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INTRODUCTION
Gone are the days when Corporate Social Responsibility was considered as an internal
organizational policy or as a corporate ethic strategy. In recent history, many organizations have
made efforts to attach far more importance to CSR than what an individual or an industry wide
initiative would have attached to CSR. Also several laws at regional, national and international
level have surfaced that have no more left it as a voluntary practice. In light of these
developments it would not be wrong to say that CSR is now a mandatory legal requirement.
Above all, now it is seen as a regulatory exercise.
CSR is largely taken up as a private firm policy. For successful implementation of CSR, it is
required that the CSR policy should be integrated with the particular business model. An
organization may:
1. Comply with CSR Laws, or
2. Fail to comply with CSR Laws, or
3. Go beyond the Laws
In its efforts to implement CSR policy within a particular business model set up.
As per Cambridge Dictionary, Social means relating to activities in which you meet and spend
time with other people and that happen during the time when you are not working, relating to
society and living together in an organized way and an occasion when the members of a group
or organization meet informally to enjoy themselves.
As per Cambridge Dictionary, Responsibility means something that it is your job or duty to deal
with, to be in a position of authority over someone and to have a duty to make certain that
particular things are done and a duty to take care of something.
Corporate Social Responsibility has attracted and still attracts attention from various kinds of
businesses and stakeholders. Corporate Social Responsibility has been defined by Sheehy as
“international private business self regulation.”
Carroll extended the concept of corporate social responsibility from the traditional economic
and legal responsibility concept to an ethical philanthropic responsibility concept in light of the
rising concerns on ethical issues in businesses.
Clause 135 of Companies Act, 2013 includes following criteria for Corporate Social
Responsibility.
Net Worth – Rupees 500 Crores or More Or,
Turnover – Rupees 1,000 Crores or More Or,
Net Profit – Rupees 5 Crores or More
If any of the aforesaid conditions are satisfied by a business organization during a financial year,
then such an organization should comply with the understated norms:
1. Such an organization should create a CSR Committee or Board which shall have at least
three directors, out of which one shall be an independent director.
2. The chosen Board of Directors should formulate the CSR Policy.
3. At least 2% of Average Net Profit of the company during immediately preceding three
financial years shall be used for spending in accordance with the CSR Policy.
As per Cambridge Dictionary, Human Resource (HR) means people who can work or can be
employed or who can be useful or productive to the company or an organization are considered
as an asset. Human Resource Department in a company or an organization is responsible for
dealing with employees, for employing them, for training them, for dealing with their problems
and for managing their records.
As per Cambridge Dictionary, Function means the natural purpose (of something) or the duty
(of a person), the way in which something works or operates, a job or task that someone or
something does and a particular area of responsibility of a company or an organization.
In a layman’s language, HR Functions means the work to be carried out by Human Resource
Department. HR Functions include the activity of managing a company’s employees, for
example, by employing new workers, training them, managing their employment records and
helping them in their problems. Research has shown over time that Human Resource Functions
& Management plays a vital role in how successfully a company or an organization performs.
It is a function of the company or an organization which deals with the concerns that are related
to the staff of the company or organization in terms of hiring, compensation, performance,
safety, wellness, benefits, motivation and training. Human Resource Functions or Management
is also a premeditated approach to manage people and the work culture.
Impact means the effect that a person or an event or a situation has on someone or something.
Impact of Corporate Social Responsibility on HR Functions means how the Corporate Social
Responsibility in execution affects the Human Resource Department’s working.
Mahatma Gandhi’s view on Corporate Social Responsibility is worth being considered. Gandhian
Economics is so well described that it deals with many present day issues also.
One of the issues that can be matched with Gandhi’s concept of Trusteeship is Corporate Social
Responsibility. Corporate Social Responsibility professes that the Corporate Sector which earns
it’s profits or incomes through the sale of goods and services in the society also has some
responsibility towards the society at large.
Corporate Social Responsibility is the linking pin that connects the Corporate Sector with the
Social Sector. With rapidly ever increasing inequalities or gaps between haves and have-nots,
Corporate Social Responsibility becomes far more important than CSR’s importance that was felt
in past. And now efforts need to be taken to execute this responsibility in a more sincere and
honest manner.
Those who are for Corporate Social Responsibility understand how one should divide funds
available for the three roles that Corporate Social Responsibility plays. The roles of Corporate
Social Responsibility are as follows:
1. Value Creator
2. Risk Manager
3. Corporate Philanthropist
How much funds should be divided for each role that Corporate Social Responsibility plays
depends upon circumstances of a case. Hence, the amount of funds for each aforesaid roles
vary from a person to another person, from a group to another group and from one
organization to another organization.
REVIEW OF LITERATURE
(PREVIOUS WORK DONE IN THIS RESPECT):
In this Chapter I will highlight and review what other authors and writers have written
beforehand on the chosen topic “Impact of Corporate Social Responsibility on Human Resource
Functions.”
Claire Dupont had analysed GDF SUEZ’s sustainable development report. During 2013,
according to Fortune Magazine GDF SUEZ was ranked first among the global companies.
Claire Dupont’s research focused on the following practices: recruitment and employment
access, training and career development, and well-being in the workplace.
Results of Dupont’s research reveal that CSR has a positive influence on employees’ advocacy
role as the Group integrates concerns regarding equal treatment, health, safety and diversity.
Dupont is forced to believe that GDF SUEZ Group desires to develop its brand further by
presenting itself as a responsible employer so as to harvest the benefits that flow from that
label.
Let us now glance through what various scholars and authors have said or written about
Corporate Social Responsibility and Human Resource Functions.
Delaney and Huselid (1996) or Schuler and Jackson (1998, in Chrétien et al., 2005), emphasise
that the HR departments should develop:
1. a more strategic approach for their practices, and
2. a strong bond or link between company strategy and HR policy.
By doing so, HR departments will be able to create additional value.
Dietrich and Pigeyre (2005), are of the opinion that HRM must:
1. respond to company’s performance, profitability and competitiveness objectives, and
2. consider human resources as a key asset of the company.
Sibaud (2003) suggests that Human Resource Department should simultaneously take care of
the two dimensions:
1. First dimension addresses HR functions, tasks and organizational issues.
2. Second dimension looks after human capital acquisition, development and promotion.
Becker and Huselid (1999, in Simard et al., 2005) links human resources to sustainable
competitive advantage.
Some people were interviewed by SOFRES in 2001 (in Saulquin, 2004). It was found that these
people considered that CSR would
1. denounce child labour practices from the Third-World, and
2. encourage positive treatment of employees there by developing employability.
Some HR professionals were interviewed by Coulon (2006). It was found that these people
considered that CSR’s major interests are to
1. better involve employees at work and
2. to attract the best employees.
These findings highlight the influential relationship that exists between HRM and CSR, a
conclusion strengthened by Scouarnec’s (2005) survey regarding CSR’s considerable impact on
HR functions.
These author’s views indicate that there is a very narrow link between CSR and HRM or HR
Functions.
So, when both concepts—CSR and HRM or HR Functions merge, socially responsible practices
emerge and this affects the employees in terms of human capital investment (all the capacities,
talents, qualifications, and experiences of an individual that determines his capacity to work or
to produce for himself or for others), health and safety.
This approach would improve company image, commitment, staff loyalty, and guarantees good
working conditions.
These authors are of the view that CSR intends to benefit employees, it takes the shape
of training individuals to progress in their careers, promoting diversity, and offering good
remuneration, including gratitude and employee profit-sharing in shareholding.
Fraisse and Guerfel-Handa (2005) are of the view that HRM or HR Functions could act as a
powerful lever that would help companies to adopt more responsible behaviour. HRM or HR
Functions could thus pave way for CSR within companies (Preuss et al., 2009).
Redington (2005) and Gond et al. (2011) agree with such a view by emphasizing the key role of
HR professionals and effective people-management for successful CSR programmes.
Beaupré et al. (2008) suggests that change management, training programmes and systems of
communication with employees, programmes reconciling private life with professional life and
health prevention at work, are examples of HRM practices or HR Functions supporting and
strengthening CSR.
This role of HRM or HR Functions in CSR development would play a key role in light of the
importance of employees’ knowledge of the organisation and the skilled labour shortage.
Fraisse and Guerfel-Handa (2005) highlight how CSR’s influence redefines HRM strategies by
bringing into our notice questions of lifelong training, health and safety, diversity, and equal
treatment of men and women.
For example, Sharma et al. (2009) argues that CSR will affect the designing of performance
management system, in order to better measure the employees socially responsible initiatives.
This becomes important as the internalization of CSR in any organizational culture requires that
the behaviours get appraised, appreciated and rewarded.
Therefore, both HRM or HR Functions and CSR mutually influence each other. Sometimes HR
functions and roles evolve according to CSR practices established by the company.
Martory and Crozet (2008), Grimand and Vandangeon-Derumez (2010) developed the staff mix.
According to it the HRM practices or HR Functions that can be influenced by the CSR approach
are compensation policy (internal and external equities of remunerations), employees’ social
valuation (privileged internal flexibility, diversity policy regarding recruitments and intern
promotion), climate and social behaviour (preventing absenteeism), and the company’s social
image (investigating social climate, partnerships with training institutions).
Some scholars and authors believe that CSR and HRM or HR Functions affect each other, only in
some specific domains, such as health and safety at work or prevention of discrimination at
work (Kagnicioglu, 2007; Bowsprit et al., 2008).
In conclusion, we think a socially responsible HRM influences attitudes and behaviour of
company members.
OBJECTIVES OF RESEARCH
Through this exploratory research work, I would like find out about the following questions:
a. Does undertaking of Corporate Social Responsibility eases the work of HR Department?
b. Are there certain Social Responsibilities that Corporates like to take up?
c. Are there certain Social Responsibilities that Corporates hesitate to take up?
d. How are Corporate Social Responsibility and HR Functions related to each other?
e. How much are employees satisfied with respect to the Corporate Social Responsibility as
is executed by the company.
f. How Corporate Social Responsibility affects HR Functions.
g. To judge how far whatever is given in company’s published source seems justified.
METHODOLOGY TO BE ADOPTED: -
I have chosen to carry out an exploratory research work, mainly to establish relation between
Corporate Social Responsibility and HR Functions and to find out how Corporate Social
Responsibility affects HR Functions.
Many scholars are of the opinion that keeping CSR perspective will help in well-execution of HR
Functions.
For conducting the exploratory research work a questionnaire will be prepared and a survey will
be carried out on the chosen sample. For analysis during research work I will use some
published and unpublished sources of information. From time to time companies and
organizations publish their reports which have an impact on all parties dealing with the
company. So, it is necessary to examine how far what has been revealed in their reports is
justified.
I chose to consider GDF SUEZ’s case for once Fortune magazine had rated it as the most socially
responsible company in the world. Also, GDF SUEZ was rated amongst the top ten companies in
the world, irrespective of sector and this company has earned many CSR prizes. GDF SUEZ’s
awareness for sustainable development can be understood from the fact that this company
joined the Dow Jones Sustainability Index of the World in 2003. Worth noting is the fact that at
that time it was the only company in its sector to join the Dow Jones Sustainability Index.
The analysis is in two phases. In phase 1, HR Functions of the company are studied. And in the
phase 2, efforts are made to find out how CSR impacts the HR Functions.
During the research work, one or more of the Statistical Tools and Techniques listed next page
onwards will be used for data collection, organization, presentation, analysis and interpretation.
For Collection of Data
a. For Internal Source of Data
b. For External Source of Data – Primary
Direct Personal Interview
Indirect Personal Interview
Telephonic Interview
Information from Correspondents
Mailed Questionnaires
Questionnaire filled by Enumerators
c. For External Source of Data – Secondary Published Sources
Government Publications
Publications of International Organizations
Semi-Official Publications
Reports of Committees and Commissions
Private Publications
Journals
Newspapers
Research Institutions
Professional Trade Bodies
Annual Reports of Joint Stock Companies
Articles
Market Reviews
Reports
d. For External Source of Data – Secondary Unpublished Sources
Research Institutions
Trade Associations
Universities
Labour Bureaus
Research Workers
Scholars
Records and files of Government Offices
Records and files of Private Offices
Measures of Correlation
On the Basis of Nature of Relationship between the Variables
Positive Correlation
Negative Correlation
Linear Correlation
Curvilinear Correlation
Simple Correlation
Multiple Correlation
Partial Correlation
On the Basis of Degree of Correlation between the Variables
Perfect Correlation
Perfect Positive Correlation +1
Perfect Negative Correlation –1
Very High Degree of Correlation
Very High Degree of Positive Correlation +0.9 or more
Very High Degree of Negative Correlation –0.9 or more
Sufficiently High Degree of Correlation
Sufficiently High Degree of Positive Correlation from + 0.75 to +0.9
Sufficiently High Degree of Negative Correlation from –0.75 to –0.9
Moderate Degree of Correlation
Moderate Degree of Positive Correlation from +0.6 to +0.75
Moderate Degree of Negative Correlation from – 0.6 to –0.75
Only the Possibility of a Correlation
Only the Possibility of a Positive Correlation from +0.3 to +0.6
Only the Possibility of a Negative Correlation from –0.3 to –0.6
Possibly no Correlation
Possibly no Positive Correlation Less than +0.3
Possibly no Negative Correlation Less than –0.3
Zero Correlation / Zero Positive or Negative Correlation Or
Uncorrelated 0
On the Basis of Karl Pearson’s Coefficient of Correlation
On the Basis of Spearman’s Rank Correlation
When Ranks are known
When Ranks are not known
When Ranks are equal or repeated
Constructing Index Numbers
Some Graphical Tools
Graph of Median
Graph of Mode
Graph of Quartile
Lorenz Curve
Scatter Diagram
CHAPTERISATION:-
Chapter 1: Research Methodology
Chapter 2: About Corporate Social Responsibility and Human Resource Functions
Chapter 3: How Corporate Social Responsibility Affects Human Resource Functions
Chapter 4: A Statistical Study on the Chosen Sample
Chapter 5: Related Problems, Their Remedial Solutions and / or Suggestions
Chapter 6: Conclusion
PROPOSED HYPOTHESIS:-
If CSR is implemented in right manner, then its effect on HR Function may be positive. As a
result of proper CSR implementation HR Functions can be executed in a way that ensures
attainment of organizational goals.
If one is not satisfied with what is given in the above paragraph, he or she can test this
hypothesis. As a general truth, this hypothesis can be tested by any one. Also, this hypothesis
predicts how HR Functions can be carried out in a more effective and efficient manner.
The above statements revealed here are not based on a large amount of data, so the above
statements together form a hypothesis but not a theory about CSR or HR Functions.
Although already there exist several theories proposed by several scholars or authors but still
when we set to implement these theories we need to understand many other things that are
not really clear. It is far much easier to tell theories than to work it out practically. During
application of theories we need to develop hypothesis for certain things that are not so well
known. So, I have developed a hypothesis here to understand in practice how CSR
implementation will affect HR Functions.
Through the exploratory experiment I hope to put this hypothesis to test. That is, I will perform
a test of how the two variables (CSR and HR Functions) might be related to each other. This is
what is called for while carrying out a real experiment wherein two variables are tested. This
hypothesis is based on two certain previously noted observations:
1. Several organizations do not implement CSR, and
2. Average monthly performance of employees is going down
Are these two events connected? And, if these two events are connected, then in what manner
these two events are connected.
Without this hypothesis our experiment or exploratory research work would not be a real
experiment or a real research work. In that case, it would just remain an exercise or
demonstration of what is already known to us. But, through our experiment or exploratory
research work I wish to know how two variables (CSR and HR Functions) are related to each. In
this I wish to find a relation between two variables through our study that was earlier unknown.
This hypothesis contains two variables. CSR is an “independent” variable as in this study proper
implementation of CSR is quite independent of other variables and this independent variable is
within the control of scientist or researcher. HR Functions form the dependent variable within
the scope of this research study. The HR Function as a dependent variable is the one that one
observes and / or the result of which one measures.
The key importance of this hypothesis is that it will force readers to think about what results
one should look out for in this exploratory research study.
IMPORTANCE OF STUDY:-
Significance of the Study: The key benefits of exploratory research work are:
Improves Understanding: During an exploratory research work, the knowledge of the
researcher improves. However, due to lack of statistical strength, one should not be in hurry to
arrive at conclusions. Instead, doing so will help the researcher in determining why and how
things happen.
Concept Testing: Before heading for the research work details, the concepts are tested and then
the rest of the exploratory research work follows.
It helps in arriving at conclusions: An exploratory research work becomes the guiding force for
futuristic actions of the research work. As exploratory research work brings clarity, it makes
things more effective and efficient. It also helps in choosing the best course of approach that
aids in achieving the research objectives.
It makes research work more efficient: An exploratory research work actually happens to be
cheaper than large scale formal researches like surveys or experiments. It so happens that it
helps in avoiding mistakes. When there remains more clarity and less mistakes there remains
room for cutting down costs. In this way, the expenditure gets reduced.
It helps in Strategic Planning: At times an exploratory research work saves a lot of time, effort
and money.
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