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Exploring Human Resource Management Roles in Corporate Social Responsibility: The CSR-HRM Co-Creation Model
Exploring Human Resource Management Roles in Corporate Social Responsibility: The CSR-HRM Co-Creation Model
Formulating and translating corporate social responsibility (CSR) strategy into actual managerial practices
and outcome values remain ongoing challenges for many organizations. This paper argues that the human
resource management (HRM) function can potentially play an important role in supporting organizations to
address this challenge. We argue that HRM could provide an interesting and dynamic support to CSR
strategy design as well as implementation and delivery. Drawing on a systematic review of relevant strategic
CSR and HRM literatures, this paper highlights the important interfaces between CSR and HRM and
develops a conceptual model, the CSR-HRM co-creation model, which accounts for the potential HRM roles
in CSR and identifies a range of outcome values resulting from a more effective integration of the role of
HRM within CSR. The paper concludes with relevant theoretical and managerial recommendations that
advance our understanding of the potential interfaces between HRM and CSR and how HRM can support a
systematic and progressive CSR agenda.
doi: 10.1111/beer.12085
© 2014 John Wiley & Sons Ltd, 9600 Garsington Road,
125
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Oxford OX4 2DQ, UK and 350 Main St, Malden, MA 02148, USA
Business Ethics: A European Review
Volume 24 Number 2 April 2015
business sense more broadly (Mello 2011; Mondy & Strategic CSR literature
Mondy 2012). HRM is increasingly called upon to
create win–win outcomes for organizations and their The strategic CSR approach recognizes that the eco-
multiple stakeholders through better alignment with nomic benefits of organizations and the interests of
the mission and strategic direction of the organiza- society can be intertwined to achieve competitiveness
tion (Guest 2011; Wright & McMahan 2011). HRM within stakeholder and market segments (Carroll &
thus appears to be well positioned to be more Shabana 2010; McWilliams & Siegel 2011). Strategic
involved in helping firms to amplify their CSR efforts CSR comprises CSR initiatives that are intended to
and achieve worthwhile and substantive outcome improve the welfare of those in society and also to
values. contribute to organizations’ resources and competi-
With this broad framing in mind, we next present tive positioning (Du et al. 2010). The appeal of stra-
a review of the strategic CSR, strategic HRM, and tegic CSR cannot be easily discounted. The delivery
co-creation literatures. We then use this literature of shareholder value while also promoting societal
context to derive our proposition for the role of value is certainly desirable for organizations and this
HRM in CSR, which is depicted in our CSR-HRM is possibly why the strategic strand of CSR has gath-
co-creation model. The model highlights the ered momentum, with a large volume of studies
potential for HRM involvement in CSR during the exploring the potential benefits provided through a
conception and strategy setting phase, the implemen- strategic CSR alignment (Lockett et al. 2006;
tation phase, and follow-up/continuous improve- Orlitzky et al. 2011; Porter & Kramer 2011).
ment phase. Our proposed CSR-HRM co-creation Strategic CSR entails formulating CSR strategies
model thus helps advance our understanding of the that are aligned with the strategy of the firm and can
potential role of HRM in CSR within a strategic generate both short-term and long-term outcome
approach along the entire CSR lifecycle (i.e. from the values (Porter & Kramer 2011). One strategic CSR
point of CSR inception to outcome assessment). We framework proposed by Burke & Logsdon (1996)
conclude by offering practical recommendations that sets out five key dimensions for CSR initiatives that,
are relevant to both HRM and CSR managers in when strategically managed, can enhance competi-
advancing the CSR agenda and meeting growing tive advantage and performance outcomes (see
expectations for CSR (Collier & Esteban 2007; Figure 1). These include: (1) voluntarism or discre-
Fenwick & Bierema 2008; Brammer et al. 2012; tionary decision making in the absence of externally
Greenwood 2013). imposed compliance requirements; (2) centrality or
Figure 1: Strategic corporate social responsibility (CSR) and value creation (adapted from Burke & Logsdon 1996)
the design of CSR initiatives that have a close fit to Figure 2: Strategic corporate social responsibility (CSR)
the firm’s mission and objectives; (3) proactivity and shared value (adapted from Porter & Kramer 2006,
or the successful anticipation of emerging economic, 2011)
compensation, and communication and employee ship model has marked an important transformation
relations to generate mutually added value for both in the traditional assumptions and perceptions of
the organization and its various stakeholders. HRM’s roles and constituted a significant advance in
Inspired by the concepts of co-creation and the HRM research (Caldwell 2001; Ashton et al. 2004;
various strategic CSR models presented above, we CIPD 2011) (see Figure 4).
see the interaction between CSR and HRM and the In this model, human resource (HR) managers are
role of HRM in CSR as an opportunity to create expected to restructure the delivery of their services,
sustainable outcomes for the firm and its various focusing more on deliverables and outcomes. The
stakeholders. four outcomes that were advanced as being impor-
tant revolve around strategy execution, administra-
tive efficiency, employee contribution, and capacity
Strategic HRM literature for change. This is illustrated in the model in
Figure 4 through a focus on two main dimensions,
We also draw on the strategic HRM literature and namely processes and people, as well as the dimen-
more specifically on the HRM strategic partnership sions of future strategic focus and day-to-day opera-
model presented by Ulrich in 1997, with subsequent tional focus. The four outcomes resulting from the
developments in 2001 and 2005. The HRM partner- intersection of these axes correspond in turn to the
...................................................................................................................................................................
Table 1: Definition of HRM’s four roles (adapted from Ulrich 1997: 24)
Role Deliverable/outcome Metaphor role Activity
Management of strategic Executing strategy Strategic partner Aligning HRM and business strategy:
human resources ‘organizational diagnosis’
Management of firm Building an efficient Administrative expert Reengineering organization
infrastructure infrastructure functions: ‘shared services’
Management of employee Increasing employee Employee champion Listening and responding to
contribution commitment and employees: ‘providing resources to
capability employees’
Management of transformation Creating a renewed Change agent Managing transformation and
and change organization change: ‘ensuring capacity for
change’
HRM, human resource management.
...................................................................................................................................................................
value delivery. The strategic HRM partnership gration with organizational processes and systematic
model serves our quest in this paper as it supports us anchoring in human capital strategies and relation-
with the role contexts, objectives, applications, and ships with stakeholders (Carroll & Shabana 2010;
deliverables that we see best serve the synthesis and McWilliams & Siegel 2011). Accordingly, beyond
dynamics of the role of HRM in CSR. We see that nomenclature, what is crucially important in relation
these HRM roles constitute a practical and system- to CSR is to gain a better understanding of how
atically structured action dimension that could serve organizations interpret and translate CSR principles
CSR strategy design and implementation. This into managerial actions and practices through the
model guides HRM from the very early stage of CSR systematic leveraging of organizational resources,
strategy design all the way through implementation including human resources. This is where the contri-
with clearly defined role objectives and detailed areas bution of HRM to CSR could possibly be valuable,
of contributions, and this is what will be explained and any proposed role for HRM in CSR could
later especially in the section on CSR implementa- benefit from building on CSR’s implementation
tion and in Table 4. challenges and integration with business operations,
as well as mainstream mission and strategic objec-
tives as highlighted earlier.
CSR-HRM affinities and the notion We argue in this paper that throughout its func-
of co-creation tions and responsibility areas such as recruitment
and selection, training and development, perfor-
The increasing interfaces and convergence between mance management, rewards and compensation,
CSR and HRM have been noted in recent literature, talent management, career planning, and retention
although this area of research continues to be con- management, HR managers can provide much
ceptually underdeveloped (Buyens & De Vos 2001; needed support in the context of CSR. We are not
Zappalà 2004; Branco & Rodrigues 2006; Orlitzky & suggesting that HRM should exclusively take the
Swanson 2006; Wilcox 2006; Fenwick & Bierema lead or replace the role of CSR managers. Instead,
2008; Strandberg 2009; Ehnert & Harry 2011; we are examining how HRM can potentially contrib-
Greenwood 2013). An important question to be ute to CSR and how to better leverage the obvious
raised in this context is why make the case for pro- synergy between the two functions. While HRM has
posed roles for HRM in CSR and what added value traditionally been inwardly focused and CSR has
can HRM potentially bring into CSR? To answer traditionally been externally focused, the two func-
this question, we must go back to the fundamental tions overlap in terms of the key internal dimensions
understanding of CSR as a concept that needs inte- of CSR (Jamali et al. 2008). Examples include areas
such as employee motivation and engagement, and have direct relevance to HRM. The latter
ethical awareness and conduct, and social volunteer- includes employee involvement, fair and reasonable
ing activities, which could result in improved busi- rewards and conditions, a positive commitment to
ness outcomes that can have positive impacts for diversity and work–life balance, industrial relations
both internal and external stakeholders (Redington arrangements based on mutual respect, occupational
2005; Schoemaker et al. 2006; Greenwood 2013). health and safety arrangements, executive remunera-
Affinities between the two functions are increas- tion that is fair and equitable, independently verifi-
ingly noted and reflected in recent CSR standards, able performance measurement and evaluation
which explicitly refer to HRM components. systems, and training and development policies.
For example, many HRM-specific guidelines are Similarly, the HRM literature has recently alluded
included in the standards of the Global Reporting to the importance of CSR and the need for HRM
Initiative, a nonprofit organization that promotes scholars to accord systematic attention to CSR
reporting by organizations on their economic, envi- (Preuss et al. 2009; Mello 2011; Mondy & Mondy
ronmental, and social performance (see Table 2). 2012). The proposition here is that CSR and HRM
Another example is the Reputex Social Responsibil- theories have developed as two separate bodies of
ity Ratings – an Australian social responsibility mea- research and that there is a need for more systematic
surement. Two of its four categories (social impact research linking both strands of literature. HRM is
and workplace practices) reflect concern for people increasingly recognized as the function with unique
knowledge and skills to support and drive change in
people management practices and consider the
............................................................................. people implications of changes to strategy and poli-
cies (Strandberg 2009; CIPD 2011). This alignment
Table 2: Affinities between GRI indicators and HRM
needs to be systematically leveraged as we demon-
dimensions (adapted from Global Reporting
strate in this paper, particularly that the HRM func-
Initiative, 2011)
tion has well-developed capabilities, knowledge, and
GRI indicator HRM dimension skills in relation to employee engagement, organiza-
Labor practices and • Employment
tional learning, and culture change, which CSR
decent work • Labor/management relations
invariably needs. In addition, HRM and CSR share
performance • Occupational health and safety
indicators • Training and education a common concern with responsible employment
• Diversity and equal opportunity practices (Fenwick & Bierema 2008; Ehnert & Harry
2011) as well as individual and organizational
Human rights • Investment and procurement growth and revitalization (Collier & Esteban 2007).
performance practices This interest in the potential affinities of HRM and
indicators • Nondiscrimination CSR as presented in this paper is anchored in the
• Freedom of association and
concept of co-creation. Introduced in 2004 by
collective bargaining
Prahalad and Ramaswamy, co-creation is posited as
• Abolition of child labor
• Prevention of forced and a new and important advance in the field of innova-
compulsory labor tion (Hatch & Schultz 2010). Anchored in four foun-
• Complaints and grievance dational blocks, namely dialog, access, transparency,
practices and risk, co-creation expands opportunities for value
• Security practices creation by providing room for the inclusion of
• Indigenous rights various stakeholders in the value creation process
(Prahalad & Ramaswamy 2004). In other words, by
Society performance • Community
leveraging interactivity and deep engagement and
indicators • Compliance
providing transparent access to information,
co-creation can potentially alleviate risks or prob-
GRI, Global Reporting Initiative; HRM, human resource
management. ability of harm and maximize positive outcomes or
............................................................................. externalities associated with organizational action
(Prahalad & Ramaswamy 2004). Through its simple potential added value from an effective partnering
accentuation of the value of the active engagement of and integration of HRM and CSR in the form of
multiple functions and stakeholders in creating out- sustainable competitive outcome benefits.
comes that are mutually substantive and enriching
(Prahalad & Ramaswamy 2004; Lee et al. 2012), we
believe that co-creation has relevance well beyond The CSR-HRM co-creation model
the fields of branding and marketing.
We argue in this paper that the concept of There is significant potential for greater integration
co-creation has far-reaching strategic connotations of HRM and CSR in the context of a co-creation
because it focuses on the necessity of mutual engage- framework. The CSR-HRM co-creation model pro-
ment for creating added value and innovative orga- posed in Figure 5 reconciles and integrates the key
nizational outcomes. In this particular paper, we elements of the strategic CSR and strategic HRM
provide a concrete example of the co-creation literatures, which could result in sustainable out-
process, in relation to how CSR and HRM can comes or advantages for the organization and its
co-create values and outcomes that are meaningful internal and external stakeholders. The model maps
for organizations as well as their stakeholders. the HRM roles over three important milestones of a
Co-creation hence provides a guiding principle or typical strategic CSR lifecycle as suggested by
roadmap for the CSR-HRM co-creation model and Waddock et al. (2002), namely, (1) the inception and
the various propositions we make in the remainder strategy setting phase; (2) enacting CSR implemen-
of this paper. Our model highlights a range of pos- tation; and (3) engaging in learning and improve-
sible HRM roles and interventions and illustrates the ment through continuous assessment of outcomes
Figure 5: The CSR-HRM co-creation model. CSR, corporate social responsibility; HRM, human resource management
and adjustment of strategy making and implementa- voluntarily, and in alignment with the strategic
tion accordingly. mission of the organization.
We argue that the HRM strategic partner role is
particularly important in the CSR inception and
CSR strategizing and the role of HRM strategizing phase. In this respect, HRM can ensure
The first step is related to developing the strategic that CSR priorities and their human resource impli-
CSR vision, scope of activities, targeted stakehold- cations are part of leadership decision making.
ers, and desired objectives, which in turn shape the Acting in the capacity of strategic architect, HRM
possible leveraging of HRM capabilities and exper- needs to help diagnose and develop what is required
tise to support CSR objectives. Indeed, we posit that to derive CSR strategies that are meaningful, proac-
the nature of the CSR objectives is important in tive, and aligned with the mission of the organiza-
guiding the role of HRM in CSR. It could be that the tion. It needs to leverage its role in intelligence
CSR vision focuses mainly on the internal organiza- gathering and understanding of good people man-
tional environment, with a specific interest in raising agement practice to highlight the relevance of the
employees’ awareness of CSR, enacting a healthy CSR priorities identified from a business perspective,
work environment, and building an internal or exter- and identify the resources that will be needed for
nal volunteering culture. This type of CSR focus is their successful deployment. In their role as strategic
likely to be fundamentally different from, for partners, HR managers can thus contribute to defin-
example, environmental stewardship, which would ing the CSR vision, outlining the relevant CSR goals
require a different role for HRM. Thus, a strategic that meet the criteria of voluntarism, centrality, or
direction in relation to CSR is essential to guide the proactivity and identifying relevant stakeholders to
potential contributions of HRM in the context of the which the CSR strategy should be primarily tailored.
CSR-HRM co-creation model. There is clearly a role
for HRM to be proactively engaged in co-defining
the CSR strategy, mission, and objectives that best CSR implementation and the role of HRM
leverage the unique competencies and capabilities of The most critical area for the potential involvement
the firm while ensuring alignment with business out- of HRM in CSR corresponds to the domain of CSR
comes and objectives. implementation. This constitutes the core action
In particular, we see that there is an important dimension in our suggested CSR-HRM co-creation
supporting role for HRM, as a strategic partner, to model whereby we build on Ulrich’s (1997) frame-
ensure that CSR meets at least three of the key work, making use of the roles of strategic partner,
dimensions outlined by Burke & Logsdon (1996), change agent, employee champion, and administra-
namely (1) voluntarism or discretionary decision tive expert and their specific applications in relation
making; (2) centrality or the design of CSR initia- to CSR. As illustrated in Figure 5, each of these four
tives that have a close fit to the firm’s mission and HRM roles can be leveraged successfully in the
objectives; and (3) proactivity or the successful context of CSR implementation, to ensure that CSR
anticipation of emerging economic, technological, implementation is well supported, resonates with
social, or political trends in the absence of crisis. employees, and is integrated with internal working
Drawing on Porter & Kramer (2006, 2011), there is systems and policies.
also an important role for HRM in the inception All four HRM roles pertaining to strategic
phase in outlining how specific CSR objectives or partner, employee champion, change agent, and
initiatives can leverage the unique resources and administrative expert are particularly relevant in the
competence of the firm internally. Therefore, from implementation phase. Table 3 summarizes the
both the strategic CSR and strategic HRM perspec- domains of HRM’s added value in relation to
tives, it is clear that a successful partnership between various aspects of CSR implementation and poten-
HRM and CSR in the initial CSR inception phase is tially corresponding HRM roles (Buyens & De Vos
key. This should ensure that CSR strategies leverage 2001; Strandberg 2009; Ehnert & Harry 2011;
internal capabilities and are designed proactively, Greenwood 2013). This detailed illustration provides
...................................................................................................................................................................
Table 3: HRM’s added value roles in CSR (Buyens & De Vos 2001; Zappalà 2004)
HRM’s domains of contribution into CSR Role
Helps define and execute CSR Strategic partner
• Contributing to the development of CSR
• Suggest CSR scopes from HRM point of view
• Integrating CSR into HRM’s mission and functions
• Developing plans to gather information about CSR orientations from stakeholder
perspectives with specific focus on employees
Helps create CSR change Change agent
• Understanding how CSR change will affect other stakeholders (customers, investors,
community)
• Increasing employees’ sensitivity and readiness to interact with the change to incorporate
CSR
• Introducing initiatives that promote CSR objectives and overcome resistance to change
and other barriers
• Raising managers’ awareness to CSR change through training and development
Helps increase employee contribution to CSR Employee champion
• Increasing employee engagement and motivation for CSR
• Sharing and communicating the value of CSR to employees from early recruitment stages
to performance management to compensation and rewarding to retention plans
• Enhancing employee education and awareness about CSR
• Providing initiatives that help employees serve the community, such as social volunteering
programs
• Gathering/sharing information with employees in relation to CSR
• Celebrating successful CSR activities with employees
• Drafting and implementing employee codes of conduct
Helps deliver CSR efficiently Administrative expert
• Setting CSR performance indicators and monitoring results to performance objectives
within the HRM performance management system
• Dealing with social and legal issues associated with CSR practices once applicable from
an HRM perspectives and depending on HRM’s expertise and capabilities
• Measuring and reporting CSR performance and bottom line pay off through HRM devices
and assessment tools
• Measuring and reporting human capital metrics such as turnover, health and safety,
employee development, and diversity as part of wider social performance measurement
across the whole organization
CSR, corporate social responsibility; HRM, human resource management.
...................................................................................................................................................................
examples of where HRM can potentially play an vision, integrating CSR within HRM’s mission and
important role in relation to CSR by helping in functions, outlining the important CSR goals and
defining and executing some aspects of the CSR metrics, and identifying relevant stakeholders to
strategy, leveraging employees’ contribution into which the CSR strategy should be primarily tailored.
CSR, helping the organization in facilitating the A strategic partner role as discussed above assumes
CSR change, and aiding in the efforts to deliver CSR that HR managers can play an important role in
more efficiently. liaising with top leadership to drive forward and
In their role as strategic partners, HR managers reinforce the CSR agenda. As an extension of this
can potentially contribute to defining the CSR role, HRM can also give close and systematic
consideration to how to potentially align people monitor and collect feedback on results. Working as
management practice in such a way to benefit both administrative experts, HR managers can therefore
HRM and CSR strategies in amplifying value added help manage the infrastructure of CSR planning and
and potential outcomes for both partners and for the execution to deliver effective and efficient support
business as a whole. for CSR goals with the required HRM functions and
The change agent role is also crucial in the CSR roles.
implementation phase and is an important area We further argue that HRM can contribute to
where HRM could contribute directly. In this sense, CSR through its capabilities and expertise in HRM
HRM can potentially play a strategic role in raising functions, including training and development,
employees’ awareness and readiness for any mana- recruitment and selection, performance appraisal,
gerial and cultural changes associated with imple- and compensation (Orlitzky & Swanson 2006). This
menting CSR within the organization. Engaging is illustrated in Table 4, which highlights the ability
employees and raising their sensitivity and knowl- of HRM to allocate and build the required resources
edge about the strategic CSR vision of the organiza- and capabilities that enhance various aspects of CSR
tion are extremely important to enable them to adapt execution. For example, within the recruitment and
and contribute to the CSR change. Additionally, selection domain, HRM can add value through
embedding CSR into the culture of the organization attending to workforce diversity and hiring employ-
is ultimately an example of a complex change man- ees who have specific personality traits. Within the
agement process involving considerable skill at performance appraisal domain, HRM can use its
understanding the change involved, increasing knowledge and capabilities and contribute to CSR
employee readiness, and coaching employees and and add value through formulating criteria based on
managers. both economic and social performance objectives.
The employee champion role is also very impor- Within the domain of compensation, HRM can add
tant from a CSR perspective. Here, we suggest that value through designing a pay system that rewards
HRM can potentially play an instrumental role in and recognizes both economic and social perfor-
increasing employees’ motivation, engagement, and mance, as well as rewarding employees for their par-
commitment to CSR. Employee contribution in CSR ticipation in social volunteering activities. Within the
activities could be more systematically leveraged training and development domain, HRM can add
through listening to their views about the CSR strat- value through developing employees’ skills in effec-
egy of the organization and engaging them as part- tive stakeholder engagement and communication.
ners in the CSR change process. HR managers can These interventions, which fall within the domain of
also strengthen the relationship between the organi- HRM, can ensure the alignment of incentives and
zation and its employees by providing opportunities processes with espoused CSR goals/objectives.
for employees to express their views in relation to
CSR. When employees feel that their contribution is
recognized, valued, and rewarded, their willingness CSR evaluation and the role of HRM
and commitment to achieve CSR goals are likely to In an environment where both CSR and HRM are
increase. increasingly value driven and being held accountable
In their role as administrative experts, HR manag- for outcomes, it is important to accord systematic
ers can also potentially assist the organization to attention to the expected outcomes from the integra-
define the required HRM infrastructure and capa- tion of the two functions. Assessing potential out-
bilities for driving efficient CSR strategy delivery. comes also helps complete the learning and
For example, HR managers can prepare to deal with improvement process discussed by Waddock et al.
any social and legal issues associated with CSR and (2002) through evaluating not only potential out-
monitor and report on core internal CSR dimensions comes but also feeding the main highlights of the
such as diversity, equal opportunity, and occupa- assessment process into the next phase of the strate-
tional health and safety issues. HR managers can gic CSR cycle as illustrated in Figure 5. Various
accordingly set some standards for expectations and studies have examined relationships between HRM
...................................................................................................................................................................
Table 4: CSR embedded in HRM practices
HRM practices
Recruitment and Performance Reward and Training and
selection appraisal compensation development
CSR embedded in Hiring new recruits Defining performance Rewarding employees Training and raising
HRM practices capable of based not only on for behaviors employees’
contributing to CSR outcomes and consistent with CSR awareness to CSR,
Screening new recruits results but also on values to motivate for example,
with knowledge and social objectives them and sustainability
awareness and Include service to emphasize the practices such as
appreciation for community and importance of CSR green practices and
CSR participation and to the organization recycling inside as
Hiring new recruits involvement and Preparing tangible and well as outside the
capable of contribution to social intangible rewards organization
contributing to CSR initiatives as part of for employees’ Holding regular
and, for example, the performance participation in CSR seminars and
with previous appraisal and link it Preparing incentives workshops on CSR
experience in to rewards such as that promote social and linking some
volunteering bonuses goals incentives and
activities Follow up with Communicating such rewards to
Include questions and employees on CSR schemes with employees’
case studies about and include CSR external participation in them
CSR within the action plans and stakeholders to Training programs and
interview stages with motivate employees enhance the skills development
candidates to engage more in company’s could be for both
Include sections on CSR during regular reputation and lower and higher
CSR activities in performance market employee levels
employee handbook evaluation meetings attractiveness Invite NGO
and orientation Allow employees to representatives to
programs contribute to share experience
formulating CSR with employees in
performance relation to common
indicators and CSR projects
involve them in CSR
projects
CSR, corporate social responsibility; HRM, human resource management; NGO, nongovernment organization.
...................................................................................................................................................................
and performance outcomes (e.g. Becker & Huselid As a concept, the RBV has been introduced and
1999; Buckley et al. 2001) or CSR and performance developed to describe how managing organizational
outcomes (Orlitzky et al. 2011), although very few resources strategically can generate sustainable com-
studies have pondered the potential outcomes that petitive advantages for the firm (Barney 1991). The
could result from an effective integration of CSR inception of the RBV approach contributed in turn
and HRM and their implications for competitive to supporting the strategic HRM literature and its
advantage. conceptual development (Colbert 2004; Becker &
Particularly in evaluating and assessing the value Huselid 2006; Boxall & Purcell 2008; Guest 2011). In
of the role of HRM in CSR, we argue that a a way, the RBV logic justifies expenditures in HRM
resource-based view (RBV) lens together with prin- areas such as training and development, talent
ciples of co-creation could be useful in this respect. management, and employee involvement systems
because it demonstrates that investments in these tion about the justice and fairness of the organiza-
internal resources that are valuable, scarce, non- tion. In return, this can impact employees’
substitutable, and inimitable provide positive returns attitudes, behaviors, satisfaction, and productivity.
on investment and outcome benefits that are appro- We argue here that HRM’s role in CSR could
priable (Barney 1991). HRM as an internal manage- potentially be of high significance on the individual
rial function can be considered as a source of level of CSR as explained by Aguilera et al. (2007).
competitive advantage using the same logic (Wright Socially responsible HRM practices and the inte-
et al. 2001). We extend this further in our paper by gration of CSR principles with HRM practices and
making the argument that HRM and through the systems (as explained earlier) respond to employees’
four roles outlined has an important strategic role to CSR expectations and could thus potentially con-
play in creating the supporting conditions under tribute to building positive employee behaviors and
which an organization’s CSR mission, objectives, attitude. As a result, this might affect organization-
and implementation can be considered a valuable ally relevant outcomes such as employee commit-
resource and the successful integration of HRM and ment, job performance, and citizenship behavior.
CSR can lead to long-term sustainable advantage HRM promotes and communicates CSR actions
and positive outcome values that are appropriable. and principles with employees so to increase their
Interestingly, an RBV lens can thus help us gauge CSR awareness and engagement and thus their
the sustainable, social, and ethical benefits and perceptions about how their organization is
resources that the role of HRM in CSR brings to being socially responsible both internally and
the organization (Litz 1996; De La Cruz externally.
Deniz-Deniz & Saa-Perez 2003). Improvement in Similarly, Brammer et al. (2007) and Glavas &
CSR and accumulating lessons from experiences Piderit (2009) report that employees are more
can lead to competitive advantages in the sense of a engaged and committed and develop higher quality
firm implementing and reaping the benefits of a relationships and are more creatively involved when
value creating strategy not currently implemented they perceive their company to be socially respon-
by competitors (Barney 2001). While the external sible. Rego et al. (2010) also found that employees’
dimensions for CSR are easy to imitate and repli- perceptions in relation to the CSR orientations of
cate, we argue that it is the internal dynamics their organizations predict their affective commit-
deployed through an effective integration with ment. We argue that there is an important role for
HRM that can create outcomes that are difficult to HRM in CSR and employee commitment to the
duplicate and imitate and hence provide sources of organization and that both HRM and CSR con-
sustainable competitive advantage. We take this verge around these common goals and outcomes
important point to suggest that the effective align- within a co-creation framework. We further argue
ment of HRM and CSR can result in sustainable that it is precisely through these dynamics that CSR
outcome values and benefits for the organization evolves into a fully fledged and differentiated capa-
and that it is the internal aspects/dynamics of this bility and sustainable competitive resource for the
integration that seem most important. organization.
By way of an example, the CSR actions and Other important outcomes resulting from better
culture of change as translated by HRM strengthen integration of HRM and CSR are those relating to
the bond between employees and their organiza- heightened ethical sensitivity and awareness and
tions, especially on the normative and affective increased trust and loyalty to the organization.
levels. Commitment to the organization and to a Ethics has already been recognized as a source of
common social identity that we argue HRM can sustainable competitive advantage (Litz 1996) and
potentially champion and foster can certainly be the affinities between ethics and CSR are well docu-
amplified through an internally institutionalized mented in the literature (Ehnert & Harry 2011;
CSR agenda. In their study, Aguilera et al. (2007) Greenwood 2013). Nurturing both ethical and CSR
demonstrate how the social responsibility actions awareness provides reassurance to customers, share-
that organizations enact affect employees’ percep- holders, and investors (Brammer et al. 2012) and
helps in sustaining trustworthy relations with market of the organization. The role, voice, and expertise
and nonmarket stakeholders. Positive stakeholder of HRM are important in both setting the tone and
relationships reduce in turn transaction costs, build facilitating the implementation of the CSR agenda.
reputational capital, and enhance long-term sustain- The real challenge for many organizations going
able and competitive advantage (Fombrun et al. forward is to further involve HRM in CSR and
2000). There is thus a range of worthwhile outcomes account systematically for the outcome benefits
that could result from a more effective integration of produced. HRM, in other words, has a real oppor-
HRM and CSR and provide organizations with sus- tunity to play a role in embedding a socially
tainable advantages over time, ranging from increas- responsible approach in the organization, helping
ing employee commitment and motivation (Collier & to operationalize CSR into policies, processes, and
Esteban 2007) to bolstering trust and loyalty on the practices and translate it into concrete and mutu-
part of internal and external stakeholders (Litz ally reinforcing outcomes.
1996). These worthwhile outcomes are valuable for Our paper contributes to both HRM and CSR
HRM, CSR, and the business as a whole and are literatures. In relation to the HRM literature, the
likely to help the organization gain visibility in the paper provides many examples of how the strategic
eyes of internal and external stakeholders and also HRM partnering model can be operationalized and
enhance specificity by helping to capture or internal- put into practice, taking the example and application
ize the benefits of CSR programs as suggested by of CSR as a case in point. In this respect, while the
Burke & Logsdon (1996). Ulrich (1997) model has been posited as a successful
innovation, there have been very few examples of
how it can be applied in practice. In relation to the
Concluding remarks CSR literature, our paper draws attention to the
internal dimensions and the micro-foundations of
The CSR-HRM co-creation model builds on the syn- CSR that have hitherto not been accorded sufficient
ergies between CSR and HRM and is mainly con- attention in the literature. Our paper makes a strong
cerned with presenting a rationale and structured case that a primary or exclusive focus on the external
approach for their cross-fertilization and integration. manifestations of CSR is not sufficient and that the
This is consistent, as we argue, with the notion of external orientation needs to be anchored in a strong
co-creation, which expands opportunities for value internal foundation. It is precisely this foundation
creation by providing room for the inclusion of and its internal dynamics that can turn CSR into a
various stakeholders in the value creation process. competitive capability and a sustainable source of
We demonstrate in this paper that co-creation has competitive advantage.
relevance in the specific context of CSR and HRM This latter idea that CSR can be a strategic capa-
integration. By leveraging better interactions and bility, when properly embedded in the firm and sup-
engagement between those two traditionally com- ported by a strong HRM function, constitutes yet
partmentalized functions and providing transparent another important contribution of this paper. While
access to information, co-creation can help produce a the external manifestations of CSR are easy to
range of substantive outcomes that have relevance imitate by competitors, it is the tacit and causally
and importance to CSR, HRM, and the business as a ambiguous internal dynamics and patterns of team-
whole (including a variety of internal and external work and coordination in strategizing and enacting
stakeholders). CSR that are likely to be the differentiating elements
The CSR-HRM co-creation model constitutes a and provide a source of sustainable competitive
robust, original contribution that highlights the innovation as suggested through an RBV perspec-
links between CSR and HRM and emphasizes the tive. HRM has a very important role in bolstering
sustainable outcome benefits that can result from the internal foundations of CSR and facilitating the
their effective integration. HRM is argued to have a specific internal CSR dynamics as illustrated through
strategic role in bolstering the CSR agenda and the varied examples provided in Tables 3 and 4. To
aligning it with the strategic vision and aspiration use RBV reasoning and a co-creation approach, the
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Dima R. Jamali (PhD, University of Kent at Canter-
Prahalad, C.K. and Ramaswamy, V. 2004. ‘Co- bury) is a professor of Management at the American
creation experiences: the new practice in value cre- University of Beirut and holds the Kamal Shair
ation’. Journal of Interactive Marketing, 18:3, 5–14. Endowed Chair in Responsible Leadership. Her
Preuss, L., Haunschild, A. and Matten, D. 2009. ‘The research interests focus on responsible leadership
rise of CSR: implications for HRM and employee and corporate social responsibility in developing
countries in general and the Middle East in particu- paper award in the Irish Academy of Management
lar. Her articles have appeared in journals such as (IAM) annual conference 2011 in Dublin, Ireland.
British Journal of Management, Business Ethics
Quarterly, and Journal of Business Ethics among Ian A. Harwood (PhD) is an associate professor in
others. Her recent book on CSR in the Middle East Management. With an industrial background in
has been published by Palgrave in 2012. managing strategic change programs and process
improvement projects, his doctoral thesis explored
Ali M. El Dirani (PhD, University of Southampton) the role of risk in post-merger and acquisition inte-
is a lecturer in Management at the American Univer- gration. Ian’s continuing research interests are
sity of Science and Technology, Beirut, Lebanon. broadly in project management, general manage-
His research focuses on corporate social responsibil- ment, and qualitative research methods (especially
ity (CSR) and human resource management (HRM), grounded theory). He has published in the British
and his doctoral thesis explored the role of HRM in Journal of Management, Journal of Business
CSR. He has publications in this field, including Ethics, Journal of Risk Research, European Manage-
book chapters on CSR, HRM, workplace integrity, ment Journal, International Journal of Project Man-
and diversity. He has presented many peer-reviewed agement, and International Small Business Journal
conference papers and he is the winner of the best among others.