SOCIAL RESPONSIBILITY AND

HUMAN RESOURCE MANAGEMENT

Societal
Societal Factors
Factors Affecting
Affecting HRM
HRM

Demographics
and Diversity

Sustainability

Strategic
HRM

Ethics

Diversity
Diversity
Demographic
Demographicchanges
changesin
insociety
societyhave
havegreatly
greatlyimpacted
impactedthe
the
composition
compositionof
ofthe
theworkforce.
workforce.In
Inaddition,
addition,numerous
numerouslaws
laws
protect
protectdiverse
diversegroups
groupsin
inour
oursociety
societyfrom
fromdiscrimination
discrimination
in
inemployment
employmentMost
Mostorganizations
organizationshave
havedeveloped
developedsome
some
kind
kindof
ofdiversity
diversitymanagement
managementprogram
programin
inresponse
responseto
toone
one
of
ofboth
bothof
ofthese
thesefactors.
factors.
Diversity
Diversityinitiatives
initiativescan
canbe
bedesigned
designedto
toensure
ensurelegal
legal
compliance
complianceor
orto
totruly
trulypromote
promoteand
andencourage
encouragerespect
respectfor
for
others
othersand
anddifferences.
differences. There
Thereisisaamarked
markeddifference
difference
between
betweenthese
thesemotivations,
motivations,as
asillustrated
illustratedin
inExhibit
Exhibit2.1.
2.1.
Diversity
Diversityisisaastrategic
strategicbusiness
businessissue
issuefor
foran
anoverwhelming
overwhelming
majority
majorityof
oforganizations/employers.
organizations/employers.

Exhibit
Exhibit2.1
2.1
Differences
DifferencesBetween
BetweenLegal
LegalCompliance
Complianceand
andManaging
Managing
Diversity
Diversity

Generational
Generational Diversity
Diversity
Generational
Generational diversity
diversity isis becoming
becoming increasingly
increasingly
prevalent
prevalent as
as individuals
individuals live
live and
and remain
remain in
in the
the
workplace
workplace longer
longer than
than in
in previous
previous years.
years.
Different
Different generations
generations need
need to
to be
be able
able to
to work
work
alongside
alongside each
each other
other in
in contemporary
contemporary
organizations.
organizations. Exhibit
Exhibit 2.2
2.2 illustrates
illustrates some
someof
ofthe
the
characteristics
characteristics of
of different
different generations
generationsfound
found in
in
the
the workplace.
workplace.

Exhibit
Exhibit2.2
2.2

Generations
Generations in
in the
the Workplace
Workplace
Generation
Generation
Fit
Fitsought
sought

Percentage Contributions
Percentage Contributions

Leadership
Leadership

ofofWorkforce
Workforce

Preferences
Preferences

Traditionalists
Traditionalists
(1922-1945)
(1922-1945)

8%
8%

Diligent, stable, loyal,

Diligent, stable, loyal,
detail-oriented, focused
detail-oriented, focused
emotionally mature
emotionally mature

Fair, consistent, direct

Fair, consistent, direct
respectful
respectful

Contribution
Contribution
(experience,
(experience,
balance, caring)
balance, caring)

Baby Boomers
Baby Boomers
(1946-1964)
(1946-1964)

44%
44%

Team-oriented, experTeam-oriented, experienced, knowledgeable

ienced, knowledgeable
loyal
loyal

Equality, democratic,
Equality, democratic,
personable, missionpersonable, missionfocused
focused

Relationships
Relationships
(security,
(security,
co-workers)
co-workers)

Generation X
Generation X
(1965-1980)
(1965-1980)

34%
34%

Independent, adaptable,
Independent, adaptable,
creative, noncreative, nonconforming
conforming

Direct, competent,
Direct, competent,
informal, flexible,
informal, flexible,
supportive
supportive

Job
Job
(challenge,
(challenge,
participation,
participation,
outcomes)
outcomes)

Generation Y/Millenials
Generation Y/Millenials
(1981- 2000)
(1981- 2000)

14%
14%
(increasing)
(increasing)

Optimism, multi-tasking,
Optimism, multi-tasking,
socially responsible,
socially responsible,
diverse,
diverse,
tech-savvy
tech-savvy

Positive, mentor,
Positive, mentor,
motivational,
motivational,
organized
organized

Culture
Culture
(progressive,
(progressive,
autonomous,
autonomous,
fast-paced)
fast-paced)

Workforce
Workforce Demographic
Demographic Changes:
Changes:
Graying
Graying of
of Workforce
Workforce
Negative
Negative aspects
aspects of
of
older
older workers
workers

Perceived
Perceivedresistance
resistancetoto
change
changeby
byolder
olderworkers.
workers.
Increased
Increasedhealth-care
health-care
costs
costsfor
forsenior
seniorworkers
workers
Blocking
Blockingadvancement
advancement
opportunities
opportunitiesfor
foryounger
younger
workers
workers
Higher
Higherwage
wage&&salary
salary
costs
costsfor
forsenior
seniorworkers
workers

Positive
Positive aspects
aspects of
of
older
older workers
workers

As
Asproductive
productiveorormore
more
productive
productivethan
thanyounger
younger
workers
workers
Have
Havemore
more
organizational
organizationalloyalty
loyalty
than
thanyounger
youngerworkers
workers
Possess
Possessbroader
broader
industry
industryknowledge
knowledge&&
professional
professionalnetworks
networks

Workforce
Workforce Demographic
Demographic Changes
Changes
Baby
Baby Boomers
Boomers (1945
(19451962)
1962)
InInexcess
excesssupply
supplyininmiddle
middlemanagement
managementranks
ranks
HR
HRchallenge
challengeisistotomanage
manageplateaued
plateauedworkers
workers

Baby
Baby Busters
Busters (1963
(1963mid-1970s)
mid-1970s)
Are
Arecareer
careerbottlenecked
bottleneckedby
byBoomers
Boomers
Who
Whohave
haveskills
skillsininhigh
highdemand
demandare
aredoing
doing&&will
willdo
do
well
well

Workforce
Workforce Demographic
Demographic Changes
Changes
Generation
Generation Xers
Xers (late
(late 1970s
1970searly
early 1980s)
1980s)

Have
Havelife-long
life-longexposure
exposuretototechnology
technology&&constant
constantchange
change
Seek
Seekself-control,
self-control,independence,
independence,personal
personalgrowth,
growth,creativity
creativity
Not
Notfocused
focusedon
onjob
jobsecurity
securityororlong-term
long-termemployment
employment

Generation
Generation Y:
Y: Baby
Baby Boom
BoomEcho
Echo (after
(after 1979)
1979)
High
Highcomfort
comfortlevel
levelwith
withtechnology
technology
Global
Global&&tolerant
tolerantoutlook
outlookon
onlife
life
Highly
Highlyentrepreneurial
entrepreneurial
Shorter
Shorterattention
attentionspan
span
Opting
Optingfor
formore
moretransient
transient&&variable
variableproject
projectwork
work

Workforce
Workforce Demographic
Demographic Changes
Changes
Sexual
Sexual orientation
orientation

More
Morethan
than200
200Fortune
Fortune500
500employers
employersoffer
offerfull
fullbenefits
benefitsfor
for
domestic
domesticpartners
partners
Sexual
Sexualorientation
orientationissues
issuescan
canimpact
impactbottom
bottomline
line

Disabilities
Disabilities

54
54million
millionAmericans
Americanswith
withdisabilities
disabilities
Often
Oftennot
notincluded
includedinindiversity
diversityinitiatives
initiatives
Many
Manysupervisors
supervisorsdo
donot
notunderstand
understandneeds
needsofofemployees
employees
with
withdisabilities
disabilities
Stereotypes
Stereotypes

New
New Employee/Workplace
Employee/Workplace Dynamics
Dynamics
Emphasis
Emphasis on
on management
management of
of professionals
professionals
Establishment
Establishmentofofseparate
separatecareer
careertracks
tracks

Technical/Professional,
Technical/Professional,Managerial
Managerial/Administrative
/Administrative

Use
Useofofproject
projectteams
teams

Less
Less employee
employee loyalty,
loyalty, more
more loyal
loyal to
to self
self
Staying
Stayingwith
withemployers
employersfor
forshorter
shorterperiods;
periods;
demanding
demandingmore
moremeaningful
meaningfulwork
work&&involvement
involvementinin
organizational
organizationaldecisions
decisions

New
New Employee/Workplace
Employee/Workplace Dynamics
Dynamics
Increased
Increased personal
personal &
& family
family dynamic
dynamic
effects
effects
More
Moresingle-parent
single-parentfamilies,
families,dual-career
dual-careercouples,
couples,&&
domestic
domesticpartners
partners

Increased
Increased nontraditional
nontraditional work
work relationships
relationships
Part-time,
Part-time,consulting,
consulting,&&temporary
temporaryemployment
employment
flexibility
flexibility
Outsourcing
Outsourcing&&entrepreneurial
entrepreneurialopportunities
opportunities

Ethnicity
Ethnicity
2010
2010

Ethnic
Ethnicminority
minority
share
shareofof workforce
workforce
exceeds
exceeds30%
30%
Up
Upfrom
from22%
22%inin
1990
1990&&18%
18%inin1980
1980

By
By 2050
2050

Close
Closetoto50%
50%ofofUS
US
population
populationwill
willbe
be
non-Caucasian
non-Caucasian

By
By 2025
2025

African-Americans
African-Americanswill
will
represent
represent14%
14%ofofpopulation
population
Up
Upfrom
from12%
12%inin1994
1994
Hispanics
Hispanicswill
willrepresent
represent17%
17%
ofof population
population
Up
Upfrom
from10%
10%inin1994
1994
Asians
Asians&&Pacific
PacificIslanders
Islanders
will
willrepresent
represent8%
8%ofof
population
population
More
Morethan
thandouble
doublefrom
from1994
1994

Managing
Managing Workplace
Workplace Diversity
Diversity
Understanding
Understanding&
&
appreciating
appreciatingdiversity
diversity

Critical
Criticaltotoeffectively
effectively
marketing
marketingtotoethnic
ethnic&&minority
minority
groups
groups
Promoted
Promotedby
byhaving
having diverse
diverse
workforce
workforceatatall
all levels
levels
Helps
Helpsensure
ensurehiring
hiring&&
promotion
promotiondecisions
decisionsare
are
unbiased
unbiasedby
byperson
person
differences
differences

Diversity
Diversitymanagement
management
programs
programsor
orinitiatives
initiatives

Must
Mustbe
beintegrated
integratedwith
with
organizations
organizationsmission
mission&&
objectives
objectives
Help
Helpkey
keydecision
decisionmakers
makers
identify
identifydiversitys
diversitysbenefits
benefitstoto
organization
organization
Make
Makecritical
criticaldecisions
decisionsabout
about
implementing
implementingoptimal
optimal
program/initiative
program/initiativecontingent
contingent
on
onorganization
organization&&its
itspeople,
people,
mission
mission&&culture.
culture.

Exhibit
Exhibit2.3
2.3

Individual
Individual Dimensions
Dimensions of
of Diversity
Diversity

Strategic
Strategic Management
Management of
of Diversity
Diversity

Determine
Determinewhy
whydiversity
diversityisisimportant
important
Articulate
Articulatehow
howdiversity
diversityrelates
relatesto
tomission
mission&
&strategic
strategic
objectives
objectives
Define
Definediversity
diversity&
&determine
determinehow
howinclusive
inclusiveits
itsefforts
effortswill
will
be
be
Make
Makeaadecision
decisionas
asto
towhether
whetherspecial
specialefforts
effortsshould
shouldbe
be
extended
extendedto
toattract
attractdiverse
diverseworkforce
workforce
Assess
Assesshow
howexisting
existingemployees,
employees,customers,
customers,&
&other
other
constituencies
constituenciesfeel
feelabout
aboutdiversity
diversity
Determine
Determinespecific
specifictypes
typesof
ofdiversity
diversityinitiatives
initiativesthat
thatwill
will
be
beundertaken
undertaken

Ethical
Ethical Behavior
Behavior
Many
Many employers
employers are
are now
now considering
considering ethics
ethics and
and
ethical
ethical behavior
behavior in
in light
light of
ofmajor
major bankruptcies,
bankruptcies,
scandals
scandals and
and business
business meltdowns.
meltdowns. However,
However,
ethics
ethics are
are subject
subject to
to personal
personal values
values and
and
convictions.
convictions.
Common
Common ethical
ethical concerns
concerns for
for HR
HR include
include

off-duty
off-dutybehavior
behavior
ownership
ownershipofofwork
work
non-compete
non-competeclauses
clauses

Sarbanes-Oxley
Sarbanes-Oxley Act
Act of
of 2002
2002
provides
provides sweeping
sweeping measures
measures to
to control
control deception
deception in
in
accounting
accounting and
and management
management practices
practices by
by
increasing
increasinggovernment
governmentoversight
oversightofoffinancial
financialreporting
reporting
holding
holdingsenior
seniorexecutives
executivesmore
moreresponsible
responsiblethat
thatpreviously
previously
protecting
protectingwhistle
whistleblowers
blowers

Codes
Codes of
of Ethics
Ethics
Many
Manyorganizations
organizationsand
andsome
someindustries
industrieshave
havedeveloped
developed
their
theirown
owncode
codeof
ofethics.
ethics. The
TheSociety
Societyof
ofHuman
HumanResource
Resource
Management
Management(SHRM)
(SHRM)has
hasdeveloped
developedsuch
suchaacode
codefor
forHR
HR
professionals.
professionals. This
Thiscode
codepresents
presentscore
coreprinciples,
principles,intent
intent
and
andguidelines
guidelinesin
inaanumber
numberof
ofareas,
areas,including:
including:
Professional
ProfessionalResponsibility;
Responsibility;Professional
ProfessionalDevelopment;
Development;
Ethical
EthicalLeadership;
Leadership;Fairness
Fairnessand
andJustice;
Justice;Conflicts
Conflictsof
of
Interest;
Interest;and
andUse
Useof
ofInformation.
Information.
Exhibit
Exhibit2.6
2.6provides
providessome
someguides
guidesfor
fordeveloping
developingaacode
codeof
of
ethics
ethicsor
orcode
codeof
ofconduct.
conduct.

Exhibit
Exhibit2.6
2.6

Guidelines
Guidelines for
for aa Code
Code of
of
Ethics/Conduct
Ethics/Conduct

Sustainability
Sustainability
Sustainability
Sustainability (and
(and social
social responsibility
responsibility in
in general)
general)
take
take aa more
more macro
macro approach
approach to
to managing
managing an
an
organizations
organizationsrelationship
relationship with
with its
its external
external
environment.
environment. Organizations
Organizations are
are being
being
increasingly
increasingly expected
expected to
to consider
consider the
the effects
effects of
of
their
their operations,
operations, decision
decision and
and business
business on
on the
the
social
social and
and natural
natural environment.
environment. General
General Electric
Electric
has
has developed
developed aa model
model program
programrelated
related to
to
sustainability
sustainability and
and Gap,
Gap, Inc.
Inc. has
has set
set standards
standards for
for
offshoring
offshoring of
ofits
its manufacturing
manufacturing operations.
operations.

Reading
Reading2.1
2.1

Stereotype
Stereotype Threat
Threat at
at Work
Work
Stereotype
Stereotypethreat
threatisisdefined
definedas
asthe
thefear
fearof
ofbeing
beingjudged
judged
according
accordingto
toaanegative
negativestereotype.
stereotype. Even
Evenififan
anemployer
employer
were
weresuccessful
successfulin
inhiring
hiringonly
onlynon-prejudiced
non-prejudicedmanagers,
managers,
stereotypes
stereotypesstill
stillexist
existin
inthe
thebroader
broadersociety
societyand
andhence,
hence,the
the
workplace.
workplace. Stereotype
Stereotypethreat
threathas
hasbeen
beendocumented
documentedacross
across
aawide
widerange
rangeof
ofdiversity
diversitydimensions
dimensionsand
andperformance
performance
domains.
domains. ItItextends
extendsbeyond
beyondthose
thosein
intraditionally
traditionally
disadvantaged
disadvantagedgroups
groupsto
tothose
thosewho
whoare
aremembers
membersof
ofhighhighstatus
statusgroups.
groups. Stereotype
Stereotypethreat
threataffects
affectseveryone
everyoneas
asevery
every
individual
individualisisaamember
memberof
ofatatleast
leastone
onegroup
groupabout
aboutwhich
which
stereotypes
stereotypesexist.
exist.

Reading
Reading2.1
2.1

Stereotype
Stereotype Threat
Threat at
at Work
Work
Based
Based on
on the
the conditions
conditions of
of
task
task difficulty
difficulty
personal
personal task
task investment
investment
Stereotype
Stereotype threat
threat isis more
more likely
likely to
to influence
influence
performance
performance on
on difficult,
difficult, challenging
challenging tasks
tasks which
which
are
are at
at the
the limits
limits of
of aa persons
personsabilities.
abilities. ItIt isis also
also
more
more likely
likely to
to influence
influence performance
performance when
when an
an
individual
individual in
in more
more personally
personally involved
involved with
with aa task
task
and
and hence,
hence, cares
cares about
about performance.
performance.

Reading
Reading2.1
2.1

Stereotype
Stereotype Threat
Threat at
at Work
Work
Can
Canbe
bereduced
reducedby
byteaching
teachingaffected
affectedemployees
employeesbehavioral
behavioralstrategies
strategies
for
forimproving
improvingperformance
performanceand
andcounteracting
counteractingnegative
negativestereotypes
stereotypes
Can
Canalso
alsobe
beeliminated
eliminatedby
byrefuting
refutingor
ordiminishing
diminishingthe
thestereotype
stereotype
relevance
relevanceof
ofaagiven
giventask
task
Employees
Employeescan
canalso
alsorerereminded
remindedabout
aboutexternal
externalfactors
factorswhich
whichmight
might
constrain
constrainperformance
performancesuch
suchas
asaadifficult
difficultclient,
client,limited
limitedresources
resourcesor
oraa
tight
tightdeadline
deadline
Can
Canalso
alsobe
beminimized
minimizedby
bypresenting
presentingaarole
rolemodel
modelwho
whocontradicts
contradictsthe
the
stereotype
stereotype
Mangers
Mangerscan
canactually
actuallyuse
usestereotype
stereotypethreat
threattotocreate
createmore
morediversitydiversityfriendly
friendlywork
workenvironments.
environments.Stereotypes
Stereotypesshould
shouldbe
beacknowledged
acknowledgedand
and
addressed
addresseddirectly
directlyand
andmanaged
managedby
byfocusing
focusingon
onaalarger
largercontext
contextor
or
environment.
environment.

Reading
Reading2.2
2.2

The
The Ethics
Ethics of
of Human
Human Resource
Resource
Management
Management
Human
Human resource
resource managers
managers typically
typically face
face three
three kind
kind
of
of ethical
ethical problems
problems

need
needfor
fordiscernment
discernmentorordetermining
determiningthe
theright
rightthing
thingtotodo
doininaa
given
givensituation
situation
conflict
conflictbetween
betweenwhat
whatthe
theHR
HRmanagers
managersfeels
feelsisisright
rightand
and
what
whatthe
theemployer
employerasks
asksbe
bedone
done
conflicts
conflictsofofinterest
interestwhere
wherethe
theHR
HRmanagers
managerspersonal
personalbeliefs
beliefs
differ
differfrom
fromthe
theresponsibility
responsibilityofofacting
actingas
asan
anagent
agentfor
forthe
the
employer
employer

Reading
Reading2.2
2.2

The
The Ethics
Ethics of
of Human
Human Resource
Resource
Management
Management

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

Reading
Reading2.2
2.2

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

Reading
Reading2.2
2.2

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

Reading
Reading2.2
2.2

The
The Ethics
Ethics of
of Human
Human Resource
Resource
Management
Management

Ethical
Ethical dilemmas
dilemmas may
may also
also be
be present
present relative
relative
to
to employee
employee monitoring,
monitoring, progressive
progressive
discipline
discipline and
and termination,
termination, balancing
balancing costs
costs
of
of benefits
benefits with
with employees
employeesneeds
needs and
and
choice
choice and
and measures
measures used
used to
to retain
retain
employees
employees

Reading
Reading2.3
2.3

Does
Does itit Pay
Pay to
to be
be Green?
Green?
The
The conventional
conventional wisdom
wisdomsurrounding
surrounding
environmental
environmental protection
protection and
and responsibility
responsibility isis that
that
itit comes
comes at
at aa significant
significant additional
additional cost
cost to
to an
an
organization
organization which
which may
may erode
erode efficiency
efficiency and
and
competitiveness.
competitiveness. However,
However,improving
improving an
an
organizations
organizationsenvironmental
environmental performance
performance can
can
actually
actually lead
lead to
to improved
improved financial
financial performance
performance
rather
rather than
than an
an escalation
escalation of
of costs
costs and
and erosion
erosion of
of
profits.
profits.

Reading
Reading2.3
2.3

Does
Does itit Pay
Pay to
to be
be Green?
Green?
Enhanced
Enhanced financial
financial performance
performance can
can be
bethe
the result
result of
of

better
betteraccess
accesstotocertain
certainmarkets
markets
differentiated
differentiatedproducts
products
the
thesale
saleofofpollution-control
pollution-controldevices
devices
enhanced
enhancedrisk
riskmanagement
managementand
andrelations
relationswith
withexternal
external
stakeholders
stakeholders
decreased
decreasedcosts
costsofofmaterial,
material,energy
energyand
andservices
services
decreased
decreasedcosts
costsofofcapital
capital
decreased
decreasedcost
costofoflabor
labor

Reading
Reading2.3
2.3

Does
Does itit Pay
Pay to
to be
be Green?
Green?