CSR for HR

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.

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.


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:


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!


A responsible workplace moves from
impacts ON employees to impacts
OF employees.


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…

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


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


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.


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 ?


Sharon understands that …

Human Resources
Managers have a
responsibility to
change the system.

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


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


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

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.


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.


A consultant presents to Sharon’s team on the
subject of employee communications:

Business 2.0
HR 2.0
You 2.0


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


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


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


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

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


Sharon also learns about

and how the business, and employees, and the
planet can benefit .


Sharon has been very thorough!

She then starts to think about how to implement
all of this in her Company.


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


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


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.


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!

• 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


• 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!


It is time for HR to wake up to CSR !


CSR for HR

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