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Developing a sustainable HRM system from a contextual perspective

Article in Corporate Social Responsibility and Environmental Management · June 2018


DOI: 10.1002/csr.1528

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Received: 16 August 2017 Revised: 3 February 2018 Accepted: 26 February 2018
DOI: 10.1002/csr.1528

RESEARCH ARTICLE

Developing a sustainable HRM system from a contextual


perspective
Rosalia Diaz‐Carrion | Macarena López‐Fernández | Pedro M. Romero‐Fernandez

Facultad de Ciencias Económicas y


Empresariales, University of Cadiz, Cádiz, Abstract
Spain Adopting a sustainability approach in management has become an imperative for
Correspondence
organizations. This article addresses this challenge by establishing the criteria for
Rosalia Diaz‐Carrion, University of Cadiz,
Facultad de Ciencias Económicas y the implementation of a human resource management (HRM) system based on an
Empresariales, Universidad de Cádiz, Avenida
approach of corporate social responsibility (CSR). It also provides a measurement
Enrique Villegas Vélez 2, 11002 Cádiz, Spain.
Email: rosalia.diaz@uca.es scale for CSR in the field of HRM. We analyse the sustainability reports of 194 com-
panies quoted on the main stock exchanges of Germany, Spain, Sweden and the
United Kingdom. Furthermore, we review the main international CSR standards.
Finally, we develop a Delphi study among academic experts. The results have practi-
cal implications. They suggest that human resource managers must play a proactive
role in pushing their organizations to develop employment practices with a CSR ori-
entation. This will have positive effects for companies internally by enhancing
employees' satisfaction and commitment toward the organization, and externally by
improving the image that the company projects to society.

KEY W ORDS

corporate social responsibility, CSR measurement scale, Delphi study, institutional theory,
stakeholder theory, sustainable HRM

1 | I N T RO D U CT I O N literature on sustainable HRM. Sustainable HRM is understood as HR


policies and practices that contribute to improving labour and
Corporate social responsibility (CSR) and human resource management employees' quality of life (Dupont, Ferauge, & Giuliano, 2013).
(HRM) have traditionally been conceived as independent fields. How- Although the sustainable HRM literature has evolved in recent
ever, the interface between these two areas is relevant for companies years, its translation into actual managerial practices remains a chal-
due to the positive organizational outcomes for both internal and lenge for many organizations (Jamali et al., 2015). The literature
external stakeholders (Jamali, El Dirani, & Harwood, 2015). While the includes descriptions of efforts to delimit the content of sustainable
study of HRM focuses primarily on internal aspects of the company HRM systems in terms of the policies and practices they encompass
and CSR has traditionally focused on external elements (the environ- (e.g. Barrena‐Martínez, López‐Fernández, & Romero‐Fernández,
ment, the local community etc.), the two functions overlap. This is 2017; Bučiūnienė & Kazlauskaitė, 2012; Celma, Garcia‐Martínez, &
observed in both the practical and academic spheres. Regarding the Coenders, 2014; Newman, Miao, Hofman, & Zhu, 2016). However,
former, the affinities between the two functions are reflected in the previous studies present an exclusively national approach, not consid-
main international standards that organizations rely on to certify their ering contextual aspects that shape sustainable HRM. Consideration
commitments vis‐a‐vis CSR. The most widespread worldwide standard, of the institutional pressures of the context allows an understanding
the Global Reporting Initiative (GRI) (Moratis & Brandt, 2017), includes of the reasons that companies incorporate CSR into their HRM sys-
information related to HRM and CSR – labour practices, decent work tems. The importance of legitimacy for companies' survival in the long
and respect for human rights. In regard to the academic sphere, the term justifies the relevance of the consideration of institutional theory
interrelation between CSR and HRM is reflected in the increasing in the determination of a sustainable HRM system. This is the

Corp Soc Resp Env Ma. 2018;1–11. wileyonlinelibrary.com/journal/csr Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment 1
2 DIAZ‐CARRION ET AL.

approach adopted by this research, which pursues two objectives. institutional theory allows for the advancement in the study of HRM
First, it aims to develop a system of policies and practices of sustain- from a contextual perspective, since it provides a framework for
able HRM. Second, it seeks to determine a measurement scale of sus- understanding some reasons that lead companies to incorporate CSR
tainable HRM. into their HRM. The application of generally accepted CSR principles
To meet the first objective, in addition to an exhaustive review of such as equality of opportunity, objectivity, transparency and empow-
the literature, an in‐depth analysis of the sustainability reports of a erment into HRM is likely to provide the company with social legiti-
sample of 194 companies from European countries with significant macy (Gallego‐Álvarez & Quina‐Custodio, 2017).
institutional differences was performed. Furthermore, the main inter- Despite the expected similarities in the institutional context
national CSR standards in the field of HRM have been analysed. To across Europe and the attempt to homogenize CSR through interna-
meet the second objective, a validation of the measurement scale of tional standards such as the GRI, significant differences in CSR among
the sustainable HRM system previously developed was carried out. European countries remain (Maon, Swaen, & Lindgreen, 2017). Given
This was done by a panel of academic experts in the areas of HRM the distance observed in the institutional context among European
and CSR from different European countries through a Delphi study. countries and the different HRM systems that exist in Europe, the
The paper is structured as follows. First, the main theoretical consideration of institutional pressures in the determination of a sus-
foundations on which the research is built are presented (stakeholder tainable HRM system becomes fundamental. This consideration will
and institutional theories) and the literature on sustainable HRM is enable a more accurate view of sustainable HR policies and practices
reviewed. Second, the research methods employed for the analysis in the European context in comparison to studies that adopt an exclu-
are presented. The procedure followed to identify the system of sus- sively national approach (Barrena‐Martínez et al., 2017).
tainable HRM is detailed, as well as the Delphi study that was devel- This paper provides a model of sustainable HRM that, from a con-
oped to validate the measurement scale. Third, the main findings of textual perspective, takes into consideration the institutional pres-
the study are presented. Finally, the paper's main contributions, prac- sures of context and the influence of internationally accepted
tical implications, limitations and future study directions are discussed standards that drive mimetic isomorphism (Figure 1).
in the conclusion section.

2.2 | Moving to a sustainable approach in HRM

2 | T HE O R E T I CA L B A CK GR O U N D Several authors argue that HRM is the organizational function that


presents the greatest potential for the incorporation of CSR practices
(Jamali et al., 2015; Sharma, Sharma, & Devi, 2011). In addition, a
2.1 | The stakeholder and institutional theories as
greater integration of the two areas can produce synergies, generating
frameworks for studying sustainable HRM
a process of co‐creation – a joint creation of value for the different
In stakeholder theory, companies need to respond to stakeholders' stakeholders – as indicated by Jamali et al. (2015).
demands and expectations for long‐term success. Therefore, firms Despite the importance of sustainable HRM, empirical evidence
should consider the interests of all stakeholders who can affect or shows that companies are more focused on implementing strategic
can be affected by the firm. However, due to the scarcity of resources HRM than on developing HRM based on a CSR framework
that companies face, they must prioritize the satisfaction of the inter- (Westermann‐Behaylo, Berman, & Van Buren, 2013). This supports
est groups that are key for business success (Boesso, Favotto, & the managerial view of HRM practices, which are primarily aimed at
Michelon, 2015; Farooq, Payaud, Merunka, & Valette‐Florence, improving the firm's economic performance (Greenwood, 2013).
2014). Employee satisfaction is a fundamental aspect for business suc- However, this thinking leads to several dissonances and tensions
cess, since employees play a central role in business operations perceived by a firm's different stakeholders, such as employees,
(Albrecht, Bakker, Gruman, Macey, & Saks, 2015; Shen & Benson, governments and social communities (McWilliams & Siegel, 2011).
2016). The application of CSR in HRM is likely to improve workers' Therefore, it is necessary to adopt an approach that considers the
satisfaction and commitment to the organization, and consequently demands of the different stakeholders of the firm – predominantly,
the firm's chances of long‐term survival (Jamali et al., 2015). Under this employees – as key players in obtaining a firm's competitive advan-
assumption, organizations need to pay attention to employees' needs tage – (Jamali et al., 2015). Hence the importance of the implementa-
and expectations in relation to employment policies and practices. tion of sustainable HRM, not only to obtain long‐term competitive
However, external pressures make organizations act to adapt to advantages but also to improve the quality of life of society in general
their external contexts through isomorphic mechanisms. The response (Ehnert, Harry, & Zink, 2014).
to these pressures provides the company with social legitimacy, as This need to evolve from strategic to sustainable HRM is evi-
indicated by institutional theory. By accepting the institutional pres- denced in the academic literature (Kramar, 2014). A growing body
sures, companies transfer the values of the external context to their of research has been focused on sustainable HRM in recent years
organizational structures, strategies and practices, thus generating (Voegtlin & Greenwood, 2016). Some studies relate sustainable
institutional isomorphism (Frynas & Stephens, 2015). To the extent HRM to organizational performance (e.g. Bučiūnienė & Kazlauskaitė,
that CSR becomes a relevant issue in a society, companies, in an 2012; De Bussy & Suprawan, 2012). Their main contribution has been
attempt to respond to the pressures of the context by adopting iso- to relate these practices to positive financial performance. Other
morphism, incorporate CSR in their management practices. Therefore, studies have tried to advance research by going beyond the
DIAZ‐CARRION ET AL. 3

FIGURE 1 Research model

consideration of the financial outcome to include the social outcomes sustainable HR policy in the literature: employee acquisition, develop-
associated with CSR. According to these studies, sustainable HRM ment, and workforce management. Vuontisjärvi (2006) found 10 per-
increases employees' motivation and improves their quality of life sonnel policies linked to CSR in the Finnish context, ranging from
(see, e.g., Davies & Crane, 2010; Newman et al., 2016; Shen & training to work–family balance (Table 1).
Benson, 2016). Furthermore, the effects of sustainable HRM, not only From the literature reviewed in this study, it can be observed
on employees but also on their families and the community in which that there are policies in the area of HRM that have a strong CSR
the company operates, have been explored in recent literature content, including those related to occupational safety and health,
(Cleveland, Byrne, & Cavanagh, 2015; Mariappanadar, 2014). How- employment, labour relations, training and development, diversity,
ever, there is a need to concretize the practices that shape sustain- equal opportunities, remuneration, communication, transparency,
able HRM (Jamali et al., 2015). The lack of consensus lies, among work–family balance, wellbeing, staff involvement etc. Although
other aspects, in the difficulty of stipulating what specific policies these studies make an effort to identify a set of sustainable HR pol-
include CSR, and more specifically how they relate to the field of icies, they adopt an exclusively national approach. However, sustain-
HRM (Voegtlin & Greenwood, 2016). able HR policies and practices are not independent of the external
context in which the organization operates, as CSR is largely deter-
mined by external pressures (Gallego‐Álvarez & Quina‐Custodio,
2.3 | Previous research on sustainable HRM 2017). The institutional context of the firm determines to a large
Given the need to define content in terms of policies and practices of extent the implementation of a sustainable HRM system. Hence,
sustainable HRM, several studies have tried to identify a set of sus- adopting a contextual approach in the study of sustainable HRM
tainable policies and practices in the area of employee management. becomes crucial.
For example, Barrena‐Martínez et al. (2017), focused on the Spanish Due to the relevance of considering the external context and the
context, found eight HR policies with a social orientation: employ- scarcity of research adopting a contextual approach in determining
ment, management of labour relations, occupational health and safety, sustainable HRM, this research aims to contributing to the literature
training, diversity and equal opportunities, equity in remuneration, by adopting a contextual perspective in the development of a sustain-
working conditions and social protection, and communication and able HRM system and the determination of a measurement scale for
social dialogue. Jamali et al. (2015), through a literature review, sustainable HRM.
pointed to the importance of practices related to the recruitment
and retention of employees with an orientation toward CSR, and the
consideration of the sustainable behaviour of companies in the pro-
3 | R E S E A RC H M E T HO D S
motion, performance evaluation and remuneration of employees.
Dupont et al. (2013) developed a case study of a Finish company
and found three policies: recruitment and employment access, training
3.1 | Country sample
and career development, and wellbeing in the workplace. Bučiūnienė In order to have a broad vision of sustainable HRM systems in Europe,
and Kazlauskaitė (2012) centred their study in Lithuania, finding five this study selected countries that present marked institutional differ-
HR policies with a social orientation: participation of minority ences. Following the literature on varieties of capitalism, specifically
employees, flexible management of working time and job rotation, the classification by Midttun, Gautesen, and Gjølberg (2006), a coun-
health and well‐being, ownership shares and communication. Similarly, try from each cluster was chosen: Germany (Central European), Spain
Jørgensen, Becker, and Matthews (2011) identified three types of (Latin), Sweden (Nordic) and the United Kingdom (Anglo‐Saxon). The
4 DIAZ‐CARRION ET AL.

TABLE 1 Revising the literature on sustainable HR policies

Author/s Sustainable HR policies Methods Study scope


Barrena‐Martínez et al. Employment, labour management relations, occupational health and safety, Sustainability reports, national (Spain)
(2017) training and education, and diversity and equal opportunities GRI and ISO26000
Jamali et al. (2015) management of employment relationships, prevention, health and safety at work, literature review
training and continuous development, diversity and equal opportunities, fair
remuneration and social benefits, communication, transparency, social
dialogue, attraction and retention of employees and work–family balance
Celma et al. (2014) remuneration, training, internal information and communication, health and empirical national (Spain)
safety in the workplace, equal opportunities and non‐discrimination, and
work–life balance
Dupont et al. (2013) recruitment and employment access, training and career development and empirical case study
wellbeing in the workplace (GDF SUEZ
Group)
Bučiūnienė and Kazlauskaitė participation of minority employees, flexible management of working time and empirical national
(2012) job rotation, health and well‐being, ownership shares and communication (Lithuania)
Jørgensen et al. (2011) recruitment, development and management of employees literature review
Beaupré, Cloutier, Gendron, management of change, training programs, employee communication systems, empirical national
Jiménez, and Morin personal and professional life balance policies and occupational health (France)
(2008) prevention
Orlitzky and Swanson training and development, recruitment and selection, performance appraisal and literature review
(2006) compensation
Vuontisjärvi (2006) training and staff development, pay and benefits, participation and staff empirical national
involvement, values and principles, employee health and well‐being, (Finland)
employment policy, measurement of policies, security in employment, equal
opportunities and work–life balance

country with the highest gross domestic product (GDP) of each cluster 3.2.2 | International CSR standards
was selected, with the exception of Spain. Spain was chosen with the In spite of the diversity of practices observed in the sustainability
objective of expanding the studies developed in that country, among reports from the organizations in the different countries, there is a
which Barrena‐Martínez et al. (2017) set the basis for future research. certain degree of homogenization. This is explained, in large part, by
The choice of GDP as a selection criterion is justified because, as evi- the proliferation of standards, principles and CSR certifications world-
denced by Espigares and López (2006), there is a positive relationship wide (Moratis & Brandt, 2017).
between GDP and CSR practices. Countries with higher levels of GDP In order to complement the information on sustainable HRM
have a greater tendency to develop sustainable practices. extracted from the sustainability reports and the literature review, a
comprehensive analysis of the main international CSR initiatives deal-
ing with aspects related to HRM was developed. Following Nikolaeva

3.2 | Data collection procedure and Bicho (2011), the most widespread standards, principles and cer-
tifications worldwide were studied: GRI, International Organization
3.2.1 | Sustainability reports for Standardization 26000 (ISO26000), Occupation Health and Safety
One of the basic aspects of CSR is the visibility that companies give to Assessment Series for Health and Safety Management Systems
the actions they develop in this area. Communicating to the stake- (OSHAS18001), Social Accountability 8000 (SA8000) and the United
holders the commitments made to meet their CSR demands becomes Nations Global Compact (UNGC).
a fundamental issue (Matten & Moon, 2008). Companies use sustain- The analysis of the literature, the sustainability reports and the
ability reports as an essential tool for this communication. CSR standards yielded a total of 98 SHR practices and six policies:
To determine the content of a sustainable HRM system in Europe, staffing, training, performance appraisal and career management, com-
a content analysis of the sustainability reports of 194 companies listed pensation, work–family balance and diversity promotion, and occupa-
on the main stock exchanges of Germany (DAX30), Spain (IBEX35), tional health and safety. Table 2 displays the identified policies and the
Sweden (OMX Stockholm 30) and the United Kingdom (FTSE100) international CSR indices from which they were extracted.
was developed. It can be observed that the policy of occupational health and safety
Companies listed on the main stock markets were chosen is covered in all the CSR standards analysed. Staffing policy, which
because, being subject to continuous scrutiny by investors, customers gathers practices related to selection, dismissal and expatriation, is cov-
and other social actors, they have a high degree of commitment to dis- ered in all the standards except OSHAS18001, since that standard is
close information (Dyduch & Krasodomska, 2017). Beyond the fully dedicated to actions related to health and safety. Training policy
demand of these companies to make public certain financial informa- is covered in GRI and ISO26000. Compensation policy, work–family
tion, they also show a strong tendency to transmit data that, although balance and diversity promotion are present in GRI and SA8000.
not mandatory, have a strategic value, as is the case of information Finally, performance appraisal and career management is only covered
about CSR (Romolini, Fissi, & Gori, 2014). in GRI. In view of these data, GRI is the CSR standard that deals more
DIAZ‐CARRION ET AL. 5

TABLE 2 Sustainable HR policies from international CSR standards

Sustainable HR policies GRI ISO26000 OSHAS18001 SA8000 UNGC


Staffing employment (LA1, LA2, LA3; employment (6.4, 6.4.3, 6.4.4, – – Principle 6
LA5) 6.4.5, 6.3.10)
Training training and education (LA10, human development and training – – –
LA11, LA12) in the workplace (Issue 5,
Section 6.4, 6.4.7 6.8.5)
Performance appraisal and training and education (LA11, – – – –
career management LA12)
Compensation diversity and equal – – remuneration ‐
opportunity (LA14) (Section 8)
Work–family balance and diversity and equal – – working hours –
diversity promotion opportunity (LA13, LA14) (Section 7)
Occupational health and occupational health and health and safety at work full document* health and safety –
safety safety (LA6, LA7, LA8, LA9) (Issue 4, Section 6.4, (Section 3)
6.4.6, 6.8.3, 6.8.4, 6.8.8)

*OSHAS18001 is a certification system focused exclusively on the field of occupational health and safety in organizations.

widely with aspects related to HRM because it covers all policies iden- methodology was the most appropriate in this study due to its useful-
tified in the literature review and the sustainability reports. ness in exploratory investigations that do not use previously tested
In regard to the specific practices (Table 31), it is important to note constructs (García‐Martínez, Aquino‐Zú iga, Guzmán‐Salas, &
that they were all present in the sustainability reports of the compa- Medina‐Meléndez, 2012; Okoli & Pawlowski, 2004; Streiner &
nies under analysis. Kottner, 2014).
The practices extracted from the previous analyses cover a wide According to Murry and Hammons (1995), the Delphi technique is
range of concrete actions in the field of sustainable HRM. All of them a qualitative methodology based on the opinion of a group of experts
have a clear social orientation since they adjust to one or several CSR on a specific subject that is very useful for studying complex problems.
principles (equality of opportunity, objectivity, transparency, empow- The experts' assumptions are made in successive rounds, or iterations,
erment etc.). For example, practices related to equal opportunities which are developed anonymously, in order to try to achieve consen-
can be found: ‘To guarantee the application of the principles of diver- sus but ensuring the autonomy of the participants. The implementa-
sity and equal opportunities in all HRM practices’. Regarding objectiv- tion of several iterations allows the participants to reconsider their
ity, ‘To have rigorous and objective assessment procedures to answers to obtain the maximum possible consensus on a topic. Once
determine an employee's development plan’ can be observed within a sufficient level of agreement is reached, a new round is not neces-
the performance evaluation and career management policy. In regard sary (Linstone & Turoff, 2002). Hsu and Sandford (2007) suggest that
to practices related to transparency, the practice ‘To develop transpar- the first iteration should be based on an extensive review of the liter-
ent and unbiased selection processes’ is included within the staffing ature. From this review, the items should be modified, evaluated and
policy. Finally, there are practices related to empowerment of modified again according to the comments and assessments made by
employees, such as ‘To take into account employees’ preferences the panellists.
when determining training’, where the participation of employees For the development of the Delphi study, according to the pro-
regarding the decisions that affect them is highlighted. posal of Astigarraga (2005), four phases were defined: formulation of
the problem, selection of the panel, elaboration and launch of ques-
tionnaires and analysis of the results.
3.3 | Validation technique: A Delphi study
Several authors point to the need to promote sustainable HRM by 3.3.1 | Formulation of the problem
establishing mechanisms that objectively and effectively allow its eval- Taking the practices identified throughout this study (Table 3), we
uation (Jamali et al., 2015; Voegtlin & Greenwood, 2016). In addition, sought to reach a sufficient degree of consensus about their validity.
a scarcity of studies that validate the proposed scales is observed in The validity refers to the capacity to significantly and adequately mea-
the literature (Toliver, 2016). In response to this need, the second sure the condition of sustainable practices. We also intended to deter-
objective of this study is to develop a measurement scale for CSR in mine their level of adjustment or importance with respect to CSR.
the HRM field.
In order to create a scale of sustainable HRM, a panel of experts 3.3.2 | Selection of the panel
validated and assessed the set of policies and practices identified in
The experience of the panellists in a Delphi study is an essential aspect
this study. This second stage of research was implemented through
because the validity of the results depends, fundamentally, on their
a Delphi study developed among academics from different European
good judgment (Hsu & Sandford, 2007). For this reason, the main
countries who are experts in the area of HRM and CSR. Delphi
criteria for their selection were their academic, teaching and research
1
The 98 practices displayed show the final description of each of the items after experience in the fields of HRM and CSR. Many authors have dealt
analysis by the panel of experts. with the optimum size of the Delphi panel. Astigarraga (2005) points
6 DIAZ‐CARRION ET AL.

TABLE 3 Results of the Delphi study (second iteration): item definition


Staffing

STAF1 To develop transparent and unbiased selection processes. STAF8 To help dismissed employees by implementing actions such
as training, preparation for interviews, support for
entrepreneurship etc.
STAF2 To encourage internal promotion over external contracting as STAF9 To continue to have the support of the most experienced
a mechanism for staff motivation. employees, even once they are retired.
STAF3 To clearly detail the criteria employed in the internal selection STAF10 To advise workers on how to manage their exit from the
processes and appoint the individual in charge of them. organization.
STAF4 To recruit in universities (through internship programmes STAF11 To develop standardized selection processes at an
etc.) to encourage the recruitment of young people. international level.
STAF5 To hire people at risk of social exclusion beyond what is STAF12 To encourage the contracting of local workers and managers
required by law. in the case of internationalization.
STAF6 To implement specific programmes to facilitate the STAF13 In the case of expatriation, to help employees with the
adaptation and integration of new candidates (induction adaptation process.
handbook etc.).
STAF7 In the case of restructuring, to favour the employees' STAF14 To have a repatriation plan so the expatriate's labour
relocation to other areas of the company or their voluntary situation is not altered after the expatriation period.
resignation.
Training

TRAI1 To have skill training programmes and continuous learning TRAI6 To offer mentoring programmes as part of the training of
that support workers' employability. employees.
TRAI2 To provide periodic training to all employees regardless of TRAI7 To help employees to fund educational programmes
their professional category, gender, age etc. (master's degree etc.).
TRAI3 To take into account employees' preferences when TRAI8 To conduct programmes to improve the training of the
determining training. family of employees.
TRAI4 To establish training levels according to the talent, TRAI9 To provide training for host countries' employees.
commitment and performance appraisal of every employee
TRAI5 To have an individual training itinerary for every employee.
Performance evaluation and career management

EVAL1 To have rigorous and objective assessment procedures to EVAL6 To have ‘fast track’ career plans that favour internal
determine an employee's development plan. promotion within a short time.
EVAL2 To set promotions based on employees' merit. EVAL7 To give responsibility to employees for their own
development.
EVAL3 To evaluate performance and decide career plans for all EVAL8 To provide career opportunities for young people.
employees, regardless of their professional category,
gender etc.
EVAL4 To employ different assessment systems depending on the EVAL9 To offer periodic feedback to employees about their
different employee groups. development.
EVAL5 To implement a 360‐degree performance evaluation system. EVAL10 To give workers the opportunity to decide on their careers.
Compensation

COMP1 Remuneration practices are transparent for all members of COMP10 To revise salaries yearly in order to adjust them both to
the organization. performance and to external indicators, such as the CPI
(consumer price index).
COMP2 The salary gap between the highest and the lowest wage COMP11 To perform audits of salary review processes to ensure that
(including managers) is agreed between employees and they are not discriminatory, and use them to improve the
managers of the company. remuneration system.
COMP3 The reward policy does not discriminate by gender, type of COMP12 To link part of the compensation to employees' compliance
contract etc. with CSR goals.
COMP4 The compensation system considers the employee's skills, job COMP13 To provide non‐monetary compensation to employees.
position and performance.
COMP5 To link rewards to both individual and collective performance. COMP14 To reward employees for giving suggestions about quality or
organizational health and safety improvements.
COMP6 To provide social benefits as motivation and a retention COMP15 To offer compensation above the minimal pay required by
mechanism (retirement plan, health insurance etc.). the host country national laws.
COMP7 To offer rewards by way of company shares. COMP16 Pensions, health insurance etc. are better than the
legislation of the host country.
COMP8 To take into consideration employees' expectations when COMP17 To set wages above collective agreements of each country.
establishing compensation
COMP9 To have a flexible compensation plan in which employees can decide which parts of their salary are monetary and which are social benefits.
DIAZ‐CARRION ET AL. 7

Work–family balance and diversity promotion

DIV1 To conduct climate surveys to achieve a comfortable working DIV21 To provide training on ethical codes of conduct, respect for
environment in which the dignity of employees is human rights, environmental sustainability etc.
respected and their needs are considered.
DIV2 To facilitate the free interaction between employees and DIV22 To provide training for both workers and managers on the
their representatives. importance of diversity.
DIV3 To involve workers' representatives in relevant decisions DIV23 To register incidents related to discrimination and carry out
(collective agreements, the percentage of temporary staff corrective actions.
etc.).
DIV4 To ensure that most of the workers are covered by collective DIV24 To have a person or team responsible for managing diversity
agreements. in the organization.
DIV5 To communicate to employees the changes that might affect DIV25 To favour the existence of a proper work–family balance for
their contractual relationship with the company ahead of employees.
the minimum period required by law.
DIV6 To encourage decentralization and employee autonomy for DIV26 To allow modifications of the workday and shifts according
making decisions. to workers' personal needs
DIV7 To perform audits of suppliers and subcontractors to assure DIV27 To be flexible when authorizing paternity/maternity,
that they treat their employees in a responsible manner. breastfeeding leave and unpaid leave for family reasons.
DIV8 To encourage employees' engagement in social projects as DIV28 To give the possibility of extending maternity/paternity
part of their working week. leave when the child is affected by a disability.
DIV9 To report on the performance of the company in economic, DIV29 To facilitate the transfer to other locations for personal or
social and environmental issues. professional reasons (family, health etc.).
DIV10 To implement formal and informal mechanisms for DIV30 To guarantee the employee the possibility of returning to
communication with employees. the same position after the maternity/paternity leave.
DIV11 To try to improve communication among employees. DIV31 To provide monetary compensation during the maternity/
paternity leave beyond what is required by law.
DIV12 To encourage communication between employees and line DIV32 To provide workers with childcare facilities, both during
managers. working hours and outside work.
DIV13 To encourage participation and ideas exchange at both DIV33 To subsidize and advise about childcare services and
horizontal and vertical levels. assistance to dependant family members.
DIV14 To have formal mechanisms for workers to anonymously DIV34 To organize educational play activities for employees'
express their concerns about unethical or illegal actions. families.
DIV15 To guarantee the application of the principles of diversity and DIV35 To offer employees holiday destinations at lower prices.
equal opportunities in all HRM practices.
DIV16 To have a formal equal opportunities policy. DIV36 To carry out regular audits to verify the company's
compliance with the work–family balance policy.
DIV17 To create an environment in which groups of workers in a DIV37 To have a formalized code of conduct based on the main
minority (e.g. of colour, with mobility challenges etc.) feel international sustainability standards (Global Compact,
integrated in the organization. Equator Principles etc.).
DIV18 To aim to increase the presence of workers in a minority (e.g. DIV38 To present reports verified by independent consulting
of colour, with mobility challenges etc.) in management companies according to internationally accepted
positions. standards such as GRI, ISO26000 etc.
DIV19 To facilitate employees affected by a disability to remain in DIV39 To publish any progress, gaps and challenges in the field of
their job position by adjusting working hours etc. responsible personnel management.
DIV20 HR policies are always aimed at assessing the merit of the worker.
Occupational health and safety
SAF1 To accredit an appropriate level of health and safety with SAF6 To promote sport and healthy living inside and outside
standards and certifications such as OSHAS, ISOS etc. work; for example, developing sports activities, raising
awareness of the benefits of healthy living etc.
SAF2 To have formal health and safety committees that carry out SAF7 To be concerned about both workers' and their families'
monitoring and control activities beyond those required by health by providing free medical reviews, psychological
law. support services etc.
SAF3 To involve employees in the establishment of a plan for SAF8 To keep a record of job accidents, illnesses and workers at
prevention of occupational risks. risk of suffering occupational diseases with the goal of
improving health and safety at work.
SAF4 To minimize psychological and physical work risks. SAF9 To agree with trade unions with regard to improving health
and safety.
SAF5 To provide training to improve accident prevention/health
and safety beyond what is required by law.

out that a sample of between 7 and 30 experts is considered sufficient 3.3.3 | Elaboration and launch of questionnaires
for the methodology. In the present research 60 European academic
experts were selected, with 24 finally participating. This was consid- Once the problem was defined and the experts selected, the third
ered an adequate size for achieving the study's objectives. stage consisted of the elaboration and the launch of the questionnaire,
8 DIAZ‐CARRION ET AL.

which was sent electronically through the Survey Monkey platform. results of the Delphi study were then analysed and the main
Panellists were asked: (i) whether they considered a certain practice findings extracted.
to be sustainable; and (ii) to assess the degree to which this practice
was in accord with CSR. For their valuation they were asked on a
Likert scale from 0 to 8 about the importance of the practice for 4 | MAIN FINDINGS
CSR (0, not important; 1, low importance; 8, high importance). Two
rounds of the Delphi study were conducted, reaching sufficient levels The present research points to the importance of the policies identi-
of consensus on the reliability and assessment of SHR practices. fied in the previous literature. CSR literature shows a high degree of
After the first round, the data were tabulated and the reliability consensus on the identification of policies related to training, work–
of the results was analysed. The definition of each practice was family balance and diversity promotion, and occupational health and
reviewed according to the suggestions provided by the experts in safety, as sustainable (Table 5).
the section titled for that purpose in the questionnaire. Subse- The results of the second iteration show that, for most practices,
quently, the average value given by the panellists for each practice relatively high data agreements are obtained regarding the importance
was calculated. of the CSR according to the group of experts (Figure 2).
Next, in order to study the deviation in the answers of each In particular, 99% of the practices are above the midpoint of the
expert for each practice with respect to the average valuation for that measurement scale. The fact that the average of all practices tends
item, the confidence interval was calculated for each practice. This to be on the upper levels of the scale shows that academics bestow
allowed discerning whether such differences were significant, in which high importance to these items and, consequently, that these practices
case panellists whose answers were outside the confidence interval are clearly oriented toward CSR. The results can be considered logical
were asked to reconsider their answers in a second round. since all the practices evaluated by the panellists were considered
The 24 academics involved in the first stage participated in the actions that the literature emphasizes as sustainable, as well as sus-
second round. A customized questionnaire was sent to each panellist tainability reports of benchmark companies and the main CSR
asking them to reconsider their responses to those practices in standards.
which their responses had deviated significantly from the panel's Hence, this research provides a higher degree of detail by adding
average value. a wide range of specific practices of sustainable HRM in comparison
to the previous literature. Furthermore, it provides a ranking of SHR
practices according to their adjustment to the CSR principles.
3.3.4 | Analysis of the results Table 6 shows the 10 most relevant practices according to the results
The reliability of the responses was analysed by employing Cronbach's of our analysis.
alpha (Cronbach, 1951). Although this value depends on the context, The most sustainable practices are related, first, to the establish-
Bland and Altman (1997) suggest that it should be above 0.90. In ment of rewards that do not discriminate by gender, type of contract
the present study, high levels of consensus are observed for all poli-
cies – calculated as the average of all practices – as can be seen in
TABLE 5 Consensus in the literature on sustainable HR policies
Table 4. This justifies the validity of their content and their degree
Sustainable HR policies Source
of importance for CSR.
Staffing Vuontisjärvi (2006); Orlitzky and Swanson
Regarding the results shown by Cronbach's alpha, all policies have
(2006); Jørgensen et al. (2011); Dupont
a high internal consistency (values between 0.8 and 0.9), increasing for et al. (2013); Barrena‐Martínez et al.
all policies from the first to the second iteration. High levels of con- (2017)

sensus are also observed in the first and second iterations when con- Training Orlitzky and Swanson (2006); Vuontisjärvi
(2006); Beaupré et al. (2008); Jørgensen
sidering the aggregate data for all the practices (0.985 and 0.987, et al. (2011); Dupont et al. (2013);
respectively). Celma et al. (2014); Jamali et al. (2015);
Barrena‐Martínez et al. (2017)
In view of the high levels of consensus reached in the second
Performance appraisal and Orlitzky and Swanson (2006); Vuontisjärvi
round of the Delphi study, a third round was not necessary. The career management (2006); Jørgensen et al. (2011); Dupont
et al. (2013)
Compensation Orlitzky and Swanson (2006); Vuontisjärvi
TABLE 4 Cronbach's alpha for the two iterations (2006); Celma et al. (2014); Jamali et al.
(2015)
Sustainable HR policies 1st iteration 2nd iteration
Work–family balance and Orlitzky and Swanson (2006); Vuontisjärvi
Staffing 0.872 0.896 diversity promotion (2006); Beaupré et al. (2008); Jørgensen
et al. (2011); Bučiūnienė and
Training 0.922 0.927 Kazlauskaitė (2012); Celma et al. (2014);
Performance appraisal and career 0.954 0.973 Jamali et al. (2015); Barrena‐Martínez
management et al. (2017)
Compensation 0.901 0.918 Occupational health and Vuontisjärvi (2006); Beaupré et al. (2008);
safety Jørgensen et al. (2011); Bučiūnienė and
Work–family balance and diversity 0.832 0.853
Kazlauskaitė (2012); Celma et al. (2014);
promotion
Jamali et al. (2015); Barrena‐Martínez
Occupational health and safety 0.894 0.905 et al. (2017)
DIAZ‐CARRION ET AL. 9

FIGURE 2 Average value of sustainable HR practices (second iteration of the Delphi study) [Colour figure can be viewed at wileyonlinelibrary.
com]

TABLE 6 Ranking of sustainable HR practices diversity and equal opportunities, and to favour the existence of a

Average
proper work–family balance.
Items Sustainable HR practices value
COMP3 The reward policy does not discriminate 7.74
by gender, type of contract etc. 5 | CO NC LUSIO NS
SAF4 To minimize psychological and physical 7.58
work risks. In order to meet the objectives of the research, we have developed a
DIV28 To give the possibility of extending 7.54 process of analysis of the literature on sustainability in HRM, the main
maternity/paternity leave when the international CSR standards in the field of employee management and
child is affected by a disability.
the sustainability reports of a sample of 194 European companies.
DIV9 To report on the performance of the 7.46
company in economic, social and This analysis has revealed a system of sustainable HRM formed by
environmental issues. six policies and 98 practices. These policies and practices were submit-
SAF8 To keep a record of job accidents, 7.42 ted to a validation and evaluation process by a group of academic
illnesses and workers at risk of
suffering occupational diseases experts through a Delphi study to develop a measurement scale of
with the goal of improving health sustainable HRM. Next, statistical tests were performed that offered
and safety at work.
robust indicators of reliability concerning the items under analysis.
DIV15 To guarantee the application of the 7.38
principles of diversity and equal
opportunities in all HRM practices.
5.1 | Contributions
DIV25 To favour the existence of a proper 7.33
work–family balance for employees. The present study creates value in several ways. First, it provides a
DIV23 To register incidents related to 7.25 common theoretical framework between two traditionally indepen-
discrimination and carry out corrective dent areas of research, CSR and HRM, making an important contribu-
actions.
tion to the literature that integrates them: sustainable HRM. This is a
DIV16 To have a formal equal opportunities 7.17
policy. relatively young field and, thus, is at an early stage of development
DIV19 To facilitate employees affected by a 7.17 (Jamali et al., 2015). The identification of a wide range of practices
disability to remain in their job position implies specifying and detailing in a comprehensive manner what a
by adjusting working hours etc.
sustainable HRM system encompasses. The sources from which the
information was extracted offer distinctive signs with respect to high
etc. Second, the importance of minimizing psychological and physical performance work systems. The practices identified in this research
work risks is highlighted by our study. Third, practices related to incorporate an ethical commitment in the relations established
work–family balance, such as the possibility of extending maternity/ between the company and its employees, moving from a strategic to
paternity leave when the child is affected by a disability, become espe- a sustainable approach in the management of employees.
cially relevant. Next, our results point to the importance of practices Second, the study adopts a contextual perspective by considering
related to transparent communication with employees, followed by countries that differ in their institutional contexts in Europe and the
those aimed at guaranteeing the application of the principles of mimetic pressures exerted by the main international CSR standards.
10 DIAZ‐CARRION ET AL.

Due to the differences observed in the institutional context among 5.3 | Limitations and future study directions
European countries, the consideration of the institutional context
Along with the value of the qualitative validation of the scale provided
has provided a wide vision of the activities that shape a sustainable
by the Delphi study developed in this research, future investigations
HRM system in Europe. This responds to a call in the literature that
could include a quantitative validation of the scale. This could be done
speaks to the need to develop research on sustainable HRM configu-
by implementing statistical techniques useful for studies in early
rations and their interrelation to institutional aspects (Voegtlin &
stages of development such as factorial analysis or structural equation
Greenwood, 2016). In the same vein, Barrena‐Martínez et al. (2017)
models. Furthermore, based on the scale developed, future research
point to the need to extend the study of sustainable HRM systems
could explore the synergies that might exist between the practices in
to the European context in view of the discrepancies in CSR among
order to develop configurations of sustainable HRM.
European countries.
Third, recent studies in the literature point to the need to promote
ORCID
the sustainable HRM discipline by establishing mechanisms that objec-
tively and effectively allow its evaluation and comparison in a system- Rosalia Diaz‐Carrion http://orcid.org/0000-0001-8420-2387

atic way (Toliver, 2016). The present research makes a qualitative Macarena López‐Fernández http://orcid.org/0000-0003-4542-2445

validation of a measurement scale of the sustainable HRM system by Pedro M. Romero‐Fernandez http://orcid.org/0000-0002-7648-

identifying numerical values and a ranking of practices in terms of their 9522

importance for CSR.


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