csr & hr presentation nicholas andreou
TRANSCRIPT
Human Resource Management and Corporate Social Responsibility: A
future of promise
Aditya Jain & Nicholas Andreou
CSR: what it was?
• The Social Responsibility of Business is to Increase its Profits • “A concept whereby
companies integrate social and environmental concerns in their business operaHons and their interacHons with their stakeholders on a voluntary basis” -‐ European Commission
• Corporate philanthropy -‐ donaHons
CSR: what it was?
TradiHonal business funcHons: risk management, accounHng, HRM, operaHons management etc.
Corporate Social Responsibility
“the prevailing approaches to CSR are so disconnected from business as to obscure many of the greatest opportuniHes for
companies to benefit” – Michael Porter
Global Financial Crisis
CSR: what it is now?
• Business can no longer operate as if in a vacuum – have to act more responsibly
• CSR no longer seen as an opHonal choice: – “the responsibility of enterprises for their impacts on society” – European Commission
• No longer seen as philanthropy • Strategic CSR: “a company must integrate a social perspecHve into the core frameworks it already uses to understand compeHHon and guide its business strategy” – Michael Porter
Human Resource Management
$450-‐550 billion
Global financial crisis was HRM
problem?
Human Resource Management Stakeholders perceive downsizing differently, corporate representaHves see the financial implicaHons whereas employees focus on the social implicaHons
Social impact of all this?
Challenges facing HRM?
• Fundamental percepHon: – Human ‘resource’ management – people are seen a means to an end
– HRM ‘obsessed’ with processes not outcome (e.g. creaHvity/well-‐being)
How can CSR help? • CSR highlights
the social responsibility of the business
• CSR offers an opportunity to be strategic – how can being responsible to employees deliver value to the firm
CSR and HRM – the specifics • Analysed key CSR instruments including: – FTSE 4 Good Index – DJSI – World Business Council for Sustainable Development – Measuring Impact Framework
– OECD Guidelines for MulHnaHonal CorporaHons – ILO Guidelines for MNEs – ISO 26000 – UN Global Compact – Global ReporHng ImitaHve – SA 8000
HRM and CSR – the details • Six key areas emerged: – employment condiHons;
• PromoHon of new and stable employment – organisaHonal development and culture;
• Support for professional development – industrial relaHons;
• Support for collecHve bargaining in the absence of legal requirements
– occupaHonal health and safety system; • Systems to prevent ill health among workers
– diversity and non-‐discriminaHon; • Monitoring to establish areas of discriminaHon
– human rights. • ProhibiHon of child and forced labour
Healthy Workplaces Framework
The HWP and the six themes
HRM and CSR: employment condiHons Em
ploy
men
t Con
ditio
ns Terms of contracting and
Work schedules Legal recognition of work and transparency of employees’ working conditions Promotion of new and stable employment Work schedules, breaks and workload
Actions of company in relation to rotation, dismissals, and retirements
Impact and consequences of worker rotation Company’s actions in relation to dismissals Support to retiring employees
Labour market entrance Initiatives to support entry to organisations Non-discrimination in early career/initial employment Transition/advancement from initial employment
Wages and benefits Wage management policies Salary guarantees Acceptable company salaries Going above and beyond compliance with minimum wage legislation Worker benefits Social security Work-life balance orientated benefits
HRM and CSR : organisaHonal development and culture
Org
anis
atio
nal
Dev
elop
men
t an
d C
ulture
Training and development
Nature of training Professional development and long-term careers Support to continue and finish studies Local cooperation in training and development
Performance Management
Job performance reviews Individual and corporate performance-based variable compensation Internal promotion, recognition and retention of trained employees
Organisational Climate and Internal Communication
Workers’ job satisfaction and work climate Workers’ wellbeing Ethics training Communication systems Grievance system
HRM and CSR: industrial relaHons In
dust
rial
rel
atio
ns Employee
representation and collective bargaining
Workers’ representation system Actions when no existence of trade unions in the area or company Negotiation, and adherence to collective bargaining agreements Collaboration with and support to workers’ representatives and trade union activities Level of conflicts within the company and conciliation machinery
Dialogue with workers and stakeholders during corporate restructuring
Policies enacted during changes in operations Dialogue and negotiation with trade unions and stakeholders prior to organizational changes Mitigation of adverse effects of corporate restructuring
HRM and CSR : OHS system O
ccupa
tion
al H
ealth a
nd
Saf
ety
(OH
S)
Sys
tem
Workers’ involvement in Occupational Health and Safety system and culture
Involvement of workers on Health and Safety and in Health and Safety Committees Dissemination of OHS information to employees Inclusion of OHS in collective agreements and strategic plans
Management of absenteeism, work fatalities and occupational diseases
Recording and Incidence of work-related injuries/accidents and absenteeism Perceived safety OHS compliance
OHS Training Employees’ access to OHS training and instructions Awareness raising and educational campaigns in OHS
OHS Prevention Safe facilities and processes Prevention and assistance against serious work-related diseases, psychosocial hazards, and community health problems OHS prevention for vulnerable groups OHS management system
OHS Protection Safety protective equipment and machinery Actions when incidents occur Voluntary medical examinations for workers
Violence, bullying and harassment at work
Policies prohibiting, and establishing preventative cultures regarding, violence, bullying and harassment Prevalence and impact of violence, bullying and harassment Protection mechanisms to investigate and respond after accusations of violence bullying and harassment Not toleration of corporal punishment or verbal, mental or physical coercion among disciplinary procedures –including security forces-
HRM and CSR: diversity and non-‐discriminaHon
Div
ersi
ty a
nd
non-d
iscr
imin
atio
n Equal Opportunities (EO) Equality and diversity monitoring
Impact of discrimination No tolerance policy regarding discrimination Prevention: Specific strategies to prevent discrimination in Human Resource policies and guidance and recommendations from institutions Affirmative policies to achieve greater equality or remediate past discrimination Protection: Mechanisms to deal with potential cases of discrimination Respect and awareness-raising about vulnerable groups Establishing supportive mechanisms for minority groups within the community
Gender equality Includes all EO themes specifically relating to differing salaries between genders for the same work and provision of support to women’s’ work
Equal opportunities and support for disabled people
Includes all EO themes specifically relating to the provision of accessible workplaces for those with disabilities and the creation of jobs tailored to those with disabilities
Equal opportunities and support for ethnic, racial or religious minorities
Includes all EO themes specifically relating to ethnic/racial or religious minorities and the creation of a culturally sensitive environment for these groups
Non-discrimination by age
Includes all EO themes specifically relating to age
Non-discrimination to other vulnerable groups
Includes all EO themes specifically relating to individuals with HIV-AIDS Includes all EO themes specifically relating to relating sexual orientation Includes all EO themes specifically relating to any other vulnerable groups
Relation with agency workers
Assessment of legal status and adherence to laws, Human Rights, ILO Conventions and CSR systems of contractors, subcontractors and intermediaries Monitoring and ensuring fair working conditions for employees of contractors, subcontractors and intermediaries Non-discrimination to agency/outsourced/home workers comparing to company’s employees
Labour insertion for economically disadvantaged people
Diversity: Presence of people from disadvantaged backgrounds on staff Avoidance of discrimination and exploitation, and support to poor groups Promotion of social inclusion
HRM and CSR: human rights H
um
an R
ights
Incorporation of human rights in risk and investment analysis
Strategic risk management evaluation of operations and investment decisions to prevent violations of human rights Evaluation of human rights when considering financial partners or the provision of capital
Human rights compliance of suppliers
Human rights selection criteria for suppliers and affirmative discrimination to most responsible allies Transparency about production processes and location of suppliers Monitoring mechanisms and assurance of human rights by suppliers Policies and procedures throughout supply chain to ensure the maintenance and improvement of human rights and CSR issues, and to avoid collaboration with entities carrying out HR abuses
Training in Human Rights
Quantity and type of training carried out and detailed in policies Level of knowledge of employees and managers regarding awareness, information, international standards, and CSR management
Respect for workers’ human rights
Policies, procedures and guarantees to ensure human rights are maintained throughout the company, especially in high risk sectors, products or countries Human Rights auditing and verification of internal compliance Consultation from local stakeholders and external organizations regarding human rights Non-discrimination at work from a human rights perspective
Freedom of workers’ organisation and collective bargaining
Respect and non-discrimination of employees’ rights of freedom of organization
Guarantees in countries which restrict workers’ organization to avoid such restrictions
Rejection of child labour
No support to child labour and no exploitative employment Prevention of child labour in the supply chain Decent work conditions for workers between 15 and 18 Remediation policies when child workers found Awareness raising against child labour and commitment to children’s future
Rejection of forced labour
Avoidance of forced labour Fair and transparent conditions regarding termination of employment and leaving work Prevention of indirect forced labour within the company
How close we are to achieving this vision: company performance
• Compared company CSR reports to this framework – represent thinking by key policy makers in CSR/HRM
• Sample taken from the FT 500 • Considered 100 CSR reports maintaining a distribuHon across sector (NACE framework) and region (WHO regions: AFRO, AMRO, EMRO, EURO, SEARO, WPRO)
Findings: Company reporHng theme level -‐ WHO region
0%
20%
40%
60%
80%
100% Employment CondiHons
OrganisaHonal Development and Culture
Industrial relaHons system
OccupaHonal Health and Safety (OHS) System
Diversity and DiscriminaHon
Human Rights System AFRO (6)
AMRO (26)
EMRO (6)
EURO (26)
SEARO (13)
WPRO (23)
Industrial RelaHons System
Findings
• EURO – Most comprehensive and based on best pracHce – High level of naHonal awareness and iniHaHves regarding CSR and OHS – many stakeholders involved
Findings: Company reporHng subtheme level -‐ total
0
20
40
60
80
100 1
2 3
4
5
6
7
8
9
10
11
12
13 14
15 16
17 18
19
20
21
22
23
24
25
26
27
28 29
30
Total Sample