SHRM-CP Functional Area 13: Corporate Social Responsibility

What is SHRM’s BASK definition of Corporate Social Responsibility?

• “Corporate Social Responsibility (CSR) represents the organization’s commitment to operate ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local and global community.”

What is the triple bottom line?

• Focuses on the “Three Ps” → positive results for:

  • People

  • Planet

  • Profit

Where is HR involved when it comes to the implementation of CSR programs?

• Time

• Labor

• Finances

What does Corporate Social Responsibility involve?

• Keeping a watchful eye within the organization’s communities, including local, national, and even international

What are some of the external forces that typically drive goals and objectives in CSR?

• Rights of Workers

• Corporate Governance

• Philanthropy

• Employee Relations

• Community Relations and Involvement

• Organization’s Culture

• Organization’s Values and Ethics

• Outsourcing and Offshoring

• Data Security

• Code of Conduct in the Community

• Stakeholder Relations

• Social Responsibility

• Diversity

When identifying the goals and objectives for CSR, what is ideal?

• To use the same analysis tools as used with strategic planning to identify the long-term investment and involvement for the organization

What does CSR need to be aligned to?

• The organization’s business goals and strategies

What is the best starting point for developing a CSR strategy?

• Gaining a clear perspective of the work

What are the OECD’s Guidelines for Multinational Enterprises?

• Transparency governance and disclosure

• Environment

• Consumer interests

• Workforce relations

• Bribery

• Science and technology application and access

What are the United Nations Global Compact’s Ten Principles?

Human Rights

1. Businesses should support and respect the protection of internationally proclaimed human rights

2. Make sure they are not complicit in human rights abuses

Labor

3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

4. Eliminate all forms of forced and compulsory labor

5. Abolish child labor

6. Eliminate discrimination in respect to employment and occupation

Environment

7. Businesses are asked to support a precautionary approach to environmental challenges

8. Undertake initiatives or promote greater environmental responsibility

9. Encourage the development and diffusion of evnrionmentally friendly technologies

Anti-Corruption

10. Businesses should work against corruption in all its forms, including extortion and bribery

What are the Caux Round Table (CRT) principles based upon?

• Belief that the world business community should play an important role in improving economic and social conditions

What are the Caux Round Table (CRT) principles?

1. Respect stakeholders beyond shareholders

2. Contribute to economic, social, and environmental development

3. Build trust by going beyond the letter of the law

4. Respect rules and conventions

5. Support responsible globalization

6. Respect the environment

7. Avoid illicit activities

What is ISO 26000?

• The international standard developed to help organizations effectively assess and address those social responsibilities that are relevant and significant to their mission and vission; operations and processes; customers, employees, communities, and other stakeholders; and the environment

• Provides guidance on key themes of social responsibility across a wide spectrum of topics

• Addresses seven core subjects of social responsibility:

  • Organizational Governance

  • Human Rights

  • Labor Practices

  • Environment

  • Fair Operating Practices

  • Consumer Issues

  • Community Involvement and Development

What is SA8000?

• An auditable certification standard that encourages organizations to develop, maintain, and apply socially acceptable practices in the workplace

• Focuses on human rights and labor relationship

• Frequently used as a tool for ensuring human rights in extended supply chains

• Includes nine elements:

  • Child labor

  • Forced or compulsory labor

  • Health and safety

  • Freedom of association and right to collective bargaining

  • Discrimination

  • Disciplinary practices

  • Working hours

  • Remuneration

  • Management systems

What is GRI G4 Sustainability Guidelines?

• The universally accepted standard for global reporting on a company’s sustainability effort and progress

• Main goal is for organizations to identify and report on a business’s economic, environmental, and social impacts that influence the decisions of its stakeholders

• Two Parts:

  • Reporting Principles and Standard Disclosures

  • Implementation Manual

• Supplementary Guideliens include:

  • Assistance with G4 efforts

  • Guidelines for specific business sectors

  • Interactive guides for assisting with specific concerns and issues

  • A sustainability disclosure database

What are the G4 Sustainability Reporting Guidelines categories?

• Two Categories:

  • Economic → market presence, anticorruption, economic performance, etc.

  • Environmental → materials, energy, water, biodiversity, emissions, etc.

• Four Subcategories:

  • Human Rights → child labor, forced labor, human rights, security, etc.

  • Labor Practices and Decent Work → diversity, labor/management relations, health and safety, etc.

  • Product Responsibility → compliance, health and safety, marketing, etc.

  • Society → anticompetitive behavior, compliance, public policy, etc.

What does KPMG do?

• Tracks trends in corporate responsibility reporting and provides detailed examinations of what is being reporting and the quality of reporting

What is KPMG’s reporting helpful with?

• Identifying areas that organizations need to address and how to report on and measure the results and outcomes

• Providing support in making the business case for sustainbility strategy for an organization

What does corporate philanthropy typically involve?

• Monetary donations

• Percentage of sale

• Cooperative programs

• Strategic donations

Why is employee volunteerism growing in popularity?

• Positvely impacts employee engagement → employees feel a stronger connection and sense of belonging at work, which is good for engagement and retention

What does HR need to be careful of when it comes to employee volunteerism?

• Be clear and communicate ahead of time if volunteer time is paid or not

• Ensure the activities are truly voluntary → companies cannot force employees to “volunteer”

  • If you pay your employees for their service time, you solve an FLSA compliance issue of pushing them and requiring them to “volunteer” without getting paid

• THere is no such thing as “volunteering” for a for-profit company → the employee has to be paid at least minimum wage under FLSA if the company “suffers or permits” an employee to work

• You need a program and policy around volunteerism so employees and management tow the FLSA line and understand what can and should not be expected of the workforce