The role of HR in a Corporate Social Responsible Strategy

Horizon 2020: Europe has made it clear. We need “smart, sustainable and inclusive growth and jobs” in the future of our organizations. How can companies from the profit sector tackle this challenge and ace it on the path toward sustainability? Maybe the answer already lies inside them.

The profit sector needs quick and pragmatic answers to adapt its policies to the challenges of the upcoming years, especially with regard to efficient strategies to ensure a profitable and sustainable growth. Yet a concrete corporate social responsibility strategy struggles to find its place in the agendas. Even though almost the majority of people now admit that we need to engage in promoting initiatives for the environment, less is done in the daily initiatives undertaken by firms. They need to adapt quickly, because of the progressive incertitude of the economy – but sometimes they simply do not know where to start. The management may be a bit old fashioned and not really prepared to face the challenge. Or it is often the case that ‘sustainability’ is meant as an ideal and abused word.

One of the biggest misunderstanding is that corporate social responsibility is an employer-branding topic, so something that is to be communicated. Following this, CSR turns into a promotion of the company, and it becomes more a matter of marketing rather than a regular practice. The focus is then shifted from the commitment to the praise of the commitment. Of course it is important to communicate the good initiatives that the company is undergoing, but the core should always remain the sustainable charge. Only from a honest and reliable content a good communication campaign can follow. And that is where the HR play their game.

Why HR? If we consider the sustainability issue, we can easily see that it can be meant either as a challenge for the environment and the people. Thus these two balances regard what happens outside the business and inside the company. A responsible attitude toward the environment involves the transformation of the external processes, ie the supply chain, the raw materials’ choice, the CO2 emissions. This is, of course, an essential effort in the commitment for sustainability. However, the other side of the medal is often under or misrepresented, and it touches the people. The engagement for sustainability inevitably deals with people and how the company treats them. Do the company respect the local communities where it operates? Do the company invests in the training of its employees? Which are the shared values spread inside and outside of the company? Here it comes the relevant role of the HR. 

How so? First, the HR are the jealous stronghold where information can be found. The fundamentals of corporate responsibility are, among the others, the gender pay gap, the minimum wage, absenteeism, maternity leave, diversity and inclusion. In other words, salary, attendance, ethnicity and disability data – all sensitive records that are the daily bread in the HR administration. The official reporting inevitably is treated in the most confidential way and comes from the HR, whose role is often misconceived. 

The HR are intended as the recipients of any complaint against a coworker, or those to blame for a wrong payslip, or even worse those who oblige you to attend safety and training courses. Even at top management levels, the HR are not considered to be product-related costs – that means, they do not bring direct income for the company, but they are a side necessity to manage the business. This means less budget, slower careers, and fewer possibilities. But here is the deal: companies often fail in capturing the great chance they already have inside their organization. 

How can the HR lead the transformation toward sustainability? The answer is astonishingly easy: because they know the main issues and problems of the company. After all, they know every person working in the firm, as well as the challenges that each of them faces. They know the people who produce value, and they foresee how they could grow their potential. That is, for example, the mission of the talent and training team. They are the first point of contact with external candidates who will get their first impression of the company. They drive the resolution of conflicts. They are those to get sure you receive your pay at the end of the month. They are the recipient of trust – and trust is the basis of a corporate social responsible growth.

Here it comes a redefinition of sustainability that touches social aspects. The social responsibility should be directed, in first instance, towards the people who work for the company. They all deserve fair treatment, and access to the resources. Diversity and inclusion are the last but not least focus of attention, and they much relate to creativity. The HR recruiting has a pivotal role in ideally choosing the best people on the job market to put them into the right place for the business. If the company welcomes people from diverse background (ethnicity, religion, nation, language), chances are they are engaging different skills that can eventually make the difference. If the firm can rely on diverse and creative solutions, it has more chances to face the unpredictable direction of the economy. This is a very practical aspect whose potential is often underestimated. Let’s make an example. Having people that speak many languages and know different cultures can be a great impact if the company decides to dedicate to new markets. People could job-rotate and dedicate to new projects – not getting bored and maybe ensuring continuity of employment, instead of looking outside for a new job because they feel stuck or not appreciated.

The list of initiatives is long but one more deserves attention. It has to deal with the so-called millennials’ entry into the job market. Millennials are very well aware of what companies do and they are very attentive to their reputation. They ask and require a healthy workplace, a smart working policy, and transparency about their careers possibilities. Unfortunately, they are blamed to be demanding. Everyone fails in understanding that this is a sustainable engagement request that could turn into an occasion for companies. In fact, this is exactly a corporate-responsible approach that comes from the candidates and new joiners, and it forces the employers to redefine their policy. The management should take into account the fact that, for example, a smart working policy would reduce the fatigue of their colleagues by increasing productivity – not to mention the environmental advantages. After all, millennials are asking a very basic thing: a fair and trustful place to work – not in a communication campaign, but in their daily reality.

There are a number of ways in which a social responsible strategy can be beneficial. As we can see, corporate social responsibility is intertwined to a social aspect that deals with fair treatment, transparency and equal access. Yet many firms still struggle to put into place these simple but hard-to-deploy initiatives. In conclusion, today’s companies should start by asking themselves questions. Am I truly honest with my employees? Do I encourage a feedback culture? How is my management team acting toward their colleagues? If they are responsible enough to discuss the reality of their answers, they will succeed indeed. That it is the core of a true corporate social responsibility commitment for today and the future.

Article initially prepared for the International Careers Course 2020.