People and Organisations: Principles and Practice in Global Contexts (MN7181): Corporate Social Responsibility (Blog 10)

Definition to Corporate Social Responsibility

Jamali (2015) explains that CSR is the obligation for business organisations to impact the society in which they operate beyond the singular motive of pure profit maximization and further she emphasise the role of HRM in the development of internal CSR initiatives by claiming that the nature of the organisation’s CSR objectives has impact on the role of HRM in developing these objectives. Sahlin-Anderson (2006), considers CSR as a global trend incorporating business corporations, states, international organizations and civil society organizations.

Video 1: What is CSR

Human Resource is a strategic partner in an organisation and as such, can help drive the formulation of the CSR strategy. This is the case especially in companies where CSR is positioned in HR department and thus the HR manager has a key role when it comes to CSR strategy development (Strandberg, 2009). According to Cohen (2010), HR can leverage CSR strategies to deliver greater benefits for the business, for employees, for society, for the environment and ultimately, for HR professionals themselves.

Carroll’s Pyramid of Corporate Social Responsibility

This covers the Economic, Legal, Ethical and Philanthropic responsibilities of an organisation.

( Figure 1 : Carroll’s Pyramid of Corporate Social Responsibility )

Economic responsibility: Companies have a responsibility of an economic nature, since they have a responsibility to produce goods and services that society wants and sell them in a profitable way. The basis for the functioning of a company is producing and selling goods for profit.

Legal liability: The company expects companies to undertake their economic mission within the legal requirements established by the legal system of society. It is expected that the company complies with laws and regulations or that the products and services offered by companies have security standards and comply with existing environmental regulations.

Ethical responsibility: Represents ethical behaviors that are expected that companies have. This has become more important, because the tolerance of society against unethical behavior is dwindling. The decision should consider the consequences of their actions, honoring the rights of others, fulfilling obligations and avoiding harming others.

Philanthropic responsibility: Represents discretionary actions taken by the company in response to social expectations. They respect the activities undertaken by companies assuming a social role that goes beyond the legal and ethical obligation, assuming an increasingly strategic importance. Examples: charitable contributions, employee training, extension of benefits to employees' families.

The Benefits of Corporate Social Responsibility

A successful CSR initiative takes organisation beyond compliance with legislation and leads them to honour ethical values and respect people, communities and the natural environment. CSR is sustainable - involving activities that organisation can maintain without adversely affecting your business goals (Geethamani, 2017).

( Figure 2: benefits of CSR )

Researcher Geethamani (2017) express Advantages and Disadvantages of CSR,

Advantages of CSR

Companies would know what is expected of them, thereby promoting a level playing field.

Many aspects of CSR behaviour are good for business (such as reputation, human resources, branding and making it easier to locate in new communities) and legislation

It could help to improve profitability, growth and sustainability.

Some areas, such as downsizing, could help to redress the balance between companies and their employees.

Rogue companies would find it more difficult to compete through lower standards.

The wider community would benefit as companies reach out to the key issue of underdevelopment around the world.

Disadvantages of CSR

Additional bureaucracy, with rising costs for observance.

Costs of operation could rise above those required for continued profitability and sustainability.

Critics already argue that the CSR of companies is simply to make a profit, and legislation would increase the vocalisation of these concerns.

Reporting criteria vary so much by company, sector and country, and they are in constant evolution.

References

Carroll, A. B. (1979) ‘A three dimensional conceptual model of corporate social performance’, Academy of Management Review, Vol. 4(4), pp. 497-505.

Cohen, E. (2010) ‘CSR for HR: A necessary partnership for advancing responsible business practices’, Sheffield: Greenleaf Publishing Limited.

Geethamani, S. (2017) ‘International Journal of Applied Research’, Vol. 3(3), pp. 372-374. [Online] Available at: http://www.allresearchjournal.com/archives/2017/vol3issue3/PartF/3-3-11-827.pdf [Accessed on: 02 October 2018].

Jamali, D. R., El-Dirani, A. M. and Harwood, I. A. (2015) ‘Exploring human resource management roles in corporate social responsibility: the CSR-HRM co-creation model. Business Ethics’, A European Review, Vol. 24(2), pp. 125-143.

Sahlin-Anderson, K. (2006) ‘Corporate social responsibility: A trend and a movement, but of what and for what?’ Corporate Governance, Vol. 6(5), pp. 595-608.

Strandberg, C. (2009) ‘The role of human resource management in corporate social responsibility’, Burnaby: Industry Canada.

Figure 1: PIDGETHINK (2018) Carroll’s Pyramid of Corporate Social Responsibility, [Online] Available at: https://pidgethink.net/the-beginning-of-my-journey-in-exploring-business-ethics [Accessed on: 02 October 2018].

Figure 2: Benefits of CSR : [Online] Available at: https://www.quora.com/What-are-the-benefits-of-corporate-social-responsibility-to-companies [Accessed on: 02 October 2018].