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CSR & HR - Presentation - Nicholas Andreou
1. Human Resource Management and
Corporate Social Responsibility: A
future of promise
Aditya Jain &
Nicholas Andreou
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
operations and their
interactions with their
stakeholders on a
voluntary basis” European Commission
• Corporate philanthropy donations
3. CSR: what it was?
Corporate Social
Responsibility
Traditional business functions: risk management,
accounting, HRM, operations management etc.
“the prevailing approaches to CSR are so disconnected from
business as to obscure many of the greatest opportunities for
companies to benefit” – Michael Porter
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 optional 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
perspective into the core frameworks it already
uses to understand competition and guide its
business strategy” – Michael Porter
7. Human Resource Management
Stakeholders perceive downsizing
differently, corporate representatives
see the financial implications whereas
employees focus on the social
implications
Social impact of all this?
8. Challenges facing HRM?
• Fundamental perception:
– Human ‘resource’ management –
people are seen a means to an
end
– HRM ‘obsessed’ with processes
not outcome (e.g. creativity/wellbeing)
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. 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 Multinational Corporations
– ILO Guidelines for MNEs
– ISO 26000
– UN Global Compact
– Global Reporting Imitative
– SA 8000
11. HRM and CSR – the details
• Six key areas emerged:
– employment conditions;
• Promotion of new and stable employment
– organisational development and culture;
• Support for professional development
– industrial relations;
• Support for collective bargaining in the absence of legal
requirements
– occupational health and safety system;
• Systems to prevent ill health among workers
– diversity and non-discrimination;
• Monitoring to establish areas of discrimination
– human rights.
• Prohibition of child and forced labour
Porter – by doing this it refers to the internal/external dimension (picture which shows inside vs outside of a company)
At least 20% of European workers reports a decline in health due to work-related stress70% of American workers are “not engaged” or “actively disengaged”Workplace disengagement costs the U.S. $450-$550b per yearGFC caused by a failure to manage human resource adequately?Downsizing – EU 2020Restructuring social impact report
http://www.learygates.com/2012/07/23/five-ways-to-stimulate-strategic-thinking/CSR offers an opportunity to be strategic – how can being responsible to employees deliver value to the firmStakeholder approach – put employees at the heart of the solutionGoogle
Looked into 100 FT 500 organisations to assess performance – happy to talk about the findings in the Q&A or email meMaybe