effective alignment of HRM and CSR can result in sustainable outcome values and benefits for the organization and that it is the internal aspects/dynamics of this integration that seem most important. By way of an example, the CSR actions and culture of change as translated by HRM strengthen the bond between employees and their organizations, especially on the normative and affective levels. Commitment to the organization and to a common social identity that we argue HRM can potentially champion and foster can certainly be amplified through an internally institutionalized CSR agenda. In their study, Aguilera et al. (2007) demonstrate how the social responsibility actions that organizations enact affect employees’ perception about the justice and fairness of the organization. In return, this can impact employees’ attitudes, behaviors, satisfaction and productivity. We argue here that HRM’s role in CSR could potentially be of high significance on the individual-level of CSR as explained by Aguilera et al. (2007). Socially responsible HRM practices and the integration of CSR principles with HRM practices and systems (as explained earlier) respond to employees’ CSR expectations and could thus potentially contribute to building positive employee behaviors and attitude. As a result, this might affect organizationally relevant outcomes such as employee commitment, job performance and citizenship behavior. HRM promotes and communicates CSR actions and principles with employees so to increase their CSR awareness and engagement and thus their perceptions about how their organization is being socially responsible both internally and externally. Similarly, Brammer et al. (2007) and Glavas & Piderit (2009) report that employees are more engaged and committed and develop higher quality relationships and are more creatively involved when they perceive their company to be socially responsible. Rego et al. (2010) also found that employees’ perceptions in relation to the CSR orientations of their organizations predict their affective commitment. We argue that there is an important role for HRM in CSR and employee commitment to the organization and that both HRM and CSR converge around these common goals and outcomes within a co-creation framework. We further argue that it is precisely through these dynamics that CSR evolves into a fully-fledged and differentiated capability and sustainable competitive resource for the organization.
Role Deliverable / Outcome Metaphor role Activity Management of Strategic Human Resources Executing strategy Strategic Partner Aligning HRM and business strategy: ‘organizational diagnosis’ Management of Firm Infrastructure Building an efficient infrastructure Administrative Expert Reengineering organization functions: ‘shared services’ Management of Employee Contribution Increasing employee commitment and capability Employee Champion Listening and responding to employees: ‘providing resources to employees’ Management of Transformation and Change Creating a renewed organization Change Agent Managing transformation and change: ‘ensuring capacity for change’
Table 4: CSR Embedded in HRM Practices HRM practices Recruitment and Selection Performance Appraisal Reward and Compensation Training and Development CSR Embedded in HRM Practices Hiring new recruits capable of contributing to CSR Screening new recruits with knowledge and awareness and appreciation for CSR Hiring new recruits capable of contributing to CSR and, for example, with previous experience in volunteering activities Include questions and case studies about CSR within the interview stages with candidates Include sections on CSR activities in employee handbook and orientation programs Defining performance based not only on outcomes and results but also on social objectives Include service to community and participation and involvement and contribution to social initiatives as part of the performance appraisal and link it to rewards such as bonuses Follow up with employees on CSR and include CSR action plans and motivate employees to engage more in CSR during regular performance evaluation meetings Allow employees to contribute to formulating CSR performance indicators and involve them in CSR projects Rewarding employees for behaviors consistent with CSR values to motivate them and emphasize the importance of CSR to the organization Preparing tangible and intangible rewards for employees’ participation in CSR Preparing incentives that promote social goals Communicating such schemes with external stakeholders to enhance the company’s reputation and market attractiveness Training and raising employees’ awareness to CSR / example: sustainability practices such as green practices and recycling inside as well outside the organization Holding regular seminars and workshops on CSR and linking some incentives and rewards to employees’ participation in them Training programs and skills development be for both lower and higher employee levels Invite NGO representatives to share experience with employees in relation to common CSR projects