has become an increasingly important aspect of corporate strategy and has been linked to positive outcomes such as improved reputation, employee engagement, and financial performance (Crane et al., 2019).
ReplyDeleteI particularly appreciated your discussion on the role of HRM in promoting CSR initiatives. Indeed, HRM plays a critical role in shaping the values and culture of an organization, which in turn can influence its CSR practices (Jackson et al., 2019). For example, HRM can support CSR by integrating sustainability into job descriptions and performance evaluations, as well as by providing training and development opportunities that enhance employees' environmental and social awareness (Matten & Moon, 2008).
Overall, this article highlights the importance of aligning CSR and HRM strategies to create sustainable value for both the organization and its stakeholders. Thank you for sharing your insights on this important topic.
Thank you for your kind feedback, Praveen, and for reemphasising some of the main points I have presented in this article. I'm glad you found it insightful.
DeleteExcellent and comprehensive article!
ReplyDeleteThank you for your kind feedback!
DeleteInteresting. Especially the connection to HRM
ReplyDeleteThank you. I am glad you think so.
DeleteHi Thanuki! There's no doubt that CSR, has become a crucial aspect of modern organizations. It's no longer enough for businesses to solely focus on profits, they must also prioritize their impact on society and address newer issues and concerns that arise. The HRM function indeed plays a vital role in defining CSR and integrating CSR values into the organization's culture. HR professionals have a significant opportunity to shape and promote CSR initiatives within their organizations, contributing to a more positive and responsible business environment. Emphasizing CSR not only benefits society, but it also fosters a positive work culture, engages employees, and enhances an organization's reputation. It's encouraging to see the growing recognition of the importance of CSR in today's business landscape, and the important role HR professionals play in driving this positive change.
ReplyDeleteThank you for taking the time to read and engage with my article, Huzair. I appreciate the observations and insights you have added here by your comment. I certainly agree with you that CSR not only benefits society, but also the organisation as a whole. The HRM function certainly has their hands full when it comes to this aspect as well.
DeleteThe importance of CSR and its ongoing evolution are highlighted in this article. You correctly point out that as CSR has grown to be an essential component of conducting business, firms can no longer ignore the subject.
ReplyDeleteFurthermore, you made a very valid point about how HRM plays a crucial part in developing and ingraining CSR ideals into an organization's culture. As those in charge of managing an organization's human resources, HR professionals are crucial in ensuring that CSR is included in the broader strategy and culture of the business.
Thank you for engaging with my article and for emphasising some of the key points that I have made here, such as the status of CSR in organisations at present, and the role of the HRM function in this regard.
DeleteA great article on CSR and HRM Integration. CSR and HRM are two fields that are closely interconnected, and companies that prioritize CSR are more likely to attract and retain employees who share those values, as well as customers who value socially responsible companies. HRM plays a crucial role in ensuring that these values are communicated effectively and that employees are given opportunities to participate in CSR initiatives.
ReplyDeleteGreat insight on companies being more likely to attract and retain employees who share the same values in terms of CSR as the organisation, and the role of the HRM function in this regard, Chathura. Thank you for taking the time to add that here.
DeleteA very insightful article on CSR. CSR offers a variety of benefits for businesses, ranging from improved reputation and financial performance to increased employee satisfaction and positive social and environmental impacts. This has been well explained in your blog.
ReplyDeleteThank you for your kind feedback, Asif. You have managed to capture the main message of my article well.
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