The benefits of CSR in HRM
Introduction
CSR (Corporate Social Responsibility) is defined as corporate self-regulation aimed at benefiting society, particularly people, the environment, and the company's employees. Even if it is voluntary, participation in charitable and volunteer activities has a significant impact on a company's image.
Let's
have a look at some research on CSR and how it supports and benefits
businesses. The field of corporate social responsibility (CSR) studies the link
between the concept and the financial success of businesses (Aguilera et al.,
2007; Margolis and Walsh, 2003). According to Hillman and Keim (2001),
displaying CSR to primary stakeholders has a favorable influence on financial
performance. Based on their research, McGuire et al. (1988) discovered that
organizations with a reputation for social responsibility benefit financially.
According to Ruf and colleagues (2001), firms that voluntarily implement
socially responsive policies reduce transaction costs by increasing their
trustworthiness as a transaction partner, resulting in improved financial
performance.
Depending
on the size and importance of their business, companies demonstrate their
commitment to CSR in a variety of ways. All scenarios are possible, from
internal volunteer projects to global campaigns.
The
advantages of CSR may also be seen in strategic human resource management, and
here's why:
1.
Improvement of employee satisfaction
Employee satisfaction is influenced
by HR policies and company culture. Staff must conform to their own external
CSR guidelines in order to incorporate the aforementioned elements. Generation
Z, in particular, is the organization's young blood, and they believe that they
are also contributing to philanthropic and charitable efforts.
2.
Improvement of company image and corporate culture
Particularly for manufacturing
organizations with a substantial environmental or human impact, the structure
of a company's image is also an element of its culture and the DNA of its
activities. Production operations should run parallel with HRM strategies to
avoid conflict with the company's CSR activity.
3.
A strategic tool for recruitment
This generation will absolutely be
the future workforce, and they will play an important role in the expansion of
businesses. The competition for talent has never been stronger, thanks to
technology improvements and the popularity of LinkedIn and other professional
services. Companies no longer have the same competitive advantage they
previously did. Candidates have the option of deciding where they belong during
the two-way recruitment process.
The
Coca-Cola Company searched extensively to obtain local fruit to meet increasing
consumer demand from the region's burgeoning middle class while mango farmers
in Uganda encountered production obstacles and market challenges. Project
Nurture established the possibility for shared value by setting a high target
of doubling the average income of 50,000 small-scale mango and passion fruit
cultivators in Uganda and Kenya, as well as connecting them to the Coca-Cola
supply chain. The final conclusion here is the implementation of new
agricultural practices and the strengthening of the local and regional value
chain fueled demand for locally grown fruit.
Conclusion
To
conclude, corporate social responsibility (CSR) has progressed from a concept
to a global focus and a true global role to which every organization must
participate. CSR compliance has the potential to reinforce effective practices
in HRM while also having real-world societal repercussions and inspiring the
next generation, the future workforce.
References
Aguilera, RV,
Rupp, DE, Williams, CA & Ganapathi, J (2007) Putting the S back in
corporate social responsibility: A
multi-level theory of social change in organizations, Academy of Management
Review 32(3): 836-863.
Hillman, AJ
& Keim, GD (2001) Shareholder value, stakeholder management, and social
issues: What’s the bottom line?, Strategic Management Journal 22(2): 125-139
McGuire, JB,
Sundgren, A & Schneeweis, T (1988) Corporate social responsibility and
firm financial performance, Academy of Management Journal 31(4): 854-872.
Ruf, BM,
Muralidhar, K, Brown, RM, Janney, JJ & Paul, K (2001) An empirical
investigation of the relationship between change in corporate social
performance and financial performance: A stakeholder theory perspective,
Journal of Business Ethics 32(2): 143-156.
The Cocacola Company. (2016, 04 29). www.coca-colacompany.com.
Retrieved from Coca Cola Company:
https://www.coca-colacompany.com/news/shared-value-for-coke-and-african-mango-farmers
Tran, H. (n.d.). i-RH partner. Retrieved 08
28, 2021, from www.irh-partner.com:
https://www.irh-partner.com/en/the-benefits-of-csr-in-hrm/
The organizations are operating in the society and it is their responsibility is to take care of them. It also helps the organization to get a good reputation and even good business as the end of the day the income generates from the community that they goin to invest.
ReplyDeleteIn recent years, CSR has become a hot topic when it comes to environmental and climate issues. The explosive growth of social media and the internet has increased the need for corporations to be transparent with their employees and other stakeholders. Companies show their commitment to CSR in various ways, depending on their size and impact. From internal volunteer initiatives to global campaigns. Regardless of the impact, their good deeds are always appreciated by their own employees, future clients, and customers.
ReplyDeleteHuman resource management (HRM) and corporate social responsibility (CSR) are well-established study topics. In the last few years,
ReplyDeleteGreat topic and well written with adequate information Madushani. All th best
It is more than just a topic nowadays, it has become a worldwide focus and a real global task that every company needs to take part in. CSR compliance can not only reinforce best practices in HRM but also create actual social impacts and inspiration for the new generation, the targeted workforce of the future and it certainly contributes enormously to a company image. So thanks for sharing this valuable article
ReplyDeleteHR era can help with a CSR program, inclusive of decreasing the agency's carbon footprint to benefit the planet. begin with those areas: put in force and inspire green practices. Foster a subculture of social responsibility.
ReplyDeleteHuman resource professionals have a key role to play to help a company achieve its CSR objectives. Employee involvement is a critical success factor for CSR performance. Human resource managers have the tools and the opportunity to leverage employee commitment to, and engagement in, the firm's CSR strategy.
ReplyDeleteGreat Article Madushani! CSR activities are a very important part of any organization as it helps the to project an overall better brand image & lend a helping hand to wards a sustainable future. Not only will these activities help enhance the brand image it will also help to develop the local communities.
ReplyDeleteImplementation of Corporate Social Responsibility (CSR) strategies for management is an ongoing challenge for many organizations. HRM can provide interesting and powerful support in CSR strategy development and implementation and delivery. In today's dynamic environment CSR programs help to bring competitive advantage to the Organization.
ReplyDelete