ASSIGNMENT ABOUT HRM POLICIES

HOW DO HRM POLICIES AND PRACTICES PROMOTE
RESPONSIBLE BUSINESS PRACTICES
Introduction
The concept of sustainability and responsible business practice may be considered
to be e a Critical Success Factor (CSF) in a business organisational context. Since
business is primarily about dealing with people, the focus of business operation
should be on the human being. Therefore, the study of Human Resource
Management (HRM) assumes its importance in today's complex business world
where there is a constant drive to make a balance between economic as well as
social and environmental factors from operational viewpoint of the business. The
given essay deals with the fact of whether HRM policies and practice promote the
responsible business practice.
At the very beginning of the essay, the researcher provides a brief introduction to the
theme of the paper. In the subsequent part of the essay, the discussion on the given
topic has been undertaken and the concept of organisational ethics, Corporate
Social Responsibility (CSR) and human rights etc have been put forward. Thereafter,
the researcher attempts to interlink those concepts to conclude whether sustainable
HRM practice should be undertaken by the management to become a good
corporate citizen and thereby achieve long-term sustainability for the business in the
society.
Discussion
Organisational Ethics
The concept of organisation ethics is widely discussed in the realm of the study of
HRM. It is needless to mention that a business should be ethically sound and the
management and leadership should consistently focus on ensuring an ethical
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framework within the work culture of the business. In doing so, the organisation
should abide by not only the social norms, regulatory guidelines and environmental
directives but also emphasize human resource in terms of expectation, motivation
and holistic development. It has often been observed that ethically strong business
garners social recognition and thereby achieve a competitive advantage over others
in the long run. On the contrary, a financially efficient business may also lose its
brand value if there has been a breach of the social contract, moral obligation or
non-compliance by the business (Aust, Matthews and Muller-Camen, 2019). In short,
a firm should focus on balanced stakeholder management wherein the internal
stakeholders (such as customers, management etc.) should be nourished and
maintained for their development and future growth; on the other hand, the interest
of external stakeholders (such as customers, suppliers, regulators etc.) should also
be maintained with integrity and honesty (Wikhamn, 2019). The entire approach
forms the basis of organisational ethics.
Corporate Social Responsibility (CSR)
The concept of CSR is generally defined to the degree of responsibility of a business
not only towards economic consequence but also for social implication and
environmental consideration. The concept of social responsibility denotes the fact
that a business should not only put effort towards earning profit for its shareholders
but also prioritise its social aspect as well as the environmental issues so that the
operation becomes sustainable in the long run for the society as a whole. The term
may be understood by “corporate citizenship” or “sustainability” as well (What is a
corporate social responsibility – and does it work? 2020). In this context, it will be
wise to note that in earlier days, the primary aim of the business was considered to
be “profit maximization” profit that gradually got converted to “wealth maximisation”
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considering the non-financial impact such as quality of human resource as well.
However, in today's complex, technological advanced and globally rich business
scenario, it becomes critical for the management to add value to the business and
society and therefore the concept of “value maximization” has evolved. The concept
suggests that a company should put focus towards 3 P’s and the same is also known
as the Triple Bottom Line (TBL) approach (Hussain, Rigoni and Orij, 2018). This is
noted which are as below
Profit: Profit should be utmost necessary in conducting future operations. A cash-rich
company is in a much better position to satisfy the need of workers, suppliers,
customers and government by paying wages, dues, quality products and services
and taxes respectively. Therefore, the organisation should emphasize on the bottom
line of the business as to how to optimise the same by way of either enhancing top-
line or restructuring cost.
People: Since business comprises of people, the focus of the management should
also be on its shareholders, customers, suppliers employees etc. It has often been
observed that financially strong business organisation may lose its brand value and
reputation in the labour market due to its stringent working hour policy or lower
compensation level and therefore management should make a balance between
economic as well as the social aspect of the business concerning people.
Planet: The environmental factor is another critical consideration for the business
and the management should aim to adhere to the regulatory guidelines for
environmental protection. For example, a financially strong and people-centric
company may not sustain in the long run if there have been several allegations
against the business for its operation affecting the environment. The case of British
Petroleum’s “deepwater horizon” scandal may be cited here to denote the
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