Most Firms Practice Social Responsibility, SHRM Study Says

Globalization is spurring companies to incorporate CSR practices, Susan R. Meisinger, SPHR, president and chief executive officer of SHRM, said in a written statement. HR professionals are playing larger roles in CSR programs, from developing strategies to implementing programs, she says. “Organizations are increasingly assessing the social and environmental impact of their business decisions,” she says.

The percentages of businesses that consider the overall impact of their business decisions on CSR policies vary, the report says. The countries and the percentage of businesses in those countries considering the overall social impact of their business decisions on CSR are:

. Australia, 52 percent.

. Brazil, 62 percent.

. Canada, 54 percent.

. China, 35 percent.

. India, 38 percent.

. Mexico, 26 percent.

. United States, 47 percent.

On average, organizations participated in multiple types of socially responsible practices, the report says. The CSR practices and activities reported by HR professionals across the seven countries indicate that there are variations in organizations’ interpretations of CSR. Charitable donations and fundraising are the most frequently reported CSR practices, but some organizations say they practice CSR by complying with industry regulations. Those beliefs are consistent with traditional views of CSR as either being a philanthropic program or one that ensures employees have optimal working conditions, the report says.

HR professionals employed by organizations in Brazil reported the highest rate of organizational participation in CSR practices, and HR professionals in China reported the lowest rate of CSR participation among countries included in the study, the report says. In addition, HR professionals from Australia, India, Mexico and Brazil are more likely than those from the United States to report that their organizations had formal CSR policies.

While HR professionals from Brazil were least likely to report that their organizations have no CSR policies, at least 75 percent of the Brazilian companies are more likely than firms in other countries to create socially responsible programs, the report says. Outside of Brazil, most organizations without CSR policies did not intend to create them, the report says.

Encouraging employees to volunteer in a CSR program is the most frequently cited means of involving workers in those programs, and the countries with the highest percentages of companies that encourage employees to volunteer are Brazil, 77 percent; India, 70 percent; and Mexico, 66 percent. The counties with the lowest percentages of companies encouraging employees to volunteer are China, 35 percent; Australia, 49 percent; and the United States, 53 percent.

However, countries with employers who might not actively encourage workers to volunteer in CSR programs but who recognize employees who do participate in CSR programs include the United States, 72 percent; Canada, 68 percent; and Australia, 66 percent.

CSR and Corporate Image

Among HR professionals across the seven countries there is a “strong perception” that CSR programs can improve an organization’s public image, the report says. However, there is no standard for measuring the success of an organization’s CSR efforts, making companies partially dependent on how well the organization communicates its CSR policies and practices to its stakeholders, the local community and society at large, the study says. About 66 percent of HR professionals in Australia, Canada, China, India, Mexico and the United States, and nearly 80 percent of HR professionals from Brazil, say their CSR efforts were covered in the organization’s newsletter or another company publication. Corporations’ willingness to provide published accounts of their commitment to CSR underscores the global move toward transparency of organizations’ business operations, the report says.

Because of the increased importance of CSR, SHRM’s Board of Directors has approved the formation of a CSR special expertise panel, said Brian Glade, SPHR, GPHR, and vice president of SHRM’s International Programs. SHRM’s panels bring together volunteers who provide a panel with information, education and expertise.