Holistic CSR Approach for IHRM

The International Organisation for Standardisation (ISO) 26000, defines social responsibility as ‘the actions of an organisation to take responsibility for the impacts of its activities on society and the environment, where these actions: (a) are consistent with the interests of society and sustainable development; (b) are based on ethical behaviour, compliance with applicable law and international instruments; and (c) are integrated into the ongoing activities of the organisation’ (Bowens, 2007). This very definition alone presents a number of challenges for International Human Resource Management (IHRM). Firstly, for IHRM to identify, measure and address the full scope and impact, both tangible and intangible, on global stakeholders, secondly, in protecting and applying a uniform corporate identity that aligns to the interests and ethics of a global society that is composed of unequal, unique and fragmented cultures, and finally for IHRM to be compliant and kept abreast of international law and instruments which may conflict with corporate policy, workplace practices and standards. To help meet these challenges, Porter and Kramer provide a holistic CSR approach for IHRM. The ‘inside-out’ approach maps the social impact of the HR activities value chain to identify positive and negative social impacts. The ‘outside-in’ approach diagnoses the social dimensions of a company’s competitive context to identify both CSR risks and opportunities. Additionally, by understanding cross-cultural nuances, alongside catering functional HRM activities to a global context, IHRM is able to form an integrated and strategic partnership between society and business to provide a unique value proposition to all stakeholders. Thereby, strategic CSR can be a powerful and invaluable tool for IHRM to create rewarding organisational and global opportunities.

CSR first emerged in the eighteenth century, interestingly by Adam Smith who formed the basis of free-market economies but

References: CAMAC: Australian Government - Corporations and markets Advisory Committee, 2006. “The Social Responsibility Report”, accessed from http://www.camac.gov.au/camac/camac.nsf/byHeadline/PDFFinal+Reports+2006/$file/CSR_Report.pdf at September 5, 2011 http://www.salesforcefoundation.org/files/HBR-CompetiveAdvAndCSR.pdf SHRM (Society of Human Resource Management) Research, 2007 [pic] Source: SHRM Research (2007) Accessed from http://www.wbcsd.org/web/projects/BZrole/Vision2050-FullReport_Final.pdf on September 10, 2011.