Corporate social responsibility a critical HRM goal

IN an age of intense media scrutiny on companies and their practises, human resource management (HRM) professionals require the correct tools to create positive public images for their workplaces.

Recent shocking findings of the Royal Commission into the banking and finance industry, along with media reports of a convenience store chain underpaying their workers, have highlighted significant shortcomings in the corporate social responsibility of some of Australia’s major companies.

Corporate social responsibility is a company’s public position in supporting the financial, social and environmental impacts on the communities where they have a presence. These public statements often play a crucial part in the construction of the company’s public image and are a vehicle in the development of relationships between the company and the community.

A major challenge for HRM professionals is when companies do not follow through on the commitments outlined in their corporate social responsibility statements. Additionally, various company actions demonstrate a “talking the talk” approach instead of “walking the talk”.

A study in the Harvard Business Review confirms that companies must embed their corporate social responsibility priorities into the strategic fabric of the organisation to have the potential to achieve a competitive advantage and serve society. The flip side is when there is a disconnect between strategy and corporate social responsibility, when decisions and practices can often contradict corporate social responsibility priorities.

This disconnect can often lead to negative publicity as society is continually critical of companies that are too heavily focused on self-interest.

So how can corporate social responsibility turn from a foe into a strength for HRM professionals?

Research confirms that HRM professionals are the best positioned in companies to maximise the benefits of corporate social responsibility. The first step in unlocking these benefits is for company leaders to empower their HRM professionals to lead change.

The second step is for HRM professionals to work with their leaders to embed the desired CRS goals into the strategic and operational objectives of the company. This will ensure that decisions continually take these goals into account.

Once this has been achieved, step three is to connect the embedded corporate social responsibility to the company’s culture, values and core competency set to create a success profile. HRM professionals can build their recruitment, wellbeing, media and other functions around this success profile as a method to embedding the organisation’s goals even further.

With its corporate social responsibility goals at its core, an organisation can benefit from a reputation of serving the community.