Recently when networking the term ‘Corporate Social Responsibility’ (CRS) is often used – why does it matter to my business? and why would someone tell me it impacts on the people within my business – how?

CSR covers all aspects of corporate governance. It is about how companies conduct their business in an ethical way, taking account of their impact economically, socially, environmentally and in terms of human rights. This moves beyond traditional business stakeholders such as shareholders or local suppliers. CSR includes social partners such as local communities, and global responsibilities such as protecting the environment and ensuring good labour standards in overseas suppliers. CSR also includes relationships with employees and customers.

Why does CSR matter?

CSR has grown in importance in recent years, which has meant increased demands from customers, employees, statutory bodies and the general public for detailed information about whether companies are meeting acceptable standards. Increasingly companies have to take account of how their actions impact on society. The ‘employer brand’ has become an important way to add value but it is also more vulnerable to scrutiny and suspicion. CSR is an issue in which we all have a stake. Our actions today will influence the lives of future generations through for example, trying to protect the environment. It is changing the way business is done.

Being proactive about CSR will increasingly provide a competitive advantage both externally through protecting company reputation and the accompanying publicity, and internally through employee engagement.

HR has a key role in making CSR work. CSR needs to be embedded in an organisation’s culture to make a change to actions and attitudes, and the support of the top team is critical to success. HR already works at communicating and implementing ideas, policies, cultural and behavioural change across organisations. Its role in influencing attitudes and links with line managers and the top team mean it is ideally placed to do the same with CSR.

HR is also responsible for the key systems and processes underpinning effective delivery. Through HR, CSR can be given credibility and aligned with how businesses run. CSR could be integrated into processes such as the employer brand, recruitment, appraisal, retention, motivation, reward, internal communications, diversity, coaching and training.

The way a company treats its employees contributes directly to it being seen as willing to accept its wider responsibilities. Building credibility and trusting their employer are seen as being increasingly important by employees when they choose who they want to work for. People, especially Generation X and younger, don’t want to work where there is a clash with their personal values. Present and future employees are placing increasing value on the credibility of an organisation’s brand. Employers are using the positive aspects of their brand in recruiting, motivating and retaining highly-skilled people.

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