BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RANCHI

HUMAN RESOURCE MANAGEMENT

Assignment

Abstract
This document explains about Corporate Social Responsibility and Importance of Human Resource Management.

Ankit Kr. Agrawal

BE/10569/15
agrawl.ankit1295@gmail.com
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CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility (CSR) is a broad term used to describe a company’s efforts to
improve society in some way.

These efforts can range from donating money to non-profits to implementing

environmentally-friendly policies in the workplace.

CSR is important for companies, non-profits, and employees alike.

Corporate social responsibility is not a mandated practice in all countries; instead, it is

something extra that companies do to improve their local and global communities.

SOME EXMAPLES OF CSR

Google

For many people, their first exposure to a corporation working for “good” was related to
Google. The search giant has made aggressive moves on multiple fronts toward good
citizenship, but it is clear that, as one of the world’s largest corporations, every single effort is
paying off. For example, Google Green is a corporate effort to use resources efficiently and
support renewable power. But recycling and turning off the lights does more for Google than
lower costs. Investments in these efforts have real-world effects on the bottom line. Google
has seen an overall drop in power requirements for their data centres by an average of 50
percent. These savings can then be redirected to other areas of the business or to investors.

Xerox

The printing giant offers many programs supporting corporate social responsibility.
Their Community Involvement Program encourages it by directly involving employees.
Since 1974, more than half a million Xerox employees have participated in the program. In
2013 alone, Xerox earmarked more than $1.3 million to facilitate 13,000 employees to
participate in community-focused causes. The return for Xerox comes not only in community
recognition, but also in the commitment employees feel when causes they care for are
supported by their employers.
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Target

Very often the idea of “good corporate citizens” can seem like a concept that is completely
removed from our day-to-day realities. Sure, mega-corporations can have volunteer programs
or philanthropic arms that focus on big-picture issues, but that seems so highbrow. If that is
how you think, then take a look at Target. While many shoppers may think of it as just
another big-box retailer, Target is more than just a place to buy tires and milk, they are a
prime example of corporate social responsibility.

Since 1946, Target has been committing more and more effort and assets toward local and
environmental support for the communities in which they have stores. Over the past several
years, the company’s efforts—from growing sustainable practices to educational grants—
have amounted to 5 percent of its profit going to local communities. That’s $4 million each
week! In the area of education alone, Target has donated more than $875 million since 2010.

IMPORTANCE OF CSR IN A COMPANY

Corporate Social Responsibility, or CSR for short, is the idea that a company should be
socially involved with the environment around itself. This can range from engaging in non-
profit causes, to bettering the community, or creating stronger connections between
employees. Ultimately, a company’s CSR is established to increase overall engagement. It is
created to make employees, and employers, feel more connected with society. However, not
all companies can take the same approach at CSR. It is important for industries to know their
niche and what their employees want.
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BENEFITS OF CSR FOR THE ORGANISATION

1. IMPROVES PUBLIC IMAGE

Companies that demonstrate their commitment to various causes are perceived as more
philanthropic than companies whose corporate social responsibility endeavours are non-
existent.

A corporation’s public image is at the mercy of its social responsibility programs and
how aware consumers are of these programs.

Remember, consumers feel good shopping at institutions that help the community. Clean up
your public image (and broadcast it to the world!).

Corporations can improve their public image by supporting non-profits through

monetary donations, volunteerism, in-kind donations of products and services, and
strong partnerships.

By publicizing their efforts and letting the general public know about their philanthropy,
companies increase their chances of becoming favourable in the eyes of consumers.

2. INCREASES MEDIA COVERAGE

It doesn’t matter how much your company is doing to save the environment if nobody knows
about it.

Make sure you’re forming relationships with local media outlets so they’ll be more
likely to cover the stories you offer them.

How much good a company can do in its local communities, or even beyond that, is corporate
social responsibility? And the better the benefits, the better the media coverage.

On the other hand, if a corporation participates in production or activities that bring

upon negative community impacts, the media will also pick this up. Unfortunately, bad
news spreads quicker than good news.

Media visibility is only so useful in that it sheds a positive light on your organization.
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3. BOOSTS EMPLOYEE ENGAGEMENT

Employees like working for a company that has a good public image and is constantly in the
media for positive reasons.

Happy employees almost always equal better output.

Nearly 60% of employees who are proud of their company’s social responsibility are engaged
at their jobs.

When companies show that they are dedicated to improving their communities through
corporate giving programs (like matching gifts and volunteer grants!), they are more
likely to attract and retain valuable, hardworking, and engaged employees.

If a corporation is philanthropically minded, job-hunting individuals are more likely to apply

and interview for available positions. Once hired, employees who are engaged will stay with
a company longer, be more productive on a daily basis, and will be more creative than
disengaged workers.

4. ATTRACTS & RETAINS INVESTORS

Investors who are pouring money into companies want to know that their funds are being
used properly.

Not only does this mean that corporations must have sound business plans and budgets, but it
also means that they should have a strong sense of corporate social responsibility.

When companies donate money to nonprofit organizations and encourage their

employees to volunteer their time, they demonstrate to investors that they don’t just
care about profits.

Instead, they show that they have an interest in the local and global community.

Investors are more likely to be attracted to and continue to support companies that
demonstrate a commitment not only to employees and customers, but also to causes and
organizations that impact the lives of others.
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5. ABILITY TO HAVE POSITIVE IMPACT IN THE COMMUNITY

Keeping social responsibility front of mind encourages businesses to act ethically and to
consider the social and environmental impacts of their business.
In doing so, organisations can avoid or mitigate detrimental impacts of their business on the
community.
In some cases, organisations will find ways to make changes in their services or value chain
that actually delivers benefits for the community, where they once didn’t.

6. IT SUPPORTS PUBLIC VALUE OUTCOMES

Put simply, public value is about the value that an organisation contributes to society. A
sound, robust corporate social responsibility framework and organisational mind set can
genuinely help organisations deliver public value outcomes by focussing on how their
services can make a difference in the community.
This might happen indirectly, where an organisation’s services enable others to contribute to
the community, or directly through the organisation’s own activities, such as volunteerism
and philanthropy.

7. IT SUPPORTS BEING AN EMPLOYER OF CHOICE

Being an employer of choice typically translates into the company’s ability to attract and
retain high calibre staff. There are ways to approach being an employer of choice, including
offering work life balance, positive working conditions and work place flexibility.
Studies have shown that a robust corporate social responsibility framework can also help a
company become more attractive to potential future employees who are looking for
workplaces with socially responsible practices, community mindedness and sound ethics.

8. ENCOURAGES BOTH PROFESSIONAL AND PERSONAL

DEVELOPMENT
Providing employees with the opportunity to be involved in a company’s socially responsible
activities can have the benefit of teaching new skills to staff, which can in turn be applied in
the workplace.
By undertaking activities outside of their usual work responsibilities, employees have the
chance to contribute to work and causes that they might feel passionate about, or learn
something entirely new which can help enrich their own perspectives.
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By supporting these activities, organisations encourage growth and support for

employees.

9. ENHANCES RELATIONSHIPS WITH CLIENTS

A strong corporate social responsibility framework is essential to building and maintaining
trust between the company and clients. It can strengthen ties, build alliances and foster strong
working relationships with both existing and new clients. One way this can be achieved is by
offering pro-bono or similar services where a company can partner with not-for-profit
organisations to support their public value outcomes, where funds or resources may be
limited. In turn, this helps deliver public value outcomes that may not have been delivered
otherwise.

This isn’t to say that CSR is the panacea to the world’s problems. But it certainly
does start to move the needle toward an economy that is much closer to one
where I would like to conduct business.
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HUMAN RESOURCE MANAGEMENT

Human Resource Management is a function within an organisation concentrated on

recruiting, managing and directing people who work in it. Human Resource Management
deals with issues related to compensation, performance management, organisation
development, safety, wellness, benefits, employee motivation, training and others. HRM plays
a strategic role in managing people and the workplace culture and environment. If effective,
it can contribute greatly to the overall company direction and the accomplishment of its
goals and objectives.

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT:

Human resources are the valuable assets of the corporate bodies. They are their strength. To
face the new challenges on the fronts of knowledge, technology and changing trends in global
economy needs effective human resource management. Significance of HRM can be seen in
three contexts: organisational, social and professional.

The HR department teaches the organization how to utilize this human capital as well as the
non-human one and so, the organizations, who aim to efficiently utilize their resources and
increase the profit invite the HR management people to formulate required objectives and
policies

Strategic Management

HR improves the company's bottom line with its knowledge of how human capital affects
organizational success. Leaders with expertise in HR strategic management participate in
corporate decision-making that underlies current staffing assessments and projections for
future workforce needs based on business demand.
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Wages and Salaries

HR compensation specialists develop realistic compensation structures that set company

wages competitive with other businesses in the area, in the same industry or companies
competing for employees with similar skills. They conduct extensive wage and salary surveys
to maintain compensation costs in line with the organization's current financial status and
projected revenue.

Analyzing Benefits

Benefits specialists can reduce the company’s costs associated with turnover, attrition and
hiring replacement workers. They are important to the organization because they have the
skills and expertise necessary to negotiate group benefit packages for employees, within the
organization's budget and consistent with economic conditions. They also are familiar with
employee benefits most likely to attract and retain workers. This can reduce the company’s
costs associated with turnover, attrition and hiring replacement workers.

Safety and Risk Management

Employers have an obligation to provide safe working conditions. Workplace safety and risk
management specialists from the HR area manage compliance with U.S. Occupational Safety
and Health Administration regulations through maintaining accurate work logs and records,
and developing programs that reduce the number of workplace injuries and fatalities.
Workplace safety specialists also engage employees in promoting awareness and safe
handling of dangerous equipment and hazardous chemicals.

Liability Issues

HR employee relations specialists minimize the organization's exposure and liability related
to allegations of unfair employment practices. They identify, investigate and resolve
workplace issues that, left unattended, could spiral out of control and embroil the
organization in legal matters pertaining to federal and state anti-discrimination and
harassment laws.

Training and Development

HR training and development specialists coordinate new employee orientation, an essential

step in forging a strong employer-employee relationship. The training and development area
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of HR also provides training that supports the company's fair employment practices and
employee development to prepare aspiring leaders for supervisory and management roles.

Employee Satisfaction

Employee relations specialists in HR help the organization achieve high performance, morale
and satisfaction levels throughout the workforce, by creating ways to strengthen the
employer-employee relationship. They administer employee opinion surveys, conduct focus
groups and seek employee input regarding job satisfaction and ways the employer can sustain
good working relationships.

Recruitment and On boarding

HR recruiters manage the employment process from screening resumes to scheduling

interviews to processing new employees. Typically, they determine the most effective
methods for recruiting applicants, including assessing which applicant tracking systems are
best suited for the organization's needs.

Hiring Processes

HR professionals work closely with hiring managers to effect good hiring decisions,
according to the organization's workforce needs. They provide guidance to managers who
aren't familiar with HR or standard hiring processes to ensure that the company extends offers
to suitable candidates.

Maintaining Compliance

HR workers ensure that the organization complies with federal state employment laws. They
complete paperwork necessary for documenting that the company's employees are eligible to
work in the U.S. They also monitor compliance with applicable laws for organizations that
receive federal or state government contracts, through maintaining applicant flow logs,
written affirmative action plans and disparate impact analyses.

Recruitment and Training

This is one of the major responsibilities of the human resource team. The HR managers come
up with plans and strategies for hiring the right kind of people. They design the criteria which
is best suited for a specific job description. Their other tasks related to recruitment include
formulating the obligations of an employee and the scope of tasks assigned to him or her.
Based on these two factors, the contract of an employee with the company is prepared. When
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needed, they also provide training to the employees according to the requirements of the
organisation. Thus, the staff members get the opportunity to sharpen their existing skills or
develop specialised skills which in turn, will help them to take up some new roles.

Performance Appraisals
HRM encourages the people working in an organisation, to work according to their potential
and gives them suggestions that can help them to bring about improvement in it. The team
communicates with the staff individually from time to time and provides all the necessary
information regarding their performances and also defines their respective roles. This is
beneficial as it enables them to form an outline of their anticipated goals in much clearer
terms and thereby, helps them execute the goals with best possible efforts. Performance
appraisals, when taken on a regular basis, motivate the employees.

Maintaining Work Atmosphere

This is a vital aspect of HRM because the performance of an individual in an organisation is
largely driven by the work atmosphere or work culture that prevails at the workplace. A good
working condition is one of the benefits that the employees can expect from an efficient
human resource team. A safe, clean and healthy environment can bring out the best in an
employee. A friendly atmosphere gives the staff members job satisfaction as well.

Managing Disputes
In an organisation, there are several issues on which disputes may arise between the
employees and the employers. You can say conflicts are almost inevitable. In such a scenario,
it is the human resource department which acts as a consultant and mediator to sort out those
issues in an effective manner. They first hear the grievances of the employees. Then they
come up with suitable solutions to sort them out. In other words, they take timely action and
prevent things from going out of hands.

Developing Public Relations

The responsibility of establishing good public relations lies with the HRM to a great extent.
They organise business meetings, seminars and various official gatherings on behalf of the
company in order to build up relationships with other business sectors. Sometimes, the HR
department plays an active role in preparing the business and marketing plans for the
organisation too.
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Any organisation, without a proper setup for HRM is bound to suffer from serious problems
while managing its regular activities. For this reason, today, companies must put a lot of
effort and energy into setting up a strong and effective HRM.

An organisation cannot build a good team of working professionals without good Human
Resources. The key functions of the Human Resources Management (HRM) team include
recruiting people, training them, performance appraisals, motivating employees as well as
workplace communication, workplace safety, and much more.

References:

1. https://www.involvesoft.com/5-examples-of-socially-responsible-companies/
2. https://www.forbes.com/sites/csr/2012/02/21/six-reasons-companies-should-embrace-
csr/#17b8f5303495
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3. https://www.involvesoft.com/5-examples-of-socially-responsible-companies/
4. http://smallbusiness.chron.com/10-reasons-hr-important-organization-22424.html