““HR professionals play a strategic partner role when they have

the ability to translate business strategy into action.”

- David Ulrich

Corporate social
responsibility strategy

By:
Muhammad Ali
Malik
 Subjects in Modules
 Concept of HRM
 Concept of Strategy
 Concept of SHRM
 HR Strategies
 Strategic Role of HR
 The impact of SHRM
 SHRM in Action
 HR Strategies
 HR Strategies

 Human Capital Management  Employee Resourcing

Strategy Strategy
 High Performance Strategy  Talent Management Strategy
 Learning Development
 CSR Strategy
Strategy
 OD Strategy
 Reward Strategy
 Employee Engagement
 Employee Relations Strategy
Strategy
 Knowledge Strategy
 Construct
Today’s Lecture

Mid term paper

Group Presentations on Strategies

Corporate Social Responsibility (CSR) Strategy

Organization Development (OD) Strategy

CSR Strategy
 CSR Strategy
 Corporate social responsibility (CSR) is exercised by
organizations when they conduct their business in an ethical
way, taking account of the social, environmental and economic
impact of how they operate and going beyond compliance.
 As defined by McWilliams et al (2006) CSR refers to the actions
taken by businesses ‘that further some social good beyond the
interests of the firm and that which is required by law’.
 CSR has also been described by Husted and Salazar (2006) as
being concerned with ‘the impact of business behaviour on
society’ and by Porter and Kramer (2006) as a process of
integrating business and society.
 CSR Strategy
STRATEGIC CSR DEFINED
 Strategic CSR is incorporation of holistic CSR perspective
within a firm's strategic planning and core operations so that the
firm is managed in the interest of a broad set of stakeholders to
achieve maximum economic and social value over the medium to
long term.
 As Porter and Kramer (2006) emphasize, strategy is always about
choice. They suggest that organizations that ‘make the right
choices and build focused, proactive and integrated social
initiatives in concert with their core strategies’.
 As Baron (2001) points out, CSR is what a firm does when it
provides ‘a public good in conjunction with its business and
marketing strategy’.
 CSR Strategy
CSR ACTIVITIES
 CSR activities as listed by McWilliams et al (2006) include
incorporating social characteristics or features into products and
manufacturing processes, adopting progressive human resource
management practices, achieving higher levels of environmental
performance through recycling and pollution abatement (ending)
and advancing the goals of community organizations
Business in the Community (2007) surveyed the CSR activities of
120 leading British companies and summarized them under four
headings:
 Community. Skills and education, employability and social
exclusion were frequently identified as key risks and
opportunities.
 CSR Strategy
 Environment. Most companies reported climate change and
resource use as key issues for their business, and 85 per cent of
them managed their impacts through an environmental
management system.
 Marketplace. The issues most frequently mentioned by
companies were research and development, procurement and
supply chain, responsible selling, responsible marketing and
product safety. There was a rising focus on fair treatment of
customers, providing appropriate product information and
labelling, and the impacts of products on customer health.
 CSR Strategy
 Workplace. This was the strongest management performing
area, as most companies have established employment
management frameworks that can cater for workplace issues as
they emerge.
o Companies recognized the crucial role of employees to
achieving responsible business practices.
o Increasing emphasis was placed on internal communications
and training to raise awareness and understanding of why it is
relevant to them and valuable for the business.
 CSR Strategy
THE RATIONALE FOR CSR
 Stakeholder theory as first propounded by Freeman (1984)
suggests that managers must satisfy a variety of constituents (eg
workers, customers, suppliers, local community organizations)
who can influence firm outcomes.
 According to this view, it is not sufficient for managers to focus
exclusively on the needs of stockholders or the owners of the
corporation.
 Stakeholder theory implies that it can be beneficial for the firm to
engage in certain CSR activities that non-financial stakeholders
perceive to be important.
 CSR Strategy
Generally, however, academics at least have been in favour of CSR,
and there is plenty of evidence both in the UK and in the United
States that many firms are pursuing CSR policies.
The arguments identified by Porter and Kramer (2006) that support
CSR are:
1. The moral appeal – the argument that companies have a duty to
be good citizens. The US business association Business for
Social Responsibility asks its members ‘to achieve commercial
success in ways that honour ethical values and respect people,
communities and the natural environment’
2. Reputation – CSR initiatives can be justified because they
improve a company’s image, strengthen its brand, enliven
morale and even raise the value of its stock
 CSR Strategy
3. Sustainability – an emphasis on environmental and community
stewardship. As expressed by the World Business Council for
Sustainable Social Development (2006) this involves ‘meeting the
needs of the present without compromising the ability of future
generations to meet their own needs’.
4. License to operate – every company needs tacit or explicit
permission from government, communities and other stakeholders to
do business.

Stewardship: the job of supervising or taking care of something

Tacit: understood or implied without being stated
 CSR Strategy
Much research has been conducted on the relationship between CSR
and firm performance.
 Russo and Fouts (1997) found that there was a positive
relationship between environmental performance.
 Waddock and Graves (1997) established that CSR results in an
improvement in firm performance.
 McWilliams and Siegel (2000) discovered only a neutral
relationship between CSR and profitability.
 Elif Akben Selcuk, Halil Kiymaz (2017) found relationship
between CSR and firm’s performance in emerging market
 CSR Strategy
DEVELOPING A CSR STRATEGY
The basis for developing a CSR strategy is provided by the
Competency Framework of the CSR Academy (2006), which is
made up of six characteristics:
1. Understanding society – understanding how business operates in
the broader context and knowing the social and environmental
impact that the business has on society.
2. Building capacity – building the capacity of others to help
manage the business effectively. For example, suppliers understand
the business’s approach to the environment and employees can apply
social and environmental concerns in their day-to-day roles.
 CSR Strategy
3. Questioning business-as-usual – individuals continually
questioning the business in relation to a more sustainable future and
being open to improving the quality of life and the environment.
4. Stakeholder relations – understanding who the key stakeholders
are and the risks and opportunities they present; working with them
through consultation and taking their views into account.
5. Strategic view – ensuring that social and environmental views are
included in the business strategy, for example that they are integral
to the way the business operates.
6. Harnessing diversity – respecting that people are different,
which is reflected in fair and transparent business practices.
 CSR Strategy
To develop and implement a CSR strategy based on these
principles it is necessary to:
 understand the business and social environment in which the firm
operates;
 understand the business and HR strategies and how the CSR
strategy should be aligned to them;
 know who the stakeholders are (including top management) and
find out their views and expectations on CSR;
 identify the areas in which CSR activities might take place by
reference to their relevance in the business context of the
organization and an evaluation of their significance to
stakeholders;
 CSR Strategy
 prioritize as necessary on the basis of an assessment of the
relevance and significance of CSR to the organization and its
stakeholders draw up the strategy and make the case for it to top
management and the stakeholders;
 obtain approval for the CSR strategy from top management and
key stakeholders;
 communicate information on the whys and wherefores of the
strategy comprehensively and regularly;
 provide training to employees on the skills they need to use in
implementing the CSR strategy;
 measure and evaluate the effectiveness of CSR
OD Strategy
 OD Strategy
ORGANIZATION DEVELOPMENT DEFINED

Organization development (OD) is defined by Cummins and Worley

(2005) as the ‘system wide application and transfer of behavioral
science knowledge to the planned development, improvement and
refinement of the strategies, structures and processes that lead to
organizational effectiveness’.

Behavioral Science Knowledge/ Study: A branch of science  that deals primarily with human action and often
seeks to generalize about human behavior in society. Behavioral science studies human behavior, specifically how
humans really make decisions in the real-world. In particular, behavioral science studies the way that emotions, the
environment, and social factors influence our decisions.
 OD Strategy
• French and Bell (1990) produced the following more detailed
definition:
“A planned systematic process in which applied behavioural
science principles and practices are introduced into an ongoing
organization towards the goals of effecting organizational
improvement, greater organizational competence, and greater
organizational effectiveness”.
 The focus is on organizations and their improvement or, to put it
another way, total systems change. The orientation is on action –
achieving desired results as a result of planned activities.
 OD Strategy
OD STRATEGIES
OD strategies concentrate on how things are done as well as what is
done. They are concerned with system-wide change and are
developed as programs with the following features:
1. They are managed, or at least strongly supported, from the top but
may make use of third parties or ‘change agents’ to diagnose
problems and to manage change by various kinds of planned activity
or ‘intervention’.
2. The plans for organization development are based upon a
systematic analysis and diagnosis of the strategies and
circumstances of the organization and the changes and problems
affecting it.
3. They focus on ways of ensuring that business and HR strategies
are implemented and change is managed effectively.
 OD Strategy
3. They use behavioral science knowledge and aim to improve the
way the organization copes in times of change through such
processes as interaction, communications, participation, planning
and conflict management.
 OD Strategy
ASSUMPTIONS AND VALUES OF OD
OD is based upon the following assumptions and values:
 Most individuals are driven by the need for personal growth and
development as long as their environment is both supportive and
challenging.
 The work team (especially at the informal level), has great
significance for feelings of satisfaction, and the dynamics of such
teams have a powerful effect on the behaviour of their members.
 OD programs aim to improve the quality of working life of all
members of the organization.
 OD Strategy
 Organizations can be more effective if they learn to diagnose their
own strengths and weaknesses.
 But managers often do not know what is wrong and need special
help in diagnosing problems, although the outside ‘process
consultant’ ensures that decision making remains in the hands of
the client.
 The implementation of strategy involves paying close attention to
the people processes involved and the management of change.
 OD Strategy
ACTIVITIES INCORPORATED IN THE OD STRATEGY
The activities that may be incorporated in an OD strategy are
summarized below.
 Action research
This is an approach developed by Lewin (1951) that takes the form
of systematically collecting data from people about process issues
and feeding the data back in order to identify problems and their
likely causes.
This provides the basis for an action plan to deal with the problem
that can be implemented cooperatively by the people involved. The
essential elements of action research are data collection, diagnosis,
feedback, action planning, action and evaluation.
 OD Strategy
 Survey feedback
This is a variety of action research in
which data are systematically
collected about the system and then
fed back to groups to analyse and
interpret as the basis for preparing
action plans.
A Feedback survey is a process used
to identify or measure the happiness
and satisfaction of different business
entities or consumers.
 OD Strategy
 Interventions
The term ‘intervention’ in OD refers to core structured activities
involving clients and consultants. The activities can take the form of
action research, survey feedback or any of those mentioned below.
Argyris (1970) summed up the three primary tasks of the OD
practitioner or interventionist as being to:
1. Generate and help clients to generate valid information that they
can understand about their problems;
2. Create opportunities for clients to search effectively for solutions
to their problems, to make free choices;
3. Create conditions for internal commitment to their choices and
opportunities for the continual monitoring of the action taken.
 OD Strategy
 Process consultation
As described by Schein (1969) this involves helping clients to
generate and analyse information that they can understand and,
following a thorough diagnosis, act upon. The information will
relate to organizational processes such as inter-group relations,
interpersonal relations and communications.
The job of the process consultant was defined by Schein as being to
‘help the organization to solve its own problems by making it aware
of organizational processes, of the consequences of these processes,
and of the mechanisms by which they can be changed’.
 OD Strategy
 Group dynamics
Group dynamics (a term coined by Lewin, 1947) are the processes
that take place in groups that determine how they act and react in
different circumstances. Team-building interventions can deal with
permanent work teams or those set up to deal with projects or to
solve particular problems.
Interventions are directed towards the analysis of the effectiveness
of team processes such as problem solving, decision making and
interpersonal relationships, a diagnosis and discussion of the issues,
and joint consideration of the actions required to improve
effectiveness.
 OD Strategy
 Inter-group conflict interventions
As developed by Blake, Shepart and Mouton (1964) these aim to
improve inter-group relations by getting groups to share their
perceptions of one another and to analyse what they have learnt
about themselves and the other group.
The groups involved meet each other to share what they have learnt
and to agree on the issues to be resolved and the actions required.
 OD Strategy
 Personal interventions
These include sensitivity training laboratories (T-groups),
transactional analysis and, more recently, neuro-linguistic
programming (NLP). Another approach is behaviour modelling,
which is based on Bandura’s (1977) social learning theory.
This states that for people to engage successfully in a behaviour they
1) must perceive a link between the behaviour and certain
outcomes
2) must desire those outcomes (this is termed ‘positive valence’)
3) must believe they can do it (termed ‘self-efficacy’).
T Group, Transactional Analysis & NLP
 A T-group or training group (sometimes also referred to as sensitivity-
training group, human relations training group or encounter group) is
a form of group training where participants (typically between eight and
fifteen people) learn about themselves (and about small group processes
in general) through their interaction with each other
 Transactional analysis (TA) is a psychoanalytic theory and method of
therapy wherein social transactions are analyzed to determine the ego
state of the communicator (whether parent-like, childlike, or adult-like)
as a basis for understanding behavior.
 What is Neuro-Linguistic Programming? Neuro-Linguistic
Programming, or NLP, provides practical ways in which you can
change the way that you think, view past events, and approach your
life. Neuro-Linguistic Programming shows you how to take control of
your mind, and therefore your life.
 OD Strategy
 Integrated strategic change
Integrated strategic change methodology is a highly participative
process conceived by Worley et al (1996). The aim is to facilitate the
implementation of strategic plans. The steps required are:
1. strategic analysis, a review of the organization’s strategic
orientation (its strategic intentions within its competitive
environment) and a diagnosis of the organization’s readiness for
change;
2. developing strategic capability – the ability to implement the
strategic plan quickly and effectively;
3. creating the strategy, gaining commitment and support for it and
planning its implementation;
 OD Strategy
4. integrating individuals and groups throughout the
organization into the processes of analysis, planning and
implementation to maintain the firm’s strategic focus, directing
attention and resources to the organization’s key competencies,
improving coordination and integration within the organization and
creating higher levels of shared ownership and commitment;
5. implementing the strategic change plan, drawing on knowledge
of motivation, group dynamics and change processes, dealing with
issues such as alignment, adaptability, teamwork and organizational
and individual learning;
6. allocating resources, providing feedback and solving problems
as they arise.
 OD Strategy
STRATEGIES FOR ORGANIZATIONAL
TRANSFORMATION
 Organizational transformation is defined by Cummins and Worley
(2005) as a ‘process of radically altering the organization’s
strategic direction, including fundamental changes in structures,
processes and behaviours’.
 Transformation is required when:
o significant changes occur in the competitive, technological,
social or legal environment;
o major changes take place to the product life cycle requiring
different product development and marketing strategies;
o major changes take place in top management;
o a financial crisis or large downturn occurs;
o an acquisition or merger takes place.
 OD Strategy
 Transformation strategies
Transformation strategies are usually driven by senior management
and line managers with the support of HR rather than OD specialists.
The key roles of management as defined by Tushman et al (1988)
are envisioning, energizing and enabling.
 Types of transformational strategies
Four strategies for transformational change have been identified by
Beckhard (1989):
1. a change in what drives the organization, for example a
change from being production-driven to being market-driven
would be transformational;

Market driven refers to a busi- ness orientation that is based on understanding and react- ing to the preferences and
behaviors of players within a given market structure
 OD Strategy
2. a fundamental change in the relationships between or among
organizational parts, for example decentralization;
3. a major change in the ways of doing work, for example the
introduction of new technology such as computer-integrated
manufacturing;
4. a basic, cultural change in norms, values or research systems, for
example developing a customer-focused culture
 OD Strategy
 Transformation through leadership
o Transformation programmes are led from the top within the
organization.
o They do not rely on an external ‘change agent’ as did traditional
OD interventions, although specialist external advice might be
obtained on aspects of the transformation such as strategic
planning, reorganization or developing new reward processes.
o The prerequisite for a successful program is the presence of a
transformational leader who, as defined by Burns (1978),
motivates others to strive for higher-order goals rather than
merely short-term interest.
 OD Strategy
 Managing the transition
o Transition management starts from a definition of the future
state and a diagnosis of the present state.
o It is then necessary to define what has to be done to achieve the
transformation.
o This means deciding on the new processes, systems, procedures,
structures, products and markets to be developed.
o Having defined these, the work can be programmed and the
resources required (people, money, equipment and time) can be
defined.
 OD Strategy
 The transformation programme
The eight steps required to transform an organization have been
summed up by Kotter (1995) as follows:
1. Establishing a sense of urgency:
– examining market and competitive realities;
– identifying and discussing crises, potential crises or major
opportunities.
2. Forming a powerful guiding coalition:
– assembling a group with enough power to lead the change effort;
– encouraging the group to work together as a team.
 OD Strategy
3. Creating a vision:
– creating a vision to help direct the change effort;
– developing strategies for achieving that vision.
4. Communicating the vision:
– using every vehicle possible to communicate the new vision and
strategies;
– teaching new behaviours by the example of the guiding coalition.
5. Empowering others to act on the vision:
– getting rid of obstacles to change;
– changing systems or structures that seriously undermine the
vision;
 OD Strategy
6. Planning for and creating short-term wins:
– planning for visible performance improvement;
– creating those improvements;
– recognizing and rewarding employees involved in the
improvements.
7. Consolidating improvements and producing still more change:
– using increased credibility to change systems, structures and
policies that don’t fit the vision;
– hiring, promoting and developing employees who can implement
the vision;
– reinvigorating the process with new projects, themes and change
agents.
 OD Strategy
8. Institutionalizing new approaches:
– articulating the connections between the new behaviours and
corporate success;
– developing the means to ensure leadership development and
succession.
 OD Strategy
 Transformation capability
The development and implementation of transformation strategies
require special capabilities.
As Gratton (1999) points out:
‘Transformation capability depends in part on the ability to create
and embed processes which link business strategy to the behaviors
and performance of individuals and teams. These clusters of
processes link vertically (to create alignment with short-term
business needs), horizontally (to create cohesion), and temporally
(to transform to meet future business needs).’