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CSR	
  &	
  HR	
  –	
  Presentation	
  Wes	
  Harry	
  	
  
	
  
Slide	
  1	
  
Practical	
   mainly	
   international	
   HRM,	
   airlines,	
   banks,	
   oil	
   sector,	
   advisor	
   to	
   governments	
   30+	
   years	
   Africa,	
   Asia	
  
and	
  GCC.	
  
My	
  apporach	
  is	
  practical	
  but	
  informed	
  by	
  my	
  academic	
  approach	
  to	
  making	
  decisions	
  based	
  on	
  evidence.	
  
In	
   the	
   University	
   of	
   Louvain	
   (Louvain	
   de	
   Neuve)	
   there	
   was	
   a	
   Sustainability	
   Workshop	
   in	
   September.	
   We	
   are	
  
interested	
  in	
  the	
  long	
  term	
  success	
  of	
  orgs	
  and	
  contributions	
  to	
  wider	
  societies.	
  
In	
  such	
  a	
  complex	
  global	
  environment	
  no	
  simple	
  answers-­‐	
  not	
  black	
  and	
  white	
  nor	
  only	
  green!	
  
Different	
   cultures	
   (including	
   org	
   cultures)	
   have	
   different	
   values	
   and	
   belief	
   systems	
   so	
   I	
   do	
   not	
   claim	
   to	
   offer	
  
actual	
  CSR	
  values.	
  
Ethical	
  values	
  are	
  at	
  the	
  core	
  of	
  orgs	
  so	
  should	
  provide	
  direction	
  to	
  CSR	
  (not	
  just	
  have	
  CSR	
  as	
  a	
  compliance	
  with	
  
laws	
  function)	
  
	
  
Slide	
  2	
  
People	
  struggling	
  to	
  survive	
  and	
  feed	
  families.	
  
Too	
  poor	
  to	
  care	
  about	
  CSR	
  or	
  worry	
  about	
  tomorrow,	
  future	
  generations	
  etc.	
  
Often	
  used	
  as	
  an	
  excuse	
  to	
  not	
  care	
  about	
  CSR	
  and	
  ethics	
  in	
  business.	
  
So	
   often	
   managers	
   from	
   rich	
   countries	
   say	
   that	
   when	
   in	
   Rome	
   one	
   must	
   do	
   as	
   the	
   Romans	
   do-­‐	
   and	
   have	
   lesser	
  
ethical	
  standards.	
  	
  
I	
   dispute	
   the	
   ‘when	
   in	
   Rome’	
   approach	
   as	
   we	
   should	
   respect	
   the	
   local	
   norms	
   but	
   not	
   exploit	
   these	
   norms.	
  
Sometimes	
  one	
  must	
  walk	
  away	
  from	
  business	
  opportunities	
  if	
  the	
  costs	
  in	
  terms	
  of	
  ethics	
  and	
  values	
  are	
  too	
  
great.	
  
Sri	
  Lanka	
  Hartals-­‐doctors	
  etc	
  on	
  strike	
  but	
  auto-­‐rickshaw	
  drivers	
  carried	
  on	
  working	
  despite	
  murders.	
  
All	
  banks	
  closed	
  except	
  ours-­‐	
  staff	
  wanted	
  to	
  make	
  a	
  stand	
  (for	
  their	
  society	
  and	
  self	
  respect)	
  and	
  were	
  well	
  led	
  
by	
  local	
  managers.	
  Showed	
  courage	
  and	
  commitment	
  to	
  customers	
  and	
  community.	
  
But	
   what	
   if	
   it	
   had	
   all	
   gone	
   wrong!	
   Staff	
   could	
   have	
   been	
   murdered.	
   The	
   bank’s	
   management	
   (especially	
  
including	
  me)	
  would	
  have	
  been	
  severely	
  criticised.	
  
	
  
	
  
Slide	
  3	
  
30	
  years	
  of	
  dealing	
  with	
  Business	
  and	
  HRM	
  Strategy	
  and	
  operational	
  plans.	
  
Asian	
   military	
   realised	
   that	
   no	
   matter	
   what	
   the	
   plans	
   or	
   PMS	
   needed	
   core	
   values	
   including	
   CSR-­‐	
   to	
   wider	
  
community.	
  	
  
Core	
  values	
  were	
  developed	
  and	
  accepted	
  by	
  the	
  senior	
  officers	
  and	
  rulers.	
  These	
  were	
  put	
  into	
  he	
  strategic	
  
plans	
  and	
  PMS.	
  
Personally	
   I	
   did	
   not	
   agree	
   with	
   all	
   of	
   the	
   values	
   (particularly	
   in	
   terms	
   of	
   religion	
   and	
   exclusion	
   of	
   some	
   local	
  
groups)	
  but	
  my	
  role	
  was	
  to	
  advise	
  not	
  to	
  impose.	
  	
  
Easy	
  to	
  be	
  cynical	
  but	
  without	
  contribution	
  to	
  society,	
  community	
  and	
  own	
  beliefs	
  powerful	
  organisations	
  can	
  
be	
  used	
  to	
  abuse	
  and	
  harm.	
  
	
  
	
  
Slide	
  4	
  
Proactive	
   commitment	
   to	
   CSR	
   at	
   core	
   of	
   the	
   organisation	
   helps	
   provide	
   a	
   ‘moral	
   compass’	
   beyond	
   the	
   law	
   and	
  
regulations.	
  If	
  focused	
  on	
  detail	
  of	
  laws	
  and	
  rules	
  then	
  the	
  big	
  picture	
  can	
  be	
  lost-­‐	
  e.g.	
  banks	
  saying	
  all	
  their	
  
staff	
  comply	
  with	
  law	
  but	
  sometimes	
  push	
  to	
  the	
  boundaries!!!	
  
Corruption,	
  Fraud,	
  Greed	
  and	
  anti-­‐social	
  behaviour	
  always	
  exists	
  to	
  some	
  extent	
  in	
  organisations	
  and	
  societies.	
  	
  
Give	
  an	
  example	
  of	
  traditional	
  banks-­‐	
  most	
  malpractice	
  outside	
  some	
  inside.	
  	
  
Some	
   malpractice	
   but	
   generally	
   focused	
   on	
   long	
   term	
   well	
   being	
   of	
   community	
   of	
   which	
   part-­‐	
   e.g.	
   many	
   UK	
  
banks	
  have	
  Quaker	
  origins.	
  
	
  
	
  
Slide	
  5	
  
A	
  number	
  of	
  banks	
  (and	
  other	
  organisations)	
  I	
  am	
  aware	
  of	
  out	
  of	
  balance	
  so	
  that	
  owners,	
  directors,	
  managers	
  
and	
  staff	
  put	
  their	
  own	
  interests	
  above	
  that	
  of	
  customers/	
  depositors/	
  government	
  and	
  societies.	
  	
  

Corporate	
  Social	
  Responsibility	
  :	
  Still	
  a	
  Challenge	
  for	
  HR	
  ?	
  –	
  October	
  22nd	
  
 
	
  
Harmful	
  to	
  medium	
  and	
  long	
  term	
  success.	
  
In	
  a	
  group	
  of	
  failed	
  banks	
  the	
  new	
  management	
  team	
  put	
  something	
  back	
  into	
  the	
  society	
  (in	
  part	
  as	
  a	
  thanks	
  
for	
   re-­‐capitalising	
   and	
   in	
   part	
   for	
   good	
   business	
   reasons)	
   employment	
   creation	
   for	
   citizens,	
   learning	
   and	
  
development	
  opportunities	
  for	
  citizens	
  and	
  expats,	
  loans	
  to	
  SMEs	
  and	
  spreading	
  wealth	
  (from	
  oil	
  income)	
  to	
  
wider	
  society.	
  
	
  
Slide	
  6	
  
Profit/	
   Service	
   quality	
   efficiency,	
   Person	
   (individualist-­‐	
   but	
   also	
   demonstration	
   of	
   CSR	
   in	
   practice),	
   People,	
  
Planet-­‐	
  developed	
  from	
  simple	
  single	
  bottom	
  line-­‐	
  profit/	
  service	
  quality.	
  	
  
Elkington	
  triple	
  bottom	
  line.	
  	
  
Recent	
   years	
   quadruple	
   bottom	
   line	
   which	
   can	
   be	
   aligned	
   with	
   Stragetic	
   Directions,	
   Performance	
   Management	
  
Systems,	
  selection,	
  employee	
  engagement	
  and	
  career	
  development.	
  	
  
CSR	
   a	
   crucial	
   element	
   of	
   the	
   quadruple	
   bottom	
   line-­‐	
   through	
   which	
   these	
   various	
   elements	
   are	
   measured-­‐	
  
treating	
  staff,	
  customers	
  well	
  along	
  with	
  environment	
  and	
  long	
  term	
  profits.	
  	
  
Recognise	
  some	
  people,	
  organisations	
  and	
  stakeholders	
  can	
  prosper	
  if	
  abuse	
  others.	
  But	
  if	
  many,	
  especially	
  top	
  
management,	
  ignore	
  CSR	
  and	
  core	
  ethics	
  the	
  organisation	
  may	
  not	
  survive.	
  	
  
Example	
  of	
  Arif	
  paying	
  and	
  FreeZone	
  exploiting.	
  
Each	
  organisation	
  decides	
  the	
  relative	
  weight	
  of	
  each	
  element.	
  
Can	
  be	
  part	
  of	
  PMS.	
  
Not	
  to	
  be	
  charities	
  or	
  missionaries-­‐	
  just	
  act	
  decently.	
  	
  
Comply	
  with	
  laws	
  (no	
  matter	
  how	
  onerous	
  or	
  irrelevant)	
  or	
  not	
  be	
  in	
  business	
  in	
  	
  that	
  location	
  	
  
Halo	
  affect	
  Craig	
  Smith	
  INSEAD	
  gives	
  great	
  benefits	
  to	
  businesses.	
  
Henry	
  Ford-­‐	
  pay	
  high	
  enough	
  wages	
  so	
  that	
  employees	
  can	
  afford	
  his	
  cars.	
  
May	
   come	
   a	
   time	
   when	
   the	
   org	
   seeks	
   help	
   from	
   society	
   and	
   previous	
   CSR	
   can	
   play	
   a	
   crucial	
   role-­‐	
   will	
   US,	
   UK	
   or	
  
EU	
  tax	
  payer	
  bail	
  out	
  Amazon,	
  Apple,	
  Google,	
  Starbucks	
  etc.	
  Or	
  the	
  bankers	
  again?	
  
	
  
Slide	
  7	
  
CSR	
  at	
  core	
  of	
  organisational	
  values	
  especially	
  at	
  the	
  core	
  of	
  strategic	
  HRM.	
  
McK	
  study	
  on	
  HRM	
  2012	
  
	
  
Slide	
  8	
  
Place	
  in	
  organisation	
  at	
  the	
  core	
  with	
  everyone	
  responsible	
  including	
  CEO	
  and	
  Board	
  but	
  primary	
  accountability	
  
probably	
  best	
  in	
  Strategic	
  HR.	
  
Not	
   in	
   legal	
   dept	
   as	
   too	
   much	
   concerned	
   with	
   rules	
   and	
   regulations	
   stopping	
   things	
   happening	
   (looking	
  
backwards).	
  Reactive.	
  
Not	
  in	
  PR	
  as	
  too	
  concerned	
  with	
  spin	
  which	
  is	
  rarely	
  believed	
  Reactive	
  
Stand	
  alone	
  function	
  could	
  be	
  proactive	
  but	
  maybe	
  an	
  orphan	
  function	
  –	
  ignored	
  or	
  blamed.	
  
In	
  HRM	
  Strategic	
  function	
  proactively	
  concerned	
  with	
  developing	
  employee	
  engagement,	
  selection	
  and	
  career	
  
progression	
   and	
   with	
   Performance	
   management-­‐	
   not	
   in	
   HRM	
   ops	
   who	
   tend	
   to	
   act	
   as	
   organisational	
   police	
  
force!!	
  	
  
	
  
Slide	
  9	
  
Reactive-­‐	
  CSR	
  can	
  be	
  the	
  canary	
  in	
  a	
  mine	
  to	
  warn	
  of	
  threats	
  and	
  dangers.	
  If	
  things	
  are	
  wrong	
  in	
  CSR	
  likely	
  to	
  be	
  
major	
  things	
  wrong	
  in	
  wider	
  org.	
  
	
  
Slide	
  10	
  
Proactive.	
  As	
  	
  Kong	
  Qui	
  (Confucius)	
  said	
  it	
  is	
  “Better	
  to	
  light	
  one	
  candle	
  than	
  complain	
  about	
  the	
  dark”.	
  	
  
CSR	
  can	
  be	
  the	
  candle	
  to	
  shed	
  light	
  into	
  wider	
  issues.	
  
	
  
	
  

Corporate	
  Social	
  Responsibility	
  :	
  Still	
  a	
  Challenge	
  for	
  HR	
  ?	
  –	
  October	
  22nd	
  

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CSR & HR – Presentation Pr. Wes Harry (TEXT)

  • 1.     CSR  &  HR  –  Presentation  Wes  Harry       Slide  1   Practical   mainly   international   HRM,   airlines,   banks,   oil   sector,   advisor   to   governments   30+   years   Africa,   Asia   and  GCC.   My  apporach  is  practical  but  informed  by  my  academic  approach  to  making  decisions  based  on  evidence.   In   the   University   of   Louvain   (Louvain   de   Neuve)   there   was   a   Sustainability   Workshop   in   September.   We   are   interested  in  the  long  term  success  of  orgs  and  contributions  to  wider  societies.   In  such  a  complex  global  environment  no  simple  answers-­‐  not  black  and  white  nor  only  green!   Different   cultures   (including   org   cultures)   have   different   values   and   belief   systems   so   I   do   not   claim   to   offer   actual  CSR  values.   Ethical  values  are  at  the  core  of  orgs  so  should  provide  direction  to  CSR  (not  just  have  CSR  as  a  compliance  with   laws  function)     Slide  2   People  struggling  to  survive  and  feed  families.   Too  poor  to  care  about  CSR  or  worry  about  tomorrow,  future  generations  etc.   Often  used  as  an  excuse  to  not  care  about  CSR  and  ethics  in  business.   So   often   managers   from   rich   countries   say   that   when   in   Rome   one   must   do   as   the   Romans   do-­‐   and   have   lesser   ethical  standards.     I   dispute   the   ‘when   in   Rome’   approach   as   we   should   respect   the   local   norms   but   not   exploit   these   norms.   Sometimes  one  must  walk  away  from  business  opportunities  if  the  costs  in  terms  of  ethics  and  values  are  too   great.   Sri  Lanka  Hartals-­‐doctors  etc  on  strike  but  auto-­‐rickshaw  drivers  carried  on  working  despite  murders.   All  banks  closed  except  ours-­‐  staff  wanted  to  make  a  stand  (for  their  society  and  self  respect)  and  were  well  led   by  local  managers.  Showed  courage  and  commitment  to  customers  and  community.   But   what   if   it   had   all   gone   wrong!   Staff   could   have   been   murdered.   The   bank’s   management   (especially   including  me)  would  have  been  severely  criticised.       Slide  3   30  years  of  dealing  with  Business  and  HRM  Strategy  and  operational  plans.   Asian   military   realised   that   no   matter   what   the   plans   or   PMS   needed   core   values   including   CSR-­‐   to   wider   community.     Core  values  were  developed  and  accepted  by  the  senior  officers  and  rulers.  These  were  put  into  he  strategic   plans  and  PMS.   Personally   I   did   not   agree   with   all   of   the   values   (particularly   in   terms   of   religion   and   exclusion   of   some   local   groups)  but  my  role  was  to  advise  not  to  impose.     Easy  to  be  cynical  but  without  contribution  to  society,  community  and  own  beliefs  powerful  organisations  can   be  used  to  abuse  and  harm.       Slide  4   Proactive   commitment   to   CSR   at   core   of   the   organisation   helps   provide   a   ‘moral   compass’   beyond   the   law   and   regulations.  If  focused  on  detail  of  laws  and  rules  then  the  big  picture  can  be  lost-­‐  e.g.  banks  saying  all  their   staff  comply  with  law  but  sometimes  push  to  the  boundaries!!!   Corruption,  Fraud,  Greed  and  anti-­‐social  behaviour  always  exists  to  some  extent  in  organisations  and  societies.     Give  an  example  of  traditional  banks-­‐  most  malpractice  outside  some  inside.     Some   malpractice   but   generally   focused   on   long   term   well   being   of   community   of   which   part-­‐   e.g.   many   UK   banks  have  Quaker  origins.       Slide  5   A  number  of  banks  (and  other  organisations)  I  am  aware  of  out  of  balance  so  that  owners,  directors,  managers   and  staff  put  their  own  interests  above  that  of  customers/  depositors/  government  and  societies.     Corporate  Social  Responsibility  :  Still  a  Challenge  for  HR  ?  –  October  22nd  
  • 2.     Harmful  to  medium  and  long  term  success.   In  a  group  of  failed  banks  the  new  management  team  put  something  back  into  the  society  (in  part  as  a  thanks   for   re-­‐capitalising   and   in   part   for   good   business   reasons)   employment   creation   for   citizens,   learning   and   development  opportunities  for  citizens  and  expats,  loans  to  SMEs  and  spreading  wealth  (from  oil  income)  to   wider  society.     Slide  6   Profit/   Service   quality   efficiency,   Person   (individualist-­‐   but   also   demonstration   of   CSR   in   practice),   People,   Planet-­‐  developed  from  simple  single  bottom  line-­‐  profit/  service  quality.     Elkington  triple  bottom  line.     Recent   years   quadruple   bottom   line   which   can   be   aligned   with   Stragetic   Directions,   Performance   Management   Systems,  selection,  employee  engagement  and  career  development.     CSR   a   crucial   element   of   the   quadruple   bottom   line-­‐   through   which   these   various   elements   are   measured-­‐   treating  staff,  customers  well  along  with  environment  and  long  term  profits.     Recognise  some  people,  organisations  and  stakeholders  can  prosper  if  abuse  others.  But  if  many,  especially  top   management,  ignore  CSR  and  core  ethics  the  organisation  may  not  survive.     Example  of  Arif  paying  and  FreeZone  exploiting.   Each  organisation  decides  the  relative  weight  of  each  element.   Can  be  part  of  PMS.   Not  to  be  charities  or  missionaries-­‐  just  act  decently.     Comply  with  laws  (no  matter  how  onerous  or  irrelevant)  or  not  be  in  business  in    that  location     Halo  affect  Craig  Smith  INSEAD  gives  great  benefits  to  businesses.   Henry  Ford-­‐  pay  high  enough  wages  so  that  employees  can  afford  his  cars.   May   come   a   time   when   the   org   seeks   help   from   society   and   previous   CSR   can   play   a   crucial   role-­‐   will   US,   UK   or   EU  tax  payer  bail  out  Amazon,  Apple,  Google,  Starbucks  etc.  Or  the  bankers  again?     Slide  7   CSR  at  core  of  organisational  values  especially  at  the  core  of  strategic  HRM.   McK  study  on  HRM  2012     Slide  8   Place  in  organisation  at  the  core  with  everyone  responsible  including  CEO  and  Board  but  primary  accountability   probably  best  in  Strategic  HR.   Not   in   legal   dept   as   too   much   concerned   with   rules   and   regulations   stopping   things   happening   (looking   backwards).  Reactive.   Not  in  PR  as  too  concerned  with  spin  which  is  rarely  believed  Reactive   Stand  alone  function  could  be  proactive  but  maybe  an  orphan  function  –  ignored  or  blamed.   In  HRM  Strategic  function  proactively  concerned  with  developing  employee  engagement,  selection  and  career   progression   and   with   Performance   management-­‐   not   in   HRM   ops   who   tend   to   act   as   organisational   police   force!!       Slide  9   Reactive-­‐  CSR  can  be  the  canary  in  a  mine  to  warn  of  threats  and  dangers.  If  things  are  wrong  in  CSR  likely  to  be   major  things  wrong  in  wider  org.     Slide  10   Proactive.  As    Kong  Qui  (Confucius)  said  it  is  “Better  to  light  one  candle  than  complain  about  the  dark”.     CSR  can  be  the  candle  to  shed  light  into  wider  issues.       Corporate  Social  Responsibility  :  Still  a  Challenge  for  HR  ?  –  October  22nd