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CSR for HR

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A brief overview of the book "CSRforHR: A necessary partnership for advancing responsible business practices" by Elaine Cohen, published by Greenleaf Publications in October 2010

A brief overview of the book "CSRforHR: A necessary partnership for advancing responsible business practices" by Elaine Cohen, published by Greenleaf Publications in October 2010

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    CSR for HR CSR for HR Presentation Transcript

    • The Story of CSR for HR Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • I’m Sharon, pleased to meet you! I’m Arena, pleased to meet you! I am the VP for Human Resources of a medium- sized Company called Andromex Ltd, a privately-owned software developer, headquartered in Bristol, UK, employing 2,500 people, with some operations outsourced in India and other countries. I have 12 years of Human Resources management experience and am recognised for being a professional in my field. I am the VP for Human Resources a global food business called IFC Ltd. I have been in HR for 22 years, and today, I consider myself a Corporate Social Human Resources Manager – Until I met Arena, I didn’t know much about CSR. a HR professional who leads the HR function with a CSR mindset. In fact, I see this both as my responsibility and as a way to deliver better results for IFC, for all employees, for society and the environment, and, yes, for me personally as well. Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon and Arena meet on a flight to San Diego Arena starts to coach Sharon in all things relevant to her role as an HR Manager from a CSR perspective. Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Corporate Social Responsibility (CSR): A way of doing business which is based on ethical principles and structured management controls, and which takes into account social and environmental considerations alongside economic considerations when making business decisions, and attempts to create positive impacts on all stakeholders. CSR is a voluntary approach, going beyond compliance with laws and regulations. Sustainability: “Satisfying the needs of the present without compromising the ability of future generations to meet their own needs". This is the most commonly quoted definition of sustainability, coined by the UN Brunt land commission in 1983 . First, some definitions: Stakeholders: All those who have an effect on a business, and all those who are affected by a business. Stakeholders may be individuals or groups, including shareholders, employees, customers, suppliers NGO's and more. Materiality: What matters most: issues which are critical for the success of the business and issues which are of prime importance to stakeholders, who influence and are influenced by the business. And a model: Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • What does a responsible workplace Then Arena asks: look like to you ? • pays employees on time • looks out for the safety of all employees • doesn’t discriminate • honours commitments made to employees • provides job security • provides benefits other than salary • operates in a fair and equitable manner But Arena knows this is just the tip of the iceberg! Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • A responsible workplace moves from impacts ON employees to impacts OF employees. Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Just think about the way you design an employee survey A selection of Employee Survey Questions designed with a CSR mindset Engagement with company values and ethics 1. Do you find the Company values inspiring? 2. What are the most important values you identify with in a work context? 3. Do you uphold the Company values when you are not at work? 4. What do you believe our Company's contribution to society should be (other than a financial contribution?) 5. What is most important to you in working for this Company? 6. Do people in this Company treat all fellow employees with respect and dignity at all times? 7. How important do you believe it is important to conduct business in an ethical manner? 8. Are you aware of the Company's Code of Ethics? 9. Does the Company code of ethics serve as a guide for you in your role? 10. Is the Company effective in ensuring everyone is aware of the Company code of ethics? 11. Have you been aware of any breaches of the Code of Ethics by your co-workers? 12. Does Company management provide a personal example of upholding Company values? 13. Do you believe a Company has a responsibility to society and the environment? 14. Is it important for you to work for a Company which practices CSR? Marketplace impacts 1. Do you believe that the Company treats all customers with respect? 2. Do you believe the Company deals fairly and decently with all suppliers? 3. Do you think the Company marketing campaigns reflect Company values? 4. Do you believe the Company pays its suppliers fairly? 5. Do you believe your Company upholds principles of human rights in all its dealings? Workplace impacts 1. Do you believe the Company offers equal opportunity to all, unconditionally? 2. Does the Company make sure you know your employee rights at work? 3. Does the Company value the differences you bring as an individual to the workplace? 4. Does the Company encourage expression of differences in the workplace? and many more… Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon attends a lecture on: Human Rights and Employee Rights Is there a difference ? She learns all about: The responsibility of the HR Manager to drive a proactive approach to positive Human Employee human rights and employee rights in Rights Rights the corporation Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon learns that: Human Resources Managers should: 1. Ensure existence of policies and systems that maintain human and employee rights in the business and its supply chain 2. Ensure awareness and training for all employees in Company policies on human rights 3. Proactively inform employees and assist them understanding and realizing all their rights Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon studies how companies manage reward and remuneration with a CSR mindset… .. and thinks about what might be the driving principles behind a CSR-aligned Remuneration Policy: Driving Principles This Remuneration Policy is designed to provide employees with legal, fair, equitable, supportive, engaging, attractive, flexible, proactive and transparent remuneration and reward packages, in the belief that employees who are able to live decently and provide for their future will be free to devote their maximum energies to producing their best performance on the job. Whilst this might mean, in some cases, providing remuneration above average competitive levels, it is our belief that this will serve the Company’s financial interests over the long term, as employees will be loyal, long-serving and motivated to do well. This Policy also reflects the Company’s belief that we have a duty to contribute to the development of society in which we live and do business, through providing employees with remuneration which enables them to better themselves and contribute to the fabric of the community around them. Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon attends a lecture on employee health, safety and wellbeing where she learns… There is no such thing as Now, that’s a disappointment … or is it ? Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon understands that … Human Resources Managers have a responsibility to change the system. Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • by considering …. Childcare, Working hours, elderly and Onsite support flexible work other family services arrangements support Health, fitness Personal Community and wellbeing management involvement programs systems Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • because …. • Companies that support flexible work arrangements had 3.5% higher market value than companies without – Watson Wyatt Human Capital Index • Workers who believe they have flexibility are able to work eight hours more a week and still feel they have work-life balance – IBM • The company's fitness program produced a 300% ROI ($3.00 for every $1.00 invested)- Pepsico • A nine-year study of the corporate wellness program saved $225 per employee per year in reduced hospital admissions, mental health visits and outpatient services, even after deducting the cost of paying employees to participate – Johnson and Johnson • Emergency back-up child care program yielded a 125% ROI within 6 months of implementation; steadily ramping up to a 521% ROI by the fourth year- KPMG • Approximately $1 million saved annually by extending the job guarantee for new mothers on maternity leave to six months- Aetna • Fitness center participants had medical payments one fifth lower, accident-related disability costs a third lower and workers' comp costs per claim 79% lower than non-participants – Applied Materials Data source: http://www.awlp.org/awlp/library/html/businessimpact.jsp Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • and …. Outcomes of effective volunteering programs include: • An improved rating among employees for their employer as a place to work compared to other companies (63 % saying above average or one of the best, compared to 57 % before the program). • Increased job satisfaction levels (64 % fairly or very satisfied among all employees, compared to 62 % before; satisfaction among volunteer program participants rose to 67 %). • Increased positive word of mouth among employees about their employer (54 % saying they would speak highly of their employer, compared to 49%before the program; among volunteer program participants, the rate rose to 57%). • Higher retention rates for employees who participated in volunteer activities than for those employees who did not. Employees who volunteered appeared to be more prone to pursue promotion and development activities in the months following the participation in the volunteer programs. • Approximately 62%of workers 18 - to 26-years old would prefer to work for a company that provides opportunities for them to apply their skills to benefit nonprofit organizations. • About 76% of young workers said that volunteering helps them hone their leadership skills • 75 % said volunteering lets them develop skills they can use at work (Deloitte, 2007). • 70 % of young workers feel companies should use volunteering as a professional development tool • 91 % of Fortune 500 HR managers surveyed believe that contributing business skills or expertise to a nonprofit organization in a volunteer capacity can further develop an employee’s business skills • 56% of Fortune 500 HR managers say volunteering is encouraged as part of their company’s development and training program (Deloitte, 2008). Data source: http://www.ja.org/files/BenefitsofEmployeeVolunteerPrograms.pdf Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon considers questions of recruitment, diversity and inclusion … • Ensure recruitment processes are ethical, truly non-discriminatory, broad enough to reach a wide pool of diverse candidates and requiring qualifications which do not automatically exclude large sections of the eligible working population • Advance women and ensure equality for women in recruitment practices • Ensure CSR is part of the Employer Brand. • Train HR and functional Managers in diversity and other CSR elements related to recruiting. • Actively seek out non-mainstream candidates through partnerships, go where the candidates are and revise recruitment processes to ensure this happens. • Leverage all contacts in the community, including via community involvement programs, to get to where the candidates are, because not all of them will find you via the regular recruitment channels. Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon learns all about EMPLOYABILITY … Employability and the Responsibility of the HR Function Definition Employability is the result of a shared investment in the contribution to the personal and professional skills of employees such that they are equipped to maintain their attractiveness to potential employers in a competitive and changing job market. Employability is necessary because: • Business: Professional skill requirements change as markets and economies evolve. This is essential to maintain competitiveness. • Social: Communities need to develop towards greater economic stability with higher levels of employment and economic prosperity, and inclusion of underprivileged groups in the labour market. • Individual: Individuals that have greater chances of being employed and are able to achieve personal growth and self-esteem and contribute to society. Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • A consultant presents to Sharon’s team on the subject of employee communications: Business 2.0 HR 2.0 You 2.0 Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • and makes the case for issues related to : HR 2.0 The digitization of HR ! • Need for more digitally skilled employees • New virtual working formats • Transactional HR – greater digitization and The new digital personal ownership of HR data perspective of HR • Online recruitment – now commonplace - • Employees are linked to all stakeholder Optimize digital groups via multiple digital platforms employee • More information about employers and engagement employees available on the Internet • New possibilities for web-based internal and external communication platforms • New ethical issues Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon gets that CSR and HR need different ways of communication with and by employees: CSHR 2.0 Business Communications 2.0! CSR communications Business HR external communications communications internal internal external convergence of external and internal communications Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • And considers what this might look like …. CSHR 2.0 communications map Traditional communications Channels Formal • Employee announcements • Regulators / Shareholders reports Code of • Internal policies / procedures Ethics • Financial Reports • Employee Performance reviews • Marketing Campaigns • Training programmes • Press Releases and general PR • Sustainability Report • Supplier Communications • Internal recruitment postings • Sustainability Report • Employee surveys • Recruitment postings • Ethical/ values issues • Customer-facing sales pitches • Complaints • Cause marketing campaigning • Leadership discussions • Customer service interactions • “Corridor” conversations • Professional associations • Business projects / goals • Personal Networks: Friends, • Networking meetings Family, Community Informal New communications Internal External Channels Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon visits IFC Ltd to learn about the way they manage employee volunteering and hears about the EVP Continuum Supported Employer Business-Integrated Private Employer Planned Employee Sponsored Employee Volunteering Volunteering Volunteering Volunteering Volunteering • Employees • Employees • Employees volunteer in • Employees volunteer • Employees volunteer within volunteer in the volunteer in the the community in areas within a framework of a strategic framework community on community on their which contribute to the project(s) developed by developed by the Company, their own time in own time in Company reputation the Company, which which contributes to activities of their activities of their • Employees volunteer in contribute(s) to business objectives own choosing own choosing the name of the reputation or business • EVP is managed by • No formal • The Company Company objectives designated professional, Company recognizes such • The Company provides • A Manager is nominated often full time resource, recognition activities in funds, resources and to lead EVP (may not be leading team of Champions • No link to business Company award time-off, and actively full-time) • There is a Company EVP objectives schemes or encourages employees • There may be a Company Policy • No support for the communications to volunteer EVP policy • Volunteering is part of employee • The Company may • The Company may • The Company may performance targets and volunteering provide resources propose a program designate Employee evaluations activities or funding for which employees can Volunteer Champions to • Volunteering activities may activities if choose to volunteer coordinate volunteers be selected as skill and requested by the with • Employees volunteers competency building employee • The Company are recognized, and may opportunities for employees. • The Company may recognizes such be rewarded • Employees volunteers are allow the employee activities with awards • Volunteering may be on rewarded and recognized paid time off work and communications Company or employee • Volunteering may be on to volunteer • There is often an time Company or employee time • No direct link to indirect link to business • Volunteering is not • Volunteering is part of the business objectives objectives usually reflected in Company culture performance evaluations • Volunteering metrics are • Volunteering metrics may tracked and communicated be tracked • The CEO volunteers • The CEO may volunteer Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • And how employee volunteering in the community contributes to HR effectiveness(using the core model for the HR role developed by Dave Ulrich) Retain good Reinforce Manage top people corporate talent values Team building Connect Develop with initiative, external innovation, reality Strategic Human Change Catalyst creative Resources culture Support HRM diversity Organizational Employee Infrastructure Contribution Enhance employee capabilities Leverage in Improve recruitment Employee Enhance productivity employee dialogue Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon also learns about and how the business, and employees, and the planet can benefit . Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Sharon has been very thorough! She then starts to think about how to implement all of this in her Company. Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • using this model: Business Partners (CSR) (CSR) Social Ethics Marketing Culture and Recruitment communications Traditional HR functions (CSR) Community (CSR) involvement Environment (CSR) Human rights, health and safety Employee Remuneration Training and and benefits Development Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • First, she considers CSR impact points throughout the employee life – cycle because employees are key stakeholders…. The Employee Life Cycle blending HR and CSR approaches Leaving Community Academic Cultural Financial involvement Health Spiritual Study Care Work-life literacy Environment Development Benefits Network balance and Protection education Community and benefits and education, On-Boarding pre-hire activities personal counseling and and post- support life skills and Hire hire access support to education Pre-Hire Education Health Personal Family Financial Legacy Growth Stability Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Then, Sharon maps the stakeholders of the HR function and realises the complexity of managing all stakeholder needs. Sharon develops a plan for implementation of an ethics programme in the business. She considers the new skills that HR Managers need to manage HR with a CSR mindset. And she rewrites her own Job Description ! And develops a 5 year roadmap for CSR-HR strategy. Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • Arena is very very proud of Sharon! Sharon feels she is learning how to make a difference to the business, the people, society and the planet … whilst developing her own professional skills and impact ! Both know that: It is time for HR to wake up to CSR! Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • • Is packed with practical examples from many Companies around the glob including Intel, Westpac Banking Group, Procter and Gamble, Unilever, Timberland, Nordstrom, Novartis, Nike, Interface, Microsoft, Levi Strauss, H&M, The Body Shop, Puma, Royal Dutch Shell, General Electric, Coca Cola, Cisco, Chevron, Eli Lilly and many many more. • Is loaded with practical tools for reapplication in any business • Contains contributions from Senior Managers of Companies and some of the leading experts in different fields of HR and CSR • Is fun to read, in an easy flowing style • Is a unique look at the CSR for HR from the perspective of the HR Manager in language the HR Manager can understand Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • • Order via Greenleaf Publishing : www.greenleaf-publishing.com or at Amazon.com or several other online sellers. • Read the CSR for HR blog for further insights: www.csrforhr.com • Contact the author Elaine Cohen at elainec@b-yond.biz for details of in-house lectures, workshops or courses for your HR Teams, or support in developing your own CSHR strategy and action plan! • Also … please write to Elaine with your thoughts and comments about the book! All feedback will be most gratefully received! Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.
    • It is time for HR to wake up to CSR ! Elaine Cohen © 2010 CSR for HR All rights reserved. May not be copied or distributed without permission.