CSR for HR - why partnership is necessary


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Presentation at the LBG Annual Conference organized by ARC Romania in Bucharest on 12th SEptember 2011

Published in: Business, Economy & Finance

CSR for HR - why partnership is necessary

  1. 1. Thank you! 12th September 2011, BucharestThank you!
  2. 2. CSR for HR ranks number 8 in the Top 40 Sustainability Books of 2010A wake-up call for HRManagement.Fills a major gap in the practicalknowledge that HR Managersneed to effectively partnersustainability strategy.Helps CSR practitionersunderstand and demand a value-adding contribution from the HRfunction.
  3. 3. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 1 “According to Ernst & Young’s second annual global survey of cleantech adoption, three- quarters of large international corporates plan to increase or significantly increase The cleantech budgets between 2012 and 2014. The survey questioned 300 corporations across all sectors with revenues of US$1bnunstoppable or more. rise of This year 44% of survey respondents anticipate their organizations will spend over US$50 million on cleantech while cleantech 12% expect their spend to exceed US$250 million.” http://greeneconomypost.com/cleantech-investment-coporations-15817.htm
  4. 4. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 2 The profit $27 million potential of savings going green http://www.usps.com/communications/newsroom/2011/pr11_008.htm
  5. 5. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 3 Employees want meaning as much as money 96% of students agree CSR is important in their choice of employer http://www.employerbrandingtoday.com/blog/2011/04/21/french-affection-for-csr-employers/
  6. 6. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 4Shareholderswant positive “Half way through its $300 million, company-wide sustainability plan, Plan A, ROI British retailer, Marks and Spencer reports the initiative has already become a cost positive venture resulting from savings made on climate change and waste initiatives.” http://www.sustainablelifemedia.com/content/story/brands/m_and_s_say_its_eco_plan_is_cost_positive
  7. 7. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 5 “We have come to recognize that best-run businesses do not The New simply embrace a sustainability strategy. Business Instead, they make their Strategy corporate strategy sustainable.” http://www.sapsustainabilityreport.com/co-ceo-letter
  8. 8. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 6 Successful delivery of If HR does sustainability strategy requires processes for embedding CSR not do it, culture and engaging employees.no-one will Embedding processes is the primary skill and contribution of the HR function.
  9. 9. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 7 CSR provides immense opportunities for HR to improve If HR does its strategic business contribution, leverage and not do it, influence. HR will HR needs CSR to maintain credibility as a legitimate long- not thrive term value-adding business partner.
  10. 10. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 8 Optimal delivery of CSR objectives requires an aligned organization and an engaged If CSR does workforce made up of the right people. not partner Typically, CSR Managers are not with HR, skilled in process or embedding culture, nor in recruiting people. CSR will FAIL CSR needs HR to ensure a CSR tools and process which enable CSR to succeed.
  11. 11. What happens now HR influence in CSR strategy development: 6% HR influence in CSRstrategy implementation: 25% Source: SHRM, “Advancing Sustainability: HR’s Role” 2011
  12. 12. The CSR-HR opportunity Business Partners (CSR) (CSR) Social Ethics Marketing Culture and Recruitmentcommunications Traditional HR (CSR) functions Community (CSR) involvement Environment (CSR) Human rights, diversity, health and Employee Remuneration safety Training and and benefits Development
  13. 13. HR with a CSR mindset: green employees EXAMPLE CSR Strategic • Emissions measurement and reporting business • Impact assessment • Green technologies / renewables priority • Workplace energy consumption • Business travel reduction Reduce carbonfootprint to meet • Environmental targets for Managers new • Recruitment of greenies environmental • Employee education on environment regulations, • Green Team structure and processreduce costs and • Employee energy savings suggestions • New travel policy attract investors HR
  14. 14. HR with a CSR mindset: green employees GreenTeams savemoney and engageemployees !
  15. 15. HR with a CSR mindset: employee wellness EXAMPLE CSR Strategic • Workplace health risk assessment business • Identify benchmarks and targets • Report improved employee health priority outcomes • Ensure strategic alignment Advance organizational • Formulate corporate policies with sustainability by regard to employee health proactively • Develop a health support program accepting shared • Provide employee health education responsibility for • Incentivize employees to engage employee health HR
  16. 16. HR with a CSR mindset: employee wellness Benefits Obesity -8% (2,800 px) Hypertenstion -16% (5,600 px) Cholesterol -12% (4,200 px) Smoking -3% (1,050 px) Physical activity +5% (1,750 px) Nutrition +17% (5,950px) ROI GBP 3.73 for every GBP 1 invested http://www.unilever.com/sustainability/employees/well-being/health/
  17. 17. HR with a CSR mindset: recruitment What’swrong withthis picture ?
  18. 18. HR with a CSR mindset: recruitment EXAMPLE CSR Strategic business • New green technology recruitment • Employees engaged in sustainability priority • Employer Brand alignment withEnsure right people, sustainability communicationsright skills, right jobs to meet new • New recruitment channelscleantech challenges • Diverse candidate pipeline and advance • Training of internal recruiters in corporate diversity principlessustainability with a • Partnerships to help accessibility to minority groups diverse workforce HR
  19. 19. HR with a CSR mindset: recruitment • Recruit the right talent :A sustainable explore all channels for a diverse workplace workforce needs • Recruit in the right way : sustainable equitable recruitment processes recruitment practices • Recruit cost-effectively: reduce recruitment costs
  20. 20. HR with a CSR mindset: recruitment 76%Companies with a Han’s Company of candidateshigher proportion (Singapore) consider reputation of women in top reports increase in and image before management productivity after joining a company. perform better three years of 40% +10% diversity practices of reputation comes by from factors related +40% ROE versus to citizenship, governance andindustry average workplace McKinsey, 2007 MOM, Singapore,2010 CSHR blog,2011
  21. 21. HR with a CSR mindset: recruitment Government collaboration Minority groupsTeva Pharmaceuticals 405 exploits employees recruited Special needs all possible via “alternative “recruitment channels to source external channels in 2009 candidates to meet Returning needs at lower cost Recently scientists laid-off workers
  22. 22. HR with a CSR mindset: recruitment Pepsico: ‘Profit with Purpose’ is the single biggest recruiting tool thatEnsure your we have in Pepsico today employer brand reflects your CSR approach http://www.pepsico.com/Purpose/Performance-with- Purpose.html
  23. 23. HR with a CSR mindset: ROI HRM role HRM objective HRM metric Business value % of employees trained in values and ethics. Mitigation of risk due to unethical Values and Employees understand and behave % of employee responses in survey behaviour by employees. Improved Ethics in line with corporate values. showing employee support company corporate reputation and trust. values.Recruitment Recruitment is based on diversity % of employees recruited by gender and by Improved business results, innovation principles. minority groups. and customer satisfaction. Compensation is driven by equal Ratio of base salary men to women. Lower HR costs due to turnover, opportunity for men and women. improved motivation and trust.Compensation Compensation is linked to Number of employees with sustainability Improved execution of sustainable sustainability performance. targets in annual work-plans. business strategy. % of employees who engage in a corporate Employees are fit to contribute to wellbeing program. Reduced business health costs, lower Well-being % improvements achieved in employee their maximum capability. absenteeism, improved productivity. wellbeing (health, stress, diet etc.) Diverse employees are given % of women in management positions. Improved business results, innovationDevelopment opportunities to advance. % of minorities in management positions. and customer satisfaction. Employees understand and act in % of employees trained in sustainability. Improved execution of sustainable line with sustainability strategy and business strategy. principles. Employees enhance corporate % of employee volunteers. Employee engagement, reputationEngagement community relations. benefits, enhanced community relationships. Employees contribute to improving % of employees participating in "green" Energy and materials costs environmental impacts. activities. reductions.
  24. 24. HR with a CSR mindset: ROI HRM role HRM objective HRM metric Business value Recruitment is % of employees Improved business based on recruited by gender results, innovationRecruitment diversity and by minority and customer principles. groups. satisfaction. % of employees who Reduced business Employees are engage in a corporate healthcare costs, wellbeing program. reduced health fit to contribute insurance costs, lowerWell-being to their % improvements turnover and maximum achieved in employee absenteeism, capability. wellbeing (health, improved stress, diet etc.) productivity.
  25. 25. It is time for HR to wake up to CSR!
  26. 26. Thank you for listening! Good Luck in all you do! Be in touch if I can assist you in any way! www.csrforhr.com Elaine Cohen elainec@b-yond.bizCell: +972-523-495-688 www.b-yond.biz/en