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EChr - CSR & HR - Presentation Dr/ Nicholas Andreou

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EChr - CSR & HR - Presentation Dr/ Nicholas Andreou

  1. 1. Human  Resource  Management  and   Corporate  Social  Responsibility:  A   future  of  promise   Aditya  Jain  &   Nicholas  Andreou    
  2. 2. CSR:  what  it  was?   •  The  Social  Responsibility  of  Business  is  to  Increase  its  Profits     •  “A  concept  whereby   companies  integrate   social  and  environmental   concerns  in  their  business   operaHons  and  their   interacHons  with  their   stakeholders  on  a   voluntary  basis”  -­‐   European  Commission   •  Corporate  philanthropy  -­‐   donaHons    
  3. 3. CSR:  what  it  was?   Corporate  Social   Responsibility   TradiHonal  business  funcHons:  risk   management,  accounHng,  HRM,  operaHons   management  etc.   “the  prevailing  approaches  to  CSR  are  so  disconnected  from   business  as  to  obscure  many  of  the  greatest  opportuniHes  for   companies  to  benefit”  –  Michael  Porter  
  4. 4. Global  Financial  Crisis  
  5. 5. CSR:  what  it  is  now?   •  Business  can  no  longer  operate  as  if  in  a  vacuum   –  have  to  act  more  responsibly   •  CSR  no  longer  seen  as  an  opHonal  choice:   –  “the  responsibility  of  enterprises  for  their  impacts  on   society”  –  European  Commission     •  No  longer  seen  as  philanthropy   •  Strategic  CSR:  “a  company  must  integrate  a  social   perspecHve  into  the  core  frameworks  it  already   uses  to  understand  compeHHon  and  guide  its   business  strategy”  –  Michael  Porter  
  6. 6. Human  Resource  Management   Global  financial   crisis  was  HRM   problem?   $450-­‐550  billion  
  7. 7. Human  Resource  Management   Stakeholders  perceive  downsizing   differently,  corporate  representaHves   see  the  financial  implicaHons  whereas   employees  focus  on  the  social   implicaHons   Social  impact  of  all  this?    
  8. 8. Challenges  facing  HRM?   •  Fundamental  percepHon:   –  Human  ‘resource’  management  –   people  are  seen  a  means  to  an   end   –  HRM  ‘obsessed’  with  processes   not  outcome  (e.g.  creaHvity/well-­‐ being)    
  9. 9. How  can  CSR  help?   •  CSR  highlights   the  social   responsibility  of   the  business     •  CSR  offers  an   opportunity  to   be  strategic  –   how  can  being   responsible  to   employees   deliver  value  to   the  firm  
  10. 10. CSR  and  HRM  –  the  specifics   •  Analysed  key  CSR  instruments  including:   –  FTSE  4  Good  Index   –  DJSI     –  World  Business  Council  for  Sustainable  Development   –  Measuring  Impact  Framework   –  OECD  Guidelines  for  MulHnaHonal  CorporaHons   –  ILO  Guidelines  for  MNEs   –  ISO  26000   –  UN  Global  Compact   –  Global  ReporHng  ImitaHve     –  SA  8000  
  11. 11. HRM  and  CSR  –  the  details   •  Six  key  areas  emerged:     –  employment  condiHons;     •  PromoHon  of  new  and  stable  employment   –  organisaHonal  development  and  culture;   •  Support  for  professional  development     –  industrial  relaHons;     •  Support  for  collecHve  bargaining  in  the  absence  of  legal   requirements   –  occupaHonal  health  and  safety  system;     •  Systems  to  prevent  ill  health  among  workers   –  diversity  and  non-­‐discriminaHon;     •  Monitoring  to  establish  areas  of  discriminaHon   –  human  rights.   •  ProhibiHon  of  child  and  forced  labour  
  12. 12. Healthy  Workplaces  Framework  
  13. 13. The  HWP  and  the  six  themes  
  14. 14. Thank  you   •  QuesHons?   •  
  15. 15. Employment Conditions HRM  and  CSR:  employment  condiHons     Terms of contracting and Work schedules Actions of company in relation to rotation, dismissals, and retirements Labour market entrance Wages and benefits Legal recognition of work and transparency of employees’ working conditions Promotion of new and stable employment Work schedules, breaks and workload Impact and consequences of worker rotation Company’s actions in relation to dismissals Support to retiring employees Initiatives to support entry to organisations Non-discrimination in early career/initial employment Transition/advancement from initial employment Wage management policies Salary guarantees Acceptable company salaries Going above and beyond compliance with minimum wage legislation Worker benefits Social security Work-life balance orientated benefits
  16. 16. Organisational Development and Culture HRM  and  CSR  :  organisaHonal   development  and  culture     Training and development Performance Management Organisational Climate and Internal Communication Nature of training Professional development and long-term careers Support to continue and finish studies Local cooperation in training and development Job performance reviews Individual and corporate performance-based variable compensation Internal promotion, recognition and retention of trained employees Workers’ job satisfaction and work climate Workers’ wellbeing Ethics training Communication systems Grievance system
  17. 17. Industrial relations HRM  and  CSR:  industrial  relaHons     Employee representation and collective bargaining Dialogue with workers and stakeholders during corporate restructuring Workers’ representation system Actions when no existence of trade unions in the area or company Negotiation, and adherence to collective bargaining agreements Collaboration with and support to workers’ representatives and trade union activities Level of conflicts within the company and conciliation machinery Policies enacted during changes in operations Dialogue and negotiation with trade unions and stakeholders prior to organizational changes Mitigation of adverse effects of corporate restructuring
  18. 18. Occupational Health and Safety (OHS) System HRM  and  CSR  :  OHS  system     Workers’ involvement in Occupational Health and Safety system and culture Management of absenteeism, work fatalities and occupational diseases OHS Training OHS Prevention OHS Protection Violence, bullying and harassment at work Involvement of workers on Health and Safety and in Health and Safety Committees Dissemination of OHS information to employees Inclusion of OHS in collective agreements and strategic plans Recording and Incidence of work-related injuries/accidents and absenteeism Perceived safety OHS compliance Employees’ access to OHS training and instructions Awareness raising and educational campaigns in OHS Safe facilities and processes Prevention and assistance against serious work-related diseases, psychosocial hazards, and community health problems OHS prevention for vulnerable groups OHS management system Safety protective equipment and machinery Actions when incidents occur Voluntary medical examinations for workers Policies prohibiting, and establishing preventative cultures regarding, violence, bullying and harassment Prevalence and impact of violence, bullying and harassment Protection mechanisms to investigate and respond after accusations of violence bullying and harassment Not toleration of corporal punishment or verbal, mental or physical coercion among disciplinary procedures –including security forces-
  19. 19. Diversity and non-discrimination HRM  and  CSR:  diversity  and  non-­‐ discriminaHon   Equal Opportunities (EO) Gender equality Equal opportunities and support for disabled people Equal opportunities and support for ethnic, racial or religious minorities Non-discrimination by age Non-discrimination to other vulnerable groups Relation with agency workers Labour insertion for economically disadvantaged people   Equality and diversity monitoring Impact of discrimination No tolerance policy regarding discrimination Prevention: Specific strategies to prevent discrimination in Human Resource policies and guidance and recommendations from institutions Affirmative policies to achieve greater equality or remediate past discrimination Protection: Mechanisms to deal with potential cases of discrimination Respect and awareness-raising about vulnerable groups Establishing supportive mechanisms for minority groups within the community Includes all EO themes specifically relating to differing salaries between genders for the same work and provision of support to women’s’ work Includes all EO themes specifically relating to the provision of accessible workplaces for those with disabilities and the creation of jobs tailored to those with disabilities Includes all EO themes specifically relating to ethnic/racial or religious minorities and the creation of a culturally sensitive environment for these groups Includes all EO themes specifically relating to age Includes all EO themes specifically relating to individuals with HIV-AIDS Includes all EO themes specifically relating to relating sexual orientation Includes all EO themes specifically relating to any other vulnerable groups Assessment of legal status and adherence to laws, Human Rights, ILO Conventions and CSR systems of contractors, subcontractors and intermediaries Monitoring and ensuring fair working conditions for employees of contractors, subcontractors and intermediaries Non-discrimination to agency/outsourced/home workers comparing to company’s employees Diversity: Presence of people from disadvantaged backgrounds on staff Avoidance of discrimination and exploitation, and support to poor groups Promotion of social inclusion
  20. 20. Human Rights HRM  and  CSR:  human  rights   Incorporation of human rights in risk and investment analysis Human rights compliance of suppliers Training in Human Rights Respect for workers’ human rights Freedom of workers’ organisation and collective bargaining Rejection of child labour Rejection of forced labour   Strategic risk management evaluation of operations and investment decisions to prevent violations of human rights Evaluation of human rights when considering financial partners or the provision of capital Human rights selection criteria for suppliers and affirmative discrimination to most responsible allies Transparency about production processes and location of suppliers Monitoring mechanisms and assurance of human rights by suppliers Policies and procedures throughout supply chain to ensure the maintenance and improvement of human rights and CSR issues, and to avoid collaboration with entities carrying out HR abuses Quantity and type of training carried out and detailed in policies Level of knowledge of employees and managers regarding awareness, information, international standards, and CSR management Policies, procedures and guarantees to ensure human rights are maintained throughout the company, especially in high risk sectors, products or countries Human Rights auditing and verification of internal compliance Consultation from local stakeholders and external organizations regarding human rights Non-discrimination at work from a human rights perspective Respect and non-discrimination of employees’ rights of freedom of organization Guarantees in countries which restrict workers’ organization to avoid such restrictions No support to child labour and no exploitative employment Prevention of child labour in the supply chain Decent work conditions for workers between 15 and 18 Remediation policies when child workers found Awareness raising against child labour and commitment to children’s future Avoidance of forced labour Fair and transparent conditions regarding termination of employment and leaving work Prevention of indirect forced labour within the company
  21. 21. How  close  we  are  to  achieving  this   vision:  company  performance   •  Compared  company  CSR  reports  to  this   framework  –  represent  thinking  by  key  policy   makers  in  CSR/HRM   •  Sample  taken  from  the  FT  500   •  Considered  100  CSR  reports  maintaining  a   distribuHon  across  sector  (NACE  framework)   and  region  (WHO  regions:  AFRO,  AMRO,   EMRO,  EURO,  SEARO,  WPRO)  
  22. 22. Findings:  Company  reporHng  theme  level  -­‐  WHO   region   Employment  CondiHons   100%   80%   Human  Rights  System   60%   40%   OrganisaHonal   Development  and  Culture   AFRO  (6)   AMRO  (26)   20%   EMRO  (6)   0%   EURO  (26)   Industrial  RelaHons   Industrial  relaHons  system   System   Diversity  and   DiscriminaHon   SEARO  (13)   WPRO  (23)   OccupaHonal  Health  and   Safety  (OHS)  System  
  23. 23. Findings   •  EURO   –  Most  comprehensive  and  based  on  best  pracHce     –  High  level  of  naHonal  awareness  and  iniHaHves   regarding  CSR  and  OHS  –  many  stakeholders   involved    
  24. 24. Findings:  Company  reporHng  subtheme   level  -­‐  total   29   30   100   28   1   2   3   4   80   27   5   60   26   6   40   25   7   20   24   8   0   23   9   22   10   21   11   20   12   19   13   18   17   16   15   14   Total  Sample  

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