CSR and HR issues Anjali Panda

This paper deals with the emergence of various dimensions of CSR and link it with HR policies and practices in the new information age. It analyses the interface between CSR and HR.

Introduction
Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local communities and society at large. In a business CSR is managed at various places. The concept of CSR is gaining importance these days and is a must for HR because staffing function is an emerging area of risk to business. High turnover of staffs, loss of key employees at critical times, increasing cost of recruitment and training of new staff can cause damage to the business. Effective CSR strategies and programmes can help manage the risk by creating an environment where the staff can enjoy their work and where they can feedback concerns about the companys behaviour so actions can be taken.

CSR and Employer Branding

Recognising the value of the staff is very important for an organisation. Along with the external stakeholders the organisation should also interact with the internal stakeholders i.e. the staff to create employer brand. Just like other stakeholders employees expect certain things not just salary from the employer. The employees want to identify themselves with the company. Employer branding is all about making sure that the employees can be ambassador for the company and the feel good factor can permeate out to customers and client. The organisation needs to be CSR compliant to accrue these benefits.

The Role of HR in CSR

Companies need to coordinate their CSR activities and show their commitment to HR. Effective CSR is seen throughout the organisation. HR has an important role in making CSR work.CSR without HR has the risk of being dismissed as PR or shallow window dressing. CSR is an opportunity for HR to demonstrate a strategic focus and act as a business partner. CSR needs to be injected into the organisations culture to bring a change in the attitude and actions and the support of top level is very much required for its successful implementation. HR plays an important role in communicating and implementing ideas, policies, cultural and behavioural change throughout the organisation. HR is also responsible for the effective delivery of the key systems and processes. HR and CSR can be aligned with how business run. CSR could be integrated in to various business processes like employer brand, recruitment, appraisal, reward, retention, motivation, internal communication, diversity, coaching and training. The treatment the organisation extends towards its employees directly contribute towards being seen as willing to accept wider responsibilities.

Interface Between CSR and HR

HR plays the role of a mediator in bridging the gap between CSR plans and objectives and implementation and outcome at the level of employee engagement, diversity management and community development. The faster HR gets involved and accepts responsibility the easier it will be to achieve the goal set for CSR. It is a big challenge to deal with the complexities related to various issues like employee management, diversity management and community relationship. But the leadership of HR and contribution to CSR can help in addressing these complexities.

Employee Engagement

CSR

HR

Community Relationship Diversity Management

Interface between HR and CSR

HR plays the role of an agent for change. HR should go beyond designing and effectively delivering HR processes to more focus on management of employee contribution fostering employee commitment, managing culture and integration. These new roles of HR are termed as Strategic Human resource Management (SHRM).(Schuler and Jackson,2006, Wright and Mac Mahan,1999). Therefore HR managers should show genuine leadership and gain credibility through creativity, sensitivity, trustworthiness and equal attention to the needs of the internal and external stakeholders and develop holistic approach which is concerned with the overall interest of business.

Risk associated in HRs involvement with CSR

It is hard to regain the trust build around CSR once it is lost. Therefore HR needs to ensure that the CSR of the organisation can stand up to the scrutiny by the stakeholders. Through communication and training it is to be ensured that it is properly embedded throughout the culture of the organisation. HR needs to behave like an active business partner working with other functions like finance, PR, marketing etc . There is requirement to look beyond the boundaries of usual practice and work on its own PR. CSR is a strategic opportunity which is market led and is restrained by bureaucracy; it needs dynamism, creativity, imagination and even opportunism.

Considerations when starting CSR strategy

1. Clarify the core values and principles. 2. Ensure proper knowledge about the external and internal stakeholders and the issues affecting the relationship between the organisation and the stakeholders. 3. Proper knowledge about how to sell the benefits of CSR to the stakeholders and get the top team on board. 4. Align CSR strategy to the business strategy and HR practices. 5. Get endorsement for the CSR strategy from inside and outside the organisation. 6. Communicate effectively. 7. Training for employee engagement in to CSR to get an impact and change their attitude and behaviour. 8. Effective measurement and evaluation of CSR.

CSR HR = PR
Employee engagement in CSR is a must, if employees are not involved then corporate social responsibility becomes an exercise in PR. The public image and trustworthiness of the organisation will be hampered when it become evident that the company is not walking the talk. HR department plays an important role and remain responsible for different functions like recruitment, training and communication which are crucial for effective delivery of CSR initiatives. To begin with CSR must focus on building relationship with the employees because without it the organisation will not be able to discharge its community obligations. CSR minus HR equals to PR. Effective HR is a must for building trust through all the levels of the organisation and provide a solid foundation for CSR.HR helps the company to be a good employer by championing the policies on delivering work life balance, employee involvement, training and development.

CSR within the organisation

Human resource forms the basis of the core strength of the organisation and all other resources can be replaced without human resource .i.e. employees. There has been a change in the concept and practice of the relationship between the employer and the employees. They are serving together for a common cause. A motivated and productive workforce is responsible for bringing a difference and give the company an edge over its competitors.HR is concerned with elaborating, promoting and strengthening the CSR philosophy within the workplace and aligning those with community needs and aspirations. The role, voice and expertise of HR are important in setting the tone for CSR agenda and putting it in the spotlight.

Internalization of CSR
An organisation create a better image in the mind of people by presenting itself as an excellent employer with concern for employees and involve them in the arena of social responsibility. This involvement of the employees show the strategic importance of HRM in the CSR initiatives of the organisation. Proper implementation of human resources policies in the organisation create awareness among the employees towards the need of aligning the goals of the organisation with the goals of the people working in the organisation and the need of achieving those goals in the best possible and ethical manner. With the help of HR the value of social responsibility can be inculcated and sustained in the organisation culture. CSR can be internalized in the following manner. 1. By the involvement of the employees the HR department should take the responsibility to develop a formal policy on sustainable practices. 2. The organisations commitment towards the CSR philosophy should be made known to the newly recruited employees in the orientation programmes. 3. The performance management of the company should be designed to measure the socially responsible behaviour initiatives taken by the employees. Appraisal, appreciation and reward of appropriate behaviour is necessary for internalization of CSR in organisation culture. 4. To instil the CSR culture among the employees proper training facilities should be there. The partnership between CSR and HR should be made learn and practised by the employees. 5. The managers should be empowered with the authority of decision making to execute decision making to execute social responsibility at the local level. 6. Proper training on the code of ethics should be undertaken throughout the organisation to stimulate social responsibility. 7. Responsible HRM practices on equal opportunities, managing diversity, whistle blowing, redundancy, human rights, harassment shall give credibility to the CSR initiatives of the organisation. Protection of human rights is an important issue of CSR. Many organizations like Wipro, ICICI, Infosys, Dabur have framed whistle blowing policy to provide protection to the employees who came to know about the unethical practices going inside the organisation. 8. The separation of employees during mergers, acquisitions, downsizing should be strategically aligned with the business strategy and corporate social responsibility. Retraining, retention, redeployment of people can be handled with aggressive communication, information campaigns and out placement services in place to assist the transition of people from the organisation. 9. Social reports or sustainability reports should be prepared to underline the organisations commitment to social or sustainable practices. 10. The Human Resource department should effectively measure and evaluate CSR activities. The CSR activities should be periodically reviewed.

CASE STUDY on Colgates Core Values

Colgate has 3 fundamental values Caring Global Teamwork Continuous Improvement

Caring
Colgate care about people- customers, shareholders and business partners. Colgate is committed to act with compassion, integrity, honesty and high ethics in all situation, listen others with respect and value differences. The company is committed to protect global environment, to enhance the communities and to be compliant with the rules and regulations.

Global Teamwork
All Colgate people are part of the global team committed to work together across countries and throughout the world. They believe that the company can achieve and sustain profitable growth by sharing ideas, technology and talents.

Continuous improvement
Colgate is committed to getting better everyday in all it does, as individuals, as teams. Colgate will become best and be well accepted by having better understanding of customers expectations and working continuously towards innovation and improvement of products, services and processes. Managing with Respect Managing with respect helps in creating an environment where people care about each other and work together to achieve their full potential. The principles of managing with respect are: Effective communication Seeking and giving feedback Giving value to unique contributions Promoting teamwork Set example

Valuing Colgate people The core values of the company helps to build a strong culture of integrity, ethical behaviour and the desire to do the right thing in the right way throughout the company. Global Diversity Colgate culture emphasizes on recognising and valuing differences. This diversity includes nationality, culture, race and gender. The diversity aspect of Colgate takes into consideration many differences that are not seen like experiences of life, religion, sexual orientation of family situations. These differences are the keys to finding new solutions to business challenges and new opportunities to make unique contributions which leads to overall success of the business.

Code of Conduct The Code of Conduct of Colgate serve as a guide for day to day business interactions which reflect the standard of proper behaviour and corporate values. The Code of Conduct is regularly updated and reissued to ensure its comprehensiveness. The Code of Conduct of Colgate is applicable to all, including Directors, officers and all employees of the company and subsidiaries, vendors and suppliers are also supposed to adhere to the Code. Each employee is responsible for demonstrating integrity and leadership by complying with the provisions of the Code of Conduct, Company policies and all applicable laws. Non Retaliation The policy of Colgate focuses on maintaining ethical standards and creating a workplace devoid of unlawful behaviour where people are encouraged to share their concerns with the company without any fear of retaliation. Living Values for Sustainability The long term sustainability strategy of the company is focussed on three areas- people, performance and planet. Conclusion For successful implementation of social responsibility HR department plays the role of coordinator. It coordinators the CSR activities and establish an effective relationship with the external stakeholders and can orient the employees and the organisation towards a socially responsible character. To recapitulate it can be said that companies have increasingly felt the need to coordinate their CSR activities and demonstrate their commitment to social responsibility. But delivery, not rhetoric, is the key in developing the trust of external stakeholders for any organisation and it can not without beginning charity at home. To do that social responsibility needs to be embedded in an organisations culture to bring change in actions and attitudes human resources play an important role. Otherwise may CSR may run the risk of being categorised as PR or shallow window dressing. REFERENCES Arti devi, Suparn Sharma,Joity Sharma. CSR: The Key Role of human resource Management, 2009 Cohen Elaine, CSR for HR: A Necessary Partnership For Advancing Business Partnership, 2012 Coro Strandberg: The Role of Human Resource management in CSR, Issues Brief and Roadmap,2009 Jagdeep Kaur: Relationship between CSR and HR, 2011 Lakshman: What is The Role of HR in CSR, 2006 Lokhandwala Shafiq: HRs Role in Promoting CSR,2011