By Coro Strandberg

If you thought the challenge of creating your organization’s H1N1 policy was difficult, get ready for the next big wave in HR planning. As North America emerges from the current recession, smart employers are beginning to look with fresh eyes on the importance of embedding corporate social responsibility (CSR) in the employee value proposition.

CSR – the integration of social and environmental considerations in business – has taken root in management circles as a defining business agenda of the 21^st century. The top drivers of this trend are cost savings and operational efficiencies; securing the social license to operate; and – of great importance to HR professionals – employee engagement.

Organizations large and small find that a demonstrated commitment to managing social and environmental issues and impacts provides opportunities to help them recruit the best talent, reduce employee turnover, and enhance employee morale and productivity. An ROI gold mine for an astute HR manager.

In spite of this value proposition for integrating CSR throughout the organization, there is little guidance available to HR managers who can see the benefits of a CSR ethic, but lack a framework for seizing the opportunities that await. With funding from Industry Canada, and in consultation with a number of HR professionals, a white paper and roadmap has been put together to help fill this gap. The roadmap unpacks the HR mandate from the perspective of best practice in CSR, which is also referred to as corporate sustainability and the “triple bottom line” of people, planet and profits.

Many managers find that they are already applying some of the key concepts underpinning the tool, but acknowledge that they have never seen all the components put together in a fashion that allows them to do a mental check of their strengths and weaknesses and plot out next steps on the CSR journey. The roadmap reviews 10 key elements for a “sustainable human resource management” program, 6 of which are profiled below.

• Vision, mission and CSR strategy development
  For successful CSR it is important that the organization knows its strategic direction. Thus, the HR manager can champion, support, or lead the development of a CSR vision, mission or strategy.

• Workforce planning and recruitment
  CSR often generates a requirement for new competencies, as the workplace retools to integrate social and environmental factors into the business model. Leading CSR companies understand employees are increasingly seeking out employers aligned with their values, and are embedding sustainability into the employee brand and value proposition. For example, Vancity Credit Union’s “careers” website says: “Do you want a job where you’re making a difference in your community, and where you’re part of something bigger than yourself?”.

• Orientation and training
  New recruits should be given a clear line of sight to the company’s CSR vision, mission and core CSR values and goals. The orientation plays a critical role in this regard, as does CSR training and competency development. Employee understanding and awareness of the CSR agenda – and their role within it – is key to securing their engagement and buy-in.

• Compensation and performance management
  The most central HR tool is the compensation and incentive program. CSR companies quickly understand that in order to achieve CSR progress, it is essential to ensure that employees are rewarded for their contributions to the social and environmental – as well as the financial and economic – goals. This requires rethinking the compensation systems to ensure this commitment is fully integrated.

• Change management
  CSR is at root a change management exercise. In order to engage employees in rethinking how they do business day-to-day, it is important that the HR group thinks through how best to advance CSR thinking in the organization. Messages from the board and CEO giving permission to innovate in these areas are important, as the business re-engineers itself for the future marketplace.

• Measurement and celebrating success
  To gauge progress and guard against employee cynicism, CSR companies survey their employees on CSR alignment, through questions such as: “I believe the organization acts in alignment with its CSR commitments”. This can serve as an early-warning device if employees think the company is not walking its talk, and to signal cause for celebration where warranted.

Increasingly organizations are embracing a CSR ethic and adopting CSR oriented business strategies as they come to accept that CSR is here to stay and – more importantly – can generate positive business benefits. It’s beneficial for attraction, retention and motivation and it’s the right thing to do. Now, there is a tool that can help HR professionals contribute to this new arena of organizational success. Hopefully this roadmap can help HR managers understand their unique role in sustainability and CSR and how they can foster an environment that embeds CSR in “the way we do business around here”.

Coro Strandberg moderated Leveraging Corporate Social Responsibility to Create Value for Your Organization at BC HRMA’s Conference 2010. Strandberg is the Principal of Strandberg Consulting, which provides strategic advice, coaching and facilitation services to organizations wishing to integrate sustainability and corporate social responsibility into their business strategy and operations. She is a leading Canadian CSR thought leader, public speaker and author.