Denmark made international news recently when their parliament passed a law  requiring all 1100 of Denmark’s largest organizations to publish their CSR practices, or their socially responsible investment policies by 2010.  What’s more is that they want all the gory details:  the strategies used, the programs implemented, and any results achieved.  Although it is voluntary for now, most companies are stepping up and beginning their reporting this year.  This is good news for us conscious consumers wanting consistent criteria to help us better determine which brands should earn our hard earned dollars (or krones); it’s bad news for anyone inside those organizations who was surprised by this law and is unprepared to comply.

This law is certainly not the first of its kind, and it certainly won’t be the last.  And like it or not, it’s only a matter of time before similar legislation shows up in the United States. 

In the meantime, what is our role as HR practitioners as it relates to CSR?  We could certainly take the wait and see approach – treat it as a compliance issue and deal with it when it does show up.  But is that really the best way for HR to add value to this issue?

CSR is the single greatest opportunity we have for initiating positive organizational change. 

So my question to you, my fellow HR practitioners is:  Opportunity is knocking.  Are you prepared to answer?

First things first:  Know what it is

I was catching up with a business associate of mine the other day, excitedly talking about the CSR leadership training I've been piloting with Will Marre and the REALeadership Alliance.  “Yes,” he responds “That is a hot topic around here with all these call centers we have.”  Wait… Huh? 

So for the record, when I talk about CSR I am speaking of Corporate Social Responsibility, not customer service representative. 

CSR has been defined and dissected a hundred different ways, but my favorite is still from Tim Sanders who says in Saving the World at Work that a “good (socially responsible) company is one whose mission is to improve the lives of everyone in its footprint:  employees, suppliers, customers, supporting communities, and the planet.” 

Typically, these efforts are measured using a triple bottom line approach that looks at traditional profits, but also at your people (Human Capital) and planet (environmental impact) results.  Our European counterparts have been working towards this for quite a while now.  Of course, when your entire country is smaller than the State of Texas, I imagine you are a little more sensitive to how you use and replenish your resources.  But we've gotten the memo (disproportionate energy consumption, questionable business ethics, disparity in pay…) and we can no longer plead ignorance and disregard our people and planet practices.  I’m not exaggerating when I say the future of our World depends on it.  So those are the bare bones of CSR.

Next on the agenda:  Know where you fit in

Research continually shows that the number one item that consumers look at to judge the CSR of a brand is how that company treats its employees.  Numero Uno.  Top of the lists.  And this isn't data coming from HR-sponsored surveys.  This is from PR companies looking how to best help their clients manage their brand reputation, and from companies that track trends in consumer behavior.  Need I say more about the criticality of HR’s involvement?

All too often, people in the people business dismiss CSR as being “strictly environmental issues” or “just the latest PR stunt”, or think “What do I have to do with supply chain management?”  And my Training & Development peers are just as guilty of this apathetic dismissal.

For example, responsible leadership incorporates a whole new skill set, which provides a great opportunity to revamp leadership curriculum content.  And yet any article I've read to date on training and CSR has been limited to discussions about how to hold greener meetings, or how e-learning produces a lower carbon footprint than traditional classroom training.  These are certainly not the serious types of conversations we should be having when faced with the potential organizational transformation of this magnitude.  Now if I'm wrong, please redirect me.  I would be ecstatic to post comments that indicate otherwise.

The truth is that there is hardly any issue we touch that wouldn't in some way be improved by a comprehensive CSR strategy. 

1. Are you dealing with productivity, voluntary turnover, or employee engagement issues?  Think about how the sense of participating in purpose-driven and meaningful work would improve these areas.
2. Are you spending time figuring out how to best communicate another reduction in benefits, freeze on hiring and pay increases, or elimination of recognition and incentive programs?  Think about how companies with cultures of innovation and sustainability have proven to be more profitable.  Think about the surveys that show that people will forgo a bit of compensation to work for a company that is making a difference.
3. Are you struggling with employee relations compliance issues that highlight the need for a renewed focus on ethics?  Think about how the new leadership and business model supported by CSR recreates a culture where better choices are made.
4. Are you dealing with increased health care costs?  Think about how happy employees = healthier employees = lower health care costs.

If you have pined for that elusive “seat at the table” or are trying to forge a “strategic business partnership” this is your opportunity to take a top of mind business issue and add value in a whole new way.  I promise you that if you can drive efforts to transform your culture to one of sustainable innovation, one where employees are engaged around a common mission that separates your organization from the competition, you won’t ever have to worry about your seat at the table again.

And what if your sphere of influence isn't big enough to transform a culture?  Then look for things you can do to transform a team, another person, yourself.  Learn about what other companies are doing; get familiar with the subject matter and how it affects organizations.  Just make sure that you stay aware of what is going on around you so that when the opportunity to participate on a larger scale presents itself, you are ready to raise your hand.

Open your mind to the possibilities

It really is just a matter of time before organizations will be expected to report on their CSR efforts.  But it's your call as to whether you want to join in shaping the efforts at your organization now…or wait and add it to your “to do” list of compliance reports and policy updates you maintain.  It’s such a huge opportunity; I hope you open the door.

Note:  I will be presenting “The Leadership Role of HR in CSR” at the SHRM annual conference again this June.  Come by for a listen:  get some strategic management credits and more details about the role you can play.