What Matters for Achieving the Corporate Social Responsibility Goals - Research Paper Example

Financial Forecasting Introduction Human resource management has been the buzzword in business world since the time it changed its meaning and scope from operational to strategic component. Companies now regard human resources as one of the tools to achieve competitive edge and sustainable development. The roadmap charted out and the strategies carved for innovation, differentiation and cost advantage- all emerge from the single function of human resources (Alan 1998). One element which has broadened the scope of human resources dimensions in business is the amalgamation of corporate social responsibility of businesses towards community, stakeholders, environment, economy and both the internal and external surroundings. Keeping the ethical stance of businesses in mind, human resources now assume greater responsibilities as to foster an environment of trust, ethics, beliefs, norms and values which encourage employees and people involved to go for business practices which are favorable towards the conservation of environment and communities of practice (Jerry 1997). Topic area In achieving the corporate social responsibility objectives, major thrust is placed upon the talent, skills, competencies and abilities of human resources. This is because CSR is a triple bottom line (Economic, social and environmental) and exercising control over CSR initiatives need cooperation, employee involvement, professionalism and alignment between the values of organization and employees (Preuss, Haunschild & Matten 2009). Organizational growth has been long associated with corporate culture and a value system of an organization whereby aspirations and commitments of employees are integrated and attached with that of organization’s sustainability and environmental obligations, both local and global (Chung et al. 2008). Functions of human resources management like recruitment, training and development (Campbell 1990), compensation, employee engagement, retention, promotion, appraisal and others define the way and roadmap of how an organization intends to comply with its CSR initiatives. The nexus of CSR and HRM dimensions has gained immense popularity and strategic attention in business world because HRM is considered to be the driving force behind proper CSR initiatives planning and implementation (Inyang, Awa & Enuoh 2011). This forms the basis of this research whereby connections and linkages between CSR and HRM will be studied in detail and insights developed as to how HRM could serve as the framework for applying CSR principles in an organization (Melynyte & Ruzevicius 2008) (Figure 1 below). Figure 1 Research question The research in particular attempts to identify the role of HRM dimensions in CSR initiatives of an organization. Organizations are generally associated with perpetual existence. However, this research will specifically try to analyze the bonding between CSR, sustainability and HRM dimensions in case of major sports and cultural events like Commonwealth Games and Olympics. This is chosen because in the case of organizations, long term planning is involved and concerns and CSR issues can be taken care of appropriately. However, in the planning and delivery of such colossal events, temporary completion and success often leads to ignorance of CSR objectives and management authorities generally deviate from their ethical stance and become the target of much criticism (Jackson and Selivler 1990). As such, the research seeks to address the following questions: 1. What HRM practices are generally adopted while planning from events such as Olympics, World Cups and Commonwealth games? 2. How the element of sustainability is incorporated and implemented in planning and delivering such events? 3. What is the role of human resource dimensions in exercising full control over the CSR initiatives of management authorities of these events? 4. How improvements or alterations in human resource dimensions can better the proposition of these global events and bridge the gap between expected and actual perceptions of environment conservation and management? Significance to knowledge The research proves useful for scholars, managers, government and all those who are involved in the operations and delivery of these staged events. For scholars, the research will provide valuable insights into the arrangements and conductance of events and how HRM relates to CSR in short term planning and implementation. For government bodies, they have to approve of many projects, construction sites and activities which involve public money and an understanding of practices deployed by managing authorities can help government to assess the social and financial viability of those projects. Managers specially tend to gain through this piece of research as they are the policy makers, decision takers and organizers of the entire event. With the observations and findings of this research, they can incorporate best practices into their day-to-day operations and eliminate the shortcomings which they might have been facing in this respect. Overall, this research will open up doors for future development of concepts and thoughts into the planning, decision making, delivery and organizing mega events. Later on, apart from HRM, other managing domains and functions like information systems, marketing, supply chain and so on can be linked with that of CSR and their impact be analyzed. Literature review Human resource management is the function of an organization which aims at developing the talent of the people working in the organization and aligning the goals and objectives of people with that of organizational goals and objectives. As opposed to personnel management which emphasized on hard issues of documentation, contract binding, industrial relations, compensation and labor standards (Audry 1989), human resource focuses on soft issues of development, knowledge transfer and sharing, employee involvement, learning, safety, benefits, and other modes (Idalberto 1999). Sustainable human resources came into being when the scope of HR dimensions was extended to benefit the economy as a whole and prove fruitful to the posterity in terms of conserving the social, human, natural and environmental resources. In the words of United Nations World Commission on Environment and development, “sustainable development is one that meets the needs of the present without compromising the abilities of future generations to meet their own needs.” Human resource management thus seeks to devise policies, plans and procedures which help employees mold their behavior and working patterns in a way that complies and adheres to the laid rules, societal norms and compete in a way which is symbiotic for both the organization and the society (Lynda 1999). Since human resource deals with the psyche, behavior and belief set of people, it is one of the most complex functions to handle because of the inherent unpredictability and uncertainty in human actions. As such, it cannot be said whether a person will comply with a particular rule or regulation, to which extent and in what conditions. This makes human resource management a strategic function because of its relevance and alignment with other objectives (Larry 1990). After the industrial revolution, machines became the talk of the town but recent shift from machinery and equipments to ‘knowledge’ of workers has made this function critical in realizing the sustainability and growth objectives of the company, specially in relation to social responsibilities of business. Even in services context also, human resources management assume great significance because there, quality and service attributes are directly correlated to the intangible aspects of human behavior, care giving, empathy, responsiveness, assurance and attention paid to customer details. Veres et al. (2000) opines that human resource is actually a decision making process where the managers and policy makers are confronted with a lot of choices regarding policy and strategy alternatives, but the marvel is in choosing the best alternative which is beneficial in terms of both cost effectiveness and distinctive advantage. Corporate social responsibility on the other hand is the obligation of a business to prosper but not at the cost of its posterity. Businesses might undertake steps which streamline their supply chain, get involved in huge manufacturing and production, use marketing gimmicks but the triple bottom line of CSR (Economic, social and environmental) should be adhered to whereby the surroundings of business should also either develop or sustain amidst the operations of the business (Strandberg 2009). In order that this symbiotic relation between business and environment remains, organizations have to recruit such people who think on the same lines and adopt work practices which do not defy the principles of CSR. With the advent of globalization, cross-border activities and other modes of global operations like outsourcing; the importance of CSR has grown manifold because then the duties of business towards environment are not restricted only to domestic or local but also global environment (Sharma, Sharma & Devi 2009). Locally a business might be practicing CSR policies but its service provider or outsourcee might be depleting the resources. In such a case, the onus of CSR inflicts upon the organization because the service provider is actually his employee in a way. When organization growth is measured, it is not in terms of profit or revenues alone nowadays. Rather it is measured in terms of good done to the surroundings, community, stakeholders and environment in totality. Taking the examples of events like Olympics, Commonwealth games and other sports, the use and significance of strategic human resources cannot be denied because this alone is the function which determines the feasibility and relevance of alternatives in the planning and delivery of these events. As for instance, London Olympics 2012 intends to make a legacy of the work done and achievements made during the course of events. This will be done by revamping existing sites in UK, giving due attention to waste reduction, global warming, water management and other conservation practices, making performance evaluation at Olympics a criteria for appraisal and promotion of managers in their long term career planning and organizing the entire human resource function around ‘diversity and inclusion’ strategy. Similarly, with Commonwealth Games 2010, much uproar is there in Indian economy about illegal use and contracting of resources. This clearly signifies loopholes in the overall planning of the events and malfunctioning of strategic human resource department whereby people and authorities concerned acted selfishly and forgot the economic aspect of CSR. The construction of Wembley Stadium was also associated with much of headlines and media reporting owing to its delays and much of public money wasted. Such instances highlight the value of human resource function in carrying out these events because everything depends upon what type of people are recruited, what goals and objectives they are acquainted with, how they are trained and what aspirations they carry on with themselves while preparing for staging these events. Methodology The research being intended to discover the importance and use of strategic human resources in the planning and delivery of major sports and cultural events, the use of case study analysis technique is proposed. Events such as Commonwealth Games 2010 and London Olympics are ones which are most talked about and remain headlines much before they are started and even after their closing ceremonies. Such mega events have always been associated with hype and hoopla about their optimum use of resources, attention towards environmental sustenance and practices which do minimum harm to the surroundings. Construction of gigantic venues, revamping of entire landscape and other sites involve huge investment which raises the brows of environmentalists and critics about how the managing authorities are aligning their business decision making with that of environmental management (Lesn 1999). In this regard, human resources play a very important role as the onus of taking rational decisions and selecting the best course of action amongst available alternatives rest on employees, managers, volunteers and people. Thus, such events provide an opportunity to explore connections between human resources management dimensions and environmental management practices. As such, use of case study technique (Baxter, Hughes and Tight 2001) will help analyze in detail how managers plan to go ahead with their events delivery and arrangements, keeping in mind the conservation of environment and surroundings and how human resources management dimensions contribute to this feat. In the case study analysis technique, major emphasis will be placed on construction giants developed in the course of delivery of such events, for example, Wembley Stadium, Olympic Park for London Olympics 2012, Jawaharlal Nehru Stadium for Commonwealth Games 2010 and like. Domains such as information systems, procurement and others will also be probed in to get a 360 degree view of entire planning and arrangements. Analyzing these would involve human resources dimensions such as recruitment, compensation, training and development, relationship with suppliers and contractors and other aspects of human resources management. Out of the three case studies selected, namely Wembley Stadium, Olympic Park for London Olympics 2012 and Jawaharlal Nehru Stadium for Commonwealth Games 2010, Wembley Stadium and Jawaharlal Nehru Stadium for Commonwealth Games 2010 have already been completed and used. These case studies will help determine how plans, practices and implementations went off with these constructions. Attempt will also be made to determine what is happening to these sites after the events delivery is over- this will throw light as to whether money invested on such sites is still proving useful for the public or it was temporarily built. In case of temporary construction, it could present serious concerns for environmental management practices adopted by the management authority. The Olympic Park for London Olympics 2012 will assist knowing about current human resources and environmental management practices employed and it will facilitate a very good comparison between completed and current events. It can also reveal the gaps in managing human resources and their strategic use as competitive tools for sustainable development. Based on findings of Wembley Stadium and Jawaharlal Nehru Stadium for Commonwealth Games 2010, recommendations and improved practices can be suggested to London Olympics managing authority (ODA) for sustained development and delivery of events. Results Case studies serve as a valuable tool in judging the routes taken and their success or failure instances in the context of special business and management conditions (Bell 1999). Likewise, this research also seeks to develop better insights into how sports and cultural events management poses or not poses a threat to environment and more importantly, whether the authorities concerned adopt practices which align their corporate social responsibility with their human resources management actions. From recruitment to relationship building with third parties and external stakeholders, significance of strategic human resources in gaining sustainable development cannot be undermined. This gets all the more complex and essential when we talk of such large scale and extravagant events. Thus, this research is expected to deliver insights into human resources dimensions such as recruitment and selection, appraisal, training and development, compensation, industrial relations and confidentiality constraints within an organizational perspective and their specific application in the context of major sports events to link these to environment handling and corporate social responsibility initiatives undertaken by events management authorities. The observations and findings will serve as guidelines for future events organized on such mammoth scales and what shortcomings could hamper the sustainable development philosophy of these events. Overall, the triple bottom line of CSR (economic, social and environmental) will be judged and commented upon by the occurrence of such mega events. Conclusion With more and more sports and events ceremonies taking place year after year, the debate on strategic use of resources, especially human resources in achieving CSR objectives will gain more attention and significance. In this regard, this research proves to be a preliminary step in addressing the if’s and buts’ of how the overall decision making is to be carried on. Further, use of strategic human resources presents more feasible alternatives which have more cost and time benefits as contrasted to those which are available with general personnel management. Thus, the nexus of CSR with HRM dimensions prove to be a crucial link in attaining the image of clean, green, lean and mean sports and cultural events across the globe. References Alan, B. C (1998). Managing Human Resource Exercise. London: Macmillan Press LTD. Audry, M. (1989). A principle of human management in public personnel management. New Haven: Yale University press. Baxter, L, Hughes, C. and Tight, M. (2001). How to Research, Open University Press: Milton Keynes. Bell, J. (1999). Doing Your Research Project: A Guide for First-time Researchers in Education & Social Science, Oxford: Oxford University Press. Campbell, C. (1990). Staffing recruitment and selection. London: Mantice hall Inc. Chung, D.S, Jung, H.W, Baek, S.J & Lee, H.O. (2008). The impacts of strategic orientation and HRM systems on firm performance. International Journal of Business Strategy, 8(2). Idalberto, C. (1999), Advance and challenges in Human resource management in the new millennium in public personnel management. Chicago: Mabus Publishing. Inyang, B.J, Awa, H.O & Enuoh, R.O. (2011). CSR-HRM Nexus: Defining the role engagement of the human resources professionals. International Journal of Business and Social Science, 2(5), Special Issue. Jackson, M. and Selivler, H. (1990), Human Resource Planning. Englewood: cliff.Mentice_hall Inc. Jerry, W.G. (1997). Principle of human Resource Development. New York: Holt Rinehart and winstonInc. Larry, M.L. (1990), Rebuilding the capacity of govern. Britain: Macmillan Hampshire. Lesn, C.M. (1999), Personal and Behavioral Approach to Administration. New York: Wiley. Lynda, C.W. (1999). Human Resource in changing society balancing compliance and development. Zaria Nigeria: Sherecf salam press. Melynyte, O & Ruzevicius, J. (2008). Frameworks of links between corporate social responsibility and human resource management. Forum Ware International. Preuss, L, Haunschild, A & Matten, D. (2009). The rise of CSR: implications for HRM and employee representation. The International Journal of Human Resource Management, 20(4), 953-973. Sharma, S, Sharma, J & Devi, A. (2009). Corporate Social Responsibility: the key role of human resource management. Business Intelligence Journal, 2(1). Strandberg, C. (2009). The role of human resource management in corporate social responsibility. Retrieved 3 March, 2011 from http://www.corostrandberg.com Read More