The initial motivation for those who incorporate in this sector is to earn profits
Lesson 15: Sustainability.
To this point you have studied the ways in which organizations choose to relate to the variety of groups affected the organization’s decisions. The issues can be quite intense when considering the choices available to for-profit corporations. The initial motivation for those who incorporate in this sector is to earn profits, payments to those who own shares of stock. There are scholars and practitioners alike that promote that objective as the sole responsibility of those employed to represent the interests of the shareholders.
At the same time, there has been increasing awareness that narrow decisions regarding profit can have substantial impacts on other stakeholders: for example, employees, communities, and the environment. In many cases those wanting to create a sense of corporate social responsibility (CSR) in the for-profit sector have succeeded. Many—if not most—organizations in the for-profit sector at least claim to embrace CSR.
In this lesson we will consider how HRER professionals can help promote CSR.
Lesson Objectives
After successfully completing this lesson, you should be able to do the following:
- Describe and explain the meaning of corporate social responsibility in the context of environmental sustainability.
- Analyze how HRER practitioners can contribute to an organization’s commitment to environmental sustainability.
Readings and Activities –Lesson 15 Commentary + E-Reserves:
- REVIEW from Lesson 5: Trevino, L. K., & Nelson, K. A. (2017). Chapter 9: Corporate social responsibility. In Managing business ethics (7th ed., pp. 326–361).
Sustainability
One of the most commonly invoked terms in recent years in the context of corporate social responsibility (CSR) is sustainability. Perhaps because of the frequency with which scholars and practitioners alike use the word, it has a variety of meanings often related to the phrase triple bottom line. Trevino and Nelson describe this phrase as “a firm’s economic, social, and environmental impacts” (p. 334). The authors continue with the following observation:
The term sustainability has sometimes been used to represent harmony among these three dimensions. At other times, sustainability has come to be associated with environmental impact— “long term growth that doesn’t deplete natural resources and lowers emissions of greenhouse gases.” (p. 334)
For purposes of this lesson, we will explore the degree to which organizations are currently committed to environmental sustainability and how HR practitioners are able to contribute to such outcomes.
As with many issues associated with the practical application of moral values, discussions of environmental sustainability are often presented in very dramatic ways. Consider the following video.
Whatever the perspective, the point of this lesson isn’t that you must choose what some have characterized as the correct path. That is a normative ethics problem. By the time an organization has committed (or not) to environmental sustainability, the ethical decision-making process will have been completed. (That, of course, doesn’t mean that it might not be revisited.)
There are also an exceptional number of corporate statements of the subject, most seeking to carve out a CSR niche suggesting the company is truly committed to the environment. Again, one can easily find such examples. For those considering a trip to Maui, consider the following presentation.
At this point, HR practitioners will have a responsibility to align their activities with this portion of the organization’s value system. This responsibility asks HR staff to consider how it will manage its functions consistent with this (and other important values).
Recent Research
The apparent commitments many organizations make to sustainability can be more or less effective depending on organizational policy and practice. And for the lesson, we are particularly interested in the impact that HRER professionals might have on such outcomes. One concept that has emerged is the organization’s rationale for sustainability (ORS). Research suggests that “organizations that intend to ‘go green’ need their employees to perceive and believe that they actively support sustainability” (Jeronimo et al., 2020, p. 413). In essence, employees need to believe that whatever visible commitments organizations make toward sustainability are authentic.
In that context, Helena Mateus Jeronimo (2020) and her coauthors sought to determine whether HR policies and practices were factors influencing employees’ perception of ORS. For this purpose, they studied three discrete functions: hiring, training, and pay. Their findings suggested that “green” hiring and training both positively affected employees’ perception of ORS; however, the use of “green” compensation incentives had little or no impact on ORS. In other words, at least some elements of HR functional commitment to environmental sustainability made a difference in supporting ORS and, therefore, more effective sustainability outcomes.
Another article by Chiara Pellegrini et al. (2018) suggests the same types of connections but with a twist. In their work they determined that employees’ perceptions of HR policies mattered as predictors of employees’ commitment to sustainability; however, they also found that commitment was also affected by a person’s emotional connection to sustainability (Pellegrini et al., 2018, p. 1229). In other words, it is important to create HR policies that model a commitment to sustainability, but it is also important to build initiatives that promote employees’ personal commitment to such outcomes.
HRER professionals need to understand not only the direct relationship between HR initiatives and sustainability attitudes and behaviors but also what other circumstances generate desired sustainability outcomes. Understanding these conditions makes it more likely that HRER professionals can fashion initiatives that promote such effects. For example, Stacy H. Lee (2020) addressed the connection between the likelihood that employees who practice organizational citizenship behaviors (OCB) are more likely to promote sustainability objectives in the fashion industry. (Her study did not focus exclusively on environmental sustainability.) She determined that there was a direct relationship between the two variables. Lee also focused on factors related to the frequency with which employees engage in OCB. Among other findings, Lee determined that “if the working environment is perceived by employees to be more ethical, they will tend to engage more in OCB, which leads to improved relationships with different stakeholders” (Lee, 2020, p. 13). How, then, can HRER professionals promote the more ethical workplace that would contribute to high levels of employees’ OCB and, therefore, better sustainability outcomes?
It is always the case that HRER staff should not only “keep the trains running” (i.e., do an excellent job with their functional responsibilities) but also routinely connect their functional responsibilities with organizational mission, values, and strategy. The concern that organizations have developed for sustainable objectives has become one of the guideposts around which HR can model supportive conduct and also develop policies and practices that help achieve organizational objectives.
The Lesson 15 discussion forum will provide you with an opportunity to consider what you might recommend to IBM regarding its stated commitment to environmental sustainability.
Reference
Jerónimo, H., Henriques, P. L., de Lacerda, T. C., da Silva, F. P., & Vieira, P. R. (2020). Going green and sustainable: The influence of green HR practices on the organizational rationale for sustainability. Journal of Business Research, 112, 413–421.
Lee, S. (2020). Achieving corporate sustainability performance: The influence of corporate ethical value, and leader-member exchange on employee behaviors and organizational performance. Fashion and Textiles, 7(1), 1–17.
Pellegrini, C., Rizzi, F., & Frey, M. (2018). The role of sustainable human resource practices in influencing employee behavior for corporate sustainability. Business Strategy and the Environment, 27, 1221–1232.
Lesson 15 Sustainability Discussion and Class Post.
Please read IBM’s formal commitment to environmental sustainability Links to an external site..
In a class discussion post of at least 1.5 pgs.:
Identify at least three ways that you, as IBM’s Director of Human Resources, could tailor your ordinary responsibilities in a way that would support the values that are presented on the website.
In doing so, please make clear, which value(s) identified on the website your choices would support and why?
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