SOCIAL RESPONSIBILITY AND

HUMAN RESOURCE MANAGEMENT

By Dr. Chau Ly
14 October 2021

Societal Factors Affecting

HRM
Demographics
Sustainability
and Diversity

Strategic
HRM

Ethics

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Diversity

Demographic changes in society have greatly impacted

the composition of the workforce. In addition,
numerous laws protect diverse groups in our society
from discrimination in employment Most
organizations have developed some kind of diversity
management program in response to one of both of
these factors.
Diversity initiatives can be designed to ensure legal
compliance or to truly promote and encourage
respect for others and differences. There is a
marked difference between these motivations, as
illustrated in Exhibit 2.1.
Diversity is a strategic business issue for an
overwhelming majority of organizations/employers.

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Generational Diversity

Generational diversity is becoming increasingly prevalent

as individuals live and remain in the workplace longer
than in previous years.
Different generations need to be able to work alongside
each other in contemporary organizations. Exhibit 2.2
illustrates some of the characteristics of different
generations found in the workplace.

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Workforce Demographic Changes:
“Graying” of Workforce
 Negative aspects of older  Positive aspects of older
workers workers
 Perceived resistance to change  As productive or more
by older workers. productive than younger
workers
 Increased health-care costs for
senior workers  Have more organizational
loyalty than younger workers
 Blocking advancement
opportunities for younger  Possess broader industry
workers knowledge & professional
networks
 Higher wage & salary costs for
senior workers

Workforce Demographic
Changes
 Baby Boomers (1945–1962)
 Inexcess supply in middle
management ranks
 HR challenge is to manage
“plateaued” workers
 Baby Busters (1963–mid-1970s)
 Are career bottlenecked by Boomers
 Who have skills in high demand are
doing & will do well

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Workforce Demographic
Changes
 Generation “X”ers (late 1970s–early 1980s)
 Have life-long exposure to technology & constant change
 Seek self-control, independence, personal growth,
creativity
 Not focused on job security or long-term employment
 Generation “Y”: “Baby Boom Echo” (after 1979)
 High comfort level with technology
 Global & tolerant outlook on life
 Highly entrepreneurial
 Shorter attention span
 Opting for more transient & variable project work

Workforce Demographic
Changes
 Sexual orientation
 More than 200 Fortune 500 employers offer full benefits
for domestic partners
 Sexual orientation issues can impact bottom line
 -Same-sex marriage is created complications for
employers.
 Disabilities
 54 million Americans with disabilities
 Often not included in diversity initiatives
 Many supervisors do not understand needs of employees
with disabilities
 Stereotypes

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New Employee/Workplace
Dynamics
 Emphasis on management of
professionals
 Establishment of separate career tracks
 Technical/Professional, Managerial
/Administrative
 Use of project teams
 Less employee loyalty, more loyal to self
 Staying with employers for shorter
periods; demanding more meaningful work
& involvement in organizational decisions

New Employee/Workplace
Dynamics
 Increased personal & family dynamic
effects
 More single-parent families, dual-
career couples, & domestic partners
 Increased nontraditional work
relationships
 Part-time,consulting, & temporary
employment flexibility
 Outsourcing & entrepreneurial
opportunities

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Managing Workplace Diversity

 Understanding &  Diversity management

appreciating diversity programs or initiatives
 Critical to effectively  Must be integrated
marketing to ethnic & with organization’s
minority groups mission & objectives
 Promoted by having  Help key decision
diverse workforce at makers identify
all levels diversity’s benefits to
organization
 Helps ensure hiring &
promotion decisions  Make critical decisions
are unbiased by person about implementing
differences optimal
program/initiative
contingent on
organization & its
people, mission &
culture.

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Strategic Management of
Diversity
 Determine why diversity is important
 Articulate how diversity relates to mission &
strategic objectives
 Define diversity & determine how inclusive its
efforts will be
 Make a decision as to whether special efforts
should be extended to attract diverse workforce
 Assess how existing employees, customers, &
other constituencies feel about diversity
 Determine specific types of diversity initiatives
that will be undertaken

Ethical Behavior

 Many employers are now considering ethics and ethical

behavior in light of major bankruptcies, scandals and
business meltdowns. However, ethics are subject to
personal values and convictions.
 Common ethical concerns for HR include
 off-duty behavior
 ownership of work
 non-compete clauses

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Codes of Ethics

Many organizations and some industries have

developed their own code of ethics. The
Society of Human Resource Management
(SHRM) has developed such a code for HR
professionals. This code presents core
principles, intent and guidelines in a number
of areas, including: Professional
Responsibility; Professional Development;
Ethical Leadership; Fairness and Justice;
Conflicts of Interest; and Use of Information.

Exhibit 2.6 provides some guides for developing

a code of ethics or code of conduct.

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Sustainability

Sustainability (and social responsibility in general) take

a more macro approach to managing an
organization’s relationship with its external
environment.

Organizations are being increasingly expected to

consider the effects of their operations, decision and
business on the social and natural environment.

General Electric has developed a model program related

to sustainability and Gap, Inc. has set standards for
offshoring of its manufacturing operations.

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Reading 2.1
Stereotype Threat at Work

Stereotype threat is defined as the fear of being

judged according to a negative stereotype.
Even if an employer were successful in hiring
only non-prejudiced managers, stereotypes
still exist in the broader society and hence,
the workplace. Stereotype threat has been
documented across a wide range of diversity
dimensions and performance domains. It
extends beyond those in traditionally
disadvantaged groups to those who are
members of high-status groups. Stereotype
threat affects everyone as every individual is
a member of at least one group about which
stereotypes exist.

Reading 2.1
Stereotype Threat at Work

Based on the conditions of

• task difficulty
• personal task investment

Stereotype threat is more likely to influence performance

on difficult, challenging tasks which are at the limits of
a person’s abilities. It is also more likely to influence
performance when an individual in more personally
involved with a task and hence, cares about
performance.

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Reading 2.1
Stereotype Threat at Work

• Can be reduced by teaching affected employees behavioral

strategies for improving performance and counteracting
negative stereotypes
• Can also be eliminated by refuting or diminishing the
stereotype relevance of a given task
• Employees can also re reminded about external factors
which might constrain performance such as a difficult
client, limited resources or a tight deadline
• Can also be minimized by presenting a role model who
contradicts the stereotype

Mangers can actually use stereotype threat to create more

diversity-friendly work environments. Stereotypes should
be acknowledged and addressed directly and managed by
focusing on a larger context or environment.

Reading 2.2
The Ethics of Human Resource
Management
Human resource managers typically face three kind of
ethical problems
• need for discernment or determining the right thing to do
in a given situation
• conflict between what the HR managers feels is right and
what the employer asks be done
• conflicts of interest where the HR manager’s personal
beliefs differ from the responsibility of acting as an agent
for the employer

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Reading 2.2
The Ethics of Human Resource
Management

Ethical dilemmas in recruitment

can involve special requests for
hiring criteria from managers,
setting or recommending entry
salary, how extensively to
recruit, internal versus external
recruiting, privacy protection
due to applicants and follow-up
with rejected
applicants/candidates

Reading 2.2
The Ethics of Human Resource
Management
Ethical dilemmas in training and development can involve
training employees who make take their skills to a
competitor, ensuring employee safety, particularly given
an employee’s language, minimizing abuses of power in
mentoring relationships and fully and truthfully
informing employees about their future prospects with
the employer

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Reading 2.2
The Ethics of Human Resource
Management
Ethical dilemmas in compensation can involve compressed
compensation systems, ensuring that employers are not
exploited by managers relative to compensated hours of
work, comparable worth, differences in pay between
levels of responsibility and equity in pay relative to the
marketplace

Reading 2.2
The Ethics of Human Resource
Management

Ethical dilemmas may also be

present relative to employee
monitoring, progressive
discipline and termination,
balancing costs of benefits with
employees’ needs and choice
and measures used to retain
employees

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Reading 2.3
How do Corporations Embed Sustainability Across the
Organization?

Recommendations

 Learning about sustainability is a companywide

necessity that should not be restricted to the
discourse of leaders and senior managers
 Awareness initiatives need to be cross-functional
and spread across the full range of business
functions
 Embedding sustainability should include both
technical and action learning opportunities
 Learning cycles should include opportunities for
social learning and expansion of company
knowledge systems

Reading 2.3
How do Corporations Embed Sustainability Across the
Organization?

Training and Development Tools

 Codes of Conduct - specify minimum acceptable standards in corporate processes and procedures
 Impact Measures - social and environmental accounting tools and environmental impact measures
calculate social and environmental impact
 Company Structure and Policies – clear delineation of whom, where, and how responsibility will be
managed and how sustainability will be integrated into corporate governance structures
 Purchasing and Supply Chain Initiatives - dialogue with suppliers on the importance of sustainability
in the supply chain with targets and performance indicators set for affirmative action and
procurement practices that proactively support social and environmental stewardship
 Communications and Dialogue - corporate publications and social media can be used to
communicate the importance of sustainability as well as the organization’s position and practices on
such to both internal and external stakeholders
 Employee Training and Workshops - deliver technical information as well as company expectations
about sustainability to employees
 Company Visits - learn from other organizations that have successfully implemented sustainability
initiatives
 Employee Volunteering Opportunities - opportunities to enable employees to contribute their
knowledge and skills to social and environmental projects and learn first-hand about their impact

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