Responsible human resource management: what, why and how?

1. Responsible human resource management: what, why and how? Anna-Maija Lämsä Professor, Vice Dean University of Jyväskylä, Finland School of Business and Economics OrganisationalEthics, Leadership and HRM ETHOS Research Group WeAll consortium

2. Story from Finland:Strong emphasis on economic goal results in a disaster Newspaper titles 2019: Valviraorders shutdown of a nursing home in Kristiinankaupunki Police investigating 30 allegations of elder care neglect across Finland Elderly care supervision has been under-resourced for a long time, says officer at Valvira Credit: Heikki Saukkomaa – Lehtikuva

3. What does the history of human resource management (HRM) tell to us? Industrial welfare:earlyindustrialization, welfareofficers, labour welfare. Hard HRM model:taylorism, scientific management, from the late 19thcentury: employeesonlymeans to productivity/profitability Soft HRM model: human relations from the 1930-1950s: psychological and social viewpoint of significance Legge, 2005

4. The paradox of HRM: economic vs. social aim

5. What is responsible HRM? • Responsible HRM has the intention and ability to advance social good, beyond the immediate interests of the organization and that which is required by law. Involves not only understanding that employees are instrumental in an organization’s success but also aiming to fulfil employees’ personal and social expectations and needs. • Capacity to understand that the HRM social aim and economic aim can reinforce one another, such that long-term success depends on at­tending to both. Jamali, El Dirani & Harwood, 2015; Nie, Lämsä & Pucetaite, 2018

6. Links between responsibility indicators and HRMAdopted Jamali, El Dirani & Harwood, 2015, p. 132

7. Whyresponsible HRM?E.g. Suchman 1995; Crane & Matten 2010; Greenwood & Freeman 2011; Aguinis & Glavas 2012; Nie, Lämsä & Pucetaite 2018; Riivari & Lämsä 2019 ) Business case Responsible HRM actionsarebeneficial to employee and organizationaloutcomes: commitment, extra-rolebehaviour, innovativeness Legitimacy To beconsideredgoodworkplace the organization’s HRM needs to follow the values, norms and beliefs of its social environment: reputation, image, licence to operate Ethics It is important to act responsibly in HRM becauseit is a rightthing to do; organization treats its employees as an end in their own right

8. Stakeholder management: Definingkeystakeholders, goalsand means of cooperation, implementation and evaluationFreeman, 1984; Fassin, 2012 How: the house of responsible HRM ResponsibilitystrategyEthicalorganizational culture IntegratedActions in practice to the organization’sstrategyEthicalorganizationalvirtuesFreeman, 2010Matten & Moon, 2008, Kaptein, 2008 Learning, development ResponsibilityprocessesEthicalleadership Reporting, standards, audits, Leadershipbehaviour: organizing, training, fairness, openness, risk management, trustworthiness, instructionsempowerment, caringCrane& Matten, 2010Ciulla, 2005 Basis: purpose, valuesand organizationalstrategy Hillman & Keim, 2001; Freeman, Velamuri & Moriarty, 2006

9. Finalremarks Not just following and adopting to circumstancesbutrenewing, innovating and creating sustainableresponsibilityinitiatives Paradoxicalbynature Wordsand deedshand-in-hand

10. Thanks for yourinterest