SOCIAL RESPONSIBILITY AND

HUMAN RESOURCE MANAGEMENT

1–1
 Societal
Societal Factors
Factors Affecting
Affecting HRM
HRM

Demographics
Sustainability
and Diversity

Strategic
HRM

Ethics

1–2
 Diversity
Diversity
Demographic
Demographicchanges
changesin insociety
societyhave
havegreatly
greatlyimpacted
impactedthethe
composition
compositionof ofthe
theworkforce.
workforce.In Inaddition,
addition,numerous
numerouslawslaws
protect
protectdiverse
diversegroups
groupsin inour
oursociety
societyfrom
fromdiscrimination
discrimination
in
inemployment
employmentMost Mostorganizations
organizationshave
havedeveloped
developedsomesome
kind
kindof
ofdiversity
diversitymanagement
managementprogram
programin inresponse
responseto toone
one
of
ofboth
bothof
ofthese
thesefactors.
factors.
Diversity
Diversityinitiatives
initiativescancanbebedesigned
designedto toensure
ensurelegal
legal
compliance
complianceor orto
totruly
trulypromote
promoteand andencourage
encouragerespect
respectfor
for
others
othersand
anddifferences.
differences. There
Thereisisaamarked
markeddifference
difference
between
betweenthese
thesemotivations,
motivations,as asillustrated
illustratedininExhibit
Exhibit2.1.
2.1.
Diversity
Diversityisisaastrategic
strategicbusiness
businessissue
issuefor
foran
anoverwhelming
overwhelming
majority
majorityofoforganizations/employers.
organizations/employers.

1–3
1–4
 Generational
Generational Diversity
Diversity

Generational
Generational diversity
diversity isis becoming
becoming increasingly
increasingly
prevalent
prevalent as
as individuals
individuals live
live and
and remain
remain inin the
the
workplace
workplace longer
longer than
than inin previous
previous years.
years.
Different
Different generations
generations need
need to to be
be able
able to
to work
work
alongside
alongside each
each other
other in
in contemporary
contemporary
organizations.
organizations. Exhibit
Exhibit 2.22.2 illustrates
illustrates some
some ofof the
the
characteristics
characteristics of
of different
different generations
generations found
found in in
the
the workplace.
workplace.

1–5
1–6
 Workforce
Workforce Demographic
Demographic Changes:
Changes:
“Graying”
“Graying” of
of Workforce
Workforce
•• Negative
Negative aspects
aspects of
of •• Positive
Positiveaspects
aspects of
of
older
older workers
workers older
older workers
workers
–– Perceived
Perceivedresistance
resistancetoto –– As
Asproductive
productiveorormore
more
change
changeby byolder
olderworkers.
workers. productive
productivethan
thanyounger
younger
–– Increased
Increasedhealth-care
health-care workers
workers
costs
costsfor
forsenior
seniorworkers
workers –– Have
Havemore
more
–– Blocking organizational
organizationalloyalty
Blockingadvancement
advancement loyalty
opportunities than
thanyounger
youngerworkers
opportunitiesfor
foryounger
younger workers
workers
workers –– Possess
Possessbroader
broader
–– Higher
Higherwage
wage&&salary
salary industry
industryknowledge
knowledge&&
costs
costsfor
forsenior
seniorworkers
workers professional
professionalnetworks
networks

1–7
 Workforce
Workforce Demographic
Demographic Changes
Changes

•• Baby
Baby Boomers
Boomers (1945
(1945––1962)
1962)
–– InInexcess
excesssupply
supplyininmiddle
middlemanagement
managementranks
ranks
–– HR
HRchallenge
challengeisistotomanage
manage“plateaued”
“plateaued”workers
workers
•• Baby
Baby Busters
Busters (1963
(1963––mid-1970s)
mid-1970s)
–– Are
Arecareer
careerbottlenecked
bottleneckedby byBoomers
Boomers
–– Who
Whohave
haveskills
skillsininhigh
highdemand
demandare
aredoing
doing&&will
willdo
do
well
well

1–8
 Workforce
Workforce Demographic
Demographic Changes
Changes

•• Generation
Generation “X”ers
“X”ers (late
(late 1970s
1970s–early
–early 1980s)
1980s)
–– Have
Havelife-long
life-longexposure
exposuretototechnology
technology&&constant
constantchange
change
–– Seek
Seekself-control,
self-control,independence,
independence,personal
personalgrowth,
growth,creativity
creativity
–– Not
Notfocused
focusedon onjob
jobsecurity
securityororlong-term
long-termemployment
employment
•• Generation
Generation “Y”:
“Y”: “Baby
“Baby Boom
Boom Echo”
Echo” (after
(after 1979)
1979)
–– High
Highcomfort
comfortlevel
levelwith
withtechnology
technology
–– Global
Global&&tolerant
tolerantoutlook
outlookon
onlife
life
–– Highly
Highlyentrepreneurial
entrepreneurial
–– Shorter
Shorterattention
attentionspan
span
–– Opting
Optingfor
formore
moretransient
transient&&variable
variableproject
projectwork
work

1–9
 Workforce
Workforce Demographic
Demographic Changes
Changes

•• Sexual
Sexual orientation
orientation
–– More
Morethan
than200
200Fortune
Fortune500500employers
employersoffer
offerfull
fullbenefits
benefitsfor
for
domestic
domesticpartners
partners
–– Sexual
Sexualorientation
orientationissues
issuescan
canimpact
impactbottom
bottomline
line
–– -Same-sex
-Same-sexmarriage
marriageisiscreated
createdcomplications
complicationsforforemployers.
employers.
•• Disabilities
Disabilities
–– 54
54million
millionAmericans
Americanswithwithdisabilities
disabilities
–– Often
Oftennot
notincluded
includedinindiversity
diversityinitiatives
initiatives
–– Many
Manysupervisors
supervisorsdo
donotnotunderstand
understandneedsneedsofofemployees
employees
with
withdisabilities
disabilities
–– Stereotypes
Stereotypes
1–10
 New
New Employee/Workplace
Employee/Workplace Dynamics
Dynamics

•• Emphasis
Emphasis on
on management
management of
of professionals
professionals
–– Establishment
Establishmentofofseparate
separatecareer
careertracks
tracks
•• Technical/Professional,
Technical/Professional,Managerial
Managerial/Administrative
/Administrative
–– Use
Useofofproject
projectteams
teams
•• Less
Less employee
employee loyalty,
loyalty, more
more loyal
loyal to
to self
self
–– Staying
Stayingwith
withemployers
employersfor
forshorter
shorterperiods;
periods;
demanding
demandingmore
moremeaningful
meaningfulwork
work&&involvement
involvementinin
organizational
organizationaldecisions
decisions

1–11
 New
New Employee/Workplace
Employee/Workplace Dynamics
Dynamics

•• Increased
Increased personal
personal &
& family
family dynamic
dynamic
effects
effects
–– More
Moresingle-parent
single-parentfamilies,
families,dual-career
dual-careercouples,
couples,&&
domestic
domesticpartners
partners
•• Increased
Increased nontraditional
nontraditional work
work relationships
relationships
–– Part-time,
Part-time,consulting,
consulting,&&temporary
temporaryemployment
employment
flexibility
flexibility
–– Outsourcing
Outsourcing&&entrepreneurial
entrepreneurialopportunities
opportunities

1–12
 Ethnicity
Ethnicity

•• 2010
2010 •• By
By 2025
2025
–– Ethnic
Ethnicminority
minority –– African-Americans
African-Americanswill will
share
shareofof workforce
workforce represent
represent14%14%ofofpopulation
population
exceeds
exceeds30%30% –– Up
Upfrom
from12%
12%inin1994
1994
–– Up
Upfrom
from22%22%inin –– Hispanics
Hispanicswillwillrepresent
represent17%17%
1990
1990&&18%
18%inin1980
1980 ofof population
population
•• By
By 2050
2050 –– Up
Upfrom
from10%
10%inin1994
1994
–– Close
Closetoto50%
50%ofofUS
US –– Asians
Asians&&Pacific
PacificIslanders
Islanders
population
populationwill
willbe
be will
willrepresent
represent8% 8%ofof
non-Caucasian
non-Caucasian population
population
–– More
Morethanthandouble
doublefromfrom1994
1994

1–13
 Managing
Managing Workplace
Workplace Diversity
Diversity
•• Understanding
Understanding& & •• Diversity
Diversitymanagement
management
appreciating
appreciatingdiversity
diversity programs
programsor
orinitiatives
initiatives
–– Critical
Criticaltotoeffectively
effectively –– Must
Mustbebeintegrated
integratedwithwith
marketing
marketingtotoethnic
ethnic&&minority
minority organization’s
organization’smission
mission&&
groups
groups objectives
objectives
–– Promoted
Promotedby byhaving
having diverse
diverse –– Help
Helpkey
keydecision
decisionmakers
makers
workforce
workforceatatallall levels
levels identify
identifydiversity’s
diversity’sbenefits
benefitstoto
–– Helps organization
Helpsensure
ensurehiring
hiring&& organization
promotion
promotiondecisions
decisionsare
are –– Make
Makecritical
criticaldecisions
decisionsabout
about
unbiased
unbiasedby byperson
person implementing
implementingoptimal
optimal
differences
differences program/initiative
program/initiativecontingent
contingent
on
onorganization
organization&&its itspeople,
people,
mission
mission&&culture.
culture.

1–14
1–15
 Strategic
Strategic Management
Management of
of Diversity
Diversity
•• Determine
Determinewhywhydiversity
diversityisisimportant
important
•• Articulate
Articulatehow
howdiversity
diversityrelates
relatestotomission
mission& &strategic
strategic
objectives
objectives
•• Define
Definediversity
diversity&&determine
determinehow howinclusive
inclusiveits
itsefforts
effortswill
will
be
be
•• Make
Makeaadecision
decisionas
asto
towhether
whetherspecial
specialefforts
effortsshould
shouldbebe
extended
extendedtotoattract
attractdiverse
diverseworkforce
workforce
•• Assess
Assesshow
howexisting
existingemployees,
employees,customers,
customers,& &other
other
constituencies
constituenciesfeel
feelabout
aboutdiversity
diversity
•• Determine
Determinespecific
specifictypes
typesofofdiversity
diversityinitiatives
initiativesthat
thatwill
will
be
beundertaken
undertaken

1–16
 Ethical
Ethical Behavior
Behavior

•• Many
Many employers
employers are are now
now considering
considering ethics
ethics and
and
ethical
ethical behavior
behavior in in light
light of
of major
major bankruptcies,
bankruptcies,
scandals
scandals and
and business
business meltdowns.
meltdowns. However,
However,
ethics
ethics are
are subject
subject toto personal
personal values
values and
and
convictions.
convictions.
•• Common
Common ethical
ethical concerns
concerns for for HR
HR include
include
–– off-duty
off-dutybehavior
behavior
–– ownership
ownershipofofwork
work
–– non-compete
non-competeclauses
clauses

1–17
 Sarbanes-Oxley
Sarbanes-Oxley Act
Act of
of 2002
2002

provides
provides sweeping
sweeping measures
measures to
to control
control deception
deception in
in
accounting
accounting and
and management
management practices
practices by
by

 increasing
increasinggovernment
governmentoversight
oversightofoffinancial
financialreporting
reporting
 holding
holdingsenior
seniorexecutives
executivesmore
moreresponsible
responsiblethatthatpreviously
previously
 protecting
protectingwhistle
whistleblowers
blowers

1–18
 Codes
Codes of
of Ethics
Ethics
Many
Manyorganizations
organizationsand
andsome
someindustries
industrieshave
havedeveloped
developed
their
theirown
owncode
codeofofethics.
ethics. The
TheSociety
SocietyofofHuman
Human
Resource
ResourceManagement
Management(SHRM)
(SHRM)has hasdeveloped
developedsuch
suchaa
code
codefor
forHR
HRprofessionals.
professionals. This
Thiscode
codepresents
presentscore
core
principles,
principles,intent
intentand
andguidelines
guidelinesininaanumber
numberofofareas,
areas,
including:
including:Professional
ProfessionalResponsibility;
Responsibility;Professional
Professional
Development;
Development;Ethical
EthicalLeadership;
Leadership;Fairness
Fairnessand
andJustice;
Justice;
Conflicts
Conflictsof
ofInterest;
Interest;and
andUse
UseofofInformation.
Information.

Exhibit
Exhibit2.6
2.6provides
providessome
someguides
guidesfor
fordeveloping
developingaacode
codeof
of
ethics
ethicsor
orcode
codeof
ofconduct.
conduct.

1–19
1–20
 Sustainability
Sustainability
Sustainability
Sustainability(and
(andsocial
socialresponsibility
responsibilityin
ingeneral)
general)take
takeaa
more
moremacro
macroapproach
approachtotomanaging
managingananorganization’s
organization’s
relationship
relationshipwith
withits
itsexternal
externalenvironment.
environment.

Organizations
Organizationsarearebeing
beingincreasingly
increasinglyexpected
expectedto
toconsider
consider
the
theeffects
effectsof
oftheir
theiroperations,
operations,decision
decisionand
andbusiness
businesson
onthe
the
social
socialand
andnatural
naturalenvironment.
environment.

General
GeneralElectric
Electrichas
hasdeveloped
developedaamodel
modelprogram
programrelated
relatedto
to
sustainability
sustainabilityand
andGap,
Gap,Inc.
Inc.has
hasset
setstandards
standardsfor
for
offshoring
offshoringofofits
itsmanufacturing
manufacturingoperations.
operations.

1–21
1–22
 Reading
Reading2.1
2.1
Stereotype
Stereotype Threat
Threat at
at Work
Work
Stereotype
Stereotypethreat
threatisisdefined
definedas asthe
thefear
fearofofbeing
beingjudged
judged
according
accordingto toaanegative
negativestereotype.
stereotype. Even
Evenififan
anemployer
employer
were
weresuccessful
successfulin inhiring
hiringonly
onlynon-prejudiced
non-prejudicedmanagers,
managers,
stereotypes
stereotypesstill
stillexist
existin
inthe
thebroader
broadersociety
societyand
andhence,
hence,the
the
workplace.
workplace. Stereotype
Stereotypethreat
threathas
hasbeen
beendocumented
documentedacross
across
aawide
widerange
rangeof ofdiversity
diversitydimensions
dimensionsand andperformance
performance
domains.
domains. ItItextends
extendsbeyond
beyondthose
thosein
intraditionally
traditionally
disadvantaged
disadvantagedgroups
groupsto tothose
thosewho
whoare
aremembers
membersof ofhigh-
high-
status
statusgroups.
groups. Stereotype
Stereotypethreat
threataffects
affectseveryone
everyoneasasevery
every
individual
individualisisaamember
memberof ofatatleast
leastone
onegroup
groupabout
aboutwhich
which
stereotypes
stereotypesexist.
exist.

1–23
 Reading
Reading2.1
2.1
Stereotype
Stereotype Threat
Threat at
at Work
Work
Based
Based onon the
the conditions
conditions of
of
•• task
task difficulty
difficulty
•• personal
personal task
task investment
investment

Stereotype
Stereotype threat
threat isis more
more likely
likely to
to influence
influence
performance
performance on on difficult,
difficult, challenging
challenging tasks
tasks which
which
are
are at
at the
the limits
limits ofof aa person’s
person’s abilities.
abilities. ItIt isis also
also
more
more likely
likely toto influence
influence performance
performance whenwhen an an
individual
individual in in more
more personally
personally involved
involved with
with aa task
task
and
and hence,
hence, cares
cares about
about performance.
performance.
1–24
 Reading
Reading2.1
2.1
Stereotype
Stereotype Threat
Threat at
at Work
Work
•• Can
Canbebereduced
reducedbybyteaching
teachingaffected
affectedemployees
employeesbehavioral
behavioralstrategies
strategies
for
forimproving
improvingperformance
performanceand andcounteracting
counteractingnegative
negativestereotypes
stereotypes
•• Can
Canalso
alsobe
beeliminated
eliminatedby byrefuting
refutingorordiminishing
diminishingthe thestereotype
stereotype
relevance
relevanceofofaagiven
giventask
task
•• Employees
Employeescancanalso
alsorerereminded
remindedabout
aboutexternal
externalfactors
factorswhich
whichmight
might
constrain
constrainperformance
performancesuch suchasasaadifficult
difficultclient,
client,limited
limitedresources
resourcesororaa
tight
tightdeadline
deadline
•• Can
Canalso
alsobe
beminimized
minimizedby bypresenting
presentingaarole
rolemodel
modelwho whocontradicts
contradictsthe
the
stereotype
stereotype
  
Mangers
Mangerscancanactually
actuallyuse
usestereotype
stereotypethreat
threattotocreate
createmore
morediversity-
diversity-
friendly
friendlywork
workenvironments.
environments.Stereotypes
Stereotypesshould
shouldbe beacknowledged
acknowledgedand and
addressed
addresseddirectly
directlyand
andmanaged
managedby byfocusing
focusingononaalarger
largercontext
contextor
or
environment.
environment.

1–25
 Reading
Reading2.2
2.2
The
The Ethics
Ethics of
of Human
Human Resource
Resource Management
Management

Human
Human resource
resource managers
managers typically
typically face
facethree
three kind
kind
of
of ethical
ethical problems
problems
•• need
needforfordiscernment
discernmentorordetermining
determiningthe theright
rightthing
thingtotododoininaa
given
givensituation
situation
•• conflict
conflictbetween
betweenwhatwhatthe
theHRHRmanagers
managersfeels
feelsisisright
rightand
and
what
whatthetheemployer
employerasks
asksbe
bedone
done
•• conflicts
conflictsofofinterest
interestwhere
wherethetheHR HRmanager’s
manager’spersonal
personalbeliefs
beliefs
differ
differfrom
fromthetheresponsibility
responsibilityofofacting
actingas
asan
anagent
agentfor forthe
the
employer
employer

1–26
 Reading
Reading2.2
2.2
The
The Ethics
Ethics of
of Human
Human Resource
Resource Management
Management

Ethical
Ethical dilemmas
dilemmas in in recruitment
recruitment cancan involve
involve
special
special requests
requests for
for hiring
hiring criteria
criteria from
from
managers,
managers, setting
setting or
or recommending
recommending entry entry
salary,
salary, how
how extensively
extensively to to recruit,
recruit, internal
internal
versus
versus external
external recruiting,
recruiting, privacy
privacy
protection
protection due
due to
to applicants
applicants and and follow-up
follow-up
with
with rejected
rejected applicants/candidates
applicants/candidates

1–27
 Reading
Reading2.2
2.2
The
The Ethics
Ethics of
of Human
Human Resource
Resource Management
Management

Ethical
Ethical dilemmas
dilemmas in in training
training and
and development
development can can
involve
involve training
training employees
employees who who make
make take
taketheir
their
skills
skills to
to aa competitor,
competitor, ensuring
ensuring employee
employee safety,
safety,
particularly
particularly given
given an
an employee’s
employee’s language,
language,
minimizing
minimizing abuses
abuses ofof power
power in in mentoring
mentoring
relationships
relationships andand fully
fully and
and truthfully
truthfully informing
informing
employees
employees aboutabout their
their future
future prospects
prospects with
with the
the
employer
employer

1–28
 Reading
Reading2.2
2.2
The
The Ethics
Ethics of
of Human
Human Resource
Resource Management
Management

Ethical
Ethical dilemmas
dilemmas in in compensation
compensation can can involve
involve
compressed
compressed compensation
compensation systems,
systems, ensuring
ensuring that
that
employers
employers areare not
not exploited
exploited by by managers
managers relative
relative
to
to compensated
compensated hours
hours of
of work,
work, comparable
comparable worth,
worth,
differences
differences inin pay
pay between
between levels
levels of
of responsibility
responsibility
and
and equity
equity in
in pay
pay relative
relative to
to the
the marketplace
marketplace

1–29
 Reading
Reading2.2
2.2
The
The Ethics
Ethics of
of Human
Human Resource
Resource Management
Management

Ethical
Ethical dilemmas
dilemmas maymay also
also be
be present
present relative
relative
to
to employee
employee monitoring,
monitoring, progressive
progressive
discipline
discipline and
and termination,
termination, balancing
balancing costs
costs
of
of benefits
benefits with
with employees’
employees’ needs
needs and
and
choice
choice and
and measures
measures used
used to
to retain
retain
employees
employees

1–30
 Reading
Reading2.3
2.3
How
Howdo
doCorporations
CorporationsEmbed
EmbedSustainability
SustainabilityAcross
Acrossthe
the
Organization?
Organization?

Recommendations
Recommendations
••Learning
Learningabout
aboutsustainability
sustainabilityisisaacompanywide
companywidenecessity
necessity
that
thatshould
shouldnot
notbeberestricted
restrictedto
tothe
thediscourse
discourseof
ofleaders
leadersand
and
senior
seniormanagers
managers
••Awareness
Awarenessinitiatives
initiativesneed
needtotobe
becross-functional
cross-functionaland
andspread
spread
across
acrossthe
thefull
fullrange
rangeofofbusiness
businessfunctions
functions
••Embedding
Embeddingsustainability
sustainabilityshould
shouldinclude
includeboth
bothtechnical
technicaland
and
action
actionlearning
learningopportunities
opportunities
••Learning
Learningcycles
cyclesshould
shouldinclude
includeopportunities
opportunitiesfor
forsocial
social
learning
learningand
andexpansion
expansionof ofcompany
companyknowledge
knowledgesystems
systems

1–31
 Reading
Reading2.3
2.3
How
Howdo
doCorporations
CorporationsEmbed
EmbedSustainability
SustainabilityAcross
Acrossthe
the
Organization?
Organization?

Training
Trainingand
andDevelopment
DevelopmentTools
Tools
•Codes
•CodesofofConduct
Conduct- -specify
specifyminimum
minimumacceptable
acceptablestandards
standardsinincorporate
corporateprocesses
processesandandprocedures
procedures
•Impact
•ImpactMeasures
Measures- -social
socialand
andenvironmental
environmentalaccounting
accountingtoolstoolsand
andenvironmental
environmentalimpact
impactmeasures
measures
calculate social and environmental
calculate social and environmental impactimpact
•Company
•CompanyStructure
Structureand andPolicies
Policies––clear
cleardelineation
delineationofofwhom,
whom,where,
where,and
andhowhowresponsibility
responsibilitywill
willbe
be
managed and how sustainability will be integrated into corporate governance
managed and how sustainability will be integrated into corporate governance structures structures
•Purchasing
•Purchasingand andSupply
SupplyChain
ChainInitiatives
Initiatives- -dialogue
dialoguewithwithsuppliers
suppliersononthe
theimportance
importanceofof
sustainability
sustainabilityininthe
thesupply
supplychain
chainwith
withtargets
targetsand
andperformance
performanceindicators
indicatorsset
setfor
foraffirmative
affirmativeaction
actionand
and
procurement practices that proactively support social and environmental
procurement practices that proactively support social and environmental stewardship stewardship
•Communications
•Communicationsand andDialogue
Dialogue- -corporate
corporatepublications
publicationsand andsocial
socialmedia
mediacancanbe
beused
usedtotocommunicate
communicate
the
the importance of sustainability as well as the organization’s position and practices on such toboth
importance of sustainability as well as the organization’s position and practices on such to both
internal and external stakeholders
internal and external stakeholders
•Employee
•EmployeeTraining
Trainingand andWorkshops
Workshops- -deliver
delivertechnical
technicalinformation
informationasaswell
wellasascompany
companyexpectations
expectations
about sustainability to employees
about sustainability to employees
•Company
•CompanyVisits
Visits- -learn
learnfrom
fromother
otherorganizations
organizationsthat thathave
havesuccessfully
successfullyimplemented
implementedsustainability
sustainability
initiatives
initiatives
•Employee
•EmployeeVolunteering
VolunteeringOpportunities
Opportunities- -opportunities
opportunitiestotoenable
enableemployees
employeestotocontribute
contributetheir
their
knowledge and skills to social and environmental projects and learn first-hand about
knowledge and skills to social and environmental projects and learn first-hand about their impact their impact

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