Chapter 8

Social Responsibility and Human Resource

Management

The review of popular definitions during the last decades shows that almost all
corporate social responsibility (CSR) definitions emphasize a social dimension by
mentioning social stakeholders or responsibilities towards them. Recalling the
United Nations’ (UN) sustainable development goals (SDGs), the responsibilities
towards social stakeholders are essential for all business organizations. As one of
these social stakeholders, employees and their rights are clearly indicated under
Goal-8: Decent work and economic growth. In line with this overarching goal,
employees must be at the top of CSR agenda in any organization.
Since employees are the primary stakeholders of companies, CSR perception can
be built around the contributions of companies to their current and prospective
workforce. The findings of a large scale CSR survey on 27 European Union (EU)
member states reveal that while job creation (57%), contributing to economic growth
(32%), and providing training to employees (31%) are considered as the most
positive impacts of companies over society, corruption (41%), reducing staff
(39%), and environmental pollution (also 39%) are at the top in the list of most
negatively affecting variables (Flash Eurobarometer 2013). Today, company’s
human resources management (HRM) and its alignment with CSR is closely mon-
itored by overall public and media. The increasing societal expectations and pres-
sures affect to the degree and intensity of CSR towards employees. A survey on a
sample of Belgium companies measures to what extent the companies perform at six
themes of CSR (human resources, human rights, environment, customers and
suppliers, community involvement and corporate governance) and the authors find
that the highest number of companies are active in human resources (Louche et al.
2009). This result, which shows the centrality of HRM in CSR construct in Belgium,
is not a surprise when considering the tradition of union activism in this country
(Heene et al. 2005).
HRM and CSR are closely interrelated with each other at least in two domains.
While taking better care of their employees and improving the conditions and well-
being is core element at a company’s social responsibility approach, CSR towards
other stakeholders, such as customers, can manifest itself at the behaviors of

© Springer International Publishing AG, part of Springer Nature 2018 131

D. Turker, Managing Social Responsibility, CSR, Sustainability, Ethics &
Governance, https://doi.org/10.1007/978-3-319-91710-8_8
132 8 Social Responsibility and Human Resource Management

employees (Bučiūnienė and Kazlauskaitė 2012, 6). Particularly in the service sector
businesses, like the one in hospitality industry, happy employees are necessary for
happy customers; however, making employees happy requires to treat them as team
members, provide them training opportunities and give them the tools and policies
for doing their job (Garlick 2010). Therefore, HRM should be embedded into the
overall CSR approach of an organization.
The review of literature shows that being a socially responsible employer posi-
tively affects some important employee outcomes (Aguilera et al. 2007; Brammer
et al. 2007; Peterson 2004; Turker 2009). On the other hand, organizations that have
a more developed HRM, have also better CSR policies, which in turn affect the
organizational and financial performance (Bučiūnienė and Kazlauskaitė 2012). In a
similar vein, the content analysis of World Business Council for Sustainable Devel-
opment (WBCSD) members’ websites indicates that many companies try to link
their sustainability efforts with HRM and communicate this information with their
important stakeholders (Ehnert 2008). This chapter attempts to provide the backbone
of such an integration between HRM and CSR based on the main responsibilities of
companies towards their current and prospective employees.

8.1 Towards a Policy Framework

Since CSR is seen as a voluntary business activity, there is no formal and one single
way of conducting CSR at HRM. Although the legal frameworks have the strongest
effect over companies to consider their obligations towards employees, they say little
about the changing dynamics at the HRM and CSR nexus. Although some countries
start to enact legislation on CSR and related themes, they are currently ineffective,
since they are more about quantity rather than the quality of CSR. For instance, India
became the first country that has a CSR legislation by enforcing the companies to
give 2% of their net profits to charitable causes or to set up a CSR board committee
etc.; but despite its huge size (294-page act), “enforcement is a bit vague” (Chhabra
2014). Although the legislation on CSR is a good sign of the institutionalization of
CSR, such an attempt needs to be more specific in terms of diverse business
conducts.
On the other hand, civil society organizations (CSO) such as charities, voluntary
associations, social movement organizations, and other non-governmental organi-
zations (NGO) have gained an increasing influence on the HRM activities of
businesses by increasing public awareness on the problematic issues at companies.
According to Williams et al. (2011), their efforts tend to be associated with a CSR
agenda, since they try to provide better environmental and labor standards, which are
usually accepted as more effective than state regulations. In most countries, these
organizations can engage in standard setting, information-gathering, and behavior
modification activities to provide an effective regulatory control over businesses
(Hood et al. 2001).
8.1 Towards a Policy Framework 133

As one of the strong reference point for the companies across Europe, European
Commission (EC) has also provided an integrative approach to the development of
HRM policy under CSR scheme. Recalling its definition, EC sees CSR as a
multidimensional concept and suggests that companies should address the challenge
of human rights, labor and employment practices (training, diversity, gender equal-
ity, and employee health and well-being), environmental issues, and combating
bribery and corruption. According to EC, companies cover these issues with follow-
ing the major international guidelines such as Organization for Economic
Co-operation and Development (OECD) Guidelines for Multinational Enterprises
(MNE), the ten principles of the UN Global Compact, the International Standardi-
zation Organization (ISO) 26,000 Guidance Standard on Social Responsibility, the
International Labour Organization (ILO 2006) Tri-partite Declaration of Principles
Concerning Multinational Enterprises and Social Policy, the UN Guiding Principles
on Business and Human Rights etc. (Commission of the European Communities/
CEC 2011).
It should be noted that all these guidelines share a common perspective and
provide the basic principles on the overlapping themes about employment and
human rights. For instance, among these organizations, ILO develops a significant
policy framework and manages viable projects towards working people in all around
the world. By the joint commitment of governments, employers, and workers, ILO
works for shaping policies and programmes to promote ‘sustainable enterprise’ for
all type or sized organizations under three pillars: creating enabling environment,
entrepreneurship and business development, and sustainable and responsible work-
places (ILO 2014). Defining CSR as a voluntary and enterprise-driven initiative by
going beyond the legal obligations (ILO 2009), ILO builds its CSR approach
towards employees based on its Declaration on Fundamental Principles and Rights
at Work covering the following key issues:
– Freedom of association and the effective recognition of the right to collective
bargaining,
– Elimination of all forms of forced or compulsory labor,
– Effective abolition of child labor,
– Elimination of discrimination in respect of employment and occupation.
Considering their overwhelming impact on the global society, ILO also invites
MNEs to sign its Tripartite Declaration of Principles concerning social policy, which
encompasses the principles on employment (employment promotion, equality of
opportunity and treatment, security of employment), training, conditions of work
and life (wages, benefits and conditions of work), safety and health, and industrial
relations (freedom of association and the right to organize, collective bargaining,
consultation, examination of grievances, settlement of industrial disputes).
Socially Responsible Human Resources Management (SRHRM) In addition to
these governmental and intergovernmental attempts on providing guidance to enter-
prises, the scholars have also attempted to build the main tenets of socially respon-
sible human resources management (SRHRM). For instance, deriving from the
134 8 Social Responsibility and Human Resource Management

ILO’s CSR approach and relevant literature, Kroon and Paauwe (2014) mention
three areas of socially responsible employment practices:
• Right to freedom in terms of duration of contract (full-time contract) and nature of
the employment relationship (year round, permanent contract)
• Right to well-being in terms of employee access to exercise their rights at work
(work council, employee work meetings), protection from termination of employ-
ment (training, career development support), and physically and socially safe
work environment.
• Right to equality in terms of written down employment policies and employment
benefits scheme.
On the other hand, Orlitzky and Swanson (2006) show how a value-attuned
organization, which meets both social and economic performance criteria, can
adopt CSR at HRM practices (e.g. recruitment and selection, performance appraisal,
compensation, and training and development). Although all these frameworks are
quite useful to understand the key domains of being a socially responsible employer,
considering the importance of creating coherence between HRM and CSR con-
structs, we need an integrated approach to develop a viable SRHRM perspective. In
parallel to the major HRM challenges of contemporary business organizations, a
SRHRM model can be built based on the Carroll’s CSR pyramid (1979, 1991, 42):
• Economic and Legal Responsibilities: Ensuring Fundamental Human Rights
(e.g. employee health and safety, employment security, wages and promotions,
working hours, work-life balance, union activism)
• Ethical Responsibilities: Management of Ethical Issues (e.g. diversity manage-
ment, career development, training centres, organizational justice and trust)
• Philanthropic Responsibilities: Philanthropy towards/with Employees (e.g. child
or elderly care centres, retirement programmes, internship for youth, employee
voluntarism and giving)
As the figure illustrates that the first layer of a SRHRM pyramid covers the
fundamental human rights of all employees, which correspond to the economic and
legal responsibilities towards employees. The second layer of pyramid includes the
ethical responsibilities, which should be built on the overall ethical philosophy
towards all stakeholders. The last layer of pyramid encompasses how an enterprise
can contribute to its employees beyond the economic, legal, and ethical consider-
ations. It should be noted that the some critical themes at HRM like compensation or
performance appraisal are not necessarily ascribed to one or another layer in this
model. Instead, all these themes are evaluated from the perspectives of basic, ethical,
or philanthropic layers. Moreover, these layers are not mutually exclusive and they
should be operative at the same time. However, as the first and foremost objective of
its HRM approach, a company must address its economic, legal, and ethical respon-
sibilities. Although it is sometimes perceived as the essence of all responsibilities
due to this voluntarily nature (Turker 2013), “. . .philanthropy is highly desired and
prized but actually less important than the other three categories of social responsi-
bility. In a sense, philanthropy is icing on the cake—or on the pyramid, using our
8.2 Ensuring Fundamental Human Rights 135

metaphor” (Carroll 1991, 43). Therefore, at least on the normative level, it can be
suggested that companies can involve the responsibilities at this last layer after
meeting their responsibilities at the economic, legal, and ethical domains.

8.2 Ensuring Fundamental Human Rights

This layer of SRHRM includes the employment conditions that can be considered
within the borders of basic human rights. As it is mentioned in the previous section,
these rights cover the overlapping themes at the guidelines of almost all international
organizations. The employee health and safety, employment security, wages and
promotions, working hours, work-life balance, and union activism are among these
hot topics. Although these issues can be considered as the basic rights, which must
be provided to every employee without reservation, a study shows that the well-
known European fast fashion brands encounter the challenges of ensuring the safe
and secure employment conditions over their supplier network in the developing
countries like Turkey, India, Bangladesh or China (Turker and Altuntas 2014). The
disasters such as the collapse of Rana Plaza in Bangladesh, as the supplier of
European fast fashion companies, reveals that many employees in those countries
are working under severe conditions (pls. see Chap. 4). Considering the labor
markets, which are composed of disadvantaged people such as unskilled people,
youth, women, children (Turker and Altuntas 2014) or forced labor (Viederman
2013), the companies in the developing countries are very far away from providing
even these basic conditions. People in those countries may face with significant
problems such as discrimination, bad treatment, low wages or long hours (Ichimura
2011).
Thanks to the better legal and governance systems, the developed countries’
governments are better in ensuring the basic employee rights—however, they have
also various problems. According to Lawrence Summers, a Harvard Professor and a
former United States (US) Treasury secretary, the majority of American adults get
the middle class anxiety and believe that “their children will not live as well as they
did” due to their decreasing bargaining power and economic security against their
employers (e.g. employers can replace them easily by taking alternatives such as
using technology to offshore the operations or offering less job security by the gig
economy), diminished saving, and less opportunities. According to a survey on
human resource leaders conducted by Kronos Incorporated and Future Workplace
in the United States of America (USA), 46% of respondents think that employee
burnout is responsible for the half of annual workforce turnover; while “larger
organizations seem to suffer more”, burnout is fueled by many issues including
unfair compensation, unreasonable workload, too much overtime, insufficient tech-
nology adoption to do job etc. (Workplace Trends 2017). Despite the enormous
increase in the employee productivity since the beginning of 2000s, companies have
not adjusted their wages and benefits to reward their employees due to this produc-
tivity increase (Schawbel 2017). “The net productivity growth of 21.6% from 2000
136 8 Social Responsibility and Human Resource Management

to 2014 translated into just a 1.8% rise in inflation-adjusted compensation for the
median worker (just 8% of net productivity growth)” (Biven and Mishel 2015).
Summers (2017) suggests that unions, in which the membership is continuously
declining (e.g. only 6.4% for private sector employees), are needed to restore the
declining bargaining power of those American employees.
On the other hand, there is a popular trend among companies in the developed
countries towards going beyond the basic employee rights by triggering the altruistic
tendencies among employees and prospective employees. Building organizational
cultures by their obsessions with creativity, innovation, and flexibility, the high-tech
companies at Silicon Valley provide a wide range of luxury within dazzling working
spaces. For example, the employees at Google can choose their free meals from Indian
foods to fresh fruit smoothies at over 30 cafes, while Asana provides “life coaching
services, organic home-cooked meals twice a day, monthly Uber perks, customized
workstation, pet-friendly, and onsite yoga classes” for its employees or Twitter gives
“catered meals (breakfast, lunch and dinner), unlimited time off within reason, gym
membership reimbursements, onsite acupuncture, meditation classes, a coffee/beer/
wine bar, a rooftop deck, and more” (Bradford 2016). On the other hand, Microsoft
has built three tree houses at its headquarters in Washington to offer a place for its
employees to work up high in nature (MacLellan 2017). Beyond the familiar services
such as free beverages, the ping pong tables, the famous Building 16 and 17 at
Microsoft provide more unusual offerings such as Xbox lounge or No Tech Lounge
where employees disconnect (Warnick 2017). Martha Clarkson, the designer for
Microsoft Real Estate and Facilities, states that “we very much want our spaces to
be a relaxed aesthetic, a warm, intimate environment that’s less corporate feeling.
That’s what makes people feel comfortable. It’s all about having variety, about giving
people spaces that are tactile and interesting and not just stamped out” (Warnick 2017).
These quirky benefits and perks at companies are very attractive to lure
employees who want to work while taking the pleasure of luxury; a recent survey
of Glassdoor (2017) reveals that those company offerings are among the top
considerations for 57% of job seekers when accepting a job. However, there is an
increasing inquiry about these corporates’ efforts towards creating less corporate
feelings and atmosphere. One interesting point is whether this dazzling work envi-
ronment can worth for destroying an employee’ work-life balance. According to
Schuman (2017), “for Germans, a good work-life balance does not involve unlimited
massages and free meals on the corporate campus to encourage 90-hour weeks”; it is
much more about spending times with families and friends. Therefore, these extra
benefits and great working spaces can be acceptable only if there is no trade-off
between the luxury and other employee rights.

8.3 Management of Ethical Issues

Ethical debate on HRM related issues has attracted the attention of both scholars and
practitioners during the last decades. According to Winstanley and Woodall (2000),
since the ethical debate in enterprises is centered around the concept of CSR, the
8.3 Management of Ethical Issues 137

ethical dimension of HRM was mostly overlooked until the 1990s. Considering its
increasing importance, the authors suggest that the ethical agenda of HRM can be
addressed by concerning (1) the nature of ethical inquiry with developing an ethical
sensitivity as “the ability to reflect HRM and be able to identify the ethical and moral
dimensions and issues” and ethical reasoning as “the ability to draw on relevant
theory and frameworks to make more explicit the alternative interpretations and
responses that could be made to inform decision-making” and (2) adopting an ethical
framework, which can be implemented at the HRM practices (Winstanley and
Woodall 2000, 9). Adopting such a perspective can result in providing an ethical
work climate, which “involves formal values and compliance requirements as well
as an understanding of how interpersonal relationships affect the informal interpre-
tation of ethics” (Das Gupta 2009). Those organizational politics and individual
responses of managers towards the critical issues within an organization should be
backed up with a clear code of conduct and managers should ensure that all
employees develop an individual ethical stance, which is compatible with the overall
ethical climate.
For some businesses, this ethical management is interpreted in a wider sense to
include the responsibilities on managing diversity, helping employees to build their
career path, providing additional training and education, and ensuring the applica-
tion of key values such as justice, trust or honesty in every employee-related issue.
For example, the diversity can be an industry-wide problem in some countries; a
recent report based on the examination of 168 movies released in 2015 and 1206
shows aired on TV in 2014–2015 at Hollywood reveals that people of color are still
underrepresented both behind the scenes and in front of the camera (Rao 2017). The
failure of film industry at diversity management are usually protested through the
campaigns at social media (e.g. #oscarssowhite). The rate of discrimination in a
society manifests itself in its industries and organizations and when particularly at
the times of economic turmoil. Recalling the institutional theory, organizations are
embedded into their institutional context, which sets some invisible boundaries on
their choices through widely accepted values, norms or standards. However, insti-
tutional theory also admits the role of organizations to alter their institutional context
as change agents. In the case of diversity, we are witnessing such a change by the
attempts of some companies. In One Young World Summit in Bogotá, Colombia,
Apple’s vice president of diversity and inclusion, Denise Young Smith highlighted
the change in the meaning of diversity: “Diversity is the human experience. I get a
little bit frustrated when diversity or the term diversity is tagged to the people of
color, or the women, or the LGBT. . . there can be 12 white, blue-eyed, blonde men
in a room and they’re going to be diverse too because they’re going to bring a
different life experience and life perspective to the conversation” (Mohdin 2017).
Viewing diversity as a matter of representation and mix for bringing all voices into
organizations can exceed our narrow classifications based on gender, race or
religion.
Although this layer of SRHRM is viewed as a luxury for most small businesses,
investing in ethics ultimately contributes to the companies. Today, many companies
believe that managing diversity is an integral part of building a socially responsible
138 8 Social Responsibility and Human Resource Management

image. According to a survey result, CSR (62%) is one of the strong motives of
ensuring diversity in organizations after legal pressures (68%) and recruiting and
retaining best talent (64%) (Chartered Institute of Personnel and Development/CIPD
2006). Therefore, many companies start to apply the threshold selection to rebalance
their workforce composition in line with the community wherein they serve their
products (Noon 2012).
Ethical responsibilities can be also relevant in the areas of sustaining fair and
reliable performance appraisal and compensation systems. Ensuring distributive,
procedural and interactional justice is critical for all employees and organizations
that want to foster productivity, performance, citizenship behavior, commitment,
trust etc. (Cohen-Charash and Spector 2001). For instance, in Starbucks, while all
corporate-level employees are eligible for 12 weeks of paid parental leave, the store
employees are eligible for it if they are birth mothers or adoptive parents and it is
only 6 weeks. Such unequal benefits for low-income and gay workers are not only
unethical, but also detrimental for employee productivity (Staley 2017a). It is clear
that ethical principles should be also considered to balance the salaries and benefits
of senior managers. The astronomical salaries and great benefits when they are
working for companies and the golden parachutes when they are leaving the
companies have raised critics against the companies; the critics can be much more
severe and turned into a legal problem when companies try to hide this information
even from their own shareholders. The amount of compensation ($27.5 million) and
unusual benefits (e.g. sending an empty aircraft to follow CEO just in case his plane
broke down during the trip) for the former General Electric (GE) CEO, Jeffrey
Immelt, has become a reminiscence for the retirement package of another former
CEO of company—Jack Welch. The amount of package, which “valued at almost
$420 million, and included items like the use of an $50,000-a-month Manhattan
apartment, choice seats for the Yankees, Knicks, Red Sox, and at Wimbledon, and
the use of GE’s airplanes”, is unveiled in the divorce filings of Welch and became a
subject of US Securities and Exchange Commission’s enforcement action (Staley
2017b).
Moreover, the high performance expectations of companies can drive employees
to the stressful conditions, which can harm their work-life balance or even result in
physical or psychological problems. In some cases, the hard-core performance
criteria can be very stressful. The owner and chef of restaurant with three Michelin
star, Sébastien Bras explains that he wants to focus on cooking without the pressure
of Michelin rankings “hanging over his heads”; although those rating and ranking
systems are for honoring people at the top of their performance, he states that “in
practice, the stress involved in being ranked and rated can be bad for both our
performance and our psychological health” (Todd 2017). The recent studies show
that the neural response for such numerical based performance ratings can provoke a
‘brain hijack’ that occurs when a person faces with a physical threat like confron-
tation with a wild animal; if an employee is scored low in rating system, s/he tends to
ignore feedbacks and avoids to demonstrate the learning and professional growth
(Rock et al. 2014).
8.4 Philanthropy Towards/with Employees 139

Moreover, in a broader sense, the ethical responsibilities of a company must cover

its prospective employees too. As a company that receives one million applications
for its 25,000 openings per year, Johnson & Johnson provides a new user-friendly
system for the job applicants to help them in tracking their progress through the
recruitment process by providing timely feedbacks (Staley 2017c). By the availabil-
ity of review platforms like Glassdoor, not only current or former employees, but
also job seekers can assess the employers. Their reviews about to what extent they
feel content with the hiring process surely affect other job seekers’ preferences and
attitudes towards companies. Therefore, HRM managers must recognize their ethical
responsibilities for these stakeholders too.

8.4 Philanthropy Towards/with Employees

The last layer in the model is the philanthropic responsibilities that represent the
voluntarily involvement of a business to social or environmental problems.
Although such philanthropic responsibilities are usually taking the form of charitable
giving of companies towards NGOs, there are some ways that can enable companies
to involve their employees into the process. For instance, some companies, such as
Novo Nordisk or ING Group, build their social responsibility towards employees
from a paternalistic perspective and care the employees, their families, and even the
local community (Ehnert 2008, 208). Following the Husted’s (2003) governance
model, a company can develop in-house projects towards its employees; for exam-
ple, in its Vital Measures program, Boeing tries to support the overall health of both
its employees and retirees. Considering how the cost of childcare has skyrocketed for
the last decades (by around 70% since 1985 in USA), working parents have many
difficulties to find the quality and affordable care for their children (Purtill and Kopf
2017). Companies start to provide some innovative childcare options, like Goldman
Sachs’ on-site corporate office crèche, which offers 20 days free childcare per year
when there is an urgent need or free use of nursery for 4 weeks during the transition
back to work from parental leave, or gNappies’ new policy in London office on
remote working for the parents who have children aged from 1 to 16 (Jenkin 2016).
On the other hand, the emergence of baby-inclusive organizations that permit to their
employees to bring their babies is another trend in the business world (Babiesatwork
2017).
In addition to the philanthropic responsibilities towards employees, the compa-
nies might contribute to the solution of environmental and social problems with
involving their own employees. Based on an elaborate review of literature, Rodell
et al. (2016) define employee volunteering as “employed individuals giving time
during a planned activity for an external nonprofit or charitable group of organiza-
tion” and indicate the importance of company level and workplace characteristics to
obtain positive employee outcomes. Today, many companies support a variety of
employee voluntarism and giving programmes. For instance, Cisco Systems enables
to active participation of their employees to such programmes through devoting their
140 8 Social Responsibility and Human Resource Management

talent, time, and compassion; the employees are voluntarily working in the areas
such as helping to reduce high school drop-out rates or providing disaster relief after
a devastating flood in Bangalore, India (Cisco 2014).

8.5 Conclusion

Although the number of companies that try to integrate their CSR approach into their
HRM practices is increasing, that adoption process may differ across companies.
According to Paauwe and Boselie (2003), HRM practices are embedded into the
broader framework of society by becoming the product of macro regulatory and
institutional environment. Therefore, CSR adoption towards HRM can vary
depending on the changing environmental conditions. Some countries enforce
enterprises to develop a more sophisticated understanding on the link between
HRM and CSR beyond the legal requirements. Thus the companies in those coun-
tries must develop viable ways of implementing SRHRM to legitimize their activ-
ities for their customers and society at large. On the other hand, in the developing or
less developed countries, the absence of necessary regulatory framework and cus-
tomer pressure might result in the ignorance of enterprises both CSR and HRM. By
the spread of supplier networks, some MNEs follow both this sophisticated and
ignorance strategy together towards their employees in developed countries and the
employees of their suppliers in the developing countries, respectively.
Despite the variety of those national contexts and the diverse corporate responses
towards local circumstances, the proponents of convergence theory state that busi-
ness organizations are increasingly adopting a similar approaches in parallel to the
industrialization movement. Considering the increasing number of global challenges
that affect the corporate world almost equally, their responses towards SRHRM must
resemble to each other early or late. According to Das Gupta (2009), today the
corporate world is facing five major crises of leadership, mobility, focusing, empow-
erment, and vision; these crises can be overcome by clearly defining the role of
organization in line with a strong HRM understanding.
Although following a SRHRM policy is essential for the firms, it might be
ignored by many firms under the conditions such as an economic crisis. During
this hard times, implementing a cost-cutting strategy over the human resources
seems to be easiest way for most firms that are operating in a labor intensive sector.
However, the studies show that there are still some companies that pursue the
socially responsible employment systems even during the crisis period (Gittel and
Bamber 2010; Kroon and Paauwe 2014). Drawing on the structuration theory
(Giddens 1984), Kroon and Paauwe (2014) try to explain why some actors act
responsibly towards their employees under severe conditions rather than simply
conforming to their institutional environment as proposed by institutional and
resource-based theories (Oliver 1997). Conducting the comparative case studies on
the Dutch agricultural sector, the authors find that some companies can follow
more socially responsible employment strategies (on staffing, remuneration and
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leadership) when they recognize the existence of alternative resources and aware of
the legal framework (Kroon and Paauwe 2014). It is clear that more proactive
companies tend to adopt more socially responsible behaviors before waiting for
the occurrence of any future problem and eager to take to opportunities of external
environment than reactive organizations in the same context.

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