Professional Documents
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HRM's Role in Corporate Social and Environmental Sustainability
HRM's Role in Corporate Social and Environmental Sustainability
SHRM Foundation’s
Effective Practice Guidelines Series
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12-0124
Table of Contents
iii Foreword
v Acknowledgments
Sustainability
1 Introduction: The Business Case for Sustainability
Sustainability Performance
Volunteering Programs
24 Employer Branding
25 Green HRM
31 Conclusion
33 References
Foreword
Dear Colleague:
Sustainability is often defined as the “ability to meet the needs of the present without
compromising the ability of future generations to meet their needs.” Going beyond
environmental sustainability, this concept now includes all types of social and environmental
impacts. As sustainability becomes a key focus for more organizations, employers must
develop a new way of doing business. In addition to focusing on financial profits, sustainable
companies must also consider social and environmental impacts when making business
decisions. The HR function has a critical role to play.
This new SHRM Foundation report, HRM’s Role in Corporate Social and Environmental
Sustainability, outlines the business case for sustainability and explains how HRM can take a
leading role in both developing and implementing sustainability strategy.
We created the Effective Practice Guidelines series in 2004 for busy HR professionals. By
integrating research findings on what works with expert opinion on how to conduct effective
HR practice, this series provides the tools needed to successfully implement evidence-based
management.
This report is the 15th in the series. Other recent reports include Promoting Employee Well-
Being, Transforming HR Through Technology and Onboarding New Employees. To ensure
the material is research-based, comprehensive and practical, each report is written by a
subject-matter expert and then reviewed by both academics and practitioners. The reports
also include a “Suggested Readings” section as a convenient reference tool. All reports are
available online for complimentary download at www.SHRMFoundation.org.
The SHRM Foundation provides unmatched knowledge for the benefit of professional
workforce leaders. Our educational resources, such as the Effective Practice Guidelines
series, are used in hundreds of college classrooms worldwide. We are also a major funder of
relevant, high-impact, original research. We award more than $150,000 annually in education
and certification scholarships to SHRM members. And all this good work is made possible by
the generous support of donors like you.
I encourage you to learn more. Please visit www.SHRMFoundation.org to find out how you
can get involved with the SHRM Foundation.
Acknowledgments
The SHRM Foundation is grateful for the assistance of the following individuals in producing
this report and the companion executive briefing*:
Major funding for the Effective Practice Guidelines series is provided by the
HR Certification Institute and the Society for Human Resource Management.
v
HRM’s Role in Corporate Social and Environmental Sustainability
ELAINE COHEN
Elaine Cohen is CSR Consultant and Sustainability Reporter and a
former country Human Resources VP with Unilever. Elaine is the author
of CSR for HR: A Necessary Partnership for Advancing Responsible
Business Practices (Greenleaf, 2010). Elaine can be contacted at
elainec@b-yond.biz.
SULLY TAYLOR
Sully Taylor is Professor of International Management and former
Associate Dean for Graduate Programs at the School of Business
Administration, Portland State University. She has published
extensively in international HRM, global mindset, leadership and
corporate cultures, and also teaches sustainability HRM and
leadership. She is currently a guest editor of HRM Journal for a special
issue on sustainable HRM. Sully can be contacted at
sullyt@sba.pdx.edu.
MICHAEL MULLER-CAMEN
Michael Muller-Camen has a Chair in HRM at WU Vienna University of
Economics and Business and is Associate Professor of International
HRM at Middlesex University Business School in London. He has
published extensively in international HRM, green HRM and age
management and is the co-editor of a special issue of Zeitschrift für
Personalforschung (German Journal for Research in Human Resource
Management) on green HRM. Michael can be contacted at
Michael.Muller-Camen@wu.ac.at.
vii
Alongside economic considerations of growth and profit, organizations should be held
accountable for their impacts on society and the environmental risks and opportunities
when making all business decisions.
HRM’s Role in Corporate Social and Environmental Sustainability
INTRODUCTION
1
HRM’s Role in Corporate Social and Environmental Sustainability
2
HRM’s Role in Corporate Social and Environmental Sustainability
Glossary of Terms
Sustainability is often defined as the “ability to meet the needs of the present without compromising the ability of
future generations to meet their needs.”10 Sustainability initially meant environmental sustainability, but today the
term is used to refer to all aspects of social and environmental impacts.
Triple bottom line is the performance measurement of an organization pursuing a sustainable strategy. “A
sustainable enterprise, therefore, is one that contributes to sustainable development by delivering simultaneously
economic, social, and environmental benefits—the so-called triple bottom line.”12
CSR (corporate social responsibility) is “the sum of the voluntary actions taken by a company to address
the economic, social and environmental impacts of its business operations and the concerns of its principal
stakeholders.”13 In October 2011, the European Commission published a new definition of CSR: “The responsibility
of enterprises for their impacts on society.”14
Difference between sustainability and CSR: Sustainability at the corporate level is the focus on creating
a business model that is sustainable from an ecological, financial and social point of view and that identifies
“strategies and practices that contribute to a more sustainable world and, simultaneously, drive shareholder value;
this we define as the creation of sustainable value for the firm.”15 Addressing sustainability issues thus becomes
deeply embedded in the organization’s basic business operations and integral to its business strategy. CSR,
however, is concerned with decreasing the negative impacts of corporate actions in pursuit of a business strategy
and is thus considered largely voluntary and is often practiced at a tactical level without affecting core business
processes.
Sustainable HRM is the utilization of HR tools to help embed a sustainability strategy in the organization and the
creation of an HRM system that contributes to the sustainable performance of the firm. Sustainable HRM creates
the skills, motivation, values and trust to achieve a triple bottom line and at the same time ensures the long-term
health and sustainability of both the organization’s internal and external stakeholders, with policies that reflect
equity, development and well-being and help support environmentally friendly practices.
and values-based recruitment should involve HR managers through ■■ Performing HRM sustainably:
using sustainability-informed collaboration and consultation as Creating and delivering HRM core
employer branding. The tangible well as demand HRM accountability processes, which are themselves
outcomes of strong sustainable for sustainable HRM practices. At founded on principles of
HRM performance include not only the same time, HR professionals sustainability.
support for the achievement of broad must update their approach from
sustainability business objectives, transactional or transformational
but also measurable contributions HRM to sustainable HRM. HRM has
supporting BUSINESS
to HRM performance, including two main roles in the implementation SUSTAINABILITY
lower employee turnover, lower of sustainability strategy in any In the first role—supporting business
absenteeism, improved employee organization, each of which will be sustainability—a variety of tools
well-being, and an overall increase discussed in greater detail in the are available to the HRM function.
in employee engagement, motivation remainder of this section: Before examining these tools, the
and productivity. HRM function will need to assess
■■ Supporting business the organization’s stage in advancing
In order for HRM to redirect itself and sustainability: Using the process- sustainability to make the most
the organization toward sustainability, based tools of HRM to embed relevant choices. Organizations
corporate sustainability leadership sustainability strategy in an may come to realize the need for
must regard HRM as a critical organization’s culture and practices. sustainability via different routes:
contributor. Organizational leaders
3
HRM’s Role in Corporate Social and Environmental Sustainability
■■ A values-based route: Typically, ■■ A strategic route: Typically, this industry, came under attack for
this approach can be found in approach has been adopted by human rights abuses, such as child
smaller, privately owned businesses organizations well positioned to labor, in the supply chain. Public
in which the founders’ values dictate redesign their business model outcry against immoral corporate
the business culture. Often-quoted to deliver products and services practices forced employers to
examples are Anita Roddick’s Body offering sustainability benefits. take responsibility for the social
Shop, Jeffrey Hollender’s Seventh The most-quoted example in this impacts of their business activities.
Generation, Ben Cohen and Jerry regard is General Electric and its Later, environmental issues such
Greenfield’s Ben and Jerry’s, and “ecomagination” line of products, as those faced by Shell Oil in the
Stephan Schmidheiny of Amanco designed to create a market for Niger Delta (including two spills
in Latin America. Even though green appliances, which it has done reported in 2008 that triggered
these companies may have grown very successfully. ongoing social and environmental
to become large corporations, their problems for almost 70,000 people
■■ A defensive route: This approach
core culture was a reflection of the in the Bodo region; these were just
developed in the late 1990s as
personal principles and passions of two of the 1,000 spills attributed
organizations, notably the apparel
their founder-owners. to Shell in this region since the
4
HRM’s Role in Corporate Social and Environmental Sustainability
5
HRM’s Role in Corporate Social and Environmental Sustainability
6
HRM’s Role in Corporate Social and Environmental Sustainability
7
HRM’s Role in Corporate Social and Environmental Sustainability
To drive lasting cultural change that reaches all its employees, SAP in of sustainable HRM tools or their
2008 created 125 Sustainability Champions worldwide. Its major locations implementation, such as monitoring
in the United States, the Asia-Pacific region, Germany and Canada are vendors’ labor practices. However,
represented, and part of each Champion’s work time is devoted to raising smaller employers are sometimes
awareness, education and mobilization among all 50,000 SAP employees nimbler and more creative in
around the globe. 50 sustainable HRM tool design and
in fostering a sustainable company
culture. 55 Owner-led firms are
may also elicit a positive response example.52 Ray Anderson, the CEO
often influenced more directly by
from employees. 51 of the innovative modular carpeting
the passion and principles of their
company, had an epiphany in 1994 that
founders (for example, Ben & Jerry’s
the traditional industrial model they had
Which HRM tools should and Timberland).
been using had to be replaced with one
a company use to embed that “focused on sustainability, using a
sustainability? cyclical model mimicking nature.”53 As a Sustainable HRM and ITS
Although clear evidence, as discussed result, he turned Interface into a billion-
Impact on Sustainability
above, exists for some of the best dollar corporation that has been named
HRM practices for embedding
Performance
by Fortune magazine as one of the
sustainability, each organization “Most Admired Companies in America.” As discussed previously, HRM tools
must decide which tools are most Others take a more incremental can be used to embed a sustainability
appropriate for its situation. The tools approach to improving their current strategy. Yet the HRM function,
an employer chooses to use, and products and operations by significantly in addition to developing and
which group of employees to focus reducing resource consumption and implementing HRM tools, should give
on the most, will depend on two key environmental impacts without a equal attention to the impacts of its
criteria: the organization’s approach change in their basic business model,54 HRM system on the organization’s
to its sustainability strategy and the and community involvement projects sustainability performance, particularly
resources available. are add-ons rather than core business from a social standpoint—what are
value drivers. the positive and negative effects on
Starting with the approach to employees and communities?
sustainability, some sustainability In terms of resources, large
strategies require a complete organizations may have more An area of focus in terms of HRM
rethinking of the business model of managerial and financial resources systems’ impact on an organization’s
the organization. Interface is a prime available to devote to the creation sustainability performance may be
8
HRM’s Role in Corporate Social and Environmental Sustainability
expressed in terms of the impact on Diversity and inclusion involve At Loblaw, a large grocery
employees’ physical and emotional measuring the impact of HR processes retailer in Canada, sustainable
health, as well as the impact on on hiring women, members of minority HRM is manifested in several
employees’ families and their groups, people over the age of 45, programs to engage employees
communities resulting from the design people with disabilities, or those who and reward them for positive
of the organization’s HRM system. In have been unemployed for extended contribution. Loblaw sees
other words, the core question for HRM periods of time and may have difficulty “Being a Great Place to Work”
practitioners is whether the HRM system reentering the job market. At the as integral to the company’s
and the way HRM tools are used result same time, important “social bottom CSR program. Best practices
in enhanced sustainability performance lines” that contribute to equity include at Loblaw include “Morning
for the organization along the three providing “voice”57 to employees Huddles” (short morning
dimensions of equity, well-being and through creating an inclusive corporate meetings held every day at 9
development. culture, giving employees complete a.m. to provide employees with
freedom to organize into unions, and relevant information that will
ensuring respect for their human rights help them do their job) and a
Equity in the workplace. recognition program designed
In designing a sustainable HRM to acknowledge colleagues
system, HR managers must examine who go above and beyond
its impact on diversity and inclusion, Well-being what is expected of them in
employee voice and human rights. Perceptions of sustainability by their jobs. Recognition can
consumers and other stakeholders come from peers, managers or
are often significantly influenced even external sources such as
Impahla Clothing Company, by the way organizations approach customers or suppliers. This
a privately owned garment employee well-being. In a survey holistic approach by Loblaw
manufacturing company based of consumers, the Do Well Do to employee engagement,
in Cape Town, South Africa, Good Public Opinion Survey on alongside other activities, led
with fewer than 200 employees, Sustainability, published in November to an increase in measured
places great emphasis on the 2011, 58 respondents picked two employee engagement and a
economic welfare of employees. employee issues related to well- reported 11.5 percent decline in
The company’s stated targets being when asked to rate a total of turnover in 2010. Furthermore,
in its Sustainability Report 2010 17 issues in terms of how important the company has been
include maintaining a zero they are for organizations to address. repeatedly recognized as one of
short shift policy (in order that The two top issues selected by Canada’s Top 100 Employers. 59
employees can maintain their consumers were (1) Pay employees
levels of income), ensuring a competitive wages and benefits (for
zero redundancy (layoff) policy example, health care, pension); and HRM systems on workers’ health
and promising that wages will (2) Provide training and educational and their lives can be enormous.
be paid in full, on time and, opportunities for employees. Clearly, Being accountable for these impacts
where possible, in the presence HRM practitioners must consider the should be part of an organization’s
of performance and special external impacts and perceptions sustainability strategy.
gratitude awards. These are of HR policies in the workplace
as a crucial factor in determining Well-being also affects workforce
significant public commitments
approaches to employee well-being. planning in the HR function, placing an
to enlightened and sustainable
onus on sustainable HRM systems to
employment practices in a small
In a 2010 article, Jeffrey Pfeffer hire, develop and terminate employees
business, which, even in the
challenged HRM practitioners to in ways that avoid large layoffs
presence of financial pressure,
think about the social impacts of their whenever possible. When layoffs are
understands that its sustainable
HRM systems, in addition to pay and necessary, employers provide support
success is tied to the ongoing
economic stability. From job design for those dismissed,60 thus mitigating
economic well-being of its
to the provision of health insurance to negative impacts on society, especially
employees. 56
the amount of stress from work hours, in local communities where the
the direct and indirect effects of organization operates.
9
HRM’s Role in Corporate Social and Environmental Sustainability
10
HRM’s Role in Corporate Social and Environmental Sustainability
align with organizational strategic This next section examines the (GRI), 66 and the core HRM issues it
sustainability objectives. following topics: addresses.
Even in the absence of sustainability ■■ Underlying ideal conditions that ■■ Metrics of sustainable HRM that
leadership and executive team support a framework for action define both HRM performance
support, HRM must still develop by the HRM leadership in any and the outcomes of value to the
sustainability within the HR function. organization. organization, society and environment.
Many of the core HR processes in ■■ Practical steps that HRM can take ■■ New skill sets that sustainable HRM
any organization can be performed
to advance along the roadmap leaders must acquire to fulfill their
through a sustainability lens and
to achieve sustainable HRM in a role within a sustainable business.
bring benefits such as cost savings,
sustainable organization.
business development, employee
engagement and empowerment of ■■ Leading sustainability frameworks ORGANIZATIONAL READINESS
local communities. As sustainable HRM that may serve as guidelines for FOR SUSTAINABILITY
brings benefits to the organization, sustainable HRM, with a special
Just as any house, building or factory
HRM as a function will be seen to focus on the leading reporting
must be built on a solid foundation, the
deliver robust, sustainable people framework in use by thousands
journey to sustainability must begin
programs that contribute to the of companies around the world,
at a point that assumes a certain set
achievement of business objectives.65 the Global Reporting Initiative
of preconditions to form the optimum
11
HRM’s Role in Corporate Social and Environmental Sustainability
Organizational Culture
Sustainable
HR Tools and
Processes
Organizational Culture
foundation for sustainability in any more ambitious plans to advance to ensure corporate integrity, and
organization. sustainable practices. in many cases, the way the board
directs the organization’s strategy
Figure 3 depicts five preconditions
regarding sustainability. For HRM,
for the successful application of Three pillars of sustainability board direction on sustainability can
sustainable HRM (or indeed for a Compliance is the state of being in
provide a necessary, legitimizing and
sustainable organization): compliance, accordance with all national, federal,
empowering framework for advancing
governance, ethics, culture and regional or local laws, regulations and
sustainable HRM practices.
leadership. government authority retquirements.
Not being in accordance with such Business ethics is a set of behavioral
When an organization has these five regulations often incurs sanctions in guidelines by which all directors,
preconditions in place, it is ready to the form of business limitations, fines managers and employees of an
commence the sustainability journey or even legal proceedings. Compliance organization are expected to behave
and stands a good chance of success. with labor regulations is a critical start
to ensure appropriate moral and
Compliance, governance and ethics point for sustainable HRM. 67 ethical business standards, typically
serve as the three pillars of a solid
beyond the letter of the law. Ethics
platform for the development of Corporate governance is “the
usually includes guidelines relating
sustainability. Organizations may take system by which companies are
to conflict of interest, corruption,
several years of concerted effort to directed and controlled.”68 Of
bribery, maintaining business records,
reach this point. The role of HRM is particular relevance to corporate
discrimination, showing respect for
to verify that these three pillars are governance is the way the board
people and more. Publicly traded
firmly in place before deciding on of directors performs its duties
companies in many countries are
12
HRM’s Role in Corporate Social and Environmental Sustainability
What can the HR manager do to promote a corporate culture that is receptive to sustainability?
Beyond articulating and leveraging the organization’s social mission, HR managers can promote some practical
aspects of corporate culture to set an effective stage for developing sustainability. These might include the follow-
ing aspects:
■■ Embedding business ethics.
■■ Employee updates on business results, programs and developments.
■■ Open exchanges or round table discussions with senior management.
■■ Development of social networks for internal collaboration and communication.
■■ Suggestion boxes or programs for employees to contribute new ideas.
■■ Encouragement of processes—meetings with customers, suppliers and community groups— to elicit stakeholder
input about their expectations of the organization.
13
HRM’s Role in Corporate Social and Environmental Sustainability
14
HRM’s Role in Corporate Social and Environmental Sustainability
It contains principles of social and what should be reported but also for a generic roadmap for sustainable
environmental responsibility as well as what should be done. HRM that includes the key elements
guidance for action and expectations from each.
Given that the GRI is the de facto
for implementation.75
leading framework for sustainability As GRI is the prominent framework
reporting and that the number used for reporting on sustainability,
SA8000 of organizations using the GRI one option for HRM is to review
SA8000 is a certifiable standard Framework grows significantly GRI’s performance requirements and
focusing on the aspects of human every year, HR managers must reporting indicators and to use this
rights and labor standards of business understand it in order to be part of an as a basis for action. In doing so, of
operations and prescribes both effective corporate reporting team. course, HR managers must take into
process and performance criteria. By familiarizing themselves with the account organizational size, sector,
One of the earliest certification GRI requirements, HR managers culture and maturity in adapting to
standards, used as early as 1998, it retain credibility as partners in the change. Any process developed
has been adopted by close to 2,500 sustainability strategy discussion and to implement different aspects of
facilities around the world with almost performance reporting process. sustainability performance should be
1.5 million employees. SA8000 is tailored to an organization’s current
often used as a tool for ensuring The GRI Framework covers a
state of mind and practice and be
human rights in extended supply range of HR-related activities in
aligned with other organizational
chains rather than being limited to support of sustainability related to a
processes as far as possible.
direct employees. An important part responsible workplace: human rights,
of this standard is its focus not only safety practices, labor standards, The following section examines these
on standards of performance but also performance development, diversity, performance elements through the
on management systems that need to employee compensation and more. framework of GRI indicators and
be put in place to ensure the proper In 2010, the Framework was updated provides guidance for sustainable HRM.
outcomes. 76 to version 3.1 and now includes
new guidance on gender diversity
and human rights. The performance
THE GRI FRAMEWORK AND
The Global Reporting indicators contained in the GRI HRM-RELATED INDICATORS
Initiative (GRI) Framework can form an initial scorecard for The GRI Reporting Framework
The Global Reporting Initiative is a HRM’s contribution to a sustainable addresses all aspects of organizational
network-based, multi-stakeholder organization. sustainability, including strategy,
organization, with a mission to governance, ethics, and economic,
Many of the standards referred social and environmental aspects of
advance the “mainstreaming of
to above use common reference business, requiring disclosures on
disclosure on environmental, social
77 points, such as the Universal management approach and actual
and governance performance.” The
Declaration of Human Rights and performance. Sustainability reporting
GRI Framework was first published
other broadly accepted international is still voluntary in most countries, but
in 2000 and has undergone several
labor conventions, and are therefore those organizations that elect to report
revisions and updates, with the
similar at their core. To provide the in line with the GRI Framework offer
current version being version 3.1
best support for sustainability, HR disclosures in each of these areas.
(version 4 is due for release in 2013).
managers should align HRM policies While HRM is only one dimension
Most organizations that publish and tools to the selected standard or of sustainable business, the GRI
sustainability reports—close to 6,000 approach (such as GRI, ISO 26000 Framework includes many references
per year on a global basis—use the GRI or SA8000) their organization has to policies and performance, which fall
Framework to guide their reporting. By adopted. within the functional responsibility of
doing so, they often find that the need HRM. These indicators are included in
to report creates an internal catalyst the different categories of sustainability
Commonalities among
effect for developing strategy and indicators in the GRI Framework.
action plans in the organization. The labor standards
GRI Framework can therefore be seen Given the commonalities in all these The GRI 3.1 Reporting Framework
as a guidance document not only for standards, organizations can develop identifies 84 sustainability
15
HRM’s Role in Corporate Social and Environmental Sustainability
6 84 26
Economic 9 2
Environment 30 0
Labor Practices 15 15
Human Rights 11 8
Society 10 1
Product Responsibility 9 0
performance indicators used in compared to local minimum while ensuring a local workforce
sustainability reporting. Of these, wage at significant locations of (that is, nationals of the countries of
as shown in Figure 4, 31 percent operation. operation), which is familiar with local
are directly related to HRM, which culture, customs and work processes.
suggests a significant role for
■■ EC7: Procedures for local
Hiring locally also supports business
HRM, second only to the single hiring and proportion of senior
continuity, reduces cost (expatriation
most dominant element of the GRI management hired from the local
comes with a major price tag) and
Framework, environmental impacts. community at significant locations
builds local stakeholder relationships.
of operation.
HRM, in supporting a sustainable
Economic indicators Both of these indicators reflect the organization, should develop a policy
Economic indicators cover the direct impact of HRM policies on local related to local hiring and measure
economic impacts of an organization economies, well beyond the internal results.
on global, national and local aspects of HRM. As an employer, a
economies. Sustainability, in the sustainable organization will seek
Labor practices and
“triple bottom line” context, assumes to compensate employees beyond
decent work indicators
a fundamental robustness in terms minimum wage levels, which are
The GRI Labor Practices Indicators
of financial performance and an usually determined as providing the
are largely formulated using the
understanding of an organization’s most basic needs of employees for
platform of the International
economic effects on society. The subsistence with dignity (food, shelter
Labor Organization’s Decent
GRI Framework, therefore, requires a and utilities, clothing, health care, and
Work Agenda,78 which was
reporting entity to disclose the extent education). The legal minimum wage
developed to provide a set of
and nature of such economic impacts. in most countries may not always
minimum expectations that would
The two economic indicators directly be sufficient to afford even this low
ensure the implementation of four
relevant to HRM are: standard of living.
strategic objectives relating to
■■ EC5: Range of ratios of standard Similarly, local hiring is a way to show the establishment of productive
entry-level wage by gender commitment to local communities employment, fair globalization,
16
HRM’s Role in Corporate Social and Environmental Sustainability
An example of best practice in the area of living wage is demonstrated by Novartis, the pharmaceuticals company.
Novartis conducted a project in conjunction with BSR,79 a large NGO promoting corporate social responsibility, to
determine what actually constitutes a living wage around the world in all the countries it operates in, as a way to
develop and measure its progress against the UN Global Compact principles. Novartis defines a living wage as:
■■ Basic food need for employees and their immediate families.
■■ Basic rent.
■■ Basic health and education for employees and their immediate families.
■■ Clothing for employees and their immediate families.
■■ Transportation to and from work.
Novartis took a proactive stance on defining a living wage and on adopting a policy for all its business units that
required them to adjust the wages of 125 employees in 2005 through 2007. It went beyond compliance with the
law to develop a plan meaningful to their key stakeholders. Novartis believes it makes good business sense.
“Novartis considers the living wage initiative an opportunity to contribute to the improvement of labor standards
and have a positive impact on communities where the company operates. This is particularly important in
developing countries where legal protections for workers may not be as advanced as in industrialized nations.”80
Research 88 shows that collective bargaining coverage is the only HRM-related GRI Indicator in which companies
openly disagree with GRI expectations. According to GRI, “Collective bargaining is an important form of stakeholder
engagement…that helps build institutional frameworks and is seen by many as contributing to a stable society.
Together with corporate governance, collective bargaining is part of an overall framework that contributes
to responsible management. It is an instrument used by parties to facilitate collaborative efforts to enhance
the positive social impacts of an organization. The percentage of employees covered by collective bargaining
agreements is the most direct way to demonstrate an organization’s practices in relation to freedom of association.”
Nevertheless, in sustainability reports many companies report that their collective bargaining coverage is zero
percent. Some even explicitly state that they are opposed to collective bargaining. For example, the U.S. insurance
firm Allstate states in its Social Responsibility Report 2009: “Allstate is not a unionized company. We recognize that
unions play an important role in society, but the company does not believe a union can accomplish anything for our
employees that they cannot accomplish for themselves by dealing directly with the company.”89
LA5: Minimum notice period(s) regarding significant operational changes, including whether it is specified in
collective agreements.
18
HRM’s Role in Corporate Social and Environmental Sustainability
LA7: Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities
by region
and gender.
LA8: Education, training, counseling, prevention, and risk-control programs in place to assist workforce
members, their families,
or community members regarding serious diseases.
19
HRM’s Role in Corporate Social and Environmental Sustainability
In a sustainable organization,
investment is made in the development MAS Holdings, the Sri Lankan apparel manufacturer, has been
of employee skills and competencies, internationally recognized for its programs to advance and empower
resulting in both business benefits women through investment in their professional development. In addition
(more capable employees) and to maintaining basic workplace standards (for example, a limit on working
in a contribution to society (more hours and overtime, age limits, and safe working conditions), MAS gives
employable employees). These its workers—over 90 percent of whom are women—benefits such as
investments are not new for HRM— free transport and breakfast and on-site health care services. The MAS
most HR managers are responsible “Women Go Beyond” program is focused on promoting knowledge,
for developing training programs and awareness, leadership skills, attitudinal changes, and the ability to
employee performance evaluation balance work and personal life, providing growth and empowerment for
processes as part of their core role. In the company’s female workforce. Each year, achievements are celebrated
a sustainability context, the emphasis through the “Empowered Woman of the Year” awards ceremony. MAS
is on the degree of value these Holdings confirms that this program improves employer capability, loyalty
processes add to the employee as a and motivation, while providing the company with a larger pool of stable
key stakeholder. Instead of training talent from which to select future managers. 92
being defined primarily as necessary
to meet business objectives, training
employees as stakeholders are seen in place. HR policy often covers,
and personal development are seen
as having a right to transparency with for example, the ratio of salaries
as adding value to individuals. In
regard to their relationship with their between men and women, which
cases of downsizing, for example,
employer. Thus, employees should confirms equality of opportunity, but
employees released by an organization
receive regular, formal feedback in practice, HRM must measure the
should have amassed an arsenal of
about their performance. By ensuring actual remuneration levels to identify
skills and competencies during their
such quality feedback, HRM creates possible gaps.
tenure, making them more employable
an infrastructure for equitable
by other companies and fulfilling an In some cases, supporting equal
compensation and career progression
obligation to them as stakeholders opportunity and nondiscrimination
opportunities.
in their company. This process may actually take the form of
also makes a significant societal Diversity, equal opportunity and encouraging the hiring of local
contribution, lessening the burden of health and safety aspects of employees to build local skills and
high unemployment costs. sustainable organizations help shape support the local economy. In 2011,
the way employers manage diversity for example, Samsung Engineering
Additionally, in a sustainable
on governing bodies, practice was honored for its approach to
organization, employees must be aware
nondiscrimination, and identify “Saudization” —a CSR initiative to
of and familiar with the principles and
specific health risks for employees recruit, educate and train Saudi
practices of sustainable business,
and address them. The creation engineers at the company’s new
so HRM must ensure that training
of such policies and approaches multimillion-riyal engineering center
and development programs include
falls to the HRM function, which called Samsung Naffora Techno
focused training on the application of
must also put monitoring systems Valley. By December 2011, Samsung
sustainability practices in the company
and on the way these affect different
internal roles and processes. At Starbucks, every new employee at every level goes through a three-
week immersion program when they join the company. A major part of this
In traditional HRM, performance
program includes the corporate responsibility practices of the company. 93
evaluation is driven by the need to
identify performance gaps and improve
performance to achieve business
Labor Practices Indicators—Diversity, Equal Opportunity
objectives. Often, performance is
tied to compensation and career LA13: Composition of governance bodies and breakdown of employees
opportunity. In a sustainable per employee category according to gender, age group, minority
organization, however, in addition group membership, and other indicators of diversity.
to these business imperatives,
LA14: Ratio of basic salary of men to women by employee category.
20
HRM’s Role in Corporate Social and Environmental Sustainability
The Dow Chemical Company Han’s F&B Pte Ltd (Han’s) operates a chain of bakeries, full-service
conducts pay equity studies restaurants and cafes in Singapore. In response to labor shortages and
to verify that pay for men and other operational challenges, Han’s started diversifying its workforce
women is fair and equitable. Dow in 2006 through facilitating work for mature workers and recruiting
reports two sets of figures: one employees from over 10 countries, people with disabilities, and ex-
based on salary levels adjusted offenders. The company reports that within a span of three years, the
for factors such as tenure and productivity of Han’s workers increased by 40 percent, and the net
performance ratings, and one earnings per wage dollar more than doubled. Additionally, an inclusive
set with unadjusted base salary workplace improved employee engagement—staff absenteeism is low, and
data for a selection of roles. staff turnover dropped fivefold between 2006 and 2009. 98
Unadjusted data shows that
men are paid slightly more in
all technical roles, while women in the UAE to employ not less than 15 point for HR managers is that the
are paid more on average in percent Emirate nationals. A local hotel concept of human rights extends
administrative roles. 94 and tourist resort company, Jumeirah throughout an organization’s value
Hotels, has pursued a program of chain, whereby organizations assume
“Emiratisation”—hiring, developing responsibility for contracting with
Recent research suggests of all and retaining UAE nationals who want goods and services suppliers in a
core labor performance standards to start a career in hospitality and way that encourages or requires
defined by GRI, the ratio of basic tourism. Jumeirah has a dedicated them to adhere to similar human
salary of men to women is the Emiratisation team and program in rights standards. Given that an
least reported. Only 50 percent place to attract more nationals to the organization’s operations may be
of the businesses listed on the Jumeirah business. The company outsourced or provided through
Forbes 250 that have adopted is also a part of the Department of third-party vendors with whom the
the GRI Initiatives claim they Tourism and Commerce Marketing HR function contracts, HR managers
report data about this indicator. 95 Taskforce for Emiratisation in the must ensure consistency between
Tourism and Hospitality Industry, which in-house organizational policies to
Furthermore, of those that do, runs industry-specific training and protect human rights and the policies
only a few organizations provide development programs in association observed by vendors providing
the salary data required by GRI. with the Emirates Academy of people-resources.
Instead, many claim, similar to the Hospitality Management, part of the
German chemical firm BASF, that This shared responsibility in the value
Jumeirah Group. 99
“we provide equal opportunities chain has been widely exposed for
for all employees and are many years through stories of human
committed to the equal treatment Human rights indicators rights abuses in apparel industry
of both men and women. We do Human rights indicators in the supply chains in the mid-1990s, and
not make any distinction between GRI Framework have largely been in more recent years in electronics
men and women when it comes bolstered by the work of UN Special industries (sweatshops). Practices
to setting salaries.” 96 Representative John Ruggie in 2007 that force unreasonably low pricing
through 2011 and the publication of in vendor organizations can lead
the Guiding Principles on Business to continued human rights abuses,
Engineering had increased its Saudi and Human Rights: Implementing and global organizations bear part
employees to 250. 97 the United Nations “Protect, Respect of the responsibility to address such
and Remedy” Framework, endorsed issues.101 Such practices include the
A similar approach exists in the United by the UN Human Rights Council in use of child labor, unpaid or excessive
Arab Emirates, where the growing June 2011.100 The GRI Human Rights overtime hours, a lack of reasonable
number of expatriates living in the UAE Indicators reinforce international hygiene facilities, and safety
is a matter of concern at close to 85 labor conventions relating to freedom measures or restriction of freedoms
percent of the population. In December of association, nondiscrimination, such as confiscating passports or
2010, the Ministry of Labor announced and elimination of child and forced preventing employee association
a new law requiring companies based labor. However, the interesting and collective bargaining. Additional
21
HRM’s Role in Corporate Social and Environmental Sustainability
abuses may also involve violence such throughout all company operations,
as beatings, rape or other forms of not just operations directly under the some employees will be dishonest,
physical abuse. organization’s control. HRM must create the conditions for
the company’s ethical health. The
Sustainable HRM should take a
implications for sustainable HRM
proactive role in ensuring that all Society indicators include providing formal training in all
employees involved in supply chain At its most basic level, HRM must lead a
aspects of corruption and measuring
dealings are aware of the implications culture of ethics and familiarization with
the numbers of employees trained and
for potentially explosive human rights the corporate position on anticorruption
hours spent in such training.
issues. In this way, HRM influence by all employees. Most often, the
extends to creating systems that company’s code of ethics and related In the U.K. in 2010, the Bribery Act
encompass organizational values practices will cover this position. While came into force as an attempt to clamp
based on respect for human rights systems may never be foolproof and down on corruption in business. The
22
HRM’s Role in Corporate Social and Environmental Sustainability
Employer Branding
Another area not covered by the GRI
Framework is the way sustainable
HRM supports corporate sustainability
communications through the
development of employer branding.
As an organization becomes more
sustainable, corporate communications
should speak with one voice, and HR
communications should be in alignment.
24
HRM’s Role in Corporate Social and Environmental Sustainability
• No direct benefit to • Limited ad-hoc benefit through • Reputational benefit for the • Reputational benefit for the •R
eputational and business
the employer other specific employee increase in business. business with likely—but benefit through contribution to
than indirect benefit motivation and loyalty to the limited—contribution to business results.
of employee capability employer. business results.
development through
volunteering activities.
• Organizational benefits • Limited organizational benefits • Strong organizational benefits • Significant organizational
through the goodwill from via positive effect on culture via positive effect on culture benefits via transformation of
employees who appreciate and communication. and communication. culture and communication.
the organization’s support for
colleagues and the community.
• Team-building benefits for • Team-building benefits for •S ignificant opportunity for
employees volunteering in employees volunteering in team-building benefits in both
teams. teams. organic and cross-functional
teams.
• Individual benefits for • Individual benefits for • Individual benefits for
employees through skill- employees through skill- employees through skill-building
building and personal building and personal and personal recognition.
recognition. recognition.
25
HRM’s Role in Corporate Social and Environmental Sustainability
data. Microsoft requires suppliers to meeting rooms, and reducing the aspects of the organization’s HR
produce sustainability reports. Very amount of printing are relatively simple infrastructure to support new
few organizations today can afford ways for employees to contribute. More ways of sustainable working. The
not to have an environmental engineer stretch goals may include reducing impact of the HRM role assumes
or other specialist on their team. This travel impacts by replacing meeting that the organization has in place
reality creates a highly competitive travel with virtual meetings. HRM can leadership that has defined the
recruitment landscape and a new war contribute by establishing platforms sustainability strategy and distilled
for green talent that HR managers for the development of green teams it into a sustainability action plan for
must navigate. and by defining processes, recognition the workplace. This plan becomes
systems and organizational flexibility for the framework in which sustainable
Organizationally, some of the
such activities. HRM in any given organization must
most significant ways employees
operate. With leadership, strategy
can contribute to environmentally
and corporate action planning in
sustainable business performance A Possible sustainability place, HRM will align its activities and
is to reduce energy and water Roadmap and Scorecard contribute optimally by following five
consumption, limit carbon emissions, The preceding sections discussed logical and process-oriented steps.
avoid waste, and increase recycling. the preconditions for establishing a
These aspects of environmental sustainability program and aspects of
stewardship may be defined in an HRM’s role in advancing sustainability Step 1: Identify and engage
organization’s environmental policy, through the prism of GRI Indicators. with stakeholders affected
but optimum results require a personal Bringing all this together requires a by HR policies, processes
commitment and engagement of each process, which is described in the and performance
employee. Reducing air-conditioning sustainable organization roadmap, Stakeholder engagement is at the
temperatures, shutting down computers introduced earlier. heart of any corporate responsibility
and unplugging electrical devices when initiative and assumes a process of
not in use, switching off lights in unused The process involves aligning all
Technology
Local
Experts
Communities
Consumers
The Vendors
General Public Municipalities Family and Friends
of Employees
Environmental
Activist Academia
Customers
Internal Departments Financiers
Employees
26
HRM’s Role in Corporate Social and Environmental Sustainability
exists, the CSO function tends to be In any given year, the HRM team will be Step 3: Review and revise
focused on strategy development, limited to advancing only two or three all HR policies in line with
technology, stakeholder interactions core change issues. Even with the most sustainability principles
and metrics, and HRM is rarely seen efficient HRM team, the capacity of In addition to addressing the most
as a viable partner and an equal player organizations to change is not infinite. vital issues, HR managers should
in achieving sustainable success. The Therefore, HRM will make choices in consider revising HRM policies to
CSO is seldom sourced from the HR developing an action plan. The key reflect sustainability principles, even if
function. In fact, of 29 CSOs in large items for action may be a mix of those immediate supporting processes are not
U.S. organizations, not one had prior HR identified on the matrix as most material in place. These policies should cover all
leadership experience—all came from or perhaps those expected to deliver aspects of HRM contribution and should
other functions, such as external affairs, maximum benefit in minimum time. be aligned with these new requirements.
environmental affairs, operations, and In parallel, the HR team may want to
marketing or other sustainability roles.114 achieve a minimum level of performance
in other areas. Either way, the Materiality Step 4: Develop an action
Other issues noted on the matrix plan, scorecard and metrics
Matrix of HRM issues provides a
are critical to both the business and No action plan should commence
comprehensive and balanced platform
different HRM stakeholders. The without a way to measure progress
for action planning.
prioritization of these issues now paves and outcomes of HRM’s contribution
the way for detailed action planning. to organizational sustainability. At this
28
HRM’s Role in Corporate Social and Environmental Sustainability
Provide
Develop Increase Gender
Work/Life Win the
Green Employee Equality
Balance Talent War
Teams Engagement Program
Programs
Improve
Internal Embed
Employee Human Reduce
Satisfaction Comms
Rights HR Costs
Survey Policy
stage, HR managers should think about n each of the action areas for which should identify a select number of
their performance scorecard (see Table clear metrics have been determined, such business value outcomes and
1). They need to consider how they there is also a resulting sustainable ensure processes are in place to
will measure success in terms of all business value. In almost all these establish meaningful measurement.
stakeholders and how these actions can areas, a quantifiable result can be The organization’s CFO should be
deliver tangible business benefits with, determined, which can be translated involved to verify business cost-saving
as far as possible, quantifiable results. into business advantage (such as elements to avoid any argument about
increased sales or cost savings). the basis for calculation.
I
The sustainable HR manager 29
HRM’s Role in Corporate Social and Environmental Sustainability
Compensation Compensation is driven by Ratio of base salary, men to Lower HR costs due to turnover,
equal opportunity for men women. improved motivation and trust.
and women.
Number of employees with Improved execution of
Compensation is linked to sustainability targets in sustainable business strategy.
sustainability performance. annual workplans.
Well-being Employees are fit to % of employees who engage Reduced business health costs,
contribute to their maximum in a corporate well-being lower absenteeism, improved
capability. program. productivity.
% improvements achieved in
employee well-being (health,
stress, diet etc.)
Development Diverse employees are given % of women in management Improved business results,
opportunities to advance. positions. innovation and customer
satisfaction.
% of minorities in
management positions.
This Sustainable HRM Scorecard is metrics or value propositions are, deliver the Sustainable HRM Scorecard
the most powerful tool in the HRM the key to success is performance. to the organization’s leadership on a
arsenal. It clearly defines the HR Having gone through the process so regular basis—quarterly or every six
contribution to sustainable business far, sustainable HRM needs to deliver months—as a continual measure of
and reinforces HRM legitimacy change. In doing so, HRM calls on actual performance and as a reminder
as a strong partner in sustainable its unique and process-oriented skill of the HRM contribution to sustainability
business, provided of course, that sets for leading organizational change objectives.
HRM performs in line with the plan— and driving positive culture. HRM is
see Step 5 below. typically strong in implementing change
programs, so given the resetting of the
HRM direction to one with sustainability
Step 5: Implement, measure at its heart, HRM is expected to fulfill
and report HR impacts a major role in achieving corporate
As with any plan, no matter how good sustainability. Additionally, HRM should
the strategy, framework, roadmap,
30
HRM’s Role in Corporate Social and Environmental Sustainability
31
Utilizing the HR skills in organizational process, change management and culture
stewardship, HRM can help create and implement sustainable business strategy
throughout the organization.
HRM’s Role in Corporate Social and Environmental Sustainability
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HRM’s Role in Corporate Social and Environmental Sustainability
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88. Roper, I., Parsa, S., & Muller-Camen,
paper, University of Leuven, 15). Clothing brands criticised
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Flanders, Belgium. over Bangladesh fire. Financial
audit of labour standards: What can
Times. Retrieved from http://
it tell us about employer motivation BASF. (2011). BASF report 2010.
96.
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to comply? Paper presented Ludwigshafen, Germany: BASF SE, 07d3-11e0-8138-00144feabdc0.
at the BJIR 50th Anniversary 85. html#ixzz1h9uKwZdP
Conference, Across Boundaries: An
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Global Challenges Facing Workers Saudization. (2011, December Corporate social responsibility
and Employment Research, London 14). Arab News. Retrieved from report 2010. Retrieved from http://
School of Economics. http://arabnews.com/economy/ reports.g4s.com/csr/securing-our-
corporatenews/article548246.ece people/securing-our-people.html
38
HRM’s Role in Corporate Social and Environmental Sustainability
39
Sustainable HRM does not represent a total transformation of the HR function but rather a
refocus in terms of direction and underlying mindset.
HRM’s Role in Corporate Social and Environmental Sustainability
SOURCES AND
SUGGESTED READINGS
41
HRM’s Role in Corporate Social and Environmental Sustainability
Ehnert, I., Wes, H., & Zink, K. implementation of environmental Visser, W. (2011). The age of
J. (Eds.) (2012). Handbook of initiatives. Finally, it outlines responsibility: CSR 2.0 and the
sustainability and human resource implications for HR and organization new DNA of business. Chicester,
management. Heidelberg, development (OD) professionals. UK: John Wiley.
Germany: Springer. Savitz, A. W. (with Weber, K.) In this landmark book, Wayne Visser
This edited volume summarizes the (2006). The triple bottom line. San shows how CSR is being replaced
current available research on sustainable Francisco: Jossey-Bass. by a second-generation movement,
HRM for an academic and practitioner which goes beyond CSR as
This early book on the intersection
audience. It contains articles on country- philanthropy or public relations (widely
between corporations and society
specific models of sustainable HRM criticized as “greenwashing”) to a
provides a broad description of
as well as HR practices addressed by more interactive, stakeholder-driven
the concept of triple bottom line in
sustainable HRM. model. The Age of Responsibility is
the form of a blueprint for change,
characterized by what the author calls
Erdogan, B., Bauer, T., & Taylor, guiding companies in finding
CSR 2.0, or Systemic CSR, based on
S. (forthcoming, 2012). Creating the “sweet spot” where business
a new set of principles and making
and maintaining environmentally interests and stakeholder interests
use of the new social media era as
overlap, resulting in new products
sustainable organizations: business begins to “redefine its role in
and services, markets, business
Recruitment and onboarding. In S. society.” This book is relevant for HR
models, and methods of management.
E. Jackson, D. S. Ones, S. Dilchert, managers who want to understand
Focusing squarely on the business
& K. Kraiger (Eds.) Managing how the changing business landscape
case as a driver for change, the book
human resources for environmental has the potential to affect HR
uses many case studies to illustrate
strategy.
sustainability. San Francisco: the benefits of the CSR triple bottom
Jossey-Bass. line, providing useful insights for HR Werther, W. B., Jr., & Chandler, D.
managers. (2011). Strategic corporate social
This chapter looks at recent research
on building an environmentally Society for Human Resource responsibility: Stakeholders in
sustainable company through HR Management. (2011). Advancing a global environment. Thousand
practices such as recruitment, sustainability: HR’s role: A Oaks, CA: Sage.
onboarding, training and performance research report by SHRM, BSR This is a comprehensive CSR
management. The authors provide
and Aurosoorya. Alexandria, VA: textbook that positions itself at
a series of recommendations
SHRM. the intersection of CSR, corporate
for practice in addition to two
strategy and public policy,
checklists of best practices for HRM The majority of organizations in the providing a thorough and balanced
practitioners. U.S. are engaged in some form of background for anyone interested in
sustainable work practices, and understanding the basic elements
Jackson, S. E., Ones, D. S.,
of those that have calculated the of CSR. It provides an overview of
Dilchert, S., & Kraiger, K. (Eds.) return of investment, almost half
(forthcoming, 2012). Managing the field, defining CSR and placing
have reported a positive return. it in the context of wider corporate
human resources for environmental This research is based on a 2010 strategy as well as exploring the
sustainability. San Francisco: survey of 728 HR professionals in stakeholder model and stakeholder
Jossey-Bass. the U.S. who are SHRM members. influences on business. The book
Another finding was that the three contains many currently topical and
This book provides a comprehensive
key drivers for these sustainability detailed case studies on a variety
overview of green HRM. It first reviews
activities were contribution to society, of well-known companies and will
the importance of environmental
competitive financial advantage support HR managers in considering
sustainability and then introduces
and environmental considerations. issues that may drive sustainable
research to help HRM practitioners
Moreover, one of the most important human resource policies and
guide environmental initiatives. The
positive outcomes from sustainability practices in organizations.
main part of the volume consists of
initiatives was improved employee
best practice examples about the
morale.
42
HRM’s Role in Corporate Social and Environmental Sustainability
ARTICLES motivate managers for ethical more in line with the principles of
leadership and measure their sustainability. According to Fry and
Aggerholm, H. K., Anderson, S. E., & social performance without losing Kriger, leadership should come from
Thomsen, C. (2011). Conceptualising the executives’ engagement to the whole person, not just from “doing
employer branding in sustainable sustainability. Reflecting on the something” or “having something,”
organizations. Corporate benefits, costs and risks of the as leadership development in the
Communication: An International different social performance Western culture advocates. A being-
Journal, 16(2), 105-123. measurement methods, cautiously centered leader demonstrates deep
designed reward systems are required self-awareness and altruistic trust
This paper attempts to integrate to avoid opportunism. Consistency in others and possesses intrinsic
the concepts of employer branding in strategy and in actions can also motivation for serving relevant
and sustainability. The authors solve this dilemma. An organization stakeholders and supporting
recommend corporations engage is consistent if it sets social goals, sustainability. Useful tools can be
in continuous dialogues with aligns them with the performance 360-degree feedbacks, coaching and
their employees and cocreate measurement and the reward system, mentoring or action learning.
organizational brands. The and discloses them to the wider
aforementioned process brings audience. Gond, J. P., Igalens, J., Swaen,
several advantages: It develops a V., & Akremi, A. E. (2011). The
long-lasting, employee-employer Booth, J. E., Park, K. W., & human resources contribution
relationship, creates a strong Glomb, T. M. (2009). Employee- to responsible leadership: An
employer brand, fosters sustainable supported volunteering benefits: exploration of the CSR-HR
organizational development and Gift exchange among employers, interface. Journal of Business
supports corporate branding for employees, and volunteer Ethics, 98(Supplement 2), 1-18.
external stakeholders.
organizations. Human Resource
HRM has a major role in supporting
Behrend, T. S., Baker, B., Management, 48(2), 227-249.
CSR. However, the analysis of the
& Thompson, L. F. (2009). This study examines performance HR-CSR interface in 22 French
Effects of pro-environmental benefits of employee volunteering. companies revealed that boundaries
recruiting messages: The role of Based on a representative sample of between HR and CSR are often
organizational reputation. Journal Canadian volunteers, it analyzes the blurred, which hinders ethical
of Business & Psychology, 24, link between employer support and leadership deployment. The article
341-350. extent of employees volunteering, claims that HRM’s contribution
the link between volunteering and must be acknowledged explicitly to
This study involving 183 university skill acquisition, and the recognition leverage this potential.
students in the U.S. examined the of volunteering by the employer. This
effects that applicants’ perceptions research can help organizations Harmon, J., Fairfield, K. D., &
of including environmental support develop a corporate volunteering Wirtenberg, J. (2010). Missing
messages on recruitment websites strategy and link this CSR tool to an opportunity: HR leadership in
had on applicants’ intentions. It found other HR functions such as training. sustainability. People and Strategy,
that independent of the participant’s 33, 1, 16-21.
individual stance, such messages Fry, L., & Kriger, M. (2009).
had a positive impact on applicants’ Towards a theory of being- Based on a 2009 survey of
intentions. centered leadership: Multiple levels 322 HR managers and non-HR
of being as context for effective respondents, this article examines
Berrone, P., & Gomez-Mejia, L. HR leaders’ roles in supporting
R. (2009). The pros and cons of leadership. Human Relations,
corporate sustainability strategy. The
rewarding social responsibility 62(11), 1667-1696.
study shows that similar to overall
at the top. Human Resource Embedded in the growing literature on business strategy, HR leaders are
Management, 4(6), 959-971. management, spirituality and religion, not fully involved in developing and
this paper develops ideas for the implementing sustainability strategy.
Berrone and Gomez-Mejia call However, some business leaders at
development of leadership theories
attention to a dilemma: how to least recognize that the HR function
43
HRM’s Role in Corporate Social and Environmental Sustainability
should be in charge of effectively for firms that otherwise would suffer Muller-Camen, M., Croucher,
executing sustainability strategy. In from their competitors’ noncomplying R., Flynn, M., & Schroder, H.
this regard the authors identified behavior, monitoring is very important. (2011). National institutions and
talent management as the lead As self-regulation differs between employers´ age management
leverage point for HR leaders. sectors, further steps are needed to practices in Britain and Germany:
fill these regulatory gaps.
Haugh, H. M. & Talwar, A. ‘Path dependence’ and option
(2010). How do corporations Jackson, S. E., Renwick, D. W. S., exploration, Human Relations,
embed sustainability across Jabbour, C. J. C., & Muller-Camen, 64(4), 507-530.
the organization? Academy M. (2011). State-of-the-art and The context of sustainable HRM
of Management Learning & future directions for green human differs between countries. Using
Education, 9(3), 384-396. resource management: Introduction the example of age management,
to the special issue. Zeitschrift für the research presented in this paper
The idea of sustainability must be
Personalforschung, 25, 99-116. compares and contrasts the relevant
integrated into the organizational
national institutional environments in
culture. The article gives several Over the last decade, there has
Germany and the U.K. It shows how
examples of successful change been a growing interest in the link
differences in corporate governance,
management processes. It between environmental management
pensions and industrial relations
argues that information should be and HRM. This article provides
systems influence the HR strategies
disseminated organization-wide, not an overview of research on green
organizations in both countries
restricted to a group of employees. HRM. It shows how different HRM
develop to deal with an aging
Sustainability affects every function functions can contribute toward
workforce.
and division, thus collaboration across greater environmental sustainability
the business units is necessary. It of corporations and examines Orlitzky, M., Schmidt, F. L., &
claims that organizational change links between strategic HRM and Rynes, S. L. (2003). Corporate
should be incorporated into employee environmental management. social and financial performance:
training and development strategy.
Kolk, A., & Van Tulder, R. (2004). A meta analysis. Organization
Personal practical experiences
Ethics in international business: Studies, 24(3), 403-441.
with sustainability like volunteering
increase employee openness. Multinational approaches to child Corporate social responsibility and
Gaining executive support is crucial labor. Journal of World Business, financial performance are linked. The
for securing the necessary time and 39, 49-60. first rigorous research that proved
resources for the change process. this link is this meta-analysis of 52
Multinational organizations sensitive
studies. It finds that corporate social
Hassel, A. (2008). The evolution of to ethical responsibility face several
responsibility, and to a lesser extent,
a global labor governance regime. challenges. Taking the example of
environmental responsibility, pays off.
Governance: An International child labor, this study examines what
Journal of Policy, Administration trade-offs managers need to consider Pfeffer, J. (2010). Building
and Institutions, 21(2), 231-251. when they decide if they will follow sustainable organizations: The
home- or host-country policies. As human factor. Academy of
Organizations should comply with production is internationalized, a Management Perspectives, 24(1),
global labor standards. However, code of conduct is necessary for the
34-45.
as this article argues, firms have coordination of the various ethical
the chance to shape them. Some conflicts. The authors advocate Environmental sustainability is often
multinational corporations (MNCs) that organizations should aim for emphasized over social sustainability.
form voluntary alliances with NGOs congruency: the content of these Pfeffer’s article calls attention to
and trade unions to influence documents, internal organizational this neglected aspect of sustainable
standards. According to Hassel, processes and external market HRM and argues that job design,
the core labor standards of the ILO behavior should be aligned with each working hours, layoff policies and
and the UN Global Compact lead other based on the same ethical health insurance coverage all affect
to a shared understanding of labor principle. employee well-being.
standards. Nevertheless, particularly
44
HRM’s Role in Corporate Social and Environmental Sustainability
Pless, N., Maak, T., & Stahl, Wu, C., Lawler, J. J., & Yi, X.
G. (2011). Developing globally (2008). Overt employment
responsible leaders through discrimination in MNC affiliates:
international service learning Home-country cultural and
programs: The Ulysses experience. institutional effects. Journal of
Academy of Management Learning International Business Studies, 39,
and Education, 10(2), 237-260. 772-794.
Ethical leadership development is Sustainable HRM should foster
not as straightforward as it seems at workforce diversity and help
first sight. The authors interviewed eliminate discriminating practices.
70 managers sent in teams to work in This study, which analyzed job
developing countries for two months announcements of MNC subsidiaries
and found that international service- in Taiwan and Thailand, found that
learning programs foster reflection MNCs from countries with effective
on global responsibility and promote antidiscrimination laws are less likely
active citizenship. to engage in employment-related
discrimination in their host countries.
Preuss, L., Haunschild, A., & It suggests that in countries where
Matten, D. (2009). The rise of antidiscrimination legislation is
CSR: implications for HRM absent, MNCs act as a model for
and employee representation. host-countries and have a strong
International Journal of Human influence on reducing discrimination.
Resource Management, 20(4), Thus, MNCs can support the
953-973. welfare of their stakeholders in their
subsidiaries.
Based on three case studies of
European MNCs, this study analyzes
how the HR function and employee
representatives can be involved in
CSR activities and thus support a
sustainability strategy. The examples
show that HR can not only participate
but initiate and even lead CSR
projects. Leading CSR projects is
advantageous for the HR department,
for it allows HR to shape corporate
strategy and represent employee
needs via CSR initiatives.
45
World Federation of People Management Associations
The World Federation of People Management Associations (WFPMA) is a global network
of professionals in people management. It was founded in 1976 to aid the development and
improve the effectiveness of professional people management. Its members are predominantly
the continental federations which are made up of more than 70 national human resource
associations representing over 450,000 people management professionals around the
world. The WFPMA Board meets twice-yearly, commissions research projects, publishes
an electronic newsletter, WorldLink, and runs an international congress every two years.
More details are available at www.wfpma.org or contact the WFPMA Secretariat at
WFPMA.Secretariat@shrm.org.