Efficient Human Resource Strategy for Effective Corporate Social Responsibility

By Ped Salvador July 29, 2013 CSR-Asia defined Corporate Social Responsibility as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. CSR is a complete business strategy that aims to ensure the long-term viability of the business, by assuming an active role in the development of the community, the economy, and the environment through good business practices. It is not far and different from being a good citizen of a country! Todays world has become smaller, and markets have become ever more accessible due to globalization. Globalization however, would force many companies including small and the medium enterprises to adopt CSR in order to remain competitive locally and in the international market. During the past decade, consumers and communities have become sensitive to business practices of companies existing in their areas or from which they buy their goods and services. It has been observed that communities would prefer and are supportive of companies they see as concerned with the general welfare of the people in their business operation than the employment opportunities it generates. Achieving and maintaining industrial peace is also a direct consequence of a good CSR strategy. Another important concern nowadays that could easily be responded through good CSR is the difficulty of companies in retaining highly skilled and competent personnel or luring them to work continuously in the company. In recent years many Human Resource Strategy (HRS) practitioners noticed that the most competent and skilled workers would want to be associated with companies that have good business practices and reputation. This is the possible explanation why even large corporations whose reputation of being tax cheaters, involved in corruption, products and practices that are harmful to the environment, non- involvement in responding to social issues and concerns, have hard time getting good quality, or highly skilled employees. Moreover, companies with good business practices have clear advantages in convincing investors. Studies have shown that a growing number of investors would prefer companies with strong CSR programs. They see CSR involvement as an indication of the
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companys long-term potentials. It is also a growing perception now among enterprises that sustainable business success and shareholder value cannot be achieved solely through maximizing short term profits, but instead through market-oriented yet responsible behavior. In the Philippines, CSR is spearheaded mostly by top management in the form of philanthropic works and programs that benefited not only the employees but also the communities living in the vicinity of the company. Some of them adopt communities and help them in various ways in building public libraries, public toilets, water facilities, day care centers, adult training facilities, livelihood funding and other worthy socio-economic projects. These good acts build strong relationship with the community while continuously improving the so called corporate image to customers and other stakeholders. However, only the big companies are capable of doing this great endeavor. SMEs or those who belong to Small and Medium Enterprises which comprise almost 99% of all businesses in the country are having difficulty in maximizing their efforts to practice effective CSR. This is basically due to limited budget available for allocation and responsible person to implement and monitor the projects seen as viable. Strong CSR group associations are hardly to find and everyone is busy maximizing their profit performance. In the late 1990s I was elected and chosen to head up and be the chairman of CAPOCommittee of Administrators and Personnel Officers at the Cavite Economic Zone, at Rosario Cavite. CAPO reported to CEZIA- Cavite Economic Zone Investor Association under the leadership of Mr. Claus Suddhoff, a German national and owner of a big garments company inside the zone. Later, Mr. Sudhoff became the president of European Chamber of Commerce. Note that this position gave me the chance to use efficient HRM strategies to achieve effective CSR. Teaming up with other personnel officers, human resource managers and administrators gave us the opportunity to complete projects which today can be considered as worthy CSR projects. Strong bonding and good relationship strengthened by common objectives to help workers and the community fave way the group to accomplish numerous projects. Most of the notable projects completed are: -Yearly retail sale of export quality manufactured products at very affordable price for both the zone workers and people of the community -Transfer of zone workers from companies affected by decline in business volume to companies with booming business activities
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-Posting of companies newly opened job positions in different bulletin boards of municipality halls -Coordination with Rotary Club for free dental and medical check- ups for the people of the community -Zone employees skills and knowledge upgrade to increase job flexibility -Extending workers training outside the zone and later use them as subcontractors with coordination with local Barangay officers -Conducting yearly Santa. Cruzan or Flores de Mayo to promote enculturation for foreign workers, managers, executives and expatriates and thus promote industrial peace and harmony between local and foreign nationals I will always remember also that being the first to know the problems of the company owners, I was able to extend their desire to implement the minimum wage adjustment implementation ahead of government legislation to the proper authorities. The only obstacle at that time is the non- availability of detailed directions and procedures coming from Region IV Office of Department of Labor and Employment. With the help of Dr. and Atty. Noli Santos, CEO and Chairman of International Academy of Management and Economics, he was able to inform the good objectives through a formal letter to Secretary Leo Quesumbing. In two weeks time the new directives was implemented and almost fifty thousand (50) workers benefited with this CSR act. Indeed, HRS if used efficiently with the approval of top management and business owners, thru effective CSR will be very meaningful in the desire of government to promote inclusive growth and thus improve the quality of life of the majority of marginalized Filipinos.