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TODAY – Session V

TODAY – Session V. Presentation CSR & Human Resource Management – Embedding CSR in the Organisational DNA 2. Break 3. Siemens Presentations. Session V CSR & Human Resource Management Embedding CSR in the Organisational DNA. CONTENTS. Introduction

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TODAY – Session V

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  1. TODAY – Session V Presentation CSR & Human Resource Management – Embedding CSR in the Organisational DNA 2. Break 3. Siemens Presentations

  2. Session VCSR & Human Resource ManagementEmbedding CSR in the Organisational DNA

  3. CONTENTS Introduction The Role of human resource management (HRM) in sustainability. A Model of Sustainable HRM built on three Pillars of Sustainability. Theories related to Sustainable HRM Instruments of Sustainable HRM Sustainable HR Advantage - Case Studies

  4. Introduction • The Definition of Sustainable HRM • Sustainable HRM is defined as “those long-term oriented conceptual approaches and activities aimed at a socially responsible and economically appropriate recruitment and selection, development, deployment, and release of employees” (Thom and Zuagg, 2004: 217).

  5. Introduction • “HR must ensure that a sustainable approach to managing its employees is part of the business strategy. […] A truly sustainable business is created when all employees are aware of how their roles contribute to the sustainability agenda. […] In this way HR transforms the business impacts ON employees into the sustainable impacts OF employees.” • Elaine Cohen, Corporate Sustainability Expert

  6. The Social Responsibility of Business is based on three Dimensions •  Internal Social Dimension • Social / Societal Dimension • Environmental Dimension

  7. The Internal Social Dimension • Sustainable HRM falls under the internal social dimension which includes: • Working conditions - hygiene, health, security, ergonomics … • Compensation policy - agreements between unions and management for fair salaries for employees … • Social dialogue in companies - annual interviews, consultation with internal stakeholders … • Social climate in companies - less strikes, less absenteeism, loyalty to company projects etc.

  8. II. The Role of HR in Sustainability HR has a two-fold role in terms of sustainability: It must ensure that a sustainable approach to managing employees is part of business strategy; and Employee well-being, health and safety, work-life balance, diversity and inclusion, gender equality, hiring and firing practices, fair rewards, a living wage, employee learning and growth, positive internal communications, open dialogue and employee involvement in the community are all important aspects to pay attention to in terms of managing employees in a sustainable way.

  9. Culture  Attitudes Values Companies Employability Individual Responsibility Individual Work-Life-Balance Strategies  Objectives Instruments  Methods  Processes  Structures III. Model of Sustainable HRM built of three Pillars of Sustainability Zaugg/Blum/Thom 2001.)

  10. The three Pillars Sustainable HRM • Work-Life-Balance • Growing importance of professional career • Growing importance of private and family life • Individual Responsibility • Increased autonomy and self-determination in questions of professional development • Employability • Focus on continuous development and professional agility rather than specific activity

  11. The three Pillars in practice in Europe • A Survey* of 1016 European companies was conducted by Zaugg, Blum and Thom (2001). • The Aims of the study were to establish: • An overview of state of the art of HRM in Europe; • The conception and stage of implementation of sustainable HRM in European companies; and • Cross-country comparison. *The project was supported by the Swiss Federal Office of Personnel and the European Association of Personnel Management (EAPM).

  12. The three Pillars in practice in Europe • Sectors:industry, service providers, trade, transport, public sector, IT, healtchcare, banking, construction, insurance • Company size: 40% >500 empl; 47% 50-500 empl; 13% <50 empl

  13. Objectives of HRM in European Companies Source: Zaugg/Blum/Thom 2001.)

  14. Central Objectives of HRM in European Countries • Contributing to achievement of economic objectives • Promoting individual responsibility (90% of questioned companies) • Ensuring adequate pay and promoting employee health • Enhancing employability (strong dispersion: 68% of Dutch vs. 22% of French companies)

  15. Conception of Socially ResponsibleEuropean Companies • Keywordsassociatedwith HRM andsustainability : • HR development: training, continuouseducation, careerplanning … • Employeecharacteristics: motivation, flexibility, responsibility … • Leadership: consistency, socialskills… • Staffretention, incentives …

  16. Theories Related to Sustainable HRM • The first systematic, theoretically and empirically substantiated concept for a ‘Sustainable Human Resource Management’ was coined by representatives of the University of Bern who conducted a study of Swiss companies (Ehnert, 2006). • Current publications on this stream of research include Thom (2002); Thom and Schüpbach-Brönnimann (2003); Thom and Zaugg (2002; 2004); Zuagg (2002); Zuagg, Blum and Thom (2001). • Another stream is the ‘sustainable management of human resources’ investigated by Remer (1993); Müller-Christ and Remer (1999) and Müller-Christ (2001). • They do not remind actors of their responsibilities or moral obligations for employees or society, but underline the central assumption that it is economically rational to act in a sustainable way if resources are scarce.

  17. Theories Related to Sustainable HRM • Other authors say that in a truly sustainable business employees are aware of how their roles contribute to the sustainability agenda (Bansal, 2005). • Other specific issues are health (Antonovsky, 1987); training (Aragon-Sanchez, Barba-Aragon and Sanz-Valle, 2003; Bandura, 2005); competitive advantage (Barney, 1991; 2002; Grant, 1991; Oliver, 1997); innovation (Evans and Doz, 1998) and retrenchment (Mariappanadar, 2003) • Theoretical approaches important and related to sustainable HRM include sustainable work systems (Kira, 2002); Human Investment Philosophy (Miles and Snow, 1995); People-Centred Management (Pfeffer, 1998); entrepreneurial HRM (Wunderer and Dick, 2000); stakeholder theory (Freeman, 1999) and self-organization theory (Göbel, 1998; Probst, 1987).

  18. Instruments of Sustainable HRM • Recruitment: requirement & job profiles; HR marketing; labour market research • Deployment: health management; staff composition (older employees!); advanced working-time management • Development: encouraging continuous education; career planning; promoting individual responsibility & participation • HR marketing; image analysis & improvement • Retention: sophisticated incentive systems • Disemployment: exit interviews; outplacement • Management & Leadership: participative management styles; assessment of superiors

  19. Recruitment Source: WBCD, 2011

  20. Incentives Source: WBCD, 2011

  21. Competency Development Source: WBCD, 2011

  22. Sustainable HR Advantage • In adopting a sustainable strategy, businesses contribute not only to the sustainability of the planet, but also, to their own sustainability as businesses. • The key partnership role of HR in this context is embedding a culture of sustainability because, ultimately, the business performance is only as good as the decisions its people make.

  23. Sustainable HR Advantage • Companies can employ strategies to create better business through advancing • advancing diversity, • going green, • paying attention to employee well-being and • human rights issues, • educating employees about company sustainability commitments and • encouraging employees to work in partnership with NGOs and local communities .

  24. Advancing Diversity • All HR processes can be leveraged to create an inclusive culture where the entire workforce can contribute to greater innovation, improved customer relationships, reduced workplace conflict and enjoy higher motivation, productivity and workplace loyalty.  • This means designing HR processes which actively seek out candidates from diverse backgrounds, proactively training managers to hire with an inclusive mindset, purposefully creating a workplace which respects the needs of different employees, especially minority groups, and sensitively promoting diversity in internal communications.

  25. Advancing DiversityCase Study - Intel • As a company focused on innovation, Intel is committed to investing in their employees. • The unique skills, experiences, and backgrounds of employees allow them to contribute valuable new ideas and perspectives to the company’s everyday operations. • According to Intel, they create an inclusive environment where every employee feels valued. • For example, Intel works closely with their Black, Hispanic, and Women's Leadership Councils to facilitate employee engagement, development, and retention at the senior levels.

  26. Going Green • Reducing environmental impacts is one of the most serious business challenges today and business can gain advantage only when the entire workforce is engaged. • HR support for the employee-driven Green Teams to enhance employee practices related to electricity usage, use of paper for printing, recycling, waste reduction and more delivers benefits of reduced operating costs, improved environmental protection, and employees who derive satisfaction from becoming ambassadors for a more sustainable planet. 

  27. Going GreenCase Study – US Postal Services • The US Postal Service says its “Lean Green Teams” reduced energy, water, solid waste to landfills and petroleum fuel use last year, saving the agency more than $5 million in 2010 alone. • These teams also helped recycle more than 222,000 tons of material — an increase of nearly 8,000 tons over the prior year — which generated $13 million in revenue, and saved an additional $9.1 million in landfill fees. • According to the Postal Service, these employee green teams are helping mesh low-cost and no-cost sustainable practices with performance management systems to help the agency meet its specific sustainability goals.

  28. Employee Well-Being • HR policies which help employees to manage their own well-being deliver an ROI in reduced absenteeism, reduced health care costs, higher productivity and longer job tenure. • However, corporate health and wellbeing programs are often seen as warm and fuzzy HR initiatives, with no hard and fast business benefits. • While the outcomes of such programs are often positive anecdotally, examples of their financial worth do exist.

  29. Employee Well-BeingCase Study – Unilever • Unilever developed a global health and wellbeing program that is hardwired into business outcomes. • The program, called Lamplighter, was initially created in 2001 following a request from senior company leaders to help them improve and manage their energy levels, to allow them to get the most out of their personal time and find ways to better manage their heavy workloads, according to Dean Patterson, global health and productivity manager for Unilever. • It proved such a success that Lamplighter went global in 2009 and is currently being implemented in 30 Unilever countries reaching 35,000 employees.

  30. Human Rights • There are over 200 million children illegally employed in businesses around the world, over 12 million people in forced labour and millions of employees who do not enjoy the basic right to freedom of association. • This would not happen if the HR voice was stronger - HR managers need to help identify the human rights risks in their supply chains and ensure robust HR policies to uphold human rights. • Creating a culture in which these issues can be openly addressed requires a new skill on the part of HR Managers. • Doing it well protects and advances the business, employees, and communities.

  31. Human RightsCase Study – Toshiba • The Toshiba Group provides education on human rights to all employees. • The “Toshiba Group Standards of Conduct” stipulates adherence to all relevant laws and regulations, respect for fundamental human rights, and prohibition of discriminatory treatment, child labour and forced labour. • It requires that respect be accorded to diverse values, individuality, and privacy of individuals, prohibits discriminatory behaviour based on race, religion, gender, nationality, physical disability, age, or sexual orientation, and prohibits physical abuse, sexual harassment, abuse of power, and any other actions that disregard the dignity and individuality of others.

  32. Educating Employees about Company Sustainability Commitments • It is important that companies inform and educate their employees about their sustainability commitments and goals. • Building awareness of the company’s sustainable development commitments and performance helps to keep employees committed to the company and its goals. • It may therefore assist in reducing high turnover and improving productivity.

  33. Educating Employees about Company Sustainability CommitmentsCase Study: Novo Nordisk’s TakeAction! Programme • The programme aims to integrate and embed a sustainable development mindsetand culture in the organization. • It informs, supports and inspires employees to engage in voluntary work within Novo Nordisk’s therapy areas. • To many Novo Nordisk employees, this approach to sustainable development enhances their job satisfaction and supports their decision to remain with the company. • In the company’s annual survey, eVoice, employees are asked whether environmental and social issues are important for the future of the company - In 2004, the average response was 4.2 on a scale from 1-5, with 5 being the highest score.

  34. Encouraging employees to work in Partnership with NGOs and Local Communities • Companies can create trust amongst community members and customers by allowing and encouraging their employees to become involved in social projects spearheaded by NGOs and local communities. • Many employees appreciate being given the opportunity to be involved in such projects and company loyalty may be influenced – this in turn may cut costs on high turn-over and may increase productivity.

  35. Encouraging employees to work in partnership with NGOs and local communities CASE STUDY: Severn Trent • Severn Trent is a provider of water, waste management and utility services which became involved with the Cromford Venture Centre in the UK in 1995. • The Centre was founded upon the belief that young people respond positively to opportunities for self-development if they are offered in surroundings that provide a stimulus for new experiences and activities. • Severn Trent saw that the Centre would be he ideal catalyst to help disadvantaged young people to improve their prospects. • The company decided to build strong leadership at the Centre, making an effort to understand its objectives and needs, and to involve Severn Trent employees as fully as possible at every opportunity.

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