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Benefits of CSR in strategic human resource management

Human Resources Clinic

Corporate social responsibility (CSR) practices are increasingly being adopted and legitimised in business and they impact the strategic and operational levels in various areas.

The integration of these criteria and practices in the strategic management involves many factors, and human resource management is an essential aspect for the accomplishment of such initiative.

The ISO 26000:2010 Social Responsibility standard states that “the objective of social responsibility is to contribute to sustainable development” and internal development is one of the main axes.

CSR should not be understood as organisational objectives towards the communities but also their own human resources. This includes organisations’ efforts to provide the best working environment: well-being at work, trainings and teamwork activities to enhance the sense of belongings.

The encouragement of diversity or equality among workers will give employees more motivation and pride to be a part of their companies.

Employees’ satisfaction does not simply come directly from human resources (HR) policies that companies deploy for them but also from company compliance with their own external CSR practices.

Employees, especially generation Z, are proud of their own organisations because they believe they are contributing to philanthropic and charitable activities.

A company’s image can either be improved or be degraded considering their attitudes towards the society. And it goes without saying that their corporate culture can reflect their CSR commitment and vice versa.

External and internal communication regarding the subject can serve greatly in publicising companies’ image for employees as well as customers.

The shape of company image is also a part of company culture and DNA of their activities, especially manufacturing companies whose impact on the environment or humans is phenomenon.

Their production activities should go side by side with their HR management strategies to avoid conflict with companies CSR engagement.

Furthermore, CSR as mentioned above, should not be regarded as external policies; it also involves all corporate efforts to maintain balance in the workplace, ensure base human rights and promote empowering message.

The more HR officer and managers are driving their culture to be CSR oriented, the more they will be creative in the way they manage their people. More initiatives will be put in place instead of traditional common practices involving pay or bonuses.

Activism by millennials and, indeed, all generations will also influence changing trends in CSR. You can expect to see companies continue to take a public stand against on-the-job harassment and discrimination.

Diversity in the workplace will also continue to expand to embrace people of all races, genders, cultures, disabilities, and sexual orientations.

Diversity in the workplace will also continue to expand to embrace people of all races, genders, cultures, disabilities, and sexual orientations. Many brands are becoming more vocal and showing their support for important social issues on social media to great effect.

Generation Z feels profoundly concerned about social and environment issues. They believe that they are partly responsible for making a difference and hope that there would be some leverage or support for them to do so.

This generation will certainly dominate the workforce of the future and contributes to companies’ success. With the rise of technology and the popularity of LinkedIn as well as numerous career websites, the competition for talent has never been more severe. Companies no longer possess the upper hand like they did many years ago. The recruitment process is a two-way street where the candidates can choose where they belong to.

Understanding the trend and facts about the future workforce, companies should make efforts to engage and attract this population through their commitment in CSR activities.

Companies can show future candidates that they are willing to lead the way for them to contribute not only to the company but also a greater cause: the society and the environment.

Talent attraction will be much easier and on point with the coherence in activities and policies.

An employee who does not only care about his own benefit will sacrifice more for the growth of the company.

In conclusion, CSR is more than just a topic nowadays; it has become a worldwide focus and a real global task that every company needs to take part in.

CSR compliance can not only reinforce best practices in HRM but also create actual social impacts and inspiration for the new generation, the targeted workforce of the future.

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