The document discusses the business case for HR to embrace corporate social responsibility (CSR). It provides examples of how HR can take a CSR mindset in key areas like recruitment, employee wellness, and environmental sustainability. Adopting CSR brings strategic benefits like reduced costs, engaged employees, improved innovation and business results. For HR to fully partner with CSR and realize these benefits, it needs to apply CSR principles to its objectives, metrics, and role as a strategic business partner.
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CSR for HR - why partnership is necessary
1. Thank you!
12th September 2011, Bucharest
Thank you!
2. CSR for HR ranks number 8 in
the Top 40 Sustainability
Books of 2010
A wake-up call for HR
Management.
Fills a major gap in the practical
knowledge that HR Managers
need to effectively partner
sustainability strategy.
Helps CSR practitioners
understand and demand a value-
adding contribution from the HR
function.
3. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 1
“According to Ernst & Young’s second annual
global survey of cleantech adoption, three-
quarters of large international corporates
plan to increase or significantly increase
The cleantech budgets between 2012 and 2014.
The survey questioned 300 corporations
across all sectors with revenues of US$1bn
unstoppable or more.
rise of
This year 44% of survey respondents
anticipate their organizations will spend
over US$50 million on cleantech while
cleantech 12% expect their spend to exceed
US$250 million.”
http://greeneconomypost.com/cleantech-investment-coporations-15817.htm
4. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 2
The profit $27 million
potential of savings
going green
http://www.usps.com/communications/newsroom/2011/pr11_008.htm
5. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 3
Employees
want
meaning as
much as
money 96%
of students agree CSR is important in their
choice of employer
http://www.employerbrandingtoday.com/blog/2011/04/21/french-affection-for-csr-employers/
6. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 4
Shareholders
want positive “Half way through its $300 million,
company-wide sustainability plan, Plan A,
ROI British retailer, Marks and Spencer reports
the initiative has already become a cost
positive venture resulting from savings
made on climate change and waste
initiatives.”
http://www.sustainablelifemedia.com/content/story/brands/m_and_s_say_its_eco_plan_is_cost_positive
7. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 5
“We have come to recognize
that best-run businesses do not
The New simply embrace a sustainability
strategy.
Business
Instead, they make their
Strategy corporate strategy sustainable.”
http://www.sapsustainabilityreport.com/co-ceo-letter
8. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 6
Successful delivery of
If HR does sustainability strategy requires
processes for embedding CSR
not do it, culture and engaging employees.
no-one will Embedding processes is the
primary skill and contribution of
the HR function.
9. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 7
CSR provides immense
opportunities for HR to improve
If HR does its strategic business
contribution, leverage and
not do it, influence.
HR will HR needs CSR to maintain
credibility as a legitimate long-
not thrive term value-adding business
partner.
10. HR meets CSR: why CSR needs HR and why HR needs CSR : the business case 8
Optimal delivery of CSR
objectives requires an aligned
organization and an engaged
If CSR does workforce made up of the right
people.
not partner Typically, CSR Managers are not
with HR, skilled in process or embedding
culture, nor in recruiting people.
CSR will FAIL CSR needs HR to ensure a CSR
tools and process which enable
CSR to succeed.
11. What happens now
HR influence in CSR
strategy development:
6%
HR influence in CSR
strategy implementation:
25%
Source: SHRM, “Advancing Sustainability: HR’s Role” 2011
12. The CSR-HR opportunity
Business
Partners
(CSR)
(CSR) Social
Ethics Marketing
Culture and
Recruitment
communications
Traditional
HR
(CSR) functions
Community (CSR)
involvement Environment
(CSR)
Human rights,
diversity,
health and Employee
Remuneration safety Training and
and benefits Development
13. HR with a CSR mindset: green employees
EXAMPLE CSR
Strategic • Emissions measurement and reporting
business • Impact assessment
• Green technologies / renewables
priority • Workplace energy consumption
• Business travel reduction
Reduce carbon
footprint to meet • Environmental targets for Managers
new • Recruitment of greenies
environmental • Employee education on environment
regulations, • Green Team structure and process
reduce costs and • Employee energy savings suggestions
• New travel policy
attract investors
HR
14. HR with a CSR mindset: green employees
Green
Teams save
money and
engage
employees
!
15. HR with a CSR mindset: employee wellness
EXAMPLE CSR
Strategic • Workplace health risk assessment
business • Identify benchmarks and targets
• Report improved employee health
priority outcomes
• Ensure strategic alignment
Advance
organizational • Formulate corporate policies with
sustainability by regard to employee health
proactively • Develop a health support program
accepting shared • Provide employee health education
responsibility for • Incentivize employees to engage
employee health
HR
16. HR with a CSR mindset: employee wellness
Benefits
Obesity -8% (2,800 px)
Hypertenstion -16% (5,600 px)
Cholesterol -12% (4,200 px)
Smoking -3% (1,050 px)
Physical activity +5% (1,750 px)
Nutrition +17% (5,950px)
ROI GBP 3.73
for every
GBP 1
invested
http://www.unilever.com/sustainability/employees/well-being/health/
17. HR with a CSR mindset: recruitment
What’s
wrong with
this picture
?
18. HR with a CSR mindset: recruitment
EXAMPLE CSR
Strategic
business • New green technology recruitment
• Employees engaged in sustainability
priority • Employer Brand alignment with
Ensure right people, sustainability communications
right skills, right jobs
to meet new • New recruitment channels
cleantech challenges • Diverse candidate pipeline
and advance • Training of internal recruiters in
corporate diversity principles
sustainability with a • Partnerships to help accessibility to
minority groups
diverse workforce
HR
19. HR with a CSR mindset: recruitment
• Recruit the right talent :
A sustainable explore all channels for a diverse
workplace workforce
needs
• Recruit in the right way :
sustainable
equitable recruitment processes
recruitment
practices • Recruit cost-effectively:
reduce recruitment costs
20. HR with a CSR mindset: recruitment
76%
Companies with a Han’s Company of candidates
higher proportion (Singapore) consider reputation
of women in top reports increase in and image before
management productivity after joining a company.
perform better three years of 40%
+10%
diversity practices of reputation comes
by from factors related
+40%
ROE versus to citizenship,
governance and
industry average workplace
McKinsey, 2007 MOM, Singapore,2010
CSHR blog,2011
21. HR with a CSR mindset: recruitment
Government
collaboration Minority
groups
Teva Pharmaceuticals 405
exploits employees recruited Special needs
all possible via “alternative “
recruitment channels
to source external channels in 2009
candidates to meet
Returning
needs at lower cost Recently scientists
laid-off
workers
22. HR with a CSR mindset: recruitment
Pepsico: ‘Profit with
Purpose’ is the single
biggest recruiting tool that
Ensure your we have in Pepsico today
employer
brand
reflects
your CSR
approach
http://www.pepsico.com/Purpose/Performance-with- Purpose.html
23. HR with a CSR mindset: ROI
HRM role HRM objective HRM metric Business value
% of employees trained in values and
ethics. Mitigation of risk due to unethical
Values and Employees understand and behave
% of employee responses in survey behaviour by employees. Improved
Ethics in line with corporate values.
showing employee support company corporate reputation and trust.
values.
Recruitment Recruitment is based on diversity % of employees recruited by gender and by Improved business results, innovation
principles. minority groups. and customer satisfaction.
Compensation is driven by equal Ratio of base salary men to women. Lower HR costs due to turnover,
opportunity for men and women. improved motivation and trust.
Compensation
Compensation is linked to Number of employees with sustainability Improved execution of sustainable
sustainability performance. targets in annual work-plans. business strategy.
% of employees who engage in a corporate
Employees are fit to contribute to wellbeing program. Reduced business health costs, lower
Well-being % improvements achieved in employee
their maximum capability. absenteeism, improved productivity.
wellbeing (health, stress, diet etc.)
Diverse employees are given % of women in management positions. Improved business results, innovation
Development
opportunities to advance. % of minorities in management positions. and customer satisfaction.
Employees understand and act in % of employees trained in sustainability. Improved execution of sustainable
line with sustainability strategy and business strategy.
principles.
Employees enhance corporate % of employee volunteers. Employee engagement, reputation
Engagement community relations. benefits, enhanced community
relationships.
Employees contribute to improving % of employees participating in "green" Energy and materials costs
environmental impacts. activities. reductions.
24. HR with a CSR mindset: ROI
HRM role HRM objective HRM metric Business value
Recruitment is % of employees Improved business
based on recruited by gender results, innovation
Recruitment diversity and by minority and customer
principles. groups. satisfaction.
% of employees who Reduced business
Employees are engage in a corporate healthcare costs,
wellbeing program. reduced health
fit to contribute
insurance costs, lower
Well-being to their
% improvements turnover and
maximum
achieved in employee absenteeism,
capability.
wellbeing (health, improved
stress, diet etc.) productivity.
26. Thank you for listening!
Good Luck in all you
do!
Be in touch if I can
assist you in any way!
www.csrforhr.com
Elaine Cohen
elainec@b-yond.biz
Cell: +972-523-495-688
www.b-yond.biz/en