The steady rise of CSR and diversity in the

workplace
Mike Emmott and Dianah Worman
Abstract
Purpose The purpose of this article is to showhowtwo specialist advisers fromthe Chartered Institute
of Personnel and Development (CIPD) provide practical advice on corporate social responsibility (CSR)
and diversity.
Design/methodology/approach The article includes two best practice guides based on the
experience and quantitative and qualitative research of the CIPD. The rst half focuses on CSR, what it
means in the workplace and howHR professionals can implement or encourage its take up in a strategic
and meaningful way. The second half tackles diversity, explaining its role in the workplace and its
importance to HR professionals in helping organizations gain competitive advantage.
Findings The strategic importance of both issues provides HR with an opportunity to demonstrate its
strategic value to the organization. People policies and people management are at the heart of CSR and
diversity.
Originality/value CSR and diversity are similar, in that they both have to be approached with serious
intent that results in effective delivery. Purely paying lip service, or poor implementation, is most likely to
have negative implications for the business. There are also differences between the two, a key one being
that there are best practice approaches to guide HR professionals in approaching CSR, whereas
diversity is a more complex concept that relies on approximate reasoning.
Keywords Corporate social responsibility, Governance, Equal opportunities
Paper type Research paper
People policies key to CSR success
CSR has grown in importance over the last number of years and is likely to continue to move
up the corporate agenda. It is all about corporate governance and companies operating in
an ethical manner that takes into account their impact on economic, social, environmental
and human rights issues. This wide responsibility expands the business boundary beyond
the traditional internal and external stakeholders of employees, customers, suppliers and
competitors, to also include local communities and global responsibilities, and it often
requires a partnership approach with external organizations and internally in order to gain
buy-in. There are many drivers behind the rising importance of CSR; public awareness has
been aroused by scandals such as large brands acquiring goods from overseas suppliers
with inhumane labor policies, while employer interest is driven by demand from customers,
employees, regulatory bodies, campaigning organizations and the general public for more
accountability for business impact on society.
On rst glance CSR may seem onerous. However, the required partnership approach does
in fact open up opportunities for organizations that think laterally about their relationships
and how they can contribute to the bottom line. Approached proactively, CSR leads to
competitive advantage, for example through enhanced company reputation, increased
credibility or trust in the brand, increased employee engagement and improved talent
attraction and retention.
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Mike Emmott and
Dianah Worman are both
based at CIPD, London,
UK.
In order to reap such benets, strategic management of CSR is required and HR
professionals are in the ideal position to create, implement and monitor the people policies
that will promote such a partnership approach. Such policies may incorporate internal
communication, diversity, training, recruitment or inducting all of which may need to be
reviewed to support strategic CSR strategies. Research shows that CSR can become an
instrument of change in an organizations behaviors, attitudes and performance and this is
where the HR function can make its greatest contribution to the success of CSR initiatives.
CSR and the HR opportunity
For CSR to be a success, it must become embedded throughout the organization so that it is
incorporated in everything that the company and its employees do. Stakeholders will look for
delivery rather than rhetoric and HR has a large role to play in ensuring CSR is more than just
a PR exercise.
HR can take a strategic role in helping to change an organizations culture so that behaviors
and actions reect its CSR focus. Inuencing behavior and culture is already part of the HR
role and it can act as a true strategic partner by using its cross-company links to embed CSR
initiatives. Effective delivery can be achieved by weaving CSR into effective systems and
processes, such as the employer brand, recruitment, appraisal, retention, motivation,
reward, internal communications, diversity, coaching and training.
There are some risks to HRs involvement in CSR. It is crucial that HR ensures that the
organizations CSR strategy holds up to scrutiny, that it is truly embedded throughout the
organization and the actions of its employees, and that it has the support of the top team.
Lost trust in a CSR program is hard to regain so it is important to get it right rst time. This
means HR must actively work with other functions and play a business partner role. To be
successful, CSR needs dynamism, creativity, imagination and opportunism.
The following steps should be considered by HR when taking a lead in developing CSR in
the organization (CIPD factsheet, 2007a):
1. Clarify your core values and principles.
2. Make sure you know who your key internal and external stakeholders are and the issues
that affect your relationship with them.
3. Get the top team on board, and know how to sell the benets of CSR to different
stakeholders.
4. Understand how the CSR strategy is aligned to your business strategy and HR practices.
5. Get endorsement for the CSR strategy from inside and outside your organization.
6. Communicate consistently.
7. Focus on training CSR will only have an impact if employees are engaged; attitudes or
behavior will not change otherwise.
8. Effectively measure and evaluate CSR, otherwise the time, effort and money invested are
based on assumptions, not results. A balanced scorecard is one method that can be
used as it allows for the different types of factors that contribute to an organizations
bottom line.
The CSR competency framework
CIPD worked with the UK governments Department of Trade and Industrys CSR Academy
to develop a CSR Competency Framework, which was rst launched in 2004. This is a
template to help managers understand CSR and integrate it into their organizations. It
identies the following six characteristics as underpinning effective CSR:
1. Understanding society. Understanding the role of each player in society, including
government, business, trade unions, non-governmental organizations and civil society.
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2. Building capacity. Forming external partnerships and creating strategic networks and
alliances.
3. Questioning business as usual. Being open to new ideas, challenging others to adopt
new ways of thinking and questioning business as usual attitudes.
4. Stakeholder relations. Identifying stakeholders, building relations externally and
internally, engaging in consultation and balancing demands.
5. Strategic view. Taking a strategic view of the business environment.
6. Harnessing diversity. Respecting diversity and adjusting the approach to different
situations.
This framework could provide the blueprint for creating and implementing a CSR strategy
aligned to business needs. A key conclusion from CIPD case study research is that both CSR
and HR activities can be major contributors to long-termbusiness success (Redington, 2005).
Employees are key stakeholders to be considered in any CSR initiatives and people policies
are key to implementation the people management dimension of CSR cannot be ignored.
Harnessing the value of diversity
People are different and this diversity consists of a range of characteristics, such as gender,
race, disability, religion, belief, sexual orientation and age, as well as personal
characteristics, such as work style, personality and culture. Harnessing these differences
in the workplace can result in a productive environment in which everyone is valued and their
talents are fully utilized and, as a result, organizational goals are met. CIPD denes diversity
as valuing everyone as an individual and, in line with this, there is no single way to treat all
employees. Each person is different and has their own needs, values and beliefs, but
everyone wants to feel recognized and appreciated for what they do when they dont,
research shows that individual performance is reduced.
Equality legislation has been a key driver for progress and many laws have been introduced
over the last 30 years to develop a level playing eld to improve opportunities for people who
are disadvantaged because of commonly experienced issues that create group interests,
for example, minority ethnic characteristics, gender and disability. But the law in this eld is
highly complex and in the UK, for example, there has been pressure on government to
introduce a simplied single statute. On a national level consultation on this took place in
2007 and at the time of writing this article government had not announced its intentions.
Over the years experience has inuenced thinking about equality of opportunity signicantly
and it is increasingly recognized that approaches need to be more inclusive to address
diversity issues. In parallel with this, business research was beginning to show the business
benets of diverse teams, adding the business case to already strong human rights and
social justice arguments.
Diversity in the HR realm
The CIPD believes that recognizing and valuing diversity is central to good people
management practices and that HR professionals have a key role to play in creating
inclusive workplaces in which everyone can contribute to achieving organizational goals.
The business case is compelling and evidence indicates that organizations that are serious
Research shows that CSR can become an instrument of
change in an organizations behaviors, attitudes and
performance.
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about diversity show better overall nancial performance. Therefore organizations need to
look beyond legislative requirements and take a value-added approach, releasing the value
of people to gain competitive advantage. This means creating diversity strategies that will
support business goals and contribute to business performance. Purely paying lip service is
not just inadequate, but can cause damage to reputation through false promises.
People management is one area in which an organization serious about diversity can gain
competitive advantage. CIPD research on the psychological contract shows that people
aspire to feel valued at work and to work for employers with good employment practices. The
battle for talent and skills is forcing businesses to recruit from more diverse pools of people
and to offer new and creative employment packages and working arrangements. This
creation of a more open and inclusive culture can result in the following benets:
B employers who offer good working conditions benet from more positive and committed
employees, who are less likely to leave;
B employees who are happier at work are less likely to suffer from stress or become sick,
leading to fewer disruptions in production or service;
B good employers will receive more applications for jobs, leading to a larger pool of talent to
choose from; and
B a diverse workforce will be more creative and innovative.
Diversity policies also help organizations to:
B quality assure policies and working practices because diversity ts well with business
excellence models and initiatives such as Investors in People and total quality management;
B create an environment in which people from all backgrounds can work together
harmoniously by combating prejudice, stereotyping, harassment and undignied and
disrespectful behavior; and
B bring about cultural change.
Other areas in which competitive advantage can be gained are market competitiveness and
corporate reputation. A diverse workforce can contribute towards new or enhanced product
development, open up market opportunities, improve market share and broaden the
customer base. From a corporate reputation point of view, businesses that consider CSR in
the context of diversity, as well as other CSR issues, will enhance their reputation among
stakeholders. It is clear that diversity offers many business advantages if strategically
approached and HR professionals have the expertise and position to drive diversity forward
in such a way as to gain competitive advantage for the organization.
Moving forward with diversity
Managing diversity is all about making sure employees have the opportunity to maximize
their potential, enhance their self-development and achieve their best in the jobs they do. It is
important to take into account organizational circumstances, aims and objectives and to
tailor approaches to progressing diversity in order to make sure they are relevant and deliver
success. As stated earlier, while there is no single, simple solution, there are guiding
principles relating to good practice that employers should adopt.
Managing diversity is a complex values-based continuing process of change and
improvement. Research evidence points to the need for it to be driven from the top. The aim
should be to develop an open workplace culture where everyone is valued and where
diversity issues inuence and inform all employment policies and working practices.
The following guiding principles should help employers to drive change (CIPD factsheet,
2007b).
Overall strategy
B ensure that initiatives and policies have the support of the board and senior
management;
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B remember that managing diversity is a continuous process of improvement, not a
one-off initiative;
B develop a diversity strategy to support the achievement of business goals, including
ways of addressing the diverse needs of customers;
B focus on fairness and inclusion, ensuring that merit, competence and potential are
the basis for all decisions about recruitment and development;
B keep up to date with the law and review policies through checks, audits and
consultation;
B address work-life balance challenges in ways that take account of employee and
organizational needs and offer suitable choices and options;
B encourage ownership and discourage risk aversion, aiming to create an empowering
culture so that decisions are not passed upwards without good reason;
B design guidelines for line managers to help them respond appropriately to diversity
needs, as they are vital change agents, but give them scope for exible
decision-making;
B link diversity management to other initiatives such as Investors in People and total
quality management; and
B be aware that if your organization operates internationally, its approach to managing
diversity will need to take account of the ways that individual working styles and
personal preferences are inuenced by national cultures.
Workplace behavior
B introduce a value system based on respect and dignity for all;
B aim to describe the desirable behaviors to gain positive commitment;
B make clear that everyone has a personal responsibility to uphold the standards; and
B introduce mechanisms to deal with all forms of harassment, bullying and intimidating
behavior, making clear that such behavior will not be tolerated and setting out the
consequences of breaking the organizations behavior code.
Communication
B develop an open culture with good communication channels based on open
dialogue and active listening;
B use different and accessible methods such as newsletters, in-house magazines,
notice boards and intranets to keep people up to date with diversity policies and
practices; and
B consult people for ideas.
Training
B build diversity concepts and practices into management and other training and
teambuilding programs to increase awareness of the need to handle different views,
perceptions and ideas in positive ways;
A diverse workforce can contribute towards new or enhanced
product development, open up market opportunities, improve
market share and broaden the customer base.
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B consider awareness-raising programs about diversity and skills training to help
people work together better in a diverse environment;
B include diversity issues in induction programs so that all new employees know about
the organizations values and policies; and
B train line managers about diversity, aiming to help them understand the issues and
drive them into organizational and operational policies and practices.
Measurement
B regularly audit, review and evaluate progress and keep qualitative data to chart
progress and show business benets;
B use employee surveys to evaluate initiatives, to nd out if policies are working for
everyone, and to provide a platform for improvement;
B track actions to see if they have had the intended results and make appropriate
changes if necessary;
B include diversity objectives in job descriptions and appraisals, and recognize and
reward achievement;
B benchmark good practice against other organizations and adopt and adapt relevant
ideas where appropriate;
B network with others from inside and outside your organization to keep up to date and
to share learning; and
B celebrate successes and identify learning opportunities from failures, to use them as
building blocks for further progress.
A coherent diversity strategy is required so that it is reected in all policies and working
practices. This gives HR the creator and maintainer of such policies and practices the
opportunity to help the organization gain the full benets of diversity, including the business
benets of competitive advantage.
References
CIPD factsheet (2007a), Corporate Social Responsibility, CIPD, London.
CIPD factsheet (2007b), Diversity: An Overview, CIPD, London.
Redington, I. (2005), Making CSR Happen: The Contribution of People Management, CIPD, London.
About the authors
Mike Emmott is CIPD adviser, employee relations. His specialist interests are employee
relations and employment law and recent projects include surveys of the HR function and
employers responses to exible working. He is responsible for CIPDs Employee Attitude
survey and analysis of the psychological contract, with other current work focuses including
exible working, HR involvement in the public sector and corporate social responsibility. He
is the corresponding author and can be contacted at: m.emmott@cipd.co.uk
Dianah Worman OBE is the adviser on diversity for CIPD. She directs the Institutes diversity
research programand leads the development of good practice guidance on diversity to help
employers make progress in this challenging and complex eld. She also leads the
Institutes public policy work on diversity. She serves on national level advisory boards in
connection with research and the promotion of good diversity practice.
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