Corporate Social Responsibility-Is it just a fancy catchphrase?
View(s):Recently I received an email from a HR manager from a large organization about what he termed as ‘hypocrisy attached to CSR’. Even though this may not be common to all organizations, his problem statement was clear: ‘Business tycoons talk of CSR. Some of them use this word to build up their image and achieve self-actualization. How many of them are sincere in serving the community? How could a labourer with a mere Rs 16,000 take home salary (after overtime and everything) sustain his family in this economic climate, when a manager can easily spend around Rs 20,000 on entertainment and other not-so-important things? What a disparity? So they forego their ethical responsibilities towards the minor staff but make public announcements about their altruism to the outside world. Can these labourers ever convey their grievances and if they do so, will their plight be heard and understood by the management? Yes, HR has a huge part to play in communicating these grievances, but what if no one listens? No wonder, most HR managers I have met feel frustrated about just following the orders and not being able to make changes to current status quo or add value.’
Many of today’s organizations go beyond their ethical responsibilities and take proactive steps to help the society at large. An organization’s most fundamental forms of responsibility are depicted by a pyramid of Corporate Social Responsibility (CSR), where the financial responsibility sits at the bottom of the pyramid. After all, unless a company makes money, it will go out of business, making it impossible to attend to any responsibility at all. CSR typically focuses on the top of the pyramid and requires business practices that adhere to ethical values that comply with legal requirements that demonstrate respect for everyone and promote the betterment of the community at large and the environment. Personally, I have been fortunate to be involved in working with a few such companies and can only applaud such endeavours as champions of CSR step out of their comfort zones to make a difference in the lives of the employees and the communities. Better still, is to know that their initiatives are strategic, and integrated into the business model itself, thereby enhancing the relevance, contribution and sustainability.
Though at first glance it may seem to distract from the economic function of businesses, CSR has its share of advantages, and can be justified by four main arguments. The first, moral obligation states that companies have a duty to be good citizens and conduct business in a way that honours and respects ethical values, communities and the natural environment. The second, sustainability argues on grounds of environmental and community stewardship, emphasizing on meeting the needs of today in a way that won’t compromise the ability to meet the needs of future generations. The third, licence to operate stems from the point that every company needs some form of permission from governments, communities and various stakeholders in order to do business. The fourth, reputation, which seems to be the driving force behind CSR today, focuses on the fact that CSR improves the company’s image, strengthens the brand and livens up morale. These justifications show advantages of CSR that go beyond just cleaning up messes and lending a helping hand to those in need.
Going back to the concerns of the HR manager articulated in his email, it is not rocket science that unless we remain committed to make a difference in the lives of the people within the company, whatever we do on a public platform will only be cosmetic. Jumping the lower levels of the CSR pyramid to be seen as generous, can only make the internal environment more volatile. Formulating and following an unbiased code of conduct and being open for inspection for compliance with this code of conduct is an important start in constantly maintaining standards for the people within the organization.
In answer to the above HR managers concerns, it is clear that some of the grievances should be handled as a part of ‘internal CSR’, thereby going out of the way to make a difference in the lives of the employees first. HR has to be recognized as one of the most crucial value adding functions, as HR plays a tremendous mediating and an ambassadorial role in the organization. Most influential HR personnel command the respect of peers and key stakeholders and works on challenging the conventional thinking, bringing credibility to HR both inside and outside the business with visionary and transformational leadership. However, their efforts will be in vain if they are suppressed as just a mere support service. HR is more than that; it is a strategic value creator, a catalyzing force that balances the aggressive and profit-driven mindset of businesses.
Like every other value, be it respect, integrity, honour, or commitment, the spirit of making a difference, first begins at home. So if we do not first implement it within the organization, what we do outside the organization under the slogan of CSR might be just a fancy make-believe state of mind that we are charitable and benevolent, when in reality we would be miles away from reaching the ideal.
(The writer is a Business Psychologist, consultant and a university lecturer based in
colombo. She could be contacted on email at rozaine@forte.lk).
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