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Read the marketing brochures and annual reports of most
medium-sized to large organisations and you will find these
highlighting their achievements in the area of Corporate
Social Responsibility (CSR).
Often shown in donations to charities or schools,
involvement in community initiatives or sponsorship of
CSR-related events, companies have been aware for many years
of the commercial benefits of supporting good causes.
However, there is anecdotal evidence to suggest that few
companies put as much emphasis on initiatives which might
benefit their own employees.
Many companies believe they are more at risk from external
forces but I believe there is an equal risk of damage to brand
and reputation where employees are shown to be treated poorly;
as tools to keep the engine running and not as people to be
consulted, rewarded and treated with respect.
Commercial success and enhanced reputation in the business
community achieved at the expense of employees is short-term
success. In other
words, corporate reputations are as much at risk from
disgruntled and disfranchised employees as they are from
external forces.
Companies
that market themselves as responsible corporates face an
additional risk to their reputations if their working
practices adversely affect their employees. Their CSR policies
might then be seen as a cynical and empty gesture; in the end,
they will alienate those investors and customers they sought
to win over. There was a case involving a European airline
listed in two social responsibility indices.
The behaviour of one of their subsidiaries to their
employees in the
US
was
such (alleged health and safety violations and harassment) that multiple grievance charges were filed
against the airline. There
is now an e-mail campaign asking travellers to boycott the
company concerned because their behaviour is "In stark
contrast to the image … of a company committed to its
employees".
CSR
strategies must include employee relations, staff
development and well-being.
They must be designed in consultation with HR
specialists and
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internal
HR functions to ensure that areas such as work-life balance
mean more than words in a recruitment campaign.
Staff and managers must know that they will be fairly rewarded for their
contributions through honest and open performance management
practices.
Definitions of acceptable conduct should not be left to
managers' discretion. Companies
must include grievance and complaints procedures within their
HR strategies and these must be consistent across all areas of
the business and available and visible to everyone.
Companies should institute sustainable staff training
policies such as tailored career development plans.
Research has shown many times that investment in
training and development increases staff commitment and can
improve the quality of the service or product delivered to
customers.
To
prevent unpleasant surprises, companies must also develop
ethical sourcing policies and procedures to ensure the working
practices of their suppliers sit well with the company's
stated values. Invitations
to tender could include a requirement that submissions show proof of policies and performance in this area.
Policies instituted to enhance the working environment must
be felt and believed by employees otherwise it is a failure.
This will take time but the benefits will be long-term.
It will pay dividends.
It will increase profits.
It is ethical.
If you would like more advice or guidance, please e-mail info@amosbutler.com
or telephone 0845 125 9612 to speak to a Senior Business
Analysts.
Disclaimer
The information provided above is not comprehensive and
should, therefore, only be used as a guide.
If you would like more detailed guidance or an initial
talk with one of our analyst, please call +44(0) 7960 588 834 or
e-mail info@amosbutler.com.
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