Exploring human resource management roles in corporate social responsibility: the CSR-HRM...

Exploring human resourcemanagement roles in corporatesocial responsibility: theCSR-HRM co-creation modelDima R. Jamali1, Ali M. El Dirani2* andIan A. Harwood3

1. Olayan School of Business, American University of Beirut, Beirut, Lebanon2. Business Management Department, American University of Science and Technology, Beirut, Lebanon3. Southampton Business School, University of Southampton, Southampton, UK

Formulating and translating corporate social responsibility (CSR) strategy into actual managerial practicesand outcome values remain ongoing challenges for many organizations. This paper argues that the humanresource management (HRM) function can potentially play an important role in supporting organizations toaddress this challenge. We argue that HRM could provide an interesting and dynamic support to CSRstrategy design as well as implementation and delivery. Drawing on a systematic review of relevant strategicCSR and HRM literatures, this paper highlights the important interfaces between CSR and HRM anddevelops a conceptual model, the CSR-HRM co-creation model, which accounts for the potential HRM rolesin CSR and identifies a range of outcome values resulting from a more effective integration of the role ofHRM within CSR. The paper concludes with relevant theoretical and managerial recommendations thatadvance our understanding of the potential interfaces between HRM and CSR and how HRM can support asystematic and progressive CSR agenda.

Introduction

As corporate social responsibility (CSR) continuesto gain traction in management circles, its transla-tion into actual managerial practices and perfor-mances remains a challenge for many organizations(Carroll & Shabana 2010; Jamali & Neville 2011;Aguinis & Glavas 2012). An emerging concern inmanagement research and business practice is how to

enhance our understanding of the micro-foundationsof CSR (Morgeson et al. 2013). This would enablemanagers and decision makers to design CSR initia-tives that leverage internal competencies as they seekto contribute more constructively to an improvedworkplace environment, positive perceptions ofthe firm, and meeting the expectations of internaland external stakeholders (Morsing & Perrini 2009;McWilliams & Siegel 2011, Orlitzky et al. 2011). Thisrequires, in turn, strengthening the links betweenCSR and other managerial functions, organizationalstrategies, and outcome values more broadly.

Contributing to this debate, we argue that thehuman resource management (HRM) function can

*Present Address: American University of Science and Technology(AUST), Ashrafieh, AUST Bldg A, 6th Floor, Alfred NaccashAvenue, POB: 16–6452. Phone number: 0096170326013.

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Business Ethics: A European ReviewVolume 24 Number 2 April 2015

© 2014 John Wiley & Sons Ltd, 9600 Garsington Road,Oxford OX4 2DQ, UK and 350 Main St, Malden, MA 02148, USA

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potentially provide both strategic and operationalsupport to CSR and that a closer integration ofthe two can produce synergistic outcome valuesas understood within the context of a co-creationprocess. Given its commitment to human and orga-nizational development, we see important interfacesbetween HRM and CSR that have not beensufficiently and systematically explored (Preuss et al.2009; Greenwood 2013). Although many organiza-tions have established stand-alone CSR departmentsand appointed CSR managers to improve thedesign and implementation of CSR strategies, thepotential role and involvement of HRM remainobscure (Matten & Moon 2008; Jamali & El Dirani2013). While not claiming that HRM’s roleis or should be the only condition for CSR tooperate successfully, we aim to explore how HRM’scapabilities, resources, and expertise such as thosedeveloped and honed in the areas of recruitment andselection, communication, training and develop-ment, learning and development, performance man-agement, career development, and compensationand benefits (Mello 2011) could potentially beleveraged to support the design of thoughtful andstrategic CSR initiatives and their successfulimplementation.

Our aim for this paper is to contribute to thisdebate by examining the role of HRM in CSR in thecontext of a co-creation process. Simply stated,co-creation as an approach recognizes the value ofthe active engagement of multiple functions andstakeholders in creating outcomes that are mutuallysubstantive and enriching (Prahalad & Ramaswamy2004; Lee et al. 2012). We propose a conceptualmodel featuring the potential synergies and affinitiesbetween CSR and HRM, hence supporting scholarsand practitioners to improve their understanding oftheir interfaces and the potentially enhancedoutcome values. In approaching this inquiry, westart by providing the adopted definition of CSR,followed by a systematic methodology analyzing therelevant literature, backgrounds, and perspectiveswithin the CSR, HRM, and co-creation fields. Ourpropositions are then detailed and supported withexamples that capture the multifaceted potentialroles of HRM in CSR and the outcome values thatcan be co-created through a better integration of thetwo functions.

Definition of CSR

We begin with our definition of CSR, which conveysthe lens within which we understand the role ofHRM in CSR and its potential co-created outcomevalues. We understand CSR as the social obligationto impact society beyond pure profit maximizationobjectives (Erondu et al. 2004; Jamali & Neville2011). To achieve its intended objectives, we believethat CSR needs to be approached as a plannedresponsive approach that is institutionalized withinthe organization and translated into and alignedwith managerial practices including HRM practices(Wood 1991, 1999; Gray 2001; Jenkins 2009;Painter-Morland 2010). Hence, we understand CSRas a planned process with strategic applications andlinks to the organizational mission and corecompetences (Burke & Logsdon 1996; Carroll &Shabana 2010; Porter & Kramer 2011). For academ-ics as well as practitioners, the challenge that thisconception presents is how to move CSR into anorthodox managerial practice beyond pure rhetoricand ideology, and thus build a case for CSRas a strategic capability (Matten & Moon 2008;Lindgreen et al. 2009; Orlitzky et al. 2011; Aguinis &Glavas 2012). What matters beyond the written andstated CSR intentions is how organizations can actu-ally translate their socially responsible principles intoeffective action and implementation. In this respect,we believe that HRM has an important role to playin ensuring CSR’s successful deployment and imple-mentation (McWilliams & Siegel 2011).

The main argument is that HRM can potentiallyprovide a promising managerial framework that cansupport organizational efforts in translating CSRstrategies into practical managerial actions and out-comes, especially within the internal organizationalenvironment. HRM’s capabilities, expertise, andknowledge in executing organizational strategies,participating in change management support andfacilitation, and enhancing managerial efficiency andresponsibility for learning and training and develop-ment programs can potentially help in ensuring theintegration of CSR within an organization’s cultureand fabric. What makes this role all the more inter-esting and promising is that HRM is increasinglyconsidered as not only responsible for humanisticand social concerns but also for adding value in a


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business sense more broadly (Mello 2011; Mondy &Mondy 2012). HRM is increasingly called upon tocreate win–win outcomes for organizations and theirmultiple stakeholders through better alignment withthe mission and strategic direction of the organiza-tion (Guest 2011; Wright & McMahan 2011). HRMthus appears to be well positioned to be moreinvolved in helping firms to amplify their CSR effortsand achieve worthwhile and substantive outcomevalues.

With this broad framing in mind, we next presenta review of the strategic CSR, strategic HRM, andco-creation literatures. We then use this literaturecontext to derive our proposition for the role ofHRM in CSR, which is depicted in our CSR-HRMco-creation model. The model highlights thepotential for HRM involvement in CSR during theconception and strategy setting phase, the implemen-tation phase, and follow-up/continuous improve-ment phase. Our proposed CSR-HRM co-creationmodel thus helps advance our understanding of thepotential role of HRM in CSR within a strategicapproach along the entire CSR lifecycle (i.e. from thepoint of CSR inception to outcome assessment). Weconclude by offering practical recommendations thatare relevant to both HRM and CSR managers inadvancing the CSR agenda and meeting growingexpectations for CSR (Collier & Esteban 2007;Fenwick & Bierema 2008; Brammer et al. 2012;Greenwood 2013).

Strategic CSR literature

The strategic CSR approach recognizes that the eco-nomic benefits of organizations and the interests ofsociety can be intertwined to achieve competitivenesswithin stakeholder and market segments (Carroll &Shabana 2010; McWilliams & Siegel 2011). StrategicCSR comprises CSR initiatives that are intended toimprove the welfare of those in society and also tocontribute to organizations’ resources and competi-tive positioning (Du et al. 2010). The appeal of stra-tegic CSR cannot be easily discounted. The deliveryof shareholder value while also promoting societalvalue is certainly desirable for organizations and thisis possibly why the strategic strand of CSR has gath-ered momentum, with a large volume of studiesexploring the potential benefits provided through astrategic CSR alignment (Lockett et al. 2006;Orlitzky et al. 2011; Porter & Kramer 2011).

Strategic CSR entails formulating CSR strategiesthat are aligned with the strategy of the firm and cangenerate both short-term and long-term outcomevalues (Porter & Kramer 2011). One strategic CSRframework proposed by Burke & Logsdon (1996)sets out five key dimensions for CSR initiatives that,when strategically managed, can enhance competi-tive advantage and performance outcomes (seeFigure 1). These include: (1) voluntarism or discre-tionary decision making in the absence of externallyimposed compliance requirements; (2) centrality or

Figure 1: Strategic corporate social responsibility (CSR) and value creation (adapted from Burke & Logsdon 1996)


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the design of CSR initiatives that have a close fit tothe firm’s mission and objectives; (3) proactivityor the successful anticipation of emerging economic,technological, social, or political trends in theabsence of crisis; (4) visibility or the gaining of rec-ognizable credit by internal and/or external stake-holders; and (5) specificity or the ability to capture orinternalize the benefits of CSR programs. While thefirst three attributes focus on CSR planning andpositioning, the last two attributes accord attentionto the nature of outcomes produced or generated.This framework provides practical guidelines ordimensions for managers to design CSR initiativesthat pay off in the short or longer term.

Porter & Kramer (2006) advanced a differentmodel for strategic CSR that capitalizes on leverag-ing the unique resources and competence of the firminternally and matching those externally to the needsof the context. This strand of strategic CSR can beintegral to a company’s profitability and competitivepositioning according to the authors. Their proposedcontext-focused strategic CSR approach requiresfirms to use their unique attributes to address socialneeds in the corporate context so as to achieve aconvergence between social and economic goals.They further differentiate strategic CSR fromresponsive CSR with the former going beyond attun-ing to evolving stakeholder concerns and mitigatingadverse effects of corporate activities to carve out adistinctive and competitive niche for the firm. Sub-sequently, Porter & Kramer (2011) presented the cre-ating shared value (CSV) framework, linkingstrategic CSR and sustainable outcomes to a deeperappreciation of societal needs and a better under-standing of the true bases of company productivity(see Figure 2).

In a more generic model, Waddock et al. (2002)captured the entire strategic CSR lifecycle in theirtotal responsibility management (TRM) framework(see Figure 3). TRM involves three major com-ponents, namely: inspiration, integration, andinnovation/improvement. Inspiration involves thevision setting and crafting of strategic CSR objec-tives in the context of management commitment andleadership processes. Integration refers to how thisresponsibility vision is integrated or institutionalizedinto strategies, employee relationships, and operat-ing practices and management systems. The innova-

tion component is concerned with the crafting of acontinual improvement orientation and the estab-lishment of appropriate metrics for gauging suchimprovement. While not generally considered a stra-tegic CSR framework or tool in the traditional sense,this TRM model is nevertheless useful in highlight-ing the main milestones in a strategic CSR lifecycle,consisting of inception or inspiration, integration, orinstitutionalization and continuous improvementand innovation.

We argue in this paper that HRM could poten-tially contribute to the formulation of the strategicCSR vision, the translation of CSR into the actiondimension, and enriching the CSR learning processand continuous improvement as per the TRM modelproposed. HRM can also play an important role inensuring that CSR initiatives are aligned with the keydimensions of voluntarism, centrality, proactivity,visibility, and specificity as per the Burke & Logsdon(1996) framework. Moreover, HRM can assume animportant role in tapping and directing internalefforts to leverage the unique resources and compe-tence of the firm in pursuit of creating CSV as pro-posed by Porter & Kramer (2006, 2011). As we makeclear in the following sections, core HRM domainsand sub-functions can be relevant in this respect inareas such as training and development, recruitment,

Figure 2: Strategic corporate social responsibility (CSR)and shared value (adapted from Porter & Kramer 2006,

2011)



compensation, and communication and employeerelations to generate mutually added value for boththe organization and its various stakeholders.Inspired by the concepts of co-creation and thevarious strategic CSR models presented above, wesee the interaction between CSR and HRM and therole of HRM in CSR as an opportunity to createsustainable outcomes for the firm and its variousstakeholders.

Strategic HRM literature

We also draw on the strategic HRM literature andmore specifically on the HRM strategic partnershipmodel presented by Ulrich in 1997, with subsequentdevelopments in 2001 and 2005. The HRM partner-

ship model has marked an important transformationin the traditional assumptions and perceptions ofHRM’s roles and constituted a significant advance inHRM research (Caldwell 2001; Ashton et al. 2004;CIPD 2011) (see Figure 4).

In this model, human resource (HR) managers areexpected to restructure the delivery of their services,focusing more on deliverables and outcomes. Thefour outcomes that were advanced as being impor-tant revolve around strategy execution, administra-tive efficiency, employee contribution, and capacityfor change. This is illustrated in the model inFigure 4 through a focus on two main dimensions,namely processes and people, as well as the dimen-sions of future strategic focus and day-to-day opera-tional focus. The four outcomes resulting from theintersection of these axes correspond in turn to the

Figure 3: Total responsibility management (adapted from Waddock et al. 2002)



four key HRM roles described below, which areposited as needed for HRM to drive value creationand meet the challenges of a rapidly changing busi-ness environment. A summary of those four roles isalso provided in Table 1.

1. Strategic Partner• Focuses on activities aimed at aligning HRM

strategies with the general organizational strat-egy and successfully executing this businessstrategy.

• Involves translating business strategies intoHRM practices or priorities and as a result,helps achieve business objectives, adapt tochange, meet customers’ needs, and increasefinancial performance through the deliverableof effective strategy execution.

2. Administrative Expert• Involves the design and delivery of HRM func-

tions (for staffing, training, appraising, manag-ing the flow of employees) in an efficientmanner (Conner & Ulrich 1996; Ulrich 1997).

• Although this role is a traditional one and itssignificance has been downplayed with therecent focus on strategic HRM, ‘its successfulaccomplishment continues to add value to abusiness’ (Ulrich 1997: 27) and constantlyimproves organizational efficiency by examin-ing, reengineering, and improving HRM func-tions, as well as reducing costs.

3. Employee Champion• Focuses on managing employee contribution

by attempting to maximize employee commit-ment and competence.

• Is concerned with finding methods to take careof the daily concerns and needs of all employeesand providing employees with the appropriatebalance of resources to gratify these needs andperform efficiently.

4. Change Agent• Involves helping and managing to build capac-

ity for transformation and change in the orga-nization.

• As change agents, HRM professionals shouldhelp identify and implement various roles andaction plans for managing, adapting, andresponding to change, while at the same timeremaining sensitive to and respecting the tradi-tional values and past history of the organiza-tion (Ulrich 1997).

The strategic partnership model accounts forHRM’s valuable role across the entire businesslifecycle (Boxall & Purcell 2008). It presents a solidproposition for HRM as a strategic partner withvaluable contributions to business strategy definitionand supporting cultural change and stakeholderengagement functions with a focus on leveragingemployees’ engagement and contribution (Wrightet al. 2001; Newbert 2007). With its systematic,structural approach, this landmark and pioneeringmodel has a significant impact in understanding thestrategic influence and contributions of HRMbeyond administration tasks and short-term rangeimpacts (Colbert 2004; Becker & Huselid 2006). Theway it is laid out and designed, the model presentsinteresting taxonomy and interrelated roles, objec-tives, and outcome values, which moves HRM fromthe operational level to the long-term strategic level.As a strategic player, HRM is expected to contributeto business strategy definition and design and thenmove in a later stage to assist in the implementationof strategy through efficient delivery and enhancingstakeholder’s contribution especially employees.

Going back to the very beginning of our paper, wementioned that the role of HRM is extremely impor-tant in moving CSR into the action dimension andensuring its strategy implementation and outcome

Figure 4: Strategic human resource management (HRM)partnership model (adapted from Ulrich, 1997: 24)



value delivery. The strategic HRM partnershipmodel serves our quest in this paper as it supports uswith the role contexts, objectives, applications, anddeliverables that we see best serve the synthesis anddynamics of the role of HRM in CSR. We see thatthese HRM roles constitute a practical and system-atically structured action dimension that could serveCSR strategy design and implementation. Thismodel guides HRM from the very early stage of CSRstrategy design all the way through implementationwith clearly defined role objectives and detailed areasof contributions, and this is what will be explainedlater especially in the section on CSR implementa-tion and in Table 4.

CSR-HRM affinities and the notionof co-creation

The increasing interfaces and convergence betweenCSR and HRM have been noted in recent literature,although this area of research continues to be con-ceptually underdeveloped (Buyens & De Vos 2001;Zappalà 2004; Branco & Rodrigues 2006; Orlitzky &Swanson 2006; Wilcox 2006; Fenwick & Bierema2008; Strandberg 2009; Ehnert & Harry 2011;Greenwood 2013). An important question to beraised in this context is why make the case for pro-posed roles for HRM in CSR and what added valuecan HRM potentially bring into CSR? To answerthis question, we must go back to the fundamentalunderstanding of CSR as a concept that needs inte-

gration with organizational processes and systematicanchoring in human capital strategies and relation-ships with stakeholders (Carroll & Shabana 2010;McWilliams & Siegel 2011). Accordingly, beyondnomenclature, what is crucially important in relationto CSR is to gain a better understanding of howorganizations interpret and translate CSR principlesinto managerial actions and practices through thesystematic leveraging of organizational resources,including human resources. This is where the contri-bution of HRM to CSR could possibly be valuable,and any proposed role for HRM in CSR couldbenefit from building on CSR’s implementationchallenges and integration with business operations,as well as mainstream mission and strategic objec-tives as highlighted earlier.

We argue in this paper that throughout its func-tions and responsibility areas such as recruitmentand selection, training and development, perfor-mance management, rewards and compensation,talent management, career planning, and retentionmanagement, HR managers can provide muchneeded support in the context of CSR. We are notsuggesting that HRM should exclusively take thelead or replace the role of CSR managers. Instead,we are examining how HRM can potentially contrib-ute to CSR and how to better leverage the obvioussynergy between the two functions. While HRM hastraditionally been inwardly focused and CSR hastraditionally been externally focused, the two func-tions overlap in terms of the key internal dimensionsof CSR (Jamali et al. 2008). Examples include areas

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Table 1: Definition of HRM’s four roles (adapted from Ulrich 1997: 24)

Role Deliverable/outcome Metaphor role ActivityManagement of strategic

human resourcesExecuting strategy Strategic partner Aligning HRM and business strategy:

‘organizational diagnosis’Management of firm

infrastructureBuilding an efficient

infrastructureAdministrative expert Reengineering organization

functions: ‘shared services’Management of employee

contributionIncreasing employee

commitment andcapability

Employee champion Listening and responding toemployees: ‘providing resources toemployees’

Management of transformationand change

Creating a renewedorganization

Change agent Managing transformation andchange: ‘ensuring capacity forchange’

HRM, human resource management....................................................................................................................................................................



such as employee motivation and engagement,ethical awareness and conduct, and social volunteer-ing activities, which could result in improved busi-ness outcomes that can have positive impacts forboth internal and external stakeholders (Redington2005; Schoemaker et al. 2006; Greenwood 2013).

Affinities between the two functions are increas-ingly noted and reflected in recent CSR standards,which explicitly refer to HRM components.For example, many HRM-specific guidelines areincluded in the standards of the Global ReportingInitiative, a nonprofit organization that promotesreporting by organizations on their economic, envi-ronmental, and social performance (see Table 2).Another example is the Reputex Social Responsibil-ity Ratings – an Australian social responsibility mea-surement. Two of its four categories (social impactand workplace practices) reflect concern for people

and have direct relevance to HRM. The latterincludes employee involvement, fair and reasonablerewards and conditions, a positive commitment todiversity and work–life balance, industrial relationsarrangements based on mutual respect, occupationalhealth and safety arrangements, executive remunera-tion that is fair and equitable, independently verifi-able performance measurement and evaluationsystems, and training and development policies.

Similarly, the HRM literature has recently alludedto the importance of CSR and the need for HRMscholars to accord systematic attention to CSR(Preuss et al. 2009; Mello 2011; Mondy & Mondy2012). The proposition here is that CSR and HRMtheories have developed as two separate bodies ofresearch and that there is a need for more systematicresearch linking both strands of literature. HRM isincreasingly recognized as the function with uniqueknowledge and skills to support and drive change inpeople management practices and consider thepeople implications of changes to strategy and poli-cies (Strandberg 2009; CIPD 2011). This alignmentneeds to be systematically leveraged as we demon-strate in this paper, particularly that the HRM func-tion has well-developed capabilities, knowledge, andskills in relation to employee engagement, organiza-tional learning, and culture change, which CSRinvariably needs. In addition, HRM and CSR sharea common concern with responsible employmentpractices (Fenwick & Bierema 2008; Ehnert & Harry2011) as well as individual and organizationalgrowth and revitalization (Collier & Esteban 2007).

This interest in the potential affinities of HRM andCSR as presented in this paper is anchored in theconcept of co-creation. Introduced in 2004 byPrahalad and Ramaswamy, co-creation is posited asa new and important advance in the field of innova-tion (Hatch & Schultz 2010). Anchored in four foun-dational blocks, namely dialog, access, transparency,and risk, co-creation expands opportunities for valuecreation by providing room for the inclusion ofvarious stakeholders in the value creation process(Prahalad & Ramaswamy 2004). In other words, byleveraging interactivity and deep engagement andproviding transparent access to information,co-creation can potentially alleviate risks or prob-ability of harm and maximize positive outcomes orexternalities associated with organizational action

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Table 2: Affinities between GRI indicators and HRMdimensions (adapted from Global Reporting

Initiative, 2011)

GRI indicator HRM dimensionLabor practices anddecent workperformanceindicators

• Employment• Labor/management relations• Occupational health and safety• Training and education• Diversity and equal opportunity

Human rightsperformanceindicators

• Investment and procurementpractices

• Nondiscrimination• Freedom of association and

collective bargaining• Abolition of child labor• Prevention of forced and

compulsory labor• Complaints and grievance

practices• Security practices• Indigenous rights

Society performanceindicators

• Community• Compliance

GRI, Global Reporting Initiative; HRM, human resourcemanagement..............................................................................



(Prahalad & Ramaswamy 2004). Through its simpleaccentuation of the value of the active engagement ofmultiple functions and stakeholders in creating out-comes that are mutually substantive and enriching(Prahalad & Ramaswamy 2004; Lee et al. 2012), webelieve that co-creation has relevance well beyondthe fields of branding and marketing.

We argue in this paper that the concept ofco-creation has far-reaching strategic connotationsbecause it focuses on the necessity of mutual engage-ment for creating added value and innovative orga-nizational outcomes. In this particular paper, weprovide a concrete example of the co-creationprocess, in relation to how CSR and HRM canco-create values and outcomes that are meaningfulfor organizations as well as their stakeholders.Co-creation hence provides a guiding principle orroadmap for the CSR-HRM co-creation model andthe various propositions we make in the remainderof this paper. Our model highlights a range of pos-sible HRM roles and interventions and illustrates the

potential added value from an effective partneringand integration of HRM and CSR in the form ofsustainable competitive outcome benefits.

The CSR-HRM co-creation model

There is significant potential for greater integrationof HRM and CSR in the context of a co-creationframework. The CSR-HRM co-creation model pro-posed in Figure 5 reconciles and integrates the keyelements of the strategic CSR and strategic HRMliteratures, which could result in sustainable out-comes or advantages for the organization and itsinternal and external stakeholders. The model mapsthe HRM roles over three important milestones of atypical strategic CSR lifecycle as suggested byWaddock et al. (2002), namely, (1) the inception andstrategy setting phase; (2) enacting CSR implemen-tation; and (3) engaging in learning and improve-ment through continuous assessment of outcomes

Figure 5: The CSR-HRM co-creation model. CSR, corporate social responsibility; HRM, human resource management



and adjustment of strategy making and implementa-tion accordingly.

CSR strategizing and the role of HRM

The first step is related to developing the strategicCSR vision, scope of activities, targeted stakehold-ers, and desired objectives, which in turn shape thepossible leveraging of HRM capabilities and exper-tise to support CSR objectives. Indeed, we posit thatthe nature of the CSR objectives is important inguiding the role of HRM in CSR. It could be that theCSR vision focuses mainly on the internal organiza-tional environment, with a specific interest in raisingemployees’ awareness of CSR, enacting a healthywork environment, and building an internal or exter-nal volunteering culture. This type of CSR focus islikely to be fundamentally different from, forexample, environmental stewardship, which wouldrequire a different role for HRM. Thus, a strategicdirection in relation to CSR is essential to guide thepotential contributions of HRM in the context of theCSR-HRM co-creation model. There is clearly a rolefor HRM to be proactively engaged in co-definingthe CSR strategy, mission, and objectives that bestleverage the unique competencies and capabilities ofthe firm while ensuring alignment with business out-comes and objectives.

In particular, we see that there is an importantsupporting role for HRM, as a strategic partner, toensure that CSR meets at least three of the keydimensions outlined by Burke & Logsdon (1996),namely (1) voluntarism or discretionary decisionmaking; (2) centrality or the design of CSR initia-tives that have a close fit to the firm’s mission andobjectives; and (3) proactivity or the successfulanticipation of emerging economic, technological,social, or political trends in the absence of crisis.Drawing on Porter & Kramer (2006, 2011), there isalso an important role for HRM in the inceptionphase in outlining how specific CSR objectives orinitiatives can leverage the unique resources andcompetence of the firm internally. Therefore, fromboth the strategic CSR and strategic HRM perspec-tives, it is clear that a successful partnership betweenHRM and CSR in the initial CSR inception phase iskey. This should ensure that CSR strategies leverageinternal capabilities and are designed proactively,

voluntarily, and in alignment with the strategicmission of the organization.

We argue that the HRM strategic partner role isparticularly important in the CSR inception andstrategizing phase. In this respect, HRM can ensurethat CSR priorities and their human resource impli-cations are part of leadership decision making.Acting in the capacity of strategic architect, HRMneeds to help diagnose and develop what is requiredto derive CSR strategies that are meaningful, proac-tive, and aligned with the mission of the organiza-tion. It needs to leverage its role in intelligencegathering and understanding of good people man-agement practice to highlight the relevance of theCSR priorities identified from a business perspective,and identify the resources that will be needed fortheir successful deployment. In their role as strategicpartners, HR managers can thus contribute to defin-ing the CSR vision, outlining the relevant CSR goalsthat meet the criteria of voluntarism, centrality, orproactivity and identifying relevant stakeholders towhich the CSR strategy should be primarily tailored.

CSR implementation and the role of HRM

The most critical area for the potential involvementof HRM in CSR corresponds to the domain of CSRimplementation. This constitutes the core actiondimension in our suggested CSR-HRM co-creationmodel whereby we build on Ulrich’s (1997) frame-work, making use of the roles of strategic partner,change agent, employee champion, and administra-tive expert and their specific applications in relationto CSR. As illustrated in Figure 5, each of these fourHRM roles can be leveraged successfully in thecontext of CSR implementation, to ensure that CSRimplementation is well supported, resonates withemployees, and is integrated with internal workingsystems and policies.

All four HRM roles pertaining to strategicpartner, employee champion, change agent, andadministrative expert are particularly relevant in theimplementation phase. Table 3 summarizes thedomains of HRM’s added value in relation tovarious aspects of CSR implementation and poten-tially corresponding HRM roles (Buyens & De Vos2001; Strandberg 2009; Ehnert & Harry 2011;Greenwood 2013). This detailed illustration provides



examples of where HRM can potentially play animportant role in relation to CSR by helping indefining and executing some aspects of the CSRstrategy, leveraging employees’ contribution intoCSR, helping the organization in facilitating theCSR change, and aiding in the efforts to deliver CSRmore efficiently.

In their role as strategic partners, HR managerscan potentially contribute to defining the CSR

vision, integrating CSR within HRM’s mission andfunctions, outlining the important CSR goals andmetrics, and identifying relevant stakeholders towhich the CSR strategy should be primarily tailored.A strategic partner role as discussed above assumesthat HR managers can play an important role inliaising with top leadership to drive forward andreinforce the CSR agenda. As an extension of thisrole, HRM can also give close and systematic

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Table 3: HRM’s added value roles in CSR (Buyens & De Vos 2001; Zappalà 2004)

HRM’s domains of contribution into CSR RoleHelps define and execute CSR Strategic partner• Contributing to the development of CSR• Suggest CSR scopes from HRM point of view• Integrating CSR into HRM’s mission and functions• Developing plans to gather information about CSR orientations from stakeholder

perspectives with specific focus on employees

Helps create CSR change Change agent• Understanding how CSR change will affect other stakeholders (customers, investors,

community)• Increasing employees’ sensitivity and readiness to interact with the change to incorporate

CSR• Introducing initiatives that promote CSR objectives and overcome resistance to change

and other barriers• Raising managers’ awareness to CSR change through training and development

Helps increase employee contribution to CSR Employee champion• Increasing employee engagement and motivation for CSR• Sharing and communicating the value of CSR to employees from early recruitment stages

to performance management to compensation and rewarding to retention plans• Enhancing employee education and awareness about CSR• Providing initiatives that help employees serve the community, such as social volunteering

programs• Gathering/sharing information with employees in relation to CSR• Celebrating successful CSR activities with employees• Drafting and implementing employee codes of conduct

Helps deliver CSR efficiently Administrative expert• Setting CSR performance indicators and monitoring results to performance objectives

within the HRM performance management system• Dealing with social and legal issues associated with CSR practices once applicable from

an HRM perspectives and depending on HRM’s expertise and capabilities• Measuring and reporting CSR performance and bottom line pay off through HRM devices

and assessment tools• Measuring and reporting human capital metrics such as turnover, health and safety,

employee development, and diversity as part of wider social performance measurementacross the whole organization

CSR, corporate social responsibility; HRM, human resource management....................................................................................................................................................................



consideration to how to potentially align peoplemanagement practice in such a way to benefit bothHRM and CSR strategies in amplifying value addedand potential outcomes for both partners and for thebusiness as a whole.

The change agent role is also crucial in the CSRimplementation phase and is an important areawhere HRM could contribute directly. In this sense,HRM can potentially play a strategic role in raisingemployees’ awareness and readiness for any mana-gerial and cultural changes associated with imple-menting CSR within the organization. Engagingemployees and raising their sensitivity and knowl-edge about the strategic CSR vision of the organiza-tion are extremely important to enable them to adaptand contribute to the CSR change. Additionally,embedding CSR into the culture of the organizationis ultimately an example of a complex change man-agement process involving considerable skill atunderstanding the change involved, increasingemployee readiness, and coaching employees andmanagers.

The employee champion role is also very impor-tant from a CSR perspective. Here, we suggest thatHRM can potentially play an instrumental role inincreasing employees’ motivation, engagement, andcommitment to CSR. Employee contribution in CSRactivities could be more systematically leveragedthrough listening to their views about the CSR strat-egy of the organization and engaging them as part-ners in the CSR change process. HR managers canalso strengthen the relationship between the organi-zation and its employees by providing opportunitiesfor employees to express their views in relation toCSR. When employees feel that their contribution isrecognized, valued, and rewarded, their willingnessand commitment to achieve CSR goals are likely toincrease.

In their role as administrative experts, HR manag-ers can also potentially assist the organization todefine the required HRM infrastructure and capa-bilities for driving efficient CSR strategy delivery.For example, HR managers can prepare to deal withany social and legal issues associated with CSR andmonitor and report on core internal CSR dimensionssuch as diversity, equal opportunity, and occupa-tional health and safety issues. HR managers canaccordingly set some standards for expectations and

monitor and collect feedback on results. Working asadministrative experts, HR managers can thereforehelp manage the infrastructure of CSR planning andexecution to deliver effective and efficient supportfor CSR goals with the required HRM functions androles.

We further argue that HRM can contribute toCSR through its capabilities and expertise in HRMfunctions, including training and development,recruitment and selection, performance appraisal,and compensation (Orlitzky & Swanson 2006). Thisis illustrated in Table 4, which highlights the abilityof HRM to allocate and build the required resourcesand capabilities that enhance various aspects of CSRexecution. For example, within the recruitment andselection domain, HRM can add value throughattending to workforce diversity and hiring employ-ees who have specific personality traits. Within theperformance appraisal domain, HRM can use itsknowledge and capabilities and contribute to CSRand add value through formulating criteria based onboth economic and social performance objectives.Within the domain of compensation, HRM can addvalue through designing a pay system that rewardsand recognizes both economic and social perfor-mance, as well as rewarding employees for their par-ticipation in social volunteering activities. Within thetraining and development domain, HRM can addvalue through developing employees’ skills in effec-tive stakeholder engagement and communication.These interventions, which fall within the domain ofHRM, can ensure the alignment of incentives andprocesses with espoused CSR goals/objectives.

CSR evaluation and the role of HRM

In an environment where both CSR and HRM areincreasingly value driven and being held accountablefor outcomes, it is important to accord systematicattention to the expected outcomes from the integra-tion of the two functions. Assessing potential out-comes also helps complete the learning andimprovement process discussed by Waddock et al.(2002) through evaluating not only potential out-comes but also feeding the main highlights of theassessment process into the next phase of the strate-gic CSR cycle as illustrated in Figure 5. Variousstudies have examined relationships between HRM



and performance outcomes (e.g. Becker & Huselid1999; Buckley et al. 2001) or CSR and performanceoutcomes (Orlitzky et al. 2011), although very fewstudies have pondered the potential outcomes thatcould result from an effective integration of CSRand HRM and their implications for competitiveadvantage.

Particularly in evaluating and assessing the valueof the role of HRM in CSR, we argue that aresource-based view (RBV) lens together with prin-ciples of co-creation could be useful in this respect.

As a concept, the RBV has been introduced anddeveloped to describe how managing organizationalresources strategically can generate sustainable com-petitive advantages for the firm (Barney 1991). Theinception of the RBV approach contributed in turnto supporting the strategic HRM literature and itsconceptual development (Colbert 2004; Becker &Huselid 2006; Boxall & Purcell 2008; Guest 2011). Ina way, the RBV logic justifies expenditures in HRMareas such as training and development, talentmanagement, and employee involvement systems

...................................................................................................................................................................

Table 4: CSR embedded in HRM practices

HRM practicesRecruitment andselection

Performanceappraisal

Reward andcompensation

Training anddevelopment

CSR embedded inHRM practices

Hiring new recruitscapable ofcontributing to CSR

Screening new recruitswith knowledge andawareness andappreciation forCSR

Hiring new recruitscapable ofcontributing to CSRand, for example,with previousexperience involunteeringactivities

Include questions andcase studies aboutCSR within theinterview stages withcandidates

Include sections onCSR activities inemployee handbookand orientationprograms

Defining performancebased not only onoutcomes andresults but also onsocial objectives

Include service tocommunity andparticipation andinvolvement andcontribution to socialinitiatives as part ofthe performanceappraisal and link itto rewards such asbonuses

Follow up withemployees on CSRand include CSRaction plans andmotivate employeesto engage more inCSR during regularperformanceevaluation meetings

Allow employees tocontribute toformulating CSRperformanceindicators andinvolve them in CSRprojects

Rewarding employeesfor behaviorsconsistent with CSRvalues to motivatethem andemphasize theimportance of CSRto the organization

Preparing tangible andintangible rewardsfor employees’participation in CSR

Preparing incentivesthat promote socialgoals

Communicating suchschemes withexternalstakeholders toenhance thecompany’sreputation andmarketattractiveness

Training and raisingemployees’awareness to CSR,for example,sustainabilitypractices such asgreen practices andrecycling inside aswell as outside theorganization

Holding regularseminars andworkshops on CSRand linking someincentives andrewards toemployees’participation in them

Training programs andskills developmentcould be for bothlower and higheremployee levels

Invite NGOrepresentatives toshare experiencewith employees inrelation to commonCSR projects

CSR, corporate social responsibility; HRM, human resource management; NGO, nongovernment organization....................................................................................................................................................................



because it demonstrates that investments in theseinternal resources that are valuable, scarce, non-substitutable, and inimitable provide positive returnson investment and outcome benefits that are appro-priable (Barney 1991). HRM as an internal manage-rial function can be considered as a source ofcompetitive advantage using the same logic (Wrightet al. 2001). We extend this further in our paper bymaking the argument that HRM and through thefour roles outlined has an important strategic role toplay in creating the supporting conditions underwhich an organization’s CSR mission, objectives,and implementation can be considered a valuableresource and the successful integration of HRM andCSR can lead to long-term sustainable advantageand positive outcome values that are appropriable.

Interestingly, an RBV lens can thus help us gaugethe sustainable, social, and ethical benefits andresources that the role of HRM in CSR brings tothe organization (Litz 1996; De La CruzDeniz-Deniz & Saa-Perez 2003). Improvement inCSR and accumulating lessons from experiencescan lead to competitive advantages in the sense of afirm implementing and reaping the benefits of avalue creating strategy not currently implementedby competitors (Barney 2001). While the externaldimensions for CSR are easy to imitate and repli-cate, we argue that it is the internal dynamicsdeployed through an effective integration withHRM that can create outcomes that are difficult toduplicate and imitate and hence provide sources ofsustainable competitive advantage. We take thisimportant point to suggest that the effective align-ment of HRM and CSR can result in sustainableoutcome values and benefits for the organizationand that it is the internal aspects/dynamics of thisintegration that seem most important.

By way of an example, the CSR actions andculture of change as translated by HRM strengthenthe bond between employees and their organiza-tions, especially on the normative and affectivelevels. Commitment to the organization and to acommon social identity that we argue HRM canpotentially champion and foster can certainly beamplified through an internally institutionalizedCSR agenda. In their study, Aguilera et al. (2007)demonstrate how the social responsibility actionsthat organizations enact affect employees’ percep-

tion about the justice and fairness of the organiza-tion. In return, this can impact employees’attitudes, behaviors, satisfaction, and productivity.We argue here that HRM’s role in CSR couldpotentially be of high significance on the individuallevel of CSR as explained by Aguilera et al. (2007).Socially responsible HRM practices and the inte-gration of CSR principles with HRM practices andsystems (as explained earlier) respond to employees’CSR expectations and could thus potentially con-tribute to building positive employee behaviors andattitude. As a result, this might affect organization-ally relevant outcomes such as employee commit-ment, job performance, and citizenship behavior.HRM promotes and communicates CSR actionsand principles with employees so to increase theirCSR awareness and engagement and thus theirperceptions about how their organization isbeing socially responsible both internally andexternally.

Similarly, Brammer et al. (2007) and Glavas &Piderit (2009) report that employees are moreengaged and committed and develop higher qualityrelationships and are more creatively involved whenthey perceive their company to be socially respon-sible. Rego et al. (2010) also found that employees’perceptions in relation to the CSR orientations oftheir organizations predict their affective commit-ment. We argue that there is an important role forHRM in CSR and employee commitment to theorganization and that both HRM and CSR con-verge around these common goals and outcomeswithin a co-creation framework. We further arguethat it is precisely through these dynamics that CSRevolves into a fully fledged and differentiated capa-bility and sustainable competitive resource for theorganization.

Other important outcomes resulting from betterintegration of HRM and CSR are those relating toheightened ethical sensitivity and awareness andincreased trust and loyalty to the organization.Ethics has already been recognized as a source ofsustainable competitive advantage (Litz 1996) andthe affinities between ethics and CSR are well docu-mented in the literature (Ehnert & Harry 2011;Greenwood 2013). Nurturing both ethical and CSRawareness provides reassurance to customers, share-holders, and investors (Brammer et al. 2012) and



helps in sustaining trustworthy relations with marketand nonmarket stakeholders. Positive stakeholderrelationships reduce in turn transaction costs, buildreputational capital, and enhance long-term sustain-able and competitive advantage (Fombrun et al.2000). There is thus a range of worthwhile outcomesthat could result from a more effective integration ofHRM and CSR and provide organizations with sus-tainable advantages over time, ranging from increas-ing employee commitment and motivation (Collier &Esteban 2007) to bolstering trust and loyalty on thepart of internal and external stakeholders (Litz1996). These worthwhile outcomes are valuable forHRM, CSR, and the business as a whole and arelikely to help the organization gain visibility in theeyes of internal and external stakeholders and alsoenhance specificity by helping to capture or internal-ize the benefits of CSR programs as suggested byBurke & Logsdon (1996).

Concluding remarks

The CSR-HRM co-creation model builds on the syn-ergies between CSR and HRM and is mainly con-cerned with presenting a rationale and structuredapproach for their cross-fertilization and integration.This is consistent, as we argue, with the notion ofco-creation, which expands opportunities for valuecreation by providing room for the inclusion ofvarious stakeholders in the value creation process.We demonstrate in this paper that co-creation hasrelevance in the specific context of CSR and HRMintegration. By leveraging better interactions andengagement between those two traditionally com-partmentalized functions and providing transparentaccess to information, co-creation can help produce arange of substantive outcomes that have relevanceand importance to CSR, HRM, and the business as awhole (including a variety of internal and externalstakeholders).

The CSR-HRM co-creation model constitutes arobust, original contribution that highlights thelinks between CSR and HRM and emphasizes thesustainable outcome benefits that can result fromtheir effective integration. HRM is argued to have astrategic role in bolstering the CSR agenda andaligning it with the strategic vision and aspiration

of the organization. The role, voice, and expertiseof HRM are important in both setting the tone andfacilitating the implementation of the CSR agenda.The real challenge for many organizations goingforward is to further involve HRM in CSR andaccount systematically for the outcome benefitsproduced. HRM, in other words, has a real oppor-tunity to play a role in embedding a sociallyresponsible approach in the organization, helpingto operationalize CSR into policies, processes, andpractices and translate it into concrete and mutu-ally reinforcing outcomes.

Our paper contributes to both HRM and CSRliteratures. In relation to the HRM literature, thepaper provides many examples of how the strategicHRM partnering model can be operationalized andput into practice, taking the example and applicationof CSR as a case in point. In this respect, while theUlrich (1997) model has been posited as a successfulinnovation, there have been very few examples ofhow it can be applied in practice. In relation to theCSR literature, our paper draws attention to theinternal dimensions and the micro-foundations ofCSR that have hitherto not been accorded sufficientattention in the literature. Our paper makes a strongcase that a primary or exclusive focus on the externalmanifestations of CSR is not sufficient and that theexternal orientation needs to be anchored in a stronginternal foundation. It is precisely this foundationand its internal dynamics that can turn CSR into acompetitive capability and a sustainable source ofcompetitive advantage.

This latter idea that CSR can be a strategic capa-bility, when properly embedded in the firm and sup-ported by a strong HRM function, constitutes yetanother important contribution of this paper. Whilethe external manifestations of CSR are easy toimitate by competitors, it is the tacit and causallyambiguous internal dynamics and patterns of team-work and coordination in strategizing and enactingCSR that are likely to be the differentiating elementsand provide a source of sustainable competitiveinnovation as suggested through an RBV perspec-tive. HRM has a very important role in bolsteringthe internal foundations of CSR and facilitating thespecific internal CSR dynamics as illustrated throughthe varied examples provided in Tables 3 and 4. Touse RBV reasoning and a co-creation approach, the



specific configuration and alignment of CSR-HRMsystems can produce unique firm capability andtranslate into a range of worthwhile outcomes for theorganization over the long term.

From a managerial perspective, the proposedCSR-HRM co-creation model helps to capture andhighlight the potential interfaces between HRM andCSR and identifies the specific roles and domainswithin which HRM can contribute to the CSRagenda. The CSR-HRM co-creation model presentsa practical account of CSR-HRM connections andproposes guidelines for organizations seeking todevelop CSR into a strategic capability. In essence,the paper provides HRM managers with a roadmapto bolster their engagement in CSR and to guidetheir steps in relation to CSR strategy developmentand implementation. It also provides CSR managerswith a range of insights into the dimensions ofsupport they need to leverage and strengthen theinternal foundations of their CSR strategies andengagement. The paper has further documented arange of positive outcomes for both CSR and HRMpractitioners that can accrue from a more systematicleveraging of their joint efforts within a co-creationframework.

In terms of future research directions, there is aneed for more concrete measures of CSR-HRMoutcome values, particularly noting that causalityin this context is potentially complex and needs tobe systematically considered. There is also a need todefine more clearly the different ways in whichHRM can be involved in CSR. HRM and CSRfunctions certainly coalesce around other roles anddimensions than those suggested by Ulrich (1997),which need to be further delineated and explored.The implications of our model from a co-creationperspective can also be further considered anddeveloped. This paper suggests that nurturing theinvolvement of HRM in CSR can build sustainableadvantage in the long term, which is consistent witha co-creation orientation. An examination of thedynamics of this process and the sustainable advan-tages of responsible social actions are also worthyof more scrutiny and further research. The poten-tial affinities between HRM and CSR have beenpresented in this paper, but future research couldtry to extend, refine, or test the model and itsassumptions in various contexts.

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Dima R. Jamali (PhD, University of Kent at Canter-bury) is a professor of Management at the AmericanUniversity of Beirut and holds the Kamal ShairEndowed Chair in Responsible Leadership. Herresearch interests focus on responsible leadershipand corporate social responsibility in developing



countries in general and the Middle East in particu-lar. Her articles have appeared in journals such asBritish Journal of Management, Business EthicsQuarterly, and Journal of Business Ethics amongothers. Her recent book on CSR in the Middle Easthas been published by Palgrave in 2012.

Ali M. El Dirani (PhD, University of Southampton)is a lecturer in Management at the American Univer-sity of Science and Technology, Beirut, Lebanon.His research focuses on corporate social responsibil-ity (CSR) and human resource management (HRM),and his doctoral thesis explored the role of HRM inCSR. He has publications in this field, includingbook chapters on CSR, HRM, workplace integrity,and diversity. He has presented many peer-reviewedconference papers and he is the winner of the best

paper award in the Irish Academy of Management(IAM) annual conference 2011 in Dublin, Ireland.

Ian A. Harwood (PhD) is an associate professor inManagement. With an industrial background inmanaging strategic change programs and processimprovement projects, his doctoral thesis exploredthe role of risk in post-merger and acquisition inte-gration. Ian’s continuing research interests arebroadly in project management, general manage-ment, and qualitative research methods (especiallygrounded theory). He has published in the BritishJournal of Management, Journal of BusinessEthics, Journal of Risk Research, European Manage-ment Journal, International Journal of Project Man-agement, and International Small Business Journalamong others.



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